ANNUAL REPORT
20
22
22
TABLE OF
CONTENTS
CHAPTER 01
INTRODUCTION
............................................................. 

........................................................................................ 10

........................................... 

......................................................................................... 

............................................... 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

.................................................................................................... 

................................................................... 
CHAPTER 02
STRATEGY
 ......................................................................

.......................................................................... 
DEME’s two-dimensional strategy for

.................................................................... 

...............................................

..........................................................................................................
CHAPTER 03
SEGMENTS
................................................... 

....................................................................................... 

........................................................................................ 

............................................................................................ 

................................................................................................. 
All definitions for alternative performance measures (APMs)
or acronyms used in this report are available in the Glossary
(see the Appendix chapter).
CHAPTER 06
FINANCIAL REPORT
CHAPTER 07
APPENDIX
....................................................................................................... 

.......................................................................................... 

................................................................................... 
CHAPTER 04
CORPORATE GOVERNANCE
AND RISK
 .......................................................................... 

............................................................................ 

............................................................................................... 

.......................................................................... 
Risk management & control processes
................................... 

................................................................................... 

........................................... 

.................................... 
CHAPTER 05
SUSTAINABILITY & QHSE
.............................................................................................. 

........................................ 

..............................................................................
Collaboration with stakeholders
................................................. 

........................................................................................... 

...................................................... 

..................................
INTRODUCTION
01
CHAPTER
Facing new challenges and achieving
our goals are only possible in a safe
and healthy working environment.
This is my commitment to all
our employees worldwide.
NATALIA DE SOUZA SECCO
|

6
Letter
of the CEO
& Chairman
DEME has been shaping the world

so. We are at the heart of the energy

specialised equipment to construct
offshore wind farms worldwide, and
at the same time, we are establishing
ourselves in the green hydrogen
market. In the decades to come we will
tackle some of the most important
issues our planet faces today: rising
sea levels, a growing population, a
reduction of emissions, polluted rivers
and soils, and the scarcity of mineral
resources. Our mission to create a more
sustainable planet underlies everything
we do, and we are committed to the
UN Sustainable Development Goals.
In line with this, we have identified
eight key sustainability themes where
we can really make a difference.
COP27
We were very proud to send a high
level delegation to The United Nations
climate convention in Sharm el-Sheikh
(Egypt). DEME has been a pioneer in the
offshore wind industry for more than

and clear at the UN Climate Change
Conference that offshore wind is now
recognised as a major contributor to
solving climate change, alongside other
renewables such as green hydrogen.

‘rollercoaster’ year. It has been defined
by many elements we can’t control
such as geopolitical tensions, rapidly
rising inflation, high steel prices and of
course, Covid was still with us, although
it did not have such a significant
influence on our financials this year.
The global energy market, however,
was dramatically impacted by the
conflict between Russia and Ukraine
which in turn, is leading to increasing
demand for renewable energy and
a further push to achieve the clean
energy goals as soon as possible.
Record high orderbook and
solid turnover growth

have still achieved a record high

solid growth in orders is largely being
driven by the need to address climate
change and the energy transition,
driving healthy demand across all
of our segments and leading to a

The growth in turnover was fueled
by all segments. Turnover increased

This is an all-time high and showing

to pre-pandemic levels. The recovery
was mainly fueled by the Offshore
Energy and Environmental segments.




significant increase compared to the

Undoubtedly, we are living in a transformative century
– the drive for sustainability, the rise in digitalisation
and the need to combat global warming, are just some
of the major factors impacting our business.
 LETTER OF THE CEO & CHAIRMAN
DEME ANNUAL REPORT 2022 7




depreciations and impairments


DEME’s financial position remains
healthy with a net debt position of

while the company continues to make
substantial capital investments

fleet in support of future growth.
Segment highlights
We would like to briefly outline
some of the highlights and key
achievements of our core segments:
Offshore Energy, Dredging & Infra,
Environmental and Concessions.
Offshore Energy
DEME Offshore had a remarkable year.

brought a game-changing installation
concept to the offshore energy market.

history, the vessel is being prepared to
enter the US market. Not only are we
about to construct the first wind farms
in the US, our activities elsewhere
in the world are also intensifying as
we secured contracts representing

Taiwan. Meanwhile, we successfully
installed XXL monopile foundations
at the Saint-Nazaire offshore wind
farm ahead of the planned schedule
and despite the fact they were drilled
directly into rock. In a demonstration
of our cable laying prowess, we were
awarded an EPCI contract for the
inter-array cables at Dogger Bank C.
Left: Luc Bertrand, Chairman
Right: Luc Vandenbulcke, CEO.
8
 LETTER OF THE CEO & CHAIRMAN
Dredging & Infra
The Dredging team continued its

largest dredging and land reclamation
project in our history, alongside
longstanding maintenance dredging
contracts in Europe along the Elbe
and Scheldt rivers. We also performed
a maintenance project in South
Korea for the first time in our history.

the successful completion of the

Szczecin fairway in Poland. Our Infra
team also had a busy year as the iconic

up, and work on the Blankenburg
Connection, New Lock Terneuzen and
Oosterweel Link continued apace.
Environmental
Our Environmental team has had
a very busy year across the board,
with large-scale projects such as



UK. DEME Environmental is setting
new standards in the industry,
with a focus on evidence-based


pollution cleaning method and recently
boosted our handling capacity by
making additional investments
in our soil recycling centres.
Concessions
DEME Concessions was honoured that
King Philippe and Queen Mathilde
of Belgium attended the official
opening of the Port of Duqm and
visited HYPORT®, which is our flagship
production site for green hydrogen.
Many of the segment’s projects
support the energy transition and the
move to a more sustainable planet. In
a remarkable accomplishment, Thistle
Wind Partners, a consortium including

worth of option areas in the highly
competitive ScotWind seabed leasing
process, which includes both bottom-

major focus is helping to tackle the
scarcity of our planet’s resources and
GSR is continuing its conscientious
research into the possibility of
collecting metal-rich, polymetallic
nodules from the deep ocean floor.
Well positioned to continue to
deliver thanks to our people
We are certainly pleased with the
progress we have made and the

us well to deliver on our strategic
ambitions going forward, but we
would like to stress that these
results are only possible thanks to
DEME’s amazingly smart people – the
renowned ‘One DEME, One Team’.
DEME has a long track record of

including the most challenging

projects in the world. The ability of
our employees to keep performing
and find innovative solutions is
simply astonishing. These projects
require a truly committed, highly

to continue to deliver what was
promised - project after project.

that support DEME’s leadership
position, and these are key for the
realisation of our growth ambitions.
In addition, DEME’s culture really
makes the difference. The famous
pioneering spirit leads to innovative
solutions and technical leadership,
and this is combined with an intense
focus on safety, sustainability and
working together as one team.
We took an important step
when DEME embarked on
the next chapter in its long
history and became
a listed company.
LUC VANDENBULCKE
|

DEME ANNUAL REPORT 2022 9
Many of the segment’s
projects support the energy
transition and the move to a
more sustainable planet.
LUC BERTRAND
|

Future-proof fleet
Hand in hand with the ability of
our people, is the capability of our
fleet. We have set out to create the
most modern, sustainable fleet in
the industry and have welcomed
incredible vessels recently. They
are unique in the industry today.
In the Offshore Energy segment, our
revolutionary offshore installation
vessel ‘Orion’ is the first floating
monohulled vessel able to perform
XXL monopile foundation installation

after delivery it had successfully
installed giant monopiles, topsides,
a huge jacket and carried out a
big decommissioning project.
Our pioneering mega cutter suction
dredger ‘Spartacus’ has also impressed
the dredging industry. 'Spartacus' has
more cutting power than any other CSD
in the world and has already proven
its unrivalled capabilities in terms
of production rates, pumping power
and ability to cut hard material. This
has been coupled with a substantial
reduction in fuel consumption per
unit of work. ‘Spartacus’ is certainly
a wonderful flagship for DEME’s
future-proof, sustainable fleet.
To make sure we are keeping pace
with the rapid growth in the offshore
wind market, we have invested in
a second huge cable layer – ‘Viking
Neptun’ – which recently joined our
renowned 'Living Stone'. We are also
investing in a giant fallpipe vessel,
while our famous sister vessels – ‘Sea
Challenger’ and ‘Sea Installer’ – are
both being upgraded so they can
handle the XXL turbines of the future.
Stock listing and dividend
We took an important step in


our long history and became a listed


have successfully brought DEME
to the stock market, particularly
that we accomplished this ambition
as planned even though we did
so in a somewhat volatile and
uncertain operating environment.
Our decision to bring DEME and
CFE to become separately listed
companies has been warmly
welcomed by our stakeholders.
We can now ‘tell our own story’ and
drive our strategy and ambitions
forward. Our strategy to play a key role
in the energy transition and to create
a more sustainable world is clear to
our stakeholders. It is also rewarding
to know we now have the agility to
swiftly seize future opportunities

to play a role in creating a better
world for generations to come.
We remain convinced that our
stocklisting is an incredible
opportunity for our company, clients,
investors, shareholders and our
worldwide team of employees.

confident about our future potential,
the board decided to retain most
of the financial resources in the
company for future investments


LUC BERTRAND
Chairman DEME Group
LUC VANDENBULCKE
CEO DEME Group

Company profile

marine infrastructure, solutions for the offshore energy market,
and environmental works. We can build on more than 145 years of know-
how and experience and have fostered a pioneering approach throughout
our history, being a front runner in innovation and new technologies.
 COMPANY PROFILE

ORDERBOOKTURNOVER PER CONTINENT
Europe



75%
12%
8%
5%
55%
5%
13%
27%
DEME ANNUAL REPORT 2022 
While DEME’s roots are in Belgium, the
company has built up a strong presence
in all of the world’s seas and continents.
Our vision is to work towards a
sustainable future by offering solutions
for global challenges: rising sea levels,
a growing population, the reduction
of emissions, polluted rivers and soils,
and the scarcity of mineral resources.

professionals across the globe, and we
have a modern, versatile fleet of more

DEME’s activities originated with the
core dredging business, our portfolio
has diversified substantially over the
past decades. We have established
four segments reflecting our areas of

Infra, Environmental and Concessions.
Our multidisciplinary capabilities and
ability to benefit from synergies across
these key segments, have enabled us to
become a global sustainable solutions

An industry pioneer
DEME is a pioneer, and we believe in
turning challenges into opportunities.
That’s why we entered the offshore


horizons has led us into sustainable
deep-sea harvesting and the green
hydrogen sector more recently.
Expanding our
geographic presence
Our ambition to play a significant
role in the energy transition has

presence outside of Europe. We are
now preparing to construct offshore

We continuously strive for operational

our environmental performance
and productivity rates, which is
demonstrated by our multi-year fleet
investment programme. New vessels
such as ‘Orion’ and ‘Spartacus’ have
brought an entirely new installation
concept to the offshore wind market
and unrivalled cutting power to the


specialised
vessels
Active in
more than


highly skilled
professionals
12 INTRODUCTION FINANCIAL & NON-FINANCIAL KEY FIGURESCHAPTER 01
ORDERBOOK
E B I T &
EBIT MARGIN
TURNOVER
EBITDA &
EBITDA MARGIN
20192018
20192018
20192018
2,622
2,646
437
459
2021 2022
2021 2022
2021 2022 2020
2020
2020
2,196
370
2,511
2,655
469
474
2020
4,500
141
196
2021
5,905
64
2022
6,190
2019
3,750
2018
4,010
143
155
(in million euro)
(in million euro)
(in million euro)
(in million euro)
Financial & non-financial
key figures
17.3%
16.7%
16.8%
18.7%
17.9%
Dashboard financial & non-financial KPIs
7.4%
5.4%
2.9%
5.7%
5.8%


DEME ANNUAL REPORT 2022 
WORLDWIDE LOST
TIME INJURY
FREQUENCY RATE
20192018 2021 20222020
0.24
0.21
0.19 0.19
0.23
CAPITAL
EXPENDITURE
20192018
435
441
2021 20222020
202
282
484
(in million euro)
CONTRIBUTED
CAPACITY
2020
2,798
20222021
1,867
2,499
(MW Installed foundations)
NET
RESULT
20192018 2021 20222020
125
156
50
115
113
(in million euro)

6.0%
4.8%
2.3%
4.6%
4.2%
14
INTRODUCTION FINANCIAL & NON-FINANCIAL KEY FIGURESCHAPTER 01
DEME Group key gures

2022 2021 2020
FINANCIAL KEY FIGURES (in million euro)
Turnover 2,654.7 2,510.6 2,195.8
EBITDA 473.9 469.3 369.5
Depreciation & impairment 318.7 326.0 305.2
EBIT 155.2 143.3 64.3
Net result from joint ventures and associates 15.8 10.5 22.4
Net result share of the Group 112.7 114.6 50.4
Orderbook 6,190.0 5,905.2 4,500.1
Shareholders' equity (excl. minority interests) 1,753.9 1,579.5 1,476.5
Net financial debt -520.5 -392.7 -489.0
Operating working capital -506.2 -511.1 -552.3
Balance sheet total 4,509.8 4,049.6 3,919.9
Investments 483.9 282.0 201.6
Earnings per share (in euro)
1
4.45 4.53 
Dividend for the year per share (in euro) 1.5  
Total cash 522.3 528.6 621.9
NON-FINANCIAL KEY FIGURES
Average # personnel (based on FTE) 5,153 4,880 4,976
Ratio male/female 85/15 85/15 85/15
Number of nationalities 79 80 80
Worldwide Lost Time Injury Frequency Rate
(WW LTIFR - 'Safety thermometer')
0.23 0.19 0.19
Low carbon fuels (% low carbon fuels versus
total consumed fuels (energy based))
6.0% N/A  N/A 
GHG emissions worldwide in kt COe (Scope 1&2) 653 833 660
Contributed capacity (MW Installed foundations) 2,798 1,867 2,499
MW Installed Wind Turbines 440 2,378 1,477
MW Beneficial Ownership 144 144 144
Number of approved innovation initiatives 12 14 18
Number of green initiatives 127 125 128
Fleet utilisation rate of Trailing Suction Hopper Dredgers (in weeks) 38.3 42.2 37.5
Fleet utilisation rate of Cutter Suction Dredgers (in weeks) 29.3 25.3 10.5
Fleet utilisation rate rate of Offshore equipment (in weeks) 33.6 42.1 42.0
EU Taxonomy - Turnover - Eligible activities
3
29% 28% N/A
EU Taxonomy - Turnover - Aligned activities
3
26% 24% N/A
EU Taxonomy - CapEx - Eligible activities
3
52% 32% N/A
EU Taxonomy - CapEx - Aligned activities
3
52% 32% N/A



Financial & non-financial key figures
DEME ANNUAL REPORT 2022 


  
Turnover 2,654.7 2,510.6 2,195.8
Offshore Energy 957.8 916.4 962.0
Dredging & Infra 1,524.3 1,478.3 1,151.6
Environmental 206.3 166.2 140.0
Concessions 2.2 1.5 2.1
Reconciliation -35.9 -51.7 -59.9
EBITDA 473.9 469.3 369.5
Offshore Energy 221.9 170.9 145.5
Dredging & Infra 254.9 305.8 181.3
Environmental 25.0 16.8 16.4
Concessions -12.7 -12.5 38.3
Reconciliation -15.2 -11.7 -12.0
EBIT 155.2 143.3 64.3
Offshore Energy 117.1 74.6 34.4
Dredging & Infra 44.9 74.0 -12.1
Environmental 16.5 8.8 6.8
Concessions -12.7 -12.6 38.3
Reconciliation -10.6 -1.6 -3.1
Net result from joint ventures and associates 15.8 10.5 22.4
Offshore Energy 0.0 0.0 0.0
Dredging & Infra 0.1 0.0 -0.2
Environmental 0.5 0.6 0.3
Concessions 9.3 11.1 21.3
Reconciliation 5.9 -1.1 1.1
Orderbook 6,190.0 5,905.2 4,500.1
Offshore Energy 3,260.9 2,816.6 1,133.5
Dredging & Infra 2,615.7 2,833.3 3,176.5
Environmental 313.4 255.3 190.1
Concessions - - -

DEME CONCESSIONS
AWARDED 2 GW OF
SCOTWIND’S OPTION AREAS
Thistle Wind Partners, a consortium


ScotWind’s seabed leasing process.
The consortium is allocated two

and floating foundations.

TRANSFORMED
In the largest rehabilitation
project in the Port of

the transformation
of Fort Sint-Filips is
successfully completed
by DEME Environmental
and its partners.
‘ORION’ BRINGS
GROUNDBREAKING
INSTALLATION
CONCEPT TO THE
OFFSHORE ENERGY MARKET
Revolutionary offshore installation vessel
‘Orion’ enters the fleet and is the first
floating monohulled vessel able to perform
XXL monopile foundation installation
operations in the offshore wind sector.
Highlights 2022
1
3
2
 HIGHLIGHTS 2022
 ANNUAL REPORT 2022 
PORT EXPANSION
AND COASTAL DEFENCE
PROJECT IN ITALY

coastal defence works in the Port of Livorno
is awarded to a joint venture, including
DEME’s Italian subsidiary. This project

 of new port areas.
DRILLING AN ENTIRE
WIND FARM INTO ROCK

TECHNOLOGY

an impressive feat in France
when it drills the monopiles into
hard rock using industry-first
technology at Saint-Nazaire.
P FA S C L E A N I N G
CAPACITY BOOSTED
AT D E M E
RECYCLING CENTRES
DEME has the capability to process

hybrid soil washing process we jointly
developed with partner companies.

centres in Belgium will enable us to

5
4
6
LISTING ON
EURONEXT BRUSSELS
In June, DEME takes a major step in
its history when it becomes a listed

This move gives the Group direct
visibility and enables us to drive our
strategy and ambitions forward.
MEGA CUTTER SUCTION
DREDGER ‘SPARTACUS’
PROVES ITS CUTTING POWER

new mega cutter suction dredger ‘Spartacus’

this project would have had to be performed
using drilling and blasting techniques.

INAUGURATED AT

The public-private-partnership SEMOP
Port-La Nouvelle, including DEME Concessions,

The consortium’s ambition is to develop
Port-La Nouvelle as a sustainable green
port, including establishing a strategic
hub for offshore and floating wind.
7
9
8
  HIGHLIGHTS 2022
SOLID PROGRESS AT THE
FEHMARNBELT TUNNEL
DEME is proud to be part of the team
constructing the Fehmarnbelt Tunnel,
which is set to be the longest immersed
road and rail tunnel in the world. Known
as the ‘infrastructure project of the
century’, work is solidly progressing.
CONTRACTS
REPRESENTING 1 GW
FOR HAI LONG WIND
FARMS IN TAIWAN
DEME secures contracts representing
1 GW for the Hai Long wind farms in
Taiwan. This milestone deal between
CSBC-DEME Wind Engineering and
Hai Long Offshore Wind covers the
transport and installation of the
foundations, turbines and substation.
SUSTAINABILITY EFFORTS
RECOGNISED WITH TRENDS
GLOBAL IMPACT AWARD
DEME is named a winner of the Trends Global

sustainable value for society. To win this award
DEME is deemed to have gone ‘above and
beyond’ the conventional targets, such as a
climate-neutral or energy-efficient policy.
11
10
12
 ANNUAL REPORT 2022 
  DEME PEOPLE MAKE THE DIFFERENCE
We know we have
the top people in
the business able
to find innovative
solutions for our
customers.

highly skilled
professionals
79
different
nationalities
among
crew and staff

of DEME
staff received
compliance
training
DEME ANNUAL REPORT 2022 
The collective creative brainpower of our

how we make the difference, and this is
why we dare to pioneer. We know we have
the top people in the business able to find
innovative solutions for our customers
that have never been seen before.
DEME recognises that these talented
people are very much in demand.
Therefore, we put a lot of effort into
attracting and retaining our workforce.
Once people come on board, we want
them to stay on board. Because of our
diversified portfolio, we truly believe
that we can offer and accommodate
a lifelong career at DEME.
Attracting the best
people in the industry
We launched our employer branding
campaign with the tagline ‘Where


of a pioneering company working
towards a sustainable future by
offering solutions for global challenges.
Given our sustainability ambitions,
employees get the chance to literally
change the world, whether this is
building offshore wind farms to bring
renewable energy to millions of homes
or constructing a new port to stimulate
economic growth and international

A lifelong career
We have a number of initiatives in place,
targeted at creating transparency and
making it possible for people to ‘drive
their own career’. Our DEME career

overview of all staff jobs within the
company - is a step in the right direction.
Internal mobility and growth are of
course supported by a wide range of
educational and training possibilities.
Health & wellbeing
For DEME it is important to provide
a multicultural and inclusive working
environment and we put every effort
into ensuring that people are safe and
well, both physically and mentally. In the
past year we investigated the needs of
our workforce, and we are set to launch

& wellbeing and diversity & inclusion.
Both challenges and opportunities
await anyone that joins DEME and
that is what makes a DEME career so

contribute to a more sustainable planet,
there is no doubt that the ‘One DEME,

DEME people make
the difference
DEME people are special: pioneering, determined, but at the same time,


industry, without our talented people DEME would not be able to
accomplish the complex and challenging projects it does each day.

S
T
R
SAFETY
The personal safety and health
of employees and stakeholders
is our greatest priority. Everyone
has the right to work in a safe and
risk-free environment at all times.
TECHNICAL
LEADERSHIP
With an open mind and the
right team spirit, we continue to
improve all aspects of our work
process and develop trailblazing
solutions to address the needs
and challenges of our customers.
RESPECT & INTEGRITY
Individuality and diversity are valued
and performance is recognised.
Our relationships with suppliers,
subcontractors and partners
reflect respect, understanding
and sound business practice. We
observe all applicable laws and
regulations in the countries where
we are active. We respect human
rights and prohibit discrimination.
DEME
core values
DEME's core values demonstrate our commitment to
consistently deliver excellence to our customers and value
to our company. We also expect suppliers, subcontractors
and partners to adhere to these standards. At DEME,

 DEME CORE VALUES
DEME ANNUAL REPORT 2022 
I
V
E
INNOVATION
Innovation is the cornerstone of our
achievements. We continuously push
our boundaries by developing new,
value-adding services and solutions.
VALUE CREATION
We make result- and sustainability-
driven decisions in order to
ensure long-term growth for the
benefit of employees, customers
and shareholders. This includes
strict financial governance to
keep our company healthy.
ENVIRONMENT
We protect the environment and
the communities in which we do
business by limiting our impact

for sustainable value creation
together with our stakeholders.

VESSELS DEDICATED
TO OFFSHORE ENERGY

CUTTER SUCTION
DREDGERS

TRAILING SUCTION
HOPPER DREDGERS

SPECIALISED
VESSELS

DEME fleet
DEME is the proud owner of the most versatile

vessels in the industry after we embarked on an

which ensures we stay well ahead of the game.
We now have more than 100 vessels in our modern fleet, allowing us to offer
the optimal solution for our customers’ projects worldwide. This includes
groundbreaking vessels such as ‘Orion’, which brought a game-changing
installation concept to the offshore energy market, and ‘Spartacus’,
the most powerful mega cutter suction dredger in the world.
Offshore
installation
vessel ‘Green
Jade’ will be
equipped
with a 4,000-
tonne crane.



 DEME FLEET
DEME ANNUAL REPORT 2022 
DEME’s revolutionary offshore
installation vessel ‘Orion’ heralds a
new era in the offshore wind industry.

history on entering the market as
it performed DEME’s first floating
monopile installation ever to take place.
‘Orion’ is built to handle the
coming generations of turbines
and foundations, and in line
with this, it is equipped with a

engineered integrated motion
compensated pile gripper. This
tool enables the crew to upend the
monopiles, which are transported
horizontally on deck, and keep them
vertical and stable during installation,
despite motions, waves and currents.
With a total installed power of

vessel has a huge, unobstructed
deck and a deadweight that has

the heaviest components.

monopile foundation installation in the
world, the new vessel also proved its

successfully installed giant monopiles,
topsides, a huge jacket and it had
carried out a major decommissioning
project in the North Sea.
With DEME’s ambition to have the
most sustainable fleet in the industry,
these considerations are a vital part
of the vessel’s design. ‘Orion’ has dual
fuel engines, capable of running on
the cleanest fuels available, a Green
Passport, Clean Design notation and
a waste heat recovery system.


prepared for the US market.
‘Green Jade’, built by the joint venture
CSBC-DEME Wind Engineering
(CDWE), is an equally impressive new
floating offshore installation vessel
and is on course for delivery this year.


loading capacity, the newbuild vessel
is designed to work in deeper waters
and challenging seabed environments
such as those found in Taiwan.
‘Green Jade’ is the first offshore
installation vessel designed and
built in Taiwan and already has its
first projects lined up, including
the Hai Long offshore wind farm.
‘Orion’ worked
on a series
of projects
in 2022 and
heralded a
new era in the
offshore wind
industry.

Fuga. Cae
nisque
doluptata
nonsed mo
te endusam,
omnimol
uptaspe
 DEME FLEET

wind power across the globe, and as
DEME wins contracts in the US and
Taiwan, it was clear that the company
needed more cable laying capacity to
answer the demands of its clients in
this growing sector. DEME’s ‘Living
Stone’ is already renowned for its
efficiency and large cable capacity,
so the hunt was on for a similar vessel



‘Viking Neptun’ from the Norwegian
shipping company Eidesvik.
Build to the highest Norwegian
standards, ‘Viking Neptun’ had a

tonnes below deck, but DEME will
boost this capacity by adding a second,

and a cable installation system similar
to that of ‘Living Stone’, which was
designed by DEME engineers. The
vessel is equally suited for inter-array

Continuing efforts to provide a
future-proof, sustainable fleet, ‘Viking
Neptun’ is fully compliant with emission
standards and features the latest
environmental technology, including
a battery pack for best-in-class fuel
efficiency. The vessel has plenty


and redundancy and is actually the
first hybrid vessel in the fleet. In


it to run on diesel or batteries, saving
a substantial amount of fuel as the
engines are always running closer

the battery pack serves as a peak
shaving device, reducing load
dynamics on the engines and hence
saving fuel and maintenance costs.
To ensure continuity, the highly

Having two state-of-the-art cable

crews give the company even more




DEME ANNUAL REPORT 2022 
DEME’s famous sister vessels –

– are both being upgraded with a new

handle the XXL turbines of the future.
‘Sea Installer’ was the first to be
upgraded, which mainly included a

sponsons on both sides, a new Huisman
Leg Encircling crane and pedestal, and

It is about to set off for the
Vineyard Wind 1 project in the US,
the first large-scale offshore wind

‘Sea Challenger’ will be reflagged and
wil join Japan Offshore Marine (JOM),
the DEME Offshore and Penta-
Ocean Construction joint venture



In a major step, DEME decided to

by purchasing and converting a


and width, will be the largest in the
sector, boasting an enormous payload


Currently, the bulker is undergoing

Ocean Shipyards in Singapore. This
includes a new powerplant and
propulsion system, as well as an
upgrade of the accommodation and
the construction of a new bridge.
The new fallpipe vessel was renamed
'Yellowstone' following a competition
whereby DEME employees submitted
their suggestions. Fully compliant
with the latest emission standards,
the fallpipe vessel will also be the first
in the fleet to be prepared for (green)
methanol and it will be the first dual
fuel fallpipe vessel in the industry.
When using green methanol, it is
possible to realise DEME’s ambition
of a net zero GHG vessel, which is in
line with the company’s ambitions

Moreover, this vessel has a hybrid power
plant with a 1 MWh Li-ion battery,
which will lead to benefits similar to
those of the hybrid ‘Viking Neptun’.

with Selective Catalytic Reduction
technology, making it TIER III compliant.
'Yellowstone' is equipped with a central


in order to allow pre- and post-lay
activities using rocks with larger
diameters close to subsea structures.
This inclined fallpipe is designed for

it ideal for the renewables sector.
'Yellowstone' is set to join the DEME




Group Performance 2022
Quote of the CEO

the background of geopolitical
tensions, rapidly rising inflation, high
steel prices and challenges associated
with the pandemic, we performed well.
In addition we became a publicly traded


visibility and support for our strategy.

ability to strengthen our industry
leadership and successfully diversify
our growth opportunities, based
on the strength of our dedicated

record high orderbook fueled by a
growing global interest in addressing
climate change and making the
transition to clean energy. To
support these demand trends and
our growth ambitions, we are further

Executive Summary
DEME achieved two records in




There was healthy demand in all

increase in orderbook compared to

awards for offshore projects around
the globe, including in new geographies,
also boosted the orderbook.

turnover growth. Offshore Energy



Dredging & Infra slightly improved

challenging geopolitical conditions
while Offshore Energy achieved
several key milestones, including
the installation of the largest ever
monopile foundations installed in
Europe and the completion of an
offshore wind farm on a rocky seabed,
both industry firsts and demonstrating
DEME’s technical and engineering

year with large-scale projects in the

The associates in DEME’s concession
segment reported slightly softer
net results due to lower wind in the
offshore concessions but was awarded

Scotwind seabed leasing process.



While Dredging & Infra remained



performance. This was offset by
strong results in Offshore Energy and




and slightly lower depreciation and





DEME’s financial position remains
healthy with a net debt position of

while the company continues to make
substantial capital investments

fleet in support of future growth.
HIGHLIGHTS
FINANCIAL
YEAR 2022



reflecting continued
healthy demand, strong
market positioning and
sizeable wins mainly in the
Offshore Energy segment



growth in all segments





million euro compared to











 GROUP PERFORMANCE 2022
DEME ANNUAL REPORT 2022 



(in million euro)
   
Group 6,190.0 5,905.2 4,500.1
+5%

(in million euro)
   
Offshore Energy 3,260.9 2,816.6 1,133.5
+16%
Dredging & Infra 2,615.7 2,833.3 3,176.5
-8%
Environmental 313.4 255.3 190.1
+23%


  


(in nominal value)
Europe 55% 62% 74%
-9%
Africa 5% 7% 17%
-26%
Asia 13% 6% 8%
+13 4%
America 27% 25% 0%
+16%
Middle East 0% 0% 1%


(in million euro)
  


Orderbook 2021 2,021.2 1,456.9 1,079.1 1,348.0
Orderbook 2022 2,307.5 1,612.4 1,448.2 821.9
DEME’s orderbook reached a record



The overall orderbook at year end


This increase was led by strong
demand in both the Environmental
and the Offshore Energy segments,
the latter including the addition of
major long-term projects in South-East


From a geographical perspective




Europe continues to account for
more than half of the orderbook.
Outlook
The following statements are
forward looking, and actual
results may differ materially.
Given the robust demand trends across
the business, in particular the Offshore
Energy segment, management is
confident about DEME’s long-term

see a gradual increase in turnover

current backlog and current and
projected fleet capacity. In light of
the project-based nature of many
of DEME’s activities, management

to vary somewhat but to stay within


present market conditions, current
orderbook and fleet capacity,




the growth is anticipated to be

Dividend
DEME’s Board of Directors will


per share. Subject to the approval

Board of Directors, the record date is

30
Turnover
Year-over-year comparison
(in million euro)
2022 2021 2020 FY22 VS FY21
Offshore Energy 957.8 916.4 962.0
+5%
Dredging & Infra 1,524.3 1,478.3 1,151.6
+3%
Environmental 206.3 166.2 140.0
+24%
Concessions 2.2 1.5 2.1
Total turnover of segments 2,690.6 2,562.3 2,255.7
Reconciliation
 -35.9 -51.7 -59.9
Total turnover as per financial statements 2,654.7 2,510.6 2,195.8
+6%
Geographical breakdown

2022 2021 2020
FY22
VS FY21
(in nominal value)
Europe 75% 74% 83%
+7%
Africa 12% 19% 6%
-35%
Asia 8% 5% 9%
+96%
America 5% 2% 2%
+195%
Middle East 0% 0% 0%
≈

year-over-year, while revenue for the




rebounded to pre-pandemic levels


The Offshore Energy segment delivered
strong turnover growth in the first half
of the year; for the second half of the
year, turnover was impacted by clients
shifting cable installation projects from

to vessels in preparation for project

The Dredging & Infra segment made

against a backdrop of the Russia-Ukraine
conflict which required the redeploying
of vessels to new projects in Europe,

segment grew mainly in Belgium and
France on work performed on soil
remediation and treatment projects.
From a geographical perspective,



While we see marked future growth for

bookings over the past two years, Europe
continues to account for three quarters


to the proportionate method in the segment reporting but according to the equity consolidation method in the financial statements.
INTRODUCTION GROUP PERFORMANCE 2022CHAPTER 01
DEME ANNUAL REPORT 2022 



(in million euro)
   
EBITDA 473.9 469.3 369.5
+1%
EBITDA margin 17.9% 18.7% 16.8%
EBIT 155.2 143.3 64.3
+8%
EBIT margin 5.8% 5.7% 2.9%
Net profit 112.7 114.6 50.4
-2%
Net margin 4.2% 4.6% 2.3%




somewhat by a combination of a
higher number of vessel dockings
and overhauls, inflation, consumables
and commodity price increases.
The performance however was
different segment by segment
with the Offshore Energy segment


segment and the Environmental



in liquidated damages received as
compensation for the incremental
costs incurred as a result of the late
delivery of the ‘Orion’ (Offshore


liquidated damages for ‘Spartacus’
(Dredging & Infra segment).






and consisted of higher depreciation



The increase in depreciation costs in

in the ‘Spartacus’, the cutter suction
dredger, which was added to the

a service operation vessel, and a
half year of depreciation on the




The equity companies contributed

the Concessions segment contributed

to 11.1 million euro a year ago.


on a pro forma comparison base

The investments in ‘intangible assets’
and ‘property, plant and equipment’




‘Orion’, DEME’s revolutionary offshore
installation vessel which officially
was added to the fleet in the second

maintenance investments in DEME’s
fleet and conversion investments for
‘Viking Neptun’ and ‘Sea Installer’.
Not included in this investment
amount is the ongoing investment
in the ’Green Jade’, a new offshore
wind installation vessel under
construction in Taiwan by CDWE, a joint
venture between CSBC, the largest

Operating working capital








euro were received with amortisation

years in equal installments.




It is not just about having the most technologically
advanced vessels in the industry that determines
what makes a company so special - but the people
and their spirit. We really are One DEME, One Team!
JÖRG EDEN
|

STRATEGY
02
CHAPTER
Relevant
market drivers

 RELEVANT MARKET DRIVERS
01
REDUCING
EMISSIONS &
TACKLING
CLIMATE CHANGE
The drive to achieve the ambitious

becoming more urgent as countries
try to slow global warming and move
away from fossil-based fuels. The
clean energy transition is seeing
increasing demand for offshore
wind energy and a focus on the
importance of future fuels such as
green hydrogen.

a keen eye on global megatrends and the impact these have on

02
G R OW I N G
POPULATION &
URBANISATION




population lives within 100 km of the

that are less than 10 m above sea
level, leaving them highly vulnerable
to sea-level rise and other weather
events such as storm surges. This
means that flood defence solutions
are vital and will become even
more important in the future.

makes it necessary to invest in land
reclamation and new infrastructure.
03
GLOBALISATION
AND THE GROWTH IN
WORLD TRADE AND ITS
IMPACT ON MARINE
INFRASTRUCTURE
Over the past decades,
globalisation has led to a
substantial increase in international
trade between countries worldwide,

supply chains and trade routes
are developing, and new ones
are being created as geopolitical
and macro-economic forces shift
current trading patterns. This


their access channels and other

major trend is that vessels –
whether containerships, bulkers
or tankers – are getting bigger.
Berths, fairways and turning basins
have to be dredged and widened to

of vessels.
DEME ANNUAL REPORT 2022 
04
RISING SEA LEVELS
& E X T R E M E
WEATHER EVENTS
With much of the world’s population
located along the coast and global
warming leading to rising sea levels

the demand for coastal protection
works is increasing, and there is a
growing sense of urgency. DEME
has been applying its proven coastal
protection solutions for decades and
in line with its sustainability goals, it
is also looking for possibilities to use
nature-inspired solutions. These re-

coastline and river embankment
management methods and instead
aim to develop circular, Nature-
based Solutions.
05
S C A R C I T Y O F
MINERAL RESOURCES
& INCREASING
ELECTRIFICATION
The growth in the world’s
population, urbanisation, increasing
wealth and the energy transition
are leading to unprecedented
demand for electrification and
in turn, the demand for minerals.
Many of today’s clean energy
technologies are reliant on the
plentiful supply of critical minerals.


meet climate goals cobalt supply



researching the possibilities to
responsibly collect metal-rich,
polymetallic nodules from the
deep ocean floor and believes that
these nodules could become an
important source of high-grade,
low carbon critical minerals.
06
TACKLING POLLUTED
SOILS & THE NEED
TO CREATE AND
PROTECT LAND
It is even more important today to
value precious land resources and
as the population continues to grow
the demand for new residential or
industrial areas will only continue.
Therefore, it is crucial to be able
to remediate polluted brownfield
sites and give them a valuable new
purpose. With the increasing focus
on promoting a sustainable and
circular economy, it is essential
to clean and reuse as much of the



DEME’s
2030 Strategy
 DEME’S 2030 STRATEGY
DEME ANNUAL REPORT 2022 

DEME is a leading marine
solutions provider, active in the
fields of dredging and marine
infrastructure, offshore energy
and environmental remediation.
DEME aims to make the world a better
place by working towards a net zero
future, addressing global challenges
including climate change, energy
transition, a growing population,
polluted rivers and soils, and the
scarcity of mineral resources.
DEME focuses on marine and geo-
engineering innovations and solutions
linked to water and soil, delivering
projects in a reliable, sustainable and
efficient way. DEME can therefore

professionals and operates one of
the largest and most technologically
advanced fleets in the world.

Our strategic ambition is to:

reliable, and sustainable global
leader in marine solutions and

a focused and diversified
expansion strategy and
asset-related innovation and
investments anticipating the



 DEME’S 2030 STRATEGY

DEME will deliver on its strategic ambition and further strengthen its position as a leading
marine solutions provider and will pursue its vision, building on the following strategic enablers.
01
02
0304
05
RELIABLE
SOLUTION
PROVIDER
OPERATIONAL
EXCELLENCE
H E A LT H Y
BALANCE SHEET
INNOVATION &
INVESTMENTS
SUSTAINABILITY

&

DEME ANNUAL REPORT 2022 
ASSET RELATED
INNOVATION &
INVESTMENTS
Innovation and investments give
DEME the competitive edge
and positions the company
as a front runner. DEME is
considered one of the most
technologically advanced
companies in the industry. This
is the outcome of a multi-year
fleet, and a pioneering spirit
that enables us to provide new
concepts that have never been seen
before. This powerful combination
allows DEME to deliver on the
most demanding projects.
To further strengthen this
capability, DEME will continue to
invest in the following domains:

initiatives and techniques
where we can leverage our
capabilities & people

in a balanced way to capture
the growth opportunities

portfolio to strengthen the
position of our contracting
segments and increase
recurring revenues and profits

such as deep-sea mineral
harvesting, green hydrogen and
other advanced initiatives with

F O C U S O N
STRATEGIC CHOICES
& OPERATIONAL
EXCELLENCE
Today, the company is already
organised around optimising its

further pursue this trajectory.

wants to balance its resource
allocation (capital investments
and human capital development)
and as a result, wants to wisely
spend the available resources and
invest in the right initiatives to fuel
growth and further strengthen
the leadership position of DEME.
02
A SEASONED,
HIGHLY SKILLED
AND COMMITTED
WORKFORCE MAKING
THE COMPANY A
RELIABLE SOLUTION
PROVIDER
DEME is a proven, reliable solutions
provider and delivers what was
promised. Our track record of


the world today. The commitment

we are well equipped to continue
to deliver on our promise based on
our unique capabilities and deep

01
A HEALTHY BALANCE
SHEET SUPPORTING

INVESTMENT
STRATEGY

disciplined capital allocation
policy, the company has a healthy
balance sheet and a conservative
debt level, allowing to continue
to invest in its mid and long
term future, and to move swiftly
when opportunities arise.
05
SUSTAINABILITY
AT THE CORE
OF WHAT WE DO
DEME positions ESG and safety
at the core of all of its activities.
Our sustainable strategy
is based on two pillars.
EXPLORE sustainable
business solutions.
EXCEL in our operations by
maintaining and strengthening
our sustainable performance.
We outline DEME’s sustainability
strategy in more detail
later in this chapter.
04
03

DEME’s two-dimensional
strategy for sustainable
performance
01
EXPLORE SUSTAINABLE BUSINESS SOLUTIONS
02
EXCEL IN OUR OPERATIONS
This strategy will help us to
create sustainable value for our
customers, DEME and society.
At DEME, it is our ambition to
fundamentally contribute to
sustainable solutions for the
global environmental, societal
and economic challenges
facing our world today.

we continually strive to improve the
sustainability of our own operations.
This has led to our two-dimensional
strategy for sustainable performance
– we aim to EXPLORE and to EXCEL.
TO EXPLORE
SUSTAINABLE
B U S I N E S S
SOLUTIONS
by continuously
challenging ourselves to
enlarge our sustainable
business portfolio and
to align our business
decisions with the
Sustainable Development
Goals where DEME can
create the most impact.


information.
T O
E XC E L
I N O U R
OPERATIONS
by maintaining and
strengthening a
sustainable performance
in our daily operations.
We refer to chapter 5


information.
01 02
 DEME’S SUSTAINABILITY STRATEGY
DEME ANNUAL REPORT 2022 
It is undeniable that the
world is facing multiple global
challenges that could have a
serious impact on society and
the environment unless we act



priorities for creating a

While these goals address different
themes and aspects of sustainability, they
are all interconnected. Together, they will
help us to overcome global poverty, stop
climate change and fight inequality so that
we all live in a better world.

helping achieve the SDGs. These goals
have helped us to understand the
economic, environmental and social
impact of our operations as we move
towards a project portfolio with a strong
sustainable focus.
DEME does not contribute to all of the
goals equally, instead we focus on those
where we can make the most impact.

Sustainability Themes.

the implementation of our two-




LOCAL
COMMUNITIES
HEALTH AND
WELLBEING
WASTE AND
RESOURCE
MANA
GEMENT
DIVERSITY AND
OPPORTUNITY
NATURAL
CAPITAL
CLIM AT E
AND ENERGY
ETHICAL
BUSINESS
SUSTAINABLE
INNOVATION
DEME’S 8 KEY SUSTAINABILITY
THEMES AND THEIR CONNECTION
WITH THE RELEVANT SDG
s.


During 2022 we updated our Materiality Matrix.
We conducted a materiality assessment to ensure we
prioritise the issues that have the biggest impact on our
business, and that matter most to our stakeholders.
TO DO SO WE:

topics

these within our sector and relevant ESG
topics used by risk rating agencies;

Matrix to define the risk category,

Applied a scoring methodology
to better quantify the potential
impact of DEME’s ESG risks;
Compiled the results in the updated
Materiality Matrix and validated these
results through our governance model.

Impact on DEME businessMedium
High
High
Importance to stakeholders
Workplace diversity and inclusion
Health & wellbeing
Responsible business conduct
Corporate & ESG governance
Biodiversity
Resource management
Supply Chain
Land restoration
Air pollutants
Talent management
Partnerships
Safety
Resilient infrastructure
GHG emissions
Labour practices & human rights
Sustainable innovation
Energy transition
Local community engagement
  

 DEME’S SUSTAINABILITY STRATEGY
DEME ANNUAL REPORT 2022 


DEME's Materiality Matrix 2022 as its most material topics.


  

   
CLIMATE
AND ENERGY
E Energy transition To expand our
offshore renewable
energy solutions
and to explore
new marine-based
solutions for
renewable energy
production,
connection and
storage.
MW Installed
wind turbines
Contributed
capacity
MW Beneficial
Ownership
440
2,798
144
2,378
1,867
144
1,477
2,499
144
E Resilient
infrastructure
To build
resilient marine
infrastructure, such
as the construction of
ports, locks, tunnels
and bridges and to
provide dedicated
flood protection
solutions and
coastal protection
management.
Turnover
(% eligible; % aligned)
CapEx
(% eligible; % aligned)
OpEx
(% eligible; % aligned)
29; 26
52; 52
0; 0
28; 24
32; 32
0; 0
-
-
-
E Energy efficiency Climate-neutral
operations by 2050
and improvement
of energy efficiency
in our operations.
kt of emitted CO
worldwide
e)
653 833 660
E GHG emissions To reduce greenhouse
gas emissions by 40%
by 2030 relative to
2008 per unit of work.
Sustainability
linked loans target

% Low carbon fuels
versus total consumed
fuels (energy based)
6.0 - -
HEALTH AND
WELLBEING
S Safety To provide a safe,
secure and healthy
working environment
for all people involved.
Worldwide Lost Time
Injury Frequency
Rate - target
<= 0.20
(Sustainability
Linked Loans)
Worldwide Lost Time
Injury Frequency
Rate ('Safety
thermometer')
0.23 0.9 0.19
SUSTAINABLE
INNOVATION
G Sustainable
Innovation
Enhance scientific
research, upgrade
technological
capabilities
and encourage
sustainable
innovation within
our projects.
Sustainability
integrated in each
innovation campaign,
as part of the
evaluation criteria
and incorporated
in the innovation
stage gate process.
Number of approved
innovation initiatives
12 14 18
ETHICAL
BUSINESS
G Responsible
business conduct
Respect and protect
labour rights in
our organisation.
Embed an ethical
mindset within DEME
and transparently
communicate
about our ethical
performance.
To ensure every
employee has
followed frequent
training courses
about ethical
awareness.
% DEME staff
that received
DEME Compliance
Awareness training
99 99 97

The world’s most
powerful cutter
suction dredger
‘Spartacus’
embodies DEME’s
innovative spirit.

which focuses on disruptive and
transformational innovation, and the
Diver campaign, whereby the DEME
community contributes hundreds of
new ideas to our Innovation team. If

on a commercial, technical and
sustainable level, DEME will invest
and develop them, allowing us to
seize opportunities at an early stage
and obtain first-mover advantage.

having a radical approach to disruptive
innovation and looking beyond what
is possible now, instead focusing on

two to three decades. Our innovative
programmes have led to moves into the
fledgling green hydrogen market and


Our innovative spirit means that we
can bring groundbreaking concepts to
the industry that boost performance,
efficiency and sustainability such as

installation vessel ‘Orion’ which can
perform floating XXL monopile
installation. It is equipped with an
integrated motion compensated
pile gripper that was the brainchild
of DEME’s engineers. This unique
tool enables the crew to upend the
monopiles and keep them vertical
and stable during installation,
despite currents and waves.
Innovation is at
the heart of DEME
DEME is renowned for being at the forefront of innovation,
which enables it to contribute to sustainable growth and create new
opportunities. Innovative thinking is embedded in our organisation,
and we have various initiatives underway which empower our
employees to become thought-leaders in the industry.
 INNOVATION IS AT THE HEART OF DEME
DEME ANNUAL REPORT 2022 
Boosting performance,
efficiency and sustainability
DEME’s new mega cutter suction

kW on the cutterhead - is able to
achieve unrivalled production rates

Before 'Spartacus’, the rock would
have been dealt with using drilling and

powerful, the giant cutter suction
dredger has impressive sustainability
credentials, achieving significant
fuel savings per cube dredged.

boosting performance, DEME Offshore
drilled an entire wind farm into rock
using industry-first technology at
the Saint-Nazaire offshore wind

unprecedented, there was no suitable
equipment in the market, therefore
DEME Offshore manufactured
its own. Together with its partner
Herrenknecht, it jointly designed a

HYPORT® Duqm is another good

to innovate and pioneer. In order to
support the clean energy transition
DEME Concessions and its partner
are developing an industrial-scale,
green hydrogen plant in Duqm.
We are at the cutting edge of
this rapidly growing sector.
Meanwhile, Global Sea Mineral
Resources (GSR), DEME’s deep-

continuing to progress with its
ambition to responsibly collect
polymetallic nodules from the

GSR team successfully tested its
pre-prototype nodule collector,

DEME Environmental is using
innovative evidence-based

projects and our subsidiary de
Vries & van de Wiel has developed
a pioneering hybrid soil washing

its partner Tauw. The soil washing
process achieves a cleaning

's
Innovative
fleet
Key risks

 KEY RISKS
01
DEME’S BUSINESS
AND GROWTH
OPPORTUNITIES
ARE SUBJECT TO
MACROECONOMIC
DEVELOPMENTS
DEME’s activities are driven
primarily by the growth of the
global population, the trend to
locate industry near coastlines
and along major rivers, the growth
of the global economy and the
need for suitable infrastructure
that this growth entails, the
increasing demand for energy
and the transition to renewable
energy and climate neutrality, the
scarcity of specific minerals and raw
materials, and the development of
international trade and shipping.
The following is a selection of key risks that, alone or in combination with other


02
DEME’S BUSINESS
AND GROWTH
OPPORTUNITIES
ARE SUBJECT TO
GEOPOLITICAL
DEVELOPMENTS
DEME’s operations are, in some

elevated risks relating to political
and/or social instability (including
war and civil unrest, armed conflict,
terrorism, hostage taking, piracy,

03
DEME FACES PROJECT
MANAGEMENT AND
EXECUTION RISKS
Projects are usually characterised
by the obligations entered into
upon the submission of the offer
as part of the tendering process
for a project and, upon award, the
signing of a contract to construct or
deliver an infrastructure or a scope
of work with a unique character for

and within an agreed period of time.
04
D E M E F A C E S
SIGNIFICANT
COMPETITION IN
ITS INDUSTRY
DEME faces competition from
other local and international market
players active in the same industry.
05
DEME IS SUBJECT

RISKS IN RESPECT OF
THE CONTRACTORS,
SUPPLIERS, VENDORS,
JOINT VENTURE
PARTNERS OR
OTHER PARTIES
The successful completion of
projects depends on the ability
of third parties to perform their
contractual obligations and
is subject to factors beyond
DEME’s control, including actions
or omissions by these parties
and their subcontractors.
A deeper assessment of the risks is included in

impact and respective risk management and control.
DEME ANNUAL REPORT 2022 
DEME is a truly international company and
gives everyone the opportunity to excel in their
career and explore different roles. I originally
joined the company in India in an administrative
role and just a few years later, I became the first
HR Officer on board of ‘Spartacus’, the most
powerful cutter suction dredger in the world.
ANITHA SHANMUGAM
|

SEGMENTS
03
CHAPTER
  DEME’S ORGANISATIONAL STRUCTURE
DEME’s
organisational
structure
DEME has evolved into a global marine sustainable solutions provider
organised around 4 distinct segments. Each of the segments serves a distinct
market, and has separate assets, revenue models and growth strategies.
01
OFFSHORE ENERGY
This segment provides engineering
and contracting services globally in
the offshore renewables and oil & gas

with specialised offshore vessels.

is involved in full Balance of Plant
contracts for offshore wind farms.

procurement, construction and
installation of foundations, turbines,

substations. The Group also offers
operations and maintenance, logistics,
repairs and decommissioning as well
as salvage services to the market.
In the oil & gas industry, the Group
performs landfalls and civil works, rock
placement, heavy lift, umbilicals, as well
as installation and decommissioning
services. In addition to these main
activities, the Group also provides
specialised offshore services, including
geoscience services and the installation
of suction pile anchors and foundations.





OFFSHORE ENERGY
ENVIRONMENTAL
DREDGING & INFRA
CONCESSIONS
58%
of DEME
turnover
1
8%
of DEME
turnover
1





36%
of DEME
turnover
1

DEME ANNUAL REPORT 2022 
02
DREDGING & INFRA
In this segment the Group performs
a wide variety of dredging activities
worldwide, including capital and
maintenance dredging, land
reclamation, soil improvement, port
construction, coastal protection
and beach nourishment works.

specialised dredging vessels, various

moving equipment. The Group also
provides contracting services for
marine infrastructure projects.
This includes the engineering,

marine structures such as jetties,
port terminals, locks and weirs,
infrastructural works such as bored
and immersed tunnels, foundation
and marine works for bridges or
other constructions in a marine or
fluvial environment and civil works
for harbour construction, dams and
sea defences, canal construction,
revetment, quay wall construction
and shore protection. In addition,
the Group is active in the marine
aggregates business, which includes
the dredging, processing, storage
and transport of aggregates.
Finally, the Group provides maritime
services for port terminals.
03
ENVIRONMENTAL
The Environmental segment focuses
on innovative environmental
solutions for soil remediation
and brownfield redevelopment,
environmental dredging and
sediment treatment and water
treatment. It is mainly active in

in other European countries on
a project-by-project basis.
04
CONCESSIONS
The Concessions segment, unlike
the contracting segments, invests in
and develops projects in wind, port
infrastructure, green hydrogen and
other special projects. It operates
through participations in special
purpose companies – greenfield
and brownfield. Besides creating
economic value on its projects
and generating equity returns on
its investments, it also aims to
secure contracting activities for
the Group in the EPC phases of its
projects. Under the umbrella of
this segment, the Group also holds
concessions of seabed areas which
contain polymetallic nodules and
develops a technology to collect
and process these polymetallic
nodules containing nickel,
cobalt, manganese and copper


  OFFSHORE ENERGY

the year we started
offshore wind activities

total capacity
installed since start

dedicated offshore
energy vessels

turnover
(2022)

contributed capacity
in 2022
DEME ANNUAL REPORT 2022 
DEME Offshore Energy is
the leading global solutions
provider in the offshore
energy industry, with a
successful track record
spanning more than three
decades. We are playing
a key role in supporting
the energy transition and
helping countries achieve
their climate goals.
We were one of the first companies
to enter the renewables sector and
today, we are the number one offshore
wind contractor in the world, capable
of installing the latest generation XL

as well as offshore substations,

In the conventional energy industry,
DEME performs landfalls, civil
works, rock placement, heavy lift
and decommissioning services.
Operating a high-tech and versatile
fleet of specialised vessels, DEME
Offshore is able to provide fully
integrated Balance of Plant, EPCI, and
Transport & Installation contracts.
Furthermore, DEME provides
specialised offshore services,
including geoscience services and
geophysical offshore and marine site
investigations, as well as environmental
surveys to both the renewables
industry and the oil & gas sector.
OFFSHORE ENERGY
 ANNUAL REPORT 2022 

 OFFSHORE ENERGY
Mission impossible?
There is no such thing
at DEME Offshore
DEME’s business philosophy is founded
on its vessels, having super smart
people and ingenious methodologies.
With the aim of having the most
modern, versatile and sustainable
fleet in the industry, DEME is willing
to take bold steps and make the
necessary investments to ensure its
vessels are getting faster, bigger,
stronger and cleaner. This puts the
company in a position where it can
invent innovative methodologies for
the challenges the world is facing
that have never been used before.
Ultimately, DEME aims to be the best
offshore contractor, whether this is
in renewables or conventional energy
generation. DEME is continually looking
for new, more efficient solutions.
This drive is clearly demonstrated in
developing markets such as the US and

in the US, DEME started thinking about
innovative solutions and this led to a
clever feedering concept which is going
to be used at the Vineyard Wind project.
The turbine towers will be delivered to
DEME's dedicated WTG vessel by a US-
owned barge and the transfer of the
components offshore will be enabled
by motion compensation technologies.
Meanwhile, at Saint-Nazaire, DEME


invents a giant offshore drill, and
DEME is now the first company in the
world to have completed an entire
wind farm using monopile drilling
technology in rocky seabed conditions.


With incredibly challenging offshore wind farm

successfully constructed by DEME Offshore, there
is no doubt about the company’s prowess in this
rapidly growing market. Installation records have
been broken over and over again for turbines,
foundations, cable laying and rock placement.
55 ANNUAL REPORT 2022



represented a considerable challenge.
Every element of the offshore wind
farm, situated in the Baltic Sea, was
pushing industry boundaries. This
was also the first project for DEME’s

vessel ‘Orion’. The new vessel was
tasked with installing the largest

XXL monopiles weighed more than



introduced a whole range of
specially designed equipment
for the EPCI project and had to
reinvent tools to perform the
installations in floating conditions.

soil conditions, comprising a
muddy layer with chalk on top.

are necessary to provide enough
stability. This meant that the sheer
scale of these giants posed another
challenge because DEME had to find
manufacturing plants and ports able
to cope with these mega structures.
‘Orion’ embodies evolution
in the market

enormous components had to be
installed by the new vessel offshore
to strict tolerances and to a very

industry moves further offshore
into deeper waters, the floating
installation concept will become
even more important. ‘Orion’ is the
embodiment of the evolution in
the market, being equipped with a

motion compensated pile gripper.
This can upend the monopiles and
they remain vertical and stable,
despite motions and waves.
Strict tolerances achieved
To stabilise a monopile of this weight
- while floating - would have been
seen as impossible before. The 100 m
plus monopiles had to be hammered
in from a moving vessel, within a


DEME was delighted to work with its
client Parkwind on such an ambitious
project and to deliver what it promised,
thanks to the incredible efforts of a
determined and motivated team. DEME
is proud to be the first to perform this
floating installation method in the

ArcadisOst1
was the first
project for
DEME’s
revolutionary
floating DP3
installation
vessel ‘Orion’



56
Drilling an entire wind farm
into rock in just 13months
at Saint-Nazaire

before the planned schedule - DEME

amazing feat in France when it drilled
an entire wind farm into hard rock
using industry-first technology at
Saint-Nazaire. This accomplishment,
which many thought was impossible,
is even more remarkable given that
the work continued throughout the

Saint-Nazaire is the first commercial
offshore wind farm ever built in
France and also the first to use
drilled, XL monopile foundations.
Rocky seabed
Undoubtedly, thorough, detailed
preparation laid the foundations
for success, as well as a willingness
to invest in tailormade, innovative
equipment. The preparation for the

actually started four years before the

drilled such enormous foundations
directly into rock, which meant there
was no suitable equipment in the
market, therefore DEME Offshore
took the decision to manufacture
its own dedicated equipment.
DEME Offshore and its partner
Herrenknecht, the global leader
in tunnel boring machines, jointly

Offshore Foundation Drill and this
was accompanied by the so-called

encapsulated the drilling, installation
and grouting operations, protecting
them from the harsh marine
conditions, which in turn improves
operational working time significantly.
Crucially, the captain and crew of
DEME’s jack-up ‘Innovation’ and
the operations team made a huge
difference to the success of the project,
achieving terrific production rates.
A strong partnership

smooth running of the project
was having the right partners on
board such as Eiffage Métal for the
fabrication of the foundations and
Herrenknecht, as well as the support
of the port authorities in La Rochelle
and Saint-Nazaire and the local
community. DEME Offshore and
Eiffage Métal involved more than

hundreds of job opportunities and
is contributing to the development
of the blue economy in France.
Saint-Nazaire shows nothing is
impossible if clients choose DEME.



 OFFSHORE ENERGY
DEME ANNUAL REPORT 2022 57

the challenges, while being supported
by many departments within the

shows how DEME is able to identify
any risks, set up proper controls and

this, DEME has the right equipment
and unique vessels such as ‘Innovation’
with its impressive capabilities.

offshore wind farm project, DEME’s
teams and crew have gained invaluable

wind farms in France, and it has
recently been awarded the Yeu and
Noirmoutier offshore wind farm, which

Saint-Nazaire is the
first commercial
offshore wind
farm ever built in
France and also
the first to use
drilled, XL monopile
foundations
58
Focus on
sustainability
Climate change is one of the greatest threats to our planet
and society. There is a growing need for access to affordable,
reliable and sustainable energy. DEME provides solutions
to expedite the much-needed global energy transition.
The Offshore Energy
segment provides
sustainable business
solutions such as:

and maintenance of
offshore wind farms

energy islands.
TRANSPORT,
INSTALLATION AND
MAINTENANCE OF
OFFSHORE WIND FARMS
CL I MAT E
AND ENERGY
Since our very first wind farm




In total DEME helped construct

worldwide and has installed a total


01
DEVELOPMENT
OF ENERGY ISLANDS
CL I MAT E
AND ENERGY
DEME has been pioneering the
concept of energy islands off the
coast, which involves an artificial,
multifunctional island at sea
combining offshore renewable energy
production, storage, transmission and
conversion to other energy sources.
During the North Sea Summit held
in Denmark, four countries (Belgium,
the Netherlands, Germany and
Denmark) have jointly pledged to
accelerate the build-out of offshore



will become cornerstones in the
deployment and integration of
such ultra-large-scale renewable
energy generation, all four countries
have decided or are considering
constructing these islands.

awarded the construction of the
Princess Elisabeth energy island in
Belgium. DEME will also be involved
in the bidding process for the
Danish Energy Island, which will
connect up to 10 GW of offshore
wind capacity, via a partnership
with Copenhagen Infrastructure
Partners (CIP), a leading global
fund manager specialising in
renewable energy investments.
DEME also participates in several
02








 OFFSHORE ENERGY
DEME ANNUAL REPORT 2022 59
research initiatives such as the Joint
Industry Projects HybridEnerSeaHub
and North Sea Energy Cooperation.
HybridEnerSeaHub is investigating
the use of floating modules, in
combination with reclaimed land, to
make islands more adaptive in every
stage of their lifetime. The North
Sea Energy Cooperation brings
together organisations, companies
and knowledge institutions that
have a connection with the North
Sea in order to put the North Sea
on the map as a pioneering region
for the European energy transition.
Using an integrated approach, the
association researches how the North
Sea’s potential can be utilised for a


FLEET
UTILISATION RATE
TURNOVER
EBITDA &
EBITDA MARGIN
2020 2020
962
146
2020 2022
2022 2022
2021
2021 2021
916
171
958
222
42 42
34
ORDERBOOK
2020 20222021
1,134
2,817
3,261
(in million euro)
(in weeks)
(in million euro) (in million euro)
Performance
dashboard
MEGAWATT CONTRIBUTED
CAPACITY
2020
2,798
20222021
1,867
2,499
(MW Installed foundations)
15.2%
18.6%
23.2%
 OFFSHORE ENERGY
DEME ANNUAL REPORT 2022 
The Offshore Energy segment

reflecting a healthy backlog


In the second quarter, the ‘Orion’ was
added to the fleet, bringing a game-
changing installation concept to the
offshore energy market. Shortly after
its naming ceremony, the vessel set

1 offshore wind farm (Germany) where
XXL monopiles were successfully
installed. These XXL monopiles are
the largest monopile foundations
ever installed, weighing more than

DEME’s technical leadership.
Other milestones for the year included
the entire wind farm monopile
foundations in St Nazaire (France)
where the jack-up vessel ‘Innovation’
drilled monopile foundations into solid
rock, another first for the industry, and
a foundations, cables and wind turbine
installation project for the Kaskasi

In the non-renewables sector
the segment installed the intake
and outfall heads for the Hinkley
Nuclear power station (UK).
DEME Offshore US prepared to

for the Vineyard Wind and South
Fork projects, both on the US East
coast. The segment also began
preparatory work for its contract
with the Dominion Energy Group
for the construction of Coastal




DEME Offshore Energy continued

organisation and fleet (amongst
others the ‘Green Jade’, an additional
installation vessel, a DP fallpipe
vessel and a cable laying vessel) in
anticipation of future business growth.
The vessel occupancy for the offshore

to previous years, mainly due to
clients shifting cable installations

technical adjustments to the vessels
in support of project specifications in


The Offshore segment posted a solid

a favourable project staging, in
combination with the final settlement

euro) as compensation for the delayed
delivery of the vessel ‘Orion’, and
strong overall project management

The increase in the Offshore Energy
orderbook reflects new contract
awards, received during the second
half of the year, with project wins

years, including sizeable project-
wins in Continental Europe, the UK,


(in million euro)
   
Orderbook 3,260.9 2,816.6 1,133.5
+16%
Turnover 957.8 916.4 962.0
+5%
EBITDA 221.9 170.9 145.5
+30%
EBITDA margin 23.2% 18.6% 15.2%
EBIT 117.1 74.6 34.4 +57%
EBIT margin 12.2% 8.1% 3.6%
Fleet utilisation rate (weeks) 33.6 42.1 42.0
PROJECT EXECUTION
IN 2022

  DREDGING & INFRA

dredging
vessels

turnover
(2022)
7
immersed tunnel
projects executed

active
countries
DEME ANNUAL REPORT 2022 
DEME has been creating
new land and sustainable
infrastructure for more
than 145 years.
The Dredging & Infra segment
performs a wide variety of activities,
including capital and maintenance
dredging, land reclamation, port
construction, coastal protection and
beach nourishment works. DEME
operates modern, technologically
advanced vessels including dual
fuel hopper and cutter suction
dredgers, and it is very proud to
own ‘Spartacus’, the most powerful
cutter suction dredger in the world.
The marine engineering infrastructure
works complement and reinforce
these dredging activities. The design
and construction of port and inland
waterway infrastructure, civil works
such as bored and immersed tunnels,
and other marine infrastructure
including dams, sea defences, quay
walls and shore protection are among
activities carried out by DEME’s

DREDGING & INFRA
 ANNUAL REPORT 2022 

More than 145 years of
experience in dredging,
land reclamation and
marine infrastructure
DEME always wants to be a front runner
and we have continually invested
in having the best people and in
modernising our fleet, ensuring we can
anticipate our customers’ requirements
and developments in the industry. This
saw us make the bold decision to invest
in a new mega cutter suction dredger,
which is able to take on seemingly
impossible tasks. ‘Spartacus’ is the
most powerful cutter suction dredger
in the world and its ability to cut hard
rock is unrivalled as demonstrated in
the following chapter where we outline


our fleet is regularly performing
maintenance dredging assignments
such as our long-term contracts
along the rivers Elbe and Scheldt.
DEME’s dredging activities are
supported by our marine engineering

Infra team designs and constructs
everything from port infrastructure
to dams and sea defences, as well
as bored and immersed tunnels.
With a proven track record
constructing immersed tunnels dating
back half a century, DEME is the only
marine engineering contractor that
can combine dredging, offshore and

these challenging projects. Our
diverse, multidisciplinary knowledge
has enabled the Group to take on
‘once in a lifetime’ projects such as the

the longest immersed road and rail
tunnel in the world. Currently, our
portfolio also includes the Oosterweel

ring road, and the Blankenburg

project, which will see both a land and
an immersed tunnel constructed, is

Dredging is at the heart of DEME, and we have
been pioneering and creating land for the

combined with our specialist, state-of-the-
art fleet of hoppers, cutters, backhoe and
water injection dredgers, enable us to take
on the most challenging projects in the world

and greenfield port are being constructed.
 DREDGING & INFRA
DEME ANNUAL REPORT 2022 65



industry, DEME continues to set new standards. DEME has


and sustainability – that answer the needs of the future.
This can be in no doubt when
considering the mega cutter suction
dredger ‘Spartacus’, which entered the
fleet and was immediately deployed on

is in a league of its own. It is clear:
there is only one piece of equipment in
the world today capable of achieving
such astonishing production rates,


rock would have been dealt with using
drilling and blasting techniques.
To kick-off its DEME career, after
commissioning ‘Spartacus’ was

Egypt, where a new city and greenfield
port are being constructed. This is the
largest dredging and land reclamation
contract in DEME’s history, and on
completion, it will be one of the biggest
ports in the Mediterranean Sea.



. DEME is dredging



at DEME knew industry eyes were
intently watching as 'Spartacus', with


about work on its first project. But even
the DEME newbuild and engineering
teams, and the captains and crew, were



Cutter suction
dredger
‘Spartacus’
dredged
extremely
hard rock with
production levels
never reached
before.
66
The reduction in fuel is due to several
innovative features DEME has
introduced to make the vessel as
energy efficient as possible. ‘Spartacus’
is equipped with dual fuel engines,
enabling the operator to choose the
cleanest fuel available, and the vessel is
equipped with an installation to recover

generate steam and convert this
by means of a steam turbine into up


also demonstrated high levels of
workability, and was always the last

weather conditions were challenging.
The cutter suction dredger can


unprecedented autonomy and pumping
distance, having the ability to pump

However, despite the incredible
volumes and high production rate,
‘Spartacus’ was yet to face its
true test. That was to come with
its second project at the Port of

would be doing what it is built for






is

Spartacus era’ this project would have to
be performed using traditional drilling
and blasting techniques, which can result
in damaging shockwaves and vibrations.

close to residential and commercial
areas, therefore blasting techniques
could pose a considerable risk.
Dredging the hardest rock
The new cutter suction dredger
passed the test with flying colours.

hard rocks with values never reached
before. To do this without the need
to blast the rock apart is a huge
benefit environmentally, ecologically
and to the local surroundings.


On top of this ability to remove
a huge quantity of rock in a
very short timeframe, another
advantage was that port activities
could continue as normal.
Unprecedented work rate
and unlimited power

the port authority and detailed
preparation – more than a year in
advance - helped make the project a
success. The captains visited the port

months prior to the project kick-off

in the success was the supporting
maintenance and logistic teams.
They worked very hard to prepare
everything ashore, which included
building a dedicated workshop for
the cutter repairs, which made
sure workability was optimised.
In line with DEME’s drive to make each
project as sustainable as possible,
rather than dumping all of the cut
material in a dedicated offshore
area, much of it was used to build


ABU QIR 2 AND PORT OF LEIXÕES

production levels at the Abu Qir 2 project in Egypt and the Port

dredged m


 DREDGING & INFRA
DEME ANNUAL REPORT 2022 67
An impressive
performance at
Abu Qir 2 goes
hand in hand with
a significant fuel
and emission
reduction.
68

will ultimately improve access to
the Rotterdam region. This design,
build, finance and maintain contract
was awarded to the special purpose

Verbinding BV, which comprises
DEME Concessions, Ballast Nedam
Concessies and Macquarie Capital.
The project scope includes the

lanes, a land tunnel, immersed tunnel,

road and an elevated connection to

by the EPCM Contractor, a fully
integrated joint venture including


working on it at any one time.

been achieved and one of these was
reaching the deepest and highest
point of the Maasdelta Tunnel which

This only serves to highlight this
engineering feat, representing a




BLANKENBURG
When standing at the deepest point of the Maasdelta Tunnel,


This accomplishment underscores the powerful combination

Offshore
installation vessel
DP2 ‘Neptune’
was chosen as the
perfect vessel for
both accurately
dredging the tile
pits and the lifting
and installation
of the giant tiles
for the immersed
tunnel.
 DREDGING & INFRA
DEME ANNUAL REPORT 2022 69
the construction pits have been

concrete, representing a total volume
, has been poured
creating the dry construction pits.
Swift completion of the
tunnel elements
Crucially, the two tunnel elements
are ready and have been floated
out of the drydock in Rotterdam.
The advantage of having a
fully integrated team is really
demonstrated by one important part
of the project, which was accomplished

and resources of the DEME Group.

and ‘Meuse River’ were mobilised
to dredge the trench in the Port of
Rotterdam to receive the two huge
tunnel elements. Following the

offshore installation vessel ‘Neptune’
was chosen as the perfect vessel for

pits and the lifting and installation




despite strong currents, the tiles were

With a more traditional method these
tolerances could never be achieved.
Initially, the team had considered a

but during the integrated design
process, DEME engineers did a trial

creative colleagues came up with
the optimal solution and they also
had the advantage of being able to
choose the ideal vessel from DEME’s
specialised fleet. DEME’s engineers

working on immersed tunnel projects
in tidal rivers and currents, such as

The deployment of a jack-up based
solution has two clear benefits
compared to the original floating,
pontoon-based solution. Firstly, in
a river with strong tidal currents,

to be anchored using mooring
lines and anchors, placed at a
considerable distance from the
pontoon, whilst ‘Neptune’ just
needs to jack-up its spuds.
Secondly, parallel operations can be
undertaken from the large work deck
of ‘Neptune’, whereas it would take

from pontoons. In short, the use of
‘Neptune’ meant that the risks to
navigation were dramatically reduced
because of a smaller footprint and
shorter presence in the fairway. This is
particularly important as the Port of
Rotterdam has the busiest fairway in


carried out without incident, and

team on the swift and successful
conclusion of this part of the project.
Use of electric equipment
maximised
Sustainability is a key consideration
throughout the project too. In the

the use of electric machines has

pickers, far-reachers, telehandlers
and elevated platforms all running
on electricity or batteries.
Immersed tunnel knowledge
DEME has been involved in designing
and constructing immersed
tunnels since the beginning of their
construction, and as such can bring the
best practices into future projects.
Clients benefit from having one party

projects, which involve dozens of
interfaces – design and construction,
the immersion process, accesses to
tunnels, building pits and the dredging
works to name but a few. Rather than
having separate contractors, each with
their own specialities, DEME manages
all the interfaces and stakeholders,
giving the client peace of mind.
DEME’s complementary, integrated

engineers together and from a diverse
range of disciplines – dredging,
infrastructure and offshore in this

project, the Group can also bring its

tunnels to the project. DEME is the only
marine engineering contractor that


Focus on
sustainability


storms. To tackle this problem and in line with our sustainability
ambitions, we are therefore focusing on building resilient
infrastructure that is better adapted to climate-related hazards.
Within the Dredging &
Infra segment we provide
sustainable business
solutions such as:


energy islands



for coastal protection.
FLOOD PROTECTION
SOLUTIONS
CL I MAT E
AND ENERGY
To tackle the problem of sea level
rise and in line with our sustainability
ambitions, we are focusing on
building resilient infrastructure
that is better adapted to climate-
related hazards such as flood
protection solutions. Crucially,
we aim to provide an innovative
and integrated approach, which
includes sustainable coastal and
river embankment management.

beach nourishment projects in the
Emilia Romagna region in Italy,
spread along 11 km of coastline.
 of
sand was pumped to mitigate
the beach erosion and protect
the hinterland from flooding.
01
DEVELOPMENT OF
ENERGY ISLANDS
CL I MAT E
AND ENERGY

more information on the
development of energy islands.
02
 DREDGING & INFRA
DEME ANNUAL REPORT 2022 
b 
FOR COASTAL PROTECTION
NATURAL
CAPITAL
When switching from grey to green
coastal protection measures, a

Well-known hard engineered grey
solutions to protect coastal zones
against storms and floods have been
the worldwide standard for many
years. However, this infrastructure
sometimes disrupts natural coastal
processes and in a number of cases
more sustainable alternatives also
meet the required protection levels.
Ecosystem-based or nature-based
approaches to coastal defence
might even be more appropriate.
These solutions not only provide
protection against storms and
rising sea levels, but also add
ecological value, improve coastal
resilience and increase biodiversity.
Hybrid solutions can also combine
hard engineered solutions with a
more sustainable design type.
Coastbusters
Innovative field observations with
dedicated monitoring setups and
the scientifically underpinned data

and dynamic processes of biogenic
reefs reveal essential insights to
optimise the nature-based design,
engineering and management
of the Coastbusters concept.
Monitoring records are used to
continuously observe, evaluate,
maintain and optimise the initial
setup design, ultimately leading
to a resilient nature-based
design. Hence, the current pilot
observations serve as a direct lead
to a blueprint to further upscale and
apply the Coastbusters concept,
not only as a coastal protection
measure but as an integrated
coastal zone management solution
in future business applications.
05
REGREENING
ECOSYSTEMS
NATURAL
CAPITAL


and cycle fresh water, regulate the
climate, prevent erosion and flood
damage, and produce raw materials,
foods and medicines. Most of these
vital ecosystem services cannot be
replaced by human technology.
Therefore, restoring and
rebuilding degraded areas to
recover an ecosystem that has
been disturbed, is essential for

Lake Bardawil

have signed a cooperation agreement
which paves the way for a pioneering
project to restore the ecosystem
of Lake Bardawil and to re-green
the North Sinai Peninsula in Egypt.
DEME is cooperating in a partnership
to help restore the water cycle and
boost fish production at the lake.
04
R A I L
INFRASTRUCTURE
CL I MAT E
AND ENERGY
Rail is the greenest and most energy
efficient way of mass transportation
and is essential to contribute
to a cleaner transport sector.
DEME is playing a role in
contributing to the development of
this sector by its involvement in the
construction of the world’s longest
immersed road and rail tunnel, the

between Denmark and Germany.
It will foster trade and tourism in
an environmentally sustainable
way by reducing travel time and it
will facilitate greener transport by
the use of electric freight trains.
03
  DREDGING & INFRA

ORDERBOOK TURNOVER
EBITDA &
EBITDA MARGIN
2020 2020 2020
1,152
181
2022 2022 20222021 2021 2021
1,478
3061,524
255
3,177
2,833
2,616
(in million euro)
FLEET
UTILISATION RATE
2020 2021 2022
11
41
25
38
38
29
(in weeks)
(in million euro) (in million euro)
Performance
dashboard
15.7%
20.7%
16.7%
CSD
TSHD
DEME ANNUAL REPORT 2022 
Dredging & Infra reported a turnover




In addition to longstanding
maintenance dredging contracts in
Europe including different ports in
Belgium, the segment completed a
maintenance project in South Korea.
Other noteworthy projects were
the successful completion of the

Szczecin fairway in Poland and of the


Large ongoing projects in Infra include
the first phase of the Fehmarnbelt

start-up phase of Port-La Nouvelle
(France), as well the Blankenburg
project and the New Lock Terneuzen in
the Netherlands. In Belgium, DEME is
a member of the consortia responsible
for two contracts for the prestigious






by a high number of vessel dockings
and overhauls, redeployments of
vessels due to the Russia-Ukraine
conflict, inflation, consumables and
commodity price increases. The


damages for the ‘Spartacus’-vessel.

additions include a substantial
contract for dredging and coastal
protection works in Livorno, Italy,
the new container terminal port of




(in million euro)
   
Orderbook 2,615.7 2,833.3 3,176.5
-8%
Turnover 1,524.3 1,478.3 1,151.6
+3%
EBITDA 254.9 305.8 181.3
-17%
EBITDA margin 16.7% 20.7% 15.7%
EBIT 44.9 74.0 -12.1 -39%
EBIT margin 2.9% 5.0% -1.1%
Fleet utilisation rate – TSHD (weeks) 38.3 41.4 37.5
Fleet utilisation rate – CSD (weeks) 29.3 25.3 10.5
PROJECT EXECUTION
IN 2022
  ENVIRONMENTAL

start of environmental
activities

polluted soils and
sediments treated in 2022

soil and sediment
treatment centres

turnover
(2022)
DEME ACTIVITY REPORT 2022 75
DEME Environmental offers
innovative solutions for soil

development, environmental
dredging and sediment
treatment, supported by an

and mobile treatment centres
in Belgium, the Netherlands
and France. Addressing the
problem of polluted soils and
rivers for decades, we apply our
expertise and knowledge to

them a new life and purpose.
DEME’s wide array of soil remediation
treatments includes an innovative soil

we are investing in the capacity of our
Belgian recycling centres, which enables


services combine tailormade
infrastructure and remediation solutions
for the rehabilitation of dykes.
ENVIRONMENTAL
 ANNUAL REPORT 2022 75
76
Caring
for the earth’s
resources

brownfield sites together with other
partners, cleaning and remediating
the soils, and then redeveloping them.
The DEME Environmental team has
turned historically contaminated
sites into sustainable business
parks, industrial estates, multimodal
logistics centres, new city quarters,
bird habitats and recreational areas,

We focus on promoting a sustainable
and circular economy and make it
our mission to clean and reuse as




We are a pioneer of new techniques
such as evidence-based remediation,
whereby each step of the process is
carefully monitored and measured
before the remediation continues.

soil remediation and brownfield
development solutions, DEME provides
environmental dredging and sediment
treatment services. These include
fluvial dredging which has minimal
environmental impact. To support


and sediment treatment centres in
Belgium, the Netherlands and France.
The cleaning and recycling of soils
includes our unique hybrid solution


that are used in household products
and are later found in water, air
and soil. We jointly developed an
innovative soil washing technique
to handle this problem material.
Our cost-efficient and sustainable
technique achieves an impressive

DEME Environmental is proud to be a
pioneer here and this further supports
our sustainability goals to clean and
recycle as much material as possible.


services. We draw on our infra and

have a focus on sustainability. When
carrying out dyke reinforcement
projects, we clean any polluted
soil and then reintroduce it back

DEME deeply values and appreciates the earth’s
resources and, in line with this, one of our core
activities is cleaning polluted soils and breathing
new life into contaminated sites, giving them
a new purpose for the decades to come.
 ENVIRONMENTAL
DEME ANNUAL REPORT 2022 77
DEME was asked to reuse as much
of the material as possible and
this resulted in an innovative,

the local authority are very keen
to promote this new approach for
remediation projects in Scotland.
In line with our own sustainability
goals and those of our clients, there is
certainly a growing trend to take this
pioneering approach. Very much in
contrast to traditional ‘dig and dump’
methods, DEME Environmental is
deploying transparent, evidence-based
remediation, whereby each step of
the process is tightly controlled,
and measurements are performed

Crucially, all of the measurements
are reported and audited, facilitating
full traceability of the process.
Strict quality control


former fuel terminal, sampling every
100 m


have been taken and this represents



FORMER FUEL TERMINAL, SCOTLAND

DEME Environmental is setting new standards as the vast majority of the
material will be cleaned and reused in line with the strict standards of the


Transparent, evidence-based
remediation is deployed,
whereby each step of the
process is tightly controlled.

quality control, each dumper truck is
followed through the complete lifecycle
of its journey. Each machine operator
has a tablet and so far, there have




The Environmental team started


the equipment and preparing the
surfaces for the construction of three


phase then got underway, whereby
the team identifies the polluted
soils, washes and treats them.
Strict ecological measures are also in

close to the River Clyde there is a big

tide is low, birds flock to the mudflats.
Therefore, restricted working times
are in place and the team is careful not
to disturb the breeding season. The
site is also monitored by ecological
specialists and has been designated
a site of archaeological interest.
Work is set to continue in Scotland

the site will be transformed into an
industrial and commercial development
and part of the land is also earmarked
for a new road. The Environmental
team is proud to be solving the problem
for our client, whilst doing so in a

78



The Netherlands vulnerability to climate change and extreme weather events has led the
country to embark on a National Flood Protection Programme, whereby it is investing


resulting from this nationwide plan, and one of these is the Gorinchem-Waardenburg

priority project following emergency dyke reinforcement work which had to take place in
1995 when the dyke was breached.
 ENVIRONMENTAL
DEME ANNUAL REPORT 2022 79

the client Waterschap Rivierenland

reinforcement project in a completely
new contract form in the sector,

awarded to de Vries & Van de Wiel
and its joint venture partners in the

New contract form
The new contract type represents a
different approach to risk sharing,
with contractors involved right from
the beginning. This allows DEME to

contractor from an early stage. The
partners (WSRL and the Waalensemble)

from the planning study, and they are
responsible for surveys, the design,

and the construction, and this is
all combined into one contract.
The Waalensemble consortium

hasn’t stopped since. There was a
high-water event in that summer, but
the team managed very well. Safety
is an absolute priority, and it helps

decision lines, meaning that potential
problems can be solved swiftly.
Safety and sustainability
a key focus


the residents have been kept informed
through bi-monthly meetings and
by the consortium’s stakeholder
managers. Given that at peak times

present, and that people are living on
the dyke, safety is the top concern.
Sustainability is also high on the agenda
and in line with this, de Vries & van
de Wiel has constructed a dedicated
pontoon to replace hundreds of


some sections it is necessary to
reduce the water level, therefore
gullies and holes are dug out. The sand,


, from
these gullies is dredged and loaded
into vessels. These vessels then sail
to the discharge pontoon which loads
the material onto trucks for further
distribution along the dyke. This has
the dual purpose of compensating for
the water level rise and adding to the
dyke reinforcement, while reducing
truck movements dramatically.
Zero-emissions equipment

reinforcement projects, which is in
line with DEME’s mission to work
in a sustainable way, is the move to
work with as much zero-emission
equipment as possible. de Vries &
van de Wiel has commissioned the
conversion of its first electric crane,
which is set to be introduced on the

awarded a so-called DKTI subsidy for an
innovation project related to emission
reductions for heavy-duty equipment.

established the ‘Emission-free network
infra’ (ENI) Foundation. This brings

together with the aim of making it
possible to achieve zero-emissions



The new contract
type represents
a different
approach to risk
sharing, with
contractors
involved right
from the
beginning.

Focus on
sustainability
DEME is playing its role in the move towards a circular economy. Within the


of a circular economy to manage soil, sediments, water and land sustainably,

The Environmental segment
provides sustainable
business solutions such as:

brownfield development

and sediment treatment.
SOIL REMEDIATION
AND BROWNFIELD
DEVELOPMENT
WASTE AND
RESOURCE
MANA
GEMENT
The Environmental segment
provides integrated circular
solutions for soil remediation
and brownfield development:

soils and sediments were
managed and treated at


sites are ready for reuse.

technique has been developed and
is operational at GRC Kallo and can
achieve an impressive cleaning

investments are being made,
together with our industrial partner

to other treatment centres in
Belgium. With the investments,
DEME and Mourik will be able to


01
ENVIRONMENTAL
DREDGING AND
SEDIMENT TREATMENT
WASTE AND
RESOURCE
MANA
GEMENT
Our advanced environmental
dredging techniques enable us
to perform precision dredging,
meaning that any disturbance of the
aquatic environment is kept to an
absolute minimum. If the sediment
is contaminated our specialised
technologies and processes are used

polluted soil, sediment and sludges.
To treat this contaminated soil and
sediments, we now have a network

recycling centres at strategic
locations in Belgium, the Netherlands
and northern France. In addition, we
have also designed and built a number
of mobile soil washing and recycling
systems that can be deployed
at any project site worldwide.
We can demonstrate a

02
 ENVIRONMENTAL
DEME ANNUAL REPORT 2022 

FLEET
UTILISATION RATE
CONTRIBUTED CAPACITY


2018 2020
2,798
2020 2022 20222019 2021 2021
1,867
2,499
49
38
42 42
34
(in weeks) (in XXXXXXXX)
 ENVIRONMENTAL
ORDERBOOK TURNOVER
2020 2020
140
2022 20222021 2021
166
206
190
255
313
(in million euro) (in million euro)
Performance
dashboard
EBITDA &
EBITDA MARGIN
2020
16
20222021
17
25
(in million euro)
11.7%
10.1%
12.1%
DEME ANNUAL REPORT 2022 
The Environmental segment
continued its steady revenue growth


DEME’s Environmental team had
a very busy year with large-scale
projects such as Blue Gate, a huge,
historically polluted brownfield site,


France, Norway and the UK,
including both onsite treatment
solutions and the deployment
of DEME treatment centres.
DEME Environmental is setting new
standards on projects where more


DEME has developed an innovative

has recently boosted its capacity
by making additional investments
in its soil recycling centres.



improvement in profitability is the


management and continuous
investments in people and equipment.
Orderbook for Environmental
continued its growth trajectory
with new contract wins in Norway,
France and follow-on projects in





(in million euro)
   
Orderbook 313.4 255.3 190.1
+23%
Turnover 206.3 166.2 140.0
+24%
EBITDA 25.0 16.8 16.4
+48%
EBITDA margin 12.1% 10.1% 11.7%
EBIT 16.5 8.8 6.8 +87%
EBIT margin 8.0% 5.3% 4.9%
PROJECT EXECUTION
IN 2022

  CONCESSIONS

net result
from associates
in 2022

to source new project
leads and forge successful
partnerships

beneficial
ownership
DEME ANNUAL REPORT 2022 85
DEME Concessions oversees
our broad-ranging and
diverse concessions in
offshore wind, marine
and port infrastructure,
green hydrogen and
mineral harvesting.

enables the company to develop
long-term and lasting partnerships,
create regular activities for the Group
and generate value and recurrent

differ from DEME’s contracting work,
as it invests in, develops, constructs
and operates the concession.
Building on a successful track
record in more traditional markets,
a few years ago, the strategic
decision was taken to also pursue
technically challenging and less mature
markets in offshore energy as well as
in green hydrogen and responsible
deep-sea harvesting. This strategy is
already yielding some impressive wins

CONCESSIONS
 ANNUAL REPORT 2022 85
86
Accelerating the energy
transition in Scotland
with 2 GW of offshore
wind power generation
The team was absolutely delighted
when Thistle Wind Partners (TWP), a
consortium including DEME Concessions
(Wind) NV, was awarded a colossal

ScotWind’s seabed leasing process,

wind and 1 GW of floating wind. Landing

Crown Estate Scotland represented two
years of strenuous effort. These highly
prized agreements are particularly
rewarding for DEME Concessions
as it demonstrates the first fruits
of success of its new strategy.
Fixed and floating wind farms
ScotWind also highlights the advantage
of what can be achieved when the DEME
teams work together. DEME Offshore
and DEME Concessions complement


UK and Scotland are very much the
home of DEME Offshore, which will be
responsible for the BOP EPCI contract,
and where it has a proven track record of


Moray East offshore wind farm, so it
understands the metocean and seabed
conditions well. The Moray East scope
comprised a full EPCI contract and
DEME Offshore managed a staggering

chain from more than 10 countries.
More than doubling
offshore wind portfolio
DEME Concessions, as part of its
consortium Thistle Wind Partners,
was awarded two 1 GW projects,
which more than doubles DEME
Concessions offshore wind portfolio
singlehandedly. Bowdun Offshore Wind




the Orkneys, which is envisaged to be

Both of the leasing areas are defined

conditions and some of the harshest
conditions in the North Sea, and

foundation wind farm is situated

require XXL monopiles, and the floating


the market currently, this concession
represents an immense technical

awarded separately for both sites.
DEME Concessions embarked on a new strategy
three years ago when it took the courageous
decision to also pursue technically challenging
and less mature markets. This strategy has
seen the team hone in on the most ambitious
offshore wind markets in the world today.
 CONCESSIONS
DEME ANNUAL REPORT 2022 87
Accelerating the
energy transition
DEME Concessions and Thistle Wind
Partners are proud to be contributing
to the acceleration of the energy
transition in Scotland. The consortium
intends to work hand in hand with the
Scottish government, as well as with
local communities and businesses.

Offshore as the Tier 1 contractor is
its direct access to local suppliers and
the Concessions and DEME Offshore
teams will work closely together to
further develop the supply chain.
Developing the supply chain
Environmental surveys are well
underway. Currently, aerial surveys
of the two lease areas are being
carried out for two years as part of the

The team is collaborating with the
National Grid which is identifying the
optimum grid connection. Scotland

generated by offshore wind power
and is taking a holistic approach
to the new grid network design.
Local content is a key focus and
the team, which has set up its
headquarters in Edinburgh, is already
participating in a STEM outreach
programme at the University of
Highlands & Islands as an early-stage

Wind Partners is actively engaging in
finding the best offtake solutions.
The team sees this major project as a
big step in the growth of offshore wind
activities within DEME Concessions
and a fantastic platform from which to
increase its strong position in Scotland

ScotWind
highlights
DEME’s extensive
expertise in the
development and
construction of
offshore wind
farms.
88
DEME Concessions, the Port of

Government of Oman have a concession
to develop, operate and manage
the Port of Duqm. The team were
delighted when King Philippe and
Queen Mathilde of Belgium attended
the official opening of the Port of
Duqm in February, and also visited
the HYPORT® Duqm project sites.
DEME Concessions decided to make
the bold move into the fledgling
green hydrogen sector three years

Energy, DEME Concessions kicked
off this first HYPORT® development

naming it HYPORT® Duqm.
Forefront of a new industry
DEME again shows that it is willing to
be at the forefront of a new industry.
This project is also unique because
it encompasses the full value chain,

energy, the production of green
hydrogen in electrolysers and then
the conversion to green ammonia.
DEME’s decision to enter the market
stems from a conviction that green
hydrogen is needed for the world to
achieve its decarbonisation objectives.
Combining hydrogen and ports led to
the HYPORT® concept. Our presence
in the Port of Duqm and Oman’s
strong sun and wind power laid the
foundations of HYPORT® Duqm.
HYPORT® also fits in with the EU’s
REPowerEU strategy announced

increasing demand for renewable
hydrogen, in light of securing energy
supplies. REPowerEU doubled
the EU’s target and now aims to

half of which are from imports.
80-ha site for production plant

have been accomplished. In June,
the HYPORT Coordination Company
finalised a second land reservation

for Special Economic Zones and Free

site for establishing the plant to
produce green hydrogen and convert

This production facility will have
an electrolysis capacity of around


installed capacity from wind turbines
and solar panels established in
Duqm’s renewable energy area, where
HYPORT® Duqm has already been


. This is an
ideal seafront location, with flat land.
HYPORT® Duqm
flagship green hydrogen
plant takes shape

role in the energy transition, HYPORT® Duqm, its
flagship green hydrogen plant in Oman, is taking shape

 CONCESSIONS
DEME ANNUAL REPORT 2022 89
Signing ceremony for a
second land reservation
agreement.
Pictured left to right:
Najla Al Jamali, CEO
OQ Alternative Energy,
H.E. Dr. Ali bin Masoud
Al Sunaidy, Chairman of
the Public Authority for
Special Economic Zones
and Free Zones (OPAZ),
Martin D'Uva, Managing
Director DEME
Concessions, H.E. Eng.
Ahmed bin Hassan Al
Dheeb, Deputy Chairman
of OPAZ.
Technical progress
The team contracted several pre-FEED
studies with shortlisted electrolyser
suppliers (OEMs) who have been
further detailing the systems they
can provide, and ammonia licensors,
who have been studying the ammonia
conversion technology. Negotiations
are also continuing for a long-term
offtake arrangement of the green
ammonia from the Port of Duqm.
The project will comply with regulations
in Europe, although these are not by
any means fully defined as yet, given
that it is such a new industry. For

definitions from the regulatory bodies
about what makes a hydrogen project
truly green. Therefore, the company
has started the process of acquiring
full green certification by initiating its
own self-assessment of the project’s
carbon intensity. However, the team
point out that HYPORT® Duqm is a
true green project because none of
the feedstock has a carbon element,
unlike blue hydrogen projects.

DEME and the famous entrepreneurial
spirit, DEME Concessions is confident
that this first HYPORT® project can
be replicated elsewhere, with the
team evaluating opportunities in
other jurisdictions, whilst keeping an
eye on the potential use of offshore


Exploring the vast
potential of marine
minerals taking a
step-by-step approach
Careful
environmental
monitoring
is integral
to GSR’s
exploration
programme.
 CONCESSIONS
DEME ANNUAL REPORT 2022 

metal-rich, polymetallic nodules located on the deep ocean floor.
Demand for critical metals is forecasted to increase dramatically

increased urbanisation and the clean energy transition.
Today our world is faced with a climate
and biodiversity crises, concurring
with a massive increase in global
population. Decarbonising a rapidly
urbanising planet will require huge
amounts of primary metal. This
transition will add to the carbon
budget and will impact biodiversity.
Different solutions have different
implications. Society needs to confront
this reality so that these metals can
be sourced in the most responsible
way possible, for the benefit of us all.

is taking a cautious, step-by-step
approach and working diligently with
the scientific community and other
stakeholders to study and understand
the baseline environment. This includes
conducting a rigorous environmental
impact assessment, which will enable
the development of responsible
environmental management and
monitoring plans aimed at ensuring the
protection of the marine environment,
as required by international law.




 area
within the Clarion Clipperton Zone

team successfully tested GSR’s
pre-prototype nodule collector,

being independently monitored by
an international team of scientists.
Working closely with the
scientific community

with the European research project
MiningImpact, involving scientists from

understand the environmental effects
of collecting mineral resources from
the seafloor. Careful environmental
monitoring is integral to GSR’s

is to ensure the effects of activities
are understood and can be accurately
predicted and improved upon, in
turn leading to the development
and implementation of appropriate
environmental management strategies.
GSR has pledged that before any
deep seabed harvesting occurs, it
needs to be clearly demonstrated
that these activities can be managed
in a way that ensures the effective
protection of the marine environment.
Initial Results
Environmental monitoring during and


from the seafloor along with the nodules
and the initial form of the sediment
plume was a low-lying turbidity current.


deposited locally or was in suspension

time a clear picture of these sediment
plumes has been established and it
addressed some of the misconceptions
about nodule harvesting.

MiningImpact project returned to the
Patania II trial sites to investigate the
longer-term environmental effects.
Foundation for a
green transition
Separate research into the capacity of
the mining sector to meet future metal
demand concluded that increased

mines will be insufficient to meet
the anticipated demand, meaning
new mines would need to be opened.
These studies and publications are

recognition that metals will be the
foundation for a green transition.

deliver these metals with less harm to
our planet compared to the status quo.
GSR is working with the best scientists
and engineers and our understanding of
our impact is evolving daily. The latest
peer-reviewed science is indicating
that these metals can be delivered with

based alternatives. Indirect impacts

be much lower than anticipated.
GSR firmly believes that if deep-
seabed minerals can be shown to
be one of the more environmentally
and socially responsible options for
meeting mineral demand, then it is an
option that needs to be considered.
However, many years of research lie
ahead before any conclusions can be
drawn and GSR will continue to take
a cautious, step-by-step approach to
project development and research.
GSR’s commitment should be
emphasised: if it transpires that
polymetallic nodules do not offer
a responsible option for sourcing
metals, GSR will not proceed with


Focus on
sustainability

transition, acting as a developer of offshore wind farms and port infrastructure, as well

sea exploratory division of the DEME Group, believes it can increase the sustainable
supply of materials by responsibly harvesting polymetallic modules from the seabed.
Within the Concessions
segment we provide
sustainable business
solutions such as:

and operating offshore
wind farms through
participations

and transport of
green hydrogen

mineral harvesting.
DEVELOPING,
FINANCING AND
OPERATING OFFSHORE
WIND FARMS THROUGH
PARTICIPATIONS
CL I MAT E
AND ENERGY
DEME is a leading pioneer of the
offshore wind industry and has
been active in the sector for more
than two decades. This includes
the successful development of

farm in Belgium, constructed in

Wind and its partners have brought

wind capacity online in Europe.
01
PRODUCTION,
STORAGE AND
TRANSPORT OF
GREEN HYDROGEN
CL I MAT E
AND ENERGY
In order to facilitate the energy
transition and drive the world’s
decarbonisation objectives,
DEME is investing in production
facilities for green hydrogen.
DEME has joined various
multistakeholder partnerships
to drive green hydrogen
solutions forward, both locally
and internationally:
 The Hydrogen Import
Coalition - a collaboration


Bruges and WaterstofNet;

DEME, Bekaert, Colruyt Group,
John Cockerill and the Flemish
research centres imec and VITO
(both partners in EnergyVille);

via commitments to the European


02
 CONCESSIONS
DEME ANNUAL REPORT 2022 
RESPONSIBLE

HARVESTING
WASTE AND
RESOURCE
MANAG
EMENT
In order to cope with the increasing
demand for primary metals there is
a need to increase the sustainable
supply of materials. Global Sea
Mineral Resources (GSR), a signatory
of the UN Global Compact, believes
that the responsible collection
and management of polymetallic
nodules could become an important
source of critical minerals. However,
GSR has pledged that before any
deep-sea mineral harvesting
occurs, it needs to be clearly
demonstrated that these activities
can be managed in a way that
ensures the effective protection
of the marine environment.
GSR is working closely together
with the scientific community.
This includes working with Ghent
University on the environmental
baseline studies and on the
life cycle assessment of metal
commodities obtained from
deep-sea polymetallic nodules.
This resulted in a peer-reviewed

reduction in the carbon footprint
03
when compared to terrestrial sources.

first – independently monitored –
prototype test of a collector vehicle.
From these tests, Massachusetts
Institute of Technology and Scripps
Institution of Oceanography published
a peer-reviewed paper concluding
that the majority of the turbidity


 CONCESSIONS
Performance
dashboard
NET RESULT
FROM ASSOCIATES
9
202220212020
11
21
(in million euro)
BENEFICIAL
OWNERSHIP
2020
144
20222021
144144
(in MW)
DEME ANNUAL REPORT 2022 95
DEME Concessions oversees DEME’s
development activities in offshore
wind, marine infrastructure, green
hydrogen and mineral harvesting.

concession activity delivered a net

to 11.1 million euro a year ago,
mainly due to slightly lower wind
in the offshore concessions.
The segment has economic ownership

offshore concessions in operation,
generating stable recurring income,
while building a pipeline that already

For dredging & infrastructure, the
Concessions segment continued its

of Duqm (Oman) and on advancing
construction of the Blankenburg
Connection (The Netherlands) and
Port-La Nouvelle (France) projects.


a major redevelopment of the port,
including the creation of a strategic hub
for the offshore wind industry. DEME

for ports and other concessions,

The Concessions segment continued
to advance its long-term green
hydrogen development initiatives
including DEME’s HYPORT® concept
in Oman, DEME’s flagship production





addition, DEME Concessions is
participating in the HYVE consortium
which aims to provide cost-efficient
and sustainable technology to
produce green hydrogen.
The Concessions segment also
continued to work on the Global Sea
Mineral Resources (GSR) initiative,
which is helping to tackle the
scarcity of our planet’s resources
and is continuing its research into


deep ocean floor. More recently,

announced a strategic cooperation
with Transocean Ltd. (NYSE: RIG)
whereby Transocean contributes
an ultra-deepwater drilling vessel


(in million euro)
   
Net result from associates 9.3 11.1 21.3
-16%
PROJECT EXECUTION
IN 2022
CORPORATE
GOVERNANCE
AND RISK
04
CHAPTER
DEME Environmental strives
for an innovative and sustainable
approach to environmental issues.
This creates an inspiring and
motivating work environment
of like-minded people, which
is a joy to be part of.
ROBIN HERWEYERS
|

98
 CORPORATE GOVERNANCE
Pursuant to the Royal Decree

obligations of issuers of financial
instruments admitted to trading
on a Belgian regulated market,
DEME Group NV is required to
publish its annual financial report.
This report contains:

consolidated annual report of
the Board of Directors prepared

last paragraph of the Code of


statutory annual accounts
prepared in accordance with



consolidated annual accounts.
The full version of the statutory
annual accounts is being deposited
with the National Bank of Belgium,

of the Code of Companies and

report of the Board of Directors and
the audit report. For the auditor’s
approval regarding the statutory
and consolidated annual accounts
we refer to the assurance report in


of the Royal Decree of November

and E. Verbraecken (CFO) declare
that, to their knowledge:

contained in this report, which
have been prepared in accordance
with the applicable standards for
annual accounts, give a true and
fair view of the assets, financial
situation and the results of DEME
Group NV and the companies
included in the consolidation;

give a true overview of the
development and the results of
the company and of the position of
DEME Group NV and the companies
included in the consolidation, as
well as a description of the main
risks and uncertainties with
which they are confronted.
The annual report, the full versions
of the statutory and consolidated
annual acccounts, as well as the
audit reports regarding said annual
accounts are available on the website
(www.deme-group.com) and may be
obtained upon simple request, without
charge, at the following address:



investor.relations@deme-group.com
DEME Group NV applies the Belgian
Corporate Governance Code
(the 'Code') as its reference code.
The Code can be consulted on
the website of the Corporate
Governance Committee (www.
corporategovernancecommittee.
be) and is based on a ‘comply or

published a third version of the




Directors adopted the first Corporate
Governance Charter (the 'Charter').
The Charter has not been amended
since. The Charter is available in
two languages (Dutch and English)
on the company website
(www.deme-group.com/governance).
This chapter (‘Corporate governance
statement’) contains the information



In accordance with the Code, this
chapter specifically focuses on factual
information involving corporate

any derogations from certain
provisions of the Code during the
past financial year in accordance with

DEME Group NV’s governance
structure is one-tier, operating
pursuant to the Company’s articles

Corporate
governance



DEME ANNUAL REPORT 2022 99

Expiry date of term of
office at end of annual
general meeting held in
Chairman Luc Bertrand 2026
Directors John-Eric Bertrand 2026
Luc Vandenbulcke 2026
Tom Bamelis 2026
Piet Dejonghe 2026
Koen Janssen 2026
Christian Labeyrie 2026
Leen Geirnaerdt
1
2026
Kerstin Konradsson
1
2026
Company Secretary Sofie Verlinden
1


COMPOSITION
Corporate
structure
LUC BERTRAND

Chairman of the Board of Directors
Non-executive Director



He began his career at Bankers Trust, as Vice-President and
Regional Sales Manager, Northern Europe. He has been with




SIPEF (prior to the partial demerger, he was also chairman
of the board of directors of DEME NV) and a director of

Verdant Bioscience. He is also chairman of the Duve Institute
and Middelheim Promoters, member of a number of other
boards of directors of non-profit associations and public
institutions, such as Museum Mayer van den Bergh and
Europalia and member of the board of trustees of Guberna.
LUC VANDENBULCKE

CEO
Executive Director




Maritime Engineer at the Polytechnic University of Catalonia

Engineer for Hydro Soil Services, part of DEME. In subsequent
positions, Luc Vandenbulcke has worked on projects in
various European countries. He is the founder and was the
CEO of GeoSea NV (currently known as DEME Offshore
Holding NV), a fast-growing entity within the DEME Group
which is a pioneer in the construction of offshore wind farms.

became CEO of DEME NV.
 CORPORATE STRUCTURE
DEME ANNUAL REPORT 2022 
PIET DEJONGHE

Non-executive Director



Dejonghe obtained a postgraduate degree in management


and as a consultant for Boston Consulting Group. He joined

is a member of the Board of Directors of CFE, Delen Private

KOEN JANSSEN

Non-executive Director








a member of the Board of Directors of CFE, Green



Non-executive Director


& van Haaren. Following his studies as a commercial engineer


( 
consultant and at Deloitte as senior auditor and joined

He is member of the Board of Directors of Sagar Cements,

TOM BAMELIS

Non-executive Director








the Board of Directors of Delen Private Bank, SIPEF, Turbo’s
Hoet Group, Van Moer Logistics and EMG among others.

CHRISTIAN LABEYRIE

Non-executive Director

Board of Directors of DEME Group


and Chief Financial Officer of the VINCI

Committee. Before joining VINCI in

Rhône-Poulenc and Schlumberger
groups. He began his career in the
banking industry. Christian Labeyrie
is a graduate of HEC, the Escuela

Empresas (Barcelona) and McGill
University (Canada), and holds a
DECS diploma (advanced accounting
degree). He is a Chevalier of the Légion
d’Honneur and a Chevalier of the
Ordre National du Mérite. Mandates
held: a. Listed companies: - member

VINCI Group b. Non-listed companies:
member of the supervisory board
of VINCI Deutschland – director of

Stade de France – director of VFI –



Servicios - director of Renewable
Projects Manegement Ventures

LES GROUES – manager of SCCV
HEBERT-LES GROUES – permanent
representative of VINCI Innovation

LEEN GEIRNAERDT


Independent Director
Is an independent Director of the
Board of Directors of DEME Group

studying applied economic science at

began her professional career at
PricewaterhouseCoopers (PwC), where

She then moved on to Solvus Resource
Group, a Belgian listed company where
she held the position of corporate

Group was taken over by the Dutch
listed company USG People NV, Leen
Geirnaerdt was appointed director of
the Belgian Shared Services Center, and

Officer in the Netherlands. Following
the takeover by the Japanese group
Recruit, she was appointed global CFO


Leen Geirnaerdt was CFO of Bpost.
She was also director, chair of the risk
committee and member of the audit
committee of Bpost bank from March

Geirnaerdt is currently a member of
the Board of Directors of H.Essers.
KERSTIN KONRADSSON

Independent Director
Is an independent Director of the
Board of Directors of DEME Group

Konradsson holds a Master in
Metallurgy from the Royal Institute
of Technology, where she graduated in


where she held various management
positions before she moved on to


became President for Boliden Smelters,
a Swedish producer of base metals.
She has served a board member and
member of the audit committee of
the privately owned Swedish metal


member of Sibelco NV and since



she is a member of the remuneration
committee and in Sibelco also chair
of the sustainability committee.
 CORPORATE STRUCTURE
DEME ANNUAL REPORT 2022 
CHANGES TO
THE COMPOSITION
All of the current Directors have
been nominated as from the date of

the occasion of the extraordinary

2022. However, the mandates of
the two independent Directors only
became effective as of the listing


CODE OF CONDUCT
REGARDING CONFLICTS
OF INTEREST

the Board of Directors published
its policy regarding transactions
between DEME Group NV or a
company affiliated to it on the
one hand, and members of the

Committee (or their close relatives)
on the other, which may give rise
to a conflict of interest (within the
meaning of the Code of Companies


to which this policy applied.
CODE OF CONDUCT
REGARDING FINANCIAL
TRANSACTIONS
The Board of Directors published
its policy on the prevention of
market abuse in the Charter

aligned with Regulation (EU)

Parliament and of the Council

abuse and repealing Directive

Parliament and of the Council and


ACTIVITY REPORT
Attendance
1
Luc Bertrand 5
John-Eric Bertrand 5
Luc Vandenbulcke 5
Tom Bamelis 5
Piet Dejonghe 5
Koen Janssen 5
Christian Labeyrie 5
Leen Geirnaerdt 3
Kerstin Konradsson 2
MEETINGS
5
ATTENDANCE
%

times. The Board of Directors considered all major issues concerning DEME Group.
In particular, the Board of Directors:






the recommendations of its advisory committees.

on the segments’ strategies for the short to mid-term, and discussed and decided
upon the growth initiatives for DEME Group.

out periodically within the Board of Directors . These assessments take place on the
initiative and under the supervision of the chairman.
For the sake of completeness, it should be mentioned that the members of the

Officer attend the meetings of the Board of Directors.
1




CEO Luc Vandenbulcke Executive Director
Other members Hugo Bouvy Managing Director – Offshore Energy
Eric Tancré Managing Director – Dredging / Managing Director – Infra
Els Verbraecken Chief Financial Officer
LUC VANDENBULCKE

CEO
Executive Director


a Master after Master as a Maritime Engineer at the
Polytechnic University of Catalonia in Barcelona, Spain. He

Soil Services, part of DEME. In subsequent positions, Luc
Vandenbulcke has worked on projects in various European
countries. He is the founder and was the CEO of GeoSea NV
(currently known as DEME Offshore Holding NV), a fast-
growing entity within the DEME Group which is a pioneer





ERIC TANCRÉ

Managing Director – Dredging
Managing Director – Infra
Eric Tancré graduated magna cum laude as a Civil Engineer in

briefly an assistant professor at the same university before



for Dredging International NV where he had commercial








HUGO BOUVY

Managing Director –
Offshore energy
Hugo Bouvy graduated as a Civil Engineer at the
Technical University of Delft, where he also obtained
a degree in Offshore Engineering. He began his career
as an Installation and Project Engineer at various

Manager for the DEME dredging activity line in the

became a member of the DEME Management Team and





ELS VERBRAECKEN

CFO
Els Verbraecken obtained her degree in Commercial


studies, she was an assistant at the Institute of European


management. She also developed financial networks in

the Seghers Better Technology group for about one year,

She has not only been managing project risks, but also
been drawing up financial plans and financing structures
for the many global projects of the DEME Group. She has





COMPOSITION
 CORPORATE STRUCTURE
DEME ANNUAL REPORT 2022 

CEO Luc Vandenbulcke Executive Director
Other members  General Manager Offshore Energy
Steven Bouckaert General Manager Concessions
Hugo Bouvy Managing Director Offshore Energy
Hans Casier Chief Human Resources Officer
Dirk Defloor Area Director Benelux
Bart De Poorter General Manager Offshore Energy
Martin D'Uva Managing Director Concessions
Christopher Iwens Managing Director Dredging
Amedeo Peyron Area Director Middle East
Dirk Poppe Area Director Asia Pacific, Managing Director Environmental
Steven Poppe Area Director Africa & Americas
Ronny Simons General Manager Infra
Eric Tancré Managing Director Dredging, Managing Director Infra
Koen Vanderbeke Strategic Operations Director
Kristof Van Loon General Manager Concessions
Bart Verboomen Managing Director Technical Department
Els Verbraecken Chief Financial Officer
Sofie Verlinden Chief Legal Officer
CHANGES TO
THE EXECUTIVE
COMMITTEE
Each of the members of the
Executive Committee was
nominated by the Board of



who was also appointed on

from the Executive Committee

ACTIVITY REPORT

of Directors). It is responsible for discussing the general management of the Company


In its duty to steer the strategy and the day-to-day management of the company,





Chairman Tom Bamelis Non-executive Director
Leen Geirnaerdt Independent Director
Christian Labeyrie Non-executive Director
Koen Janssen Non-executive Director
COMPOSITION
ACTIVITY REPORT
Attendance
Tom Bamelis 4
Koen Janssen 4
Christian Labeyrie 3
Leen Geirnaerdt 2
MEETINGS


ATTENDANCE
%



each meeting to the Board of Directors.
The CFO and the Group Finance Managers attended all
regular meetings. Depending on the agenda and when
appropriate other representatives of DEME participated to
the meetings, including members of DEME’s Management
Team, the Group’s internal auditor, the Group’s investor


the committee received the available and respective financial
reports.
The overview below indicates a number of matters that were



the half-yearly financial statements as well
as the third quarter trading update.

risks and compliance with accounting standards.
Compliance with statutory and legal requirements
and regulations, particularly in the financial
domain, was also reviewed. Important findings,
DEME’s major areas of risk, follow-up actions and


judgements and uncertainties, including impact
of the macro-economic environment.

indicators, reviewed the impairment tests
performed, financial impact of strategic
investments and risk management.


audit plan, audit scope, as well as the staffing,
independence and organisational structure of the

appropriateness of internal control policies and internal
audit programs and their findings were discussed.

reviewed the proposed audit scope, approach and


in conformity with DEME’s non-audit fee policy.

auditor in which the auditor set forth its findings
and attention points during the relevant period. The
Committee assessed the overall performance of the






 CORPORATE STRUCTURE
DEME ANNUAL REPORT 2022 

Chairman Luc Bertrand Non-executive Director
Leen Geirnaerdt Independent Director
Kerstin Konradsson Independent Director
COMPOSITION



DEME Group is convinced of the positive influence of
diversity-based human resources and employment policies

attraction, development and career counselling of talented
staff as a priority. The composition of our Board of Directors

in terms of professional background, skills and gender.


also ensure that the members have diverse professional
backgrounds with complementary skills. It is the aim of the
Board of Directors that the long-term vision of the DEME

the values of the company and, in this sense, contribute to
value creation. This translates, among other aspects, into a
preference for providing talented staff members with career


from within the DEME Group based on their personal merits.
Finally, DEME has ongoing investments in training,
development, career counselling and the retention of
staff members. This is done through a combination
of broadening and deepening knowledge through
training programs, seminars and workshops, career
perspectives within the DEME Group, and through a
market-compliant and competitive remuneration policy.
For further information regarding the personnel policy,
reference is made to the Sustainability Report.


with the provisions of the Code (as it applied

 of the Code requiring that at least
three Directors should qualify as independent
according to the criteria described in the Code. The
Company has not yet found and is still in the process
of looking for the appropriate candidate to fill in
this third mandate of Independent Director.
Provision 4.19 of the Code, requiring the Board of
Directors to set up a nomination committee with the
majority of its members comprising independent

Directors as a whole performs the function of the
nomination committee at DEME Group NV.
Provision 5.2 of the Code, requiring that the nomination
committee should lead the nomination process and
recommend suitable candidates to the Board of Directors.
Given the importance of (re)appointment processes for
the Company, the Board of Directors currently deems it
appropriate to fulfil the role of the nomination committee
itself and in this way, as a collegiate body, to lead such
processes and to be fully involved in the preparation
of any recommendations or proposals in this regard.






Shareholders can normally attend the meeting in person,



Charter, the role of the Nomination Committee
was assumed by DEME’s Board of Directors.


composition mentioned in this chapter, no major
discussion points are to be reported within this domain.

DEME share





nd
half of September, the share dipped in-line with the market - but had a solid run over the months October,



Share capital (in euro) 33,193,861.28
Total number of securities carrying voting rights 25,314,482
Total number of voting rights 25,314,482


 DEME SHARE
DEME ANNUAL REPORT 2022 



participate equally in the Company’s profits (if any).
The Company has not declared or paid dividends on its
Shares in the past. Subject to the Company’s earnings,
financial condition, capital requirements and other factors
considered important by the Board of Directors, the
availability of distributable reserves and the approval by
the shareholders’ meeting, the Company intends to declare
and distribute an annual non-cumulative dividend to its

the Group’s net profit. There can be no assurance as to
whether dividends or similar payments will be paid out
in the future nor, if they are paid, as to their amount.
The dividend is set by the Board of Directors and

of shareholders at the end of each fiscal year.

DEME’s Board of Directors will propose to the






per December 31, 2022
Shareholder Number of Shares Shares % (rounded)
Ackermans & van Haaren NV 15,725,684 62.12%
VINCI Construction SAS 3,066,460 12.11%




  
 
 
 
1
 Record date
1
  Dividend Payment date
1
  
 



of co-workers: staff, (on board)
crew and blue-collar workers.
For all its staff positions, employed
with a permanent or temporary
employment agreement – including


uses a job evaluation methodology
providing a job family and job level
structure underpinning internal
career development and progression,
which includes market benchmarking
of pay levels and components.
For crew and blue-collar workers
DEME’s pay practices reflect applicable
(inter)national, regional and/or
sector (collective) agreements.
The remuneration levels of DEME’s

benchmarked against a peer group

Industrial sector, containing data
on the most relevant talent pool for


industrial sector, with equivalent

In close consultation with DEME’s
Remuneration Committee, in the

level and benchmarking update
will underpin a review of the
remuneration components, weights
and levels of DEME’s statutory

while transitioning towards a more
appropriate self-employed status.


Committee members consist of:

responsibilities, job characteristics,

reflect agreed contractual terms
and conditions and evolve per
annual pay review processes
including inflation mechanism and
individual merit, within budgets
agreed with the Remuneration
Committee and approved by
DEME’s Board of Directors.

bonus) reflecting performance
and contribution for which the
portion of the capped annual bonus
budget is determined by DEME’s
annual company performance
on a set of safety and financial
key performance indicators,
as approved by DEME’s Board
of Directors: Lost time injury

Net Profit and Debt Rate.

reflecting prevailing country/
market practices. Typically,
these programmes include a
defined contribution pension
plan, a hospitalisation insurance
and a disability and death-
in-service insurance.

reflecting prevailing country/
market practices, mainly including
provision of a company car.

term incentive component,


Remuneration report



country remuneration frameworks and prevailing market practices.
 REMUNERATION REPORT
DEME ANNUAL REPORT 2022 
Annual Fee Attendance Fee
International
Travel Expenses
Chairman of the Board of Directors 100,000 2,500 -
Non-Executive Director 50,000 2,500 -
Independent Director 50,000 2,500 2,500
BOARD OF DIRECTORS
Annual Fee Attendance Fee
International
Travel Expenses
Chairman of the Audit Committee 10,000 2,500 -
Member of the Audit Committee 7,500 2,500 -
AUDIT COMMITTEE
Annual Fee Attendance Fee
International
Travel Expenses
Chairman of the Remuneration Committee 7,500 2,500 -
Member of the Remuneration Committee 5,000 2,500 -
REMUNERATION COMMITTEE


attended and international travel cost coverage as applicable. This structure is also applicable






(in euro)
Annual Fee
Attendance Fee &
International Travel Expenses
Chairman of the Board of Directors Luc Bertrand 50,000 10,000
Non-Executive Director John-Eric Bertrand 25,000 10,000
Non-Executive Director Tom Bamelis 25,000 10,000
Non-Executive Director Piet Dejonghe 25,000 10,000
Non-Executive Director Koen Janssen 25,000 10,000
Non-Executive Director Christian Labeyrie 25,000 10,000
Executive Director Luc Vandenbulcke - -
Independent Director Leen Geirnaerdt 25,000 7,500
Independent Director Kerstin Konradsson 25,000 10,000
BOARD OF DIRECTORS
(in euro)
Annual Fee
Attendance Fee &
International Travel expenses
Chairman of the Audit Committee Tom Bamelis 5,000 10,000
Member of the Audit Committee Koen Janssen 3,750 10,000
Member of the Audit Committee Christian Labeyrie 3,750 7,500
Member of the Audit Committee Leen Geirnaerdt 3,750 5,000
AUDIT COMMITTEE
(in euro)
Annual Fee
Attendance Fee &
International Travel expenses
Chairman of the Remuneration Committee Luc Bertrand 3,750 -
Member of the Remuneration Committee Leen Geirnaerdt 2,500 -
Member of the Remuneration Committee Kerstin Konradsson 2,500 -
REMUNERATION COMMITTEE

 REMUNERATION REPORT
DEME ANNUAL REPORT 2022 




guidelines discussed and agreed with DEME’s Remuneration Committee and Board of Directors as appropriate.
The short term variable remuneration for the current year is the bonus paid (end of the first quarter or early in the second
quarter) for the results of the previous year.
(in thousand of euro)
 
Annual salary 343 330
Short-term variable remuneration 1,454 1,194
Long-term variable remuneration - -
Group Insurance/Pension (Plan) contributions 62 50
Other Benefits 3 3
Total 1,862 1,576
(in thousand of euro)
 
Fixed annual remuneration 1,260 1,197
Short-term variable remuneration 3,937 2,984
Long-term variable remuneration - -
Group Insurance/Pension (Plan) contributions 463 383
Other benefits 17 18
Total 5,676 4,581




 RISK REPORT
Risk management &
control processes
Internal control can be defined as a
system developed and implemented
by management, which contributes
to managing the activities of the
Group, the overall functioning and
the proper use of its assets, aligned
with the Group’s objectives and



Committee and all employees
with managerial responsibilities
are responsible for mitigating and
controlling the risks of the Group.
DEME’s control environment, which
consists of policies, procedures
and departments that ensure the
internal controls work effectively,
is outlined in this chapter.

ENVIRONMENT
Ethics and compliance
DEME is committed to responsible
business practices and has formulated
internal policy with the objective to

and zero tolerance with regard to
corruption. DEME’s Code of Ethics
and Business Integrity puts the core
values into practice and provides
guidance to all its employees worldwide
about making sound ethical business
decisions by inspiring dialogues
about ethics and compliance issues.
The principles of DEME’s Code of Ethics
and Business Integrity are both simple
and clear: comply at all times with the
applicable laws and regulations, act
with integrity and honesty, and avoid
inappropriate behaviour or even the
appearance thereof. It is the personal
responsibility and obligation of every
employee to adhere to these principles.

party it conducts business with to
respect and act according to DEME’s
core values and ethical principles.
DEME’s Code of Ethics and Business
Integrity covers important areas,
such as protecting people and
company assets, anti-bribery
and anti-corruption, compliance
with international trade laws, and
accounting standards and records.

prioritisation of risks followed by a structured and continuous
process to minimise, monitor, and control the probability or
impact of unforseen events or to maximise the realisation of


DEME ANNUAL REPORT 2022 
In addition to its Code of Ethics and
Business Integrity, DEME has set up a
comprehensive corporate compliance
programme that includes, among other
things, a detailed anti-corruption
policy. This anti-corruption policy is an
integral part of the annual awareness
programme for all employees. The
procedures to implement this policy

particular, the selection process of
third parties for provision of services,
partnering agreements, etc. was fine-
tuned on the basis of a new risk analysis.
The digitalisation of this selection

DEME has a payment factory,
allowing payments of different
entities (if technically and legally
possible) to pass through one single

screening tool on outgoing payments
is used that prevents payments
being made to beneficiaries that
are subject to sanctions.
DEME’s Compliance Department sees
to the preparation, implementation,
follow-up and improvement of
all advice, procedures, codes,
investigations, analyses and education
that contribute to the control of
the compliance risk. It also develops
and provides the compliance
training in the organisation.
Systems, policies
and procedures
DEME has a set of systems, policies and
procedures that provide the foundation
of its internal control environment. It
governs transactions which are being
processed on a day-to-day basis.
Most of DEME’s subsidiaries use
the same ERP, namely Microsoft
Dynamics. This system is centrally
driven and designed for all master
data and for all integrated controls,
ensuring the uniform processing of
all data within the Group. In the area
of digitisation, DEME forges ahead
with automatic data recognition
and e-invoicing. DEME also set-up
a payment factory, a platform to

receive bank statements, both in
a centralised way. The payment
factory is linked to a sanctions
screening tool, hence outgoing
payments are checked on sanctions
before the disbursement is made.
The reporting system, a tailor-
made multidimensional database,
is integrated in the transaction
systems and is fed live. The
consolidated financial statements
and the management reports are
also automatically linked, allowing
perfect consistency between the
different reports. Uniformity of
reporting is a priority for DEME.
Clear reporting instructions with
timely communication of deadlines,
standardised reporting formats
and uniform accounting principles

active in different segments and
located across the world use the same
methodology, namely DEME’s Project

details, among others, accounting
policies and procedures, analytical
coding and statutory reporting.

incoming as well as outgoing
guarantees, are an important measure

project, DEME seeks a security that it
will get paid in case the client is unable
to fulfil its obligations. By the same
token, DEME’s suppliers are seeking a
similar guarantee from DEME. In order
to manage this, the structured finance
department operates a system which
logs and keeps track of all securities
such as guarantees, letters of credit,
surety bonds, comfort letters etc.
In order to define the approval

commitments made by the Group

approval of outgoing purchase orders,
approval of incoming subcontracts,

agreements, approval of invoices, etc.),
DEME developed an application which
can be consulted by all employees.
The power as to whether someone
can sign on behalf of DEME, is based
upon several objective criteria,
resulting in a limited list of employees
who are granted a signing authority
up to a certain monetary limit.
Finally, various controls are built
into the financial reporting process.

segregation of duties and delegation of
powers are built into the procurement,
payment and payroll cycles. This
aims to ensure that only permissible
transactions are processed and paid.

with the necessary back-up
systems guarantees an adequate
communication of information.
Governance structure
We refer to our Corporate
Governance Chapter and DEME's
Corporate Governance Code on
DEME's investor portal for more
information on how risks are
integrated and managed as part of
its corporate governance practice.
Training
Within the first nine months of joining
DEME, employees are submerged in
the company’s culture through the

gives an overview of the DEME
organisation. This three-day training
touches upon the topics important
for the organisation’s success, such
as innovation, business models,
emerging technologies and project
management, as well as DEME’s

financial and legal structure. It is the
start of every employee’s training
trajectory, regardless of their function
within the company. Some training
courses are a one-off, while others
need to be renewed periodically. The
DEME’s Code of Ethics and Business
Integrity Compliance Training is a yearly
mandatory training applicable to all
DEME’s employees. Targeted courses

scenario-based training in which twelve
scenarios were presented to all finance
staff to assist in the understanding
of DEME’s financial procedures.
Opportunity and risk
management
DEME has an Opportunity and Risk
Management (ORM) department
with the objective of detecting
opportunities and risks timely. To do
this, DEME brings the right people
together at the right time using a
uniform approach and a structured tool
for analysing, prioritising and visualising
ORM. In doing that, it focuses on the
drivers to reach project success namely
cost, time and project quality. The
outcome results in a tighter focus on
the management of opportunities and
actions on risks to be implemented.
DEME uses the ORM system for the
proper identification, assessment and
management of risks and opportunities
with respect to tendering, preparation

of detailed and interactive ORM
dashboards, all the opportunities
and risks are continuously
monitored so that decisions and
necessary actions can be taken.
Enterprise security
To mitigate any risks of malicious origin,
DEME appointed an Enterprise Security
Officer (ESO), who reports to the CEO

and which has the mission to advise
and assist DEME’s management in
protecting the assets of the Group
against all risks of malicious origin.
In its role, ESO provides the
management with periodic updates
on the security risk landscape and
performs security risk assessments.

potential threats to the security of
staff and property. Furthermore,
the ESO designs and coordinates
the implementation of both security
procedures and systems in DEME’s
worldwide offices and at project

the officer verifies compliance
with procedures and coordinates
emergency situations when necessary.
Quality, Health, Safety and
Environment (QHSE)
The QHSE slogan is ‘Zero accidents
and zero environmental incidents’,
articulating the ambition of the target
of the organisation. The Company’s
priority is and remains the well-being
of the employees and subcontractors
by creating a high-quality, healthy, safe
and eco-friendly work environment.
QHSE is always a topic on the agenda
of DEME’s Management Team,


from that, each employee has a ‘Stop

obligation to stop any activity that is
deemed to involve unacceptable risks.
Key Performance Indicators (KPIs)
are in place at all levels of the
organisation to follow up on QHSE
performance: segments, business
units, projects, sites and vessels.
The QHSE KPIs include both leading
ones such as Green Initiatives, timely

etc. as well as lagging indicators
such as the safety thermometer.
Internal audit



reasons, functionally reports to the

provides independent and objective
assurance on the risk management,
governance, business and internal
control processes, by bringing a
systematic approach to evaluate and
improve processes and conducting
internal audits and advisory activities.
The internal audit activities are based
on a risk-based annual plan, which is

During such internal audit, the correct

policies, procedures and controls is

internal audit report is generated
and shared with the relevant internal


audit department also monitors

It periodically interacts with the
statutory auditors to communicate
the audit planning and progress and to
share key findings and observations.
The advisory services are based on


may not compromise the departments'
independence & objectivity. The
services include holding regular

line of defense on risk management,
performing lessons learned analysis
and holding awareness campaigns.
 RISK REPORT
DEME ANNUAL REPORT 2022 

MANAGEMENT
Conducting business entails assuming
risks. It is important that the company
has visibility on these risks in order to
balance these with opportunities and
control activities. Therefore, DEME
performs risk assessments at various
stages and levels in the organisation.
Every proposal in which DEME
participates is categorised (depending
on the degree of risk management). The
category is based on, among others,
the segment and the total value of the
project. Some categories only require


documentation, review meetings
and input from various corporate
supporting departments such as legal,
insurance and compliance before any
involvement of DEME in a tender.
Once the proposal has been awarded

management team performs, at
least quarterly but more frequently
if needed, an opportunity and risk


project manager/director, the finance
responsible, etc.) and high risks are
communicated upwards, including up
to the CEO depending on the gravity.

integrated risk assessment considering
hazards related to people, assets,
environment, quality and reputation.

techniques and high-risk tasks have
been selected, depending on the
scope of work. Each segment has
a process owner responsible for
setting up and maintaining a generic
risk assessment which is updated
through a formal yearly review and
as a result of incidents, inspections,
audits and project feedback.
The ESO department identifies the
necessary organisational, technological
and physical security measures
required for the different asset
categories such as sites, buildings
and vessels. Upon this analysis the
ESO will mitigate material risks
or respond to specific threats.

The most important strategic,
operational and financial risks DEME
can encounter are described below.
The order in which the subsequent risk
factors are presented is not necessarily
an indication of the likelihood of the
risks actually materialising, of the
potential significance of the risks or of
the scope of any potential harm to the
Group’s results, operations, financial
condition or prospects.
The list of risks described hereafter

upon the information known at the
time of preparing this report. It is

that are currently unknown, cannot be
foreseen, are considered as remote or
are not significant for the Group, its




INDUSTRY AND MARKET RELATED RISKS
  
MACROECONOMIC DEVELOPMENTS
DEME is a worldwide player and consequently
vulnerable to developments that may
arise on the macroeconomic level.
Our activities are primarily driven by the
growth of the global population, particularly
the trend to live near the coast and along
major rivers, the growth of the global economy
and the need for suitable infrastructure
to accommodate this (for example port
extensions and maritime access routes).
Additionally, the increasing demand for
energy and the transition to renewable
energy and climate neutrality, the scarcity
of minerals and raw materials, and the
development of international trade
and shipping, are other key drivers.
An important factor for our dredging
business is the ever-increasing size of
tankers and containerships. This has led
to more investment in deepening and
widening access channels and berths.
Part of the demand for DEME’s services
typically reflects changes in the economic
growth rates of the region in which it is active.
This demand is also dependent on
developments in the various industries
we serve such as new infrastructure
related to the energy transition.
In addition, a considerable portion of DEME’s
activities are driven by governmental
policies and public spending.
Therefore, DEME is particularly exposed to the
level of economic activity and susceptible to
changes in the external economic conditions
in each of the markets in which it is active.
Through geographical diversification,
a qualitative client portfolio and a vast
network built up over decades, DEME
tries to secure business continuity.
However, given the complexity and
diversity of our activities worldwide, it is
not possible to fully anticipate every major
change in the market conditions and the
impact these could have on our business.
GEOPOLITICAL DEVELOPMENTS
Given the global footprint of DEME’s
operations, we are sometimes exposed
to elevated risks relating to political and/
or social instability (including war, civil
unrest, armed conflict, terrorism, hostage
taking, piracy, extortion and sabotage).
The occurrence, continuation or aggravation
of any such events or circumstances could
materially adversely disrupt DEME’s
operations or otherwise affect its business,
personnel, equipment and vessels.
DEME aims to mitigate these risks by
constantly monitoring the situation and
security in those politically unstable areas
where projects are being performed and
by arranging suitable insurance cover.
Protectionism is alleviated when and where
possible by means of local partnerships.
Moreover, DEME may, should the need
arise, suspend a project in order to bring its
personnel, equipment and vessels to safety.
DEME’s assets (primarily its vessels) can also be
swiftly rerouted to an alternative, safe location.
CAPITAL INTENSIVE NATURE OF INDUSTRY
The capital-intensive nature of the
industry in which DEME is active calls
for major investments (specifically
in dredging and offshore vessels but
also in concession activities).
Investment projects in the industry are
often highly complex from both the
technical and financial points of view.
Furthermore, there is a long period of time
between the moment that the decision
to invest is taken and the mobilisation
of the financing and the moment that
the new vessel is delivered. This can
give rise to lost opportunities or under-
utilisation should the market conditions
have changed in the meantime.
In the same spirit, concession activities and
project development may also be subject
to uncertainty as to whether the necessary
financing for the new project will be obtained.
To remain competitive, DEME invests
in new vessels and develops, finances
and implements new technologies.
During the construction of new vessels for
our Dredging and Offshore segments we work
closely with the shipyard to make sure we
maintain a tight control of the costs involved.
 RISK REPORT
DEME ANNUAL REPORT 2022 
  
CAPITAL INTENSIVE NATURE OF INDUSTRY continued
The expansion and development of
DEME’s business can require additional
capital, which it may obtain through
debt and/or equity financing to fund
its future capital expenditures.
Additional debt financing, if obtained,
may expose DEME to additional covenants
imposed by financial institutions or lenders.
As a result of the capital-intensive nature of
the industry, DEME has had and may continue
to have a significant amount of borrowings,
but these are always closely monitored by the
management and the Board of Directors.
Specific characteristics of DEME's vessels and
other equipment, and the limited number of
players in the global markets in which DEME is
active (e.g. dredging, offshore wind, etc.) could
have a negative impact on the valuation of
these assets in the event they would be sold.
A negative impact on the fair value valuation
of the fleet and other equipment can give
rise to a lower value, and as such, impact
the financial statements of the Group.
The value of the fleet is continuously
monitored by DEME's technical department
using internal and external information (e.g.
insurance reports, valuation reports,…). At
every reporting date, the fair value of the
fleet is compared with the book value and if
necessary an impairment will be recorded.
COMPETITION
The sectors in which DEME operates
are highly competitive, and DEME faces
competition from other local and international
market players active in those sectors.
Competitive factors include price,
service quality, scope of activities (incl.
geographically), reputation, experience
and environmental impact by other
market players, as well as the availability
of favourable payment and credit terms.
The dredging industry is cyclical in nature
(in terms of capital dredging works, as
opposed to maintenance works), and price
pressures are indeed being witnessed,
in particular during low cycles.
As fleet utilisation is important, some of
DEME’s competitors may adopt a strategy
of tendering for projects at lower prices.
This aggressive pricing could result in
DEME also having to lower its price or
improve credit terms significantly in order
to secure projects, thereby reducing its
gross profit margins and cash flow.
The capital intensity of the sectors in which
DEME is active, the resulting limited number
of players, and DEME’s leading position in
both the dredging and offshore wind
markets, ease potential competitive
pressure to some extent.
DEME’s ability to compete will largely depend
on being able to continue to innovate and
provide state-of-the-art solutions to its
customers. DEME needs to keep up with
evolving technologies (both hardware
and software), and ensure it has advanced
technology and equipment to retain its
market share, reputation and position.
At present, DEME has a modern and
competitive fleet as a result of a multi-
year investment programme.
INVESTMENTS IN UNPROVEN MARKETS
In its business development and diversification
efforts, DEME is investing in industries and
markets that are not yet established and/or
rely on unproven technology initially, such as
deep-sea mineral harvesting (GSR), and green
hydrogen (DEME Concessions).
Investing in unproven markets can give rise
to high research and development costs,
impacting the financial position of the Group.
Moreover, new industries or assets can
also become obsolete or uncompetitive
in view of current market circumstances
and evolving standards.
DEME relies largely on its ability to
continue to innovate and as such
provide state-of-the-art solutions to its
customers, also in unproven markets.
Financial investments in unproven markets,
which are not yet generating cash flows, are
covered by the cash flows arising from the
other operational segments of the Group.

BUSINESS RELATED RISKS
  
PROJECT MANAGEMENT AND EXECUTION RISKS
DEME’s business largely revolves around
projects in the orderbook. We usually construct
or deliver an infrastructure or a scope of work
with a unique character for a fixed, lump
sum or variable price and within an agreed
period of time. Sometimes contracts also
include the obligation for DEME to design the
infrastructure and arrange the financing too.
Risks can arise throughout the entire
project management and execution process,
from tendering to contract negotiation
and, upon award, the execution of the
engineering, procurement, construction,
commissioning and delivery.
In addition, there is also the possibility
that the client will not be able to obtain the
necessary financing or that it might not
be able to do so in a timely manner etc.
Operational risks can lead to possible cost
overruns, particularly for those projects with
fixed-price contracts or with limited price
escalation provisions, where the actual costs
may exceed the initial estimation made by
DEME due to unanticipated additional costs
(e.g. resulting from supply price increases,
additional work, delays in performance, etc.).
Such additional costs cannot always be passed
on to the customer, resulting in DEME bearing
all, or at least a portion of these costs.
Depending on the size of a project,
variations from the estimated costs due
to performance could have an adverse
effect on DEME’s financial performance,
results of operations or cash flows.
In particular, projects based on new designs
may entail higher risks of cost overruns
because DEME may be less able to make
a proper cost estimate for the project
beforehand, especially when it ventures into
new business segments for the first time.
Delays (due to possible internal and/or external
factors) in meeting delivery performance
requirements (e.g. “milestones”) may also
result in potential penalties or damages.
This includes third-party risks in the form
of poor performance or non-performance
of subcontractors, suppliers, vendors,
joint venture partners or other parties,
which could affect DEME’s ability to
execute its projects as planned.
For instance, this could happen
when substitute manufacturers
are limited, especially for those
making specialised equipment.
Potential penalties or damages, additional
costs etc. may arise from not meeting
performance requirements. These could be
due to quality, the contract period, or cost
overruns resulting from not complying with
the warranty obligations under the contract
(e.g. responsibility for maintenance etc.).
Adverse effects on DEME’s business could
result from failure to comply with any changes
in the applicable regulations and legislation
in the relevant jurisdiction regulating,
for example, safety and social obligations
vis-à-vis subcontractors. There is also the
potential of unlimited penalties or damages
to be paid as some contracts, in particular
public contracts, may not have limitation of
liability clauses.
DEME’s ORM department deploys its
ORM system for the timely identification,
assessment and management
of risks and opportunities with respect to
tendering, preparation and the execution of
projects. By means of detailed and interactive
ORM dashboards, all the opportunities and
risks are continuously monitored so that
decisions and necessary actions can be taken.
There is also a Risk Committee, composed
of the CEO, CFO and the member of the
Executive Committee responsible for the
relevant segment or any person appointed
by the latter, complemented with non-
executive directors and/or any other persons
designated by the Board of Directors. The
Risk Committee assists the CEO in his task of
assessing risk management matters, and in
particular analyses and approves all binding
offers related to EPC and Design and Build
contracts and other important contracts.
The Risk Committee reports regularly to
the Board of Directors on the performance
of its duties and identifies any matters for
which it believes action or improvement is
necessary and makes recommendations
regarding any steps to be taken.
 RISK REPORT
DEME ANNUAL REPORT 2022 
  
PROJECT MANAGEMENT AND EXECUTION RISKS continued
During a project, DEME may be confronted
with certain other risks of a general nature
which are, directly or indirectly, caused by
factors that are inherent to DEME’s business
(e.g. marine engineering contracts).
DEME may be subject to increased project
costs due to possible non-working days, a delay
in the delivery of the works, injuries to DEME
employees or third parties, damages to DEME’s
equipment/vessels or those of third parties,
as a result of any of the following factors:

and composition of the soil and/
or specific site conditions;

including extreme climate events
(storms, tsunamis, earthquakes, etc.);


and breakdowns that may influence
the performance of the vessels or
cause damage to own or third party
equipment (for example, collisions);

project, as well as the assessment of the
technical suitability of the equipment;

during the course of the contract;

on subcontractors, suppliers and
(joint venture) partners, particularly
in the context of Engineering,
Procurement, Construction and
Installation (EPCI) projects.
DEME tries to manage all those risks through
its project management systems set-up,
including taking out appropriate insurance
policies.

  
MAINTAIN AND RENEW REQUIRED APPROVALS, LICENCES AND PERMITS FOR OPERATIONS
The risk to obtain, maintain or renew the
approvals, licences, permits and certificates
required to operate its business.
DEME requires various approvals,
licences, permits and certificates
to operate its business.
For instance, the Belgian operating companies
must hold a “Certificate of Recognition”
as contractor. Recognition is granted by
the Federal Government Service for the
Economy, SME, the Self-Employed
and Energy, and has to be renewed every
five years. Comparable requirements exist
for all of DEME’s activities worldwide.
With respect to the vessels, the flying of a
flag is always accompanied by the completion
of a registration procedure and a technical
survey (the vessel must comply with specific
technical standards). Upon the successful
completion of the procedure, the vessel is
granted a “Certificate of Registry”, which
gives the vessel the right to fly a particular
flag and guarantees the right of free passage.
The exact technical standards and procedures
may differ from jurisdiction to jurisdiction
and change with the passage of time.
DEME meets international legal and other local
mandatory QHSE requirements. Additional
certificates are obtained to ensure that DEME’s
QHSE standard is higher than the requirements.
DEME holds an ISO Group Certificate, which
includes more than 50 of our operational and
commercial entities. All certified entities
have an integrated ISO scope covering DEME’s
operational activities and are compliant
with the following standards: ISO 9001
Quality Management Systems, ISO 14001
Environmental Management Systems,
ISO 14064 Reporting, ISO 45001 Health
and Safety Management Systems and ISO
50001 Energy Management Systems.
In addition to ISO, the DEME QHSE
Management System is also compliant
with a lot of other specific standards.
Furthermore, marine vessels and
structures are classified according to the
soundness of their structure and design in
relation to the purpose of the vessel. The
classification rules are designed to ensure
an acceptable degree of stability, safety
and environmental impact among others.
DEME’s department ‘Class and Flag’ is
responsible for maintaining the fleet’s flag
and regulatory certificates and updates on the
required planning for any surveys required.
The validity of the certificates varies from a
few days (conditional) to permanent. For some
certificates periodical surveys/inspections
must be performed within a specified period.
UNCERTAINTY WHETHER A PROJECT WILL EFFECTIVELY MATERIALISE
DEME, as a project developer, focuses on
projects in the fields of renewable energy,
marine infrastructure and ports, dredging,
green hydrogen and other special projects.
The process from the first idea until the
actual completion could entail an extensive
period of time. This means that considerable
costs may be incurred and time may be
spent by DEME on a potential new project,
without having the assurance that the
project will eventually materialise.
For example obtaining the required concession
for the new project from the relevant
governmental authority can be a risk, due to,
for instance, uncertainty in interpretation
and/or application of changing or ambiguous
regulations in the relevant jurisdiction(s),
onerous restrictions being imposed or changes
being adopted in respect of the conditions of
the concession and/or political instability.
Furthermore, when commencing the
development of a new project it’s also
necessary to obtain the proper financing for
the project and to find financial institutions
willing to finance this new project.
Within DEME there is a Technical Committee
and a Technical Committee for DEME
Concessions in particular, composed of the
CEO, CFO and the member of the Executive
Committee responsible for the relevant
segment or any person appointed by the
latter, complemented with non-executive
directors and/or any other persons designated
by the Board of Directors. The members of
such Technical Committee have the expertise
required for specific projects. Their role is
the evaluation of projects/investments,
which play a special role within the Group,
from a risk, investment and image perspective
and to analyse them in more depth in
preparation for the Board of Directors.
The Technical Committee meets in
preparation for each Board meeting. The
Technical Committee discusses the submitted
projects/investments in detail and asks for
clarification or elaboration where necessary.
The chairman of the Technical Committee
reports the findings at the next Board meeting.
 RISK REPORT
DEME ANNUAL REPORT 2022 
  
THIRD PARTY RISKS
DEME is subject to third-party risks in
respect of contractors, suppliers, vendors,
joint venture partners or other parties involved
in the engineering, design, procurement of
materials, equipment and services for the
performance of work on DEME’s projects.
The successful completion of projects
depends on the ability of these third parties
to perform their contractual obligations
and is subject to factors beyond DEME’s
control, including actions or omissions by
these parties and their subcontractors.
DEME implements measures to minimise
potential third-party risks, such as
carrying out due diligence of third parties
before doing business and procure-to-pay
procedures for material third parties.
ENVIRONMENTAL AND CLIMATE CHANGE RISKS
Dredging, land reclamation, offshore
works, infrastructure and environmental
projects are activities which impact the
environment, and which face specific
environmental and/or climate risks.
DEME faces specific environmental risks
relating to the disturbance of fauna
and flora in the work environment,
accidental contamination or other
undesirable environmental effects.
These environmental risks can be broken
down into three main components:

within the Group must by the very
nature of their activities – soil and sludge
remediation – deal with dangerous
and harmful substances. The nature
of some kinds of contamination and
the technologies used to cope with
them are not always free of risks;

active in marine infrastructure – relies
heavily on natural resources, which will
be depleted when consumption exceeds
their natural accrual. Government bodies
may impose restrictions on the use of
certain natural resources or may demand
the reuse of certain resources. The client
for example, will either impose minimum
values of reuse or favour tenders which
have the highest value of reused materials.
As a consequence, DEME has to consider
this circular economy and find ways to
optimise the recycling of materials;

warming cause more frequent and extreme
weather conditions such as storms, heavy
rainfall and flooding, which could result
in more operational downtime for DEME
(e.g., vessels, wind farms, infrastructure or
dredging activities could be impacted).
DEME continuously monitors and
assesses economic and climate-related
circumstances to anticipate, limit or
avoid any impact on our finances.
It is also DEME’s ambition to fundamentally
contribute to sustainable solutions for the
global environment, societal and economic
challenges faced in the world today.
DEME is continuing its ambitious strategy
to expedite the energy transition and its
sustainability ambitions are also embodied
in its modern, innovative fleet.
Additionally, DEME aims to play a
role in the move towards the circular
economy by providing integrated
circular solutions for soil remediation,
brownfield development, environmental
dredging and sediment treatment.

FINANCIAL RISKS
  
FINANCING
To finance its investments and
activities, DEME frequently makes use
of external financing sources, both for
short- and long-term financing.
The extent of leverage may expose the Group
to various risks, including increasing its
vulnerability to downturns or adverse changes
in general economic, industry or competitive
conditions and government regulations.
This requires a substantial portion of its cash
flows from operations to be dedicated to
the payment of principal loans and interest
on the Group’s indebtedness, therefore
reducing its ability to use its cash flows to
fund its operations, capital expenditures
and future business opportunities.
DEME aims to maintain a healthy balance
between the consolidated net equity
and the consolidated net debt. DEME has
significant credit facilities and guarantee
facilities with various international banks.
In addition to this, it has a commercial
paper programme to cover its short-
term borrowing requirements
DEME must in the context of some of its
long-term credit facilities comply with
certain restrictive covenants relating
to DEME’s capital-raising activities and
other financial and operational matters
(e.g. the balance sheet total, net equity,
net financial debt and EBITDA).
Complying with such restrictive covenants
can make it more difficult for DEME to obtain
additional capital and to pursue business
opportunities, including potential acquisitions.
Any breach of these covenants could give
rise to the acceleration of the loans.
Under the general term of capital management,
net financial debt and cash flows are
closely monitored by DEME's Treasury
Department and management (BoD).
DEME seeks to diversify its financing
resources (though only with banks with
which it has a longstanding relationship
and with good investment grade credit
ratings) and to spread the maturity dates.
MARKET RISK: INTEREST RISKS
For its financing, DEME is facing an
interest rate risk that can be defined as
the extent to which the results or value
of a financial transaction are affected
by a change in market interest rates.
Changes in interest rates can lead to increases
in the interest charges, and as such, can
impact the financial statements of DEME.
The interest rate risk management is centrally
performed within the Group. Should DEME use
short-term borrowings to finance short-term
needs (e.g. working capital for projects) DEME
could hedge the floating interest rate.
For its long-term borrowings, DEME covers
the vast majority of the risks of changes
in the underlying variable interest rates
through derivative financial instruments,
mainly by using interest rate swaps.
 RISK REPORT
DEME ANNUAL REPORT 2022 
  
MARKET RISK: EXCHANGE RATE RISKS
The global nature of DEME’s activities
means that payments made for contracts,
purchases and expenditures may be in a
variety of currencies, thus exposing DEME to
risks associated with fluctuations in currency
exchange rates and with its currency hedging,
which could result in increases to DEME’s costs.
Most of the Group’s purchases are typically
transacted in euro or USD. This means that
the Group will face a risk of exchange rate
fluctuation when the sales are made in a
different currency than the purchases.
DEME may be unable to pass these
increased costs on to its customers.
DEME uses derivative financial
instruments in order to reduce the
effects of currency fluctuations on its
cash flows and financial condition.
In principle, DEME arranges cover for only
committed cashflows in currencies other
than the home currency. It does so mainly in
the form of forward transactions (project
hedging or CapEx) or swaps (operating
capital, follow-up of forward transactions).
So the currency exchange risk is particularly
relevant in the pre-committed period.
To cope with the exchange rate risks associated
with foreign currencies subject to local
restrictions, use is made - where possible - of
non-deliverable forward (NDF) hedging.
DEME’s reporting currency is the euro.
However, given the Group’s global operations,
a significant portion of the Group’s assets,
liabilities, expenses and revenue are
denominated in currencies other than euros
and are thus translated to euros at the
applicable exchange rates to prepare the
Group’s consolidated financial statements.
Therefore, fluctuations in exchange rates
between euros and other currencies affect the
value of those items expressed in euro terms in
the Group’s consolidated financial statements.
A change of one or more of the foreign
currencies in which DEME’s local subsidiaries
operate against the euro impacts its revenue
and profitability when expressed in euros.
Exchange rate changes also affect the
Group’s consolidated statement of its
financial position and income statement.
Changes in the euro values of the Group’s
consolidated assets and liabilities resulting
from exchange rate movements may cause
the Group to record foreign currency
gains and losses through profit or loss, or
through its foreign currency translation
reserve recognised in other comprehensive
income and accumulated in equity.
DEME does not hedge against
translational currency risks.
MARKET RISK: PRICE AND COMMODITY RISK
DEME is exposed to risks associated with
fluctuations of prices for raw materials and
energy. Raw materials and energy are essential
for the performance of its activities and as
such are an important element of its costs.
Key raw commodities include construction
materials required for infrastructure projects
or steel for offshore wind farm foundations.
When it comes to energy, this primarily
refers to the use of fuel oil or LNG by DEME’s
vessels and earthmoving equipment.
The prices at which DEME can purchase certain
raw materials (e.g. steel) or energy (fuel oil or
LNG) may fluctuate significantly according to
local and international market conditions (e.g.
shortages, market price volatility, currency
fluctuations, changes in governmental
programmes, etc.), thus exposing DEME to
price risks and potentially higher costs.
Some contracts allow cost increases for raw
materials and energy to be passed on to the
customer by means of price-review mechanisms.
DEME also hedges against oil price
fluctuations by entering into forward
contracts. Though this practice becomes
more costly and therefore unsuitable when
it spans a lengthy amount of time or when
quantities cannot be estimated reliably.

  
CREDIT AND COUNTERPARTY RISKS
A credit risk may arise in the event a customer
or counterparty fails to perform its contractual
obligations in respect of DEME in accordance
with the provisions of the contract concerned.
Non-payment by a customer may be
the consequence of a lack of liquidity,
bankruptcy or fraud on the part of the
customer or be attributable to the
general political or economic situation
in the customer’s country. It can impact
our cash flows and financial position.
DEME aims to minimise the credit risks of
its customers by examining their solvency
prior to finalising the contract and putting
the required payment guarantees in place
(including credit insurance policies with
public service credit insurers such as
Credendo and private credit insurers, bank
guarantees and through letters of credit).
But it is not possible to entirely exclude the
credit risks associated with customers.
A large part of the consolidated turnover
however, is realised through public or
semi-public sector customers. Therefore,
the level of counterparty risk is limited
because these entities represent a
substantial proportion of our customers.
To contain the remaining risk, DEME constantly
monitors its outstanding trade receivables
and adjusts its position if necessary.
DEME is exposed to counterparty risks when
placing/investing its available liquidities and
when subscribing to financial derivatives.
Financial institutions can go into default
or be declared bankrupt and in turn,
put our invested assets at risk.
DEME has a policy to minimise counterparty
risk by avoiding concentrations of these and
in such matters working only with banks with
which it has a longstanding relationship and
with good investment grade credit ratings,
but it is not possible to entirely exclude
credit risks of financial counterparties.
LIQUIDITY RISKS
Although DEME operates strict financial
policies and ensures that there is a diversity of
sources of finance and repayment periods, it
cannot be ruled out that the non-performance
of significant payment obligations by
customers or the inability to arrange adequate
external financing subject to acceptable
conditions could have a negative effect on
the cash flow and liquidity of DEME and thus
have a negative impact on the activities,
financial situation and results of DEME.
All these factors might result in DEME
having difficulties to comply with
its credit facility covenants.
If DEME’s future cash flows from operations
and other capital resources would be
insufficient to honour its payment
obligations or to fund its liquidity needs,
DEME may be forced to adapt its business
activities and capital expenditures, sell
assets, obtain additional debt or equity
capital, restructure or refinance all or a
part of its debt on or before maturity, or
for opportunities such as acquisitions.
The liquidity risk is limited by spreading
borrowing among several banks, agreeing
a variety of repayment periods and
also by mitigating the credit risk.
Moreover, DEME mainly invests in equipment
with a long lifespan, which is written-off
over several years and for that reason,
DEME seeks to structure a substantial
part of its debts as long-term debt.
 RISK REPORT
DEME ANNUAL REPORT 2022 
  
COMPLIANCE WITH AND CHANGES TO LAWS
DEME is active in a large number of countries
in all parts of the world and is subject to a wide
variety of legislation and regulations in each
of the jurisdictions in which it operates. And it
can be the case that DEME incurs substantial
costs in order to comply with these regulations.
The regulations to which DEME is subject
vary from jurisdiction to jurisdiction
and may change over time.
This can include changes to export, import
and transit inspections, excise, rates and
quotas, income tax, withholding tax, VAT
and other tax, environmental legislation,
checks on international trade and currency,
and workplace and social security policies.
DEME always seeks to monitor and adapt
to changes in the legal systems, regulatory
controls, customs and practices in
the jurisdictions where it operates.
LEGAL AND REGULATORY COMPLIANCE RISKS REGARDING ANTI-TRUST, ANTI-MONEY LAUNDERING AND ANTI-CORRUPTION
Doing business on a worldwide basis requires
DEME to comply with international antitrust,
anti-money laundering, anti-bribery and
anti-corruption laws and regulations,
including the U.S. Foreign Corrupt
Practices Act and the U.K. Bribery Act.
In addition, sanctions imposed by international
organisations or individual nations restrict or
prohibit transactions with certain countries,
and with certain companies and individuals
identified on lists maintained by the United
Nations, the U.S. Federal Government,
the European Union, various EU member
states and other local governments.
Furthermore, due to the increasing complexity,
size and geographical spread of DEME’s
operations and the extent of its reliance on
employees, agents, third-party providers or
any other representatives involved in DEME’s
business, it may become more difficult to
effectively monitor and control all of DEME’s
global activities, and in certain emerging
markets, which are known to be more prone to
bribery, corruption and other compliance risks.
DEME may be unaware of, or unable to timely
anticipate and prepare for developments
in such laws, regulations and sanctions.
Subsidiaries and joint ventures work
autonomously in an international environment
with a multitude of stakeholders which
participate in or are impacted by the Group’s
operations: project managers and their
representatives, concession-granting
authorities, regulatory authorities,
contractors, design offices, joint contractors,
subcontractors, suppliers, service providers,
local residents, communities, etc.
DEME is committed to responsible business
practices and has formulated internal
policy with the objective to execute all
of its activities with integrity and zero
tolerance with regard to corruption.
DEME operates a global compliance
programme (through, for instance, DEME’s
Code of Ethics & Business Integrity and the
Group’s existing policies, procedures, training,
whistle-blower hotline, IT tools, internal
controls and risk management in relation to
antitrust, anti-money laundering, anti-bribery
or anti-corruption laws and regulations and
sanctions, including the monitoring thereof
by DEME’s Compliance Department).
But there can be no assurance, however,
that such codes, policies and procedures
are always being applied by employees,
agents, third-party providers or any other
representatives involved in DEME’s business.
LEGAL AND REGULATORY RISKS

  
COMPLIANCE WITH AND CHANGES TO ENVIRONMENTAL, HEALTH AND SAFETY LAWS
The ordinary course of operation of
DEME’s business involves certain inherent
risks related to the health and safety of
employees, subcontractors and others.
DEME could incur substantial liability in the
event of accidents, exposure to hazardous
substances, spillages or other events resulting
in injury or death, even if the event is not
as a result of any fault on DEME’s part.
Furthermore, in some of the countries
where DEME works, the activities may be
affected by social and/or political instability
(terrorism, armed conflict, seizure of bank
accounts etc.) as well as prone to malicious
and/or criminal acts (vandalism, theft,
physical attacks, kidnapping, piracy, etc.).
DEME identifies risks of accidents, or injury
and health impacts and introduces the
appropriate mitigation measures. Though
in the event of accidents, injuries in which
DEME’s employees or subcontractors
would be involved, cannot be entirely
excluded.
The QHSE slogan is ‘Zero accidents and zero
environmental incidents’. The company’s
priority is and remains the wellbeing of
the employees and subcontractors by
creating a high-quality, healthy, safe and
eco-friendly working environment.
QHSE is always on the agenda of DEME’s
Management Team, Executive Committee
and Board of Directors’ meetings.
As well as that, each employee
has a Stop Work Authority: the right and
the obligation to stop any activity that is
deemed to involve unacceptable risks.
Key Performance Indicators (KPIs) are in
place at all levels of the organisation to
follow up on QHSE performance. The QHSE
KPIs include both leading ones such as Green
Initiatives, timely closed actions, toolbox
participations, etc., as well as lagging
indicators such as the safety thermometer.
The ordinary course of operation of
DEME’s business involves certain inherent
risks related to the environment.
In certain jurisdictions, incidents resulting
from dredging, land reclamation,
offshore works, infrastructure and/or
environmental activities (for instance,
contamination of air, water and soil)
require the contractor to clean up after
the works and bear the cost thereof.
It is DEME’s policy to strictly abide by all
the applicable legislation and regulations
in every jurisdiction in which DEME is
active, ensuring compliance with this
complex array of laws and regulations.
 RISK REPORT
DEME ANNUAL REPORT 2022 
  
TAX RELATED RISKS
DEME operates in a range of countries
subject to different tax regimes. DEME’s
effective tax rate and tax liability are based
on the application of current income tax
laws, regulations and tax treaties. From
time to time, various governments make
substantive changes to tax rules and the
application of rules, including changes
potentially impacting the Group's ability
to defer taxes on international earnings.
In addition, DEME is regularly subject to
audits of its income tax returns and VAT
declarations by the tax authorities in the
various countries in which DEME operates.
Significant judgment is required to determine
tax liabilities worldwide, and this is partly
because tax laws and regulations do not always
provide clear and definitive guidelines.
DEME’s effective tax rates and tax
exposure could potentially be affected
by a multitude of reasons.
These include changes in the composition
of its earnings in countries or jurisdictions
with higher or lower tax rates, changes in
applicable tax rates, transfer pricing rules
or in the valuation of DEME’s deferred tax
assets and liabilities, DEME’s ability to
utilise tax losses and tax credits, changes
to interest deductibility or other changes
in the tax laws and the way such laws are
applied by tax administrations (possibly with
retroactive effect). This also encompasses
through tax arrangements issued by the tax
authorities and corresponding challenges
by tax authorities to DEME’s judgement
or interpretation in tax matters.
As mentioned, the taxation of the operations
can be subject to judgements and might
result in disputes with local tax authorities.
If management considers it probable that such
disputes will lead to an outflow of resources,
accruals have been recorded accordingly.
Although DEME believes its tax estimates
are reasonable, due to continuous
screening by its Tax Department, any final
determination could be different from the
treatment reflected in DEME’s historical
income tax provisions and accruals.
LITIGATIONS
DEME has been and may continue to be
involved in litigation, other legal claims and
proceedings, investigations and regulatory
enforcement actions from time to time with
various parties in the course of its business.
Disputes may, for instance, arise around
different interpretations of new items
arising during the performance of the
contract, or around misinterpretations
of contractual clauses.
DEME’s business is also subject to operational
risks, including environmental hazards,
accidents, disruption or flooding, which could
result in damage or even the destruction
of equipment, structures or buildings,
environmental damage or personal injuries,
or legal liability towards third parties.
The company may even be involved in
proceedings initiated by employees or former
employees of DEME with occupational
disease claims related to certain activities
(e.g. diving, working in the sun for extensive
periods) or to exposure to hazardous
substances (e.g. fumes, corrosive or toxic
substances), among other things.
Disputes and legal proceedings in which
the Group may be involved are subject to
many uncertainties, and their outcomes
are often difficult to predict.
Some of these proceedings can lead to DEME
having to pay damages, remedies or criminal or
civil sanctions, fines or disgorgement of profit.
The defence of any such claims and
any associated settlement costs can
be substantial, even with respect
to claims that have no merit.
As a general rule, DEME’s contracts are
subject to the laws of the countries in which
the projects are executed, supplemented
where possible by the arbitration clause of
the International Chamber of Commerce,
in particular for countries where the legal
system might not offer sufficient protection.

OTHER RISKS
  
IT-RELATED RISKS
DEME increasingly relies on digital
communication, connectivity, and the
use of technology to run its worldwide
business, which has been further
accelerated by remote working.
DEME increasingly relies on digital
communication and the use of information
technology for its business, which
increases its exposure to potential
cybercrimes, failures or disruptions in
IT systems and other related risks.
Information technology is crucial in supporting
and protecting core and supporting processes.
This enables DEME to work more fluidly and
efficiently and makes it possible to follow
up its local operations in almost real-time
from its headquarters, but it also leads to a
vulnerability linked to cybersecurity challenges
and dependency on digitalised processes.
Internal policies, procedures and instructions
are in place to mitigate the information
technology risk. These include multi-factor
authentication, single sign-on with Office 365
for all cloud-based applications, hard-disk
encryption, as well as End-Point protection
on all PCs, regular “Ethical hacking” exercises,
awareness campaigns and penetration testing
by the Enterprise Security Office (ESO).
In its role, ESO provides the management with
periodic updates on the security risk landscape
and performs security risk assessments. As
such, the ESO informs the Group about potential
threats to the security of staff and property.
EMPLOYMENT
DEME heavily relies on qualified personnel,
professionals and managers.
The success of DEME’s business depends
largely on its ability to continue to recruit
and retain skilled personnel, and to do so
at competitive conditions.
DEME must recruit and retain adequate
numbers of highly qualified engineers,
professionals and managers for the
performance of the technical, support
and managerial functions.
Not being able to attract talent could limit
the execution of current operations, as well
as have an impact on the growth of DEME.
To attract talent, DEME has a
professional recruitment team. DEME
also works in the talent market to
recruit enough skilled employees.
It is vital to motivate and retain them,
even for work far from home. DEME tries
to recompense the long working hours,
shift working, and the night-time and
weekend work with attractive conditions of
employment and holiday arrangements.
The company also invests in the
development of employees through
various training programmes and
prepares candidates for key promotions to
improve their leadership capabilities.
INTELLECTUAL PROPERTY
DEME makes use of certain proprietary
technology and know-how, including the
intellectual property and innovations
that it has developed itself.
To obtain a competitive advantage
towards its competitors, DEME must
use state-of-the-art technologies, often
developed by its own employees.
DEME enters into confidentiality agreements
with third parties that are involved in
Research & Development ('R&D').
The intellectual property rights arising from
this R&D are owned by DEME on the basis
of a standard contract with the inventor.
Depending on the type and value of the
intellectual property it may be protected
further by filing a patent application.
OUTBREAK OF PANDEMIC DISEASE
A pandemic, such as the recent COVID-19, can
negatively affect our operations. It impacts
the health of all our employees, suppliers,
subcontractors; it can disturb the delivery
of crucial supplies and it can lower demand.
An outbreak of a pandemic impacts the
health of our crew and staff and our business
continuity, on board, on project sites, and at
our offices and consequently, it has an impact
on the financial position of the company.
Local or international measures can limit
travelling for our crew and staff, and include
possible quarantine measures, and it can
complicate the delivery of necessary supplies.
Cooperation of all staff and crew, compliance
with our health and safety measures
and vaccination recommendations
enabled the company to limit the
number of Covid infections.
And to date, DEME has kept the mitigation
measures and protocols in place to continuously
assess the Covid evolution and the associated
government measures. The evolution and risks
now appear to be reasonably under control with
most governments relaxing their regulations.
 RISK REPORT
DEME ANNUAL REPORT 2022 
It is wonderful to be part of the DEME
team, knowing we are making such a
significant contribution to the worldwide
energy transition and ultimately,
to a cleaner, more sustainable planet.
LAURA VOULISMAS
|

SUSTAINABILITY
&
QHSE
05
CHAPTER

 INTRODUCTION
Introduction

excellence in our operations. Our actions are guided by our values, international standards
and the expectations of our key stakeholders.The following pages outline how we take our

DEME ANNUAL REPORT 2022 
  
CLIMATE
AND ENERGY
Strive for climate-neutral operations

in our operations.
Reduction of GHG emissions from our own
operations and project supply chain.
NATURAL
CAPITAL
Minimise the environmental impact of our
operations and strive for a net positive
impact on biodiversity and ecosystems.
Operational solutions to manage
adverse impacts on water, land and air.
Nature-based Solutions integrated into our
operations.
SUSTAINABLE
INNOVATION
Enhance scientific research, upgrade the
technological capabilities and encourage
sustainable innovation within our projects.
Intrapreneurship to advance sustainability.
Partnerships with universities
and research institutions.
WASTE AND
RESOURCE
MANAGEMENT

materials throughout our projects.
Reuse of dredged materials, soils, water
and materials from demolition works in our
operations.
HEALTH AND
WELLBEING
Provide a safe, secure and healthy working
environment for all people involved.
Guaranteeing physical
and mental health & wellbeing.
DIVERSITY AND
OPPORTUNITY
Ensure an inclusive workplace where
all employees are treated equally,
with dignity and respect.
Diversity and inclusion.
Strengthen employee competencies. Personal and professional opportunities.
ETHICAL
BUSINESS
Respect and protect labour
rights in our operations.
Clear guidance and minimum standards
on business ethics & human rights for all
parties involved in our operations.
Embed an ethical business mindset within the
organisation and transparently communicate
about our ethical performance.
LOCAL
COMMUNITIES
Build collaborative relationships with
local communities through consultation,
engagement and participation.
Employee engagement in community
participation.
DEME's 8 key
Sustainability Themes
EXCEL - How can we make sure we are performing
in the most sustainable way possible?

Climate and Energy
WORLDWIDE GREENHOUSE
GAS EMISSIONS
kt CO e *

kt CO e *

kt CO e *

REDUCTION OF GHG EMISSIONS FROM OUR OWN
OPERATIONS AND PROJECT SUPPLY CHAIN
TARGETS
We have defined  within our ISO



: Climate-neutral operations in

 Buildings
Lease cars

 Purchase of goods and services: To set dedicated
targets and/or actions based on an analysis of our Scope

PROGRESS 2022

. The amount of DEME's annual total global greenhouse gas
emissions is largely dependent on the type of projects and the vessel
 could be attributed to
the high overall utilisation of the hopper and cutter fleets, representing


System including energy action fiches for every SEU with their

and validated during the annual Energy Management Review.

we would kindly refer to our dedicated webpage www.deme-


Vessels
Machinery & equipment
Lease cars
Buildings
* see glossary
Concerning the reduction of air emissions, we have chosen a very ambitious strategy whereby
we aim to tackle both emissions leading to global climate change, as well as emissions leading



chosen to take the IMO’s current strategy into account and are contributing to the IMO ambition to reduce the carbon



BELGIUM,
THE NETHERLANDS
AND LUXEMBOURG
CO EMISSIONS


kt CO*

kt CO*

kt CO *
98
3%
< 0.5%
1%
96%
 OUR 8 KEY SUSTAINABILITY THEMES
DEME ANNUAL REPORT 2022 
CLIM AT E
AND ENERGY
vessels & auxiliary
ﬂoating equipment,
machinery & equipment,
lease cars, buildings
transport of goods,
processing of sold products,
investments
purchased electricity
DOWNSTREAM ACTIVITIES
DEME
UPSTREAM ACTIVITIES
SCOPE 3
users indirect
GREENHOUSE GASES
LOCAL EMISSIONS
SCOPE 3
users indirect
SCOPE 2
indirect
SCOPE 1
direct
purchased materials,
transport of goods, waste,
transport of people
Note: this visual is based on the GHG Protocol Scope 3 Standard and focuses on the most important aspects relevant to DEME
ENERGY TYPE
= ELECTRICITY
ENERGY TYPE
= FUEL
N
2
O
= 265 x CO
2
(GWP
100
)
CH
4
= 30 x CO
2
(GWP
100
)
CO
2
SO
x
NO
x
PM VOC

O) and methane (CH).

CLIM AT E
AND ENERGY
VESSELS
17% of low carbon fuels consumed


PROGRESS― P. 140
TRANSPORT OF PEOPLE

for lease cars by 2025 in the Benelux
PROGRESS― P. 147

The energy management system enables us
to integrate our energy management with our
related greenhouse gas emission management.

users (SEUs) have been identified: buildings, machinery and equipment,
purchase of goods and services, vessels and transport of people.
Here is an overview of all the SEUs with their corresponding targets.

04
01
 OUR 8 KEY SUSTAINABILITY THEMES
DEME ANNUAL REPORT 2022 
BUILDINGS

PROGRESS― P. 144
MACHINERY
AND EQUIPMENT
Climate-neutral operations

PROGRESS― P. 146
P U R C H A S E O F
GOODS & SERVICES

in our project supply chains
PROGRESS― P. 148
03
05
02

CLIM AT E
AND ENERGY


We are currently implementing a multi-year fleet investment programme in order to further
increase energy efficiency, to reduce air emissions directly and significantly, and to be able to
make the switch to the use of future zero carbon fuels in the long run. On top of that, we are
already actively engaging in the production of these future fuels, which will play a vital role in
reducing emissions by up to almost 100%. When it comes to CO
and GHG we have chosen to

DEME’S VESSEL GHG EMISSIONS REDUCTION ROADMAP
VESSELS
01
 OUR 8 KEY SUSTAINABILITY THEMES
DEME ANNUAL REPORT 2022 



1. OPERATIONAL
ENERGY EFFICIENCY
Throughout the years, we have
been focusing on improving
the operational efficiency and
productivity of our fleet, resulting in
the reduction of our CO emissions.
Modernisation and upscaling of the fleet

modernisation of the fleet is the offshore
installation vessel ‘Orion’, one of the
newest members of the DEME fleet and
the most innovative vessel in the offshore
wind industry. ‘Orion’ is the first floating

generation of mega foundations, speeding

well as this, ‘Orion’ has dual fuel engines
and was operating partially on Liquified

1 project, reducing the CO footprint
of the operations substantially.
Moreover, we are investing in a
new fallpipe vessel to further
reinforce our capabilities in the
offshore energy market.
Improvement of working methods
When the cycle production of a critical
activity is increased, this results in a
time saving but also a fuel saving and
in turn, CO
of an improvement in our working
method is highlighted by the long-term
contract for maintenance dredging
on the River Scheldt where we have

per m dredged with a medium trailing
suction hopper dredger (TSHD).
Implementation of a pragmatic
approach on process improvements
and bottom-up innovation

cutter suction dredgers (CSDs)


equal pumping distances, 'Spartacus'


2. TECHNICAL
ENERGY EFFICIENCY
We continuously strive to increase
our technical energy efficiency across
the fleet, and thus at the same time,
reduce emissions by implementing
different kinds of efficiency measures.
These include waste heat recovery
systems, which convert heat from the

use of fly wheels and battery packs, as
well as measures to boost propulsion
efficiency such as combinator curves.

‘Bonny River’, we have invested in a
combinator curve, which increased

during dredging operations.

with Norwegian shipping company

installation vessel ‘Viking Neptun’.
The vessel is fully compliant with
the latest emission standards and
features cutting-edge environmental
technology, including a battery pack
for best-in-class fuel efficiency.
The TSHD ‘Bonny
River’ and mega
CSD ‘Spartacus’, are
the first dredgers
worldwide to obtain
the additional
class notation
‘Sustainable ship 1’.

CLIM AT E
AND ENERGY
3. FUEL SHIFT


Low carbon fuels combine the fuels
for which the CO emissions are lower
compared to conventional fuel (marine
gas oil). This category includes fuels
such as LNG and blended bio-fuels. By
incorporating state-of-the-art, dual
fuel technology in our vessels, they are
able to run on both LNG in gas mode
and conventional fossil fuels in diesel
mode. From an emissions perspective,
the concept is that they can readily
access the use of a cleaner fuel with the
option to fall back on conventional fossil
fuels if alternatives are not available.

the installed power of our fleet is
technically prepared to use LNG
as a fuel. This includes ‘Spartacus’,
‘Minerva’, ‘Meuse River’, ‘Scheldt River’,
‘Living Stone’, ‘Bonny River’, ‘Orion’
and ‘Green Jade’. Running on LNG

emissions, strongly reduces the amount




of a fossil fuel with a biofuel, both
resulting in a net reduction of our
CO and GHG emissions. Biodiesel
and biomethane (BioLNG) can be
used as a ‘drop-in’ fuel and on board
of vessels currently running on LNG
without any technical modifications
for storage, handling and combustion.
Medium and long-term

DEME is a keen enthusiast about the
potential of future fuels, especially the
e-fuels where we adopted an ambitious
strategy, particularly focusing on the
benefits of hydrogen and methanol..
More information on our hydrogen
project investments can be found in

2022
10%
20 %
25%
30%
5%
15%
20242023 2025 2026
% Low Carbon Fuels
5%
6%
8%
14%
17%
11%
Current level Target


 OUR 8 KEY SUSTAINABILITY THEMES
DEME ANNUAL REPORT 2022 
BEST PRACTICE
Use of green shore power at
DEME Base Flushing

DEME’s request and partly subsidised
our investment in a shore power
network to join the vessels to the grid
that makes use of green power provided
by energy supplier Stedin Group.
This will contribute to a significant
reduction in CO and NO

emissions.

consumption of moored vessels at


reductions for this power consumption

 emission reduction of
 per year


The infrastructure is planned to be


CLIM AT E
AND ENERGY


BUILDINGS
02
We are currently working to
increase energy efficiency and to
promote the use of sustainable
energy in our offices.
Our efforts are focused on the
procurement of green electricity in the
short term and to improve our energy
efficiency and generate our own wind
and solar power for our headquarters.
Our aim is to have climate-neutral

The procurement and production
of this green electricity will play
a vital role in reducing emissions
for our offices to almost zero.
PROGRESS 2022
Procurement of green electricity and
production of local renewable energy
The first step in our strategy
towards zero-emission offices is the
procurement of green electricity for
our offices and sites in Belgium.
By doing this our indirect GHG

in our offices is reduced significantly.


DEME campus
The DEME campus is undergoing
a major transformation. We are
working towards a modern, attractive,
sustainable and energy-neutral head
office. The DEME Labs and new offices
will be fitted with heat pumps and fully
electrified heating systems as a part of
our multi-year plan to gradually shift
from fossil fuel heating to the use of
green electricity. During construction
and renovation, we will also focus on
the design and insulation in order
to reduce the heating and cooling
demand. In addition, solar panels will
be fitted on the roof of the DEME labs.
DEME’S ROADMAP TO

 OUR 8 KEY SUSTAINABILITY THEMES
DEME ANNUAL REPORT 2022 
2015
0
20
40
50
10
30
60
70
20172016 2018 2019 2020 2021 2022
Kg CO2e / GJ energy used
PROGRESS GHG EMISSIONS
REDUCTION HEADQUARTERS
HIGHLIGHTS

purchase of green electricity from
the grid, resulting in zero-emissions
for our electricity consumption.

produced renewable energy for
our electricity consumption. For

consumption, we purchased
green electricity from the grid.

reducing our GHG emissions by:

networks for the offices to
reduce the amount of diesel
consumption for heating;

emissions for our headquarters
coming from the heating and
sanitary water used in the
offices and warehouses.
BEST PRACTICE


means of a hybrid generator with
solar panels at the Groot Onderhoud
Vaarwegen (GOVa) project. The 10ft


lithium batteries and inverters.

have been placed on the container
so that the batteries can also be
charged without producing emissions.
Storing the generator's energy in
the battery pack yields the greatest
savings. The generator only starts
when the batteries fall below a certain
level, and it only runs for a few hours

This initiative resulted in a saving

needed to power the generator of the

of CO reduction. In addition to that,
there is no noise pollution anymore
for the surrounding community.
GREEN
INITIATIVE

CLIM AT E
AND ENERGY
MACHINERY AND EQUIPMENT
03
The electrification of construction

gives the construction sector
more and more opportunities to
move towards zero-emissions,
yet there is still no solution for
remote locations using energy-

and these locations are usually
exactly where DEME is working.
PROGRESS 2022
In the coming years we will investigate
and monitor market developments in
new technologies (electric/hydrogen/

that sufficient knowledge is present
to make the right investments. By

Wiel’s earthmoving machinery will
be zero-emission equipment.
Furthermore, we are inventarising
the operational hours data of
individual pieces of machinery to
optimise the usage on our projects.

equipment we will purchase new,
zero-emission equipment instead as
can be seen in the best practice.
In addition to that often the use of
electrical equipment on project sites
such as compressors, generators,
etc. is being used opposed to
diesel powered equipment.
B E S T P R AC T I C E
Purchase of electric dry

Despite the current price difference
with conventional machinery and
equipment, we have purchased
new electrified machinery.
DEME Environmental purchased
two electric compact wheel loaders.
The time it takes to achieve a full

-equivalent.


 OUR 8 KEY SUSTAINABILITY THEMES
DEME ANNUAL REPORT 2022 
CLIM AT E
AND ENERGY
TRANSPORT OF PEOPLE
04
OVERVIEW
LEASE CARS ORDERED
2021 VS 2022
PROGRESS ON THE AMOUNT OF GRAMS
CO EMISSIONS PER KILOMETRE FOR
OUR LEASE CARS IN THE BENELUX
2011
60
80
100
110
70
90
120
130
140
150
20132012 2014 2015 2016 2017 2018
g CO2 emissions/km
2019 2020 2021 2022
145
121
119 119
112
105
103
99 98
91
89
100
Current level Target 2025
2 0 2 1
2 0 2 2
L E A S E C A R S O R D E R E D
Electric vehicle
Petrol
Diesel
Plug-in hybrid
electric vehicle
37% 57%
10% 28%
13%
4%
40% 12%
The transport of people at DEME includes business flights, train travel and
our car fleet. We aim to reduce emissions related to business travel, increase
green mobility in the Benelux and gather insight into our car fleet worldwide.


WE IDENTIFIED TWO
KEY DEVELOPMENTS:

vehicles ordered, which


number of petrol and
diesel cars ordered, which


of our new lease cars to be


fleet has significantly changed,
this also has an impact on the
GHG emissions (Scope 1) related
to the transport of our people.

emissions of our car fleet was
/km. Despite the fact
we have ordered more electric
vehicles, delays in delivery
due to circumstances beyond
our control, mean we have not
achieved the GHG emissions
reduction we had anticipated.

larger decrease in emissions,
coming closer to our target
/


CLIM AT E
AND ENERGY
PURCHASE OF GOODS & SERVICES
05
One of the main energy consumers
in the project supply chain is the
purchase of goods & services.
We aim to reduce GHG emissions
across our entire project value chain.
This includes exchanging energy and
emissions performance data. We are
determined to gain further insights
into our most significant emissions
categories and to set dedicated
targets and actions based on an

related Life Cycle Assessments.
PROGRESS 2022

general knowledge and awareness of
GHG emissions in our supply chain.
We used our internal procurement

where most GHG emissions are coming
from. We specifically focused on:

(steel, concrete, cranes and dry
earthmoving equipment).

and water transport.


tools, methodologies and criteria
for sustainable procurement,


decision to run a pilot with a supplier
assessment tool as a potential solution
for procuring in a more sustainable way
and pushing our suppliers to do better
and provide us with information on their
emissions related to our scope of work.


 OUR 8 KEY SUSTAINABILITY THEMES
DEME ANNUAL REPORT 2022 

OPERATIONAL SOLUTIONS TO MANAGE
ADVERSE IMPACTS ON WATER, LAND AND AIR
Natural capital
Our oceans, seas, rivers and coastlines are vital for a healthy planet and economy. It is
undeniable that our marine contracting works alter the environment. For this reason, it is

ecosystems by depolluting, restoring and enhancing our rivers, coastal areas, ports and land.
Our ambition is to actively manage the environmental impact of our operations by protecting
biodiversity and minimising any disturbance of sensitive species and habitats during our operations.
Nature-based Solutions can help us move towards a more regenerative economy.
TARGETS

environmental assessments
in all project preparations.


Initiative each year for every
project with a duration longer
than three months (see Progress).
PROGRESS 2022


environmental awareness and
engagement amongst our
employees are increasing, whether
they are working on project sites
or in the office. These initiatives
are employees’ actions to make
changes or modifications to a
process, equipment or setup
to minimise the environmental
impact of a project.

of environmental risks and
mitigation measures (based
on the Environmental Risk

QHSE-S risk assessments.

more successful applications
of our online and real-time field
monitoring system, whereby
we use in-house designed
environmental buoy setups
for water quality surveys.
The system is being further
refined based on operational

feedback from the project sites.
TOTAL NUMBER OF
GREEN INITIATIVES


Energy consumption
Fauna & Flora
Soil emissions
Use of natural resources
Waste management
Water emissions
15
30
18
2
17
39
6
# Submitted and approved
Green Initiatives / Year
 OUR 8 KEY SUSTAINABILITY THEMES
DEME ANNUAL REPORT 2022 
NATURAL
CAPITAL
BEST PRACTICES 2022

In order to protect the biodiversity
present on the site of the Ecoterres
offices and our treatment centres,
Ecoterres is committed to Natagora's
‘Réseau Nature Entreprises’.
Natagora is an association for the
protection of nature in Wallonia
and the region around Brussels.
This commitment led to the signing of
a charter that commits us to five goals:

resulting in the destruction
of natural environments.

species develop.


or partially on the site.



noise mitigation measures

collaborated closely with our client to monitor
underwater noise and tested multiple technologies

was performed with the PULSE technology and we
deployed a triple bubble curtain (BBC) and an enhanced
Hydro Sound Damper net, including a small BBC.

measures on our projects, we acknowledge that
it remains a challenging aspect when installing
foundations at offshore wind farms.

further reduce our noise emissions.
GREEN
INITIATIVE
Charte du label Réseau Nature - E ntreprise
- 1 -
Charte du label
Réseau Nature
Entreprises
(Version 2021)

NATURAL
CAPITAL
NATURE-BASED SOLUTIONS
INTEGRATED INTO OUR OPERATIONS
TARGETS

the sensitivity of receptors and their environmental features.


PROGRESS 2022

Nature-based Solutions and incorporated them into our tender
proposals and project designs. For several ongoing projects we also put
forward a Nature-based Solution as a fully compliant alternative.

to valorise the added value of this pioneering coastal management project.

Living Lab for the Belgian North Sea, 'Cassandra', which reflects our
active engagement in the transition from static coastal protection
to dynamic, resilient and integrated coastal zone management.





INITIATIVES ON

SOLUTIONS
 OUR 8 KEY SUSTAINABILITY THEMES
DEME ANNUAL REPORT 2022 
BEST PRACTICES 2022

In the largest rehabilitation project in

the transformation of Fort Sint-Filips
was successfully completed after
two years by DEME Environmental


th
century fort served as a
dumping ground for millions of litres
of oil and chemical waste. This was
removed and the fort was encased in
an underground cement-bentonite
wall, so that the contamination is
completely isolated. The recreated
lagoon and riverbanks were topped
with clean soil top layers to facilitate a
natural embankment development.
Once the team had tackled the heavy
historical pollution, a higher river dyke
was built to protect the city and the
industrial area of the port against
rising water levels, which are likely
to occur given the impact of climate
change. This initiative is part of the


to the flood protection measures, an
additional groyne dam has been built


new reef on the seabed of the Belgian
North Sea. These purpose-built reef
structures are the first to be installed
offshore off the Belgian coast to
facilitate ecological enrichment and
enhance biodiversity in the Natura

leading reef engineering company
Subcon, DEME co-designed and
installed this Nature-inclusive design
solution, keeping sustainable value
creation at the absolute core of our
operations. Our active engagement in
the development of scientifically and
ecologically underpinned solutions
reflects DEME’s frontrunning position
in the innovative application of
offshore Nature-based Solutions.
downstream of the fort, which will

tidal nature area. The natural dam was
created from the reuse of dredged
material from the site and enhances
the direct creation and natural growth
of a low-dynamic estuarine zone along
the River Scheldt with mudflats and
shoals, marshlands and brooks.
Therefore, the initial
remediation project turned
into an integrated, sustainable
flood management project as
part of a more balanced Scheldt
Estuary Development Outline
- creating not only a safer, but
also accessible, attractive and
natural estuarine system.

INTRAPRENEURSHIP
TO ADVANCE SUSTAINABILITY
PARTNERSHIPS WITH UNIVERSITIES
AND RESEARCH INSTITUTIONS
Sustainable innovation

forward sustainable development. Multistakeholder partnerships therefore can be
seen as a way for organisations from different societal sectors to work together.
TARGETS

of every challenge in each innovation campaign.

of the evaluation criteria of every idea or
initiative during the development phase.
PROGRESS 2022



to create 10 future planets, all of which included
sustainability challenges. These planets were
used to create a multitude of promising future
ventures for DEME of which nine were selected


the most promising nine initiatives of our ‘Diver

is the use of zero-emission equipment.

campaigns, one of them concentrating on the removal
of sea-dumped ammunition, and therefore having


Smarts & Optimisation and focuses on attaining


Talks) on both technical and non-technical
topics. Subjects included the Geopolitics of the
Energy Transformation and Workable Work.
TARGETS

with selected universities.

universities and research institutes.
PROGRESS 2022

Festival, the largest outdoor science festival in Belgium.

(a Belgian academic offshore wind network for young



Management' at ESITC Caen (FR) addresses
the increase in international maritime traffic,
climate change and the planned depletion of
fossil energy resources. DEME supports this
course by providing lectures on environmental
management by using Nature-based Solutions.


benefits of reusing dredged materials in Nature-based
Solutions, and these are combined with site visits.

Lisbon, DEME gave a presentation on 'Upscaling
Nature-based Solutions in coastal zone
management' as part of a dedicated symposium
on the Belgian-Portuguese Blue Economy.

dredging module in the SeaLab online modelling
platform to streamline and improve the know-
how related to dredge plume forecasts.
The ambition to achieve a sustainable world also means that intrapreneurship (whereby employees can behave
like entrepreneurs, even though they work within an organisation) should be encouraged within the company.

specific topics, and dedicated cooperation with universities and research institutes. That’s why we aim to
enhance scientific research, upgrade our technological capabilities and encourage sustainable innovation.

APPROVED
INNOVATION
INITIATIVES
 OUR 8 KEY SUSTAINABILITY THEMES
DEME ANNUAL REPORT 2022 
SUSTAINABLE
INNOVATION


EUROPE
UK
University of Southampton
Belgium
Ghent University
KU Leuven
Universiteit Antwerpen
Université Libre de Bruxelles
France
Mines Paris Tech
Université Grenoble Alpes
The Netherlands
Utrecht University
Eindhoven University
of Technology
Poland
Lodz University of Techology
Ukraine
Odessa National
Maritime University
Italy
Politecnico di Milano
Germany
Kiel University
Technische Universität Berlin
REST OF
THE WORLD

Johns Hopkins University- Boston

National University of Singapore
Australia
University of Western Australia
 from

in following domains




Waste and
resource management

GREEN INITIATIVES
ON USE OF
NATURAL RESOURCES

GREEN INITIATIVES
ON WASTE MANAGEMENT
REUSE OF DREDGED MATERIALS, SOILS,
WATER AND MATERIALS FROM DEMOLITION
WORKS IN OUR OPERATIONS
TARGETS

materials from demolition works) in our projects via the Green Initiatives.
PROGRESS 2022

Use of Natural Resources.

most impactful and valuable ideas, and share the lessons learned with our


via QuickScans.

scoring mechanism, which can flag up the reuse of materials.

waste is not always disposed of in a controlled way, ending up in the oceans and in turn,
polluting the coastal environment.
Therefore, prudent waste and resource management is essential for a sustainable future. In order to achieve this goal,
we need to establish a circular economy to successfully manage soil, sediment, water and land to ensure an efficient
use of these vital natural resources. Crucially, we need to find an alternative way of thinking and consider our waste

its projects. Currently, we are mainly focused on minerals (sand, gravel, concrete), metals (steel) and waste.
 OUR 8 KEY SUSTAINABILITY THEMES
DEME ANNUAL REPORT 2022 
Waste and
resource management
WASTE AND
RESOURCE
MANA
GEMENT
BEST PRACTICES 2022

for improving homes for local people

Egypt, DEME partnered with a local
charity to support the community

of improving the living conditions
of people living in poverty in the
region. The Community Development

in a wide variety of different activities
such as creating sewing workshops,
weekly cleanup campaigns, a cow
and sheep breeding project etc.
In line with DEME’s sustainability goals,
the project with the charity focused
on different kinds of waste (plastic,
wood, metal…) which are separated and
recycled locally. Instead of classifying
wood as waste material, the DEME team
investigated the feasibility of recycling
the wood from the project site.
On a regular basis the wood gets
collected and sorted out, allowing
the useable wood to get transported
to the village the charity supports.
Then the recycled wood is used for
new roofs or to replace leaking roofs


with a new watertight roof.

During a campaign to install monopiles
(MP) and transition pieces (TP) a MP
cover is placed on the MP flange after
installation to act as a navigation
beacon and flange protection until
the TP is installed. Prior to the start

cover is removed. Once the second
installation is completed and the TP
has been installed on top of the MP,
a second cover is placed on the TP
flange, a TP cover or a tarpaulin. This
cover protects the inside of the TP.

farm project the DEME team decided
to combine the MP/TP cover, to reduce
the amount of material needed. The
MP cover therefore was designed to be
reused and accommodate a tarpaulin so
it could be placed back on the MP flange
after finalising the TP installation.


operational efficiency by reducing the
time needed during loadout operations.
GREEN
INITIATIVE
GREEN
INITIATIVE

Health and wellbeing
GUARANTEEING PHYSICAL AND
MENTAL HEALTH AND WELLBEING
TARGETS

by organising dedicated campaigns.

in all people management training courses.

programmes for new employees.
PROGRESS 2022

and supported during their first months at DEME. This process
includes a training trajectory, multiple check-ins with their manager
and HR Business Partner, and a dedicated welcome coach.


challenges…). By using this platform, we keep our employees healthy
in a fun and challenging way. One of the campaigns is ‘DEME Heroes’,
whereby employees are encouraged to make a lifestyle switch with the
ultimate goal of improving their physical condition, as well as helping to



common workplace injuries, employees were offered a special desk chair
and screen to enable them to create the optimal home office environment.

including a specific focus on wellbeing.


Due to the nature of our work, many projects take place in challenging and sometimes
dangerous environments. Workplace health, safety and mental wellbeing - for our own people
as well as subcontractors, suppliers, partners and other stakeholders - is an ongoing priority.
To ensure a safe working environment we have introduced the necessary management systems, action plans and dashboards.
For more information we would kindly refer to our dedicated QHSE-S Performance chapter for an overview of our progress.
Our ambition is to prioritise our physical, mental health & wellbeing in order to allow our people to be their best selves on the
project, at the office and everywhere in between.
 OUR 8 KEY SUSTAINABILITY THEMES
DEME ANNUAL REPORT 2022 
HEALTH AND
WELLBEING
160
DIVERSITY
AND INCLUSION
Diversity and opportunity
TARGETS
— To raise awareness about diversity and inclusion throughout
the organisation in (leadership) learning programmes.
— To leverage our 'One DEME, One Team' spirit by building on the rich
diversity of our operational teams and inclusive employee relationships.
— To ensure all our employees have equal opportunities when it comes to
career opportunities and to actively support and guide them in this process.
PROGRESS 2022
— An International Starters’ Guide is offered during the onboarding process
to assist employees joining DEME from abroad as much as possible.
— Dutch classes were provided in Zwndrecht and Breda to ensure
the further integration of non-Dutch speaking employees. In
2022 we welcomed 88 participants, versus 65 in 2021.
— DEME maintained its participation in the project ‘areyouwaterproof.
be – Olivia’ which aims to attract more women into the maritime world.
— An Intercultural Awareness training course was organised as a pilot in
2022. Around 60 people who are involved in our US projects were invited.
The main goal was to increase awareness regarding cross-cultural
communication, helping participants gain more insight into possible cultural
differences, improve collaboration and promote effective communication.
— To determine our current status when it comes to diversity,
equal opportunities and inclusion, a survey was launched (in
combination with the topic of Health and Wellbeing) and focus
groups were organised. Nearly 1,400 surveys were completed.
— We carried out an online recruitment campaign and organised
Career Days with a focus on international profiles.
BREAKDOWN
FEMALE/MALE*
79
DIFFERENT NATIONALITIES
AMONG CREW AND STAFF
NEW HIRES
20%
80
%
1%
Male
Female
4,426
781
We are a project and expertise-driven company which is expanding its activities worldwide.
Talent is a key differentiator, allowing us to offer solutions for global challenges. We believe
that a workplace that not only demonstrates demographic diversity but also leverages
on diversity of thinking and inclusion will help us to face current and future challenges.
Our ambition is to attract, develop and engage our DEME workforce and mitigate employee turnover. By recognising,
respecting and valuing differences and allowing people to be their authentic selves at work, we want to increase the impact a
diverse and inclusive workforce can have on our organisation. We promote an inclusive working environment where everyone
has the same opportunities for promotion, career progression and training, regardless of their gender, age, religion, sexual
orientation, nationality, culture, political conviction, mental or physical ability. We aim to foster an engaged workforce via
a multi-method approach targeting every step of the employee lifecycle. We focus on maximising the inflow of talent and
minimising outflow and make it possible for employees to enjoy a lifelong career at our company.
* based on headcount
SUSTAINABILITY & QHSE OUR 8 KEY SUSTAINABILITY THEMESCHAPTER 05
DEME ANNUAL REPORT 2022 
PERSONAL AND PROFESSIONAL
OPPORTUNITIES
TARGETS

match DEME’s culture and ambitions.


transparency and offering support in terms of:


PROGRESS 2022


nurtures and develops talent throughout all levels of the organisation.


our ambitious, yet authentic, DEME story. Our employee value

tagline which is being used in all recruitment campaigns.


heroes’, presentations, business cases, interviews and networking

they were still interested in DEME as a potential employer.

opportunities, a Career Map for staff was launched, which
was structured per job family and seniority level.

and development, we launched the concept of ‘learning journeys’ for
staff. This structures all our training initiatives in five clusters.

to inform and consult our DEME talents (regarding career map,
leadership development, technical learning journey, etc.).


focusing on accelerating our training opportunities.
DIVERSITY AND
OPPORTUNITY
%
OF THE PERMANENT STAFF
PARTICIPATED IN
THE 'TIME TO' STAFF
PROGRAMME
68%
OF THE PERMANENT CREW
PARTICIPATED IN
THE 'TIME TO' CREW
PROGRAMME

AVERAGE HOURS OF
FORMAL TRAINING PER
PERMANENT EMPLOYEE
SENIORITY
PERMANENT
EMPLOYEES
< 1 year


> 10 years
14%
31%
19%
36%

Ethical business
99%
OF DEME STAFF
COMPLETED COMPLIANCE
TRAINING
%
OF DEME CREW COMPLETED
COMPLIANCE TRAINING
CLEAR GUIDANCE AND HIGH STANDARDS
ONBUSINESS ETHICS AND HUMAN RIGHTS FOR
ALL PARTIES INVOLVED IN OUR OPERATIONS
TARGETS

as our company.

social dialogue.

about ethical awareness.
PROGRESS 2022



started with tool selection where a compliance risk module, as an add-on
to the new Procurement suite, was chosen. Following an intensive technical
design phase with our implementation partner, we have now arrived at


training course for newcomers.

our mandatory e-learning course on business ethics. Following a
specific approach for our crew, tailored to life on board, whereby the


masters and officers trained, we are moving closer to our goal.




to be highly vigilant and make sure that our ethical standards are adhered to at all times.
In line with our ambitions to create a sustainable business for the long-term, with all third parties involved, we aim to conduct
our business with honesty and integrity and actively and proactively prevent corruption or bribery in any form. Ethical
business also includes other topics such as respect for labour and human rights, abolition of child labour, combatting money
laundering, and encouraging fair competition with our stakeholders, etc.
 OUR 8 KEY SUSTAINABILITY THEMES
DEME ANNUAL REPORT 2022 
ETHICAL
BUSINESS
1
CODE OF ETHICS &
BUSINESS INTEGRITY
CODE OF ETHICS &
BUSINESS INTEGRITY
for Business Partners

Local communities
EMPLOYEE ENGAGEMENT IN
COMMUNITY PARTICIPATION
TARGETS


participation.
PROGRESS 2022



activities raised money for a leading cancer charity, Kom op tegen Kanker.

their sleeves to clean up litter from streets, beaches and rivers. Over the

DEME always aims to build collaborative and sustainable relationships with local
communities through consultation, engagement and participation. We want to give
value back to these communities and demonstrate responsible community involvement

DEME SUPPORTS
MERCY SHIPS

partnership with Mercy Ships,
an international NGO operating
private hospital ships along the

teams provide free surgery and
medical training to countries
where resources are scarce.
DEME has been active in dredging
and land reclamation projects

Therefore, it is very pleased to
be able to support an important
humanitarian project on the
continent through this partnership.
With the support of DEME and
other organisations, Mercy
Ships commissioned a second

Port of Dakar. The new vessel
then began operating as a
floating training centre for the
first time, providing a series of
medical training programmes
for healthcare professionals.
‘Global Mercy’ is the largest private
hospital ship in the world with


professional volunteers from around
the world, including surgeons,
mariners, electricians, teachers and
nurses, volunteer their services.
 OUR 8 KEY SUSTAINABILITY THEMES
DEME ANNUAL REPORT 2022 
LOCAL
COMMUNITIES
1. Ok Tedi project
In Papua New Guinea there is an urgent need for improved
governance and investment in the health and educational system,
therefore our colleagues from the local entity Dredeco and the Ok
Tedi project believe that it’s very important to support schools
and healthcare facilities within local communities. Dredeco

employees and indeed, many of their family members, rely on
medical treatment at these facilities from time to time.
The team provides financial support to hospitals and schools such as
the Hymiamrae Elementary School, Matkomnai Healthcare Centre and
the Senamrai Health Care Post by arranging medical equipment and/or
medicines, as well as transport.
For the Rumginae Health Care Worker Training Centre they also provide
funding for new furniture for students and lecturers on a two-year
general nursing course, which is helping to address the critical shortage
of healthcare workers in the country.
The Dredeco team is proud that it can support these invaluable
organisations and help them to continue to offer these vital services to
local communities.


The Groot Onderhoud Vaarwegen
(GOVa) project consists of five locations
in the south of the Netherlands.

berthing and guidance constructions
are being replaced. Most of the
wood is being reused as fenders in

not be reused. Therefore, DEME
was keen to give it a second life.
Four benches are being built by
students of De Lage Waard, a regional
VMBO school and these will be placed
along the nearby footpath. This
project highlights that 'waste' can
be turned into something valuable
and additionally, the initiative
resulted in lower emissions.

children's hospital
On a remediation
project in Scotland,
the team has set up a
system where every
safety observation
card raised leads to

the charity ‘Children's


organisation offers a full
family support service
for babies, children
and young people
with life-shortening


and the fundraising

BEST PRACTICES 2022
GREEN
INITIATIVE

QHSE Performance

continuous improvement. We devote a lot of attention to what
could possibly go wrong and certainly to what goes right.

worked out a communication plan
which started with the traditional
‘New Year’s Resolution’. In May, we
held our ‘Safety Week’ which focused
on the analysis of incidents, near-
misses and dangerous situations
with a high-risk potential. July
and September were marked by
our participation in the World
Environmental and the World Clean-
up Days. The Safety Week resulted
in numerous inspiring best practice
‘Safety Success Stories’ and these are
being shared throughout the Group.
TAKE 5

to Stop’ as common themes


and everyone who works for DEME
to take a few moments to evaluate
any risks that may occur before
they begin operations. The License
to Stop authority gives everybody
the right to stop any activity that
poses a potential danger. The video
message of our CEO speaks for
itself: “Everybody has the right and

Safety DNA


opinion, it is all about caring and
sharing, that’s why DEME encourages
its employees to take care of each
other and share all available data and
know-how regarding operational risk
management. Within DEME we strive
to make the difference by using these

 QHSE PERFORMANCE
DEME ANNUAL REPORT 2022 
Safety Week
The Safety Week is all about High
Potential (HIPO) incidents: to
understand what went wrong, we
thoroughly analysed the near-misses,
dangerous situations, and incidents
with a ‘High Potential’ that happened
during the previous year. DEME has
evaluated and summarised this
valuable data, and asked colleagues
who were involved in HIPO situations


What went wrong or could have gone



discussed during Safety Week.


with an operational link to the
different segments. Various
posters are also available.
Our DEME safety videos are used to
spread the message during hundreds

participants. These videos cover
various topics: maritime operations,
hand injuries, dry earth moving
equipment, use of machinery and
equipment and dropped objects.
Safety Stand Down
The Safety Stand Down focuses
on Lost Time Incidents (LTI). What

Unfortunately, during the first half of


action was urgently needed. Therefore,
a special campaign was launched to
motivate people to take care not
only of themselves, but also of their
team members. Everyone had to ask

During our Safety Stand Down
campaign, which was very successful,
we highlighted the risks related to
hand safety, open floors and hatches,
dropped objects, falls from height and
personnel transfer to and from vessels.
Projects, vessels and operational sites
organised the Stand Downs to outline
the incidents that had happened
and the measures to be taken to
prevent similar situations occurring.

QHSE-S Performance
Dashboard
The DEME QHSE-S Performance
Dashboard looks greener than ever
before. Targets for Green Initiatives,

and inspections have been reached.
Incidents were reported on time and
the related actions were carried out
in good time. The quality of incident
investigations was closely monitored
and highly rated. Unfortunately,
DEME was not able to reach its
ambitious ‘safety thermometer’
target due to an increase in the
number of Lost Time Incidents in
the second quarter of the year.
Therefore, we launched an additional
Safety Stand Down campaign.
Safety Success Stories
Before the launch of the Safety

Success Stories were submitted.
Successes show us what we can be
proud of, what we have achieved and
done in the best possible way, while
failures give us the opportunity to grow
and identify any areas for improvement.

workplace has become safer and can
be a valuable source of inspiration
for everyone within DEME. One of

safety campaign at the Saint-Nazaire
offshore wind farm project which
had a catchy tagline - ‘knowing what
to do is knowing when to stop’. The
communication between the crew


Stories to share during the Safety
Moment Day. Elimination of risks,
hand safety, maritime operations, safe
access, safety by design and lifting
were just some of those highlighted.
We are very proud that one

won
.
Safety Moment Day
In December our annual Safety
Moment Day took place. This not
only told us more about our Safety
Success Stories but also about two
major incidents. Lessons learnt
were successfully communicated
through several sources: firstly, via
e-learning for all of DEME’s operational
leaders and management and
through great initiatives introduced
by the Safety Success Stories.
The video message of

very clear: “When it comes to safety,

 QHSE PERFORMANCE
DEME ANNUAL REPORT 2022 



195
HIPO

participations
timely reported
incidents
timely
closed actions
observations inspections
incident
investigations
HIPO
Lifting Operations 45
Maritime Operations 
Working at height 24
Other activity / Task 19
Transport Operations 
Segment specific 11
Use of machinery & equipment 11
Hot Works 09
Working in confined spaces 06
Working with dry earthmoving equipment 06
Pressurised Works 05
Electrical Works 02
Site & Traffic Management 02
Handling hazardous substances 01
Working in specific conditions (hot, cold, …) 01
W W LT I F R
('SAFETY THERMOMETER')
2.00
1.60
1.20
0.80
0.40
0.00
0.23
DEME
reference
target
0.20
1,453
INCIDENTS

313,454
117,16 4
1,309
1,307.7 2,880
12,1545
7,15 2
9,964
4,790
2,737
2,455.7
2,905
170
Collaboration
with stakeholders
STAKEHOLDER
GROUP
EXPECTATIONS
TOWARDS DEME
OUR ENGAGEMENT TOWARDS
STAKEHOLDER
INTEREST
IN DEME
INFLUENCE
ON DEME
EXAMPLES &
BEST PRACTICES 2022
CLIENTS
Offering most sustainable and innovative
solution to respond to client's expectations.
Educate clients and collect feedback
on sustainability proposal.
Collaborate and partner in industry initiatives.
DEME Offshore has joined the Powering Net Zero Pact initiative together
with a global group of energy sector companies to transition to net
zero. We are participating in the working groups for circular economy
and emissions. More information on the pact can be found at
https://www.sse.com/sustainability/poweringnetzeropact.
EMPLOYEES
Creating healthy & safe working conditions.
Enabling career development.
Informing about key sustainability themes.
HIPO and Green Initiative communications.
Offering more than 600 different training courses.
Providing career development plan.
Creating sustainability awareness.
Creating more transparency with the launch of our internal Career Map for staff
which provides an overview of all available staff positions within DEME. More
information can be found under the theme Diversity & Opportunity in Chapter 5.
Launch of an internal DEME Sustainability Awareness Campaign ‘Everyday
Forward’ to ensure our employees get to know our 8 key sustainability themes.
In case an employee wishes to report or discuss an issue, even anonymously:
—They can talk to our confidential advisors
—They can report the issue to the Compliance@deme-group.com mailbox.
INVESTORS &  
SHAREHOLDERS
Enhance transparency, governance
and management focus.
Better alignment of capital investment
decisions with sustainability strategy
Increase exposure.
Integration of ESG topics in the
long-term strategy.
Disclosure of financial and non-
financial indicators and targets.
Sustainability linked loans.
Code of Ethics and Business Integrity.
Organising Initial Public Offering of DEME as a separately listed company.
We have added a section Investor Relations on our DEME website and will further
develop this section in the coming years.
Organising outreach to investment community:
—The Annual General Meeting of Shareholders;
—Capital Markets Day, investor conferences and roadshows;
—Semester conference calls, one-on-one (virtual) meetings.
More information about our shareholder and investor relations can be found on the
Investor portal.
SUPPLIERS
Improving transparency.
Strengthening long-term relationship.
Sharing a common vision.
Code of Ethics and Business Integrity
for business partners.
Monitoring supplier safety performance.
We include the Code of Ethics and Integrity for business partners in our contracts
with suppliers.
We monitor and evaluate supplier safety performance via our internal audit system.
P U B L I C
AUTHORITIES
Ensuring compliance with legislation.
Ethical business behaviour.
External assurance and audits.
Compliance with ISO standards.
Code of Ethics and Business Integrity.
Follow-up of general sustainability regulatory framework
(CSRD, CSDD, EU Taxonomy...) and sector guidelines.
NGOs &
COMMUNITIES
Building collaboration with shared values.
Strengthening local communities to
sustain projects we complete.
Supporting charitable organisations and
campaigns for local communities.
Supporting social projects around the globe.
Including philanthropy or public-private stakeholder engagement into our projects.
Best practices and more information on local communities can be found in Chapter 5.
PEERS
Shaping a sustainable market. Participation in trade associations. DEME is participating in different sector organisations, as an
example we participate in the Sustainability Committee of IADC
and the Environmental Sustainability Committee of IMCA.
ACADEMICS &
RESEARCHERS
Encouraging sustainable innovation.
Building long-term partnerships and
strengthening collaboration.
Partnerships with universities (guest lectures,
internship support, sponsoring…).
Joint project initiatives.
Thesis support.
Conducting studies with universities.
More information and examples of our partnerships with universities and
research institutions can be found in Chapter 5 under Sustainable Innovation.
SUSTAINABILITY & QHSE COLLABORATION WITH OUR STAKEHOLDERSCHAPTER 05
DEME ANNUAL REPORT 2022 












CLIENTS
Offering most sustainable and innovative

Educate clients and collect feedback
on sustainability proposal.
Collaborate and partner in industry initiatives.
DEME Offshore has joined the Powering Net Zero Pact initiative together
with a global group of energy sector companies to transition to net
zero. We are participating in the working groups for circular economy
and emissions. More information on the pact can be found at
https://www.sse.com/sustainability/poweringnetzeropact.
EMPLOYEES


Informing about key sustainability themes.



Creating sustainability awareness.
Creating more transparency with the launch of our internal Career Map for staff
which provides an overview of all available staff positions within DEME. More



In case an employee wishes to report or discuss an issue, even anonymously:


 
SHAREHOLDERS
Enhance transparency, governance
and management focus.
Better alignment of capital investment
decisions with sustainability strategy

Integration of ESG topics in the
long-term strategy.
Disclosure of financial and non-
financial indicators and targets.
Sustainability linked loans.
Code of Ethics and Business Integrity.
Organising Initial Public Offering of DEME as a separately listed company.
We have added a section Investor Relations on our DEME website and will further
develop this section in the coming years.
Organising outreach to investment community:



More information about our shareholder and investor relations can be found on the
Investor portal.
SUPPLIERS
Improving transparency.
Strengthening long-term relationship.
Sharing a common vision.
Code of Ethics and Business Integrity
for business partners.
Monitoring supplier safety performance.
We include the Code of Ethics and Integrity for business partners in our contracts
with suppliers.
We monitor and evaluate supplier safety performance via our internal audit system.
P U B L I C
AUTHORITIES
Ensuring compliance with legislation.
Ethical business behaviour.

Compliance with ISO standards.
Code of Ethics and Business Integrity.
Follow-up of general sustainability regulatory framework

NGOs &
COMMUNITIES
Building collaboration with shared values.
Strengthening local communities to
sustain projects we complete.
Supporting charitable organisations and

Supporting social projects around the globe.
Including philanthropy or public-private stakeholder engagement into our projects.

PEERS
Shaping a sustainable market. Participation in trade associations. DEME is participating in different sector organisations, as an


ACADEMICS &
RESEARCHERS
Encouraging sustainable innovation.
Building long-term partnerships and
strengthening collaboration.
Partnerships with universities (guest lectures,
internship support, sponsoring…).

Thesis support.
Conducting studies with universities.


As a global company
operating in many different
markets and locations, it
is essential to maintain
good working relationships
with all our stakeholders.
DEME strongly believes in joining forces to enlarge the overall
sustainability impact. Our approach is to participate in multistakeholder
partnerships and inter- and intra-industry collaborations to drive
the transition towards holistic, sustainable solutions.
An extensive list of partnerships related to energy and emissions
reduction is available on our website, www.deme-group.com.

EU Taxonomy

sustainable economic activities. The goal of this new European legislation is
to play an important role in helping the EU scale up sustainable investment
and to support the implementation of the European Green Deal.

is reporting according to the EU

with the Non-Financial Reporting

Regulation. DEME performed an
eligibility assessment based on the

Climate Change Mitigation (CCM)



activities of the total turnover, capital


DEME performed an alignment

activities to disclose the share of

The assessments were carried out on

from the investigation of the final
project purpose, connecting it with
the relevant contributing sector,


evaluation of the Do Not Significant
Harm (DNSH) criteria. Finally,
compliance with the Minimum Social
Safeguards has been verified.
The calculation of the proportion of

activities in turnover is based on
DEME’s official IFRS reporting as




The table below summarises
the results of these evaluations.












2022 2021 2022 2021 2022 2021
     0 /

– Climate Change Mitigation

– Climate Change Mitigation
B. Taxonomy non-eligible activities     100 /
 100 100 100 100 100
C. Taxonomy-aligned activities     0 /
D. Taxonomy non-aligned activities     100 /
 100 100 100 100 100
29%
directly related to DEME’s activities making a substantial contribution to climate change mitigation and
includes projects for the construction and installation of foundations and wind turbines and their shore
connections, as well as projects for railway tunnel infrastructure. 26% of the total turnover is aligned.
52%
comprises tangible and intangible assets directly related to DEME’s eligible and aligned activities.
 EU TAXONOMY
DEME ANNUAL REPORT 2022 
Certificates,
awards & ratings

DEME meets international and local legal regulations but
it always aims to operate at higher standards than only
meeting the mandatory requirements. DEME holds an ISO

All certified entities are compliant with the following standards:

—

—

—
Safety Management Systems

—
Additionally, local certificates are in place, such as:
CO Performance Ladder

Working together to cut CO
2
174
SUSTAINABILITY & QHSE CERTIFICATES, RATINGS & AWARDSCHAPTER 05
Recognitions & Awards
— DEME Building Materials obtained the CSC Certificate for responsibly sourced marine aggregates with a
score of 91.85, the highest score for marine aggregates to date under the CSC certification system.
— DEME received the 2022 IADC Safety Award for its retractable ladder for track excavators
which provides a safe way for the operator to step on and off the machinery.
— DEME has won the first Trends Global Impact Awards, the most prestigious awards
in Belgium for companies that create sustainable value for society.
— DEME also received the International Marine Contractors Association (IMCA) Award for its internal Environmental
Campaign. This campaign aimed to increase environmental awareness and encouraged project sites, vessels and
offices worldwide to take action on seven themes, from energy consumption to preventing water or soil emissions.
— DEME received the Corporate Blue Innovation Wave Award for the groundbreaking drilling solution to
install foundations at wind farms in a rocky seabed and the successful completion of the Saint-Nazaire
wind farm. This technology enables us to install offshore wind farms directly into rock in an economical
and environmentally friendly manner, where conventional installation methods are not suitable. With this
expertise we can carry out installation works in similar challenging conditions across the globe.
Environmental, social, and
corporate governance (ESG) Ratings
DEME’s sustainability performance has been assessed by multiple ESG analysts. The ESG ratings
indicate the sustainability performance of a company based on publicly available information.
During 2022, we maintained or improved our positioning in the ESG ratings as shown in the table below.
Rating
scale
Rating
score
2022
Rating
score
2021
Rating
score
2020
Sector
ranking
2022
Sector
average
rating 2022
DEME
Trend
vs 2021
CDP* (D<A) B C - - C Positive
Ecovadis* (0<100) Gold (71) Silver (63) - - 45 Positive
Sustainalytics** (100<0) 26,1***
Medium risk
27,8***
Medium risk
- 21
st
Construction
& engineering"
- Positive
MSCI (CCC<AAA) AA AA*** BBB*** - - Stable
* The scope is limited to the company DEME Offshore.
** The Sustainalytics ESG Rating gives a lower score to companies with less exposure and better management of their ESG risks.
*** Scores given are covering the scope of the CFE Group before DEME's separate listing.
DEME ANNUAL REPORT 2022 


the most prestigious awards in
Belgium for companies that create
sustainable value for our society with
their projects. In addition to that we
were also awarded the Trends Impact

Back in September, DEME was
nominated based on a submission
about the transformation of DEME
from a dredging company with more

a provider of sustainable solutions
for global challenges such as
greenhouse gas emissions, rising
sea levels, a growing population and
polluted soils, rivers and seas.
To illustrate this transformation,
DEME put forward its pioneering role in
unique sustainable business solutions
such as building offshore wind farms,
developing green hydrogen production
facilities and energy islands in addition
to its investments and research and
development efforts in soil recycling
centres, sustainable coastal and
riverbank protection and major
infrastructure works for rail traffic.

solutions, we also demonstrated
the progress we made in our

with well-defined sustainability
programmes connecting ambitions
with clear targets, action plans
and performance indicators in a
coherent and structured way.
We see this as a 'journey' where we
have already taken a lot of steps but of
course, we will continue to work steadily
in the coming years to do better



There are four main layers within our governance structure:


Good governance
every step of the way


EXPLORE SUSTAINABLE
BUSINESS SOLUTIONS

OURSELVES TO DEVELOP MORE

01 02
TO EXCEL IN
OUR OPERATIONS

PERFORMANCE IN

Executive Committee

and approves our sustainability programmes,
along with the related objectives and targets.
The progress is discussed at Board meetings.
Sustainability Board
The Sustainability Board provides guidance on
both strategic and operational sustainability
topics to ensure that any decisions are aligned
with our values, sustainability strategy and

every two months to evaluate the sustainability
performance of our project portfolio and the
progress made towards our objectives from
both a strategic and operational perspective.
Sustainability Team
The Sustainability Team is responsible
for embedding sustainability into
our business operations.
Process Owners

and Theme Leads within the supporting
services have been appointed to support the
further implementation of the operational
sustainability objectives, targets and measures

every segment has its own Tender Sustainability
Single Point of Contacts (SPOCs) to serve
as a first point of contact for sustainability
related questions in tender phase.
 GOOD GOVERNANCE EVERY STEP OF THE WAY
CEO Luc Vandenbulcke – Executive Director
Other members Christopher Iwens – Managing Director Dredging Koen Vanderbeke – Strategic Operations Director
Els Verbraecken – Chief Financial Officer Jiska Verhulst – Sustainability Director
Eric Tancré – Managing Director Dredging, Managing Director Infra Olivier Maes – Strategic Planning & Growth Director
Jan Gabriel – Head of Fleet Construction & Conversion Department Dirk Poppe – Area Director Asia Pacific,
Managing Director Environmental
Hans Casier – Chief Human Resources Officer Hugo Bouvy – Managing Director Offshore Energy
DEME ANNUAL REPORT 2022 
FINANCIAL
REPORT
06
CHAPTER
I love the entrepreneurial spirit within
the DEME Group, it leaves room for
creativity and self-development.
CLAUDE PANNIER
|


TABLE OF
CONTENTS
CHAPTER 06 — FINANCIAL REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
Consolidated Statement of Income ........................................... 182
Consolidated Statement of Comprehensive Income
...... 183
Consolidated Statement of Financial Position
.................... 184
Consolidated Statement of Cash Flows
................................... 186
Consolidated Statement of Changes in Equity
................... 187
Segment Reporting
.............................................................................. 188
Summary of Principal Accounting Policies
............................ 192
Group Structure and changes in the reporting period
.. 204
Comparative Financial Statement Analysis
.......................... 211
Explanatory Notes to the Consolidated Financial
Statements
................................................................................................ 217
note (1) Turnover and orderbook
........................................ 217
note (2) Other operating income and expenses
........ 219
note (3) Personnel expenses and employment
.......... 220
note (4) Intangible assets
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220
note (5) Goodwill
............................................................................ 222
note (6) Property, plant and equipment
......................... 223
note (7) Right-of-use assets
.................................................. 225
note (8) Investments in joint ventures and
associates
....................................................................... 227
note (9) Other non-current assets
....................................231
note (10) Current taxes and deferred taxes
. . . . . . . . . . . . . . . . . . . 232
note (11) Inventories
...................................................................... 236
note (12) Contract assets and contract liabilities
...... 236
note (13) Trade and other operating receivables
........ 239
note (14) Assets held for sale
................................................... 240
note (15) Other current assets
............................................... 240
note (16) Share capital, dividends and reserves
.......... 241
note (17) Earnings per share
..................................................... 242
note (18) Interest-bearing debt and net financial
debt
..................................................................................... 243
note (19) Financial risk management and financial
derivatives
...................................................................... 246
note (20) Lease liabilities
............................................................256
note (21) Retirement benefit obligations
........................ 257
note (22) Other current liabilities
.......................................... 259
note (23) Provisions and contingent assets and
liabilities
........................................................................... 259
note (24) Working capital
.......................................................... 260
note (25) Rights and commitments not reflected
in the balance sheet
.................................................. 262
note (26) Related party disclosures
..................................... 262
note (27) Auditor remuneration
............................................. 263
note (28) Events after the reporting period
................. 264
Management Declaration
................................................................. 265
Independent Auditor's Report
......................................................266
PARENT COMPANY
FINANCIAL STATEMENTS
Introduction ............................................................................................... 270
Statement of Financial Position
................................................... 270
Statement of Income
........................................................................... 271
Summary of the annual report of the Board
of Directors
................................................................................................ 272
Appropriation account
....................................................................... 272
Interests in share capital
................................................................... 272
CHAPTER 06
Notes
2022 2021
REVENUES 2,710,796 2,580,773
Turnover (1) 2,654,725 2,510,607
Other operating income (2) 56,071 70,166
OPERATING EXPENSES -2,555,560 -2,437,492
Raw materials, consumables, services and subcontracted work -1,704,618 -1,575,624
Personnel expenses (3) -505,743 -488,896
Depreciation and amortisation expenses (4)/(6)/(7) -318,240 -291,108
Impairment of property, plant and equipment and right-of-use assets (6)/(7) -430 -34,608
Impairment of goodwill and intangible assets (4)/(5) - -311
Other operating expenses (2) -26,529 -46,945
OPERATING RESULT 155,236 143,281
FINANCIAL RESULT (*) -24,311 -5,412
Interest income 6,026 4,181
Interest expense -14,914 -6,920
Realised/unrealised foreign currency translation effects -11,134 6,130
Other financial income and expenses -4,289 -8,803
RESULT BEFORE TAXES 130,925 137,869
Current taxes and deferred taxes (10) -31,361 -31,079
RESULT AFTER TAXES 99,564 106,790
Share of profit (loss) of joint ventures and associates (8) 15,827 10,548
RESULT FOR THE PERIOD 115,391 117,338
Attributable to non-controlling interests 2,671 2,757
SHARE OF THE GROUP 112,720 114,581
Number of shares (17) 25,314,482 4,538,100
Earnings per share (basic and diluted) (17) 4.45 25.25
(*) Net financial result of the year amounts to -24.3 million EUR. More information about the evolution of the financial income and financial expenses is given in the
comparative financial statement analysis.
CONSOLIDATED STATEMENT OF INCOME
As of December 31 (in thousands of EUR)
CONSOLIDATED FINANCIAL STATEMENTS
182 CONSOLIDATED FINANCIAL STATEMENTS
Notes
2022 2021
Result attributable to non-controlling interests (*) 2,671 2,757
Share of the Group 112,720 114,581
RESULT FOR THE PERIOD 115,391 117,338
Other comprehensive income that may be
reclassified to profit or loss in subsequent periods
Changes in fair value related to hedging instruments (19) 45,455 4,582
Share of other comprehensive income of joint-ventures and associates (8) 50,416 10,343
Changes in cumulative translation adjustment reserve 3,101 3,855
Other comprehensive income that cannot be
reclassified to profit or loss in subsequent periods
Remeasurement of net liabilities relating to defined benefit plans (21) 3,953 -846
Share of other comprehensive income of joint-ventures and associates (8) 100 27
TOTAL OTHER COMPREHENSIVE INCOME 103,025 17,961
TOTAL COMPREHENSIVE INCOME 218,416 135,299
Attributable to non-controlling interests 3,168 2,827
SHARE OF THE GROUP 215,248 132,472
(*) In both 2022 and 2021 an amount of 2.6 million EUR is coming from the Environmental segment.
CONSOLIDATED STATEMENT
OF COMPREHENSIVE INCOME
As of December 31 (in thousands of EUR)
DEME ANNUAL REPORT 2022 183
CHAPTER 06
ASSETS
Notes
2022 2021
NON-CURRENT ASSETS 2,969,289 2,694,235
Intangible assets (4) 24,315 25,513
Goodwill (5) 13,028 13,028
Property, plant and equipment (6) 2,422,048 2,259,041
Right-of-use assets (7) 98,994 90,620
Investments in joint ventures and associates (8) 202,748 132,781
Other non-current financial assets (9) 32,540 33,451
Non-current financial derivatives (19) 39,336 613
Interest rate swaps 39,127 -
Forex/fuel hedges 209 613
Other non-current assets (9) 11,892 4,239
Deferred tax assets (10) 124,388 134,949
CURRENT ASSETS 1,540,489 1,355,362
Inventories (11) 25,696 12,168
Contract assets (12) 344,751 326,685
Trade and other operating receivables (13) 469,529 384,022
Current financial derivatives (19) 22,022 3,207
Interest rate swaps 17,638 -
Forex/fuel hedges 4,384 3,207
Assets held for sale (14) 31,997 32,456
Other current assets (15) 124,233 68,192
Cash and cash equivalents (18)/(19) 522,261 528,632
TOTAL ASSETS 4,509,778 4,049,597
CONSOLIDATED STATEMENT
OF FINANCIAL POSITION
As of December 31 (in thousands of EUR)
184 CONSOLIDATED FINANCIAL STATEMENTS
GROUP EQUITY AND LIABILITIES
Notes
2022 2021
SHAREHOLDERS' EQUITY (16) 1,753,947 1,579,543
Issued capital 33,194 31,110
Share premium 475,989 5,645
Retained earnings and other reserves 1,218,272 1,618,824
Hedging reserve 70,020 -25,872
Remeasurement on retirement obligations -37,458 -41,283
Cumulative translation adjustment -6,070 -8,881
NON-CONTROLLING INTERESTS 22,318 19,696
GROUP EQUITY 1,776,265 1,599,239
NON-CURRENT LIABILITIES 1,015,460 786,718
Retirement obligations (21) 60,523 65,267
Provisions (23) 42,985 39,572
Interest-bearing debt (18) 789,904 577,970
Non-current financial derivatives (19) 53,661 26,868
Interest rate swaps - 2,608
Forex/fuel hedges 53,661 24,260
Other non-current financial liabilities (8) 1,238 2,827
Deferred tax liabilities (10) 67,149 74,214
CURRENT LIABILITIES 1,718,053 1,663,640
Interest-bearing debt (18) 252,870 343,340
Current financial derivatives (19) 31,579 12,368
Interest rate swaps - 1,892
Forex/fuel hedges 31,579 10,476
Provisions (23) 4,714 3,738
Contract liabilities (12) 323,300 181,095
Advances received (12) 72,539 101,067
Trade payables 777,705 772,905
Remuneration and social debt 98,793 94,026
Current income taxes (10) 66,571 76,370
Other current liabilities (22) 89,982 78,731
TOTAL LIABILITIES 2,733,513 2,450,358
TOTAL GROUP EQUITY AND LIABILITIES 4,509,778 4,049,597
DEME ANNUAL REPORT 2022 185
CHAPTER 06
Notes
2022 2021
CASH AND CASH EQUIVALENTS, OPENING BALANCE 528,632 621,937
Operating result 155,236 143,281
Dividends from participations accounted for using the equity method (8) 10,651 10,479
Reclassification of (income) loss from sales of property, plant and equipment and financial
participations to cash flow from divestments
-5,692 -16,159
Interest received 6,026 4,181
Interest paid -15,653 -4,383
Foreign currency translation effects and other financial income (costs) -15,423 -2,673
Income taxes paid (10) -42,962 -38,422
NON-CASH ADJUSTMENTS 319,293 344,052
Depreciation and amortisation expenses 318,240 291,108
Impairment of property, plant and equipment and right-of-use assets 430 34,608
Impairment of goodwill and intangible assets - 311
(Decrease) increase of retirement obligations (21) 505 1,146
(Decrease) increase of provisions (2)/(23) -1,034 13,013
Other non-cash operating expenses (income) (*) 1,152 3,866
CASH FLOW FROM OPERATING ACTIVITIES BEFORE CHANGES IN WORKING CAPITAL 411,476 440,356
CHANGES IN WORKING CAPITAL 24,893 -20,782
Decrease (increase) in inventories and advances received -42,056 38,773
Decrease (increase) in amounts receivable -85,874 -90,181
Decrease (increase) in contract assets -18,066 -74,938
Increase (decrease) in current liabilities (other than borrowings) 28,684 81,268
Increase (decrease) in contract liabilities 142,205 24,296
CASH FLOW FROM OPERATING ACTIVITIES 436,369 419,574
INVESTMENTS -512,855 -298,660
Acquisition of intangible assets -2,115 -1,908
Acquisition of property, plant and equipment (6) -481,807 -280,136
Cash (out) inflows on acquisition of subsidiaries 4,433 -
Cash (out) inflows on acquisition of associates and joint ventures (8) -22,667 -15,632
New borrowings given to joint ventures and associates (9) -10,097 -595
Cash outflows of other financial assets (9) -602 -389
DIVESTMENTS 24,001 32,248
Sale of intangible assets - -
Sale of property, plant and equipment (6) 8,320 28,446
Cash (out) inflows on disposal of subsidiaries 965 -
Cash (out) inflows on disposal of associates and joint ventures (8) - -2,539
Repayment of borrowings given to joint ventures and associates (9) 14,716 6,341
Cash inflows of other financial assets - -
CASH FLOW (USED IN) / FROM INVESTING ACTIVITIES (**) -488,854 -266,412
New interest-bearing debt (18) 465,000 51,344
Repayment of interest-bearing debt (18) -380,488 -278,875
Gross dividend paid to the shareholders (16) -40,843 -20,421
Gross dividend paid to non-controlling interests -504 -
CASH FLOW (USED IN) / FROM FINANCIAL ACTIVITIES 43,165 -247,952
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS -9,320 -94,790
Impact of exchange rate changes on cash and cash equivalents 2,949 1,485
CASH AND CASH EQUIVALENTS, ENDING BALANCE 522,261 528,632
(*) Other non-cash operating expenses (income) mainly relate to bad debt allowances and the gain or losses resulting from the time value of financial derivative
instruments.
(**) The amounts of cash flow from investments and divestments can differ from the amounts invested or divested in the notes to which reference is made, due to
non-cash corrections such as additions of the year that are not yet paid for.
CONSOLIDATED STATEMENT
OF CASH FLOWS
As of December 31 (in thousands of EUR)
186 CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY
2022
(in thousands of EUR)
Share capital and
share premium
Hedging
reserve
Remeasurement
on retirement
obligations
Retained
earnings and
other reserves
Cumulative
translation
adjustment
Shareholders'
equity
Non-
controlling
interests
Group equity
Ending, December 31, 2021 36,755 -25,872 -41,283 1,618,824 -8,881 1,579,543 19,696 1,599,239
Impact IFRS amendments - - - - - - - -
Opening, January 1, 2022 36,755 -25,872 -41,283 1,618,824 -8,881 1,579,543 19,696 1,599,239
Profit - - - 112,720 - 112,720 2,671 115,391
Other comprehensive income - 95,892 3,825 - 2,811 102,528 497 103,025
Total comprehensive income - 95,892 3,825 112,720 2,811 215,248 3,168 218,416
Dividends paid - - - -40,843 - -40,843 -504 -41,347
Other 472,428 - - -472,429 - -1 -42 -43
Ending, December 31, 2022 509,183 70,020 -37,458 1,218,272 -6,070 1,753,947 22,318 1,776,265
Share capital amounts to 31,110 thousand EUR and share premium amounts to 5,645 thousand EUR in 2021 and up to June 29, 2022
before partial demerger of CFE NV. After partial demerger of CFE NV, a new holding company DEME Group NV replaces DEME NV and
the equity components of the new parent company are now reflected in the DEME Group consolidated figures. After partial demerger
of CFE NV, share capital amounts to 33,194 thousand EUR and share premium amounts to 475,989 thousand EUR. This is reflected
in the line ‘Other’ as a transfer between retained earnings and other reserves and share capital and share premium. Reference is also
made to note (16) Share capital, dividends and reserves.
The hedging reserve includes the fair value fluctuations of effective cash flow hedges, net from income taxes. Reference is made to
note (19) Financial risk management and financial derivatives. The general increase in market interest rates compared to the hedged
interest rates had a positive impact on the hedging reserve. The movement of the year, 95.9 million EUR, also includes the changes in
the hedging reserve for joint ventures and associates (50.4 million EUR) for which reference is made to note (8). Some joint ventures
and associates, mainly in the DEME Concessions segment, finance significant assets such as infrastructure works, offshore wind
farms or vessels and therefore hold interest rate swaps (IRS).
Remeasurement on retirement obligations relates to the defined benefit plans (including the Belgian contribution-based plans
which are considered to be defined benefit plans under IFRS) actuarial gains/losses (-) and asset limitation, after income taxes. For
more information, reference is made to note (21) Retirement benefit obligations, where the remeasurement is shown before income
taxes.
Retained earnings and other reserves include the revaluation surplus, legal reserve, available reserves, untaxed reserves and
retained earnings of the parent company, before result appropriation of the year, as well as the consolidation reserves. More detail can
be found in note (16) Share capital, dividends and reserves.
Non-controlling interests totalling 22.3 million EUR at December 31, 2022, are related to the Environmental segment for an amount
of 18.9 million EUR and to the Dredging & Infra segment for an amount of 2.8 million EUR.
2021
(in thousands of EUR)
Share capital and
share premium
Hedging
reserve
Remeasurement
on retirement
obligations
Retained
earnings and
other reserves
Cumulative
translation
adjustment
Shareholders'
equity
Non-
controlling
interests
Group equity
Ending, December 31, 2020 36,755 -40,978 -40,454 1,524,664 -12,495 1,467,492 17,840 1,485,332
Impact IFRS amendments - - - - - - - -
Opening, January 1, 2021 36,755 -40,978 -40,454 1,524,664 -12,495 1,467,492 17,840 1,485,332
Profit - - - 114,581 - 114,581 2,757 117,338
Other comprehensive income 15,106 -829 - 3,614 17,891 70 17,961
Total comprehensive income - 15,106 -829 114,581 3,614 132,472 2,827 135,299
Dividends paid - - - -20,421 - -20,421 -1,008 -21,429
Other - - - - - - 37 37
Ending, December 31, 2021 36,755 -25,872 -41,283 1,618,824 -8,881 1,579,543 19,696 1,599,239
DEME ANNUAL REPORT 2022 187
CHAPTER 06
SEGMENT REPORTING
DESCRIPTION OF OPERATING SEGMENTS
DEME has evolved into a global marine sustainable
solutions provider organised around four distinct
segments. For management purposes, the Group is
organised into four business units based on its products
and services. The four reportable segments are:
OFFSHORE ENERGY
This segment provides engineering and contracting
services globally in the offshore renewables and oil & gas
industry. Those activities are executed with specialised
offshore vessels. In the offshore renewables, the Group
is involved in the full Balance of Plant scope for offshore
wind farms. This includes the engineering, procurement,
construction and installation of foundations, turbines,
inter-array cables, export cables and substations.
The Group also offers operations and maintenance,
logistics, repair and decommissioning as well as
salvage services to the market. In the oil & gas industry,
the Group performs landfalls and civil works, rock
placement, heavy lift, umbilicals, as well as installation
and decommissioning services. In addition to these
main activities, the Group also provides specialised
offshore services, including geoscience services and the
installation of suction pile anchors and foundations.
DREDGING & INFRA
In this segment the Group performs a wide variety
of dredging activities worldwide, including capital
and maintenance dredging, land reclamation, soil
improvement, port construction, coastal protection
and beach nourishment works. These activities are
executed with specialised dredging vessels and
various types of auxiliary vessels and earth-moving
equipment. The Group also provides contracting
services for marine infrastructure projects. This
includes the engineering, design and construction
of complex marine structures such as jetties, port
terminals, locks and weirs, infrastructural works
such as bored and immersed tunnels, foundation and
marine works for bridges or other constructions in
a marine or fluvial environment, and civil works for
harbour construction, dams and sea defences, canal
construction, revetment, quay wall construction and
shore protection. In addition, the Group is active in the
marine aggregate business, which includes dredging,
processing, storage and transport of aggregates. Finally,
the Group provides maritime services for port terminals.
ENVIRONMENTAL
The Environmental segment focuses on innovative
environmental solutions for soil remediation and
brownfield redevelopment, environmental dredging
and sediment treatment and water treatment. It is
mainly active in the Benelux, France, as well as in other
European countries on a project- by-project basis. An
external partner participates in the Environmental
segment. The segment can be considered as a
material partly owned aggregated level of subsidiaries
with non-controlling interests of 25.1%.
CONCESSIONS
The Concessions segment, unlike the contracting
segments, invests in and develops projects in wind,
port infrastructure, green hydrogen and other special
projects. It operates through participations in special
purpose companies – greenfield and brownfield. Besides
creating economic value on its projects and generating
equity returns on its investments, it also aims to
secure regular activities for the Group contracting
activities in the EPC phases of its projects. Within its
concessions activities, the Group holds also concessions
of seabed areas which contain polymetallic nodules
and develops a technology to collect and process
these polymetallic nodules containing nickel, cobalt,
manganese and copper from the deep ocean floor.
Each of the four abovementioned segments has its own
market, asset base and revenue model and is managed
separately requiring different strategies. Dredging
& Infra activities are complementary as the marine
infrastructure works that DEME Infra undertakes are
often combined with a dredging or land reclamation
scope. The Offshore Energy segment is involved in and
serves the offshore energy industry, both renewables
and oil & gas sectors. The Environmental segment
focuses on environmental solutions. The Concessions
segment, unlike the contracting segments, invests
in and develops projects in wind, port infrastructure,
green hydrogen and other special projects.
The segment reporting comprises financial information
of these four segments that are separate operating
segments. On a quarterly basis, separate operating
results are prepared and reported to the Chief
Operating decision maker, the DEME Executive
Committee, as well as the Board of Directors.
For the segment reporting, some activity lines, that
are the lowest level of reportable activities within
DEME, are aggregated. As such the activities of CTOW
(maritime services for port terminals) and DBM (marine
aggregate business) are aggregated in the Dredging &
Infra segment. The works performed by Scaldis (salvage
works) are aggregated in the Offshore Energy segment.
The reporting of the management accounts (reporting
on operating results) is an integral part of the financial
reporting. At any time, the consolidated management
report can be reconciled with the consolidated financial
statements, both resulting in the same IFRS net
result of the year (as such one version of the truth).
188 CONSOLIDATED FINANCIAL STATEMENTS
The Group’s company structure is mostly, but not
completely, built around the different segments. It
is possible that a company of the Group is executing
projects in both the Dredging & Infra and Offshore
Energy segment and also one project can trigger
cost and income in different companies of the Group
worldwide. The DEME operational and management
structure however is aligned with the DEME operational
segments as well as the management reporting that
is based on a worldwide uniform analytical accounting
system. The analytical result by company, that gives a
breakdown by project and cost center, is the basis for
the segment reporting that can always be reconciled
with the income statement of the company.
For projects in which two segments are involved (for
instance an offshore contract with a dredging scope),
the segments only report their own share in revenue
and result. When one segment is working for another
segment as a subcontractor or when a segment hires
equipment to use on projects that is dedicated to another
segment, this is remunerated at arm’s length basis.
Inter-segment revenues are included in the revenues of
the segment performing the work, but are eliminated in
the segment that is invoicing to the external customer.
Currently intercompany sales for major projects are
within the same segment (dredging and infrastructure
works; offshore and salvage works) so there is no
inter-segment revenue to report on separately.
For each segment the turnover, EBITDA, depreciation
and impairment cost and EBIT is reported. For the
Concessions segment these measures of performance
are only applicable to the subsidiaries (fully consolidated
entities included in this segment). As the business
of the Concessions segment is often resulting in a
minority stake in participations, the operating result
of these participations is reflected in the result from
associates and joint ventures that is also segmented.
The basis for the segment reporting is the management
reporting system. Next to all activities done by our
subsidiaries, the management report also includes the
projects executed by joint ventures, showing the DEME’s
share of revenues and expenses in the joint venture. This
proportionate consolidation method whereby the Group
accounts for the assets, liabilities, revenues and expenses
according to its share in the joint venture, is not allowed
under IFRS for joint ventures. Management however has
to monitor the performance of the entire business, both
executed in control as in a joint venture. In the segment
reporting the joint ventures are consolidated according
to the proportionate consolidation method and the
intercompany transactions between the joint ventures
and DEME subsidiaries are eliminated following the rules
of proportionate consolidation. The total of the reported
segment amounts is reconciled with the corresponding
amounts in the DEME consolidated financial statements.
The Share of the Group (IFRS net result) is not affected
by the difference in consolidation method, only the
presentation of the result of the year is different.
As for the net result from joint ventures and associates
and the carrying amount of joint ventures and
associates, the reconciliation column includes the
net result and carrying amount of joint ventures that
are consolidated according to the equity method
in the financial statements but according to the
proportionate consolidation method in the segment
reporting. Reference is made to note (8) for more
information about joint ventures and associates.
DEME’s management reporting focuses on both the
current and future (financial) performance and on the
current and future assets deployed for the execution
of projects. The financing activities and monitoring
of our working capital is performed centrally at DEME
group level, and therefore no segmented financial
information is presented for those activities.
The segmentation of DEME’s fleet is done based
upon the nature of the equipment dedicated to a
specific segment. An overview of the DEME fleet
per nature is attached earlier in the annual report.
A geographical segmentation of the fleet is not
applicable for DEME as its vessels are continuously
working on different projects around the world.
DEME ANNUAL REPORT 2022 189
CHAPTER 06
2022
(in thousands of EUR)
Offshore
Energy
Dredging
& Infra
Environmental Concessions
Tot al
Segments
Recon ciliation
Group
Financial
Statements
Turnover 957,810 1,524,316 206,336 2,214 2,690,676 -35,951 2,654,725
EBITDA 221,967 254,889 24,974 -12,675 489,155 -15,249 473,906
Depreciation and& Impairment -104,851 -210,002 -8,502 -61 -323,416 4,746 -318,670
EBIT 117,116 44,887 16,472 -12,736 165,739 -10,503 155,236
Financial result -25,490 1,179 -24,311
RESULT BEFORE TAXES 140,249 -9,324 130,925
Current taxes and deferred taxes -34,498 3,137 -31,361
Net result from joint ventures and associates 26 108 547 9,255 9,936 5,891 15,827
RESULT FOR THE PERIOD 115,687 -296 115,391
Attributable to non- controlling interests 2,967 -296 2,671
NET RESULT SHARE OF THE GROUP 112,720 - 112,720
Net book value intangible assets 14,488 8,112 1 1,744 24,345 -30 24,315
Net book value property,
plant and equipment and right-of-use assets
1,168,802 1,375,574 55,306 159 2,599,841 -78,799 2,521,042
Carrying amount of joint ventures and associates 27 5,471 3,135 98,258 106,891 94,619 201,510
Booked as non-current asset 27 5
,
471 3
,
135 99
,
496 108
,
129 94
,
619 202
,
748
Booked as non-current financial liability (- is credit) - - - -1
,
238 -1
,
238 - -1
,
238
Acquisition of property, plant and equipment
and right-of-use assets (*)
351,501 170,877 19,630 87 542,095 -14,062 528,033
Capital investments in joint ventures and
associates
- - - 18,771 18,771 3,893 22,664
(*) Acquisitions according to balance sheet (rollforward property, plant and equipment and right-of-use assets) and not according to cash flow statement.
FINANCIAL INFORMATION OF OPERATING SEGMENTS
The financial information disclosed in the segment
reporting (using the proportionate consolidation
method for joint ventures) is reconciled with the financial
information as reported in the consolidated statement
of financial position and the consolidated statement
of income (using the equity consolidation method as
required under IAS 28) above. The impact of the different
consolidation method for joint ventures is included in the
‘Reconciliation’ column. The proportionate (line-by-line)
integrated amounts of joint ventures are deducted and
replaced by the Group’s share in the result of the joint
ventures. In addition, turnover of fully consolidated
entities towards joint ventures (that is proportionally
eliminated in the segment reporting), is added again
to the turnover in the Group financial statements, as
this turnover is not eliminated any longer when joint
ventures are consolidated according to the equity
method. Therefore the ratio between EBITDA/EBIT and
turnover of the ‘Reconciliation’ column is not reflecting
the ratio of the joint ventures itself. Associates are
consolidated according to the equity method in both the
segment reporting and the Group financial statements.
The lines referring to ‘Net result from joint ventures
and associates’ or ‘Capital investments in joint ventures
and associates’ in the segment reporting only include
associates, while the joint ventures are added in the
reconciliation items. Reference is made to note (8) for
more information about joint ventures and associates.
190 CONSOLIDATED FINANCIAL STATEMENTS
2021
(in thousands of EUR)
Offshore
Energy
Dredging
& Infra
Environmental Concessions
Tot al
Segments
Recon ciliation
Group
Financial
Statements
Turnover 916,354 1,478,306 166,163 1,467 2,562,290 -51,683 2,510,607
EBITDA 170,888 305,848 16,834 -12,529 481,041 -11,733 469,308
Depreciation & Impairment -96,277 -231,806 -8,037 -89 -336,209 10,182 -326,027
EBIT 74,611 74,042 8,797 -12,618 144,832 -1,551 143,281
Financial result -7,447 2,035 -5,412
RESULT BEFORE TAXES 137,385 484 137,869
Current taxes and deferred taxes -31,637 558 -31,079
Net result from joint ventures and associates - 1 624 11,068 11,693 -1,145 10,548
RESULT FOR THE PERIOD 117,441 -103 117,338
Attributable to non-controlling interests 2,860 -103 2,757
NET RESULT SHARE OF THE GROUP 114,581 - 114,581
Net book value intangible assets 17,084 8,462 2 - 25,548 -35 25,513
Net book value property,
plant and equipment and right-of-use assets
722,997 1,661,329 44,783 132 2,429,241 -79,580 2,349,661
Carrying amount of joint ventures and associates - 5,020 2,768 31,602 39,390 90,564 129,954
Booked as non-current asset - 5,020 2,805 34,392 42,217 90,564 132,781
Booked as non-current financial liability (- is credit) - - -37 -2,790 -2,827 - -2,827
Acquisition of property, plant and equipment
and right-of-use assets (*)
128,705 189,244 14,226 37 332,212 -10,774 321,438
Capital investments in joint ventures and
associates
- 70 - 347 417 15,215 15,632
(*) Acquisitions according to balance sheet (rollforward property, plant and equipment and right-of-use assets) and not according to cash flow statement. In
comparison with the Financial Report 2021, an amount of 62,291 thousand EUR is transferred from Dredging & Infra to Offshore Energy.
DEME ANNUAL REPORT 2022 191
CHAPTER 06
SUMMARY OF PRINCIPAL ACCOUNTING
POLICIES
GENERAL STATEMENT
DEME i s a wor ld le ade r in the h ighl y sp eci alis ed f ie lds o f
dredging, solutions for the off shore energy mark e t,
environmental and infra marine work s.
The company can build on more than 140 years of know-
how and experience and is a front runner in innovation and
new technologies. The sub-holding company DEME NV
originated on April 5, 1930. DEME’s vision is to work
towards a sustainable future by offering solutions for
global challenges: a rising sea level, a growing population,
reduction of CO₂ emissions, polluted rivers, seas and soils
and the scarcity of natural resources.
Whil e the co mp any’s roo t s are in B el gium, DEME ha s buil t
a st ron g pre s ence in a ll of t he wo rld’s se as an d con tine nt s.
Up to Jun e 29, 2022, the p are nt com pany o f the D EME
Group was Dredging, Environmental and Marine
Engin eer ing N V (DEM E NV). Sin ce th en, a n ew ho ldin g
comp any, DEME Gr oup N V, ha s come o n top o f DEM E NV
as a re sul t of t he pa r tia l deme rge r of CFE N V, t hat
tra ns fer re d it s 100% s ta ke in DEME N V to DEM E Gro up
NV. R ef eren ce is ma de to n ote (1 6) Shar e cap it al and
reser ves, for more information a bout this transaction and
the cu rre nt sh areh old er s tr uc ture o f th e DEME G rou p.
Both the head office and registered address of the new
parent company, DEME Group NV, as well as DEME NV, a
100% affiliate of DEME Group NV, are Scheldedk 30,
Zwndrecht, B elgium.
The companies are registered at the Chamber of
Commerce in Antwerp, Belgium with number BE
0787829347 and BE 0400473705 respectively. The legal
entity identifier (LEI) of DEME Group NV at the Crossroad
Bank of Enterprises is 549300FPFPQPKI3PJV37.
DEME Group NV is listed since June 30, 2022, on Euronext
Brussels under the symbol ‘DEME’ with ISIN code
BE0974413453. For the purposes of the EU Directive
2004/109/EC in respect of the harmonisation of
transparency requirements relating to information about
issuers whose securities are admitted to trading on a
regulated market and amending Directive 2001/34/EC,
the Home Member State is Belgium. DEME Group NV shall
notify the Belgian Financial Services and Market Authority
(FSMA), as competent supervisory market authority of its
Home Member State.
DEME Group’s securities are only admitted to trading in
Belgium.
The website of the Group is www.deme-group.com.
The consolidated financial statements of DEME Group NV
for 2022 and 2021 include the Company and group
companies hereinafter referred to jointly as the ‘Group’
and individually as subsidiaries, joint ventures and
associates. The section ‘principles of consolidation’
explains how group companies are included in the
consolidated financial statements.
The consolidated key figures, consolidated statement of
income, consolidated statement of financial position and
consolidated statement of cash flows together with the
management reporting and segment reporting were
presented to the Board of Directors of February 17, 2023.
The full financial information report including all
explanatory notes is presented and authorised for
publication by the Board of Directors on March 27, 2023.
STATEMENT OF COMPLIANCE
The consolidated financial statements and the
accompanying explanatory notes have been prepared in
accordance with International Financial Reporting
Standards (IFRS) as adopted by the European Union
(EU-IFRS).
BASIS OF PREPARATION
The Group has prepared the consolidated financial
statements on the basis that it will continue to operate as
a going concern.
The consolidated financial statements are presented in
thousands of EUR. They are prepared on the historical
cost basis except for derivative financial instruments
which are stated at fair value.
The consolidated financial statements are prepared as of
and for the period ending December 31,2022.
They are presented before the effect of the profit
appropriation proposed to the Shareholders’ General
Meeting.
In application of IFRS 1
first-time adoption of International
Financial Reporting Standards,
the Group has applied
consistent accounting principles, based on IFRS-EU, for all
the periods presented in these financial statements
except for the adoption of new standards effective as of
January 1, 2022. The Group has not early adopted any
standard, interpretation or amendment that has been
issued but is not yet effective.
Below amendments apply for the first time in 2022, but do
not have an impact on the consolidated financial
statements of the Group:
‒ Amendments to IFRS 3
business combinations,
reference
to the conceptual framework;
‒ Amendments to IAS 16
property, plant and equipment,
proceeds before intended use;
‒ Amendments to IAS 37
provisions,
onerous contracts
and costs of fulfilling a contract;
‒ IFRS 9
financial instruments,
fees in the ’10 per cent’ test
for derecognition of financial liabilities;
192 CONSOLIDATED FINANCIAL STATEMENTS
‒ IAS 41
agriculture,
taxation in fair value measurements;
‒ IFRS 16
leases,
the amendment to “illustrative example
13”.
The standards and interpretations that are issued, but
not yet effective, as of December 31, 2022, are disclosed
below:
‒ Amendments to IAS 1
presentation of financial
statements
and IFRS practice statement 2
: disclosure of
accounting policies
, effective January 1, 2023;
‒ Amendments to IAS 8
accounting policies, changes in
accounting estimates and errors
: definition of accounting
estimates, effective January 1, 2023;
‒ Amendments to IAS 12
income taxes:
deferred tax
related to assets and liabilities arising from a single
transaction, effective January 1, 2023;
‒ IFRS 17
insurance contracts
, effective January 1, 2023;
‒ Amendments to IFRS 17
insurance contracts
: initial
application of IFRS 17 and IFRS 9, comparative
information, effective January 1, 2023;
‒ Amendments to IFRS 16
leases
: lease liability in a sale
and leaseback, effective January 1, 2024 (*);
‒ Amendments to IAS 1:
non-current liabilities with
covenants and classification of liabilities as current or
non-current (deferred), effective January 1, 2024 (*).
(*) The amendments to the standard have not yet been endorsed.
The Group intends to adopt these standards and
interpretations, if applicable, when they become
effective. None of these standards issued, but not yet
effective, are expected to have a material impact on the
financial statements.
SIGNIFICANT JUDGMENTS AND ESTIMATES
The preparation of financial statements under IFRSs
requires estimates to be used and assumptions to be
made that affect the amounts shown in those financial
statements, particularly with regard to the following
items:
‒ the assessment of projects revenue according to the
percentage of completion: in accordance with the
provisions of IFRS 15, the revenue of projects is
measured according to the estimated revenue at the
completion of the project, according to the percentage
of completion at the closing date. The identified
additional costs are incorporated in the estimated
revenue at completion. On the basis of the contractual
conditions that are defined for each contract, any
compensation granted or, conversely, penalties charged
for delays are also incorporated in the estimated
revenue at completion in line with the valuation rules of
the DEME group. In the event that the forecast at the
completion of the project shows a deficit, the expected
loss on completion is immediately recognised as an
expense for the period. The costs of labour or material/
equipment that are not allocated to the projects are
excluded from the percentage of completion of the
project, and are directly recognised as an expense for
the period;
‒ the period over which non-current assets are
depreciated or amortised;
‒ the estimate being the discount rate and the judgment
of the lease term;
‒ the measurement of provisions and pension obligations;
‒ the estimates used in impairment tests that have been
carried out. For assets where the lower of the value in
use or the fair value less costs to sell was lower than the
carrying amount, impairment losses were recognised.
The main assumptions applied are described in note (5);
‒ the estimates used in the assessment of income taxes
or uncertain tax positions;
‒ the assessment of control.
These estimates assume the operation is a going concern
and are based on the basis of the information available at
the time.
Estimates may be revised if the circumstances on which
they were based alter or if new information
becomes available. Estimates take into account changes
in the macroeconomic and geopolitical environment.
Actual results may be different from these estimates.
RISKS AND UNCERTAINTIES
Reference is made to chapter ‘Risk management & control
processes’ earlier in this Annual Report and to note (23)
Provisions and contingent assets and liabilities.
DISCLOSURES RELATED TO 2022 SPECIFIC
TOPICS
The construction industry still dealt with the COVID-crisis
and its consequences like delays and prevention
caused by the various public health measures, and in the
aftermath of the imposed restraints, a surge of inflation,
increasing interest rates and supply chain bottlenecks.
The conflict between Russia and Ukraine has reinforced
existing disruption but also generated a new wave of
disruptions such as international sanctions against Russia,
stringent compliance issues and increasing energy prices.
All this led to higher costs for DEME as hedges and pass on
clauses to customers do not provide a perfect match and
it also resulted in project delays and cautious customers.
The macroeconomic situation however did not have a
major impact on negotiations of contract terms or
investment or financing decisions.
In addition, DEME refrained from performing dredging
works in Russia in 2022 and currently has no contracts or
contractual obligations related to the performance of
works. The Group has no significant exposure left in
Russia and the situation in Ukraine and the consequences
deriving from the sanctions taken towards Russia have no
material direct impact on the Group’s activity or its
financial results.
DEME ANNUAL REPORT 2022 193
CHAPTER 06
For above topics and for climate related matters,
reference is made to note (1) Turnover, note (5) Goodwill,
note (6) Property, plant and equipment, note (8)
Investments in joint ventures and associates, note (18)
Interest-bearing debt and net financial debt, and note (21)
Retirement benefit obligations.
PRINCIPLES OF CONSOLIDATION
The consolidated financial statements incorporate the
financial statements of the Company and of subsidiaries
which are entities controlled by the Company (fully
consolidated entities).
Control is achieved when the Company:
‒ has power over the investee;
‒ is exposed, or has rights, to variable returns from its
involvement with the investee;
‒ has the ability to use its power to affect its returns.
The Company reassesses whether or not it controls an
investee if facts and circumstances indicate that there are
changes to one or more of the three elements of control
listed above.
Consolidation of a subsidiary begins when the Company
obtains control over the subsidiary and ceases when
the Company loses control of the subsidiary. Specifically,
income and expenses of a subsidiary acquired or disposed
of during the year are included in the consolidated
statement of income and other comprehensive income
from the date the Company gains control until the date
when the Company ceases to control the subsidiary.
Profit or loss and each component of other comprehensive
income are attributed to the owners of the Company and
to the non-controlling interests. Total comprehensive
income of subsidiaries is attributed to the owners of the
Company and to the non-controlling interests, even if this
results in the non-controlling interests having a deficit
balance. When necessary, adjustments are made to the
financial statements of subsidiaries to bring their
accounting policies in line with the Group’s accounting
policies.
All intragroup assets and liabilities, equity, income,
expenses and cash flows relating to transactions between
members of the Group are eliminated in full in the
consolidated financial statements.
Changes in the Group’s ownership interests in subsidiaries
that do not result in the Group losing control over the
subsidiaries are accounted for as equity transactions. The
carrying amounts of the Group’s interests and the
non-controlling interests are adjusted to reflect the
changes in their respective interests in the subsidiaries.
Any difference between the amount by which the
non-controlling interests are adjusted and the fair value
of the consideration paid or received is recognised directly
in equity and attributed to the owners of the Company.
When the Group loses control of a subsidiary, a gain or loss
is recognised in profit or loss and is calculated as the
difference between (i) the aggregate of the fair value of
the consideration received and the fair value of any
retained interest and (ii) the previous carrying amount of
the assets (including goodwill) and liabilities of the
subsidiary and any non-controlling interests. All amounts
previously recognised in other comprehensive income in
relation to that subsidiary are accounted for as if the
Group had directly disposed of the related assets or
liabilities of the subsidiary (i.e. reclassified to profit or loss
or transferred to another category of equity as specified/
permitted by applicable IFRSs).
An investment retained is initially measured at fair value.
This fair value becomes the initial carrying amount at the
date when control is lost and for the purposes of
subsequently accounting for the retained interest as an
associate, joint venture or financial asset.
Associated companies are those in which the DEME
Group has significant influence. The significant influence
is the power to take part in financial and operating policies
of a company without having control or joint control over
these policies.
A joint venture is a joint arrangement whereby the parties
exerting joint control over the arrangement have rights to
the net assets of the joint arrangement. Joint control is
the contractually agreed sharing of control of an
arrangement, which exists only when decisions about the
relevant activities require unanimous consent of the
parties sharing control.
Assets, liabilities, revenues and expenses from joint
ventures and associates are accounted for under the
equity method in the consolidated financial statements.
Under the equity method, an investment in a joint venture
or associate is firstly recorded at cost in the consolidated
financial statement and then adjusted to record the share
of the Group in the net result and in the comprehensive
income of the associate or joint venture. When the Group’s
share of losses of an associate or a joint venture exceeds
the Group’s interest in that associate or joint venture
(which includes any long-term interests that, in substance,
form part of the Group’s net investment in the associate
or joint venture), the Group discontinues recognising its
share of further losses. Additional losses are recognised
only to the extent that the Group has incurred legal or
constructive obligations or made payments on behalf of
the associate or joint venture. These losses are recorded
as other non-current financial liability on the balance
sheet instead of a negative investment within non-
current financial assets (note (8)).
The proportionate consolidation method whereby the
Group accounts for the assets, liabilities, revenues and
expenses according to its interest in the joint venture, is
not allowed under IFRS but is still applied in the
management reporting which is the basis for the segment
reporting. Interests in joint ventures or associates are
accounted for from the date when the entity becomes a
joint venture or associate. At the acquisition of the
interest, any surplus between the cost of the investment
and the share in the fair value of net assets of the entity is
recorded as goodwill included in the carrying amount of
the investment. Any surplus between the share of the
Group in the fair value of net assets and the cost of the
investment after remeasurement is immediately recorded
194 CONSOLIDATED FINANCIAL STATEMENTS
in the income statement during the period of acquisition
of the investment.
The Group continues to use the equity method when an
investment in an associate becomes an investment in a
joint venture or an investment in a joint venture becomes
an investment in an associate. There is no remeasurement
to fair value upon such changes in ownership interests.
When the Group reduces its ownership interest in an
associate or a joint venture but the Group continues to use
the equity method, the Group reclassifies to profit or loss
the proportion of the gain or loss that had previously been
recognised in other comprehensive income relating to
that reduction in ownership interest if that gain or loss
would be reclassified to profit or loss on the disposal of
the related assets or liabilities.
When a group entity transacts with an associate or a joint
venture of the Group, profits and losses resulting from the
transactions with the associate or joint venture are
recognised in the Group’s consolidated financial
statements only to the extent of interests in the
associate or joint venture that are not related to the
Group. The gross amount on transactions with associates
or joint ventures is not eliminated; only any gain or loss on
these transactions is eliminated.
A joint operation is a joint arrangement in which the
parties (joint operators) have direct rights over the assets
and direct obligations with respect to the entity’s
liabilities. Joint control is the contractually agreed sharing
of control of an arrangement, which exists only when
decisions about the relevant activities require unanimous
consent of the parties sharing control. When a DEME
Group entity starts activity in a joint operation, the Group
recognises, in relation to its interest in the joint operation:
‒ its assets, including its share of any assets held jointly;
‒ its liabilities, including its share of any liabilities incurred
held jointly;
‒ its revenue from the sale of its share of the output
arising from the joint operation;
‒ its share of the revenue from the sale of its share of the
output by the joint operation;
‒ its expenses, including its share of any expenses
incurred jointly.
The Group accounts for the assets, liabilities, revenues
and expenses relating to its interest in a joint operation in
accordance with the IFRSs applicable to the particular
assets, liabilities, revenues and expenses.
When a group entity transacts with a joint operation in
which a group entity is a joint operator (such as a sale or
contribution of assets), the Group is considered to be
conducting the transaction with the other parties to the
joint operation, and gains and losses resulting from the
transactions are recognised in the Group’s consolidated
financial statements only to the extent of other parties’
interests in the joint operation.
When a group entity transacts with a joint operation in
which a group entity is a joint operator (such as a purchase
of assets), the Group does not recognise its share of the
gains and losses until it resells those assets to a third party.
Within the DEME Group there are also project driven
construction consortiums that are not structured as a
separate legal entity. They are directly integrated in the
figures of the DEME subsidiary that is participating in the
consortium. They are considered as joint operations and
thus follow the accounting method described above
(integration on a line-by-line basis).
BUSINESS COMBINATIONS POLICY
Acquisitions of businesses are accounted for using the
acquisition method. The consideration transferred in a
business combination is measured at fair value, which is
calculated as the sum of the acquisition-date fair values of
the assets transferred by the Group, liabilities incurred by
the Group to the former owners of the acquiree and the
equity interests issued by the Group in exchange for
control of the acquiree. Acquisition-related costs are
generally recognised in the income statement as OPEX
expenses as incurred.
At the acquisition date, the identifiable assets acquired
and the liabilities assumed are recognised at their fair
value, with the exception of:
‒ deferred tax assets or liabilities, and assets or liabilities
related to employee benefit arrangements are
recognised and measured in accordance with IAS 12
income taxes
and IAS 19
employee benefits
respectively;
‒ liabilities or equity instruments related to share-based
payment arrangements of the acquiree or share-based
payment arrangements of the Group entered into to
replace share-based payment arrangements of the
acquiree are measured in accordance with IFRS 2
share-based payment
at the acquisition date;
‒ assets (or disposal groups) that are classified as held for
sale in accordance with IFRS 5
non-current assets held
for sale and discontinued operations
are measured in
accordance with that standard.
Goodwill is initially measured at cost (being the excess of the
aggregate of the consideration transferred and the amount
recognised for non-controlling interests and any previous
interest held over the net identifiable assets acquired and
liabilities assumed). After initial recognition, goodwill is
measured at cost less any accumulated impairment losses.
For the purpose of impairment testing, goodwill acquired in
a business combination is, from the acquisition date,
allocated to each of the Group’s cash-generating units that
are expected to benefit from the combination, irrespective
of whether other assets or liabilities of the acquiree are
assigned to those units. Where goodwill has been allocated
to a cash-generating unit (CGU) and part of the operation
within that unit is disposed of, the goodwill associated with
the disposed operation is included in the carrying amount of
the operation when determining the gain or loss on disposal.
Goodwill disposed in these circumstances is measured
based on the relative values of the disposed operation and
the portion of the cash-generating unit retained.
Non-controlling interests that represent ownership
interests and entitle their holders to a proportionate share
of the entity’s net assets in the event of liquidation may be
initially measured either at fair value or at the non-
controlling interests’ proportionate share of the
recognised amounts of the acquiree’s identifiable net
DEME ANNUAL REPORT 2022 195
CHAPTER 06
assets. The choice of measurement basis is made
transaction by transaction.
When the consideration transferred by the Group in a
business combination includes assets or liabilities
resulting from a contingent consideration arrangement,
the contingent consideration is measured at its
acquisition-date fair value and included as part of the
consideration transferred in a business combination.
Changes in the fair value of the contingent consideration
that qualify as measurement period adjustments are
adjusted retrospectively, with corresponding adjustments
against goodwill. Measurement period adjustments are
adjustments that arise from additional information
obtained during the ‘measurement period’ (which cannot
exceed one year from the acquisition date) about facts
and circumstances that existed at the acquisition date.
The subsequent accounting for changes in the fair value
of the contingent consideration that do not qualify as
measurement period adjustments depends on how the
contingent consideration is classified. Contingent
consideration that is classified as an asset or a liability is
remeasured at subsequent reporting dates in accordance
with IFRS 9, or IAS 37
provisions, contingent liabilities and
contingent assets
, as appropriate, with the corresponding
gain or loss being recognised in profit or loss.
When a business combination is achieved in stages, the
Group’s previously held equity interest in the acquiree is
remeasured to its acquisition-date fair value and the
resulting gain or loss, if any, is recognised in profit or loss.
Amounts arising from interests in the acquiree prior to
the acquisition date that have previously been recognised
in other comprehensive income are reclassified to profit
or loss where such treatment would be appropriate if that
interest were disposed of.
If the initial accounting for a business combination is
incomplete by the end of the reporting period in which the
combination occurs, the Group reports provisional amounts
for the items for which the accounting is incomplete. Those
provisional amounts are adjusted retrospectively during
the measurement period (see above), or additional assets
or liabilities are recognised, to reflect new information
obtained about facts and circumstances that existed at
the acquisition date that, if known, would have affected the
amounts recognised at that date.
As current IFRSs do not specify recognition and
measurement principles in respect of business
combinations between entities under common control
(these are excluded from the scope of IFRS 3
business
combinations
), the Group applies predecessor accounting.
This means that the assets and liabilities of the acquiree
are initially recognised at their carrying amount without
fair value adjustments. The difference between the
acquisition/selling price and the carrying amount of the
net assets acquired/disposed of is accounted for in equity
as a compensation to the shareholder.
FOREIGN CURRENCIES
The Group’s consolidated financial statements are
presented in euro, which is also the parent company’s
functional currency. For each entity, the Group
determines the functional currency and items included in
the financial statements of each entity are measured
using that functional currency. The Group uses the direct
method of consolidation and on disposal of a foreign
operation, the gain or loss that is reclassified to profit or
loss reflects the amount that arises from using this
method.
Financial statements of foreign entities with a functional
currency not equal to the euro, are translated as follows:
‒ assets and liabilities are translated at the year-end rate;
‒ income and expenses are translated at the average
exchange rate for the year;
‒ shareholders’ equity accounts are translated at
historical exchange rates.
Exchange differences arising, if any, are recognised in
other comprehensive income and accumulated in equity
(and attributed to non-controlling interests as
appropriate).
On the disposal of a foreign operation (i.e. a disposal of the
Group's entire interest in a foreign operation, a disposal
involving loss of control over a subsidiary that includes a
foreign operation), all of the exchange differences
accumulated in equity in respect of that operation
attributable to the owners of the Company are
reclassified to profit or loss.
In case of a partial disposal of a subsidiary that includes a
foreign operation that does not result in the Group losing
control over the subsidiary, the proportionate share of
accumulated exchange differences are reattributed to
non-controlling interests and are not recognised in profit
or loss. For all other partial disposals (i.e. partial disposals
of associates or joint arrangements that do not result in
the Group losing significant influence or joint control), the
proportionate share of the accumulated exchange
differences is reclassified to profit or loss.
Foreign currency transactions are accounted for at
exchange rates prevailing at the date of the transactions.
Monetary assets and liabilities denominated in foreign
currencies are translated at the balance sheet date rate.
Gains and losses resulting from the settlement of foreign
currency transactions and from the translation of
monetary assets and liabilities denominated in foreign
currencies are recognised in the income statement.
Non- monetary items that are measured in terms of
historical cost in a foreign currency are not retranslated.
In note (19) a table with currency rates from foreign
currency to EUR can be found as per December 31, 2022
and 2021.
INTANGIBLE ASSETS
Acquired concessions, patents, licences and similar
rights
These intangibles, that are separately acquired and that
have a finite useful life, are carried at cost less accumulated
amortisation and accumulated impairment losses.
Amortisation is recognised on a straight line basis over
their estimated useful lives. These intangibles mainly relate
196 CONSOLIDATED FINANCIAL STATEMENTS
to the acquired technology of the SPT Offshore business
that is amortised over the economic lifetime of 10 years.
Costs for configuring or customising a supplier’s application
software in a Software as a Service (SaaS) arrangement is
determined as a service contract and expensed.
Research and development
Expenditure on research activities is recognised in the
income statement as an OPEX expense as incurred.
An internally-generated intangible asset arising from
development (or from the development phase of an
internal project) is recognised if, and only if, all of the
following have been demonstrated:
‒ the technical feasibility of completing the intangible
asset so that it will be available for use or sale;
‒ the intention to complete the intangible asset and use
or sell it;
‒ the ability to use or sell the intangible asset;
‒ how the intangible asset will generate probable future
economic benefits;
‒ the availability of adequate technical, financial and
other resources to complete the development and to
use or sell the intangible asset;
‒ the ability to reliably measure the expenditure
attributable to the intangible asset during its
development.
The amount initially recognised for internally-generated
intangible assets is the sum of the expenditure incurred
from the date when the intangible asset first meets the
recognition criteria listed above. Where no internally-
generated intangible asset can be recognised,
development expenditure is recognised in profit or loss in
the period in which it is incurred.
Subsequent to initial recognition, internally-generated
intangible assets are reported at cost less accumulated
amortisation and accumulated impairment losses, on the
same basis as intangible assets that are acquired
separately. Impairment testing is done during the
development at each closing period.
In the segment Concessions, some development expenses
are capitalised in the associates DEME Concessions
participates in, as well as in the participating entity itself
that is fully consolidated. For each project, initial
recognition has to be approved by the Audit Committee
and impairment testing is discussed in the meeting on a
semi-annual basis.
Exploration for and evaluation of mineral resources
In the segment Concessions, DEME expenses costs
incurred for the exploration and evaluation of mineral
resources on the seabed since the recognition criteria are
not met.
GOODWILL
Goodwill arising from a business combination is recognised
as an asset on the date on which control was obtained (the
acquisition date). Goodwill is measured at cost being the
excess of the consideration transferred, the non-controlling
interests in the acquired company and the fair value of the
stake already owned by the Group in the acquired company
(if any) over the net amount of identifiable assets acquired
and liabilities assumed on the acquisition date.
Non-controlling interests are initially measured either at
fair value, or at the non-controlling interests’ share of the
acquiree’s recognised identifiable net assets. The basis of
measurement is selected transaction by transaction.
If, after reassessment, the net balance, at the acquisition
date, of identifiable assets acquired and liabilities
assumed is higher than the sum of the consideration
transferred, non-controlling interests in the acquiree and
the fair value of the stake in the acquiree previously
owned by the Group (if any), the surplus is recognised
immediately in the income statement as a gain from a
bargain purchase.
Goodwill is not amortised but is subject to impairment
tests taking place annually or more frequently if there is
an indication that the cash-generating unit to which it is
allocated could have suffered a loss of value.
Goodwill is stated on the balance sheet at cost less
accumulated impairment losses, if any. Impairment of
goodwill is not reversed in future periods.
If the Group loses control over a subsidiary, it derecognises
the related assets (including goodwill), liabilities, non-
controlling interest and other components of equity, while
any resultant gain or loss is recognised in profit or loss.
Any investment retained is recognised at fair value.
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment are measured at historical
cost, less accumulated depreciation and impairment
losses. Historical cost includes all direct costs and all
expenditure incurred to bring the asset to its working
condition and location, as well as for its intended use.
Historical cost includes the original purchase price,
borrowing costs incurred during the construction period,
and related direct costs. Main dredging and offshore
equipment consists of components with different useful
lives that are accounted for as separate items.
Subsequent costs are included in the asset’s carrying
amount or recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits
associated with the item will flow to the Group and the
cost of the item can be measured reliably. The carrying
amount of the replaced part is derecognised. The wear
and tear of dredging equipment is highly dependent on
project-specific combinations of soil conditions, material
to be processed, maritime circumstances, and the
intensity of the deployment of the equipment (factors
that are difficult to predict). Due to these erratic and
time-independent patterns, the maintenance and repair
costs for upkeep of the assets during the operation of the
vessel are predominantly expensed.
Dry-docking costs of main production equipment (major
repair costs) are recognised in the carrying amount of the
vessel when incurred and depreciated over the period until
the next dry-docking.
DEME ANNUAL REPORT 2022 197
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Depreciation is charged to the income statement on a
straight line basis over the useful lives taking into account
an estimated residual value. Land is not depreciated as it
is deemed to have an infinite life, except for landfills used
for sand production that are depreciated according to the
tonnes extracted. Buildings are depreciated over 25 years.
The depreciation periods of the floating and other
construction materials range from 3 years (such as for
pipelines) to 21 years. The principal component of trailing
suction hopper dredgers and cutter suction dredgers is
depreciated over a period of 18 years. For new hopper
dredgers, cutter suction dredgers, cable lay vessels and
DP3 offshore crane vessels in production since 2019, the
principal component is depreciated over a period of 20
years and a second component is amortised over a period
of 10 years. For major jack-up vessels this depreciation
rule was already applicable. The principal component
mainly includes the hull and machinery and the second
component relates to parts of a vessel for which the
lifespan is shorter than the economic life cycle of the
vessel. Furniture and other fixed assets are depreciated
over a period between 3 and 10 years.
For all equipment with a residual value, this amount has
been estimated as 1% of the investment value from 2019
onwards. DEME will apply this 1% residual value for older
vessels as an extra year of depreciation beyond the useful
life of the vessel.
Methods for depreciation, useful life and residual value are
reassessed at the end of each financial year and amended
if necessary.
Property, plant and equipment under construction are
included based on the instalments paid and the
capitalised interests during the construction period.
Gains and losses on disposals are determined by
comparing the net disposal proceeds with the carrying
amount and are recognised within other operating income
or other operating expenses.
THE GROUP AS LESSEE, RIGHT-OF-USE
ASSETS AND LEASE LIABILITIES
The Group as lessee
The Group assesses at contract inception whether a
contract is, or contains, a lease. That is, if the contract
conveys the right to control the use of an identified asset
for a period of time in exchange for consideration.
The Group applies a single recognition and measurement
approach for all leases, except for short-term leases (less
than one year) and leases of low-value assets.
Right-of-use assets and lease liabilities
Assets, representing the right to use the underlying
leased asset, are capitalised as right-of-use assets at
cost, comprising the amount of the initial measurement of
lease liability, any lease payments made at or before the
commencement date less any lease incentives received,
any initial direct costs and restoration costs. The
corresponding lease liabilities, representing the net
present value of the lease payments to be made over the
lease term, are recognised as long-term or current
liabilities depending on the period in which they are due.
The lease payments are discounted using the lessee’s
incremental borrowing rate. The lease payments include
fixed payments (including in-substance fixed payments)
less any lease incentives receivable, variable lease
payments that depend on an index or a rate, and amounts
expected to be paid under residual value guarantees.
The lease liabilities are included in interest-bearing debt.
Lease interest is charged to the income statement as an
interest expense. Leased assets are depreciated, using
straight line depreciation over the shorter of the lease
term and the estimated useful life of the assets,
including the period of renewable options, in case it is
reasonably certain that the option will be exercised.
When there is reasonable certainty that ownership will
be obtained by the end of the lease term, the
depreciation policy for the leased asset is consistent
with that for depreciable assets which are owned.
However, when there is no reasonable certainty that
ownership will be obtained by the end of the lease term,
the asset is depreciated over the shorter of the lease
term and its expected useful life. The right-of-use assets
are also subject to impairment.
INVENTORIES
Inventories are measured at the lower of cost and net
realisable value.
The weighted average cost method is used to calculate
the cost for raw materials, whereas the cost of
consumables is determined using the FIFO method.
Net realisable value is the estimated selling price in the
ordinary course of business, less the costs of completion
and estimated costs to make the sale.
When inventories are sold, the carrying amount of those
inventories shall be recognised as an expense in the period
in which the related revenue is recognised. The amount of
any write down of inventories to net realisable value and
all losses of inventories shall be recognised as an expense
in the period the write down or loss occurs.
The amount of any reversal of any write down of
inventories, arising from an increase in net realisable
value, shall be recognised as a reduction in the amount of
inventories recognised as an expense in the period in
which the reversal occurs.
CONTRACT ASSETS AND CONTRACT
LIABILITIES
Contract assets concern the gross amount yet to be
charged which is expected to be received from customers
for contractual work performed up to the reporting date
(hereinafter: “work in progress”) and services rendered.
Work in progress is valued as the sum of the cost price of
the work performed, plus a part of the expected results
upon completion of the project in proportion to the
progress made and less progress billings, and less potential
provisions for losses. Provisions are recognised for
expected losses on work in progress as soon as they are
anticipated and if applicable, any profits already
recognised are reversed. As long as the project is not
started and the assumptions re execution of the work are
198 CONSOLIDATED FINANCIAL STATEMENTS
not final yet (hence a loss to completion provision is
difficult to measure reliably), no loss to completion
provision is accounted for, unless there is a certain event
supporting the provision. A loss to completion provision is
accounted for as a contract liability. Revenues for
additional work and claims are included in the overall
contract revenues if the client has formally accepted the
sum involved. The cost price includes project costs,
consisting of payroll costs, materials, costs of
subcontracted work, rental charges and maintenance
costs of the equipment used and other project costs. The
vessel rates used are based on the expected average vessel
occupation in the long run. The progress of a project is
measured as the ratio of the basis of the cost of the work
performed in relation to the total expected cost price of
the project as a whole. Profits are not recognised unless a
reliable estimate of the end of project result can be made.
DEME considers that no such reliable estimate can be
made as long as the percentage of completion remains
below 10% of the total expected cost price of the project
or if the installation vessels for offshore wind farm
foundation projects has not yet been mobilised. The
balance of the value of work in progress is determined per
project. For projects where the progress billings and
advance payments exceed the value of work in progress,
the balance is recognised under contract liabilities instead
of under contract assets. Advances are amounts received
by the Group (no significant financing component) before
the related work is performed. The Group presents those
separately from other contract liabilities.
TRADE AND OTHER RECEIVABLES
Trade and other receivables are stated initially at fair
value and subsequently at amortised cost less
accumulated impairment losses. For the impact of IFRS 9
and the application of the expected credit loss model,
reference is made to note (19) of this report where we
elaborate on the credit and counterparty risk. Amortised
cost is determined using the effective interest rate.
ASSETS HELD FOR SALE AND
DISCONTINUED OPERATIONS
The Group classifies non-current assets and disposal
groups as held for sale if their carrying amounts will be
recovered principally through a sale transaction rather
than through continuing use. Non-current assets and
disposal groups classified as held for sale are measured at
the lower of their carrying amount and fair value less costs
to sell. Costs to sell are the incremental costs directly
attributable to the disposal of an asset (disposal group),
excluding finance costs and income tax expense.
The criteria for held for sale classification is regarded as
met only when the sale is highly probable, and the asset or
disposal group is available for immediate sale in its
present condition. Actions required to complete the sale
should indicate that it is unlikely that significant changes
to the sale will be made or that the decision to sell will be
withdrawn. Management must be committed to the plan
to sell the asset and the sale expected to be completed
within one year from the date of the classification.
Property, plant and equipment and intangible assets are not
depreciated or amortised once classified as held for sale.
Assets and liabilities classified as held for sale are
presented separately as current items in the statement of
financial position.
Discontinued operations are excluded from the results of
continuing operations and are presented as a single
amount as profit or loss after tax from discontinued
operations in the statement of income. All notes to the
financial statements include amounts for continuing
operations, unless indicated otherwise.
CASH AND CASH EQUIVALENTS
Cash and cash equivalents consist of cash in hand and on
bank accounts and short-term investments with an initial
term of less than three months. Cash, cash equivalents
and short-term deposits are carried in the balance sheet
at nominal value.
IMPAIRMENT TANGIBLE AND INTANGIBLE
ASSETS INCLUDING GOODWILL
At the end of each reporting period, the Group reviews the
carrying amounts of its property, plant and equipment and
right-of-use assets and intangible assets to determine
whether there is any indication of impairment. If such
indication exists or when it is required, the asset’s
recoverable amount is estimated. For intangible assets
that are not yet available for use, and for goodwill, the
recoverable amount is estimated at each balance sheet
date. An impairment loss is recognised whenever the
carrying amount of an asset or its cash-generating unit
exceeds its recoverable amount. Recoverable amount is the
higher of fair value less costs of disposal and value in use. In
assessing value in use, the estimated future cash flows are
discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time
value of money and the risks specific to the asset for which
the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating
unit) is estimated to be less than its carrying amount, the
carrying amount of the asset (or cash-generating unit) is
reduced to its recoverable amount. An impairment loss is
recognised immediately in the income statement.
When there is an indication that prior recognition
impairment losses no longer exist, the carrying amount of
the asset (or a cash-generating unit) is increased to the
revised estimate of its recoverable amount, but in such a
way that the increased carrying amount does not exceed
the carrying amount that would have been determined
had no impairment loss been recognised for the asset (or
cash-generating unit) in prior years. A reversal of an
impairment loss is recognised immediately in the income
statement. An impairment loss on goodwill is never
reversed.
PROVISIONS
Provisions are recognised in the balance sheet when the
Group has a present obligation (legal or constructive)
resulting from a past event, when it is probable (more
likely than not) that an outflow of resources embodying
economic benefits will be required to settle the obligation,
and a reliable estimate of the amount of the obligation
can be made.
DEME ANNUAL REPORT 2022 199
CHAPTER 06
The amount recognised as a provision is the best estimate
of the consideration required to settle the present
obligation at the end of the reporting period, taking into
account the risks and uncertainties surrounding the
obligation. When a provision is measured using the cash
flows estimated to settle the present obligation, its
carrying amount is the present value of those cash flows
(when the effect of the time value of money is material).
The unwinding of discount on provisions is recognised as a
financial expense.
Warranty provisions
Provisions for warranties are recognised based on the
best estimate of the expected cash outflows or cost of
repair to settle contractually agreed warranties during
the defect notification period for completed projects. The
carrying amount of these provisions is estimated based on
common industry practice and the Group’s experience
with warranty claims for relevant projects. Initial
recognition of these assurance-type warranties is based
on historical experience and the estimate of warranty-
related costs is revised annually.
Restructuring provisions
Restructuring provisions will be recognised (but do
currently not apply) when the Group has a constructive
obligation, meaning when there is a detailed formal plan
that identifies the business or part of the business
concerned, the location and number of employees
affected, the detailed estimate of the associated costs
and the timeline. The Group must also notify all the
employees affected about this plan’s main features.
Other provisions
Other provisions, more specifically in the Environmental
segment, relate to the legal provision for the capping of
the landfill when the dumping areas are full or to the
provision for end of contract reinstatement of a site.
Other provisions, which are explained in note (23), can also
be provisions for a legal proceeding.
EMPLOYEE BENEFIT OBLIGATIONS
Defined contribution plans without interest guarantee
by the employer
Contributions to defined contribution plans are
recognised as an expense in the income statement when
incurred.
Belgian defined contribution plans with interest
guarantee by the employer
By law, defined contribution pension plans in Belgium are
subject to minimum guaranteed rates of return.
Consequently, these ‘defined contribution’ plans classify
as ‘defined benefit’ plans.
Defined benefit plans
For defined benefit retirement benefit plans, the cost of
providing benefits is determined using the projected unit
credit method, with actuarial valuations being carried out
at the end of each annual reporting period.
Remeasurement, comprising actuarial gains and losses,
the effect of the changes to the asset ceiling (if
applicable) and the return on plan assets (excluding net
interest), is reflected immediately in the statement of
financial position with a charge or credit recognised in
other comprehensive income in the period in which they
occur. Remeasurement recognised in other
comprehensive income is reflected as a separate reserve
in equity and will not be reclassified to profit or loss. Past
service cost is recognised in profit or loss in the period of a
plan amendment. Net interest is calculated by applying
the discount rate at the beginning of the period to the net
defined benefit liability or asset. Defined benefit costs are
categorised as follows:
‒ service cost (including current service cost, past service
cost, as well as gains and losses on curtailments and
settlements);
‒ net interest expense or income;
‒ remeasurement.
The Group presents the first two components of defined
benefit costs in profit or loss. Curtailment gains and
losses are accounted for as past service costs.
The retirement benefit obligation recognised in the
consolidated statement of financial position represents
the actual deficit or surplus in the Group’s defined benefit
plans. Any surplus resulting from this calculation is limited
to the present value of any economic benefits available in
the form of refunds from the plans or reductions in future
contributions to the plans.
INTEREST-BEARING LOANS AND
BORROWINGS
Interest-bearing loans and borrowings are recognised
initially at fair value adjusted for the attributable
transaction costs. Subsequent to initial recognition,
interest-bearing loans and borrowings are stated at
amortised cost with any difference between the proceeds
(adjusted for transaction costs) and redemption value
being recognised in the income statement over the period
of the loan or borrowings on an effective interest rate
basis.
The effective interest method is a method of calculating
the amortised cost of a financial liability and of allocating
interest expense over the relevant period. The effective
interest rate is the rate that exactly discounts estimated
future cash payments (including all fees and points paid or
received that form an integral part of the effective
interest rate, transaction costs and other premiums
or discounts) through the expected life of the financial
liability, or (where appropriate) a shorter period, to the
amortised cost of a financial liability.
TRADE AND OTHER PAYABLES
Trade and other payables are stated at amortised cost.
INCOME TAXES
Income taxes are classified as either current or deferred
taxes. Income tax is recognised in the income statement
except to the extent that it relates to items recognised
directly in other comprehensive income or equity, in which
case it is recognised in OCI or equity.
Current income tax assets and liabilities are measured at
the amount expected to be recovered from or paid to the
200 CONSOLIDATED FINANCIAL STATEMENTS
taxation authorities. The tax rates and tax laws used to
compute the amount are those that are enacted or
substantively enacted at the reporting date in the
countries where the Group operates and generates
taxable income.
Current income taxes include expected tax charges based
on the accounting profit for the current year and
adjustments to tax charges of prior years. Current income
tax assets and liabilities are measured at the amount
expected to be recovered from or paid to the taxation
authorities. The tax rates and tax laws used to compute
the amount are those that are enacted or substantively
enacted at the reporting date in the countries where the
Group operates and generates taxable income.
Deferred taxes are calculated using the liability method,
on temporary differences arising between the tax bases
of assets and liabilities and their carrying amounts in the
financial statements. The principal temporary differences
arise from depreciation of property, plant and equipment,
provisions for defined benefit plans, fair value
measurement of derivatives and tax losses carried
forward.
Deferred taxes are measured using the tax rates expected
to apply to taxable income in the years in which those
temporary differences are expected to be realised or
settled, based on tax rates enacted or substantively
enacted by the balance sheet date. A deferred tax asset
shall be recognised for the carryforward of the unused
tax losses and unused tax credits to the extent that it is
probable that future taxable profit will be available
against which the unused tax losses and unused tax
credits can be utilized. Deferred tax assets are recognised
for all deductible temporary differences to the extent
that it is probable that taxable profit will be available
against which the deductible temporary difference can be
utilised unless the deferred tax assets arise from the
initial recognition of an asset or liability in a transaction
that is not a business combination and at the time of the
transaction affects neither accounting profit nor taxable
profit (tax loss). Deferred tax assets are also recognised
for all deductible differences arising from investments in
subsidiaries, joint ventures and associates to the extent
that, it is probable that the temporary difference will
reverse in the foreseeable future and the taxable profit
will be available against which the temporary difference
can be utilised. At each balance sheet date the Group
reassess if all the above criteria are met.
IFRIC 23, which became effective as from January 1, 2019
onwards, clarifies how to apply the recognition and
measurement requirements in IAS 12
income taxes
when
an uncertainty over current and deferred income tax
treatments exists. The acceptability of a particular tax
treatment under tax law may not be known until the
relevant taxation authority or a court takes a decision in
the future. In assessing whether and how an uncertain tax
treatment affects the determination of taxable results,
the Group assumes that a taxation authority will examine
amounts it has a right to examine and has full knowledge
of all related information when making those
examinations. If the Group concludes it is probable that
the taxation authority will accept an uncertain tax
treatment, it determines the taxable result consistently
with the tax treatment used or planned to be used in its
income tax filings. If the Group concludes that it is not
probable that a taxation authority will accept an
uncertain tax treatment, it reflects the effect of
uncertainty in determining its accounting tax position. If
the possible outcomes are binary or concentrated to one
value, the uncertain tax position is measured using the
most likely amount. In case there exists a range of possible
outcomes that are neither binary nor concentrated on one
value, the sum of the weighted amounts in a range of
possible outcomes might best predict the resolution of
the uncertainty.
INVESTMENT TAX CREDITS
Investment tax credits are excluded from the scope of IAS
12
income taxes
and IAS 20
accounting for government
grants and disclosure of government assistance
. In
accordance with IAS 8
accounting policies
, changes in
accounting estimates and errors, the Group defined an
accounting policy in respect of investment tax credits by
making an analogy to IAS 12
income taxes
. By making this
analogy and when the entity satisfies the criteria to
receive the credit, this will be recognised in the income
statement (deferred taxes), and the related assets in the
statement of financial position (deferred tax asset).
RISKS FROM FINANCIAL INSTRUMENTS
The Group’s financial instruments are cash and cash
equivalents, trade and other receivables, interest- bearing
loans, trade and other payables and derivatives.
Derivatives are used exclusively as hedging instruments
and not for trading or other speculative purposes.
The Group is exposed to the following risks from financial
instruments which will be further elaborated in note (19):
‒ credit and counterparty risk;
‒ liquidity risk;
‒ market risk consisting of currency risk, interest rate risk
and price risks.
DERIVATIVE FINANCIAL INSTRUMENTS AND
HEDGING
The company uses derivative financial instruments
primarily to reduce exposure to adverse fluctuations in
interest rates, foreign exchange rates, commodity prices
and other market risks. As already mentioned above, the
Group’s policy prohibits the use of derivatives for
speculation. The company does not hold or issue
derivative financial instruments for trading purposes.
However, derivatives which do not qualify as hedging
instruments as defined by IFRS 9 are presented as
instruments held for trading. Derivative financial
instruments are recognised initially at cost. Subsequent
to initial recognition, derivative financial instruments are
measured at fair value. Recognition of any resulting
unrealised gain or loss depends on the nature of the
derivative and the effectiveness of the hedge. The fair
value of interest-rate swaps is the estimated amount that
the company would receive or pay when exercising the
swaps at the closing date, taking into account current
interest rates and the solvency of the swap counterparty.
The fair value of a forward-exchange contract is the
DEME ANNUAL REPORT 2022 201
CHAPTER 06
quoted value at the closing date, and therefore the
present value of the quoted forward price.
Hedge accounting is applicable if all criteria in the IFRS 9
standard are fulfilled:
‒ there is formal designation and documentation for the
hedging relationship at the inception of this
relationship;
‒ the economic relationship between the hedged item
and the hedging;
‒ instrument and the potential sources of ineffectiveness
must be documented;
‒ the retrospective ineffectiveness must be assessed at
each closing.
Variations of fair value between periods are recognised
differently according to the accounting classification.
Cash flow hedges
When a derivative financial instrument hedges variations
in cash flows relating to a recognised liability, a firm
commitment or an expected transaction, the effective
part of any gain or loss resulting from the derivative
financial instrument is recognised directly in other
elements of the comprehensive income and is presented
in a separate reserve in equity. When the firm
commitment or the expected transaction results in the
recognition of an asset or liability, the cumulative gain or
loss is removed from the comprehensive income and is
reported under a separate reserve in the equity.
Otherwise, the cumulative gain or loss is removed from
equity and recognised in the income statement at the
same time as the hedged transaction. The ineffective part
of any gain or loss on the financial instrument is taken into
result. Gains or losses resulting from the time value of
financial derivative instruments are recognised in the
income statement in interest income or interest expense.
When a hedging instrument or hedge relationship expires
but the hedged transaction is still expected to occur, the
cumulative unrealised gain or loss (at that point) remains
in equity and is recognised in accordance with the above
policy when the transaction occurs. If the hedged
transaction is expected not to occur, the cumulative
unrealised gain or loss recognised in equity is immediately
taken to income.
Fair value hedges
When a derivative financial instrument hedges variations
in the fair value of a recognised receivable or payable, any
gain or loss resulting from the remeasurement of the
hedging instrument is recognised in the income
statement. The hedged item is also stated at the fair
value attributable to the risk hedged, with any gain or loss
being recognised in the income statement. The fair value
of hedged items, in respect of the risk hedged, is their
carrying amount at the balance sheet date translated into
euro at the exchange rate on that date.
Instruments related to construction contracts
If a derivative financial instrument hedges variations in
cash flows relating to a recognised liability, a firm
commitment or an expected transaction in the framework
of a construction contract (mainly forward purchases of
raw materials, or foreign exchange purchases or sales), a
documentation of the cash flow hedge relationship as
described above will not be prepared. Any gain or loss
resulting from the derivative financial instrument is
recognised in the income statement. These instruments
are, however, submitted to a test of efficiency based on
the same methodology as utilised for hedge accounting.
The effective part of any gain or loss on the financial
instrument is considered as construction cost and is
presented as an operational result based upon the
percentage of completion of the contract.
The fair value variation itself however is not considered
for determining the percentage of completion of
the contract and deferred hedge charges and income are
not part of contract assets or contract liabilities as these
are stated at hedge rate and not at market rate. Deferred
hedge charges and income are included in other current
assets and other current liabilities.
REVENUES
Turnover or revenue from contracts with customers
All segments, except for the Concessions segment, which
is the Group’s investment and development vehicle, are
contributing to the Group’s turnover.
Consolidated turnover comprises the total of the work
and services realised by DEME and its subsidiaries
pursuing their main activity.
DEME’s activities encompass dredging, land reclamation,
hydraulic engineering, construction and services for the
offshore oil & gas and renewable energy industries, civil
engineering and environmental works. These activities
being construction or execution of a service are executed
following a contract with the customer.
The consolidated revenue is recognised in accordance
with IFRS 15. Revenues do not have any significant
financing component. Most construction and service
contracts with the customers involve only one
performance obligation, which is fulfilled progressively
over time. For a limited number of “EPCI” contracts in the
renewable business (offshore wind farms), multiple
performance obligations were identified. In those
contracts the EPC and T&I part for the monopiles can be
separated, as well as the cable laying part and the EPC and
T&I part for the offshore substations (OSS). Those parts
of the contract are capable of being distinct, and are
distinct in the context of the contract, and accordingly are
considered as separate performance obligations.
Where a contract includes several distinct performance
obligations, the Group allocates the overall price of the
contract to each performance obligation in accordance
with IFRS 15. That price corresponds to the amount of
the consideration to which it expects to be entitled. The
most common variable considerations such as the steel
price, fuel consumption or design price modifications
shall only be included in the transaction price to the
extent that it is highly probable that a significant
reversal in the revenue recognised will not occur. When
the price includes a variable component, such as a
performance bonus or a claim, the Group only recognises
that consideration from the moment that agreement is
reached with the client.
202 CONSOLIDATED FINANCIAL STATEMENTS
There are no IFRS 15 service-type warranties.
The Group has concluded that revenue from construction
and service contracts should be recognised over time. As
such, the revenue recognition reflects the rate at which
our performance obligations are fulfilled
corresponding to the transfer of control of a good or
service to our customers. When there is no transfer of
control throughout the contract revenue is still
recognised over time, based on the fact that the asset
created has no alternative use, as well as the fact that an
enforceable right to payment exists for performance
completed to date.
Revenue from construction and service contracts is
recognised by reference to the stage of completion of the
contract activity at the end of the reporting period,
measured based on the proportion of contract costs
incurred for work performed to date relative to the
estimated total contract costs, except where this would
not be representative of the stage of completion. A
correction is made for the cost of material (e.g. steel) that
is purchased but not yet manufactured or utilised in the
production process at the reporting date. When the
outcome of a construction contract cannot be estimated
reliably, contract revenue is recognised to the extent of
project costs incurred that will probably be recoverable.
Project costs are recognised as expenses in the period in
which they are incurred. Management concluded that
costs to fulfil a contract that are not incurred in respect of
the satisfaction of the performance obligation have no
material impact on the recognition of revenues and
margin of the project. As such, these costs are also
recognised when incurred and are included computing the
stage of completion. When it is probable that total
contract costs will exceed total contract revenue, the
expected loss is recognised as an expense immediately.
When there are major constraints on transferring cash
from the working country to the head office, the profit on
a contract is only recognised on a cash basis.
Other operating income
Other operating income includes the gain on sale of
intangible assets, the gain on sale of property, plant and
equipment as well as the gain on sale of financial assets,
next to other non recurring income.
The latter includes the insurance income received with
respect to damages to our vessels and equipment, as well
as liquidated damages received in the context of a
construction contract of new equipment only if it
compensates incremental charges incurred due to late
delivery of the new equipment.
OPERATING EXPENSES
Raw materials, consumables, services and
subcontracted work
This category in the consolidated statement of income is
the OPEX of the Group. All operating expenses (also SG&A
expenses incurred through our normal business
operations) are included except for personnel expenses,
depreciation, amortisation and impairment costs and
other operating expenses that are disclosed in a separate
note.
Research and development, advertising and
promotional costs and IT systems development costs
Research, advertising and promotional costs are expensed
in the year in which they are incurred. Development costs
and IT systems development costs are expensed in the
year in which they are incurred if they do not meet the
criteria for capitalisation. These costs are included in the
operating expenses (OPEX) of the Group.
Other operating expenses
Other operating expenses include the loss on sale of
intangible assets and the loss on sale of property, plant
and equipment. The non-cash movements in amounts
written off inventories and trade receivables, in
retirement benefit obligations and in provisions is also
recorded as other operating expenses. Next to above,
other costs such as various taxes, import and stamp
duties are also included in other operating expenses.
FINANCIAL RESULT
Interest income is accrued on a time basis, by reference to
the principal outstanding and at the effective interest
rate applicable.
All interest expenses and other costs incurred in
connection with borrowings, except those which were
eligible to be capitalised, are expensed. The interest
expense is recognised in the income statement using the
effective interest rate method.
Interest income and interest expense also include gains or
losses resulting from the time value of financial derivative
instruments.
Dividend income (from non-consolidated participations) is
recognised when the shareholder’s right to receive
payment has been established (provided that it is
probable that the economic benefits will flow to the Group
and the amount of income can be reliably measured).
Other financial expenses mainly relate to costs incurred
for project related bank guarantees.
DEME ANNUAL REPORT 2022 203
CHAPTER 06
GROUP STRUCTURE AND CHANGES
IN THE REPORTING PERIOD
CHANGES IN THE CONSOLIDATION
SCOPE IN THE REPORTING PERIOD
The following subsidiaries and jointly controlled entities
were liquidated during 2022:
Subsidiaries:
‒ Berin Engenharia Dragagens e Ambiente SA (Portugal)
(100%);
‒ DEC do Brasil Engenharia Ambiental LTDA (Brazil)
(74.90%);
‒ DEME Concessions Merkur BV (The Netherlands)
(100%);
‒ Marine Construction & Solution Holding LLC (USA)
(100%);
‒ Marine Construction & Solution LLC (USA) (100%);
Jointly controlled entities:
‒ DEME Brazil Servicos de Dragagem LTDA (Brazil) (50%);
‒ Transterra NV (Belgium) (50%).
The following 100% subsidiaries were merged with
another entity of the DEME Group during 2022:
‒ DEME Offshore DE GmbH merged with Nordsee
Nassbagger- und Tiefbau GmbH (both Germany);
‒ DEME Offshore LU SA merged with DEME Offshore
LU Procurement & Shipping SA (both Luxembourg).
The following subsidiaries and associates
were created during 2022:
Subsidiaries:
‒ DEME Group NV (Belgium) (100%), the new DEME
parent company;
‒ DEME Dredging NV (Belgium) (100%), within Dredging &
Infra;
‒ DEME Hyport Energy NV (Belgium) (100%), within the
Concessions segment;
‒ DEME Japan Ltd (Japan) (100%), within Offshore
Energy;
‒ Innovation Shipping SA (Luxembourg) (100%), within
Offshore Energy;
Associates:
‒ Cedar Luxembourg SARL (Luxembourg) (1.8%), within
Offshore Energy;
‒ Thistle Wind Partners Cluaran Deas Ear LTD (United
Kingdom) (42.50%), within Concessions;
‒ Thistle Wind Partners Cluaran Eear-Thuath LTD (United
Kingdom) (42.50%), within Concessions.
The percentage of shareholding in or the
consolidation method of the following subsidiary
and associate changed in the course of 2022:
Subsidiary:
‒ Dragafi Asia Pacific Pte Ltd (Singapore) and its
subsidiary, within segment Dredging & Infra, from 40%
to 100% and from equity method consolidation to full
consolidation;
Associate:
‒ Thistle Wind Partners Ltd (United Kingdom), within
Concessions, from 100% to 42.50% and from fully
consolidation to equity method consolidation.
The name of the 100% subsidiary changed in the course
of 2022:
‒ DEME Offshore Equipment SA (Belgium) (formerly
G-tec Offshore SA), within the Offshore segment.
The shares in Filterres SA (Belgium) (74.90%), within the
Environmental segment, were sold in the course of 2022
to the partner in the company. The same applied for
Hydrogeo SARL (Morocco) (40%), a dormant company in
the Offshore Energy segment. In 2022, Seatec Holding
BV and its 100% affiliate Seatec Subsea Systems BV,
within the Offshore segment, were externally sold.
The changes in the consolidation scope described above
have no material impact on the financial statements.
CHANGES IN THE CONSOLIDATION SCOPE
IN THE PREVIOUS REPORTING PERIOD
The following subsidiaries were liquidated during 2021:
‒ DEME Concessions Infrastructure NV (Belgium) (100%);
‒ DEME Shipping Company LTD (Cyprus) (100%);
‒ Dredging International Services
Middle East DMCEST (UAE) (100%);
‒ Mascarenes Dredging & Management LTD (Mauritius)
(100%);
‒ Middle East Marine Contracting LTD (Cyprus) (100%).
The following subsidiaries were merged with
another entity of the DEME Group during 2021:
‒ Agroviro NV and Purazur NV both merged with DEME
Environmental NV (all Belgium);
‒ Dredging International Luxembourg SA and Société de
Dragage Luxembourg SA both merged with DEME
Luxembourg SA (all Luxembourg).
The following subsidiaries, jointly controlled entities
and associates were newly created during 2021:
Subsidiaries:
‒ Hyport Oostende Holdco NV (Belgium) (70%);
‒ Thistle Wind Partners LTD (United Kingdom)
(100% in 2021, but changed to 42.5% in 2022);
Jointly controlled entities:
‒ CDWE Green Jade Shipowner LTD (Taiwan) (49.99%);
‒ Japan Offshore Marine LTD (Japan) (49%);
‒ Wérisol SA (Belgium) (37.45%);
Associates:
‒ Asyad Terminals DUQM LLC (Oman) (14.70%);
‒ Duqm Logistic Lands and Investment
Company LLC (Oman) (26%);
204 CONSOLIDATED FINANCIAL STATEMENTS
‒ Hyport Coordination Company LLC (Oman) (50%);
‒ Hyve BV (Belgium) (16.67%);
‒ Nou Vela SA (France) (46.60%);
‒ Port-La Nouvelle SEMOP (France) (23.77%);
‒ Rhama Port Hub SRL (Italy) (28%);
‒ Zeeboerder Westdiep BV (Belgium) (20%).
The percentage of shareholding in or the
consolidation method of the following
companies changed in the course of 2021:
‒ DIAP Thailand Co Ltd (Thailand) (from fully
consolidation to equity method consolidation; from
98% to 48.90%);
‒ G-tec Offshore SA / G-tec SAS / G-tec NV / G-tec BV
(from 72.5% to 100%); as a consequence of the above,
Hydrogeo SARL changed from 43.50% to 60% and from
consolidation according to the equity method towards
fully consolidation;
‒ High Wind NV (Belgium) (from 99.1% to 100%);
‒ PT Dredging International Indonesia (Indonesia) (from
60% to 95%).
The name of the following subsidiaries
changed in the course of 2021:
‒ DEME Environmental NV (Belgium) (prior DEME
Environmental Contractors NV);
‒ DEME Luxembourg SA (Luxembourg) (prior Safindi SA);
‒ Spartacus Shipping SA (Luxembourg) (prior
Maritime Services & Solutions SA).
LIST OF THE GROUP’S SUBSIDIARIES,
JOINT VENTURES AND ASSOCIATES
The classification to one or another ‘operational segment’
of a company within the Group can vary each year
based upon the projects performed by that company
and is not necessarily the same as the operational
segment of its legal parent company. A company can
also execute projects for more than one operational
segment. In that case the main operational segment
for the current year is disclosed in the table below.
All subsidiaries, joint ventures and associates have the
same year-end closing date as at December 31, except for
those in India and Zeeboerder Westdiep BV (Belgium)
where the year-end closing date is March 31. When the
year-end closing date differs from the December 31
closing date, the figures included in the consolidation are
those for the period ended December 31 calendar date.
Further on, within the DEME Group there are no
significant restrictions to transfer funds in the form of
cash and dividends.
DEME ANNUAL REPORT 2022 205
CHAPTER 06
SUBSIDIARIES (FULLY CONSOLIDATED)
As of December 31, 2022
Until June 29, 2022, Dredging, Environmental & Marine Engineering NV (DEME NV), was the parent company of the Group.
On that date CFE NV transferred its 100% stake in DEME NV to a newly created company, DEME Group NV, by means of a
partial demerger and as such DEME Group NV became the new parent company. DEME NV, as a subholding, is now included in
the list as a subsidiary compared to prior year. Reference is made to note (16) Share capital, dividends and reserves for more
information.
DEME Environmental NV, the parent company of the Environmental segment, is owned for 25.1% by a third party. In the
Dredging & Infra segment there are some non-controlling interests in the marine aggregate and maritime services business
and in the dredging business only some minor interests are hold by third parties. In the Concessions segment the same
external partner holds interests in two subsidiaries of the Group. In the Offshore segment there are no non-controlling
interests at December 31, 2022. Reference is made to the consolidated statement of comprehensive income and the
consolidated statement of changes in equity for more information about the non-controlling interests.
Name Country
2022
% of Share -
holding
2021
% of Share -
holding
Main Operational
Segment 2022
Dredging, Environmental & Marine Engineering NV Belgium 100% 100%
Baggerwerken Decloedt en Zoon NV Belgium 100% 100% Dredging & Infra
Cathie Associates Holding CVBA Belgium 100% 100% Offshore Energy
Deeptech NV Belgium 100% 100% Concessions
DEME Building Materials NV Belgium 100% 100% Dredging & Infra
DEME Concessions NV Belgium 100% 100% Concessions
DEME Concessions Wind NV Belgium 100% 100% Concessions
DEME Coordination Center NV Belgium 100% 100% Dredging & Infra
DEME Dredging NV Belgium 100% 0% Dredging & Infra
DEME Hyport Energy NV Belgium 100% 0% Concessions
DEME Infra Marine Contractors NV Belgium 100% 100% Dredging & Infra
DEME Infrasea Solutions NV Belgium 100% 100% Dredging & Infra
DEME Offshore BE NV Belgium 100% 100% Offshore Energy
DEME Offshore Equipment SA (formerly G-tec Offshore SA) Belgium 100% 100% Offshore Energy
DEME Offshore Holding NV Belgium 100% 100% Offshore Energy
Dredging International NV Belgium 100% 100% Dredging & Infra
Geowind NV Belgium 100% 100% Offshore Energy
Global Sea Mineral Resources NV Belgium 100% 100% Concessions
G-tec SA Belgium 100% 100% Offshore Energy
High Wind NV Belgium 100% 100% Offshore Energy
Logimarine NV Belgium 100% 100% Dredging & Infra
DEME Environmental NV Belgium 74.90% 74.90% Environmental
Ecoterres SA Belgium 74.90% 74.90% Environmental
Ekosto NV Belgium 74.90% 74.90% Environmental
Hyport Oostende Holdco NV Belgium 70% 70% Concessions
DEME Blue Energy NV Belgium 69.99% 69.99% Concessions
Combined Marine Terminal Operations Worldwide NV Belgium 54.38% 54.38% Dredging & Infra
Grond Recyclage Centrum NV Belgium 52.43% 52.43% Environmental
GRC Zolder NV Belgium 36.70% 36.70% Environmental
Filterres SA Belgium 0% 56.10% Environmental
Soyo Dragagem LDA Angola 100% 100% Dredging & Infra
Dragagem Angola Serviços Lda Angola 100% 100% Dredging & Infra
Dredging International Argentina SA Argentina 100% 100% Dredging & Infra
Dredging International Australia Pty Ltd Australia 100% 100% Dredging & Infra
GeoSea Australia Pty Ltd Australia 100% 100% Offshore Energy
Dredging International Bahrain WLL Bahrain 49%
(1)
49%
(1)
Dredging & Infra
Dragabras Serviços de Dragagem Ltda Brazil 100% 100% Dredging & Infra
DEC do Brasil Engenharia Ambiental Ltda Brazil 0% 74.90% Environmental
(1) The economic rights in this company are 100%.
206 CONSOLIDATED FINANCIAL STATEMENTS
Name Country
2022
% of Share -
holding
2021
% of Share -
holding
Main Operational
Segment 2022
DEME Offshore CA Ltd Canada 100% 100% Offshore Energy
Dredging International Management Consulting Shanghai Ltd China 100% 100% Dredging & Infra
Far East Dredging Ltd
Hong Kong SAR
China
100% 100% Dredging & Infra
Bellsea Ltd Cyprus 100% 100% Dredging & Infra
DEME Cyprus Ltd Cyprus 100% 100% Dredging & Infra
DEME Offshore CY Ltd Cyprus 100% 100% Offshore Energy
Dredging International Cyprus Ltd Cyprus 100% 100% Dredging & Infra
Dredging International Services Cyprus Ltd Cyprus 100% 100% Dredging & Infra
Novadeal Ltd Cyprus 100% 100% Dredging & Infra
T.C.M.C. The Channel Management Company Ltd Cyprus 100% 100% Dredging & Infra
DEME Offshore DK SAS Denmark 100% 100% Offshore Energy
DEME Offshore FR SAS France 100% 100% Offshore Energy
G-tec SAS France 100% 100% Offshore Energy
Société de Dragage International SA France 100% 100% Offshore Energy
Nordsee Nassbagger- und Tiefbau GmbH Germany 100% 100%
Dredging & Infra /
Offshore Energy
Oam-Deme Mineraliën GmbH Germany 70% 70% Dredging & Infra
DEME Offshore DE GmbH Germany 0% 100% Offshore Energy
DEME Building Materials Ltd United Kingdom 100% 100% Dredging & Infra
NewWaves Solutions Ltd United Kingdom 100% 100% Offshore Energy
SPT Offshore UK Ltd United Kingdom 100% 100% Offshore Energy
Dredging International India Pvt Ltd India 99.97% 99.97% Dredging & Infra
International Seaport Dredging Pvt Ltd India 93.64% 93.64% Dredging & Infra
PT Dredging International Indonesia Indonesia 49%
(3)
49%
(3)
Dredging & Infra
Societa Italiana Dragaggi Spa Italy 100% 100% Dredging & Infra
DEME Japan Ltd Japan 100% 0% Offshore Energy
Apollo Shipping SA Luxembourg 100% 100% Offshore Energy
Bonny River Shipping SA Luxembourg 100% 100% Dredging & Infra
CRiver Shipping SA Luxembourg 100% 100% Dredging & Infra
Delta River Shipping SA Luxembourg 100% 100% Dredging & Infra
DEME Luxembourg SA Luxembourg 100% 100% Dredging & Infra
DEME Offshore LU Procurement & Shipping SA Luxembourg 100% 100% Offshore Energy
Innovation Shipping SA Luxembourg 100% 0% Offshore Energy
Meuse River Shipping SA Luxembourg 100% 100% Dredging & Infra
Safindi RE SA Luxembourg 100% 100% Dredging & Infra
Spartacus Shipping SA Luxembourg 100% 100% Dredging & Infra
DEME Offshore LU SA Luxembourg 0% 100% Offshore Energy
SPT Offshore Sdn Bhd Malaysia 100% 100% Offshore Energy
Dredging International Malaysia Sdn Bhd Malaysia 30%
(1)
30%
(1)
Dredging & Infra
Hydrogeo SARL Morocco 0% 60% Offshore Energy
Dredging International Mexico SA de CV Mexico 100% 100% Dredging & Infra
Logimarine SA de CV Mexico 100% 100% Dredging & Infra
Dragamoz Lda Mozambique 100% 100% Dredging & Infra
Earth Moving International Nigeria Ltd Nigeria 100% 100% Dredging & Infra
Novadeal EKO FZE Nigeria 100% 100% Dredging & Infra
Dredging and Environmental Services Nigeria Ltd Nigeria 39%
(1)
39%
(1)
Dredging & Infra
Dredging International Services (Nigeria) Ltd Nigeria 39%
(1)
39%
(1)
Dredging & Infra
Combined Marine Terminal Operators Nigeria Ltd Nigeria 21.25%
(2)
21.25%
(2)
Dredging & Infra
Dredging International de Panama SA Panama 100% 100% Dredging & Infra
(1) The economic rights in this company are 100%.
(2) The economic rights in this company are 54.375%.
(3) The economic rights in this company are 95%.
DEME ANNUAL REPORT 2022 207
CHAPTER 06
Name Country
2022
% of Share -
holding
2021
% of Share -
holding
Main Operational
Segment 2022
Corporacion Arenera Marina SA Panama 100% 100% Dredging & Infra
Dredeco PNG Ltd Papua New Guinea 100% 100% Dredging & Infra
Berin Engenharia Dragagens e Ambiente SA Portugal 0% 100% Dredging & Infra
Middle East Dredging Company QSC Qatar 49%
(3)
49%
(3)
Dredging & Infra
Dragmorstroy LLC Russia 100% 100% Dredging & Infra
Mordraga LLC Russia 100% 40% Dredging & Infra
Dredging InternationaI Saudi Arabia Co Ltd Saudi Arabia 100% 100% Dredging & Infra
Dragafi Asia Pacific Pte Ltd Singapore 100% 40% Dredging & Infra
Dredging International Asia Pacific Pte Ltd Singapore 100% 100% Dredging & Infra
Dredging International South Africa PTY Ltd South-Africa 100% 100% Dredging & Infra
Dredging International España SA Spain 100% 100% Dredging & Infra
Naviera Living Stone SLU Spain 100% 100% Offshore Energy
DEME Building Materials BV The Netherlands 100% 100% Dredging & Infra
DEME Concessions Netherlands BV The Netherlands 100% 100% Concessions
DEME Infra Marine Contractors BV The Netherlands 100% 100% Dredging & Infra
DEME Offshore NL BV The Netherlands 100% 100% Offshore Energy
DEME Offshore Shipping BV The Netherlands 100% 100% Offshore Energy
Dredging International Netherlands BV The Netherlands 100% 100% Dredging & Infra
G-tec BV The Netherlands 100% 100% Offshore Energy
SPT Equipment BV The Netherlands 100% 100% Offshore Energy
SPT Offshore Holding BV The Netherlands 100% 100% Offshore Energy
SPT Offshore BV The Netherlands 100% 100% Offshore Energy
Aannemingsmaatschapp De Vries & van de Wiel BV The Netherlands 74.90% 74.90% Environmental
De Vries & van de Wiel Beheer BV The Netherlands 74.90% 74.90% Environmental
De Vries & van de Wiel Kust- en Oeverwerken BV The Netherlands 74.90% 74.90% Environmental
Zandexploitatiemaatschapp De Vries & van de Wiel BV The Netherlands 74.90% 74.90% Environmental
Milieutechniek De Vries & van de Wiel BV The Netherlands 74.90% 74.90% Environmental
DEME Concessions Merkur BV The Netherlands 0% 100% Concessions
Seatec Holding BV The Netherlands 0% 100% Offshore Energy
Seatec Subsea Systems BV The Netherlands 0% 100% Offshore Energy
Dredging International Ukraine LLC Ukraine 100% 100% Dredging & Infra
Dredging International RAK FZ LLC
United Arab
Emirates
100% 100% Dredging & Infra
DEME Offshore US INC USA 100% 100% Offshore Energy
DEME Offshore US LLC USA 100% 100% Offshore Energy
Marine Construction & Solutions Holding LLC USA 0% 100% Dredging & Infra
Marine Construction & Solutions LLC USA 0% 100% Dredging & Infra
Servicios Maritimos Servimar SA Venezuela 100% 100% Dredging & Infra
(3) The economic rights in this company are 95%.
208 CONSOLIDATED FINANCIAL STATEMENTS
JOINT VENTURES (EQUITY METHOD IN FINANCIAL STATEMENTS BUT PROPORTIONATE METHOD
IN SEGMENT REPORTING)
As of December 31, 2022
Name Country
2022
% of Share -
holding
2021
% of Share -
holding
Main Operational
Segment 2022
Scaldis Salvage & Marine Contractors NV Belgium 54.38% 54.38% Offshore Energy
Sédisol SA Belgium 37.45% 37.45% Environmental
Blue Site SA Belgium 37.45% 37.45% Environmental
Wérisol SA Belgium 37.45% 37.45% Environmental
Silvamo NV Belgium 37.45% 37.45% Environmental
Top Wallonie NV Belgium 37.45% 37.45% Environmental
Transterra NV Belgium 0% 50% Dredging & Infra
MSB Minerações Sustentáveis do Brasil SA Brazil 51% 51% Dredging & Infra
DEME Brazil Serviços de Dragagem Ltda Brazil 0% 50% Dredging & Infra
Guangzhou Coscocs DEME New Energy Engineering Co. Ltd China 49.99% 49.99% Offshore Energy
Earth Moving Worldwide Cyprus Ltd Cyprus 50% 50% Dredging & Infra
Japan Offshore Marine Ltd Japan 49% 49% Offshore Energy
BNS JV Ltd United Kingdom 50% 50% Dredging & Infra
Normalux Maritime SA Luxembourg 37.50% 37.50% Offshore Energy
Combined Marine Terminal Operations Marafi LLC Oman 37.68% 37.68% Dredging & Infra
Gulf Earth Moving Qatar WLL Qatar 50% 50% Dredging & Infra
DIAP Thailand Co Ltd Thailand 48.90% 48.90% Dredging & Infra
CSBC DEME Wind Engineering Co Ltd (CDWE) Taiwan 49.99% 49.99% Offshore Energy
CDWE Green Jade Shipowner Ltd Taiwan 49.99% 49.99% Offshore Energy
DBM-Bontrup BV The Netherlands 50% 50% Dredging & Infra
K3 DEME BV The Netherlands 50% 50% Dredging & Infra
Deeprock Beheer BV The Netherlands 50% 50% Offshore Energy
Deeprock CV The Netherlands 50% 50% Offshore Energy
Overseas Contracting & Chartering Services BV The Netherlands 50% 50% Offshore Energy
Earth Moving Middle East Contracting DMCEST
United Arab
Emirates
50% 50% Dredging & Infra
DEME ANNUAL REPORT 2022 209
CHAPTER 06
ASSOCIATES (EQUITY METHOD)
As of December 31, 2022
Name Country
2022
% of Share -
holding
2021
% of Share -
holding
Main Operational
Segment 2022
Consortium Antwerp Port (Oman) NV Belgium 60% 60% Concessions
Power@Sea NV Belgium 51.10% 51.10% Concessions
Consortium Antwerp Port Industrial Port Land NV Belgium 50% 50% Concessions
Blue Open NV Belgium 49.94% 49.94% Environmental
Bluepower NV Belgium 35% 35% Concessions
Bluechem Building NV Belgium 25.47% 25.47% Environmental
Blue Gate Antwerp Development NV Belgium 25.46% 25.46% Environmental
Terranova NV Belgium 24.96% 24.96% Environmental
Zeeboerder Westdiep BV Belgium 20% 20% Concessions
Feluy M2M SA Belgium 19.47% 19.47% Environmental
Otary BIS NV Belgium 18.89% 18.89% Concessions
Otary RS NV Belgium 18.89% 18.89% Concessions
Rentel NV Belgium 18.89% 18.89% Concessions
Hyve BV Belgium 16.67% 16.67% Concessions
Terranova Solar NV Belgium 16.01% 16.01% Environmental
North Sea Wave NV Belgium 13.22% 13.22% Concessions
SeaMade NV Belgium 13.22% 13.22% Concessions
La Vélorie SA Belgium 12.48% 12.48% Environmental
C-Power Holdco NV Belgium 10% 10% Concessions
C-Power NV Belgium 6.46% 6.46% Concessions
Nou Vela SA France 46.60% 46.60% Concessions
Port-La Nouvelle SEMOP France 23.77% 23.77% Concessions
Thistle Wind Partners Ltd United Kingdom 42.50% 100% Concessions
Thistle Wind Partners Cluaran Deas Ear Ltd United Kingdom 42.50% 0% Concessions
Thistle Wind Partners Cluaran Ear-Thuath Ltd United Kingdom 42.50% 0% Concessions
West Islay Tidal Energy Park Ltd United Kingdom 35% 35% Concessions
Rhama Port Hub SRL Italy 28% 28% Dredging & Infra
Cedar Luxembourg SARL Luxembourg 1.80% 0% Offshore Energy
Hyport Coordination Company LLC Oman 50% 50% Concessions
Port of Duqm Company SAOC Oman 30% 30% Concessions
Duqm Industrial Land Company LLC Oman 27.55% 27.55% Concessions
Duqm Logistic Lands and Investment Company LLC Oman 26% 26% Concessions
DIAP-Daelim Joint Venture Pte Ltd Singapore 51% 51% Dredging & Infra
DIAP-SHAP Joint Venture Pte Ltd Singapore 51% 51% Dredging & Infra
BAAK Blankenburg-Verbinding BV The Netherlands 15% 15% Concessions
BUSINESS COMBINATIONS AND DISPOSALS
IN THE COURSE OF 2022 AND 2021
Business combinations and disposals
in the course of 2022
There were no business combinations in 2022.
Within the Offshore Energy segment the company
Seatec Holding BV and its affiliate Seatec Subsea
Systems BV were sold as part of a management
buyout. This sale has an immaterial impact on the
financial statements. The manufacturing and trading
vehicle Seatec was acquired in 2020 as part of the
SPT Offshore Group. DEME secured exclusivity on the
suction pump equipment manufacturing executed
by Seatec through a framework agreement.
The shares in Filterres SA (Belgium) (74.90%), within
the Environmental segment, were sold in the course of
2022 to the partner in the company. The same applied
for Hydrogeo SARL (Morocco) (40%), a dormant company
in the Offshore Energy segment. These sales had a
very immaterial impact on the financial statements.
Business combinations and disposals in the course
of 2021
There were no business combinations, nor disposals
in 2021.
210 CONSOLIDATED FINANCIAL STATEMENTS
This part has to be read together with the ‘Group
Performance 2022’ earlier in this annual report where the
major contributors to the result of the year are explained.
In the ‘Group Performance 2022’ when elaborating on
the performance of the segments separately, as well as in
the segment reporting, management report figures are
used. The only reconciling item between these figures and
the figures as in the financial statements is the impact of
the different consolidation method for joint ventures.
Joint ventures are consolidated proportionally in
the management report figures, whereas according
to equity method in the financial statements.
The result for the period (share of the Group) is
not affected by the difference in consolidation
method, only the presentation is different.
In the notes and in this comparative financial
statement analysis, the figures as per
financial statements are disclosed.
CONSOLIDATED STATEMENT OF INCOME COMPARATIVE ANALYSIS
As of December 31 (in thousands of EUR)
COMPARATIVE FINANCIAL STATEMENT
ANALYSIS
Notes
2022 2021 DE LTA
REVENUES 2,710,796 2,580,773 130,023
Turnover (1) 2,654,725 2,510,607 144,118
Other operating income (2) 56,071 70,166 -14,095
OPERATING EXPENSES -2,555,560 -2,437,492 -118,068
Raw materials, consumables, services and subcontracted work -1,704,618 -1,575,624 -128,994
Personnel expenses (3) -505,743 -488,896 -16,847
Depreciation and amortisation expenses (4)/(6)/(7) -318,240 -291,108 -27,132
Impairment of property, plant and equipment and right-of-use assets (6)/(7) -430 -34,608 34,178
Impairment of goodwill and intangible assets (4)/(5) - -311 311
Other operating expenses (2) -26,529 -46,945 20,416
OPERATING RESULT 155,236 143,281 11,955
FINANCIAL RESULT -24,311 -5,412 -18,899
Interest income 6,026 4,181 1,845
Interest expense -14,914 -6,920 -7,994
Realised/unrealised foreign currency translation effects -11,134 6,130 -17,264
Other financial income and expenses -4,289 -8,803 4,514
RESULT BEFORE TAXES 130,925 137,869 -6,944
Current taxes and deferred taxes (10) -31,361 -31,079 -282
RESULT AFTER TAXES 99,564 106,790 -7,226
Share of profit (loss) of joint ventures and associates (8) 15,827 10,548 5,279
RESULT FOR THE PERIOD 115,391 117,338 -1,947
Attributable to non-controlling interests 2,671 2,757 -86
SHARE OF THE GROUP 112 ,720 114 ,5 81 -1,861
DEME ANNUAL REPORT 2022 211
CHAPTER 06
Total revenues in 2022 increased with 130 million EUR.
Turnover increased with 144 million EUR or 6% compared
to 2022, whereas other operating income decreased
with 14 million EUR. Operating income of 2022 includes
liquidated damages received as compensation for
the incremental costs incurred as a result of the
late delivery of installation vessel ‘Orion’ (Offshore
Energy segment) for 19 million EUR, whereas the
operating income of 2021 included 15 million EUR of
liquidated damages received relating to cutter suction
dredger ‘Spartacus’ (Dredging & Infra segment).
The operating result or EBIT increased with 12 million
EUR but the EBIT margin remained the same, due to
a higher number of vessel dockings and overhauls,
inflation, consumables and commodity price increases.
The depreciation expenses increased due to the new
vessels ‘Orion’, ‘Spartacus’ and ‘Groenewind’. On the
other hand, no significant impairments are recorded in
2022 while in 2021, 35 million EUR of impairments were
included. Other operating expenses decreased with 20
million EUR and will be further explained in the notes.
The decrease of the financial result with 19 million EUR
is mainly caused by negative realised/unrealised foreign
currency translation effects of -11.1 million EUR in 2022,
in comparison with positive effects of 6 million EUR in
2021 (difference -17.3 million EUR). This mainly results
from the devaluation of the Egyptian Pound, leading to
a negative remeasurement of the cash and outstanding
receivables for the Abu Qir project in Egypt. Furthermore,
interest expenses increased with 8 million EUR, due to
a higher debt position as a consequence of the issuance
of new term loan facilities of 440 million EUR (referring
to note (18)) and less capitalised interest expenses in
2022. Interests for the 'Orion' vessel financing were not
longer capitalised as from June, as all activities to prepare
the vessel for its intended use were then completed.
The result before taxes is 6.9 million EUR lower
than last year and the effective tax rate increased
to 24.0% compared to 22.5% last year.
The share of profit of joint ventures and associates
increased with 5.3 million EUR mainly due to an
increase of the result of the joint ventures. The
amount attributable to non-controlling interests
remained stable compared to last year.
The result for the period (share of the Group) decreased
with 1.9 million EUR compared to last year and amounts
to 112.7 million EUR which is 4.45 EUR per share.
212 CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
COMPARATIVE ANALYSIS
As of December 31 (in thousands of EUR)
ASSETS
Notes
2022 2021 DE LTA
NON-CURRENT ASSETS 2,969,289 2,694,235 275,054
Intangible assets (4) 24,315 25,513 -1,198
Goodwill (5) 13,028 13,028 -
Property, plant and equipment (6) 2,422,048 2,259,041 163,007
Right-of-use assets (7) 98,994 90,620 8,374
Investments in joint ventures and associates (8) 202,748 132,781 69,967
Other non-current financial assets (9) 32,540 33,451 -911
Non-current financial derivatives (19) 39,336 613 38,723
Interest rate swaps 39,127 - 39,127
Forex/fuel hedges 209 613 -404
Other non-current assets (9) 11,892 4,239 7,653
Deferred tax assets (10) 124,388 134,949 -10,561
CURRENT ASSETS 1,540,489 1,355,362 185,127
Inventories (11) 25,696 12,168 13,528
Contract assets (12) 344,751 326,685 18,066
Trade and other operating receivables (13) 469,529 384,022 85,507
Current financial derivatives (19) 22,022 3,207 18,815
Interest rate swaps 17,638 - 17,638
Forex/fuel hedges 4,384 3,207 1,177
Assets held for sale (14) 31,997 32,456 -459
Other current assets (15) 124,233 68,192 56,041
Cash and cash equivalents (18)/(19) 522,261 528,632 -6,371
TOTAL ASSETS 4,509,778 4,049,597 4 6 0 ,181
Total assets of the year increased with 460.2 million
EUR, of which the net increase in property, plant
and equipment represents the largest increasing
category of the balance sheet (+ 163 million EUR).
Main investments for 2022 include the ‘Orion’, DEME’s
revolutionary offshore installation vessel which officially
was added to the fleet in the second quarter of 2022,
the acquisition and conversion of cable-laying vessel
‘Viking Neptun’, the investment in a new rock dumping
vessel and the upgrade of the offshore installation
vessel ‘Sea Installer’. Also significant maintenance
investments in DEME’s existing fleet were capitalised.
The increase in investments in joint ventures and
associates is, next to capital increases, mainly related to
the increase of other comprehensive income (because of
the increase in the fair value of interest-rate hedges).
Because of the same reason, we also observe an
increase in non-current and current financial
derivatives due to the positive evolution of the
fair value of the interest rate hedges, in 2022.
Inventories, contract assets and trade and other
operating receivables increased with respectively
13.5, 18.1 and 85.5 million EUR. The increase in trade
and other operating receivables is partly due to an
increase in activities but mainly due to the progress of
major projects and the timing of invoicing as contract
assets are transferred to receivables upon acceptance
by the client. The increase in trade receivables is
not caused by an increase in overdue amounts.
Assets held for sale remained stable. In 2021 the amount
was related to the reclassification of the net book value
of the ‘Thor’ vessel (sold in April 2022) from property,
plant and equipment. In 2022 the amount is related to
another vessel within the Offshore Energy segment.
Other current assets increased with 56 million EUR
compared to 2021, mainly related to an increase in
deferred hedge cost on the US projects Vineyard and
Coastal Virginia.
DEME ANNUAL REPORT 2022 213
CHAPTER 06
GROUP EQUITY AND LIABILITIES
Notes
2022 2021 DE LTA
SHAREHOLDERS’ EQUITY (16) 1,753,947 1,579,543 174,404
Issued capital 33,194 31,110 2,084
Share premium 475,989 5,645 470,344
Retained earnings and other reserves 1,218,272 1,618,824 -400,552
Hedging reserve 70,020 -25,872 95,892
Remeasurement on retirement obligations -37,458 -41,283 3,825
Cumulative translation adjustment -6,070 -8,881 2,811
NON-CONTROLLING INTERESTS 22,318 19,696 2,622
GROUP EQUITY 1,776,265 1,599,239 177,026
NON-CURRENT LIABILITIES 1,015,460 786,718 228,742
Retirement obligations (21) 60,523 65,267 -4,744
Provisions (23) 42,985 39,572 3,413
Interest-bearing debt (18) 789,904 577,970 211,934
Non-current financial derivatives (19) 53,661 26,868 26,793
Interest rate swaps - 2,608 -2,608
Forex/fuel hedges 53,661 24,260 29,401
Other non-current financial liabilities (8) 1,238 2,827 -1,589
Deferred tax liabilities (10) 67,149 74,214 -7,065
CURRENT LIABILITIES 1,718,053 1,663,640 54,413
Interest-bearing debt (18) 252,870 343,340 -90,470
Current financial derivatives (19) 31,579 12,368 19,211
Interest rate swaps - 1,892 -1,892
Forex/fuel hedges 31,579 10,476 21,103
Provisions (23) 4,714 3,738 976
Contract liabilities (12) 323,300 181,095 142,205
Advances received (12) 72,539 101,067 -28,528
Trade payables 777,705 772,905 4,800
Remuneration and social debt 98,793 94,026 4,767
Current income taxes (10) 66,571 76,370 -9,799
Other current liabilities (22) 89,982 78,731 11,251
TOTAL LIABILITIES 2,733,513 2,450,358 2 8 3 ,15 5
TOTAL GROUP EQUITY AND LIABILITIES 4,509,778 4,049,597 4 6 0 ,18 1
214 CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF CASH FLOWS COMPARATIVE ANALYSIS
As of December 31 (in thousands of EUR)
Total liabilities increased with 283 million EUR.
Group equity increased with 177 million EUR and is next
to the result of the year of 112.7 million EUR positively
impacted by an increase of other comprehensive income
(hedging reserve, remeasurement on retirement
obligations and cumulative translation adjustments)
for an amount of 102.5 million EUR, compensated by
the payment of a dividend of 40.8 million EUR in 2022.
Note that due to the partial demerger of CFE NV, a
transfer from retained earnings and other reserves to
share capital and share premium has been recorded.
Non-current liabilities increased with 228.7 million
EUR of which 211.9 million EUR is related to the increase
in non-current interest-bearing debt. The increase in
interest-bearing debt is related to additional term loan
facility agreements of 440 million EUR partly offset
by reimbursements for 246 million EUR. The current
interest-bearing debt decreased with 90.4 million EUR.
The contract liabilities increased with 142 million
EUR, partly due to an increase in activities but mainly
due to the timing (e.g. new projects starting up where
the invoicing is ahead of the operational execution of
the project for some major US offshore projects).
Notes
2022 2021 DE LTA
CASH AND CASH EQUIVALENTS, OPENING BALANCE 528,632 621,937 -93,305
CASH FLOW FROM OPERATING ACTIVITIES BEFORE CHANGES IN
WORKING CAPITAL
411,476 440,356 -28,880
CHANGES IN WORKING CAPITAL 24,893 -20,782 45,675
CASH FLOW FROM OPERATING ACTIVITIES 436,369 419,574 16,795
Investments -512,855 -298,660 -214,195
Divestments 24,001 32,248 -8,247
CASH FLOW (USED IN) / FROM INVESTING ACTIVITIES -488,854 -266,412 -222,442
New interest-bearing debt (18) 465,000 51,344 413,656
Repayment of interest-bearing debt (18) -380,488 -278,875 -101,613
Gross dividend paid to the shareholders (16) -40,843 -20,421 -20,422
Gross dividend paid to non-controlling interests (16) -504 - -504
CASH FLOW (USED IN) / FROM FINANCIAL ACTIVITIES 43,165 -247,952 291,117
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS -9,320 -94,790 85,470
Impact of exchange rate changes on cash and cash equivalents 2,949 1,485 1,464
CASH AND CASH EQUIVALENTS, ENDING BALANCE 522,261 528,632 -6,371
DEME ANNUAL REPORT 2022 215
CHAPTER 06
Cash flow from operating activities
Cash flow from operating activities increased from
419.6 million EUR in 2021 to 436.4 million EUR in 2022.
This mainly relates to the higher activity level and
corresponding increase in the net operating result from
143.3 million EUR in 2021 to 155.2 million EUR in 2022.
The aforementioned net operating result includes items
reclassed to investing cash flow for an amount of 5.7
million EUR in 2022 compared to 16.2 million EUR in 2021.
The increased working capital per December 31, 2022
is mainly caused by an increase in contract liabilities
and current liabilities partly offset by an increase in
trade debtors and deferred hedge charges. The effect
of the changes in working capital on the cash flow from
operating activities amounts to 24.9 million EUR in 2022
compared to 20.8 million EUR in 2021. Other material
cash flows from operating activities in 2022 include
an inflow of ca. 10.7 million EUR of dividends received
from participations in joint ventures and associates,
and an outflow of ca. 43 million EUR of income taxes.
The material non-cash adjustments from
operating activities in 2022 include 318.2 million
EUR of depreciation and impairment cost and
ca. 1 million EUR decrease of provisions.
Cash flow (used in) / from investing activities
Cash flow used in investing activities increased by 83%
in 2022, amounting to 488.9 million EUR in 2022
compared to 266.4 million EUR in 2021.
The considerable increased cash outflow in 2022
was mainly driven by the following factors:
‒ increased investments in the DEME fleet (PP&E),
reaching ca. 482 million EUR of cash spent in 2022
compared to ca. 280 million EUR in 2021. This is
mainly driven by the ‘Orion’ which came into the
fleet in Q2 2022, the acquisition and conversion of
cable-laying vessel ‘Viking Neptun’, the investment
in a new rock dumping vessel, the conversion of
offshore installation vessel ‘Sea Installer’ and
maintenance investments in DEME’s existing fleet;
‒ investments in joint ventures and associates (ca. 23
million EUR), compared to ca. 16 million EUR in 2021;
‒ divestments for an amount of 24.0 million EUR in
2022, which is a decrease compared to the cash
inflow realised in 2021 (32.2 million EUR).
Cash flow (used in) / from financial activities
Cash flow used in financial activities considerably
increased from 248.0 million EUR net cash-out flow in
2021 to a net cash-in flow of 43.2 million EUR in 2022.
The main 2022 cash flows from financial activities relate
to:
‒ interest-bearing debt raised in 2022 amounting to
465.0 million EUR, compared to 51.3 million EUR in 2021;
‒ dividend payments for ca. 41 million EUR in 2022,
compared to ca. 20 million EUR in 2021;
‒ debt repayments performed in 2022
amounting to ca. 380 million EUR compared
to ca. 279 million EUR in 2021.
As a net result of the above-mentioned cash flows,
the cash and cash equivalents balance decreased from
528.6 million EUR in 2021 to 522.3 million EUR in 2022.
216 CONSOLIDATED FINANCIAL STATEMENTS
EXPLANATORY NOTES TO THE
CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 – TURNOVER AND ORDERBOOK
Balance at December 31
TURNOVER
Below a split by nature, segment and geographical market can be found.
Turnover by nature (in thousands of EUR)
2022 2021
Revenue from contracts with customers 2,644,257 2,498,256
Revenue from ancillary activities 10,468 12,351
Total turnover as per financial statements 2,654,725 2,510,607
Revenue from contracts with customers mainly comprises the net revenue from the operational activities of the segments. For most
contracting activities the contract is based on a fixed/lump sum price. The Group acts as contractor and principal of the engagement.
Revenue from ancillary activities is revenue that can be very divers such as sale of equipment or fees. It is turnover that is not
followed up as a separate project in the management reporting system.
The Group has determined that the disaggregation of revenue by product line is best reflected by the revenue information that is
disclosed for each reportable segment under IFRS 8, as this information is regularly reviewed by the chief decision makers (see also
separate chapter on Segment Reporting) and best depicts how the nature, amount, timing and uncertainty of revenue and cash flows
are affected by economic factors.
Turnover by segment (in thousands of EUR)
2022 2021
Offshore Energy 957,810 916,354
Dredging & Infra 1,524,316 1,478,306
Environmental 206,336 166,163
Concessions 2,214 1,467
Total turnover by segment 2,690,676 2,562,290
Reconciliation -35,951 -51,683
Total turnover as per financial statements 2,654,725 2,510,607
The reconciliation between the segment turnover and the turnover in the consolidated statement of income is the turnover of joint
ventures. These are consolidated according to the proportionate method in the segment reporting but according to the equity
consolidation method (application of IAS 28) in the financial statements.
Turnover by geographical market (in thousands of EUR)
2022 2021
Belgium 354,439 279,248
Europe - EU 1,271,034 976,939
Europe - non EU 362,975 608,708
Africa 319,256 491,058
Asia & Oceania 136,069 93,700
America 124,832 42,359
Indian subcontinent 81,023 17,317
Middle East 5,097 1,278
Total turnover as per financial statements 2,654,725 2,510,607
A geographical market is determined as the area (location) where projects are realised and services are provided or the project
location for offshore works. A large part of the Group’s turnover is generated on projects for a variety of clients in various countries
and geographical areas.
DEME ANNUAL REPORT 2022 217
CHAPTER 06
Unlike in 2021, no single client contributed more than 10% in the Group’s turnover of 2022. The Abu Qir Port Expansion Project in
Egypt (Dredging & Infra segment), contributed between 10% and 15% in the Group’s turnover last year and qualified as such as a
material client in relation to the total turnover of the Group.
However, because of the occasional nature and spread of the contracts, none of the DEME’s clients will eventually qualify as a
material client in relation to the total turnover of the Group.
As a result of the military conflict between Russia and Ukraine, the Group refrained from performing dredging works in Russia in
2022 and currently has no contracts or contractual obligations related to the performance of works in Russia.
Additionally, 29% of DEME’s consolidated turnover can be regarded as taxonomy-eligible turnover. This percentage is directly
related to DEME’s activities making a substantial contribution to climate change mitigation and includes projects for the
construction and installation of foundations and wind turbines and their shore connections, as well as projects for railway tunnel
infrastructure. Further on, 26% of total DEME turnover is also aligned.
ORDERBOOK
The Group’s orderbook is the contract value of assignments acquired as of December 31 but that is not yet accounted for as turnover
because of non-completion. The orderbook also includes the Group’s share in the orderbook of joint ventures, but not of associates.
Contracts are not included in the orderbook until the agreement with the client is signed. A letter of award is not sufficient to include
the contract in the orderbook according to the Group. Additionally financial close must be reached when projects will be executed in
‘uncertain’ countries before including them in the orderbook.
Further on, experience shows that once an agreement has been reached, cancellations or substantial reductions in the scope or size of
contracts are quite rare, but they do occur, certainly in markets that are under severe pressure.
Orderbook by segment (in thousands of EUR)
2022 2021
Offshore Energy 3,260,909 2,816,564
Dredging & Infra 2,615,713 2,833,296
Environmental 313,378 255,330
Concessions - -
Total orderbook 6,190,000 5,905,190
The orderbook as per December 31, 2022, is record strong at 6.2 billion EUR, up 5% compared to last year (2021: 5.9 billion EUR).
Projects with a total value of 2.2 billion EUR were acquired in the course of 2022 (2021: 3.1 billion EUR). The orderbook is reflecting
continued healthy demand, strong market positioning and sizeable wins mainly in the Offshore Energy segment. The overall
orderbook at year-end is 2.3 times the 2022 turnover. The increase compared to last year is mainly led by strong demand in both the
Environmental and the Offshore Energy segments, the latter including the addition of major long-term projects in South-East Asia
(amongst others in Taiwan and Australia), United States and Europe.
Orderbook by geographical market (in thousands of EUR)
2022 2021
Europe - EU 2,467,294 2,866,266
Europe - non EU 898,747 814,462
Africa 306,325 414,346
Asia & Oceania 752,385 325,516
America 1,692,695 1,454,872
Indian subcontinent 68,033 25,786
Middle East 4,521 3,942
Total orderbook 6,190,000 5,905,190
From a geographical perspective the Europe and Africa region shows a decline in 2022 compared to 2021, largely offset by strong
wins in the Asia and America region. Europe still represents more than half of the orderbook.
218 CONSOLIDATED FINANCIAL STATEMENTS
Orderbook 2022 split in time
(in thousands of EUR)
2023 2024 2025
Beyond
Total
Total orderbook 2,307,546 1,612,426 1,4 48,181 821,847 6,190,000
Orderbook 2021 split in time
(in thousands of EUR)
2022 2023 2024
Beyond
Total
Total orderbook 2,021,167 1,456,930 1,079,065 1,348,028 5,905,190
The Group estimates that 37.3% of the orderbook will be executed in the next year (2021: 34.2%). Actual execution depends on several
factors, such as weather circumstances, soil and technical conditions, vessel availability and a lot of other factors.
NOTE 2 – OTHER OPERATING INCOME AND EXPENSES
Balance at December 31
OTHER OPERATING INCOME
(in thousands of EUR)
2022 2021
Gain on sale of property, plant and equipment 7,752 3,983
Gain on disposal of financial fixed assets 9 12,186
Other operating income 48,310 53,997
Total other operating income 56,071 70,166
In 2022 the gain on sale of property, plant and equipment is mainly related to the sale of the jack-up installation vessel ‘Thor’
(Offshore Energy segment), that was classified as assets held for sale at December 31, 2021. Sale took place in April 2022. Other gain
was realised on the sale of old equipment (Dredging & Infra segment). In 2021 the gain on sale of property, plant and equipment was
mainly related to the sale of the drilling platform ‘Li Ya’ (formerly ‘Goliath’).
Gain on disposal of financial fixed assets in 2022 is related to the profit on the sale of all the shares in Filterres to our partner in the
company. In 2021 the amount relates to the gain on the sale of 12.5% participation in Merkur Offshore Gmbh, a German windfarm.
Although the sale took place in 2020, an additional capital gain of 12.1 million EUR was recognised in 2021 as the result of a favourable
and final settlement of a contingent consideration previously accounted for.
Other operating income in 2022 includes delay damages of 18.8 million EUR related to the delivery of the vessel ‘Orion’ (Offshore
Energy segment) whereas the 2021 figures include received delay damages of 15 million EUR related to the delivery of the vessel
‘Spartacus’ (Dredging & Infra segment). Both delay damages compensate the incremental costs incurred because of the late delivery
of the vessels.
OTHER OPERATING EXPENSES
(in thousands of EUR)
2022 2021
Loss on disposal of financial fixed assets 17 -
Loss on sale of property, plant and equipment 440 10
Movement in amounts written off inventories and trade receivables -5,428 3,185
Movement in retirement benefit obligations 505 1,146
Movement in provisions 4,389 13,013
Other operating expenses 26,607 29,591
Total other operating expenses 26,529 46,945
Loss on sale of property, plant and equipment is mainly related to the disposal of the old crane of the offshore installation vessel ‘Sea
Installer’.
The decrease of amounts written off for inventories and trade receivables is partially caused by the final write-off of a customer
receivable and the related bad debt allowance. The allowance recognised as a cost in prior years is now reversed within amounts
written off for trade receivables, whereas the write-off of the customer is booked as a service cost in the consolidated statement
of income. The other movement in amounts written off for inventories and trade receivables is the reversal of the allowance for bad
debtors that are no longer uncollectable.
For the movement in provisions (mainly warranty provisions) reference is made to note (23) Provisions. More information about the
retirement benefit obligations can be found in note (21).
Other operating expenses mainly include various taxes, import and stamp duties. The decrease in 2022 compared to 2021 is related
to the deployment of several cutter and hopper suction dredgers in Egypt and their related other operating expenses incurred in
2021.
DEME ANNUAL REPORT 2022 219
CHAPTER 06
NOTE 3 – PERSONNEL EXPENSES AND EMPLOYMENT
Balance at December 31
Average number of persons employed during the year (in FTE)
2022 2021
Employees 2,985 2,797
Workers 2,168 2,083
Total 5,153 4,880
The average headcount reported in this note is based upon the consolidation scope whereby only the average headcount of entities
controlled by the Group are included.
Personnel expenses (in thousands of EUR)
2022 2021
Remuneration 428,954 416,972
Social charges 61,769 57,649
Pension expenses 15,020 14,275
Total 505,743 488,896
In 2021 DEME paid an amount to the Belgian tax authorities after the receipt of corrective tax assessments regarding prior years. The
amount paid is included in remuneration. This explains why the increase in personnel expenses is lower than the increase in average
headcount.
NOTE 4 – INTANGIBLE ASSETS
2022
(in thousands of EUR)
Development
costs
Concessions,
patents,
licences, etc.
Other
intangible
assets
Tot al
Acquisition cost at January 1, 2022 4,096 47,025 12,283 63,404
Movements
during the
year
Additions, including fixed assets, own production 1,744 371 - 2,115
Sales and disposals - -12,136 -19 -12,155
Transfers from one heading to another - - 1,324 1,324
Translation differences - 1 - 1
Additions through business combinations - - - -
Changes in consolidation scope or method - -853 - -853
At December 31, 2022 5,840 34,408 13,588 53,836
Cumulative amortisation and impairment at January 1, 2022 4,096 24,717 9,078 37,891
Movements
during the
year
Amortisation of the year - 3,056 885 3,942
Written down after sales and disposals - -12,136 -19 -12,155
Transfers from one heading to another - - - -
Translation differences - 1 - 1
Additions through business combinations - - - -
Changes in consolidation scope or method - -156 - -156
At December 31, 2022 4,096 15,482 9,944 29,522
Net book value at the end of prior year - 22,308 3,205 25,513
Net book value at the end of the year 1,744 18,926 3,644 24,315
220 CONSOLIDATED FINANCIAL STATEMENTS
The concessions, patents and licences do not include indefinite useful lives intangible assets.
In the line ‘Transfers from one heading to another’, also transfers from assets under construction originally booked within property,
plant and equipment are included.
In the addition of the year 2022, an amount of 1.7 million EUR is related to the capitalisation of development costs in the Concessions
segment.
Amortisation of the year is recognised under ‘depreciation and amortisation expenses’ in the consolidated income statement for an
amount of 3.9 million EUR. Amortisation of development costs starts at the earliest on the date financial close of the related project
is reached.
In the sales and disposals of the year 2022, a fully amortised licence fee, that expired was disposed of for an amount of 12 million EUR.
An amount of 14.4 million EUR out of the 24.3 million EUR total net book value of intangibles at the end of the year 2022 is related to
the purchase price allocation (PPA)-exercise of the SPT Offshore group (at the end of 2020). These intangibles are amortised over the
economic lifetime of 10 years.
2021
(in thousands of EUR)
Development
costs
Concessions,
patents,
licences, etc.
Other
intangible
assets
Tot al
Acquisition cost at January 1, 2021 4,007 48,557 7,963 60,527
Movements
during the
year
Additions, including fixed assets, own production - 1,620 288 1,908
Sales and disposals 89 -1,185 -33 -1,129
Transfers from one heading to another - -1,968 4,065 2,097
Translation differences - 1 - 1
Additions through business combinations - - - -
Changes in consolidation scope or method - - - -
At December 31, 2021 4,096 47,025 12,283 63,404
Cumulative amortisation and impairment at January 1, 2021 4,004 23,625 7,963 35,592
Movements
during the
year
Amortisation of the year 3 2,936 474 3,413
Written down after sales and disposals 89 -1,185 -33 -1,129
Transfers from one heading to another - -660 674 14
Translation differences - 1 - 1
Additions through business combinations - - - -
Changes in consolidation scope or method - - - -
At December 31, 2021 4,096 24,717 9,078 37,891
Net book value at the end of prior year 3 24,932 - 24,935
Net book value at the end of the year - 22,308 3,205 25,513
The addition of the year 2021 of 1.9 million EUR is primarily related to the capitalisation of software licences.
Amortisation charge of the year is recognised under ‘depreciation and amortisation expenses’ in the consolidated income statement
for an amount of 3.4 million EUR.
An amount of 17 million EUR out of the 25.5 million EUR total net book value of intangibles at the end of the year 2021 is related to
the purchase price allocation (PPA)-exercise of the SPT Offshore group (at the end of 2020). These intangibles are amortised over the
economic lifetime of 10 years.
DEME ANNUAL REPORT 2022 221
CHAPTER 06
NOTE 5 – GOODWILL
(in thousands of EUR)
2022 2021
Balance at January 1 13,028 13,339
Movements
during the
year
Acquisitions through business combinations - -
Disposals - -
Impairment losses - -311
Balance at December 31 13,028 13,028
IMPAIRMENT TESTING OF GOODWILL
In accordance with IAS 36
impairment of assets
, goodwill was tested for impairment at December 31, 2022 and 2021. In 2022 no
impairment losses were recognised. In 2021 impairment losses of 0.3 million EUR were recognised in the Environmental segment.
Within the DEME Group, goodwill is tested for impairment annually. The impairment tests are based on figures and insights of the
third quarter of the annual reporting year. If there is an indication that the cash generating unit to which the goodwill is allocated
could have suffered a loss of value, impairment testing is done more frequently than once a year. In 2022, there were no such
indicators and no additional impairment tests have been prepared.
Significant judgement by management is required to estimate the impact of macroeconomic and other factors on future cash flows,
including those related to the COVID-19 pandemic, the war in Ukraine and climate related matters (more detailed in section ‘risk
and uncertainties’ above). The Group believes the estimates and assumptions used in the impairment testing are reasonable and
are comparable to those that would be used by competitors. Management does not foresee activities negatively being impacted by
climate related business requirements, leading to an impairment loss, as the Group continues its strategy to promote the transition to
clean energy worldwide to its customers.
CARRYING AMOUNT OF GOODWILL
Goodwill is allocated to the cash generating unit that will benefit most of the knowledge acquired upon the acquisition. Management
has identified the lowest level of cash generating units based on the most appropriate and most detailed level of information about
operations available for internal reporting purposes. The current outstanding goodwill of the DEME Group is allocated as follows:
Carrying amount of goodwill
(in thousands of EUR)
2022 2021
CGU Infra 3,536 3,536
CGU Dredging – Asia Pacific 3,024 3,024
CGU Environmental Ecoterres 2,496 2,496
CGU Offshore 1,943 1,943
CGU Offshore Foundations 1,256 1,256
CGU Concessions 605 605
CGU Dredging DBM 168 168
Total 13,028 13,028
The comparison of the carrying amount of each mentioned cash generating unit with the recoverable amount of the respective cash
generating unit did not result in an impairment need for the annual reporting year 2022.
The recoverable amount of each cash generating unit is based on a discounted cash flow model that represents the fair value minus
the cost of disposal. The projected cash flows used are obtained from the budgets, prepared by management, of the respective cash
generating unit and approved by the Board of Directors. These budgets cover a three-year period. Cash flows beyond the three-year
period are extrapolated using a cautious growth rate of 1%. The discount rate used equals the weighted cost of capital (WACC)
calculated on the consolidated DEME Group figures, as per the third quarter of 2022, amounting to 5.55% compared to the WACC of
6.46% used in 2021.
SENSITIVITY ANALYSIS
A sensitivity analysis has been performed by adjusting important assumptions used in the calculation of the recoverable amount.
Gross margin
The gross margin used in the discounted cash flow model is based upon the estimates of management and has been approved by the
Board of Directors for a period of three years to come.
Sensitivity is tested by reducing the estimated gross margins to 95% of their initial value. Adjusting the gross margin downwards did
not result in impairment for any of the mentioned cash generating units.
Discount rate
The discount rate used is the weighted average costs of capital, calculated on DEME Group figures. Future cash flows will negatively
be impacted if the discount rate rises.
222 CONSOLIDATED FINANCIAL STATEMENTS
Sensitivity is tested by increasing the weighted average cost of capital with 1%. Adjusting the weighted average cost of capital to a
higher value did not result in an impairment for any of the mentioned cash generating units.
Growth rate
The DEME Group assumes a careful growth of 1% of its gross margin in the years to come. Should the growth percentage be lower, the
recoverable amount of each cash generating unit will drop.
Sensitivity is tested by reducing the growth rate to 0%. Adjusting the growth rate did not result in an impairment for any of the
mentioned cash generating units.
NOTE 6 – PROPERTY, PLANT AND EQUIPMENT
2022
(in thousands of EUR)
Land and
buildings
Floating
and other
construction
equipment
Furniture and
vehicles
Other
tangible
assets
Assets
under
construction
Tot al
property,
plant and
equipment
Acquisition cost at January 1, 2022 107,910 4,272,250 20,221 1,911 308,955 4,711,247
Movements
during the
year
Additions, including fixed assets, own production 12,970 154,614 1,983 70 316,342 485,980
Sales and disposals -1,169 -95,700 -1,711 -996 - -99,576
Transfer to 'Assets held for Sale' - -34,314 - - - -34,314
Transfers from one heading to another 55 394,451 8 6,311 -402,149 -1,324
Translation differences -14 3,381 1 - - 3,367
Acquisitions through business combinations - - - - - -
Changes in consolidation scope or method 171 - 62 -40 -106 87
At December 31, 2022 119,923 4,694,683 20,564 7,256 223,042 5,065,468
Cumulative depreciation and impairment at January 1, 2022 49,098 2,385,178 16,198 1,732 - 2,452,206
Movements
during the
year
Depreciation charge of the year 4,483 278,818 2,425 422 - 286,147
Written down after sales and disposals -17 -94,353 -1,591 -996 - -96,956
Transfer to 'Assets held for Sale' - -2,316 - - - -2,316
Transfers from one heading to another - -2,056 - 2,056 - -
Translation differences -13 4,248 16 - - 4,250
Acquisitions through business combinations - - - - - -
Changes in consolidation scope or method 84 46 -40 - 90
At December 31, 2022 53,635 2,569,518 17,094 3,174 - 2,643,420
Net book value at the end of prior year 58,812 1,887,072 4,023 179 308,955 2,259,041
Net book value at the end of the year 66,288 2,125,165 3,470 4,082 223,042 2,422,048
At December 31, 2022, the net book value of ‘Floating equipment’ as part of ‘Floating and other construction equipment’
contributes 99% to the total of this category. Other construction equipment within ‘Floating and other construction equipment’
consists amongst other of dry earth moving equipment, pipelines and equipment of DEME Infra.
In the first half of 2022 the DP3 offshore installation vessel ‘Orion’ joined the fleet and was transferred from ‘Assets under
construction’ to ‘Floating and other construction equipment’.
In January 2022, DEME has entered into an agreement with the Norwegian shipping company Eidesvik to acquire the DP3 offshore
installation vessel ‘Viking Neptun’. DEME is upgrading the vessel into a cable laying vessel and will integrate the vessel into the
DEME fleet in the first quarter of 2023.
In light of upgrading its fallpipe vessel fleet, DEME also invested in a new DP fallpipe vessel by purchasing and converting a bulk
carrier. The vessel will be equipped with a central fallpipe system with a large inclined fallpipe in order to allow pre- and post-lay
activities using rocks with larger diameters, close to subsea structures. This vessel will join the DEME fleet in the first half of 2024.
The amounts invested in 2022 in the ‘Orion’, ‘Viking Neptun’ and the fallpipe vessel (all assets of the Offshore Energy segment), are
included in the additions in ‘Assets under construction’.
The DP2 jack-up installation vessels ‘Sea Challenger’ and ‘Sea Installer’ are currently undergoing an extensive upgrade, preparing
them for offshore wind farm projects in Japan and US. For both vessels, the crane’s lifting capacity will be increased from 900 tonnes
to 1,600 tonnes and a wider beam and longer legs will enable the vessels to handle the next generation of mega wind turbines.
The amount invested in the ‘Sea Installer’ is included in the additions in ‘Floating and other construction equipment’.
The investment in the ‘Sea Challenger’ is carried out within a Japanese joint venture between DEME (49%) and partner Penta-
Ocean Construction. The company will upgrade and take possession of the ‘Sea Challenger’ in 2024 and reflag the vessel to the
DEME ANNUAL REPORT 2022 223
CHAPTER 06
Japanese flag. As the joint venture is consolidated according to equity method, the investment is not included in ‘Property, plant
and equipment’of the consolidated statement of financial position. DEME is however financing the vessel through capital and
shareholders loan included in the financial assets.
In 2020 CDWE, the Taiwanese joint venture between DEME (49.99%) and partner CSBC, ordered the offshore wind installation vessel
‘Green Jade’ in Taiwan. The floating heavy-duty crane and installation vessel with DP3 capacity will be equipped with a high-tech
crane with a lifting capacity of 4,000 tonnes. Starting in 2023, the vessel will be deployed in the thriving local offshore wind market.
As the joint venture is integrated according to equity method, the new vessel is not included in ‘Property, plant and equipment’ of
the consolidated statement of financial position. DEME however invested itself approximately 30 million EUR in CDWE in 2020 and
13.3 million EUR in 2021 as capital for the joint venture. No additional capital was invested by DEME in 2022. The joint venture itself
secured a long-term bank loan that will be drawn in 2023 for further payment of the ‘Green Jade’.
In 2022, 1.5 million EUR borrowing costs related to assets under construction were capitalised.
The depreciation cost of 2022 includes 0.4 million EUR impairment cost.
A vessel within the Offshore Energy segment, with a net book value of 32 million EUR, has been transferred to ‘Assets held for sale’
(note (14)).
In 2021 the jack-up installation vessel ‘Thor’, with a net book value of 32.5 million EUR, was transferred to ‘Assets held for sale’ and
was sold in 2022 (note (2)).
In the line ‘Transfers from one heading to another’, also transfers to intangible assets are included. The transfer to ‘other tangible
assets’ relates to the transfer of a vessel that is leased to an associate of the Group for a period of more than one year.
The line ‘sales and disposals’ of ‘floating and other construction equipment’ includes 52 million EUR (both acquisition cost and
cumulative depreciation) of priorly activated and fully depreciated dry-docking costs.
In the second half of 2022, an amount of 18.3 million EUR mortgage on vessels was released following the early repayment of the
related long-term loan.
At December 31, 2022, the commitment made for investments in the coming years amounts to 192.6 million EUR, mainly for the
upgrades for vessels ‘Viking Neptun’, ‘Sea Installer’, the new fallpipe vessel and some additional modifications to the ‘Orion’.
52% of DEME’s CAPEX can be regarded as taxonomy-eligible & aligned CAPEX (2021: 32%). This percentage (increased compared to
last year as a result of the investment in the ‘Viking Neptun’) is directly related to DEME’s fleet working on climate change mitigation
projects such as the construction and installation of foundations and wind turbines and their shore connections. Furthermore, at
current, climate risks do not have any significant impact on the useful life of the Group’s assets.
2021
(in thousands of EUR)
Land and
buildings
Floating
and other
construction
equipment
Furniture and
vehicles
Other
tangible
assets
Assets under
construction
Tot al
property,
plant and
equipment
Acquisition cost at January 1, 2021 98,742 3,998,148 19,153 1,911 505,821 4,623,775
Movements
during the
year
Additions, including fixed assets, own production 8,750 142,770 2,266 - 126,372 280,158
Sales and disposals -1,013 -136,246 -2,077 - -26 -139,362
Transfer to 'Assets held for Sale' - -58,699 - - - -58,699
Transfers from one heading to another 1,423 320,950 724 - -323,212 -115
Translation differences 8 5,327 155 - - 5,490
Acquisitions through business combinations - - - - - -
Changes in consolidation scope or method - - - - - -
At December 31, 2021 107,910 4,272,250 20,221 1,911 308,955 4,711,247
Cumulative depreciation and impairment at January 1, 2021 45,882 2,223,883 15,253 1,668 - 2,286,686
Movements
during the
year
Depreciation charge of the year 4,035 294,135 2,332 64 - 300,566
Written down after sales and disposals -827 -111,879 -2,184 - - -114,890
Transfer to 'Assets held for Sale' - -26,242 - - - -26,242
Transfers from one heading to another - 1,140 671 - - 1,811
Translation differences 8 4,141 126 - - 4,275
Acquisitions through business combinations - - - - - -
Changes in consolidation scope or method - - - - - -
At December 31, 2021 49,098 2,385,178 16,198 1,732 - 2,452,206
Net book value at the end of prior year 52,860 1,774,265 3,900 243 505,821 2,337,089
Net book value at the end of the year 58,812 1,887,072 4,023 179 308,955 2,259,041
224 CONSOLIDATED FINANCIAL STATEMENTS
In 2021 the cutter suction dredger ‘Spartacus’ and the service operation vessel ‘Groenewind’ joined the fleet and were transferred
from ‘Assets under construction’ to ‘Floating and other construction equipment’.
End of 2021, the net book value of the ‘Floating equipment’ amounts to 97% of the total net book value of 1,887 million EUR for
the ‘Floating and other construction equipment’. Other construction equipment within ‘Floating and other construction equipment’
consists amongst other of dry earth moving equipment, pipelines and equipment of DEME Infra.
In 2021, 4.4 million EUR borrowing costs related to assets under construction were capitalised.
The depreciation cost of 2021 includes 34.6 million EUR impairment cost of which 25.5 million EUR relates to the impairment of the
cutter suction dredgers ‘Al Mahaar’ and ‘Al Jarraf’. This impairment is exceptional and resulting from a strategic rebalancing of our
fleet upon the delivery of the cutter section dredger ‘Spartacus’.
The DP2 offshore installation vessel ‘Thor’, with a net book value of 32.5 million EUR, has been transferred to ‘Assets held for sale’
(note (14)).
In 2021 the offshore vessels ‘Li Ya’ (formerly ‘Goliath’) and ‘Omalius’ were sold. No gain on sale was realised for the ‘Omalius’. See
note (2) Other operating income.
In the line ‘Transfers from one heading to another’, also transfers to and from intangible assets and right-of-use assets are included.
At December 31, 2021, an amount of 18.3 million EUR mortgage on vessels is outstanding, which is a decrease of 37.4 million EUR
compared to 55.7 million EUR at December 31, 2020.
At December 31, 2021, the commitment made for investments in the coming years amounts to 251.7 million EUR, mainly for the
‘Orion’ and the upgrades for vessels ‘Viking Neptun’ and ‘Sea Installer’.
NOTE 7 – RIGHT-OF-USE ASSETS
2022
(in thousands of EUR)
Land and
buildings
Floating
and other
construction
equipment
Furniture and
vehicles
Tot al
Right-of-use
assets
Acquisition cost at January 1, 2022 90,204 10,376 34,143 134,722
Movements
during the
year
Additions, including fixed assets, own production 19,843 13,958 8,252 42,052
Sales and disposals -10,332 -3,309 -4,308 -17,948
Transfers from one heading to another - - - -
Translation differences -391 385 124 118
Acquisitions through business combinations - - - -
Changes in consolidation scope or method -22 - -63 -84
At December 31, 2022 99,303 21,410 38,14 8 158,860
Cumulative depreciation and impairment at January 1, 2022 23,090 5,367 15,645 4 4,102
Movements
during the
year
Depreciation charge of the year 13,632 6,404 8,547 28,582
Written down after sales and disposals -7,051 -2,216 -3,704 -12,971
Transfers from one heading to another - 51 -51 -
Translation differences -141 153 51 63
Acquisitions through business combinations - - - -
Changes in consolidation scope or method 109 - -20 89
At December 31, 2022 29,639 9,759 20,468 59,866
Net book value at the end of prior year 67,114 5,008 18,498 90,620
Net book value at the end of the year 69,664 11,650 17,680 98,994
The net carrying amount of right-of-use assets amounts to 99 million EUR at December 31, 2022, compared to 90.6 million EUR at the
end of 2021.
At December 31, 2022, the net book value of ‘Land and buildings’ can be split in 52.6 million EUR land and 17 million EUR buildings.
The category ‘Floating and other construction equipment’ includes amongst others support vessels, accommodation vessels and dry
earth equipment. The major increase in ‘Floating and other construction equipment’ in 2022 is related to the hire of vessels.
Lease liabilities that correspond with the right-of-use assets are disclosed in note (20).
DEME ANNUAL REPORT 2022 225
CHAPTER 06
2021
(in thousands of EUR)
Land and
buildings
Floating
and other
construction
equipment
Furniture and
vehicles
Tot al
Right-of-use
assets
Acquisition cost at January 1, 2021 74,909 10,952 24,969 110,830
Movements
during the
year
Additions, including fixed assets, own production 25,974 3,428 11,878 41,280
Sales and disposals -11,805 -2,332 -2,806 -16,943
Transfers from one heading to another - -1,967 - -1,967
Translation differences 1,126 295 101 1,522
Acquisitions through business combinations - - - -
Changes in consolidation scope or method - - - -
At December 31, 2021 90,204 10,376 34,142 134,722
Cumulative depreciation and impairment at January 1, 2021 18,475 5,980 10,458 34,913
Movements
during the
year
Depreciation charge of the year 10,543 3,364 7,831 21,738
Written down after sales and disposals -6,386 -2,332 -2,642 -11,360
Transfers from one heading to another - -1,760 -51 -1,811
Translation differences 458 115 49 622
Acquisitions through business combinations - - - -
Changes in consolidation scope or method - - - -
At December 31, 2021 23,090 5,367 15,645 44,102
Net book value at the end of prior year 56,434 4,972 14,511 75,917
Net book value at the end of the year 67,114 5,009 18,497 90,620
The net carrying amount of right-of-use assets amounts to 90.6 million EUR at December 31, 2021, compared to 75.9 million EUR at
the end of 2020.
At December 31, 2021, the net book value of ‘Land and buildings’ can be split in 52.0 million EUR land and 15.1 million EUR buildings
(2020: 37.9 million EUR land and 18.5 million EUR buildings). A major increase in land in 2021 is related to the long-term hire (till 2040)
of a yard in Vlissingen (The Netherlands).
226 CONSOLIDATED FINANCIAL STATEMENTS
NOTE 8 – INVESTMENTS IN JOINT VENTURES AND ASSOCIATES
The list of the companies contributing to DEME’s investments in joint ventures and associates, the percentage of shareholding by
the DEME Group, the segment in which they operate and the country of incorporation can be found earlier in this report. None of the
companies are listed on a public market. The joint ventures and associates have other contingent liabilities or commitments for which
the Group has a corresponding commitment for an amount of 80.0 million EUR (about 67.5 million related to Dredging & Infra).
In the financial statements, all investments in joint ventures and associates are accounted for using the equity method. Only in the
segment reporting, a separate chapter in this report, joint ventures are accounted for using the proportionate consolidation method.
The changes over the period are explained below.
The amount of goodwill included in the carrying amount of the Group’s interest in joint ventures is 0.3 million EUR with no change in
that amount in 2022 nor in 2021. There is no goodwill included in the carrying amount of associates.
Changes over the period
(in thousands of EUR)
Investments
in joint
ventures
Investments
in associates
2022
Investments
in joint
ventures
Investments
in associates
2021
Balance at January 1 90,564 39,390 129,954 71,248 28,737 99,985
Movements
during the
year
Additions 3,893 18,772 22,665 15,215 417 15,632
Disposals (-) -1,613 - -1,613 4,057 - 4,057
Share in the result of participations
accounted for using the equity method
5,891 9,936 15,827 -1,145 11,693 10,548
Dividends distributed by the participations -2,781 -7,870 -10,651 -3,694 -6,785 -10,479
Other comprehensive income 1,177 49,339 50,516 344 10,026 10,370
Other movements 336 -3,406 -3,070 -207 -5,367 -5,574
Translation differences -2,849 730 -2,119 4,746 669 5,415
Balance at December 31 94,619 106,891 201,510 90,564 39,390 129,954
Booked as a non-current asset 94,619 108,129 202,748 90,564 42,217 132,781
Booked as a non-current financial liability (- is credit) - -1,238 -1,238 - -2,827 -2,827
Most of the result of the year of the associates (9.3 million EUR) is related to the Concessions segment and its participations in
Rentel NV and Seamade NV that operate offshore wind farms, as well as to its participation in BAAK Blankenburgverbinding BV and in
Port of Duqm Company SAOC. The Offshore Energy segment contributes for 5.6 million EUR to the result of the year of joint ventures.
As for the dividends distributed by the participations in 2022, the amount received from associates comes from the participations
Rentel NV, Seamade NV and C-Power NV, whereas the dividend received from joint ventures mainly comes from Transterra NV.
Some joint ventures and associates finance significant assets such as infrastructure works, offshore wind farms or vessels and
therefore hold interest rate swaps (IRS). Per December 31, 2021, the other comprehensive income (OCI) of the current period
includes a positive amount of 28.3 million EUR compared to a negative amount of -22.2 million EUR at the end of 2021 (+50.5 million
EUR movement of the year). This reflects DEME’s share in the fair value of the IRSs of Rentel NV, C-Power NV, Seamade NV, Normalux
SA, BAAK Blankenburg-Verbinding BV and Port-La Nouvelle SEMOP, net of deferred tax assets. A minor amount of -0.02 million
EUR relates to the remeasurement of net liabilities relating to defined benefit and contribution plans. The fair value (DEME share)
is indirectly reflected in the consolidated balance sheet in the net assets of the investee for the same amount. The major positive
movement of the year of the hedging reserve of joint ventures and associates (+ 50.5 million EUR) is related to the general increase in
market interest rates compared to the hedged interest rates.
There are no equity accounted for investees where DEME has not recorded the share in the negative equity of the joint venture or
associate. The equity accounted for investees for whom the share in the net assets is negative, are allocated to other components
of the investor’s interest in the equity accounted investee such as shareholder loans on equity accounted investees. This allocation
is presented in the line 'other movements'. The amount can be positive or negative as the transfer from receivable to investment in
joint ventures and associates is reversed once the net assets of the equity accounted investees are positive again. If after allocation
the negative net asset exceeds the investor’s interest, a corresponding liability (non-current financial liability) is recorded instead of a
negative investment within non-current assets.
Additions of the year in 2022 includes investments in associates for 18.8 million EUR and investments in joint ventures for 3.9
million EUR. The investments in associates are mainly related to the Concessions segment and more specifically to the investment
in Thistle Wind Partners. In the beginning of 2022 this consortium had been awarded 2GW worth of option areas in Scotland’s highly
competitive Scotwind seabed leasing process. The investment in joint ventures relates to a capital increase in Scaldis NV, within
the Offshore Energy segment. In 2021 an amount of 13.3 million EUR was invested in CDWE Taiwan. The Taiwanese joint venture
between DEME (49.99%) and partner CSBC, ordered the offshore wind installation vessel ‘Green Jade’ in Taiwan. As the joint venture
is consolidated according to the equity method, this new vessel is not included in ‘Property, plant and equipment’ but DEME’s funding
in the new vessel is reflected through the addition of the year in the investments in joint ventures.
DEME ANNUAL REPORT 2022 227
CHAPTER 06
2022 SUMMARISED FINANCIAL INFORMATION
AND RECONCILIATION TO THE CARRYING AMOUNT
Summarised financial information of the Group’s associates and joint ventures by segment is set out below. This information
represents 100% amounts in associates and joint ventures financial statements prepared in accordance with IFRS Standards.
Intercompany transactions are not eliminated.
Summarised financial
information of associates
2022
(in thousands of EUR)
(100% standalone amounts)
Offshore
Energy
Dredging &
Infra
Environmental Concessions Tot al
Financial position
Non-current assets - -363 30,610 2,796,443 2,826,690
Current assets 14,063 53,552 43,967 1,361,206 1,472,788
Equity 1,506 10,949 16,224 1,031,499 1,060,178
Non-current liabilities 9,388 90 21,016 2,736,867 2,767,361
Current liabilities 3,169 42,149 37,337 389,282 471,937
Net financial debt (+ is net debt) 12,528 -7,407 10,114 2,604,622 2,619,857
Income statement
Revenues - 47,027 19,566 698,325 764,918
Result for the period 1,494 319 3,625 56,213 61,651
The Group’s associates can be mainly found in the Concessions segment and the non-current assets and liabilities (financial debt) of
them are mainly related to the offshore wind farms C-Power, Rentel and Seamade as well as to building of the roadway and tunnel of
Blankenburg in the Netherlands (BAAK).
Summarised financial
information of main associates
2022
(in thousands of EUR)
(100% standalone amounts)
Concessions
Tot al
C-Power NV Rentel NV Seamade NV
BAAK
Blankenburg-
Verbinding BV
Financial position
Non-current assets 594,813 762,021 1,062,573 - 2,419,407
Current assets 112,689 119,503 177,893 852,010 1,262,095
Equity 282,760 158,769 187,090 57,132 685,751
Non-current liabilities 352,347 647,613 925,233 770,671 2,695,864
Current liabilities 72,395 75,143 128,143 24,208 299,889
Net financial debt (+ is net debt) 318,371 624,735 924,504 738,086 2,605,696
Income statement
Revenues 129,235 123,211 140,683 260,341 653,470
Result for the period 5,787 21,460 11,676 12,321 51,244
228 CONSOLIDATED FINANCIAL STATEMENTS
Summarised financial
information of joint ventures
2022
(in thousands of EUR)
(100% standalone amounts)
Offshore
Energy
Dredging &
Infra
Environmental Concessions Tot al
Financial position
Non-current assets 252,247 2,542 5,070 - 259,859
Current assets 104,258 28,124 8,914 - 141,296
Equity 254,829 19,696 8,352 - 282,877
Non-current liabilities 67,058 2,144 1,783 - 70,985
Current liabilities 34,617 8,826 3,849 - 47,292
Net financial debt (+ is net debt) 26,817 -1,740 -2,633 - 22,444
Income statement
Revenues 110,669 16,650 7,132 - 134,451
Result for the period 12,201 -1,244 2,353 - 13,310
The Group’s joint venture activities relate to offshore works (CDWE Taiwan and Deeprock BV) and salvage works (Scaldis NV), both
within the Offshore Energy segment. In the Dredging & Infra segment most activity was noted in the joint venture K3 DEME BV, a 50%
joint venture with DEME Building Materials BV. There was no activity in Russia (Mordraga LLC) anymore in 2022.
The reconciliation of the total net assets to the carrying amount of the Group’s interests in the associates and joint ventures is as
follows.
Reconciliation to the carrying amount
of associates
2022
(in thousands of EUR)
Offshore
Energy
Dredging &
Infra
Environmental Concessions Tot al
Net assets of associates: 100% standalone amounts 1,506 10,949 16,224 1,031,499 1,060,178
Proportion of the Group's ownership interests in
the standalone amounts
27 5,471 2,938 162,679 171,115
Reconciliation items - - 198 -64,423 -64,225
Carrying amount of the Group's interest in
associates
27 5,471 3,135 98,256 106,889
Booked as a non-current asset 27 5,471 3,135 99,494 108,127
Booked as a non-current financial liability (- is credit) - - - -1,238 -1,238
Reconciliation to the carrying amount
of joint ventures
2022
(in thousands of EUR)
Offshore
Energy
Dredging &
Infra
Environmental Concessions Tot al
Net assets of associates: 100% standalone amounts 254,829 19,696 8,352 - 282,877
Proportion of the Group's ownership interests in
the standalone amounts
122,119 9,901 3,128 - 135,148
Reconciliation items -41,491 38 925 - -40,528
Carrying amount of the Group's interest in
associates booked as a non-current asset
80,628 9,939 4,053 - 94,620
The reconciliation items are related to the recognition of the income in accordance with the DEME Group accounting policies and to
the intercompany eliminations.
DEME ANNUAL REPORT 2022 229
CHAPTER 06
2021 SUMMARISED FINANCIAL INFORMATION
AND RECONCILIATION TO THE CARRYING AMOUNT
Summarised financial
information of associates
2021
(in thousands of EUR)
(100% standalone amounts)
Offshore
Energy
Dredging &
Infra
Environmental Concessions Tot al
Financial position
Non-current assets - 125 34,884 2,917,740 2,952,749
Current assets - 37,547 42,363 966,044 1,045,954
Equity - 9,955 13,470 651,486 674,911
Non-current liabilities - 1,715 23,059 2,887,892 2,912,666
Current liabilities - 26,002 40,719 344,405 411,126
Net financial debt (+ is net debt) - -7,556 12,140 2,508,011 2,512,595
Income statement
Revenues - 43,789 28,379 673,026 745,194
Result for the period - 2 3,171 67,077 70,250
Summarised financial
information of joint ventures
2021
(in thousands of EUR)
(100% standalone amounts)
Offshore
Energy
Dredging &
Infra
Environmental Concessions Tot al
Financial position
Non-current assets 156,776 19,266 5,266 - 181,308
Current assets 91,429 37,812 7,157 - 136,398
Equity 155,586 29,751 6,499 - 191,836
Non-current liabilities 57,921 5,466 2,136 - 65,523
Current liabilities 34,697 21,862 3,787 - 60,346
Net financial debt (+ is net debt) 27,497 -1,965 -2,227 - 23,305
Income statement
Revenues 87,630 148,722 5,780 - 242,132
Result for the period 4,790 -4,958 817 - 649
The reconciliation of the total net assets to the carrying amount of the Group's interests in the associated and joint ventures is as
follows:
Reconciliation to the carrying amount
of associates
2021
(in thousands of EUR)
Offshore
Energy
Dredging &
Infra
Environmental Concessions Tot al
Net assets of associates: 100% standalone amounts - 9,955 13,470 651,486 674,911
Proportion of the Group's ownership interests in
the standalone amounts
- 5,020 2,571 91,902 99,493
Reconciliation items - - 197 -60,300 - 60,103
Carrying amount of the Group's interest in
associates
- 5,020 2,768 31,602 39,390
Booked as a non-current asset - 5,020 2,805 34,392 42,217
Booked as a non-current financial liability (- is credit) - - -37 -2,790 -2,827
230 CONSOLIDATED FINANCIAL STATEMENTS
Reconciliation to the carrying amount
of joint ventures
2021
(in thousands of EUR)
Offshore
Energy
Dredging &
Infra
Environmental Concessions Tot al
Net assets of associates: 100% standalone amounts 155,586 29,751 6,499 - 191,836
Proportion of the Group's ownership interests in
the standalone amounts
73,052 14,618 2,434 - 90,104
Reconciliation items - -465 925 - 460
Carrying amount of the Group's interest in
associates
73,052 14 ,153 3,359 - 90,564
NOTE 9 – OTHER NON-CURRENT ASSETS
OTHER NON-CURRENT FINANCIAL ASSETS
(in thousands of EUR)
2022 2021
Balance at January 1 33,451 32,813
Movements
during the
year
Additions 10,699 984
Disposals (-) -14,716 -6,341
Transfer (to) from other items 3,081 5,995
Other movements -19 -
Translation differences 44 -
Balance at December 31 32,540 33,451
Of which
Loans to joint ventures and associates 24,173 25,668
Other non-current financial assets 8,367 7,783
Additions of 10.7 million EUR in 2022 are mainly loans granted to Thistle Wind Partners (2.3 million EUR) and Japan Offshore Marine
(6.8 million EUR).
Disposals include an amount of 11.5 million EUR in 2022 and 6.3 million EUR in 2021 for repayment of loans that have been granted to
the companies developing and meanwhile operating the Rentel and Seamade offshore wind farms. In 2022 also a shareholders loan of
3 million EUR was paid back within the Dredging & Infra segment.
No expected credit losses are recorded on other non-current financial assets as the repayment of the loans follows a solid business
plan.
The equity accounted investees for whom the share in the net assets is negative, are allocated to other components of the investor’s
interest in the equity accounted investee such as shareholder loans on equity accounted investees. This allocation is presented in the
line ‘Transfer (to) from other items’. The amount can be positive or negative as the transfer from receivable to investment in joint
ventures and associates is reversed once the net assets of the equity accounted investees are positive again.
The non-current financial assets, other than loans to joint ventures and associates mainly include long-term deposits and guarantees.
DEME ANNUAL REPORT 2022 231
CHAPTER 06
OTHER NON-CURRENT ASSETS
(in thousands of EUR)
2022 2021
Balance at January 1 4,239 3,221
Movements
during the
year
Additions 7,963 1,018
Disposals (-) -310 -
Transfer (to) from other items - -
Other movements - -
Translation differences - -
Balance at December 31 11,892 4,239
Other non-current assets are non-current operating receivables and loans.
The addition of 7.9 million EUR is mainly related to the long term part of the 10 million loan granted to the buyer of the ‘Thor’ vessel.
NOTE 10 – CURRENT TAXES AND DEFERRED TAXES
Balance at December 31
CURRENT TAXES AND DEFERRED TAXES RECOGNISED IN COMPREHENSIVE INCOME
(in thousands of EUR)
2022 2021
Current tax expense 36,558 45,979
Reclassification of deferred income taxes regarding prior financial years - -
Adjustments in respect of current income tax of previous years 7,353 -1,281
Total current tax expense / (income) 43,911 44,698
Relating to origination and reversal of temporary differences -11,003 -11,570
Movement of recognised tax losses carried forward -1,547 -2,049
Total deferred tax expense / (income) -12,550 -13,619
Current taxes and deferred taxes recognised in the income statement 31,361 31,079
- Employee benefits 1,294 -259
- Financial derivatives 15,122 1,826
Current taxes and deferred taxes recognised in other elements of the comprehensive
income (+ is liability)
16,416 1,567
Current taxes and deferred taxes recognised in comprehensive income 47,777 32,646
Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation
authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the
reporting date in the countries where the Group operates and generates taxable income.
Current income tax relating to items recognised directly in other comprehensive income is recognised in OCI and not in the statement
of income.
Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations
are subject to interpretation and establishes provisions where appropriate.
Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their
carrying amounts for financial reporting purposes at the reporting date.
The operational activities of the Group are subject to various tax regimes with tax rates ranging from 0% to 41.5%.
232 CONSOLIDATED FINANCIAL STATEMENTS
CURRENT INCOME TAX RECEIVABLES AND PAYABLES
Balance at December 31
(in thousands of EUR)
2022 2021
Current income tax receivables (+ is debet) 21,593 32,303
Current income tax payables (+ is credit) 66,571 76,370
Current income tax receivables are included in trade and other operating receivables in the consolidated statement of financial
position.
RECONCILIATION OF THE EFFECTIVE TAX RATE
Below a reconciliation between the effective tax rate and the tax rate applicable in Belgium is made.
(in thousands of EUR)
2022 2021
Result before taxes 130,925 137,869
Tax expense at nominal tax rate in Belgium which is 25% in 2022 and 2021 32,731 34,467
Increase (decrease) in tax rate resulting from:
Tax effect of non-deductible expenses 2,916 2,039
Tax effect of non-taxable revenue (
1
) -3,711 -9,525
Tax credits and impact of notional interest - -
Effects of different tax rates applicable to subsidiaries operating in other jurisdictions or
income taxable under special tax regimes such as tonnage tax (
2
)
-4,134 -7,823
Tax impact of (de)recognition of provisions for uncertain tax positions -6,648 -10,429
Tax impact of adjustments to current and deferred tax relating to previous periods 7,353 -1,281
Tax impact on losses for which no deferred tax assets were recognised (
3
) 2,854 23,631
Tax expense 31,361 31,079
Effective tax rate for the period 23.95% 22.54%
(1) Themaincomponentsofthetaxeffectonnon-taxablerevenuearetax-deductiblelossesoncapitalin2022andtax-deductiblelossesonreceivablesandrandom
depreciations in 2021.
(2) Theeffectivetaxrate(2022:23.95%)islowerthanthenominaltaxrateinBelgium(25%),becauseinseveralcountrieswhereweoperatedin2022thenominaltax
rate is relatively low and because of the application of tonnage tax. The same applied for 2021 (effective tax rate of 22.54%).
(3) Thedifferencebetween2022and2021iscausedbyontheonehandthereassessmentofrecogniseddeferredtaxassetsrelatingtotaxlossescarriedforward
in 2021 (increasing the effective tax rate) and on the other hand the usage of unrecognised tax losses in 2022 (for a corresponding tax effect of 6.4 million EUR),
decreasing the effective tax rate.
DEFERRED TAX ASSETS AND LIABILITIES SPLIT BY ORIGIN
The changes of the period of deferred tax assets and liabilities split by their origin is set out below.
Deferred taxes (both assets and liabilities) related to fixed assets are presented separately. These deferred tax positions relate to
both temporary differences between the statutory carrying amount and the carrying amount under the DEME group depreciation
policy and impairment corrections on fixed assets.
Deferred taxes regarding employee benefits (only deferred tax assets) are related to the provision booked for employee benefits
according to to IAS 19
employee benefits.
The column reversal statutory provision is mainly related to the reversal of the statutory provisions for repair and maintenance
which are not allowed under IFRSs.
Deferred taxes on other timing differences mainly relate to consolidation adjustments on running projects.
Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations
are subject to interpretation and establishes provisions where appropriate. These provisions for uncertain tax positions (UTP) are
booked as a deferred tax liability. In this regard, management considers UTP’s individually, based on an approach which provides the
best prediction of the resolution of the uncertainties with the tax authority. For 2022 (and 2021) each UTP has been measured using
the most likely single amount. Currently, the major UTP’s relate to ongoing tax litigations in the Philippines, India, and Nigeria.
DEME ANNUAL REPORT 2022 233
CHAPTER 06
Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused
tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the
deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised. The deferred tax
assets for tax losses and tax credits are booked separately. For a breakdown of the (un)recognised tax losses, see further section in
this note.
Deferred tax assets and liabilities regarding financial derivatives only concern fully consolidated companies, see also the section
regarding other comprehensive income.
2022
(in thousands of EUR)
Deferred tax liabilities
related to
Tangible
fixed
assets
Employee
benefits
Financial
derivatives
Reversal
statutory
provision
Long
term tax
accruals
(UTP)
Other
timing
differences
Netting Total
Balance at January 1 54,217 - 65 7,577 29,627 9,126 -26,399 74,213
Recognised in income statement -19,975 - 14,350 -7,113 -5,549 4,144 - -14,143
Charged to equity - - - - - - - -
Changes in consolidation scope or method - - - - - - - -
Exchange differences - - - - - -388 - -388
Netting (*) - - - - - - 7,467 7,467
Transfer - - - - - - - -
Balance at December 31 34,242 - 14,415 464 24,078 12,882 -18 ,932 67,149
Deferred tax assets
related to
Tangible
fixed
assets
Employee
benefits
Financial
derivatives
Tax los ses
Tax credits
and impact
of notional
interest
Other
timing
differences
Netting Total
Balance at January 1 26,180 13,218 1,293 48,773 17,634 54,251 -26,399 134,950
Recognised in income statement -3,685 -19 14,193 1,547 -450 -13,179 - -1,593
Charged to equity - -1,294 -15,122 - - - - -16,416
Changes in consolidation scope or method - - - - - - - -
Exchange differences - - - - - -20 - -20
Netting (*) - - - - - - 7,467 7,467
Transfer - 2,306 - - - -2,306 - -
Balance at December 31 22,495 14,211 364 50,320 17,184 38,746 -18,932 124,388
(*) The tax netting item reflects the netting of deferred tax assets and liabilities per entity.
234 CONSOLIDATED FINANCIAL STATEMENTS
2021
(in thousands of EUR)
Deferred tax liabilities
related to
Tangible
fixed
assets
Employee
benefits
Financial
derivatives
Reversal
statutory
provision
Long
term tax
accruals
(UTP)
Other
timing
differences
Netting Total
Balance at January 1 60,676 - 364 570 36,748 6,676 -57,677 47,358
Recognised in income statement -6,460 - -299 7,007 -7,120 2,073 - -4,799
Charged to equity - - - - - - - -
Changes in consolidation scope or method - - - - - - - -
Exchange differences - - - - - 377 - 377
Netting (*) - - - - - - 31,278 31,278
Transfer - - - - - - - -
Balance at December 31 54,216 - 65 7,577 29,628 9,126 -26,399 74,214
Deferred tax assets
related to
Tangible
fixed
assets
Employee
benefits
Financial
derivatives
Tax los ses
Tax credits
and impact
of notional
interest
Other
timing
differences
Netting Total
Balance at January 1 27,546 12,584 3,467 46,723 16,231 47,544 -57,677 96,418
Recognised in income statement -1,366 375 -348 2,049 1,403 6,707 - 8,820
Charged to equity - 259 -1,826 - - - - -1,567
Changes in consolidation scope or method - - - - - - - -
Exchange differences - - - - - - - -
Netting (*) - - - - - - 31,278 31,278
Transfer - - - - - - - -
Balance at December 31 26,180 13,218 1,293 48,772 17,634 54,251 -26,399 134,949
(*) The tax netting item reflects the netting of deferred tax assets and liabilities per entity.
DEFERRED TAX ASSETS AND LIABILITIES RECORDED IN OTHER COMPREHENSIVE INCOME
The following movements in deferred tax assets and liabilities, as well as the items they relate to, were recorded in other
comprehensive income:
2022
(in thousands of EUR)
Before
income tax
Income tax
Net of
income tax
Changes in fair value related to hedging instruments 60,577 -15,122 45,455
Remeasurement of net liabilities relating to defined benefit plans 5,247 -1,294 3,953
Total 65,824 -16,416 49,408
2021
(in thousands of EUR)
Before
income tax
Income tax
Net of
income tax
Changes in fair value related to hedging instruments 6,408 -1,826 4,582
Remeasurement of net liabilities relating to defined benefit plans -1,105 259 -846
Total 5,303 -1,567 3,736
DEME ANNUAL REPORT 2022 235
CHAPTER 06
INCOME TAX LOSSES CARRIED FORWARD
In 2022, income tax losses carried forward of subsidiaries amount to 460 million EUR. For 200 million EUR of these tax losses,
deferred tax assets have been recognised. The table below provides a breakdown by maturity of the recognised tax losses of
subsidiaries and the amounts (share of the Group) related to joint ventures and associates. For an amount of 260 million EUR of tax
losses of subsidiaries, no deferred tax assets is recognised.
In 2021, income tax losses carried forward of subsidiaries for which no deferred tax assets are recognised amount to 241 million EUR.
(in thousands of EUR)
2022
Expiration date within 1 year -
Expiration date after 1 year but not later than 5 years 32,613
Expiration date after 5 years and tax losses without an expiration date 167,257
Total recognised tax losses from subsidiaries 199,870
Recognised tax losses from joint ventures and associates (share of the Group) 190
Total recognised tax losses 200,060
Unrecognised tax losses from subsidiaries 260,291
Unrecognised tax losses from joint ventures and associates (share of the Group) 39,196
Total unrecognised tax losses 299,487
Total tax losses 499,547
NOTE 11 – INVENTORIES
Balance at December 31
(in thousands of EUR)
2022 2021
Raw materials 2,779 2,683
Consumables 22,917 9,485
Total inventories 25,696 12,168
Movement of the year recorded in statement of income 13,528 1,712
Inventories can be split into ‘Raw materials’ and ‘Consumables’. Raw materials are mainly related to ballast & dredged material and
sand from the marine aggregate business within the segment “Dredging & Infra”. Consumables mainly consist out of fuel, auxiliary
materials and spare parts.
The movement of the year of consumables (13.4 million EUR) is mainly impacted by the moment of refueling of the vessels and the fuel
usage up till closing date. Also the start-up of some major projects and preparation of the fleet explain the increase of the year.
No inventories are pledged as security for liabilities.
NOTE 12 – CONTRACT ASSETS AND CONTRACT LIABILITIES
Balance at December 31
Contract assets and contract liabilities relate in compliance with IFRS 15
revenue from contracts with customers
to the work in
progress of construction projects executed by the Group and services rendered. Work in progress shows the balance of revenue
recognised on those contracts less progress billings, advance payments and potential provisions for losses. Advances received are
amounts received by the Group before the related work is performed. The Group presents those separately from other contract
liabilities.
The Group carries out a diversity of projects, all with different aspects regarding e.g. nature and scope, type of clients, type of
contract and payment conditions and geographical location. Most of the turnover is paid with an advance received at the beginning of
the project followed by milestone payments after execution of the work and approval by the client.
236 CONSOLIDATED FINANCIAL STATEMENTS
(in thousands of EUR / (-) is credit)
2022 2021
Contract assets 344,751 326,685
Contract liabilities -323,300 -181,095
Advances received -72,539 -101,067
Net balance -51,088 44,523
Contract assets are the Group’s right to consideration in exchange for goods or services that the entity has transferred to a customer
when that right is conditioned on something other than the passage of time. A contract asset arises when the Group performed works
for a customer that are recognised as revenue to date but are not yet invoiced or paid. As such the revenue recognition reflects the
rate at which the Group’s performance obligations are fulfilled corresponding to the transfer of control of a good or service to the
customers. When there is no transfer of control throughout the contract, revenue is still recognised over time, based on the fact that
the asset created has no alternative use, as well as the fact that the Group has an enforceable right to the payment for performance
completed to date. Contract assets turn into receivables when those works are accepted by the client.
Contract liabilities are the Group’s obligation to transfer goods or services to a customer for which the entity has received
consideration from the customer. A contract liability arises when the Group has invoiced the customer or received payment from them
while the work was not done yet and the invoices and/or payments exceed the revenue recognised to date. Provisions are recognised
for expected losses on work in progress as soon as they are foreseen and if necessary, any profit already recognised is reversed. Those
are also recognised as contract liabilities for an amount of 24.8 million EUR as of December 31, 2022, compared to 8.1 million EUR at
the end of 2021.
The determination of estimated profit (or loss) is based on estimated costs and revenues of the related projects and for profitable
projects only, in proportion to the stage of completion. These estimates and judgments may contain some uncertainties.
2022 CONTRACT ASSETS AND CONTRACT LIABILITIES BY SEGMENT
(in thousands of EUR / (-) is credit)
2022
Contract assets
Balance at January 1
Business-related
changes
Changes in
consolidation scope
Balance at
December 31
Offshore Energy 68,174 34,387 - 102,561
Dredging & Infra 239,379 -37,082 - 202,297
Environmental 19,132 20,761 - 39,893
Concessions - - - -
Total 326,685 18,066 - 344,751
2022
Contract liabilities
Balance at January 1
Business-related
changes
Changes in
consolidation scope
Balance at
December 31
Offshore Energy -51,075 -180,716 - -231,791
Dredging & Infra -124,693 41,126 - -83,567
Environmental -5,327 -2,615 - -7,942
Concessions - - - -
Total -181,095 -142,205 - -323,300
2022
Advances received
Balance at January 1
Business-related
changes
Changes in
consolidation scope
Balance at
December 31
Offshore Energy -79,490 26,392 - -53,098
Dredging & Infra -20,464 1,496 - -18,968
Environmental -1,113 640 - -473
Concessions - - - -
Total -101,067 28,528 - -72,539
DEME ANNUAL REPORT 2022 237
CHAPTER 06
2022
Net balance
Balance at January 1
Business-related
changes
Changes in
consolidation scope
Balance at
December 31
Offshore Energy -62,391 -119,937 - -182,328
Dredging & Infra 94,222 5,540 - 99,762
Environmental 12,692 18,786 - 31,478
Concessions - - - -
Total 44,523 -95,611 - -51,088
‘Business-related changes’ relate to cumulative catch up adjustments arising from a change in the measure of progress, a change
in an estimate of the transaction price (including any changes in the assessment of whether an estimate of variable consideration is
constrained) or a contract modification.
The increase in contract liabilities as of December 31, 2022, is mainly related to the US offshore contracts that are not yet fully
operational at the end of 2022, but for which a consideration was already received.
Due to the high number of individual projects (with all different aspects regarding nature, type of clients, contract and payment
conditions) a more detailed description of changes in contract assets and contract liabilities compared to prior year is not deemed
relevant.
Around 55% of the performance obligations, meaning the turnover to be executed in the upcoming years regarding the current
ongoing construction contracts for which contract assets and contract liabilities are booked, is expected to be fulfilled by the Group
next year, followed by 20% in 2024, 15% in 2025 and 10% beyond. The related contract assets and contract liabilities as of December
31, 2022 are expected to follow a similar timing for run-off.
2021 CONTRACT ASSETS AND CONTRACT LIABILITIES BY SEGMENT
(in thousands of EUR / (-) is credit )
2021
Contract assets
Balance at January 1
Business-related
changes
Changes in
consolidation scope
Balance at
December 31
Offshore Energy 108,331 -40,157 - 68,174
Dredging & Infra 135,310 104,069 - 239,379
Environmental 8,106 11,026 - 19,132
Concessions - - - -
Total 251,747 74,938 - 326,685
2021
Contract liabilities
Balance at January 1
Business-related
changes
Changes in
consolidation scope
Balance at
December 31
Offshore Energy -7,779 -43,296 - -51,075
Dredging & Infra -144,269 19,576 - -124,693
Environmental -4,751 -576 - -5,327
Concessions - - - -
Total -156,799 -24,296 - -181,095
2021
Advances received
Balance at January 1
Business-related
changes
Changes in
consolidation scope
Balance at
December 31
Offshore Energy -33,211 -46,279 - -79,490
Dredging & Infra -26,941 6,477 - -20,464
Environmental -430 -683 - -1,113
Concessions - - - -
Total -60,582 -40,485 - -101,067
238 CONSOLIDATED FINANCIAL STATEMENTS
2021
Net balance
Balance at January 1
Business-related
changes
Changes in
consolidation scope
Balance at
December 31
Offshore Energy 67,341 -129,732 - -62,391
Dredging & Infra -35,900 130,122 - 94,222
Environmental 2,925 9,767 - 12,692
Concessions - - - -
Total 34,366 10,157 - 44,523
NOTE 13 – TRADE AND OTHER OPERATING RECEIVABLES
Balance at December 31
(in thousands of EUR)
2022 2021
Trade receivables gross amount 424,476 314,175
Amounts written off -13,018 -18,423
Trade receivables net amount 411,458 295,752
Corporation taxes 21,593 32,302
Value added tax (VAT) 27,642 41,354
Other operating receivables 8,836 14,614
Total trade and other operating receivables 469,529 384,022
The increase in trade receivables of 115.7 million EUR at the end of 2022 is partially compensated by a decrease in all other operating
receivables for an amount of 30.2 million EUR. The increase in trade and other operating receivables is partly due to an increase
in activities but mainly due to the progress of major projects and the timing of invoicing as contract assets are transferred to
receivables upon acceptance by the client. The increase in trade receivables is not caused by an increase in overdue amounts.
The ageing balance of outstanding trade receivables is included in note (19). The Group carries out a diversity of projects, all
with different characteristics regarding e.g. nature and scope, type of clients, type of contract and payment conditions and
geographical location. A large part of the consolidated turnover is realised through public or semi-public sector customers. The
level of counterparty risk is also limited by the large number of customers. The Group applies procedures to monitor its outstanding
receivables and as such to limit the residual risk. Based upon both historical and current assessments taking into account macro-
economic developments and industry risk factors, credit losses within the Group remain insignificant compared to the level of activity.
Reference is made to note (10) for current income tax receivables.
Other operating receivables mainly relate to amounts due from joint ventures, current accounts with consortium partners and
personnel advances.
Note (26) Related parties disclosure summarises all receivables and payables towards joint ventures and associates.
DEME ANNUAL REPORT 2022 239
CHAPTER 06
NOTE 14 – ASSETS HELD FOR SALE
Balance at December 31
(in thousands of EUR)
2022 2021
Assets held for sale 31,997 32,456
According to IFRS 5
non-current assets held for sale and discontinued operations
the following conditions must be met for an asset (or
‘disposal group’) to be classified as held for sale:
- management is committed to a plan to sell;
- the asset is available for immediate sale;
- an active program to locate a buyer is initiated;
- the sale is highly probable, within 12 months of classification as held for sale;
- the asset is being actively marketed for sale at a sales price reasonable in relation to its fair value;
- actions required to complete the plan indicate that it is unlikely that the plan will be significantly changed or withdrawn.
Per December 31, 2022, DEME management is of the opinion that all of the conditions have been fulfilled and a sale within the next 12
months is highly probable for a vessel within the Offshore Energy segment. The net book value of the vessel is 32 million EUR, which is
the lower of the carrying amount and fair value at closing date.
In August 2021, a Memorandum of Agreement was signed under which the jack-up vessel ‘Thor’, another vessel belonging to the
Offshore Energy segment, was sold to a Dutch third party on the condition that the buyer obtained the necessary funding for the
vessel. As such, the ‘Thor’ vessel was classified as assets held for sale at the end of December, 2021. On April 21, 2022, the ‘Thor’ vessel
was sold, the resulting gain on disposal is included in ‘other operating income’.
NOTE 15 – OTHER CURRENT ASSETS
Balance at December 31
(in thousands of EUR)
2022 2021
Deferred charges and accrued income 100,950 45,710
Environmental landfill volume reservation fee 8,320 7,530
Advance payments on purchases and cost of material regarding construction contracts
for costs not incurred
14,963 14,952
Other current assets 124,233 68,192
Deferred charges and accrued income include amongst others deferred hedge charges for construction contracts, only for their
percentage not completed. The hedge charges of construction contracts are recorded as construction cost for the percentage
completed. The increase in 2022 compared to 2021 is related to deferred hedge charges for the new offshore energy contracts in the
US.
240 CONSOLIDATED FINANCIAL STATEMENTS
NOTE 16 – SHARE CAPITAL, DIVIDENDS AND RESERVES
SHAREHOLDER STRUCTURE AND SHARE CAPITAL
Until June 29, 2022, DEME NV was the parent company of the DEME Group and DEME’s 100% shareholder was the Brussels-based
civil engineering contractor CFE NV, which is controlled by the Belgian investment group Ackermans & van Haaren NV. Both CFE
NV and Ackermans & van Haaren NV are publicly listed companies on Euronext Brussels. The share capital of DEME NV amounts to
31,110,010 EUR and is represented by 4,538,100 ordinary shares without nominal value.
On June 29, 2022, CFE NV, transferred its 100% stake in DEME NV to a new company, DEME Group NV, by means of a partial demerger
and as such the DEME Group became listed as well. The first day of trading of the DEME Group NV shares was June 30, 2022. DEME
Group NV shares are listed on Euronext Brussels under the symbol “DEME” with ISIN code BE0974413453.
DEME Group NV is now 100% shareholder of DEME NV and at the date of the demerger the participation in DEME NV was the only
asset of the company booked against equity.
Per December 31, 2022, the share capital of DEME Group NV amounts to 33,193,861 EUR and is represented by 25,314,482 ordinary
shares without nominal value. The owners of ordinary shares have the right to receive dividends and all shares are of the same class
and are entitled to one vote per share in Shareholders’ General Meetings.
At December 31, 2022, the shareholder structure of DEME Group NV is as follows:
Acke rm an s & va n Ha ar en N V
DE ME G RO UP N V
DE ME XBRU BE0974413453
DEME NV
Vinci Construction SAS EURONEXT BRUSSELS
62.12%
100%
12.11% 25.77%
The shareholders holding 5% or more of total voting rights for the shares they hold are:
Ackermans & van Haaren NV VINCI Construction SAS
15,725,684 shares (or 62.12%) 3,066,460 shares (or 12.11%)
Begnenvest,113 5,coursFerdinand-de-Lesseps
B-2000 Antwerp (Belgium) F-92851 Rueil-Malmaison Cedex (France)
PROPOSED AND DISTRIBUTED DIVIDENDS
For the financial year 2020 a dividend of 20,421,450 EUR was paid to CFE NV on May 14, 2021, corresponding to 4.5 EUR gross
dividend per share. An intermediary dividend, paid out of the accumulated results at the end of the financial year 2020, was approved
by DEME NV’s shareholder for an amount of 40,842,900 EUR, corresponding to 9 EUR gross dividend per share. This dividend was paid
to CFE NV on March 25, 2022. No additional dividend was decided upon by DEME NV’s shareholder on the results at the end of financial
year 2021.
DEME Group's Board of Directors will propose to the General Assembly, on May 17, 2023, to distribute a gross dividend of 1.5 euro
per share. Subject to the approval of the General assembly and the Board of Directors, the record date is proposed to be set at July 4,
2023.
DEME ANNUAL REPORT 2022 241
CHAPTER 06
RETAINED EARNINGS AND OTHER RESERVES
Balance at December 31
The consolidated statement of changes in equity is presented earlier in this report. In the table below, we further detail the movement
of the period in retained earnings and other reserves.
2022
(in thousands of EUR)
Parent company reserves before profit distribution
Revaluation
surplus
Legal reserves
Untaxed
reserves
Available
reserves
Retained
earnings
Consolidation
reserves
Retained
earnings and
other reserves
Balance at January 1, 2022 3,111 28,922 3,270 267,027 1,316,494 1,618,824
Parent company result 2021 79,217 -79,217 -
Dividends paid -40,843 -40,843
Result share of the Group 112,720 112,720
Other 487,400 208 -27,206 -1,356 -249,776 -681,699 -472,429
Balance at December 31, 2022 487,400 3,319 1,716 1,914 55,625 668,298 1,218,272
The line ‘Other’ relates to the fact that since June 29, 2022, there is a new parent company DEME Group NV on top of DEME NV that
was the parent company at the beginning of the year. The retained earnings and other reserves at the end of 2022 are those of the
new parent company DEME Group NV.
2021
(in thousands of EUR)
Parent company reserves before profit distribution
Legal reserves
Untaxed
reserves
Available
reserves
Retained
earnings
Consolidation
reserves
Retained
earnings and
other reserves
Balance at January 1, 2021 3,111 28,922 3,270 225,435 1,263,926 1,524,664
Parent company result 2020 62,013 -62,013 -
Dividends paid -20,421 -20,421
Result share of the Group 114,581 114,581
Balance at December 31, 2021 3,111 28,922 3,270 267,027 1,316,494 1,618,824
NOTE 17 – EARNINGS PER SHARE
Balance at December 31
(in thousands of EUR)
2022
2021
pro forma (*)
2021
Result for the period from continuing operations - Share of the Group 112,720 114,581 114,581
Result for the period - Share of the Group 112,720 114,581 114,581
Comprehensive income - Share of the Group 215,247 132,472 132,472
Number of ordinary shares at balance sheet date 25,314,482 25,314,482 4,538,100
Earnings per share, based on the number of ordinary shares at the end
of the period (both basic and diluted) in EUR:
Earnings per share from continuing operations (Share of the Group) 4.45 4.53 25.25
Earnings per share (Share of the Group) 4.45 4.53 25.25
Comprehensive income (Share of the Group) per share 8.50 5.23 29.19
(*) Pro forma assuming the same amount of shares for 2021 as for 2022 (25,314,482 shares at the end of 2022).
Basic earnings per share is calculated by dividing the ‘Result for the period – Share of the Group’ attributable to ordinary equity
holders of the parent by the weighted average number of ordinary shares outstanding during the year.
242 CONSOLIDATED FINANCIAL STATEMENTS
NOTE 18 – INTEREST-BEARING DEBT AND NET FINANCIAL DEBT
Balance at December 31
NET FINANCIAL DEBT AS DEFINED BY THE GROUP
(in thousands of EUR / (-) is debit balance)
2022 2021
Non-current Current Total Non-current Current Total
Subordinated loans 677 - 677 542 135 677
Lease liabilities (note (20)) 76,382 24,960 101,342 72,275 20,118 92,393
Credit institutions 711,441 227,910 939,351 503,649 217,637 721,286
Long-term loan facility 1 6,286 31,315 37,601 37,601 57,942 95,543
Long-term loan facility 2 19,476 31,408 50,884 50,883 41,407 92,290
Long-term loan facility 3 109,375 31,250 140,625 140,625 31,250 171,875
Long-term loan facility 4 157,054 4 4,196 201,250 201,250 44,196 245,446
Long-term loan facility 5 357,500 55,000 412,500 - - -
Asset-based loan 1 (*) - - - 100 4,573 4,673
Asset-based loan 2 100 2,344 2,444 2,443 4,687 7,130
Asset-based loan 3 100 3,813 3,913 3,913 3,813 7,726
Asset-based loan 4 3,666 3,566 7,232 7,232 3,566 10,798
Asset-based loan 5 5,423 4,192 9,615 9,615 4,192 13,807
Asset-based loan 6 25,220 12,560 37,780 37,780 12,560 50,340
Asset-based loan 7 18,775 6,225 25,000 - - -
Other long-term bank loans 8,466 2,041 10,507 12,207 9,451 21,658
Other long-term loans 1,404 - 1,404 1,504 - 1,504
Short-term credit facilities - - - - 105,450 105,450
Short-term bank loans - - - - 105,450 105,450
Short-term commercial paper - - - - - -
Total interest-bearing debt 789,904 252,870 1,042,774 577,970 343,340 921,310
Short-term deposits - -31,646 -31,646 - -14,026 -14,026
Cash at bank and in hand - -490,615 -490,615 - -514,606 -514,606
Total cash and cash equivalents - -522,261 -522,261 - -528,632 -528,632
Total net financial debt 789,904 -269,391 520,513 577,970 -185,292 392,678
(*) Initial maturity till 2026. Early repayment in 2022.
To finance the DEME Group capital expenditure (vessels and other equipment), equity participations (e.g. by DEME Concessions)
and acquisitions, DEME sources its funding through term loan facilities, which are available for general corporate purposes as well as
through asset-based loans.
The total subordinated loan is contracted by entity CTOW (and includes the part due to the partners in the company). As per contract
modalities no fix instalments are due, therefore the loan is reported as long term debt and will be reported as short term the year
before maturity date.
Currently, DEME Coordination Center NV, which serves as in-house bank financing the DEME-entities, has term loan facilities with
eleven different commercial banks. Same as for the revolving credit facilities, the documentation is signed bilaterally (no club deal),
catering for optimal financing conditions and maximum flexibility. The term loan facility documentation is identical for all banks,
apart from the amount, tenor and commercial conditions.
On May 20th, 2022, DEME Coordination Center NV entered additionally into bilateral term loan facility agreements. These facilities
were fully drawn on June 15th, 2022. The financing package amounting to 440 million EUR, is amortised over eight years (16 equal
half-yearly capital instalments) and is based on the loan documentation that was used for previous transactions, updated to the
new LMA-standard, including the sustainability KPI’s that were introduced in all term loan facility agreements in February 2022. The
financial covenants applying to the new credit facilities are the same as in previous transactions.
DEME ANNUAL REPORT 2022 243
CHAPTER 06
In line with DEME’s sustainability goals, the Group converted its long-term loans into sustainability-linked loans, totalling 843 million
EUR at the end of 2022. This major commitment highlights DEME’s vision to realise a sustainable future. The two metrics required by
the loan-agreements are the worldwide LTIFR and the low carbon fuels. With one metric above target and one below, the impact on
the result for 2022 is neutral.
(in thousands of EUR)
Initial amount Dating from Maturity till
Long-term loan facilities
Long-term loan facility 1 435,000 2015-2017 2024
Long-term loan facility 2 240,000 2018 2025
Long-term loan facility 3 250,000 2019 2027
Long-term loan facility 4 350,000 2019 2027
Long-term loan facility 5 440,000 2022 2030
1,715,000
Asset-based loans
Asset-based loan 1 (*) 18,392 2018 2022
Asset-based loan 2 18,848 2019 2027
Asset-based loan 3 15,352 2019 2027
Asset-based loan 4 14,364 2020 2028
Asset-based loan 5 18,000 2020 2028
Asset-based loan 6 50,340 2021 2029
Asset-based loan 7 25,000 2022 2030
160,296
(*) Initial maturity till 2026. Early repayment in 2022.
The interest rate of the long-term loan facilities is based on EURIBOR plus a margin which is updated each semester following DEME’s
leverage ratio. The interest rate risk resulting from this floating interest rate base, is hedged through interest rate swaps (note
(19)). The interest rate of the asset-based loans is fixed. Next to the long-term loan facilities and asset-based loans, DEME has lease
liabilities and other long-term loans.
DEBT MATURITY SCHEDULE OF TOTAL LONG-TERM FINANCIAL LIABILITIES
(in thousands of EUR)
More than 5
years
Between 1 and
5 years
Less than one
year
Tot al
Subordinated loans - 677 - 677
Lease liabilities 35,315 41,067 24,960 101,342
Credit institutions 140,494 570,947 227,910 939,351
Other long-term loans - 1,404 - 1,404
Total long-term financial liabilities 175,809 614,095 252,870 1,042,774
BANK DEBT SECURITIES
(in thousands of EUR)
2022 2021
Non-current Current Total Non-current Current Total
Guaranteed debt 711,441 227,910 939,351 500,515 311,349 811,864
Secured debt - - - 3,125 6,250 9,375
Unguaranteed-unsecured debt 78,463 24,960 103,423 74,330 25,741 100,071
Total interest-bearing debt 789,904 252,870 1,042,774 577,970 343,340 921,310
Contrary to the way DEME financed its assets before 2015, whereby for each investment, DEME looked for a bank (or a few banks)
and provided hard securities in favour of the banks (such as mortgages on the vessels), no securities (other than the DEME NV parent
company guarantee) are provided for the long-term loan facilities and for the asset-based loans listed above. This offers maximum
flexibility with respect to the underlying assets, which can be sold intragroup and can be reflagged according to project needs.
244 CONSOLIDATED FINANCIAL STATEMENTS
CASH FLOWS RELATED TO FINANCIAL LIABILITIES
Total interest-bearing debt
(in thousands of EUR)
2022 2021
Balance at January 1 921,310 1,110,967
Cash movements as per cash flow from financial activities
Movements
during the
year
New interest-bearing debt 465,000 51,344
Repayment of interest-bearing debt -380,488 -278,875
Non-cash movements
Movements
during the
year
Assumed in business combinations - -
IFRS 16
leases
36,952 36,389
Other - 1,485
Balance at December 31 1,042,774 921,310
CASH AND CASH EQUIVALENTS
Cash and cash equivalents relate to cash and cash equivalents centralised at DEME’s internal bank, DEME Coordination Center NV, but
also at operational subsidiaries and joint ventures. Therefore, a portion of the consolidated cash and cash equivalents is not always
immediately available as a result of transfer restrictions, joint control (in joint operations) or other legal restrictions.
At December 31, 2022, the amount of cash available for use by the Group amounted to 388.2 million EUR out of 522.3 million EUR
cash & cash equivalents. As such an amount of 134.1 million EUR was not immediately available. At the end of 2021 the cash that is
immediately available amounted to 405 million EUR out of 528.6 million EUR cash and cash equivalents. The cash not immediately
available amounted to 123.6 million EUR.
CREDIT FACILITIES AND BANK TERM LOANS
At December 31, 2022, the Group has 125 million EUR available but undrawn bank credit facilities compared to 118 million EUR at the
end of 2021. In addition, the Group has the possibility to issue commercial paper for amounts up to 125 million EUR.
FINANCIAL COVENANTS
The same set of financial covenants as for the revolving credit facilities is applicable for the long-term loan facilities. At December 31,
2022 as well as at December 31, 2021 the Group complies with the solvency ratio (>25%), the debt/EBITDA ratio (<3), and the interest
cover ratio (>3), that were agreed upon within the contractual terms of the loans received.
The solvency ratio that should be higher than 25% is computed as shareholders’ equity less intangible assets and goodwill divided by
the balance sheet total adjusted for intangible assets and deferred tax assets. The solvency ratio at December 31, 2022 was 38.1%
(identical to 2021: 38.1%).
The debt/EBITDA ratio computed as total net financial debt (without subordinated and other loans) divided by EBITDA, should be
lower than 3. The debt/EBITDA ratio at December 31, 2022 was 1.09 (2021: 0.83).
The interest cover ratio computed as EBITDA divided by net financial interest charges (interest charges less interest income), should
be higher than 3. The interest cover ratio at December 31, 2022 was 53.3 (2021: 171.3).
DEME ANNUAL REPORT 2022 245
CHAPTER 06
NOTE 19 – FINANCIAL RISK MANAGEMENT AND FINANCIAL DERIVATIVES
The Group’s financial instruments are cash and cash equivalents, trade and other receivables, interest-bearing loans and bank
overdrafts, trade and other payables and derivatives. Derivatives are designated exclusively as hedging instruments and not for
trading or other speculative purposes.
The Group is exposed to the following risks linked to financial instruments:
- Market risk consisting of:
• Interest rate risk;
• Currency risk;
• Price risk/commodity risk;
- Credit and Counterparty risk;
- Liquidity risk.
MARKET RISK
To finance its investments and activities, DEME frequently makes use of external finance, both in the short and the long-term. The
extent of leverage may expose the Group to various risks, including increasing its vulnerability to downturns or adverse changes in
general economic, industry or competitive conditions and government regulations and requiring a substantial portion of its cash
flows from operations to be dedicated to the payment of principal and interest on the Group’s indebtedness, therefore reducing its
ability to use its cash flows to fund its operations, capital expenditures and future business opportunities.
Market risk is the risk that changes in market prices (foreign exchange rates, interest rates, fuel prices,…) will affect the Group’s
income statement or the value of its assets and liabilities. The objective of market risk management is to manage and control market
risk exposures and to keep the market risk position within acceptable boundaries while achieving the best possible return.
INTEREST RATE RISK
Balance at December 31
DEME contracts considerable financing for the acquisition of its fleet and related capital expenditure. Interest rate risk can be
defined as the extent to which the results or value of a financial transaction are affected by a change in market interest rates. The
interest rate risk management is centrally performed within the Group.
To achieve the best possible balance between financing costs and the volatility of the financial results for its long-term borrowings,
DEME covers the vast majority of the risks of changes in the underlying floating interest rates through derivative financial
instruments, mainly by using interest rate swaps. As for the uncovered part of the interest rate risks (which mainly relate to short-
term borrowing if applicable) adverse changes in variable interest rates may lead to increases in the interest charges borne by DEME.
These hedging instruments generally equal the same notional amounts and generally have the same maturity dates as the hedged
debts. As such the swaps are determined as an effective hedge of outstanding or anticipated borrowings and meet the hedge
accounting requirements of IFRS 9. The fair values of the effective portion of the hedging instrument are therefore recognised
directly in the other comprehensive income under hedge accounting treatment. The ineffective part of any gain or loss on the
financial instrument will be taken in result.
At closing date, the instruments qualified as cash flow hedges have the following characteristics:
2022
(in thousands of EUR)
Non-current asset Non-current liability Current asset Current liability
Total net balance
fair value
Interest rate swaps 39,127 - 17,638 - 56,765
<1 year
Between
1 and 2 years
Between
2 and 5 years
> 5 years Notional amount
193,169 150,913 361,278 137,500 842,860
2021
(in thousands of EUR)
Non-current asset Non-current liability Current asset Current liability
Total net balance
fair value
Interest rate swaps - -2,608 - -1,892 -4,500
<1 year
Between
1 and 2 years
Between
2 and 5 years
> 5 years Notional amount
181,045 141,294 255,003 37,188 614,530
Some joint ventures and associates finance significant assets such as infrastructure works, offshore windfarms or vessels and
therefore also hold interest rate swaps (IRS). Per December 31, 2022, the other comprehensive income (OCI) of the current period
includes an amount of +28.3 million EUR compared to -22.2 million EUR at the end of 2021. This reflects DEME’s share in the positive
fair value of the IRSs of Rentel NV, C-Power NV, Seamade NV, Normalux SA, BAAK Blankenburg-Verbinding BV and SEMOP Port-La
Nouvelle, net of deferred tax assets.
246 CONSOLIDATED FINANCIAL STATEMENTS
At DEME the hedging instruments swap the variable interest rate into a fixed one as described in the tables below. Lease liabilities are
not included in the tables below. Reference is also made to note (18) Interest-bearing debt and net financial debt.
2022
Effective average interest rate before considering derivatives products
(in thousands of EUR)
Fixed Rate Floating Rate Total
Type of debts Amounts Quota Rate Amounts Quota Rate Amounts Quota Rate
Credit institutions, subordinated
loans & other loans
98,572 100.00% 1.75% 842,860 100.00% 3.01% 941,432 100.00% 2.88%
Short-term credit facilities - 0.00% - - 0.00% - - 0.00% 0.00%
Total 98,572 100.00% 1.75% 842,860 100.00% 3.01% 941,432 100.00% 2.88%
Effective average interest rate after considering derivatives products
Fixed Rate Floating Rate Total
Type of debts Amounts Quota Rate Amounts Quota Rate Amounts Quota Rate
Credit institutions, subordinated
loans & other loans
941,432 100.00% 1.58% - 0.00% - 941,432 100.00% 1.58%
Short-term credit facilities - 0.00% - - 0.00% - - 0.00% 0.00%
Total 941,432 100.00% 1.58% - 0.00% - 941,432 100.00% 1.58%
Similar to 2021, almost the entire Group’s outstanding debt portfolio (short and long-term) has a fixed interest rate character, which
limits the exposure of the Group to interest rate fluctuations.
2021
Effective average interest rate before considering derivatives products
(in thousands of EUR)
Fixed Rate Floating Rate Total
Type of debts Amounts Quota Rate Amounts Quota Rate Amounts Quota Rate
Credit institutions, subordinated
loans & other loans
101,230 48.98% 0.88% 622,237 100.00% 0.52% 723,467 87.28% 0.57%
Short-term credit facilities 105,450 51.02% -0.64% (*) - - - 105,450 12.72% -0.64%
Total 206,680 100.00% 0.43% 622,237 100.00% 0.52% 828,917 100.00% 0.42%
Effective average interest rate after considering derivatives products
Fixed Rate Floating Rate Total
Type of debts Amounts Quota Rate Amounts Quota Rate Amounts Quota Rate
Credit institutions, subordinated
loans & other loans
715,761 87.16% 1.07% 7,706 100.00% 0.75% 723,467 87.28% 1.07%
Short-term credit facilities 105,450 12.84% -0.64% (*) - - - 105,450 12.72% -0.64%
Total 821,211 100.00% 0.93% 7,706 100.00% 0.75% 828,917 100.00% 0.85%
(*) On December 3rd, 2021, DEME Coordination Center NV entered into a short-term loan agreement, under the TLTRO-program (Targeted Longer-Term Refinancing
Operation) of the European Central Bank, which offers DEME Coordination Center an interest rate of EURIBOR unfloored + a margin of
minus
20 basis points.
DEME ANNUAL REPORT 2022 247
CHAPTER 06
SENSITIVITY TO THE INTEREST RATE RISK
Balance at December 31
The Group is subject to the risk of fluctuating interest rates for cash flows relating to financial instruments at floating rate that are
not hedged.
As the entire Group’s outstanding debt portfolio (short and long-term) after hedging, has a fixed interest rate character at year-end
2022, the exposure of the Group to interest rate fluctuations is eliminated. As such an increase of EURIBOR with 50 base points at
closing date (assumed that underlying figures remain stable over the year), will not have an impact on the current interest charges in
the income statement. In 2021 as a result of the high ratio of hedged financial instruments used, such increase of the EURIBOR could
have had only a minor impact of 39 thousand EUR.
2022
(in thousands of EUR)
Result
(- is debit/+ is credit)
Impact of
calculation +50 bp
Impact of
calculation -50 bp
Non-current interest-bearing debts (+ current portion due in the year) after hedge accounting - -
Net short-term financial debts (*) after hedge accounting - -
(*) excluding cash at bank and in hand
2021
(in thousands of EUR)
Result
(- is debit/+ is credit)
Impact of
calculation +50 bp
Impact of
calculation -50 bp
Non-current interest-bearing debts (+ current portion due in the year) after hedge accounting -39 +39
Net short-term financial debts (*) after hedge accounting - -
(*) excluding cash at bank and in hand
The Group does not maintain a hedging ratio as an instruction as such, although the hedge ratio is kept as high as possible. However
as shown above, for interest rate risk the hedging ratio (almost) equals 100%. The funding activity with respect to the fully owned
subsidiaries is fully centralised at DEME Coordination Center NV. DEME Coordination Center NV has taken out long- term loans from
various banks at floating rates.
The cash flow schemes that are hedged by means of IRSs are one on one identical to the cashflow schemes representing each
individual loan contract. When in-effectiveness occurs, the hedge is being amended accordingly. When loans are taken out on a joint
venture level, DEME depends on the partner for hedging decisions.
CURRENCY RISK
DEME is exposed to risks associated with fluctuations in currency exchange rates. The Group’s currency risk can be split into two
categories: translational and transactional currency risk.
TRANSLATIONAL CURRENCY RISK
DEME’s reporting currency is euro, however, given the Group’s global operations, a significant portion of the Group’s assets, liabilities,
expenses and revenue are denominated in currencies other than euro. Such assets, liabilities, expenses and revenue are translated to
euro at the applicable exchange rates to prepare the Group’s consolidated financial statements. Therefore, fluctuations in exchange
rates between euro and such other currencies affect the value of those items expressed in euro terms in the Group’s consolidated
financial statements. A change of one or more of the foreign currencies in which DEME’s local subsidiaries operate against euro
impacts its revenue and profitability expressed in euro terms accordingly. Changes in the euro values of the Group’s consolidated
assets and liabilities resulting from exchange rate movements may cause the Group to record foreign currency gains and losses
through profit or loss, or through its cumulative translation adjustment reserve recognised in other comprehensive income and
accumulated in equity.
The main foreign currency companies contributing to the Group’s turnover have GBP, USD, INR, NGN, SGD, DKK, UYU, BRL, PLN, PGK,
TWD, PEN and MXN as their currency. In 2022 these entities, especially in GBP & USD, contributed 21% to the Group’s turnover. For
2021 this was even 34%. The Group does not hedge against translational currency risk.
248 CONSOLIDATED FINANCIAL STATEMENTS
Some of the main exchange rates that have been used to convert the financial statements:
Currency rates from foreign currency to EUR
December 31, 2022 December 31, 2021
Closing
rate
Average
rate
Closing
rate
Average
rate
AED 0.2545 0.2576 0.2395 0.2303
AOA 0.0019 0.0021 0.0016 0.0014
AUD 0.6366 0.6570 0.6386 0.6333
BRL 0.1768 0.1835 0.1579 0.1570
CAD 0.6896 0.7268 0.6963 0.6743
CNY 0.1355 0.1408 0.1385 0.1313
EGP 0.0378 0.0498 0.0562 0.0540
HKD 0.1197 0.1208 0.1128 0.1088
INR 0.0113 0.0121 0.0118 0.0115
JPY 0.0071 0.0073 0.0076 0.0077
MXN 0.0480 0.0472 0.0429 0.0415
MYR 0.2124 0.2157 0.2113 0.2048
NGN 0.0021 0.0022 0.0021 0.0021
OMR 2.4289 2.4587 2.2866 2.1983
PGK 0.2584 0.2615 0.2432 0.2348
PHP 0.0168 0.0174 0.0173 0.0172
PLN 0.2135 0.2139 0.2182 0.2193
QAR 0.2549 0.2592 0.2416 0.2316
RUB 0.0129 0.0143 0.0118 0.0115
SGD 0.6974 0.6876 0.6521 0.6305
TWD 0.0306 0.0319 0.0317 0.0304
UAH 0.0253 0.0294 0.0323 0.0310
USD 0.9344 0.9462 0.8797 0.8459
UYU 0.0234 0.0230 0.0197 0.0195
ZAR 0.0550 0.0577 0.0550 0.0569
TRANSACTIONAL CURRENCY RISK
Balance at December 31
The global nature of DEME’s activities means that payments made further to contracts may be in a variety of currencies, thus
exposing DEME to exchange rate risks. Similarly, purchases and expenditure in foreign currencies also give rise to exchange rate risks.
Most of the Group’s purchases are typically transacted in euro or U.S. dollar. This means that the Group will face a risk of exchange rate
fluctuation when the sales are made in a different currency than the purchase. DEME may be unable to pass along increased costs to
its customers.
- Financing & Investing: DEME’s transactional currency risk regarding financing and investing activities could arise from
financial loans denominated in currencies other than the euro.
 • Thefinancingtransactionalcurrencyriskcanbeconsideredtobenilfortheoutstandinglong-termdebts(without
considering lease debts which are mainly in euro).
 • Long-termloansgiventojointventures&associates(recordedasothernon-currentfinancialassetsnote(8))aremainlyin
euro, minimising the exposure on transactional currency risk.
 • Capitalfundingineuroinjointventures&associatesdenominatedinothercurrencies(cfr.CDWETaiwanLtd)issubjecttothe
translational currency risk as described above.
(in thousands of EUR)
2022 2021
EUR 941,432 723,467
USD - -
Other currencies - -
Total long-term debts (*) 941,432 723,467
(*) Lease liabilities are not included. Total long-term debts also includes the current portion of the long-term debts (note (18)).
DEME ANNUAL REPORT 2022 249
CHAPTER 06
- Operational activities: Given the international character of its business operations and the execution of contracts in foreign
currency, DEME is exposed to currency risks. DEME’s transactional foreign currency risk arises from commercial flows
denominated in currencies other than the euro.
 • In2022,79%oftheGroup’sturnoverwascontractedinEURfollowedbyUSD,SGD,INR,GBP,DKK,BRLandUYU.In2021this
was 62% in EUR, followed by USD, GBP, DKK, RUB, PLN, SGD, UYU and INR.
 • TheGroup’sexpensesaremainlyineuro.Toalesserextentcostsarechargedinacurrencynotequaltotheeuroorinthe
currency of a country in which our activities are performed.
 • Theresidualforeigncurrencyriskisassessedonacase-by-casebasisand,ifnecessary,DEMEusesforwardexchange
contracts to hedge its residual foreign currency risk on projected net commercial flows denominated in currencies other than
the euro. The fair value variation of exchange rate instruments is considered as construction costs. This variation is presented
as an operating result.
- Exchange rate risk for large projects and large investments are hedged as much as possible, also for smaller volumes hedging is
taken out in most cases. When in-effectiveness occurs due to timing mismatches, the FX-trades are being rolled to the future.
In-effectiveness in terms of volumes is in most cases an underhedge. When overhedge occurs due to underlying flow being
cancelled or being paid in other currency than the hedged currency, the hedge will be amended accordingly.
The following tables disclose the fair value and the notional amount of exchange rate instruments (forex hedges) issued (forward
sales/purchase agreements) (+ is asset / - is liability):
2022
(in thousands of EUR)
Non-current
asset
Non-current
liability
Current asset Current liability
Total net
balance
fair value
Forex hedges 68 -53,661 2,481 -30,404 -81,516
2021
(in thousands of EUR)
Non-current
asset
Non-current
liability
Current asset Current liability
Total net
balance
fair value
Forex hedges 114 -24,260 1,056 -10,162 -33,252
2022
Market value
(in thousands of EUR)
Notional amount
(in thousands of foreign currency)
Currency
Forward
purchase
Forward sale Total amount
Forward
purchase
Forward sale Total amount
USD 463 -81,219 -80,756 -118,110 1,176,4 83 1,058,373
GBP -91 177 86 -6,645 5,400 -1,245
AED - 3 3 - 7,841 7,841
AUD 8 - 8 -5,407 - -5,407
INR - 113 113 - 505,000 505,000
SEK - - - -2 - -2
DKK 1 - 1 -8,180 1,275 -6,905
SGD -580 - -580 -105,339 - -105,339
JPY - - - -10,008 - -10,008
EGP - -369 -369 - 150,000 150,000
NOK -20 - -20 -24,645 - -24,645
Balance at December 31 -221 -81,295 -81,516
250 CONSOLIDATED FINANCIAL STATEMENTS
2021
Market value
(in thousands of EUR)
Notional amount
(in thousands of foreign currency)
Currency
Forward
purchase
Forward sale Total amount
Forward
purchase
Forward sale Total amount
USD 561 -32,816 -32,255 -48,067 1,314,750 1,266,683
AUD -5 - -5 -7,200 - -7,200
PLN 70 -6 64 -31,178 24,600 -6,578
SGD 363 - 363 -77,229 - -77,229
JPY -12 - -12 -95,009 - -95,009
EGP - -1,121 -1,121 - 1,224,090 1,224,090
DKK - - - -19,039 3,639 -15,400
COP - 19 19 - 10,800,000 10,800,000
GBP - -393 -393 - 36,993 36,993
TWD 196 -108 88 - - -
Balance at December 31 1,173 -34,425 -33,252
SENSITIVITY
Balance at December 31
Sensitivity to currency fluctuations is mainly related to the evolution of a portfolio of foreign currencies versus the euro.
The fair value of foreign currency monetary items is impacted by currency fluctuations. In order to eliminate most of these effects in
foreign currencies, the Group uses monetary items and/or derivative financial instruments as described above, which are meant to
offset the impact of such results to a major extent.
The following analysis is performed supposing that the amount of financial assets/liabilities and derivatives as at December 31, 2022
and 2021 would remain stable over the year. A variation of 5% (appreciation of the EUR) at closing date would give an increase or a
decrease in the balance sheet items as follows (mainly USD, EGP, GBP, SGD):
2022
(in thousands of EUR)
Balance sheet impact
(+ is debit/- is credit)
Impact of the sensitivity
calculation- depreciation
of 5% of the EUR
Impact of the sensitivity
calculation- appreciation
of 5% of the EUR
Non-current interest-bearing debts (+ current portion due in the year) after hedge accounting - -
Net short-term financial debts (*) after hedge accounting +4,309 -3,899
Translational currency risk on outstanding trade receivables & payables +11,871 -11,871
(*) including cash at bank and in hand
2021
(in thousands of EUR)
Balance sheet impact
(+ is debit/- is credit)
Impact of the sensitivity
calculation- depreciati-
on of 5% of the EUR
Impact of the sensitivity
calculation- appreciati-
on of 5% of the EUR
Non-current interest-bearing debts (+ current portion due in the year) after hedge accounting - -
Net short-term financial debts (*) after hedge accounting +2,593 -2,346
Translational currency risk on outstanding trade receivables & payables +18,894 -18,894
(*) including cash at bank and in hand
DEME ANNUAL REPORT 2022 251
CHAPTER 06
PRICE RISK/COMMODITY RISK
Balance at December 31
DEME is also exposed to commodity risks and hedges against oil price fluctuations by entering into forward contracts. The fair value
variation of these instruments is considered as construction costs. This variation is presented as an operating result. The fair value
and notional amount of these instruments can be found below (+ is asset / - is liability):
2022
(in thousands of EUR)
Non-current
asset
Non-current
liability
Current asset Current liability
Total net
balance
fair value
Notional
amount
Fuel hedges 141 - 1,903 -1,175 869 18,111
2021
(in thousands of EUR)
Non-current
asset
Non-current
liability
Current asset Current liability
Total net
balance
fair value
Notional
amount
Fuel hedges 500 - 2,151 -314 2,337 16,292
SUMMARISING ALL FINANCIAL INSTRUMENTS USED TO COVER MARKET RISK
Balance at December 31 (+ is asset / - is liability)
2022
(in thousands of EUR)
Non-current
asset
Non-current
liability
Current asset Current liability
Total net
balance
fair value
Interest rate swaps 39,127 - 17,638 - 56,765
Forex hedges 68 -53,661 2,481 -30,404 -81,516
Fuel hedges 141 - 1,903 -1,175 869
Balance at December 31 39,336 -53,661 22,022 -31,579 -23,881
2021
(in thousands of EUR)
Non-current
asset
Non-current
liability
Current asset Current liability
Total net
balance
fair value
Interest rate swaps - -2,608 - -1,892 -4,500
Forex hedges 114 -24,260 1,056 -10,162 -33,252
Fuel hedges 500 - 2,151 -314 2,337
Balance at December 31 614 -26,868 3,207 -12,368 -35,415
CREDIT AND COUNTERPARTY RISK
A credit risk may arise in the event a customer or counterparty fails to perform its contractual obligations in respect of DEME in
accordance with the provisions of the contract concerned.
Non-payment by a customer may be the consequence of a lack of liquidity, bankruptcy or fraud on the part of the customer or be
attributable to the general political or economic situation in the customer’s country. Although DEME aims to minimize the credit risks
of its customers by examining their solvency prior to finalising the contract and putting the required payment guarantees in place
(including credit insurance policies with public service credit insurers such as Credendo and private credit insurers, bank guarantees
and through letters of credit) it is not possible to entirely exclude the credit risks of customers.
A large part of the consolidated turnover is realised through public or semi-public sector customers. The level of counterparty risk
is limited by the large number of customers. To contain the risk, DEME constantly monitors its outstanding trade receivables and
adjusts its position if necessary.
Overdue receivables in the table below, mainly covered by Credendo, relate to pending settlements, additional works & subsequent
contract modifications accepted by the customers but to be recovered by an overall agreement with the client and that are all part of
a broader negotiation process. Further on, revenues and earnings are only recognised in the accounts when it is probable that they will
be realised.
DEME values all its financial assets (amongst others contract assets) in conformity with the expected credit loss model of IFRS 9. As
such, the discounted effect of estimated losses, in case a debtor would default on its obligations, would be reflected in its book value.
The credit history of the Group over recent years indicates credit losses are insignificant compared to the level of activity. Therefore
management is of the opinion that credit risk is adequately controlled by the current applicable procedures. The payment behaviour
of the Group's customers remains unchanged in 2022 and was not affected by macro-economic factors that could impact the ability
of the customers to settle the receivables. At the reporting date there was no concentration of credit risk with any customers.
252 CONSOLIDATED FINANCIAL STATEMENTS
CREDIT RISK ON ACCOUNTS RECEIVABLE / COUNTERPARTY RISK:
Balance at December 31
The aging of trade receivables (net amount and excluding other operating receivables) (note (13)) is as follows:
2022
(in thousands of EUR)
Tot al Not expired
Expired
<1 month
Expired
<2 months
Expired
<3 months
Expired
<6 months
Expired
<1 year
Expired
> 1 year
Trade receivables 424,476 272,694 30,038 46,527 26,076 8,509 14,610 26,024
Loss allowance -13,018 - - - - - - -13,018
Total net amounts 411,458 272,694 30,038 46,527 26,076 8,509 14,610 13,006
2021
(in thousands of EUR)
Tot al Not expired
Expired
<1 month
Expired
<2 months
Expired
<3 months
Expired
<6 months
Expired
<1 year
Expired
> 1 year
Trade receivables 314,175 217,102 10,470 14,421 5,372 9,573 10,244 46,993
Loss allowance -18,423 - - - - - - -18,423
Total net amounts 295,752 217,102 10,470 14,421 5,372 9,573 10,244 28,570
All other financial assets of the consolidated balance sheet are considered as not expired.
CREDIT RISK ON CASH AND CASH EQUIVALENTS
DEME is also exposed to counterparty risks when investing its assets available to it and when subscribing to financial derivatives.
DEME has a policy to minimise counterparty risk by avoiding concentrations of these and in such matters working only with banks with
which it has a long-standing relationship, but it is not possible to entirely exclude credit risks of financial counter parties.
The Group has cash and cash equivalents of 522.3 million EUR at December 31, 2022 (2021: 528.6 million EUR). The cash and cash
equivalents are held with reputable bank and financial institution counterparties that have good investment grade credit ratings.
LIQUIDITY RISK & CAPITAL MANAGEMENT
Although DEME operates strict financial policies and ensures that there is a diversity of sources of finance and repayment periods, it
cannot be ruled out that the non-performance of significant payment obligations by customers or the inability to arrange adequate
external financing subject to acceptable conditions could have a negative effect on the cash flow and liquidity of DEME and thus have
a negative impact on the activities, financial situation and results of DEME.
All these factors might result in DEME having difficulties to comply with its credit facility covenants. If DEME’s future cash flows from
operations and other capital resources would be insufficient to comply with its payment obligations or to fund its liquidity needs,
DEME may be forced to adapt its business activities and capital expenditures, sell assets, obtain additional debt or equity capital,
restructure or refinance all or a part of its debt on or before maturity or forgo opportunities such as acquisitions.
The liquidity risk is limited by spreading borrowing among several banks, agreeing a variety of repayment periods and also by
mitigating the credit risk as described above.
DEME aims to maintain a healthy balance between the consolidated Group equity and the consolidated net debt. DEME has significant
credit facilities and guarantee facilities with various international banks. In addition, it has a commercial paper programme to cover its
short-term borrowing requirements if needed. The risk on its current long-term variable interest bank loans has been entirely covered
by making use of interest rate swaps (see interest rate risk factor).
DEME mainly invests in equipment with a long lifespan, which is written off over several years.
For that reason, DEME seeks to structure a substantial part of its debts as long-term debt. Since 2015, DEME has worked out a new
bank financing structure, based on bilateral unsecured long-term financing with several banks. DEME must in the context of some of
its long-term credit facilities respect certain covenants. Any breach of these covenants could give rise to the acceleration of the loans.
At December 31, 2022 as well as at December 31, 2021, the Group complies with the solvency ratio (>25%), the debt/EBITDA ratio (<3),
and the interest cover ratio (>3), that were agreed upon within the contractual terms of the loans received (note (18)).
At year-end 2022, DEME has a net financial debt of -520,513 thousand EUR (note (18)) and a Group equity of 1,776,265 thousand
EUR. The Group equity of the DEME group includes share capital, share premium, consolidated reserves and non-controlling interests.
The entire equity is used to finance the operations described in the corporate purposes of the subsidiaries.
At December 31, 2022, the Group has 125 million EUR unused bank credit compared to 118 million EUR at the end of 2021.
The explanatory note (18) discloses the changes in liabilities arising from financing activities and the extent to which cash and cash
equivalents are not not immediately available as a result of transfer restrictions, joint control (in joint operations) or other legal
restrictions. Note (24) Working capital also elaborates on how DEME manages cash and liquidity.
DEME ANNUAL REPORT 2022 253
CHAPTER 06
FAIR VALUES & HIERARCHY
Balance at December 31
The fair values are classified in three levels according to the valuation hierarchy of IFRS 13, depending on the type of input used for the
valuation of financial instruments.
- Level 1 instruments are unadjusted quoted prices in active markets for identical assets and liabilities. No valuation model is
used. In level 1, we find all financial assets (valued at fair value) with a public listing in an active market;
- Level 2 instruments are prices quoted for similar assets and liabilities in active markets, or data based on or supported by
observable market data. A valuation based on observable parameters such as discounted cashflow model, the comparison with
another similar instrument, the determination of prices by third parties;
- Level 3 instruments are non-observable data for determining the fair value of an asset or liability, e.g. some financial assets for
which no public listing is available, loans and advances to customers, valued at amortised cost etc.
Set out below is an overview of the carrying amounts of the Group’s financial instruments that are shown in the financial statements.
All fair values mentioned in the table below relate to Level 2. During the reporting periods, there were no transfers between Level 1
and Level 2 fair value measurements, and no transfers into and out of Level 3 fair value measurements.
2022
(in thousands of EUR)
Derivatives
designated
as hedging
instrument
Assets &
liabilities at
amortised
cost
Book value
Fair value
measurement
by level
Fair value
Non-current assets 39,336 44,432 83,768 83,092
Other non-current financial assets - 32,540 32,540 Level 2 33,002
Financial derivatives 39,336 - 39,336 Level 2 39,336
Other non-current assets - 11,892 11,892 Level 2 10,754
Current assets 22,022 1,116,023 1,138,045 1,138,193
Trade receivables and other operating receivables - 469,529 469,529 Level 2 469,677
Financial derivatives 22,022 - 22,022 Level 2 22,022
Cash and cash equivalents - 522,261 522,261 Level 2 522,261
Other current assets - 124,233 124,233 Level 2 124,233
Non-current liabilities 53,661 791,142 844,803 798,295
Interest-bearing debt - 789,904 789,904 Level 2 743,396
Financial derivatives 53,661 - 53,661 Level 2 53,661
Other liabilities - 1,238 1,238 Level 2 1,238
Current liabilities 31,579 1,358,460 1,390,039 1,400,149
Interest-bearing debt - 252,870 252,870 Level 2 262,980
Financial derivatives 31,579 - 31,579 Level 2 31,579
Advances received - 72,539 72,539 Level 2 72,539
Trade payables and other operating debts - 777,705 777,705 Level 2 777,705
Remuneration and social debt - 98,793 98,793 Level 2 98,793
Current income taxes - 66,571 66,571 Level 2 66,571
Other current liabilities - 89,982 89,982 Level 2 89,982
254 CONSOLIDATED FINANCIAL STATEMENTS
2021
(in thousands of EUR)
Derivatives
designated
as hedging
instrument
Assets &
liabilities at
amortised
cost
Book value
Fair value
measurement
by level
Fair value
Non-current assets 613 37,690 38,303 38,303
Other non-current financial assets - 33,451 33,451 Level 2 33,451
Financial derivatives 613 - 613 Level 2 613
Other non-current assets - 4,239 4,239 Level 2 4,239
Current assets 3,207 980,846 984,053 984,053
Trade receivables and other operating receivables - 384,022 384,022 Level 2 384,022
Financial derivatives 3,207 - 3,207 Level 2 3,207
Cash and cash equivalents - 528,632 528,632 Level 2 528,632
Other current assets - 68,192 68,192 Level 2 68,192
Non-current liabilities 26,868 580,797 607,665 620,631
Interest-bearing debt - 577,970 577,970 Level 2 590,936
Financial derivatives 26,868 - 26,868 Level 2 26,868
Other liabilities - 2,827 2,827 Level 2 2,827
Current liabilities 12,368 1,466,439 1,478,807 1,487,090
Interest-bearing debt - 343,340 343,340 Level 2 351,623
Financial derivatives 12,368 - 12,368 Level 2 12,368
Advances received - 101,067 101,067 Level 2 101,067
Trade payables and other operating debts - 772,905 772,905 Level 2 772,905
Remuneration and social debt - 94,026 94,026 Level 2 94,026
Current income taxes - 76,370 76,370 Level 2 76,370
Other current liabilities - 78,731 78,731 Level 2 78,731
The following methods and assumptions were used to estimate the fair values:
- Cash and cash equivalents, trade and other operating receivables, other current assets, trade payables and other operating
debts, advances received, remuneration and social debts, current income taxes and other current liabilities approximate their
carrying amounts because they have a short-term maturity;
- The fair value of interest-bearing debts is estimated by discounting future cash flows using the effective interest rates
currently available for debt on similar terms, credit risk and remaining maturities; where the interest rate is variable (floating),
the fair value is considered to be similar to the carrying amount. A similar approach is used for non-current financial assets;
- The Group enters into financial derivative instruments with various counterparties, principally financial institutions with
investment grade credit ratings. Derivatives valued using valuation techniques with market observable inputs are mainly
interest rate swaps, fuel hedges and foreign exchange forward contracts. The models incorporate various inputs including
foreign exchange spot and forward rates and interest rate curves.
DEME ANNUAL REPORT 2022 255
CHAPTER 06
NOTE 20 – LEASE LIABILITIES
Balance at December 31
(in thousands of EUR)
2022 2021
More than 5
years
Between 1 and
5 years
Less than 1
year
Tot al To tal
Gross lease payments 51,234 42,710 25,162 119,106 110,550
Interest payments -15,919 -1,642 -202 -17,763 -18,157
Lease liabilities present value 35,315 41,068 24,960 101,343 92,393
Land and buildings 71,778 68,617
Floating and other construction equipment 11,627 4,974
Furniture and vehicles 17,938 18,802
Total lease payments per class of property,
plant and equipment
101,343 92,393
There are no material leases concluded at reporting date that did not commence as of December 31, 2022. The amount of renewal
options and termination options not reflected in the lease liabilities is immaterial.
The statement of income includes the following amounts relating to leases:
(in thousands of EUR)
2022 2021
Land and buildings 13,632 10,543
Floating and other construction equipment 6,403 3,364
Furniture and vehicles 8,547 7,831
Total depreciation charge of right-of-use assets 28,582 21,738
Interest expense (included in finance cost) 1,634 1,257
Expense relating to short-term leases 4,271 2,694
Expense relating to leases of low-value assets that are not short-term leases 131 76
Total expense related to leases 34,618 25,765
256 CONSOLIDATED FINANCIAL STATEMENTS
NOTE 21 – RETIREMENT BENEFIT OBLIGATIONS
The DEME Group contributes to pension and early retirement plans in several of the countries in which it operates. These benefits are
recognised in accordance with IAS 19
employee benefits
.
About 80% of the retirement benefit obligations is related to Belgian employees. The DEME Group currently foresees several
occupational pension plans in favour of these employees:
- The pension schemes of the type “defined benefit” are funded either through a group insurance branch 21 either through a
company pension fund. Assets of the pension fund “KBC Pension Fund Service deelvermogen Decloedt” have been estimated
starting from the market value as at November 30, 2022, reported by the investment manager, taking into account the planned
cash flows for the rest of the year and assuming a 0% financial return for the month of December 2022. Assets of the insured
plans are calculated per person as the maximum of the mathematical reserves and the present value at the discount rate of the
accrued benefits according to IAS 19 paragraph 115, with the application of a correction on the discount rate on the part of the
present value that exceeds the mathematical reserves, to take into account the default risk of the insurance company. Total
assets are then increased with the value of the financing funds;
- The DEME Group also sponsors pension schemes of the type “defined contributions” for Belgian employees, which are entirely
employer funded through a group insurance branch 21. In accordance with Belgian social legislation, the employer has to
guarantee an interest rate on the employer contributions paid in defined contributions plans of 3.25% for contributions paid
until October 1, 2016. For contributions paid as from 2016 the Belgian legislation decided to use a yearly variable interest rate
based on a Belgian state bond of 10 year, with an absolute minimum return of 1.75% and an absolute maximum return of 3.75%
(0% as from the termination date of the labour contract). All contributions paid before a change in return rate will be held at
the original interest rate in the future (legal horizontal guarantee). This horizontal guarantee is not fully covered by the rates
provided by the insurance companies towards the employers regarding the effectuation of the group insurance contracts. The
employer liabilities as at December 31, 2022, resulting from this legal guarantee, were valued with respect to the contributions
attributed in the past and assuming that the interest rate with respect to the legal minimum guarantee increased from 1.75%
to 2.50% for the future. Assets are calculated per person as the maximum of the mathematical reserves and the present value
at the discount rate of the accrued benefits according to IAS 19 paragraph 115, with the application of a correction on the
discount rate on the part of the present value that exceeds the mathematical reserves, to take into account the default risk of
the insurance company. Total assets are then increased with the value of the financing funds.
DEME’s subsidiaries in the Netherlands operate a number of defined benefit pension schemes. Without exception, these plans are
insured with an authorised insurance company in the Netherlands and are closed for new entries and accruals. The net liabilities of the
schemes arise from the obligation for the entities to index accrued pension benefits and benefits in payment and/or the obligation to
pay guarantee costs to the insurance company.
Employee benefit obligations
(in thousands of EUR)
2022 2021
Retirement obligations in Belgium and The Netherlands 56,902 62,213
Other retirement obligations 3,621 3,054
Balance at December 31 60,523 65,267
The decrease in retirement obligations in Belgium and The Netherlands is related to the evolution in the macro-economic environment
and more specifically to the evolution of the interest rates and the inflation. Per December 31, 2022, the discount rate increased to
3.46% compared to 0.90% at the end of 2021. This resulted in a very negative return on assets on the one hand and in a significant gain
in the remeasurement of retirement benefit plan obligations due to change in financial assumptions on the other hand. The net positive
effect was only slightly reduced by the increase of the inflation rate from 1.90% to 2.16%.
Retirement benefit obligations in Belgium and The Netherlands
(in thousands of EUR)
2022 2021
Present value of wholly or partially funded obligations 199,109 246,857
Fair value of plan assets -142,560 -184,686
Impact of asset ceiling 353 42
Net funded benefit obligation as recorded in the balance sheet at December 31 56,902 62,213
MOVEMENT OF RETIREMENT BENEFIT PLAN OBLIGATIONS
Balance at January 1 62,213 60,026
Charges recognised in income (1) 14,453 14,243
Charges recognised in other comprehensive income (2) -5,248 1,073
Contributions from employer -14,516 -13,136
Other movements - 7
Balance at December 31 56,902 62,213
(1) Charges recognised in income
Current service cost 13,851 13,916
Past service cost & other 102 86
Interest cost 2,225 1,223
Interest income on plan assets (-) -1,725 -982
Total charges recognised in income 14,453 14,243
DEME ANNUAL REPORT 2022 257
CHAPTER 06
NOTE 21 - continued
2022 2021
(2) Charges recognised in other comprehensive income
Actuarial (gains)/losses -57,935 -4,945
Return on plan assets (-) (excluding interest income) 49,249 2,976
Other movements 3,438 3,042
Total charges recognised in other comprehensive income -5,248 1,073
MOVEMENT IN RETIREMENT BENEFIT PLAN OBLIGATIONS AND ASSETS
Retirement benefit plan obligations balance at January 1 246,857 250,100
Current service cost 13,851 13,916
Interest cost 2,225 1,223
Contributions from employees 123 137
Benefits paid to beneficiaries -7,344 -14,740
Remeasurement of liabilities resulting in actuarial (gains)/losses -54,809 -1,945
due to changes in demographic assumptions - 7,270
due to changes in financial assumptions -70,842 -10,740
due to experience adjustments 16,033 1,525
Past service cost - -
Other movements -1,794 -1,834
Retirement benefit plan obligations balance at December 31 199,109 246,857
Retirement benefit plan assets balance at January 1 184,686 190,074
Return on plan assets (+) (excluding interest income) -49,249 -2,976
Interest income on plan assets (+) 1,725 982
Contributions from employer/employees (*) 14,516 13,273
Benefits paid to beneficiaries -7,344 -14,740
Other movements -1,773 -1,927
Retirement benefit plan assets balance at December 31 142,560 184,686
MAIN ACTUARIAL ASSUMPTIONS AT THE END OF THE PERIOD
Discount rate at December 31 3.46% 0.90%
Expected rate of salary increases (inflation included) 3.70% 3.40%
Long term inflation 2.16% 1.90%
Mortality tables BE-plans MR/FR-5 yrs MR/FR-5 yrs
Mortality tables NL-plans AG2022 ES-P2A AG2021 ES-P2A
OTHER INFORMATION
Average duration in years of the benefit plan obligations 13.91 15.37
Average actual return on plan assets -25.36% -1.06%
Expected contribution in next financial year 14,287 12,029
258 CONSOLIDATED FINANCIAL STATEMENTS
NOTE 21 - continued
2022 2021
SENSITIVITY ANALYSIS (impact on amount of obligations)
Discount rate
25bp increase -4.25% -5.00%
25bp decrease 2.19% 2.78%
Salary growth rate
25bp increase 0.76% 0.76%
25bp decrease -2.87% -3.11%
Life expectation
increase by 1 year -0.39% - 0.15%
Inflation rate
25bp increase 0.39% N.A.
25bp decrease -2.53% N.A.
ASSETS ALLOCATION
Cash and cash equivalents 0.12% 0.07%
Equity instruments 0.91% 0.93%
Debt instruments 0.96% 0.82%
Insurance contracts 97.99% 98.18%
(*) In 2022 an amount of 10.9 million EUR relates to Belgian defined contribution plans (2021: 9.8 million EUR). Total contribution (defined benefit and contribution
plans) expected for the next financial year is 14.3 million EUR.
NOTE 22 – OTHER CURRENT LIABILITIES
Balance at December 31
(in thousands of EUR)
2022 2021
Other current taxes and value added tax (VAT) 35,716 38,160
Other amounts payable 45,540 34,770
Accruals and deferred income 8,726 5,801
Other current liabilities 89,982 78,731
Other amounts payable relate to other operating payables and to amounts due to joint ventures. The latter are also included in the
amount disclosed in note (26) Related parties.
NOTE 23 – PROVISIONS AND CONTINGENT ASSETS AND LIABILITIES
PROVISIONS
(in thousands of EUR)
Warranties Other
2022 2021
Balance at January 1 37,378 5,932 43,310 30,297
Arising during the year 5,153 895 6,048 13,213
Utilised during the year -1,659 - -1,659 -200
Unused amounts reversed - - - -
Balance at December 31 40,872 6,827 47,699 43,310
Current 4,714 - 4,714 3,738
Non-current 36,158 6,827 42,985 39,572
DEME ANNUAL REPORT 2022 259
CHAPTER 06
Reference is made to the summary of principal accounting policies for information about the provisions.
There is no formal plan for restructuring. The dismissal provisions in the normal course of business that exist at the end of the period
are immaterial and are booked as remuneration and social charges.
The other provisions are all related to the Environmental segment and the warranties (all assurance type warranties) are related to
the Offshore Energy segment.
CONTINGENT ASSETS AND LIABILITIES
Based on available information at the date on which the financial statements were approved by the Board of Directors, we are not
aware of any other contingent assets or liabilities than the one described below:
- Since2018,theGrouphasbeeninvolvedindiscussionswithRkswaterstaatintheNetherlandsrelatedtotheexecutionby
one of its subsidiaries of the Juliana Canal widening project. Based on the available information, DEME cannot make a reliable
assessment of the financial consequences of these discussions. Despite various settlement discussions with the client
Rkswaterstaathavingtakenplace,theissuehasnotbeensettledyet;
- One of the Group Companies is involved in legal proceedings initiated by the Dutch Waterboard (het Waterschap Vallei en
Veluwe) against a consortium of which said Group Company is a member, due to allegedly unauthorized activities on the project
Eemdk.TheallegedunauthorizedactivitieswerefullyandsolelyexecutedbytheGroupCompany’sformerpartnerinthe
consortium, as the Group Company withdrew from the project even before the start of the actual execution of any works. The
Group Company was however not able to formally withdraw from the consortium as well. Meanwhile, said former partner has
filed for bankruptcy. The outcome of this claim is still uncertain. However, based on the current circumstances and subject
to the insurance policy conditions, the outcome of the aforementioned pending legal proceedings is not expected to have a
material impact on the Company's future results and cash flows;
- In December 2022, the Chamber of Indictment at the Court of Appeal of Ghent decided to refer certain companies of the DEME
Group to court. This decision follows a judicial investigation carried out in respect of the circumstances in which a contract was
awarded by negotiated procedure to Mordraga, a former Russian joint venture company of the DEME group, for the execution
of dredging works in the port of Sabetta (Russia) in April 2014. The works were carried out in the summer months of 2014 and
2015. The investigation was launched following a complaint lodged by a competitor, to whom said contract was not granted
by negotiated procedure, and is based solely on selective information provided by this competitor. DEME emphasizes that
the Chamber of Indictment has only decided on the referral to court. This means that none of the parties involved have yet
had the opportunity to submit substantive arguments regarding the charges brought by the Public Prosecutor. In the current
circumstances, it is therefore premature to speculate on the outcome of these proceedings.
The Group takes care that all its entities respect the laws and regulations in force, including the compliance rules.
NOTE 24 – WORKING CAPITAL
Balance at December 31
Net working capital (NWC) is current assets less current liabilities.
Operating working capital (OWC) is net working capital (current assets less current liabilities),
excluding
interest-bearing debt and
cash and cash equivalents and financial derivatives related to interest rate swaps and
including
other non-current assets and non-
current liabilities (if any) as well as non-current financial derivatives (assets and liabilities), except for those related to interest rate
swaps.
In 2022 management changed the definition of operating working capital to
exclude
the impact of hedge accounting of interest rate
swaps that are related to net financial debt and not to working capital, and to
include
all the non-current financial derivatives of forex/
fuel hedges that are related to the works in progress. The operating working capital as reported last year amounted to -488.7 million
EUR. According to the new definition the operating working capital at December 31, 2021 amounts to -511.1 million EUR.
Focus of the DEME Group is to find the balance between the operating working capital on the one hand and the net cash being the
difference between cash and cash equivalents and short-term debt on the other hand. In the contracting business operating working
capital is difficult to monitor as each project is different, not only in size and capital needs but also and more specifically in the way
the Group is paid by its customers. Most of the turnover is paid with an advance payment at the beginning of the project followed by
milestones payments after execution of the work and approval by the client.
When the operating working capital is under pressure and when it has to be increased, the Group can either grow its assets or reduce
its liabilities. The Group can negotiate shorter milestones and payment terms with the customers or negotiate longer payment terms
with the suppliers, however without putting a strain on the relationships with them. The Group can limit the non-project-related
expenditure and review and limit the capital expenditure or sell excess equipment and convert them into working capital.
260 CONSOLIDATED FINANCIAL STATEMENTS
For the financing of its working capital needs, DEME sources its short-term funding through a commercial paper program and through
revolving credit facilities. The commercial paper program at the end of 2022, that was not used, amounts to 125 million EUR and
is accommodated by 3 agents (banks) that place DEME debt with external investors in tranches of different sizes and for tenors
ranging from a few weeks up to maximum 1 year. The revolving credit facilities are contracted by DEME Coordination Center NV with
5 different commercial banks, all being relationship banks for DEME. In total, 125 million EUR of unused credit facilities were available
at the end of 2022, for general corporate purposes. Besides short-term financing also long-term financing can be considered to fund
raising working capital needs.
WORKING CAPITAL
(in thousands of EUR)
2022 2021 D E LTA
NON-CURRENT ASSETS 12,101 4,852 7,249
Non-current financial derivatives (forex/fuel hedges) 209 613 -404
Other non-current assets 11,892 4,239 7,653
CURRENT ASSETS 1,000,590 826,730 173,860
Inventories 25,696 12,168 13,528
Contract assets 344,751 326,685 18,066
Trade and other operating receivables 469,529 384,022 85,507
Current financial derivatives (forex/fuel hedges) 4,384 3,207 1,177
Assets held for sale 31,997 32,456 -459
Other current assets 124,233 68,192 56,041
TOTAL ASSETS 1,012,691 831,582 181,10 9
NON-CURRENT LIABILITIES 53,661 24,260 29,401
Non-current financial derivatives (forex/fuel hedges) 53,661 24,260 29,401
CURRENT LIABILITIES 1,465,183 1,318,408 146,775
Current financial derivatives (forex/fuel hedges) 31,579 10,476 21,103
Provisions 4,714 3,738 976
Contract liabilities 323,300 181,095 142,205
Advances received 72,539 101,067 -28,528
Trade payables 777,705 772,905 4,800
Remuneration and social debt 98,793 94,026 4,767
Current income taxes 66,571 76,370 -9,799
Other current liabilities 89,982 78,731 11,251
TOTAL LIABILITIES 1,518,844 1,342,668 176,176
OPERATING WORKING CAPITAL -506,153 -511,086 4,933
The reconciliation of the operating working capital movement with the cash flow from changes in working capital can be found below.
RECONCILIATION OPERATING WORKING CAPITAL
MOVEMENT WITH CASH FLOW FROM CHANGES IN
WORKING CAPITAL
(in thousands of EUR)
2022 2021 D E LTA
OPERATING WORKING CAPITAL -506,153 -511,086 4,933
CASH FLOW CORRECTIONS ON WORKING CAPITAL MOVEMENTS
OF THE YEAR
Addition assets held for sale -31,997
Movements in amounts written off inventories and trade receivables -5,428
Impact financial derivatives included in working capital 1,852
Correction unpaid taxes and interests 171
Correction unpaid investment in property, plant and equipment 4,173
Other corrections 1,403
CASH FLOW FROM CHANGES IN WORKING CAPITAL -24,893
DEME ANNUAL REPORT 2022 261
CHAPTER 06
NOTE 25 – RIGHTS AND COMMITMENTS NOT REFLECTED
IN THE BALANCE SHEET
Balance at December 31
(in thousands of EUR)
2022 2021
COMMITMENTS GIVEN
Amount of real guarantees, given or irrevocably promised by the enterprises included in the
consolidation on their own assets, as security for debts and commitments, of enterprises
included in the consolidation.
- 18,281
Bank and insurance guarantees for commitments of enterprises included in the consolidation. 1,374,021 1,411,273
COMMITMENTS RECEIVED
Bank guarantees received as security for commitments to enterprises included in the
consolidation.
129,672 241,035
FUTURE OPERATIONAL OBLIGATIONS ENTERED INTO WITH SUPPLIERS
In the environmental segment DEME has the obligation to pay a fee for landfill volume
reservation over the next 8 years for an estimated amount of 9.1 million EUR.
NOTE 26 – RELATED PARTY DISCLOSURES
Balance at December 31
JOINT VENTURES AND ASSOCIATES
Reference is made to the DEME Group structure and list of joint ventures and associates earlier in this report.
Transactions with joint ventures and associates are realised in the normal course of business and at arm’s length. None of the related
parties have entered into any other transactions with the Group that meet the requirements of IAS 24
related party disclosures.
(in thousands of EUR)
2022 2021
Assets related to joint ventures and associates
Non-current financial assets 24,173 25,668
Trade and other operating receivables 31,465 13,889
Liabilities related to joint ventures and associates
Trade and other current liabilities 34,606 20,996
Expenses and income related to joint ventures and associates (-) is cost and (+) is income
Revenues 231,565 194,362
Operating expenses -28,572 -17,456
Financial income and expenses 1,584 2,116
The non-current financial assets are the loans given to joint ventures and associates such as to Japan Offshore Marine Ltd, Seamade
NV, Rentel NV, Deeprock BV, Thisle Wind Partners Ltd and Combined Marine Terminal Operations Marafi LLC.
The revenues realised towards joint ventures and associates are mainly related to BAAK Blankenburg-Verbinding BV, CDWE Taiwan
LTD, SEMOP Port-La Nouvelle, DIAP-Daelim PTE LTD, K3 DEME BV, Scaldis NV, Deeprock BV and C-Power NV.
SHAREHOLDERS
CFE NV, DEME’s previous shareholder before the public listing, is considered to be a fellow subsidiary as from June 29, 2022, date of
the partial demerger of CFE NV. CFE NV and DEME Group NV have both Ackermans & van Haaren NV as their main shareholder.
Since 2001, DEME has an identical service agreement with Ackermans & van Haaren NV and CFE NV for services rendered. The service
agreement covers specialised advice delivered by both Ackermans & van Haaren NV and CFE NV. The service agreement, that ended
for CFE NV after the recent partial demerger, is subject to indexation on a yearly basis. The remuneration due by DEME in 2022
towards both parties upon the conditions of the contract amounts to 1,985 thousand EUR (AvH:1,323 thousand EUR and CFE: 662
thousand EUR; in comparison with 1,235 thousand EUR for each in 2021).
Additionally, DEME received invoices related to its recent IPO from CFE NV for an amount of 1,106 thousand EUR. On the other hand,
DEME invoiced around 164 thousand EUR to its shareholder and fellow subsidiary, mainly related to IT licences and tax consulting
services (2021: 877 thousand EUR).
262 CONSOLIDATED FINANCIAL STATEMENTS
Currently DEME is constructing a new office building. Execution of works is done by a subsidiary of CFE NV. At December 31, 2022
invoices received for an amount of 6,221 thousand EUR are recognised as assets under construction.
KEY MANAGEMENT PERSONNEL
DEME Group NV has a “one tier” governance structure consisting of a Board of Directors (as collegiate body). The Board of Directors
is vested with the power to perform all acts that are necessary or useful for the realisation of the Company’s corporate object, except
for those actions that are specifically reserved by law for the Shareholders’ Meeting.
On June 29, 2022, the Board of Directors has delegated the daily management of the Company from the Executive Committee to the
CEO. The CEO is supported in the execution of his mandate by the Executive Committee, which operates as an advisory committee
(separate from the Board of Directors). The Executive Committee, chaired by the CEO, is responsible for the general management of
the Group.
For his role as Executive Director, Luc Vandenbulcke received a fixed and variable remuneration of 1,862 thousand EUR in 2022 (2021:
1,576 thousand EUR). Representatives who are members of the Board of Directors, Audit Committee and Remuneration Committee
are only remunerated since the public listing of the Group.
(in thousands of EUR)
2022 2021
Remuneration of the directors 360 -
Director fees at the expense of DEME Group 360 -
Remuneration of the CEO 1,862 1,576
Fixed annual remuneration 343 330
Short-term variable remuneration 1,454 1,194
Long-term variable remuneration - -
Group insurance / Pension (Plan) contributions 62 50
Other benefits 3 3
Remuneration of the members of the Executive Committee (excluding CEO) 5,676 4,581
Fixed annual remuneration 1,260 1,197
Short-term variable remuneration 3,937 2,984
Long-term variable remuneration - -
Group insurance / Pension (Plan) contributions 463 383
Other benefits 17 18
NOTE 27 – AUDITOR REMUNERATION
Balance at December 31
An overview of the total remuneration paid to the auditors by DEME Group NV and its consolidated subsidiaries is presented below.
A distinction (both in absolute figures and in percentage) is made between fees paid by the Group to the statutory auditor of DEME
Group NV and fees paid to other audit firms.
For the financial year 2021, Deloitte and EY were jointly appointed as the statutory auditor of DEME NV (parent company before the
public listing of the Group). For the financial year 2022, EY became the sole statutory auditor of DEME Group NV.
2022
(in thousands of EUR)
EY Others Tot al
Amount % Amount %
Audit fees 999 40.0% 1,500 60.0% 2,499
Tax advisory services 368 23.5% 1,199 76.5% 1,567