ANNUAL REPORT
20
22
22
TABLE OF
CONTENTS
CHAPTER 01
INTRODUCTION
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CHAPTER 02
STRATEGY
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DEME’s two-dimensional strategy for
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CHAPTER 03
SEGMENTS
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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
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CHAPTER 04
CORPORATE GOVERNANCE
AND RISK
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Risk management & control processes
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CHAPTER 05
SUSTAINABILITY & QHSE
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Collaboration with stakeholders
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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 COe (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
ArcadisOst1
was the first
project for
DEME’s
revolutionary
floating DP3
installation
vessel ‘Orion’
56
Drilling an entire wind farm
into rock in just 13months
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 Zwndrecht 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
ONBUSINESS 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
188 CONSOLIDATED FINANCIAL STATEMENTS
DEME ANNUAL REPORT 2022 189
CHAPTER 06
190 CONSOLIDATED FINANCIAL STATEMENTS
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264 CONSOLIDATED FINANCIAL STATEMENTS
MANAGEMENT DECLARATION
In accordance with Article 12, §2, 3° of the Royal Decree of November 14, 2007, L. Vandenbulcke (CEO) and E. Verbraecken (CFO)
declare that, to their knowledge:
- the consolidated financial accounts 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;
- the consolidated financial accounts 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.
DEME ANNUAL REPORT 2022 265
CHAPTER 06
REPORT ON THE
AUDIT OF THE
CONSOLIDATED
FINANCIAL
STATEMENTS
Unqualified opinion
We have audited the
Consolidated Financial
Statements of DEME Group NV,
that comprise of Consolidated
Statement of Financial
Position on December 31, 2022,
Consolidated Statement of
Income, Consolidated Statement
of Comprehensive Income,
Consolidated Statement of
Changes in Equity and the
Consolidated Statement of
Cash Flows of the year and
the disclosures, which show a
consolidated balance sheet total
of 4.509.778 thousand EUR and
of which the consolidated income
statement shows a profit for
the year (share of the group) of
112.720 thousand EUR.
In our opinion, the Consolidated
Financial Statements give a true
and fair view of the consolidated
net equity and financial position
as at December 31, 2022, and of
its consolidated results for the
year then ended, prepared in
accordance with the International
Financial Reporting Standards as
adopted by the European Union
(“IFRS”) and with applicable legal
and regulatory requirements in
Belgium.
Basis for the
unqualified opinion
We conducted our audit in
accordance with International
Standards on Auditing (“ISAs”)
applicable in Belgium. In addition,
we have applied the ISA’s approved
by the International Auditing
and Assurance Standards Board
(“IAASB”) that apply at the current
year-end date and have not yet
been approved at national level.
Our responsibilities under those
standards are further described
in the “Our responsibilities for the
audit of the Consolidated Financial
Statements” section of our report.
We have complied with all ethical
requirements that are relevant
to our audit of the Consolidated
Financial Statements in Belgium,
including those with respect to
independence.
We have obtained from the Board
of Directors and the officials of
the Company the explanations
and information necessary for
the performance of our audit
and we believe that the audit
evidence we have obtained is
sufficient and appropriate to
provide a basis for our opinion.
Key audit matters
Key audit matters are those
matters that, in our professional
judgment, were of most
significance in our audit of
the Consolidated Financial
Statements of the current
reporting period.
These matters were addressed
in the context of our audit of the
Consolidated Financial Statements
as a whole and in forming our
opinion thereon, and consequently
we do not provide a separate
opinion on these matters.
Revenue recognition and
project accounting
Description of the
key audit matter
For the majority of its contracts
(hereafter the “contracts”
or the “projects”), the Group
recognizes revenue and profit
on the stage of completion
based on the proportion of
contract costs incurred for the
work performed to the balance
sheet date, relative to the
estimated total costs of the
contract at completion. The
recognition of revenue and profit
therefore relies on estimates
in relation to the forecasted
total costs on each contract.
Cost contingencies may also
be included in these estimates
to take specific uncertain risks
into account, or disputed claims
against the Group, arising within
each contract. The revenue
on contracts may also include
variation order and claims,
which are recognized on a
In the context of the statutory audit of the Consolidated Financial Statements) of DEME Group NV
(the “Company”) and its subsidiaries (together the “Group”), we report to you as statutory auditor.
This report includes our opinion on Consolidated Statement of Financial Position as at December
31, 2022, Consolidated Statement of Income, Consolidated Statement of Comprehensive Income,
Consolidated Statement of Changes in Equity and the Consolidated Statement of Cash Flows for the
year ended December 31, 2022 and the disclosures (all elements together the “Consolidated Financial
Statements”) as well as our report on other legal and regulatory requirements. These two reports are
considered one report and are inseparable.
We have been appointed as statutory auditor by the shareholders’ meeting of June 29, 2022, in
accordance with the proposition by the Board of Directors following recommendation of the Audit
Committee and following recommendation of the workers’ council. Our mandate expires at the
shareholders’ meeting that will deliberate on the Consolidated Financial Statements for the year
ending December 31, 2024. We performed the audit of the Consolidated Financial Statements of the
Group for one year.
INDEPENDENT AUDITOR’S REPORT TO THE GENERAL ASSEMBLY
OF DEME GROUP NV FOR THE YEAR ENDED DECEMBER 31, 2022.
INDEPENDENT AUDITOR’S REPORT
266 CONSOLIDATED FINANCIAL STATEMENTS
contract-by-contract basis when
the additional contract revenue
can be measured reliably in line
with the IFRS.
Revenue recognition and
contract accounting often
involves a high degree of
judgment due to the complexity
of projects, uncertainty
about costs to complete and
uncertainty about the outcome
of discussions with clients on
variation orders and claims. This
is a key audit matter because
there is a high degree of risk and
related management judgement
in estimating the amount of
revenue and associated profit
or loss to be recognized, and
changes to these estimates could
give rise to important variances.
Summary of the
procedures performed
- We obtained an understanding
of the process related to the
contract follow up, the revenue
and margin recognition and
when applicable the provisions
for losses at completion, and
we assessed the design and the
implementation of the related
key internal controls, including
management review controls.
- Based on quantitative and
qualitative criteria, we selected
a sample of contracts to assess
the most significant and
complex project estimates.
For this sample, we obtained
an understanding of the
current status and history of
the projects and discussed the
judgments inherent to these
projects with senior executive
and financial management. We
analyzed the differences with
prior period project estimates
and assessed consistency
of reporting of the status of
the projects with the actual
developments of the project
during the year.
- We analyzed the calculation of
the percentage of completion
used to recognize revenue
and margin for a sample of
projects.
- We compared the financial
performance of projects against
budget and historical trends.
- We completed site visits for
certain projects to observe the
stage of completion of these
projects and discuss the status
with site personnel as well as
complexities of the project
that could impact its total
forecasted cost.
- We analyzed correspondence
with customers around
variation orders and claims
and assessed whether this
information was consistent
with the estimates made by
the management.
- We Inspected key clauses
impacting the (un)bundling
of contracts, delay penalties,
bonuses or success fees.
We assessed whether these
key clauses have been
appropriately reflected in
the amounts recognized in
the Consolidated financial
statements.
- We assessed the adequacy
of the information disclosed
in the summary of principal
accounting policies, note (1) and
note (12) to the Consolidated
Financial Statements.
Uncertain tax positions
Description of the
key audit matter
DEME operates its global
business across a variety of
countries subject to different
tax regimes. The taxation of its
operations can be subject to
judgements and might result
in diverging views of local tax
authorities and that may span
multiple years to get resolved.
Where the amount of tax payable
is uncertain, management
establishes an accrual based
on its best estimate of the
probable amount to settle
the liability. This is a key audit
matter because management
exercises significant judgement
in assessing the liability for
uncertain tax positions at
balance sheet date and changes
to these estimates could give rise
to important variances.
Summary of the
procedures performed
- We obtained an understanding
of the process in respect of
accounting for (deferred) taxes
and assessed the design and
the implementation of the
related key internal controls.
- We assessed the estimated
probability of the identified
tax risks and challenged
management’s estimates of
the potential outflows trough
management inquiry and
inspection of the supporting
documentation (changes in tax
legislation, correspondence
with tax authorities and tax
advisors, available rulings).
- We involved our tax
professionals to assist us in the
evaluation of management’s
assumptions and application
of relevant tax laws and
regulations in the assessment
of the Group’s uncertain tax
positions.
- We assessed the adequacy
of the information disclosed
in the summary of principal
accounting policies and note
(10) to the Consolidated
Financial Statements.
Responsibilities of
the Board of Directors
for the preparation
of the Consolidated
Financial Statements
The Board of Directors is
responsible for the preparation
of the Consolidated Financial
Statements that give a true
and fair view in accordance with
IFRS and with applicable legal
and regulatory requirements in
Belgium and for such internal
controls relevant to the
preparation of the Consolidated
Financial Statements that are
free from material misstatement,
whether due to fraud or error.
As part of the preparation of
the Consolidated Financial
Statements, the Board of
Directors is responsible for
assessing the Company’s ability
to continue as a going concern,
and provide, if applicable,
information on matters
impacting going concern. The
Board of Directors should
prepare the financial statements
using the going concern basis
of accounting, unless the Board
of Directors either intends to
liquidate the Company or to
cease business operations, or
has no realistic alternative but
to do so.
DEME ANNUAL REPORT 2022 267
CHAPTER 06
Our responsibilities for the
audit of the Consolidated
Financial Statements
Our objectives are to obtain
reasonable assurance whether
the Consolidated Financial
Statements are free from material
misstatement, whether due to
fraud or error, and to express an
opinion on these Consolidated
Financial Statements based on
our audit. Reasonable assurance
is a high level of assurance, but
not a guarantee that an audit
conducted in accordance with the
ISAs will always detect a material
misstatement when it exists.
Misstatements can arise from
fraud or error and considered
material if, individually or in the
aggregate, they could reasonably
be expected to influence the
economic decisions of users taken
on the basis of these Consolidated
Financial Statements.
In performing our audit, we
comply with the legal, regulatory
and normative framework
that applies to the audit of
the Consolidated Financial
Statements in Belgium. However,
a statutory audit does not provide
assurance about the future
viability of the Company and the
Group, nor about the efficiency
or effectiveness with which the
Board of Directors has taken or
will undertake the Company’s and
the Group’s business operations.
Our responsibilities with regards
to the going concern assumption
used by the Board of Directors are
described below.
As part of an audit in accordance
with ISAs, we exercise
professional judgment and we
maintain professional skepticism
throughout the audit. We also
perform the following tasks:
- identification and
assessment of the risks of
material misstatement of
the Consolidated Financial
Statements, whether due to
fraud or error, the planning and
execution of audit procedures
to respond to these risks and
obtain audit evidence which is
sufficient and appropriate to
provide a basis for our opinion.
The risk of not detecting
material misstatements
resulting from fraud is higher
than when such misstatements
result from errors, since
fraud may involve collusion,
forgery, intentional omissions,
misrepresentations, or the
override of internal control;
- obtaining insight in the
system of internal controls
that are relevant for the
audit and with the objective
to design audit procedures
that are appropriate in the
circumstances, but not for
the purpose of expressing an
opinion on the effectiveness of
the Company’s internal control;
- evaluating the selected
and applied accounting
policies, and evaluating the
reasonability of the accounting
estimates and related
disclosures made by the Board
of Directors as well as the
underlying information given
by the Board of Directors;
- conclude on the
appropriateness of the
Board of Directors’ use of
the going-concern basis of
accounting, and based on
the audit evidence obtained,
whether or not a material
uncertainty exists related to
events or conditions that may
cast significant doubt on the
Company’s or Group’s ability
to continue as a going concern.
If we conclude that a material
uncertainty exists, we are
required to draw attention
in our auditor’s report to
the related disclosures in
the Consolidated Financial
Statements or, if such
disclosures are inadequate,
to modify our opinion. Our
conclusions are based on audit
evidence obtained up to the
date of the auditor’s report.
However, future events or
conditions may cause the
Company to cease to continue
as a going-concern;
- evaluating the overall
presentation, structure and
content of the Consolidated
Financial Statements, and
evaluating whether the
Consolidated Financial
Statements reflect a true and
fair view of the underlying
transactions and events.
We communicate with the Audit
Committee within the Board
of Directors regarding, among
other matters, the planned
scope and timing of the audit
and significant audit findings,
including any significant
deficiencies in internal control
that we identify during our audit.
Because we are ultimately
responsible for the opinion, we
are also responsible for directing,
supervising and performing the
audits of the subsidiaries. In this
respect we have determined the
nature and extent of the audit
procedures to be carried out for
group entities.
We provide the Audit
Committee within the Board
of Directors with a statement
that we have complied with
relevant ethical requirements
regarding independence, and
to communicate with them all
relationships and other matters
that may reasonably be thought
to bear on our independence,
and where applicable, related
safeguards.
From the matters communicated
with the Audit Committee
within the Board of Directors,
we determine those matters
that were of most significance
in the audit of the Consolidated
Financial Statements of the
current period and are therefore
the key audit matters. We
describe these matters in
our report, unless the law or
regulations prohibit this.
REPORT ON
OTHER LEGAL
AND REGULATORY
REQUIREMENTS
Responsibilities of the
Board of Directors
The Board of Directors is
responsible for the preparation
and the content of the Board
of Directors’ report on the
Consolidated Financial
Statements, the non-financial
information attached to the
Board of Directors’ report, and
other information included in the
annual report.
268 CONSOLIDATED FINANCIAL STATEMENTS
Responsibilities
of the auditor
In the context of our mandate
and in accordance with the
additional standard to the
ISAs applicable in Belgium, it
is our responsibility to verify,
in all material respects, the
Board of Directors’ report on
the Consolidated Financial
Statements, the non-financial
information attached to the
Board of Directors’ report, and
other information included in the
annual report, as well as to report
on these matters.
Aspects relating to Board
of Directors’ report and
other information included
in the annual report
In our opinion, after carrying
out specific procedures on the
Board of Directors’ report, the
Board of Directors’ report is
consistent with the Consolidated
Financial Statements and has
been prepared in accordance
with article 3:32 of the Code of
companies and associations.
In the context of our audit of
the Consolidated Financial
Statements, we are also
responsible to consider whether,
based on the information that
we became aware of during the
performance of our audit, the
Board of Directors’ report and
other information included in the
annual report, being:
- Financial and non-financial key
figures
- Group Performance 2022
contain any material
inconsistencies or contains
information that is inaccurate or
otherwise misleading. In light of
the work performed, there are
no material inconsistencies to be
reported.
The non–financial information
required by article 3:32, § 2,
of the Code of companies and
associations has been included in
the annual report. The Company
has prepared the Group’s
non-financial information based
on “Sustainable Development
Goals (SDG’s)”. However, in
accordance with article 3:80 §
1, 5° of the Code of companies
and associations, we do not
express any opinion on the
question whether this non-
financial information has been
established in accordance
with the SDG framework. As
requested by the Company, we
have issued a separate limited
assurance report on a low
carbon fuel Key Performance
Indicator (“KPI”) in accordance
with the International Standard
on Assurance Engagements
ISAE 3000. We do not express
any assurance on the KPI’s not
covered by our separate limited
assurance report.
Independence matters
Our audit firm and our network
have not performed any services
that are not compatible with
the audit of the Consolidated
Financial Statements and have
remained independent of the
Company during the course of
our mandate.
The fees related to
additional services which are
compatible with the audit of
the Consolidated Financial
Statements as referred to
in article 3:65 of the Code of
companies and associations
were duly itemized and valued
in the notes to the Consolidated
Financial Statements.
European single electronic
format (“ESEF”)
In accordance with the standard
on the audit of the conformity
of the financial statements with
the European single electronic
format (hereinafter “ESEF”),
we have carried out the audit
of the compliance of the ESEF
format with the regulatory
technical standards set by the
European Delegated Regulation
No 2019/815 of December 17,
2018 (hereinafter: “Delegated
Regulation”).
The Board of Directors
is responsible for the
preparation, in accordance
with the ESEF requirements,
of the consolidated financial
statements in the form of
an electronic file in ESEF
format (hereinafter ‘the
digital consolidated financial
statements’) included in the
annual financial report available
on the portal of the FSMA
(https://www.fsma.be/en/
data-portal).
It is our responsibility to obtain
sufficient and appropriate
supporting evidence to
conclude that the format
and markup language of the
digital consolidated financial
statements comply in all
material respects with the
ESEF requirements under the
Delegated Regulation.
Based on the work performed by
us, we conclude that the format
and tagging of information in
the digital consolidated financial
statements of DEME Group NV
per December 31, 2022 included
in the annual financial report
available on the portal of the
FSMA (https://www.fsma.be/en/
data-portal) are, in all material
respects, in accordance with the
ESEF requirements under the
Delegated Regulation.
Other communications.
This report is consistent with our
supplementary declaration to the
Audit Committee as specified in
article 11 of the regulation (EU)
nr. 537/2014 .
Diegem, March 30, 2023
EY Bedrfsrevisoren BV
Statutory auditor
Represented by
Patrick Rottiers* (Partner) Wim Van Gasse* (Partner)
*Acting on behalf of a BV/SRL *Acting on behalf of a BV/SRL
DEME ANNUAL REPORT 2022 269
CHAPTER 06
PARENT COMPANY FINANCIAL
STATE M E NTS
INTRODUCTION
In accordance with the Belgian Code on Companies and Associations, both the statutory annual accounts and the annual report of the
Board of Directors of DEME Group NV are presented in a condensed form.
The statutory annual accounts of DEME Group NV are prepared in accordance with Belgian Generally Accepted Accounting Principles.
The statutory auditor has issued an unqualified audit opinion on the statutory annual accounts for the year ended December
31, 2022, as they give a true and fair view of the financial position and results of DEME Group NV in accordance with all legal and
regulatory dispositions.
In accordance with the legislation, the complete financial statements (consolidated and statutory annual accounts), together with the
annual report of the Board of Directors to the Annual General Meeting of Shareholders, as well as the Auditor’s Report, will be filed at
the National Bank of Belgium.
All these documents are available on the website of the Company (www.deme-group.com) or at the registered office of the company
upon simple request.
Address:Scheldedk30 -2070Zwndrecht,Belgium
Phone: +32 3 250 52 11 - Email: investor.relations@deme-group.com
STATEMENT OF FINANCIAL POSITION
as of December 31 (in thousands of EUR) (according to Belgian GAAP and after profit allocation)
ASSETS 2022 2021
FIXED ASSETS 1,100,000 -
FORMATION EXPENSES - -
INTANGIBLE ASSETS - -
PROPERTY, PLANT AND EQUIPMENT - -
FINANCIAL ASSETS 1,100,000 -
Affiliated enterprises 1,100,000 -
CURRENT ASSETS 50,148 -
AMOUNTS RECEIVABLE AFTER MORE THAN ONE YEAR - -
INVENTORIES AND CONTRACTS IN PROGRESS - -
AMOUNTS RECEIVABLE WITHIN ONE YEAR 49,524 -
Other amounts receivable 49,524 -
OWN SHARES AND OTHER INVESTMENTS - -
CASH AT BANK AND IN HAND - -
DEFERRED CHARGES AND ACCRUED INCOME 624 -
TOTAL ASSETS 1,150,148 -
270 PARENT COMPANY FINANCIAL STATEMENTS
LIABILITIES 2022 2021
CAPITAL AND RESERVES 1,111,845 -
CAPITAL 33,194 -
Issued capital 33,194 -
Uncalled capital (-) - -
SHARE PREMIUM ACCOUNT 475,989 -
REVALUATION SURPLUS 487,400 -
RESERVES 6,949 -
Legal reserves 3,319 -
Reserves not available for distribution - -
Untaxed reserves 1,716 -
Reserves available for distribution 1,914 -
PROFIT CARRIED FORWARD 108,313 -
PROVISIONS AND DEFERRED TAXES - -
Provisions for liabilities and charges - -
Deferred tax liabilities - -
CREDITORS 38,303 -
AMOUNTS PAYABLE AFTER MORE THAN ONE YEAR - -
AMOUNTS PAYABLE WITHIN ONE YEAR 38,303 -
Trade payables 331 -
Other amounts payable 37,972 -
ACCRUED CHARGES AND DEFERRED INCOME - -
TOTAL LIABILITIES 1,150,148 -
STATEMENT OF INCOME
as of December 31 (in thousands of EUR) (according to Belgian GAAP)
2022 2021
OPERATING INCOME - -
OPERATING CHARGES -204 -
OPERATING RESULT -204 -
FINANCIAL INCOME 50,022 -
Income from financial assets 50,022 -
FINANCIAL CHARGES - -
RESULT FOR THE FINANCIAL PERIOD BEFORE TAXATION 49,818 -
TRANSFER FROM (TO) DEFERRED TAXES - -
INCOME TAXES - -
RESULT FOR THE FINANCIAL PERIOD 49,818 -
DEME ANNUAL REPORT 2022 271
CHAPTER 06
SUMMARY OF THE ANNUAL REPORT
OF THE BOARD OF DIRECTORS
Until June 29, 2022, DEME NV was the holding company of the DEME Group, 100 % owned by the Brussels-based civil engineering
contractor CFE NV, who 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.
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 DEME became listed as well. The first day of trading of the DEME Group NV shares was June 30, 2022.
DEME Group NV is 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. During 2022 DEME Group NV received dividends for an amount of 50,000 thousand EUR from
its subsidiaries and has an outstanding dividend to pay of 37,972 thousand EUR. As a result of cash pooling within the Group, all funds
received are immediately transferred to the in-house bank of the Group, DEME Coordination Center NV, resulting in an ‘other amounts
receivable’ on the balance sheet.
As DEME Group NV is a newly created company in 2022, no comparatives for 2021 are available.
Reference is also made to the section about ‘Risk management & control processes’, ‘Strategy ’, ‘Sustainability & QHSE’, ‘Financial risk
management and financial derivatives’ earlier in this Annual Report of the Group.
APPROPRIATION ACCOUNT
as of December 31 (in thousands of EUR) (according to Belgian GAAP)
2022 2021
RESULT FOR THE FINANCIAL PERIOD 49,818 -
TRANSFER FROM (TO) THE UNTAXED RESERVES - -
PROFIT FOR THE PERIOD AVAILABLE FOR APPROPRIATION 49,818 -
TRANSFER FROM PROFIT CARRIED FORWARD 96,467 -
TRANSFER TO LEGAL RESERVES - -
DISTRIBUTION OF DIVIDENDS -37,972 -
TRANSFER TO PROFIT CARRIED FORWARD 108,313 -
The result for the financial period 2022 of DEME Group NV amounts to 49,818 thousand EUR. The transfer from profit carried
forward originates from the partial demerger from CFE NV.
The 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.
INTERESTS IN SHARE CAPITAL
In line with the Act of May 2, 2007, on the disclosure of major participations in listed companies (the Transparency Act), the Company
uses the threshold of 5%. On December 31, 2022, the total number of shares amounts 25,314,482. 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 the Shareholders’ General
Meetings.
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%)
Begnenvest,113 5,coursFerdinand-de-Lesseps
B-2000 Antwerp (Belgium) F-92851 Rueil-Malmaison Cedex (France)
272 PARENT COMPANY FINANCIAL STATEMENTS
APPENDIX
07
CHAPTER
GLOSSARY
7.1
DEME ANNUAL REPORT 2022
Activity Line
level of internal operating
segment to report on.
Associated companies
in which the Group has significant
influence. The significant influence
is the power to take part in the
financial and operating policies of a
company without having control or
joint control over these policies.
engineering), Innovation, Smarts
innovation campaign focusing on
by introducing novel solutions.
BOP
Balance of Plant
BBC
Big Bubble Curtain
CapEx
CCZ
Clarion Clipperton Zone of
the Pacific Ocean. Relevant
for DEME's GSR's activity. See
GSR - Concessions Chapter.
Climate-neutrality
emissions by balancing those emissions
so they are equal (or less than) the
emissions that get removed through
the planet's natural absorption.
CO
includes all direct GHG emissions.
These occur from sources that are
owned or controlled by DEME (e.g.
combustion of fuel and natural gas).
CO
accounts for indirect GHG emissions
from the generation of electricity
physically occur at the facility
where electricity is generated.
CO
indirect emissions. These emissions
are a consequence of DEME’s
activities but occur through sources
that are not owned or controlled
by DEME. Here we report the
emissions related to the purchase
of goods and services such as steel
and concrete, down- and upstream
transport, business travel, etc.
CO Performance Ladder
For the Netherlands and Belgium, we
are certified in accordance with the
information and details on the CO
can be found on www.deme-group.
particular, DEME’s progress report
‘Energy Performance’ booklet).
Contributed Capacity
('MW Installed foundations')
Contributed capacity is calculated
counting total number of foundations
installed by DEME during the reporting
period (between January 1 and
corresponding turbine capacity. The
turbine capacity is also called the rated
power of the turbine. It is the power
that the turbine generates for wind
installed turbine has a specific rated
Corporate Sustainability
Due Diligence Directive
Corporate Sustainability Reporting
Directive (CSRD) is the new EU
legislation requiring all large
companies to publish regular reports
on their environmental and social
impact activities. It helps investors,
consumers, policymakers, and
other stakeholders evaluate large
companies' non-financial performance.
in place using spuds and anchors,
which makes use of a cutter head to
loosen the material to be dredged.
It cuts and pumps the dredged
materials into a pressured pipeline
ashore or into barges. While dredging
the cutter head describes arcs and is
swung around the spud-pole powered
by winches. It combines powerful
cutting with suction dredging
techniques. The cutter head can be
replaced by several kinds of suction
heads for special purposes, such as
environmental dredging. This kind of
dredger is mainly used where the sea
-and riverbed is hard and/or compact.
Large heavy-duty cutter dredgers are
capable of dredging some types of
rock, which have not been pre-treated.
Most of the DEME cutter suction
dredgers are self-propelled to allow
easy movement from site to site.
Glossary
GLOSSARY
DEME ANNUAL REPORT 2022
DF
Dual Fuel Main Engines (LNG/MGO)
Dynamic Positioning /
Dynamic Tracking
EBIT
EBIT is the operating result or earnings
and before our share in the result
of joint ventures and associates.
EBITDA
(EBIT), depreciation, amortisation
Emission factors
Emission factors refer to both GHG
emissions and CO
emissions.
For GHG emissions (worldwide):
Sector-specific emission factors
from the IMO are used for vessels. For
all other equipment, the worldwide
of Defra (the UK government’s
Department for Environment,
For CO
Ladder standards we use as a source
EPC project
Construction Project is a contract type
that defines the contractor’s scope of
for the Engineering, Procurement and
Construction and hand-over to the
owner for a start-up and operation.
EPCI project
Construction and Installation Project
is one of the typical contract types of
the Offshore Energy segment that
covers Engineering, Procurement,
Construction, and Installation scope of
works to be provided by a contractor.
specifically for dumping rocks on
the seabed. The vessel is able to
transport and dump rocks of variable
fallpipe which can be lowered into
the water to install rock on pipelines
and other subsea structures. The
vessel is equipped with a dynamic
positioning system, making it possible
to position rocks very accurately.
The fallpipe vessel can position
using an active heave compensated
Remotely Operated Vehicle.
Fleet utilisation rate
The fleet utilisation rate is the
weighted average operational
occupation in weeks of the DEME
reporting period. It is calculated
as a weighted average based upon
internal rates of hire of the vessels.
FTE
Full time equivalent
Geographical market
Geographical market is determined
as the area (location) where the
projects are realised and services
are provided or the project
location for offshore works.
GHG emissions
Greenhouse gases, or GHG, are
compound gases that trap heat or
longwave radiation in the atmosphere.
Their presence in the atmosphere
makes the Earth's surface warmer.
DEME follows the Greenhouse Gas
Protocol and reports its GHG emissions
according to three scopes.
DEME includes the Greenhouse gases
its carbon footprint.
For scope worldwide - Scope 1 includes
all direct GHG emissions. These occur
from sources that are owned or
controlled by DEME (e.g.combustion
of fuel and natural gas).
accounts for indirect GHG emissions
from the generation of electricity
physically occur at the facility
where electricity is generated.
a reporting category for all other
indirect emissions. These emissions
are a consequence of DEME’s
activities but occur through sources
that are not owned or controlled
by DEME. On a worldwide level we
only report the emissions which
result from business air miles.
Green Initiatives
to a process, equipment or setup
that reduces the environmental
impact of a project.
Global Sea Mineral Resources, DEME's
part of DEME’s Concessions segment.
GW
Gigawatt
Headcount
Total number of permanent
employees on DEME's payroll on
diverges from average FTEs
accounted for in other non-financial
KPIs. Temporary employees and
subcontractors are not included.
HIPO
incident that could have had
severe consequences, not only for
people, but also for quality, assets,
reputation and environment.
IEA
International Financial Reporting
Standards (IFRS) are a set of accounting
rules adopted by the European Union
for the financial statements of public
companies that are intended to make
them consistent, transparent, and
easily comparable around the world. The
IFRSs are issued by the London-based
and address record keeping, account
reporting, and other aspects of financial
companies within the European Union
need to comply with these standards
IMO
International Maritime Organisation
Investments
Investments is the amount paid for
the acquisition of ‘intangible assets’
and ‘property, plant and equipment’.
Reference is made to the consolidated
cash flow from investing activities.
IP
Intellectual Property
Joint control is the contractually
agreed sharing of control of an
when decisions about the relevant
activities require unanimous consent
of the parties sharing control.
control over the arrangement,
have rights to the net assets
of the joint arrangement.
kW
Kilowatt
Li-ion
advanced battery technology
that uses lithium ions as a key
component of its electrochemistry
LNG
Liquified Natural Gas.
Low carbon fuels
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 (Liquified
Natural Gas) and blended bio-fuels.
LTI
results in an injury or disease resulting
not included). The declaration that
the injured person is unable to work
must have been made by a licensed
medical professional. Commuting
accidents, illnesses and other non-
The management reporting of
the Group is a quarterly internal
reporting of the economic figures of
the Group in which group companies
jointly controlled by DEME are not
consolidated by using the equity
method (so in contradiction to the
standards IFRS 10 and IFRS 11) but
according to the proportionate
ventures are visible, closely followed
up and reported within the Group.
The presentation of the figures is
also done by operational segment.
MP
Monopile
Vessel is a deep-sea vessel designed
and used to lay underwater cables
for telecommunications, electric
power transmission and many other
purposes. This type of vessel is used for
connecting offshore structures through
intra-array (inter-turbine) cables and
consequently bringing the offshore
cables. Beside cable laying activities,
the vessel can be employed in a wide
range of associated activities, such as
offshore support, ploughing, subsea
rock installation, offshore construction,
floating windpark installation etc. The
vessels are equipped with one or more
turning tables allowing to continuously
load and install very long cables.
MW
Megawatt
MWh
(MWh) equals 1,000 kilowatts of
electricity generated per hour and is
used to measure electric output.
MW Beneficial Ownership
The amount of economic ownership
of wind energy from offshore
concessions in operation.
MW Installed wind turbines
The total turbine capacity
installed by DEME during the
reporting period (between January
The turbine capacity is also called
the rated power of the turbine.
It is the power that the turbine
generates for wind speeds above
turbine has a specific rated power,
Solutions that are inspired and
supported by nature , which are cost-
effective, and simultaneously provide
environmental, social and economic
benefits and help build resilience.
GLOSSARY
DEME ANNUAL REPORT 2022
NDF
contract whereby two parties agree
rate on a future date. The contract is
settled in a widely traded currency,
rather than the original currency.
Net financial debt
Net financial debt is the sum of
current and non- current interest-
bearing debt (that includes
lease liabilities) decreased with
cash and cash equivalents.
NOx
of poisonous, highly reactive gases.
temperatures and are air pollutants
that cause a local environmental
impact, such as the formation of acid
rain, respiratory health effects.
income on the income statement.
for the installation and maintenance
of offshore wind farms or any other
vessel or self-elevating unit is a self-
propelled mobile platform consisting
of a buoyant hull fitted with a number
of movable legs, capable of raising its
hull over the surface of the seabed.
Once on location the hull is raised to
the required elevation above the sea
surface supported to the sea bed,
leading to stable working conditions
independent of any swell on the sea.
Unlike a Self-elevating vessel, a Floating
Offshore installation vessel can
not lift herself above the sea surface,
which means that the vessel is not
dependent on the water depths
and the seabed conditions.
OLO
OLO is the abbreviation for
'Obligation Linéaire/Lineaire
Obligatie'. It are bonds issued by the
Belgian government for normally
a long time. OLO’s on 10 year are
common a general indicator for
the overall bond interest levels.
Operating working capital (+ is
receivable, - is payable) is net working
capital (current assets less current
liabilities),
interest-bearing
debt and cash & 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
those related to interest rate swaps.
OpEx
incurred through normal business
amortisation & impairment costs
assessment and management
of risks and opportunities with
respect to tendering, preparation
Orderbook
The Group’s orderbook is the contract
value of assignments acquired as
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
not sufficient to include the contract in
the orderbook according to the Group.
in ‘uncertain’ countries before including
them in the orderbook. 'Uncertain
countries' are identified at the discretion
Offshore substations are dedicated
platforms that collect energy
generated from offshore wind farms
and transfer it to shore through an
turbines through specialized submarine
cables are an essential component
of offshore wind farms, especially
at large, multi-megawatt sites.
PM
Particle pollution — also called
particulate matter (PM) — is made
up of particles (tiny pieces) of
solids or liquids that are in the air.
These particles may include dust,
dirt, soot, smoke or drops of liquid
which have a local environmental
impact and can be harmful for
health when breathing them in.
PPP
Public-Private Partnership
Research & Development
Salvage works include the
following activities: heavy
lift support during salvage
operations and wreck removals.
operating segments (activity lines) to
report on. More information about the
different DEME segments and their
nature can be found in the chapter
Significant Energy Users
level related to Supporting Services
Departments and Sales and Tender
are not directly linked to any projects
or type of equipment. They are
of molecules made of sulfur and
(SO).
that cause a local environmental
impact, such as the formation of acid
rain, respiratory health effects.
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 objectives.
of the Sustainability Board.
New class notation which is granted
to vessels that are designed, built and
equipped according to requirements
focusing on the following sustainable
aspects:
—
—
Environment
—
gas emissions
—
—
TP
Transition Piece
T&I
Transport & Installation
Time To
Internal DEME system for career
development. The Time To programme
allows to have a formal feedback
moment between Employee
and Manager to capture all this
feedback and discussions regarding
your career and development.
its hold or hopper during dredging
activities. The vessel is equipped
with either single or twin trailing
the sea bottom. While trailing at low
speed, using centrifugal pumps, the
dredged materials are stored into
can sail long distances and empty
its hold by opening bottom doors
or valves (dumping), by rainbowing
or by pumping its load off ashore
through the use of floating -and
land pipelines. This kind of dredger,
which can operate independently, is
mainly used in open waters: rivers,
canals, estuaries and the open sea.
United Nations Sustainable
Development Goals
WTG
Wind Turbine Generator
The Worldwide Lost Time Injury
Frequency Rate (Worldwide LTIFR)
is the metric reflecting accidents
of DEME employees and DEME
temporary employees involving work
by the number of hours worked. The
‘Worldwide’ method is a risk-based
(= event that resulted in the injury)
To determine if an incident scores
Zero carbon fuels
Fuels that emit no carbon
Vehicles that use a propulsion
technology which does not produce
or other carbon emissions when it
operates, such as electric vehicles.
GLOSSARY
DEME ANNUAL REPORT 2022
ESG APPENDIX
7. 2
DEME ANNUAL REPORT 2022
ESG APPENDIX
ESG APPENDIX
Unit 2022 2021 2020 m
EU Taxonomy
Turnover
Eligible -
-
CapEx
Eligible -
-
OpEx
Eligible 0 - -
0 - -
Unit 2022 2021 2020
Scope 1 GHG emissions kt COe
kt COe 1 1.0
kt COe 11 10
CO emissions BE + NE + LUX (according to CO
Scope 1 CO emissions
emissions
emissions kt CO 10
kt COe
Machinery & equipment 1
Transport of people (lease cars) 1 1
Buildings 1
Low Carbon Fuel (% Low carbon fuels versus total consumed
- -
Additional KPIs
MW Installed wind turbines MW
MW
MW Beneficial Ownership MW
Unit 2022 2021 2020
Operational solutions to manage adverse environmental impacts on water, land and air
Green Initiatives realised Number 127 125 128
Green Initiatives per theme
Minimising air emissions Number
Preventing emissions in water Number 0
Number
Preventing soil emissions Number 1
Protecting fauna and flora Number
Raising energy efficiency Number
Smart use of natural resources Number
Number
Unit 2022 2021 2020
Intrapreneurship on sustainability
Approved innovation initiatives Number
Partnerships with universities and research institutions
Collaborations with universities and research institutes Number 10
Master theses & PhDs Number
A. Summary table of
all non-financial
figures
DEME ANNUAL REPORT 2022
Unit 2022 2021 2020
Green initiatives on smart use of natural resources Number
Green initiatives on avoiding and reusing waste Number
HEALTH AND WELLBEING Unit 2022 2021 2020
Guaranteeing physical and mental health & wellbeing
Worldwide Lost Time Injury Frequency Rate (WW LTIFR) Number
Number
Timely reported incidents Number
Timely closed actions Number
Observations Number
Inspections Number
Incident Investigations Number
Unit 2022 2021 2020
Diversity and inclusion
Total Headcount permanent employees Headcount
Total Headcount staff
Total Headcount crew and workmen
Headcount by age group permanent employees
Gender breakdown permanent employees
Headcount male permanent employees Headcount
Headcount male – staff
Headcount male – crew and workmen
Headcount female permanent employees Headcount
Headcount female – staff
Headcount female – crew and workmen
Total number of nationalities Number
Crew & workmen - number of nationalities Number
Staff - number of nationalities Number
Full-time and part-time employees by gender
Headcount of full-time permanent employees Headcount
Female full-time
Male full-time
Headcount of part-time permanent employees Headcount
Female part-time
Male part-time
Hours
Hires - Total new permanent employee hires Headcount
New female hires
New male hires
Personal and professional opportunities
Performance and career development permanent employees
Participation rate 'Time to' Staff programme
Participation rate 'Time to' Crew programme
Under 1 years
> 10 years
Training hours permanent employees
Total training hours Hours
Hours/permanent
employee
Training hours for male Hours
Training hours for female Hours
Training hours for crew and workmen Hours
Training hours for staff Hours
Unit 2022 2021 2020
Clear guidance and minimum standards on business ethics & human rights for all parties involved in our operations
DEME staff that received DEME Compliance Awareness training
DEME crew that received DEME Compliance Awareness training - -
euro euro % % % % % % % Y/N Y/N Y/N Y/N Y/N Y/N Y/N % % E T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities
(Taxonomy-aligned)
Infrastructure for rail transport F42.12 39,160,552.00 1.48% 1.48% 0.00%
Y Y Y Y Y Y 1.48%
Electricity generation from wind power D35.11 649,369,509.00 24.46% 24.46% 0.00% Y Y Y Y Y Y 24.46%
Turnover of environmentally sustainable activities
(Taxonomy-aligned) (A.1)
688,530,061.00 25.94% 25.94% 0.00% 25.94%
A.2 Taxonomy-Eligible
but not environmentally sustainable activities
(not Taxonomy-aligned activities)
Electricity generation from wind power D35.11 80,442,467.00 3.03%
Turnover of Taxonomy-eligible
but not environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2)
80,442,467.00 3.03%
Total (A.1 + A.2) 768,972,528.00 28.97%
25.94% 0.00% 0.00%
B. TAXONOMY NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy non-eligible activities (B) 1,885,752,511.00 71.03%
Total (A + B) 2,654,725,039.00 100.00%
ESG APPENDIX
B. EU Taxonomy
reporting tables
DEME ANNUAL REPORT 2022
euro euro % % % % % % % Y/N Y/N Y/N Y/N Y/N Y/N Y/N % % E T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities
(Taxonomy-aligned)
Infrastructure for rail transport F42.12 39,160,552.00 1.48% 1.48% 0.00%
Y Y Y Y Y Y 1.48%
Electricity generation from wind power D35.11 649,369,509.00 24.46% 24.46% 0.00% Y Y Y Y Y Y 24.46%
Turnover of environmentally sustainable activities
(Taxonomy-aligned) (A.1)
688,530,061.00 25.94% 25.94% 0.00% 25.94%
A.2 Taxonomy-Eligible
but not environmentally sustainable activities
(not Taxonomy-aligned activities)
Electricity generation from wind power D35.11 80,442,467.00 3.03%
Turnover of Taxonomy-eligible
but not environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2)
80,442,467.00 3.03%
Total (A.1 + A.2) 768,972,528.00 28.97%
25.94% 0.00% 0.00%
B. TAXONOMY NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy non-eligible activities (B) 1,885,752,511.00 71.03%
Total (A + B) 2,654,725,039.00 100.00%
euro % % % % % % % % Y/N Y/N Y/N Y/N Y/N Y/N Y/N % % E T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities
(Taxonomy-aligned)
Electricity generation from wind power D35.11 274,970,745.00 51.87% 51.87% 0.00%
Y Y Y Y Y Y 51.87%
CapEx of environmentally sustainable
activities (Taxonomy-aligned) (A.1)
274,970,745.00 51.87% 51.87% 0.00% 51.87%
A.2 Taxonomy-Eligible
but not environmentally sustainable activities
(not Taxonomy-aligned activities)
CapEx of Taxonomy-eligible but not
environmentally sustainable activities (not
Taxonomy-aligned activities) (A.2)
0,00 0.00%
Total (A.1 + A.2) 274,970,745.00 51.87%
51.87% 0.00% 0.00%
B. TAXONOMY NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy non-eligible activities (B) 255,177,292.00 48.13%
Total (A + B) 530,148,037.00 100.00%
ESG APPENDIX
DEME ANNUAL REPORT 2022
euro % % % % % % % % Y/N Y/N Y/N Y/N Y/N Y/N Y/N % % E T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities
(Taxonomy-aligned)
Electricity generation from wind power D35.11 274,970,745.00 51.87% 51.87% 0.00%
Y Y Y Y Y Y 51.87%
CapEx of environmentally sustainable
activities (Taxonomy-aligned) (A.1)
274,970,745.00 51.87% 51.87% 0.00% 51.87%
A.2 Taxonomy-Eligible
but not environmentally sustainable activities
(not Taxonomy-aligned activities)
CapEx of Taxonomy-eligible but not
environmentally sustainable activities (not
Taxonomy-aligned activities) (A.2)
0,00 0.00%
Total (A.1 + A.2) 274,970,745.00 51.87%
51.87% 0.00% 0.00%
B. TAXONOMY NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy non-eligible activities (B) 255,177,292.00 48.13%
Total (A + B) 530,148,037.00 100.00%
euro % % % % % % % % Y/N Y/N Y/N Y/N Y/N Y/N Y/N % % E T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities
(Taxonomy-aligned)
OpEx of environmentally sustainable
activities (Taxonomy-aligned) (A.1)
0.00 0.00% 0.00% 0.00%
0.00%
A.2 Taxonomy-Eligible
but not environmentally sustainable activities
(not Taxonomy-aligned activities)
OpEx of Taxonomy-eligible but not
environmentally sustainable activities (not
Taxonomy-aligned activities) (A.2)
0.00 0.00%
Total (A.1 + A.2) 0.00 0.00%
0.00% 0.00% 0.00%
B. TAXONOMY NON-ELIGIBLE ACTIVITIES 0.00 100.00%
Turnover of Taxonomy non-eligible activities (B) 0.00 100.00%
Total (A + B) 0.00 100.00%
ESG APPENDIX
DEME ANNUAL REPORT 2022
euro % % % % % % % % Y/N Y/N Y/N Y/N Y/N Y/N Y/N % % E T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities
(Taxonomy-aligned)
OpEx of environmentally sustainable
activities (Taxonomy-aligned) (A.1)
0.00 0.00% 0.00% 0.00%
0.00%
A.2 Taxonomy-Eligible
but not environmentally sustainable activities
(not Taxonomy-aligned activities)
OpEx of Taxonomy-eligible but not
environmentally sustainable activities (not
Taxonomy-aligned activities) (A.2)
0.00 0.00%
Total (A.1 + A.2) 0.00 0.00%
0.00% 0.00% 0.00%
B. TAXONOMY NON-ELIGIBLE ACTIVITIES 0.00 100.00%
Turnover of Taxonomy non-eligible activities (B) 0.00 100.00%
Total (A + B) 0.00 100.00%
C. Connection between
DEME's Materiality
Matrix and 8 key
Sustainability Themes
ESG APPENDIX
DEME ANNUAL REPORT 2022
CL I MAT E
AND ENERGY
E O Energy transition
Reference to Chapter 03
Segments
E O Resilient infrastructure
Reference to Chapter 03
Segments
E O Energy efficiency
Reference to Chapter 05
Sustainability – climate & energy
E R GHG emissions
Reference to Chapter 05
Sustainability – climate & energy
E R Air Pollutants
Reference to Chapter 05
Sustainability – climate & energy
NATURAL
CAPITAL
E R Biodiversity
Reference to Chapter 05
Sustainability – natural capital
WASTE AND
RESOURCE
MANAG
EMENT
E O Land Restoration
Reference to Chapter 03
Segments
E O Resource Management
Reference to Chapter 03
Segments
HEALTH AND
WELLBEING
S R Safety
Reference to Chapter 05
QHSE Performance
S R Health & Wellbeing
Reference to Chapter 05
Sustainability – health & wellbeing
DIVERSITY AND
OPPORTUNITY
S R Talent Management
Reference to Chapter 05
Sustainability –
diversity & opportunity
S R Workplace Diversity & inclusion
Reference to Chapter 05
Sustainability –
diversity & opportunity
LOCAL
COMMUNITIES
S O Local community engagement
Reference to Chapter 05
Sustainability – local communities
SUSTAINABLE
INNOVATION
G O Sustainable Innovation
Reference to Chapter 05
Sustainability –
sustainable innovation
G O Partnerships
Reference to Chapter 05
Sustainability –
sustainable innovation
ETHICAL
BUSINESS
S R Labour practices & human rights
Reference to Chapter 05
Sustainability – ethical business
G R Responsible Business Conduct
Reference to Chapter 05
Sustainability – ethical business
G R Supply Chain
Reference to Chapter 05
Sustainability – ethical business
G R Corporate & ESG Governance
Reference to Chapter 05
Sustainability – Governance
D. Management systems
Energy & Greenhouse Gas Emissions Policy
The Energy Management System is integrated into DEME’s Management System.
We evaluate the effectiveness of our approach with the following
validation and/or verification mechanisms:
NATURAL
CAPITAL
Quality, Health, Safety and Environment Policy
1. Operational solutions to manage the adverse impacts
and operation of ships and for pollution prevention
The Environmental Management System is integrated into DEME’s Management System.
Management and Engineering Plans for all relevant projects.
We evaluate our approach with the following validation and/or verification mechanisms in place:
SUSTAINABLE
INNOVATION
process. Initial approval of ideas and subsequent stage-gate approvals
are controlled or carried out by the Innovation Board.
due regard to sustainability, a Sustainability Readiness Level (SRL) system has been added
universities/research institutes, and about students and their thesis topics.
and frameworks, enabling us to pursue our ambition of continuous improvement.
CLIMATE
AND ENERGY
ESG APPENDIX
DEME ANNUAL REPORT 2022
WASTE & RESOURCE
MANAGEMENT
Quality, Health, Safety and Environment Policy
Waste & Use of Natural Resources are two of the environmental
aspects defined within the QHSE management system.
and/or verification mechanisms in place:
waste and resource management topics
HEALTH AND
WELLBEING
We ensure a structural social dialogue in the organisation addressing welfare issues such as
occupational safety, health, ergonomics, psychosocial aspects at work (e.g. stress) and the
environment. This dialogue leads to an action list which is addressed by our management.
and/or verification mechanisms in place:
DIVERSITY AND
OPPORTUNITY
practices and discrimination, harassment and disciplinary measures,
freedom of association and the right to collective bargaining)
We ensure a structural social dialogue in the organisation. This dialogue
leads to an action list which is addressed by our management.
and/or verification mechanisms in place:
ETHICAL
BUSINESS
We perform due diligence procedures to ensure a robust sanction
and anti-corruption screening of third parties.
To evaluate the effectiveness of our approach we have the following
validation and/or verification mechanisms in place:
LOCAL
COMMUNITIES
goals. We support projects that have a positive impact and improve the quality of life in the
communities where we operate. Projects must have a definable and measurable social outcome.
Requests for charitable sponsorships will only be considered from non-profit organisations.
ASSURANCE
REPORT
7. 3
DEME ANNUAL REPORT 2022
ASSURANCE
REPORT
FORWARD-LOOKING
STATEMENTS
This report may contain forward-
looking information. Forward-looking
plans, strategies, goals, future events
or intentions. The achievement of
forward-looking statements contained
in this report is subject to risks and
uncertainties. Consequently, actual results
or future events may differ materially
by such forward-looking statements.
Should known or unknown risks or
uncertainties materialize, or should our
assumptions prove inaccurate, actual
results could vary materially from
those anticipated. DEME undertakes no
obligation to publicly update or revise
any forward-looking statements.
COMPILED AND
COORDINATED BY DEME
Investor Relations and Finance Department
GRAPHIC DESIGN
www.bbc.be
PRINTING
www.deme-group.com