Annual Report Connecting Lives

Transcription

1 Aual Report 2016 Coectig Lives

2 Cotets Itroductio by CEO Royal HaskoigDHV 3 Scope ad approach of the aual report 3 Key Figures 4 Our Compay 7 Our Leadership 13 Report of the Supervisory Board 14 Report of the Executive Board 16 Achievig our objectives (liked to key idicators) 17 Cosolidated Fiacial Statemets 31 Cosolidated Balace Sheet at 31 December Cosolidated Icome Statemet Cosolidated Statemet of Comprehesive Icome Cosolidated Cash Flow Statemet Notes to the Cosolidated Fiacial Statemets 36 Compay Fiacial Statemets 61 Compay Balace Sheet at 31 December Compay Icome Statemet Notes to the Compay Fiacial Statemets 64 Other Iformatio 71 Glossary ad defiitios 79 2 Aual Report 2016 Royal HaskoigDHV

3 Itroductio It gives me pleasure to preset our 2016 Aual Report recordig our compay s progress. The theme of our report is Coectig Lives. Throughout our 135-year history we have made strog coalitios with our stakeholders ad coected our work to the reality of the daily lives of people i the commuities i which we work. A visible example is the app we developed that wars local people agaist floods. A sustaiable future for our compay has bee the guidig priciple behid our visio for the past few years. The result has focused ad stregtheed our busiess ad icreased our profitability ad success. We believe the complex challeges facig society require cooperatio ad partership. It is also a feature of the work we do for our cliets, brigig iovative ad future-proof solutios ad helpig them to grasp the opportuities these challeges brig. I Irelad, our Nereda techology is eablig a massive icrease i capacity at what is already oe of the world s largest wastewater treatmet plats. Nereda requires o chemicals, less eergy ad o icrease i the size of the site. It s a sustaiable solutio developed i collaboratio with our parters. Now parterships are drivig its worldwide adoptio, ehacig society together. As we look forward, our itetio is to accelerate growth, buildig o these strog foudatios. We are embracig techology ad digitalisatio ad creatig a culture to foster iovatio, collaboratio ad meaigful work. Our success is a measure of our people all over the world who are coected by the same passio, to work together with our cliets ad parters i projects that matter: which ehace society together. We thak our cliets, staff ad our parters ad look forward to a excitig year ahead. Erik Oostwegel CEO Royal HaskoigDHV Scope ad approach of the aual report Royal HaskoigDHV s Aual Report 2016 refers to activities across our global busiess durig the period 1 Jauary to 31 December Iformatio relates to Royal HaskoigDHV Group with highlights from each Busiess Lie ad key regios. It is based o fiacial ad admiistrative documetatio from the etire orgaisatio. The Fiacial Statemets have bee prepared i accordace with Title 9, Book2 of the Netherlads Civil Code while the sustaiability reportig is based o the Global Reportig Iitiative (GRI). Certai areas are ot applicable. APPROACH We take a itegrated approach to corporate reportig to provide isight ito how we maage our busiesses ad our performace as a employer ad busiess parter. Our report icludes fiacial ad o-fiacial iformatio ad a explaatio of how evirometal, social, ecoomic ad goverace factors iform our busiess decisios. Our results are placed withi the wider market cotext, describig social, political ad ecoomic factors which impact our fiacial performace. Iitiative (GRI) ad the latest recommedatios from the Iteratioal Itegrated Reportig Coucil. I lie with the GRI s basic reportig priciples, we aim to provide a cocise, trasparet, accurate ad balaced accout of Royal HaskoigDHV s performace. All iformatio is reviewed formally ad approved by the compay s Executive ad Supervisory Boards before publicatio. The Fiacial Statemets have bee audited by our exteral auditors, KPMG. For their audit report, please see page 72. Itegrated reportig guidelies have bee implemeted over time. We follow G4 guidelies from the Global Reportig Aual Report 2016 Royal HaskoigDHV 3

4 Key Figures ( MILLIONS, UNLESS STATED OTHERWISE) TURNOVER BY REGION % Net turover Operatig icome Added value Results 7 48 EBITA recurrig EBITA Net result Retur o average shareholders equity (%) EBITA margi, recurrig (%) Earigs per share ( ) Balace Sheet Total assets Shareholders equity Group equity Group equity as percetage of total assets (%) Fiacial Positio The Netherlads Africa, Middle East ad Idia (excl. SA) Asia Pacific South Africa Cotietal Europe (excl. NL) Americas Uited Kigdom Net workig capital Free cash flow (2.2) 57.1 Net turover Operatig icome Added value EBITA recurrig No-operatioal items EBITA margi Retur o average shareholders equity Earigs per share Net workig capital Free cash flow Amouts ivoiced to cliets (excludig VAT), excludig ivoiced i advace Net turover adjusted for chage i work i progress, icludig other operatig icome, excludig o-operatioal items Operatig icome less cost of work subcotracted ad other exteral charges EBITA excludig o-operatioal items Restructurig costs ad other oe-off items EBITA / Operatig icome Net result / Average shareholders equity Net result / Number of ordiary shares issued Curret assets less curret liabilities (excludig cash ad cash equivalets less amouts owed to credit istitutios) Cash flow from operatig ad ivestig activities OPERATING INCOME ( MILLION) Operatig icome 601 millio Shareholders equity 122 millio Average workforce 6, Aual Report 2016 Royal HaskoigDHV

5 Key Figures TURNOVER BY CLIENT GROUP % TURNOVER BY MARKET GROUP % Govermet & Society Ifrastructure & Utilities Idustry & Busiess Itermediates Idustry & Buildigs Trasport & Plaig Maritime & Aviatio Water ADDED VALUE ( MILLION) EBITA RECURRING ( MILLION) NET RESULT ( MILLION) Aual Report 2016 Royal HaskoigDHV 5

6 Key Figures ACCIDENTS & INCIDENTS Lost time ijuries (per 200,000 workable hours) : : CARBON FOOTPRINT PER EMPLOYEE Tred (to 2013) Total recorded cases frequecy (per 200,000 workable hours) : : Domai STAFF GENDER PERCENTAGE Toes CO 2 -eq per employee (head cout) Offices Travel by car Travel by air CO 2 footprit (toes CO 2 equivalet per employee) 2016: : : 3.22 CO 2 footprit i office buildigs (toes per employee) 2016: : : % -18.0% CO 2 footprit for busiess travel by car (toes per employee) 2016: : : % CO 2 footprit for busiess travel by plae (toes per employee) 2016: : : % 6 Aual Report 2016 Royal HaskoigDHV

7 Our Compay Aual Report 2016 Royal HaskoigDHV 7

8 Our Compay OUR COMPANY Royal HaskoigDHV has bee coectig people for 135 years. Together, through our expertise ad passio, we have helped cotribute to a better society ad improved people s lives with work uderpied by our sustaiable values ad goals. We are a idepedet iteratioal egieerig ad project maagemet cosultacy leadig the way i sustaiable developmet ad iovatio. Our 6,000 colleagues, workig from aroud 100 permaet offices i more tha 30 coutries o projects i some 150 coutries, are committed to our promise to ehace society together. We are drivig positive chage through iovatio ad techology, helpig cliets use resources more efficietly ad creatig solutios which coect with people to make their lives easier, happier ad safer. Coectig lives is our history ad our future. We are coected through a passio to work o projects that matter ad to egieer solutios for our cliets that go beyod the origial brief. We are coected through work that is ehacig society, cotributig to a more sustaiable future for our childre ad our childre s childre. OUR VALUES Our values form the basis of who we are ad what we wat to be. They act as our moral compass. The followig five poits, which create the acroym B R I T E, explai these values: Brightess We keep a ope mid to ideas that lead to the best solutios for our cliets. We iovate ad are eager to lead by ispiratio. Result drive We are aimig at gettig the best possible results for both our cliets ad our compay with respect to sustaiable fiacial performace. Itegrity We care about our cliets, our staff ad society as a whole. We create itegrated ad pragmatic solutios for sustaiable iteractio with a high respect for people ad their eviromet. We have zero tolerace for o-compliace with our itegrity code. Team spirit Our way of workig is pro-active, ope ad iclusive. Excellece We deliver o our promises ad strive to cotiuously improve the added value of our services. These B R I T E values uderpi our missio ad visio. Our missio outlies who we are ad what we do. We are a peopleto-people compay. I partership with our cliets, we create solutios for the sustaiable iteractio betwee people ad their eviromet. Our visio is to be a strog, global, idepedet egieerig cosultacy sustaiable ad leadig i our idustries. Together we create a ispirig eviromet that we ca be proud of ad that others will wat to joi. Our stakeholders ca expect from us solutios that are i lie with these values ad reflect our promise, Ehacig Society Together. OUR MARKETS AND GLOBALLY LEADING SERVICES We deliver our egieerig, evirometal ad project maagemet cosultacy services withi the markets described below. Withi these markets, we offer a rage of services recogised as beig at the forefrot of their field. They spearhead our commitmet to market leadership while formig part of the broader itegrated package we offer. Aviatio Royal HaskoigDHV is a leadig aviatio cosultacy providig services to airports, airlies, govermets, ivestors ad cotractors. Cosultacy assigmets rage from strategy to operatioal PPP, efficiecy ad ecoomics. We advise o air service developmet ad airport cities, ad provide master plaig, desig ad supervisio of projects. For all our projects cliets come first. Airports As a global leader i airport developmet, we are actively ivolved i improvig the passeger experiece ad reducig evirometal impact, while respodig to ecoomic ad logistical imperatives. Over the past 65 years ad more, we have worked o some 550 airports i at least 100 coutries. We re itroducig techological iovatios, from smart systems i the airport to virtual reality i the desig process. Our work helps accommodate more passegers more comfortably, while raisig returs for retailers ad operators ad reducig evirometal impacts. Buildigs Usig iovatios i ew-build techology as well as existig structures, we are itroducig sustaiable, smart ad futureproof solutios across all our buildig. Good desig beefits all; it ca aid recovery i hospitals, create healthy ad productive workig eviromets, ad it ca support commuicatio ad iovatio i offices. Our itegrated smart solutios ad our expertise are helpig cliets deal more efficietly with challeges such as resource scarcity, productivity ad the war for talet. Hospitals For patiets, a hospital is a place oe would rather ot be. For staff o the other had, it s a place to work, thrive ad lear. How do we create a huma eviromet which promotes fast recovery for patiets ad boosts staff performace? Our hospital experts put themselves i the shoes of all possible visitors ad brig their perspectives ito our desig ad cosultacy. We have a prove track record i buildigs ad techology which have led to better health yields, less staff absece through illess ad, cosequetly a stroger competitive positio for the healthcare provider. Eergy Ahead of the eergy curve, we combie techical expertise with maagemet cosultacy to provide solutios to support our cliets i the eergy trasitio towards a low carbo ecoomy. This is key to esure developmets happe quickly eough ad to support the fudametal chages required. Trasformatioal chage is eeded, ot just icremetal chage. We advocate a fudametally differet approach whereby we iclude ecoomic, social ad techical 8 Aual Report 2016 Royal HaskoigDHV

9 Our Compay perspectives to come to sustaiable ad actioable solutios towards eergy trasitio. For example we are assistig Amsterdam i its ambitious programme to become a atural gas free city by We have bee a leadig cosultacy i the reewable eergy idustry for early 30 years focusig o the growth ad diversificatio of wid, wave, curret ad tidal istallatios, hydro power plats, eergy from waste ad biofuel facilities. We are also deliverig electrical trasmissio ad distributio projects. Idustry Our work supports a trasformatio of idustry so it cotiues to brig health, prosperity, food ad goods to society while usig ad re-usig resources with miimal evirometal impact. We are helpig our cliets explore more efficiet ways to produce ad use eergy ad reduce waste. We have worked for almost all the mai players i the iteratioal cosumer goods sector, icludig food & beverage, idustrial & cosumer goods ad pharmaceuticals. Cosumer goods Compaies ivestig i ew productio ad warehousig facilities eed to meet iteratioal stadards for safety ad security at a price that allows them to remai competitive i world markets. Our experts deliver world-class idustrial facilities which brig ew efficiecies to operatios ad provide a attractive, safe workig eviromet for staff. Resource security ad coectivity are part of the big picture that future-proof our cliets ivestmet. Ifrastructure Well-fuctioig ifrastructure helps societies to thrive ad idividuals to prosper. Get the ifrastructure right ad the beefits exted far beyod the fuctioal. Smart plaig, ovel techologies ad stakeholder maagemet together with our itegrated egieerig approaches are eablig multiple goals ad wider societal beefit to be realised. Tuels ad udergroud structures Itesive use of roads by commuters ad heavy traffic causes regular traffic cogestio. I may cities, there is simply ot the space to build more roads. I these busy cities ad ports, tuels ad udergroud structures are makig a differece. We are oe of few leadig iteratioal cosultacies that specialise i soft soil tuellig. Our itegrated approach meas cliets ca access the desig, costructio, operatio ad maagemet of tuels all uder oe roof. From ladmark tuels to cost-effective desigs, our solutios coect commuities ad ehace accessibility. Maritime We are a world leader i marie ad port facilities. Our expert kowledge of marie structures ad coditios, combied with our multidiscipliary approach ad smart ways of thikig, are pushig forward boudaries i this sector. We are ivolved i high-profile maritime projects from the Middle East to Australia, Asia to South America. realities of ports ad termials ad the eed to work with the physical eviromet to create lastig solutios. We deliver cost effective, sustaiable developmets while workig with cliets to optimise existig assets to cotribute log-term to efficiet, effective ad profitable ports. Urba ad Rural Developmet Chages i society are brigig challegig problems for both urba ad rural areas which require more sophisticated plaig. By combiig disciplies throughout the plaig process, we develop robust, resiliet solutios. Our ecoomicdrive approach, itegrated expertise ad comprehesive master plaig are helpig cities ad rural areas ulock their potetial balacig ecoomic growth ad sustaiability. Smart Water Our cliets operate i complex urba eviromets ad seek smart water solutios for optimisig their water maagemet, ragig from haressig water as a resource i the water ad wastewater sector to buildig flood resiliet cities. Our solutios ad digital techology help cliets do just that. We kow that i a world that s chagig fast smart water is the aswer for smart cities. Water ad wastewater Through our i-house digital experiece ad expertise we focus o smart tailored solutios for water ad wastewater i cities. Our etwork of experts are developig, desigig ad implemetig iovative techology ad software which draws o big data to support operators i their decisio makig. The result is improved performace maagemet ad optimised processes. Flood resiliece Floods pose a threat to huma life, critical ifrastructure ad ecoomic operatios, especially i complex, high-desity, urba eviromets. I the face of a icreasigly upredictable climate the challege is to create water resiliet cities. Our flood resiliet solutios rage from adaptatio through to prevetio. These iclude early warig systems usig smart, iteractive tools as well as flood protectio schemes to protect people ad assets. From assessmet through to implemetatio, we draw o a etwork of specialists who traslate their uderstadig of the challeges ivolved ito real world solutios with a eye o commercial ad ecoomic growth. Water edge developmet ad lad reclamatio How ca people s quality of life be improved i crowded cities where lad is either ot available or very expesive? Our experts coect with the realities o the groud to create lad reclamatio projects ad water edge developmets to address a rage of problems. We brig together eco egieerig ad buildig with ature to ehace the atural eviromet, improve recreatioal opportuities, icorporate flood defeces ad address ecoomic, social ad ecological cocers. These are the wi-wi-wi solutios. Ports, shipyards ad termials Ship owers pick their port with care. Their ever-larger cotaier ships offer more efficiecy but require ports ad termials with sufficiet space ad quick turaroud i uloadig ad loadig operatios. Our maritime experts uderstad the ecoomic Aual Report 2016 Royal HaskoigDHV 9

10 Our Compay OUR STAKEHOLDERS AND HOW WE ENGAGE Collaboratios withi ad outside our orgaisatio through etworks ad parterships are cetral to the way we operate. By workig together, we are smarter, stroger, faster ad create more lastig positive impact o society. Our mai stakeholders are: Tri-Star Resources Plc, Oma Atimoy Processig Plat EIA, Oma: Royal HaskoigDHV givig the eviromet a voice! Zvi Hecker Architect Berli, ew buildig for Royal Military Police, Schiphol, the Netherlads: Royal HaskoigDHV has the capacity, kowledge ad eergy to realise the most darig desigs. Commuities Employees Parters & Associatios Overall, our cliet satisfactio is aroud the bechmark for our idustry but as cliets fid it hard to distiguish us from our competitors, there are opportuities to further improve relatioships. This will be a focus for 2017 through more proactive collaboratio, ad icreased attetio for iovatio ad parterships. Govermets, NGOs ad Kowledge Istitutes CLIENTS Suppliers Shareholders Parters ad associatios Royal HaskoigDHV is ivolved i may parterships ad professioal associatios. I 2016, we became a member of Resiliet Cities Coect a platform to accelerate actio at a local level to help achieve sustaiable ad resiliet cities. I the Netherlads we joied the Trasitio Coalitio which called upo the Dutch Govermet to draw up climate legislatio to implemet the aims of the Paris climate agreemet. Royal HaskoigDHV is member of cosultig egieers associatios icludig NLegieers i the Netherlads, Associatio for Cosultacy ad Egieerig (ACE) i the Uited Kigdom, ad Cosultig Egieers South Africa. All these atioal orgaisatios are members of the Iteratioal Federatio of Cosultig Egieers (FIDIC). Cliets Our cliets are private compaies (from major multiatioals to small ad medium-sized eterprises), govermet bodies (atioal, regioal ad local), iteratioal semi-govermetal orgaisatios, iteratioal fiace istitutes ad ot-forprofit orgaisatios. Over ad above day-to-day cotact with cliets, we coduct a cliet satisfactio survey at the ed of each project which is a vitally importat idicator of our performace o the groud. The average cliet satisfactio score durig 2016 was 8.15 (8.10 i 2015, o a scale from 1-10). It was based o a respose rate of 60% - below our ambitious target of 65%, ad comparable to the previous year. The et promoter score was +29%, a positive improvemet compared to 2015 (21%). Cliet satisfactio was also tracked by our global cliet survey coducted by idepedet research firm Katar TNS. Based o quatitative ad qualitative measuremet, cliets rated our techical kowledge ad expertise as excellet or very good. Commets icluded: DONG Eergy, Race Bak Offshore Wid Farm, Uited Kigdom: I have used may cosultats i the past but have ever bee particularly impressed by their attetio to detail or the quality of their reports. The deliverables I have received from Royal HaskoigDHV however have bee cosistetly of a extremely high stadard ad I have bee able to rely o them to support umerous licece applicatios. We frequetly work i partership with associated orgaisatios, architects ad cosultats who brig additioal expertise or capacity. Shareholders Koiklijke HaskoigDHV Groep B.V. has two shareholders: the Stichtig (Foudatio) HaskoigDHV that holds all A shares (represetig at least 75.5% of the etire issued share capital) ad the Stichtig Admiistratiekatoor (Trust Office) that holds all B shares (represetig 24.5% of the etire issued share capital at max) for which depositary receipts (certificates) have bee issued which ca be purchased by staff from operatig compaies i various coutries all over the world. Through these certificates, employees ca share i the results of Royal HaskoigDHV. The certificate holders choose the board of the Trust Office HaskoigDHV. The Board of the Foudatio cosists of five members. Oe has bee appoited by (ot out of) the Supervisory Board, the Executive Board ad the combied Works Coucils. Oe member has bee appoited by ad out of the depositary receipts holders (cadidate must meet certai qualificatios). The fifth member is the Board s chair ad is a idepedet exteral idividual appoited by the four other members. Suppliers We strive for lastig relatioships with reliable parters ad have high expectatios from our suppliers. Suppliers may expect a clear, trasparet ad hoest attitude from us ad must comply with our Busiess Priciples for our Parters ad Suppliers. 10 Aual Report 2016 Royal HaskoigDHV

11 Our Compay Govermets, NGOs ad Kowledge Istitutios Royal HaskoigDHV has bee a parter of the UN Global Compact (UNGC) sice We support the 10 UNGC priciples o huma rights, labour, eviromet ad aticorruptio (also see Itegrity o page 27) ad report our activities aually with our Commuicatio o Progress (COP). We egage with various bodies of the Dutch Govermet to support the iteratioal trade ad sustaiability ageda. Also i 2016 Royal HaskoigDHV participated i various trade missios, roud tables ad the like. For istace, whe the Idoesia Presidet, Joko Widodo, visited the Netherlads i April 2016, our CEO Erik Oostwegel was amog Dutch busiess leaders ivited to the busiess forum. This was a platform to discuss busiess opportuities ad developmets i water, maritime ad healthcare. Later i the year, we joied the Trade Missio to Idoesia headed by Dutch Prime Miister Rutte to stregthe relatioships i these areas. Durig the missio we siged two cotracts with the Idoesia port operator Pelido I for the developmet of Kuala Tajug Port i North Sumatra. We joied Dutch Director Geeral Foreig Ecoomic Relatios, Marte va de Berg, o a Trade Missio to Vietam. Durig the missio we siged a Memoradum of Uderstadig with Vietam s Civil Aviatio Authority to cooperate o aviatio ad airport developmet. We were part of the Trade Missio to Australia headed by the Dutch Miister of Foreig Trade, Liliae Ploume ad the miister of Ecoomic Affairs, Mr Hek Kamp who also chaired the roud table meetig i Sydey with the Australia govermet. We also accompaied Dutch Miister Schippers Trade Missio o Life Sciece ad Health to the Uited Arab Emirates. As kowledge developmet is key to our busiess, we cotiuously egage with kowledge istitutes o tacklig challeges such as urbaisatio, resource optimisatio, techology disruptio ad water issues. Our staff have cotacts with over 80 uiversities worldwide ad i 2016 we started a iitiative for itesifyig collaboratio with four uiversities: Delft Uiversity of Techology (Netherlads), Imperial College Lodo (Uited Kigdom), Uiversity of Cape Tow (South Africa) ad Istitute of Techology Badug (Idoesia). With the Delft Uiversity of Techology we siged a Memoradum of Uderstadig, further emphasisig our co-operatio. Royal HaskoigDHV attracts ad develops the top mids i the idustry. It is oly by buildig a collaborative etwork that we ca chael this expertise, our arseal of products ad local kowledge to stregthe our reach ito the global market. Commuities Our biggest positive impact o commuities is through our projects but we also seek to give back through idividual ad corporate iitiatives. We help to promote egieerig as a career optio for youg people through iitiatives i schools, like our sposorship of a bridge buildig competitio ru by the local brach of the South Africa Istitutio of Civil Egieerig. We cotiued to support the itroductio of the system of Chartered Egieers i the Netherlads. The first five chartered egieers i the Netherlads are all Royal HaskoigDHV staff, certified by the Dutch Royal Istitute of Egieers (KIVI). I 2016, our BrITE fud (iitiated ad fuded by our employees) made its first doatio to the Grace Home orphaage i New Delhi to pay for widows ad doors to keep the girls safe. Employees Our success is a measure of our people all over the world who are coected by the same passio, to work together with our cliets ad parters i projects that matter: that ehace society together. I 2016 may of our almost 6,000 employees workig o projects i over 150 coutries took part i our first global employee egagemet survey maaged by the idepedet research firm Katar TNS. Results idicate that, for example, 83% ejoy their daily work ad 71% are proud to work for Royal HaskoigDHV. Job satisfactio is higher tha bechmark ad a high level of trust was expressed i direct lie maagemet. Opportuities for improvemet iclude stregtheig iteral collaboratios, more ivolvemet ad efficiecy i decisio makig processes ad a stroger cliet focus. The survey results will be a topic for further discussio withi teams ad improvemet actios will be developed at compay ad team level. Value chai model Our role i the value chai is to traslate our key capital kowledge ad experiece of a global team of experts ito valuable outcomes that serve cliets, while icludig the cotext ad the eed for sustaiable developmet i the process. The value chai is illustrated i a video, o our website. > KNOWLEDGE Excel i Our Operatios Build the Best Team Missio. Visio. Strategy Itellectual Capital Supportig Assets Leadig Market Positios Huma Capital > Fiacial Performace ENHANCING SOCIETY TOGETHER > Trasport PRODUCTS & SERVICES Urba > Idustry Water CLIENTS Aual Report 2016 Royal HaskoigDHV 11

12 Read our Aual Report olie magazie Lee Descamps (Ao) INNOVATION ENHANCING SOCIETY TOGETHER MEMBERSHIPS & PARTNERSHIPS PROJECT WINS AWARDS PROJECTS COMPLETED 12 Aual Report 2016 Royal HaskoigDHV

13 Our Leadership Royal HaskoigDHV is orgaised globally across four busiess lies with market focus. Each Busiess Lie Director has a itegral resposibility ad reports to the Executive Board, which is supervised by the Supervisory Board. The busiess is supported by Corporate Groups. EXECUTIVE BOARD AND EXECUTIVE COUNCIL From left to right: Craig Hutbatch, Ato va der Sade, Cidy Meervis, Marije Hulshof, Nyke Dalstra (EB), Ake Mastebroek, Erik Oostwegel (EB) SUPERVISORY BOARD From left to right: Ja Bout, Peter Blauwhoff, Agelique Paulusse-Hoogakker, Tjallig Tiemstra, Joop va Ooste Aual Report 2016 Royal HaskoigDHV 13

14 Report of the Supervisory Board The Supervisory Board is pleased to preset the 2016 Royal HaskoigDHV Aual Report, as prepared by the Executive Board. It cotais the Fiacial Statemets ad describes the progress the compay cotiues to make with the implemetatio of its Visio 2018 strategy ad beyod, to the strategy for The compay is committed to deliver resposible ad sustaiable solutios i respect of cities, water, trasport ad idustry. We are pleased with the egagemet of the staff, which is proud to deliver projects that matter to society. The Fiacial Statemets were prepared by the Executive Board, audited by the exteral auditor KPMG ad siged followig cosultatio of the Executive Board. Give the 2016 result, we support the proposal of the Executive Board to pay a divided of 1.23 per share. We recommed that the 2016 Fiacial Statemets be adopted by the shareholders meetig ad we call o you to discharge the Executive Board from liability for its maagemet ad the Supervisory Board for its supervisio durig the fiacial year The Supervisory Board advises ad supervises the Executive Board of the compay i settig ad achievig the compay s objectives, strategy ad policies. The Supervisory Board is a separate body omiated by the shareholders ad operates fully idepedetly of the Executive Board. The Supervisory Board is guided by the iterests of the compay ad shall take relevat iterests of all the compay s stakeholders ito accout. The Supervisory Board also has due regard for corporate social resposibility issues that are relevat to the eterprise. The Supervisory Board has two committees, a Audit Committee ad a Remueratio ad Appoitmet Committee, who prepare the decisio-makig process i the full Supervisory Board. SUPERVISORY BOARD MEETINGS The full Supervisory Board coveed five times i 2016 ad two projects were visited (Schiphol Airport ad the award wiig udergroud seashore parkig garage i Katwijk). We are pleased to report that average attedace of our members was agai high at 96%. Idividual members also paid visits to braches of the compay i the Netherlads, Idoesia ad Sigapore. I additio to the formal Supervisory Board meetigs, various meetigs betwee the Supervisory Board ad the Executive Board took place. At least every moth there have bee bilateral meetigs betwee the chairs of Supervisory ad Executive boards. Members of the Supervisory Board participated i meetigs with both the shareholder foudatios ad the Dutch Works Coucil. The Supervisory Board actively advised o developmets i the Compay with regard to icreased attetio to culture ad leadership. Project results, utilisatio rates, sales, ad profitability were discussed i every meetig. Other mai items o the ageda icluded safety, compliace ad itegrity, ivestmets ad divestmets, remueratio policy ad talet developmet as well as the developmet of the strategy beyod Visio The Supervisory Board held a close watch o the trasitio process from eight to four Busiess Lies, which was implemeted as per 1 Jauary This orgaisatioal chage has made the Compay more lea ad has resulted i a improved cooperatio betwee the Busiess Lies, as well as makig the Compay more agile ad able to adapt to chage. Durig 2016 the Compay developed a strategy beyod Visio The Supervisory Board discussed ad supported the developmet of the ew strategy o several occasios durig the year with maagemet. The Supervisory Board is pleased to see cotiuous attetio to the further improvemet ad reiforcemet of project maagemet withi the Compay. This has amogst others led to Project Health Checks beig executed i all Busiess Lies. Withi the Corporate Groups a combiatio of leaer operatios ad improved support of the primary processes i the Compay have led to improved project results ad help better decisio makig. With the rapidly chagig exteral eviromet the Supervisory Board eeds to cotiue to ivest time ad effort to assess ad moitor the key busiess processes of the compay. So called deep dives i specific subjects have bee beeficial for this process. AUDIT COMMITTEE MEETINGS The Audit Committee is composed of two members: Tjallig Tiemstra (chairma) ad Ja Bout. They met o four occasios with maagemet, iteral audit ad exteral auditors. The committee also met with the exteral auditors without the presece of maagemet. The members discussed some items more ito detail with maagemet. Topics o the ageda were the Fiacial Statemets, the exteral auditor s report, cash maagemet, retur o capital employed ad fialisatio of the budget. I additio, the auditor s Audit Pla, refiacig, compliace with bak coveats, tax plaig, pesios, the fiacial impact of divestmets, risk maagemet ad developmets i ICT ad ICT security were discussed. The quarterly results ad iteral cotrols were o every meetig s ageda. The Audit Committee is pleased to otice the importat role the Iteral Audit fuctio plays withi the Compay. REMUNERATION AND APPOINTMENT COMMITTEE Curret members are Peter Blauwhoff (chairma), Joop va Ooste ad Agelique Paulusse-Hoogakker. I 2016 the committee coveed two times. There have also bee several meetigs of the members to discuss special items. The mai topics o the ageda were the fuctioig of the Executive Board, the ew maagemet model ad the self-evaluatio of the Supervisory Board itself, the EB remueratio policy icludig a remueratio bechmark ad the CFO vacacy i the Executive Board. 14 Aual Report 2016 Royal HaskoigDHV

15 Report of the Supervisory Board PROFILE AND COMPOSITION OF THE SUPERVISORY BOARD The Supervisory Board is properly costituted accordig to the Articles of Associatio ad its members possess the desired competecies i accordace with the profile of the Board. All members are idepedet as provided i best practice provisio III.2.2 of the Dutch Corporate Goverace Code. Oe of the members is a fiacial expert as provided i best practice provisio III.3.2 of the Code. The curret Board cosists of five members. A reappoitmet ad resigatio scheme has bee agreed for the comig years. Backgroud iformatio o the Board is available o our website. I lie with the reappoitmet scheme, durig the 2016 AGM Joop va Ooste was reappoited for his secod ad fial term of four years. Durig 2016, the Supervisory Board performed its self assessmet. The self assessmet was supported by a exteral firm ad was based o iterviews with the Supervisory Board as a whole ad idividual Supervisory Board members, ad with seior staff from withi the compay as well. DIVERSITY The Supervisory Board cosists of oe female ad four male members, all of whom have the Dutch atioality. The future compositio of the Supervisory Board could better reflect the fact that the Compay has a trasatioal character. The discussio o this subject will be fialised before the omiatio of a ew member of the Supervisory Board. While persoal expertise, experiece, backgroud ad skills of the members are most importat, geder diversity has prove to be a valuable asset durig discussios ad decisio makig throughout the past year. The Supervisory Board therefore strives to achieve a balaced compositio of both the Executive ad the Supervisory Board i terms of geder. As per 1 Jauary 2016 the Executive Board cosisted of three members: oe female ad two male; two are Dutch ad oe has the British atioality. With Hery Rowe steppig dow as per 1 July 2016, Jaska de Bakker resigig as per 1 October 2016 ad the appoitmet of Nyke Dalstra as per 1 October 2016, the compositio ad diversity proportio chages: as per 1 July 2016 the Executive Board cosisted of two members: oe female ad oe male, both havig the Dutch atioality. CORPORATE GOVERNANCE The Royal HaskoigDHV Corporate Goverace Report ad further iformatio cocerig the remueratio policy, the Code of Coduct, the SpeakUp Lie ad regulatios for the Executive Board, Supervisory Board, Audit Committee ad Remueratio ad Appoitmet Committee ca be foud o our website. The remueratio of the Supervisory Board ad the Executive Board is reported i the Fiacial Statemets, which is also available o our website. WORKS COUNCIL Various delegatios of the Supervisory Board met several times with the Works Coucil to discuss the geeral course of evets of the compay ad the developmets withi the compay i a ope ad costructive dialogue. The quality ad outcome of these meetigs are highly appreciated by the Supervisory Board. The represetatio of employees by the Works Coucil ad the dedicatio with which it operates is of great value for our compay. IN CLOSING Corporate Fiace Director Nyke Dalstra was appoited CFO a.i. as per 1 October which was followed by her appoitmet as CFO as per 1 December Hery Rowe, joied Royal Haskoig i 1980, member of the Executive Board of Royal Haskoig sice 2008 ad member of the Executive Board of Royal HaskoigDHV sice 2012, decided to step dow from the Executive Board as per 1 July 2016, this i view of his retiremet by mid Jaska de Bakker, Chief Fiacial Officer ad member of the Executive Board of Royal HaskoigDHV sice 2012 ad of DHV sice 2010, has accepted a role outside our compay, based overseas ad left Royal HaskoigDHV as per 1 October. The Supervisory Board wats to express its appreciatio to Hery ad Jaska for the way they cotributed to the success of Royal HaskoigDHV. Durig 2016 the maagemet model of the compay was brought i lie with the orgaisatio s wish for greater empowermet. All Busiess Lie Directors ow report to the CEO, Erik Oostwegel. The Executive Board together with the Busiess Lie Directors ad the Corporate Director HRM form the Executive Coucil. The Executive Coucil covees with the other Corporate Directors at least four times per year i the Exteded Executive Coucil to discuss o Busiess Lie overarchig topics. It meas a icreased ivolvemet ad resposibility for the Busiess Lie Directors, Corporate Directors ad as a cosequece, for the Directors of Busiess Uits too. The Supervisory Board believes that this structural chage of the maagemet model will empower our Leadership Team to collaboratively lead our compay. The Supervisory Board is positive about the future of Royal HaskoigDHV. We appreciate the 2016 achievemets ad thak all staff members for their commitmet ad loyalty. We are cofidet that with the acceleratio of the Visio 2018 strategy, the optimised orgaisatioal structure ad the roll out of the ew strategy, the Compay ca achieve a sustaiable fiacial performace ad that it will be able to stregthe its market positio i the chose coutries ad leadig services the Compay excels i. Amersfoort, the Netherlads 10 March 2017 SUPERVISORY BOARD J.A.P. va Ooste (Chairma) P.M.M. Blauwhoff J. Bout A.M. Paulusse-Hoogakker J.S.T. Tiemstra Aual Report 2016 Royal HaskoigDHV 15

16 Report of the Executive Board OUR STRATEGY We cotiue to be guided by our strategy, Visio 2018, which cosolidates our stregths to provide a soud platform for future growth. We are reducig complexity ad simplifyig our delivery model focusig o three areas to achieve sustaiable fiacial performace: Doig the right thigs: we are achievig leadig market positios i markets, geographies ad cliets Doig the thigs right: we are excellig i our operatios Havig the right team i place: we are buildig the best team of people with the right skills ad flexibility to deliver our services across the world Achieve leadig market positios We focus ad grow our busiess i areas where we are recogised by our cliets, which offer the best opportuity for growth ad where we have a good fiacial result. The global themes of urbaisatio, water, mobility, resource scarcity ad techology lik to our leadig services eablig us to brig smart, future-proof solutios to our cliets, helpig them to grasp opportuities these challeges brig. Durig 2016, we have substatially grow our busiess with multiatioal cliets, especially i cosumer goods ad idustry through strog parterships with cliets like Heieke ad Shell. Our market positio with leadig global cliets has grow ad reveues improved. I Europe, there is a tred away from sigle services to solutios icludig digital trasformatio, smart solutios, mobility ad sustaiability. Trasport is a example where itegratio i modalities cotiues to be importat but the approach of smart mobility measures, icludig self-drivig cars ad adapted ifrastructure, is acceleratig. Complex urba eviromets are seekig smart water solutios to optimise water maagemet ad for flood resiliece. Flood protectio is a growig priority for major cities from New York to Jakarta ad may more. We have a prove track record i respodig to the complexities that arise where the global themes of water ad urbaisatio meet ad cotiue to be ivolved i these multi-discipliary projects all over the world. I water techology, water compaies across Europe, the Americas ad parts of Asia are seekig to achieve efficiecies from existig ifrastructure. There is also a drive, particularly i areas facig periods of drought, to reduce losses i ed-to-ed supply. Our advaced digital moitorig techology is helpig improve operatioal excellece by reducig eergy cosumptio ad water loss, ad beefitig treatmet quality. Our idustrial cliets are tedig to move away from cocetrated global productio i favour of maufacturig sites closer to cosumers. We are well placed to support them through a local presece backed up by iteratioal expertise. I Asia ad Africa, we are also seeig demad for itegrated solutios where security of supply of water, eergy ad other resources are icluded i the brief ad lik to the global theme of resource scarcity. We play a icreasig role i the eergy trasitio, ad there is growig demad for our strategic, feasibility ad permittig capabilities for the broader reewables sector. Excellig i operatios To reduce complexity across the orgaisatio we streamlied our structure from Jauary Our Busiess Lies were reduced from eight to four ad the umber of busiess uits halved. It has reduced overhead ad bureaucracy, allowed faster decisio makig ad stregtheed leadership, while creatig a ispirig eviromet where people ca develop themselves, thrive ad excel. A focus for 2016 has bee o project excellece. We implemeted a itegrated approach to project maagemet coverig traiig, dissemiatio of kowledge ad provisio of adequate support. We formalised the selectio of project maagers ad established a Project Excellece group ad a Project Maagemet Steerig Committee. We lauched the Project Maagemet Academy i the Netherlads, Uited Kigdom ad South Africa. It provides tailored developmet opportuities for project maagers aliged to our tier structure, ad works alogside our Project Maagemet Skills Aalysis. We have implemeted a mothly health check of our most complex projects i order to raise project delivery to the highest stadards for our cliets. I 2017 the scope of these project health checks will be broadeed to all large ad medium size projects. Build the best team Durig 2016, we created a ew leadership structure ad made two ew appoitmets to the Executive Coucil, Nyke Dalstra, CFO, ad Cidy Meervis, Corporate Director Huma Resources. Cidy Meervis joied the Executive Coucil to help defie ad shape the leadership, talet ad culture of the orgaisatio. Alogside structural chage, we are ecouragig a more iclusive ad egaged approach across the whole compay. We ivolved ad will cotiue to ivolve all leadership levels as well as staff ad cliets i the developmet of our future strategy. A culture i which we drive performace ad potetial We see maagig performace as a key eabler for the culture that we wat to shape ad i 2016 made the first steps towards a moder, more flexible system. Aother key elemet i our drive for potetial is helpig teams uderstad future staff eeds through our Strategic Workforce actio Plaig (SWaP). I SWaP workshops, people are ecouraged to become more ivolved i egieerig their ow future. The iitiative is embraced by all four Busiess Lies ad we are at varyig stages of implemetatio. Leaders that ispire ad coect We are fosterig a culture of iovatio ad growth i which leaders support people to give their best. As part of our Talet & Leadership developmet, we lauched three global programs for 75 future leaders: Executive Developmet Program targetig all Directors of Busiess Uits, Busiess Lie Cotrollers ad Corporate Group Equivalets. They work together to develop our strategy at leadership level ad embed it further i the compay. Leadership Developmet Program for high potetial colleagues across Busiess Lies ad coutries with years of experiece. Accelerated Developmet Program to fast track the persoal ad professioal leadership of our youg potetials. 16 Aual Report 2016 Royal HaskoigDHV

17 Achievig our objectives Omega Reder Aual Report 2016 Royal HaskoigDHV 17

18 Achievig our objectives FINANCIAL PERFORMANCE We are pleased to report a improvemet i our results i 2016 over ad above the previous year which had beefitted from the sale of our Amersfoort office buildigs. The et result eded at 12.1 millio (2015: 11.8 millio) ad icludes the fact that we shared 8.0 millio of our profit with staff i 2016 (2015: 4.0 millio). Our operatioal result (EBITA recurrig) eded at 24.5 millio (2015: 26.1 millio). Profitability was slightly better tha last year with a margi of 4.1% (2015: 4.0%). This was supported by strog margis i the Maritime & Aviatio ad Trasport & Plaig markets. Idustry & Buildigs produced good margis while Water was hampered by low project margis. We were pleased to record sigificat growth i our Maritime ad Aviatio markets but saw limited declie i other markets. I the Netherlads, we recorded egative growth but the coutry remais by far the largest regio for our busiess. The Uited Kigdom showed a clear recovery ad grew its reveue agai after a challegig year. The effect of this mixed growth picture was to reduce overall operatig icome by -5% (additioal -4% due to exchage rate effects). Excludig subcotractors, our added value remaied equal compared to last year (-3% due to exchage rate effects). Utilisatio icreased i 2016 despite a poor start to the year. Paiful yet ecessary actios i the Uited Kigdom ad other areas proved successful i turig it aroud. However we still have to improve to achieve a log-term sustaiable level of utilisatio. We will cotiue to focus o this ad o icreasig our commercial activities. Total restructurig costs were well below last year at 2.5 millio (2015: 6.5 millio) as the focus of the busiess shifted towards wiig busiess. Laggig results of uits i Americas ad Asia resulted i impairmet of goodwill of 2.5 millio. I 2016 we cotiued the ratioalisatio of our compay. Small size operatios i Asia ad Middle East were sold to strategic local parters with healthy growth ambitios. Ufortuately we have bee uable to covert the good results ito a positive free cash flow i 2016, edig the year at millio ( 26 millio i 2015, excludig Amersfoort office sale). Workig capital maagemet is itegrated i our daily operatios resultig i more efficiet use of fudig durig the year. However, we realised a icrease i our days sales outstadig (DSO) at the ed of 2016 due to some log outstadig debtors. The DSO of 86 days at the ed of the year icreased compared to the previous year (79 days). We have also bee faced with withdrawals from provisios ad relatively high icome tax paymets (a effect of the sale of our Amersfoort office buildigs i 2015). However, our fiacial positio remais healthy. Equity ratio slightly improved to 41.8% (2015: 41.3%), we operate well withi our bak coveats ad have a et cash positio at the ed of the year. Durig 2016 we have further improved our operatioal performace which cotiues the solid progress we have made over the past three years. Workig capital maagemet requires costat attetio ad improvemet. Our compay is i strog fiacial health ad our focus is to grow the compay agai, ivestig i people, sales ad ew busiess. Nyke Dalstra, CFO. REGIONAL DEVELOPMENTS The four biggest coutries for Royal HaskoigDHV are the Netherlads, the Uited Kigdom, South Africa ad Idoesia. There follows a overview of key developmets withi these markets durig 2016 ad the implicatios ad opportuities for our busiess. The Netherlads With public fiaces beig improved ad a ecoomy that is forecast to grow by 1.7% i 2017, the Netherlads is i a better shape although it remais susceptible to global forces. Overall, we have maitaied a leadig market positio i the Netherlads through cotiued ivestmet i our people, embracig iovatio ad ew techologies, ad beig focused o our cliets ad their chagig requiremets i a dyamic world. Oe of the most profoud trasformatios for the Netherlads is the trasitio of the Dutch eergy system. Through our itegrated cosultacy ad egieerig, Royal HaskoigDHV is pavig the way i sustaiable growth ad advisig cliets o the trajectory towards eergy trasitio ad the adoptio of the circular ecoomy. Ifrastructure The govermet has committed to sped a estimated 245 billio o road ad rail ifrastructure, sewers, dams ad udergroud structures by The Dutch Buildig Ageda focuses o future-proof reewal, sustaiability of homes ad busiess premises, ad the itegratio of ICT ad data applicatios i costructio. Recostructio ad replacemet of existig ifrastructure is also importat. With a log track record i asset maagemet, we are ivestig ad collaboratig with parters to icrease sustaiability ad ehace efficiecies, usig ew materials to cut cost ad shorte time frames. The bedrock of our approach lies i the focus o iovative project maagemet ad best value procuremet where we ca maximise value for the cliet ad ehace the ivolvemet of stakeholders to esure projects success ad exceed our cliets expectatios. Smart solutios Pressure o the existig atioal road etwork calls for expasio, especially i the commercial heart of the Netherlads, the Radstad. That is why we are workig closely with the govermet i the Beter Beutte programme to develop smart ad sustaiable trasport solutios such as Flowtack. We are also ivestig i smarter road solutios as we accelerate ito the ew digital world of mobility, workig with our cliets ad parters to develop the ew ecosystem together. We have take the first steps i makig self-drivig cars a reality with the successful test of a covoy of more tha 50 semi-autoomous vehicles i the Natioal Platoo Test ad we will cotiue to be at the forefrot of these developmets. I the rail sector, the focus is o coectig the commercial heart of the Netherlads (the Radstad) to the rest of the coutry. New ifrastructure is eeded such as additioal tracks, 18 Aual Report 2016 Royal HaskoigDHV

19 Achievig our objectives bypasses ad security systems ad we see opportuities i developig iovative solutios that ca brig greater efficiecies ad sustaiability to the rail ad statios market. I aviatio, we see cotiuous growth i passeger umbers. Our airports i the Netherlads Schiphol, Eidhove ad Rotterdam-The Hague - are showig high growth percetages ad this will have a impact o existig ifrastructure ad buildigs. We foresee major ivestmets due to the eed to add capacity to all three airports. We have close relatioships with all parties ivolved ad we will cotiue to deploy our expertise to support our cliets i these developmets. Maritime ad ilad waterway trasport is a importat pillar of the Dutch ecoomy. To chart the ext growth frotier i maritime, the govermet will be ivestig i smarter ports ad itroducig digital techologies which allow for the moitorig ad predictio of performace i logistics, hydrometeo ad asset maagemet. At Royal HaskoigDHV, we have aticipated these developmets ad are broadeig our rage of services ad teamig up with strategic parters to eable our cliets to flourish i the ew digital age of maritime. We are developig ew techologies to eable smart water solutios, such as Circular Water where we recover raw materials from closed wastewater cycles. Itesive research with our parters ito the extractio, productio ad use of Nereda algiate is resultig i the world s first idustrial Nereda algiate factory. We are ivolved i the developmet of various smart buildigs. Hospital projects such as St Jasdal are focused o patiet improvemet ad quality of healthcare. Workplace projects, such as for Bookig.com, focus o providig employees with sustaiable, ispiratioal ad healthy ways of workig, resultig i higher levels of work satisfactio ad productivity. Our Shaded Dome TM cocept ad plas for Paleis Soestdijk are stellar examples of smart buildig solutios that illustrate our commitmet to iovatio ad demostrate how we are givig back to society. Uited Kigdom 2016 was a year of chage i the Uited Kigdom. Oe impact of the decisio to leave the Europea Uio (Brexit) has bee to stregthe govermet focus o exports. Our maritime busiess already operates iteratioally, ad we are lookig to icrease the export potetial of our water busiess. Brexit icreases the importace of the UK s tradig ifrastructure i particular air ad sea ports ad the coutry s eed for eergy security. These will offer opportuities for our busiess, as will icreased ivestmet i house buildig ad 300b (approximately 350b) to be spet over the ext five years o improvig atioal ifrastructure. I the maritime marketplace, we are seeig growig demad for iovative solutios to make ports more effective ad efficiet ad thus more profitable. We remai active i costructio ad developmet ad are workig with cliets o how to use their assets more efficietly ad future proof their busiess. A similar tred is uder way i the water market where our smart water techology is becomig a importat part of the solutios we offer cliets. Cotracts were siged i 2016 for five Nereda wastewater treatmet plats ad more are i the pipelie. We expect further growth as water compaies seek to create reveue streams by extractig useful products from waste. We are seeig more coectivity i decisio makig ad ivestmet requirig expertise that cuts across sectors. Our ability to respod ad maage complexity to provide developmet services i the broadest sese is where we distiguish ourselves from competitors. Techology is o the ageda of every area i which we operate. As a example, the atioal ifrastructure pla has allocated 390m (approximately 455m) to future trasport. Already, we have expertise i areas such as super cycle highways ad quiet ways ad we are brigig i additioal iovatios has bee a trasitioal year. We have strog foudatios ad are ahead of the competitio i terms of positioig, skills ad kowledge. Our success i aticipatig ew demads makes us optimistic for the future, particularly i areas such as eergy, trasport ad water. South Africa The ecoomy i South Africa is fragile ad market coditios tough. However, we are icreasig our market share albeit i a decliig market idicatig our cotiuig ability to outperform competitors. We maitai strog cliet relatioships ad were pleased to achieve Level 2 Broad-Based Black Ecoomic Empowermet status i The South Africa ecoomy faced several headwids i The sluggish global ecoomy dampeed export demad. Busiess cofidece was egatively impacted by poor ecoomic growth, threat of a loomig recessio, icreased political istability ad a tighteig of moetary policy. A ecoomic survey from Cosultig Egieers South Africa for the first half of 2016 idicated cofidece deteriorated alogside modest icreases i fee earigs. The outlook for gross fixed ivestmet is expected to fall behid GDP growth i the ext three years. I spite of these coditios, our Trasport ad Plaig Busiess Lie icreased its order book by 75% durig 2016, achieved through buildig stroger relatioships with cliets ad commuities. Activities, evets ad cofereces all provided strategic etworkig opportuities. I our Water, Idustry ad Buildigs ad Miig divisios, we itroduced a turaroud strategy focusig o iche markets. This has started to produce results. Our Water Busiess Lie refocused o water techologies, particularly Nereda ad Nereda cotroller software ad we rolled out Crystalactor i the miig idustry. I partership with WEC Projects, we are buildig the coutry s third Nereda Wastewater treatmet facility for the East Rad Water Care Compay (ERWAT) at Hartebeesfotei. Our Idustry & Buildigs Busiess Lie refocused o services to healthcare, eergy ad cosumer goods idustries. Notable wis icluded four hospital master plaig projects i the Gauteg regio. Our Miig Divisio is operatig i a idustry heavily impacted by the global ecoomic dowtur ad has refocused towards three precious metal commodity markets gold, platium ad diamods. Aual Report 2016 Royal HaskoigDHV 19

20 Achievig our objectives Idoesia Royal HaskoigDHV Idoesia celebrated its 40th aiversary i Our work rages from ew ports to maufacturig plats ad we udertake programmes i urba plaig, lad reclamatio ad water maagemet. Our portfolio of projects ad cliets across the coutry provide a strog base for future growth. I 2016 staff umbers grew, added value icreased has bee a excellet year. Amid global ucertaity, the coutry has maitaied ecoomic growth, helped by the Presidet s prudet fiscal policy. I a bid to icrease Idoesia s competitiveess, the admiistratio has icreased the ifrastructure budget sigificatly durig the first two years, aliged with its ie key programs which iclude ifrastructure acceleratio. This offers huge opportuities for Royal HaskoigDHV Idoesia. Already we are providig services for a large port extesio at the Tajug Priok port i North Jakarta ad wo a project for the Kuala Tajug Idustrial Gateway Port i North Sumatra. PROJECT HIGHLIGHTS Durig 2016, we cotiued to wi ad complete major projects which stregtheed our leadig positio withi key services ad exteded our global reputatio for iovatio. For highlights across our busiesses, please read our olie publicatio. RANKINGS & AWARDS Royal HaskoigDHV raked 50 i the Global Sourcebook published by Egieerig-News Record (ENR) i 2016, dow from 46 i We re-etered Africa s top 10 iteratioal desig firms. Market rakigs from ENR for 2016 placed us at 22 for healthcare, 15 for retail ad third i distributio/warehouse. I trasportatio we are raked sixth i airports ad 17 i marie ad port facilities. For maufacturig we are raked third i food processig ad electroic assembly. We are placed 10th i the global rakigs both for wid power ad for water treatmet ad desaliatio. I the Netherlads we are raked fourth i the top 50 egieerig compaies compiled by Techisch Weekblad, which also placed us at 20 i the top 25 research ad developmet compaies. We are raked 18th i the UK s New Civil Egieer listigs. Awards cofirm our ability to lead i our idustry ad emphasise the success of our solutios to beefit society. Full details are o our website. EPS, our Nereda parter i Irelad: Wier Gree Techology Award for itroducig Nereda techology to the Irish wastewater market. Katwijk udergroud parkig garage: Wier Germa Desig Award 2017; the Best Dutch Buildig of the Year 2016 from the Royal Istitute of Dutch Architects; the FIABCI Prix d Excellece Award 2016; the World Architecture News Ifrastructure Award Littlehave promeade ad sea wall wo its 10th award: Health ad Safety Medal i the Istitute of Civil Egieers Publishig Awards Shaded Dome TM : Wier Veruftelig Public Prize 2016 for the most iovative project. Ashley Drive Break Pressure Tak: Commeded Techical Excellece SAICE/SAFCEC Natioal Awards; Wier Excellece i Civil Egieerig SAICE Regioal Awards KwaZulu Natal; Wier Techical Excellece IMESA Awards i Water ad Wastewater category. Hlambayathi Developmet Project: Commeded i the Commuity Based Projects category SAICE/SAFCEC Natioal Awards; Wier Techical Excellece SAICE Regioal Awards KwaZulu Natal. Igula Pumped Storage Scheme: Wier i the Water Egieerig Projects category SAICE/ SAFCEC Natioal Awards; Wier CESA Ao Egieerig Excellece Awards. Natioal DST/Mitek NIC Clearoom Facility: Wier CESA Ao Egieerig Excellece Awards. Codale 33/6.6 kv Substatio for Mogale: Commeded CESA Ao Egieerig Excellece Awards. Elgi Flood Alleviatio Scheme: Wier Saltire Society Civil Egieerig Award. UK Water team with parters: Wier Iovatio Award, Defra Flood Risk Maagemet ad Modellig Competitio. OUR PEOPLE Durig 2016, 501 people joied the compay ad 1,057 left. We started the year with 6,491 employees ad at the ed of 2016 had 5,902 staff across the world icludig our flexible workforce ad o-cosolidated miorities. Total Staff ultimo 2015 Starters i 2016 Leavers i 2016 Total Staff ultimo 2016 Employees 5, ,057 5,166 No-cosolidated miorities maaged by Royal HaskoigDHV Group Subtotal 5, ,114 5,298 Flexible workforce Total 6,491 5,902 We are a trasatioal compay ad believe this should be reflected i the diversity of our people, particularly i leaders. Curretly we are focused o geder diversity but ited to implemet a broader iterpretatio i future. I 2016 geder diversity i leaders was realised with 50% male-female balace. I middle maagemet oly 17% was female. We held a Diversity Luch i May coectig female ad male leaders i a ispirig dialogue o how we ca drive more diversity i our compay. It starts with leaders role modellig ad settig a example which ivites others to follow. I Jue, Jaska de Bakker was amed Dutch CFO of the year. For the third successive year, Berte Simos, Busiess Uit Director Idustry & Buildigs Asia Pacific, was raked amog the top 100 youg ad successful Dutch maagers compiled by Maagemet Team magazie. 20 Aual Report 2016 Royal HaskoigDHV

21 Achievig our objectives Leadig professioals The visibility of our kowledge ad expertise across areas such as air quality, geotechics, ad ature drive egieerig is spearheaded by 53 leadig professioals. They lead kowledge developmet ad iovatio, establish our expertise i the market ad ispire a chai of iteral experts. I 2016 our leadig professioals joied a evaluatio ad desig process to determie how we ca focus kowledge developmet ad raise the profile of these experts iterally ad exterally. Youg professioals I 2016 our youg colleagues iitiated activities to expad their kowledge, etwork ad egagemet. A group of youg professioals withi Idustry & Buildigs were give a guided carte blache to attract 12 taleted youg people from aroud the world who ca help us live up to our iteratioal ambitios. The team started their ow recruitmet campaig ad received 220 applicatios. Our 10th Iteratioal Cross Sellig Day orgaised by YougRHDHV attracted 210 colleagues from 14 coutries who met to develop solutios for city challeges. I September 2016, 28 youg professioals from 12 coutries visited Jakarta o a study trip to share kowledge, etwork ad take part i team buildig activities with youg professioals from Idoesia. HEALTH & SAFETY We are a people-to-people compay. Therefore we commit to the highest stadards of health & safety. Our health & safety visio ad policies are part of our Maagemet System ad implemeted i processes ad procedures. We cotiue to be proactive i providig a safe workig culture for our staff. The eed to safeguard our employees workig overseas o projects remais a priority. We follow our staff via Travel Tracker which provides us the ability to view, locate ad cotact employees aywhere ad at ay time through their mobile devices. Health ad safety awareess meetigs for liemaagemet have bee coducted i The Netherlads, Uited Kigdom ad South Africa. With the global campaig Safety who cares? we have icreased the awareess withi our staff all over the world. A key risk is the persoal safety of staff travellig to coutries ad areas that have high or extreme travel risk. Travel to extreme risk coutries is ot allowed. Travel to high-risk coutries is oly allowed after approval of a detailed Travel Security Pla by the Executive Board ad Busiess Lie Director. Our objective for 2016 was zero fatalities ad 10% decrease i accidets. Our olie icidet ad accidet report form esures staff ca easily report a accidet or icidet. Durig the year 134 reports were submitted ad o fatal accidets occurred amog our staff. Accidets ivolvig staff members were 92, a reductio of 20% compared to I total four accidets (that resulted i at least oe day off) were reported i 2016 ad 88 other reportable cases. The frequecy of lost time ijuries (per 200,000 workable hours) was 0.09 (dow from 0.11 i 2015) ad the total recordable case frequecy was 2.16 (0.42 less tha 2015). We have a global maagemet system to esure all staff follow commo workig practices. It is based o globally accepted stadards (for ISO 9001:2015, ISO 14001:2015 ad OHSAS 18001:2007) ad also covers itegrity, busiess cotiuity, iformatio security ad our busiess priciples. As first egieerig ad cosultacy compay i the Netherlads we were successful audited agaist the ew ISO 9001:2015 ad ISO 14001:2015. Audits of these stadards were orgaised by the Corporate Group QHSE ad successful exteral audits coducted i 2016 by DNV GL i the followig coutries: the Netherlads, Uited Kigdom, South Africa, Australia, UAE, Philippies, Vietam, Thailad, Polad, Czech Republic, Idoesia ad Idia. I total DNV-GL has bee audited for 40 days all over the world. All certificates, ISO 9001:2015 (quality), ISO 14001:2015 (eviromet) ad OHSAS 18001:2004 (health ad safety) are reewed ad valid util September CONTINUED AND INCREASED FOCUS ON INFORMATION AND CYBER SECURITY Our Iformatio Security Policy is aliged with the priciples defied by iteratioally accepted stadards for iformatio security. We revise our actio pla aually to make sure we are able to meet the icreasig demad to secure our data ad our cliet s data. We are executig our actio pla to implemet ad embed this security policy i our compay. We cotiued to take the issue of protectig our data (privacy) very seriously, cosiderig we wat to work i a world of ope commuicatio via the Iteret, mobile workig ad the use of persoal devices. Therefore, we are cotiuously improvig ad adaptig our security measures to keep up with ew data privacy regulatios, ad to icrease cyber security. We also keep our IT eviromet ad operatios up-to-date ad have a awareess program i place to esure employees are aware of the importace of protectig data. Cliets icreasigly iclude iformatio security requiremets ad we cotiue to be able to meet cliets eeds by selectig the optimal mix of solutios. ICT COSTS Subsequet to our merger i 2012, we have bee able to realise cosiderable savigs o ICT expediture i the regio of 4 millio o a yearly basis. We are ot oly more efficiet i our use of ICT but the umber of ICT icidets has also reduced sigificatly. Our ICT assets are small (laptops, ABW, etwork hardware), sice we do ot ow software ad most activities are outsourced. Cosiderig the bechmark, our ICT costs are ot high. We aticipate ICT costs could icrease i the future as a result of further digitalisatio. RISK & SAFETY MANAGEMENT Corporate risks Each year we have sigificat losses o projects i various jurisdictios which affect added value. These occur mostly through a iability to iterpret cliet demads sufficietly or a failure to appreciate local practices. To prevet such project losses i future, the Executive Board implemeted a strategy focused o coutries ad leadig services where Aual Report 2016 Royal HaskoigDHV 21

22 Achievig our objectives Royal HaskoigDHV has more thorough busiess experiece ad eve better uderstads the busiess culture. Further effort is required o our delivery model ad will be icluded i 2017 plas. To iitiate projects i coutries with high busiess or other risks (like staff safety) the approval of the Busiess Lie Director, Executive Board member or Risk Assessmet Board is eeded. I additio, best practices are shared with project maagers to improve cultural awareess. The core priciples of UN Global Compact i the areas of huma rights, labour, eviromet ad itegrity are icorporated i our Global Busiess Priciples, Global Code of Coduct ad Itegrity Maagemet System. There is a key risk that Royal HaskoigDHV has excess capacity ad does ot respod quickly eough to chages i the market. Iformatio o utilisatio rates ad pipelie/ order portfolio are frequetly reviewed ad capacity balaced with market demads. As a cosequece we decreased staff umbers durig 2016 by about 10%. The Executive Board ad Executive Coucil are supportig a process to icrease success i wiig large projects ad secure the order portfolio. Other programmes review ad cotrol our expeses ad make clear choices o portfolios ad ivestmets which will cotiue improvig our positio i the market. Disruptive techologies ad other treds may have a sigificat impact o our kowledge itesive busiess. Royal HaskoigDHV is moitorig these developmets ad is actively egagig with parters to focus o iovatio ad digitalisatio. Our Maagemet System was rolled out i 2015 ad processes are beig reviewed to reduce red tape, empower staff ad avoid uecessary cetralised approval processes. Nyke Dalstra, CFO said: I wat to achieve a better balace betwee maagemet by systems ad rules to oe where we act from a commo uderstadig o why ad how we operate withi our compay. This requires a great deal of dialogue as well as adaptatio ad commitmet from everyoe. A importat risk is that isufficiet fuds are available to realise the ambitios of the compay. We itroduced measures to further improve the workig capital positio, creatig awareess withi our Busiess Lies. Key Performace Idicators help maitai a positive cash positio for projects as better paymet coditios are egotiated. Operatioal risks Projects Project risk maagemet procedures are itegrated i our Maagemet System to esure cosistecy throughout the orgaisatio. Cotrols iclude the authorisatio matrix defiig who is allowed to approve commitmets ad trasactios. Project proposals with the highest iheret risk for the compay are reviewed by the Risk Assessmet Board (cosistig of the Executive Board, Corporate Director Legal ad Risk Maagers). Each prequalificatio ad proposal udergoes a stadardised risk assessmet. Those with higher iheret risks are aalysed by our Risk Maagers advised by Cotrollig, Legal Cousel, Tax ad Treasury. Depedig o the outcome of this assessmet the authority to approve such risks is defied i our risk ad approval matrix. The project maager documets the result i a Project Risk Log which is updated throughout the project. A periodic project review is prepared by the project maager ad discussed with lie maagemet ad Fiace. The project health check for larger projects was implemeted i 2016 ad will be followed for medium sized projects i I this way we esure risks are idetified, sufficietly mitigated ad reflected correctly i our accoutig systems. The executio result of large projects improved i 2016 ad looks eve more promisig i Liabilities Our liabilities are defied withi each cotract. May of these will fall withi our stadard coditios for what we cosider acceptable risk but, if coditios do ot comply, additioal approvals are required. Legal cousel reviews ad provides recommedatios to limit liability whe possible. I additio we are covered to a certai level by Professioal Idemity Isuraces. Liquidity Two mai cotrols help to esure sufficiet fudig is available for our operatios: cotrol over our workig capital (maily work i progress positios ad debtors) ad securig our bak facilities. Before submittig a proposal we assess the cliet s ability to settle our ivoices over the duratio of the project ad moitor our credit risk cotiuously durig project executio. I additio, for each proposal a cash flow forecast is prepared ad we aim to egotiate a positive cumulative cash positio durig the project. With our baks we have agreed facilities where loa coveats are applicable. Our Corporate Treasury moitors that these loa coveats are met. I liquidity we have more headroom tha our target. Currecy Currecy fluctuatios i commoly traded currecies like USD ad GBP ad i less traded currecies represet a risk o part of our turover. Our treasury policy aims to cover the currecy risk as much as possible durig executio of projects. Our Corporate Treasury moitors ad advises o foreig currecy exposures ad the use of hedge istrumets. Guaratees A umber of cliets require us to issue corporate guaratees for the executio of a project. It is our policy to limit the issue of these guaratees. For this reaso, we maage our balace sheets to esure solvecy of our compaies is sufficiet to operate idepedetly i the market. Royal HaskoigDHV has striget procedures to review ad approve bak guaratees ad bods (like advace paymet guaratees ad performace bods) before they are issued. Pesios I priciple, Royal HaskoigDHV operates pesio plas uder defied cotributio pesio schemes. However, at Royal HaskoigDHV UK Limited there is a defied beefit scheme that was closed for ew etries ad to future accrual i At this time all remaiig active members became deferred members. The Group does ot ad will ot provide ay guaratees to the UK defied beefit pesio fud. The defied 22 Aual Report 2016 Royal HaskoigDHV

23 Achievig our objectives beefit scheme deficit uder Dutch GAAP as at 31 December 2016 is 25.8 millio (2015: 18.9 millio) with a associated deferred tax asset of 4.4 millio. QUALITY MANAGEMENT We have a global itegrated maagemet system to esure all staff follow commo workig practices. It is based o globally accepted stadards (for ISO 9001, ISO ad OHSAS 18001) ad also covers itegrity, busiess cotiuity, iformatio security ad our busiess priciples. We were the first egieerig ad cosultacy compay i the Netherlads to be successfully audited agaist the ew ISO 9001:2015 ad ISO 14001:2015. Audits of these stadards were orgaised by the Corporate Group QHSE ad successful exteral audits coducted i 2016 over a total of 40 days by DNV GL i the followig coutries: the Netherlads, Uited Kigdom, South Africa, Australia, Uited Arab Emirates, Philippies, Vietam, Thailad, Polad, Czech Republic, Idoesia ad Idia. All certificates, ISO 9001:2015 (quality), ISO 14001:2015 (eviromet) ad OHSAS 18001:2004 (health ad safety) were reewed ad are valid util September SUSTAINABLE MANAGEMENT Our relevace i today s world is captured i our promise Ehacig Society Together. We have fully itegrated corporate resposibility ito our activities, led by seior maagemet from strategy to delivery. We walk the talk by icludig these aspects i our projects as well as our ow operatios. Our biggest potetial to cotribute smart sustaiable solutios to the challeges faced by society is through our projects ad iovatios. We also seek to lead by example through our ow operatios. Our corporate resposibility approach Corporate resposibility fits with our itrisic values, professioal drive ad idepedet role. It is part of our strategy ad stregtheed by our compay s employee owership. I summary, corporate resposibility ivolves buildig our compay with the followig qualities ad ambitios. Our visio o sustaiability Key to our visio is the promise of Ehacig Society Together. Our ambitio is to achieve fact-based ad recogised leadership i sustaiable developmet ad iovatio i our markets. This is where we have the largest impact, where we ca apply our expertise to ifluece decisio makig, ad make a differece for sustaiable developmet i our value chai. We achieve this by applyig our kowledge ad experiece i cliet assigmets to address the cliet s eeds today ad i the future. To walk-the-talk ad embed Ehacig Society Together i our daily practice, we ask 4 Questios i every project to keep our focus o sustaiable growth: 1. Does the output meet the requiremets of most stakeholders ivolved? 2. Does the output serve added value for the cliet ad society as a whole? 3. Is the result lastig, thus is it future proof? 4. Ca we meet the cliet s demad while miimisig the use of atural resources ad eergy? By askig these four simple questios, we go beyod the origial brief ad ecourage our cliets to joi us i idetifyig how we ca do thigs better ad more sustaiably, for their beefit ad for society. Erik Oostwegel: I see it as our role to keep iovatig ad brigig future-proof solutios to our cliets, helpig them to grasp the opportuities these challeges brig. By doig so, we cotribute to society. We do that by goig beyod the origial brief by askig the 4 Questios. We are usig them i hudreds of our projects. Our visio icorporates the Sustaiable Developmet Goals which may of our customers ad stakeholders are icorporatig ito their busiess coduct. We are also guided by agreemets reached at the Paris Climate Chage Coferece, ad joied 39 compaies to call o the Dutch govermet to draw up a Climate Act to meet the objectives of the agreemet. Takig a wider perspective provides us with the ispiratio to be ambitious ad iovative i creatig a positive impact i collaboratio with our iteral ad exteral stakeholders. Workig with passio to Ehace Society Together Takig professioal leadership i sustaiability ad iovatio i our projects Egagig i a cotiuous dialogue with our stakeholders Maitaiig itegrity as our highest value Collaboratig with our parters ad sharig our best practices ad isights Applyig best practice i our daily operatios ad reducig our carbo footprit Givig back to local commuities with our school programme ad Brite Fud Sustaiable Developmet Goals The Uited Natios lauched the ew Sustaiable Developmet Goals (SDGs) i Compaies are requested to act o the 17 SDGs, ad cliets more ofte explicitly ask us about our cotributio. The overview shows how the SDGs relate to aspects of our work. Our o-goig projects, the 17 SDGs, global challeges, ad the 4 Questios which we ask i every project to keep our focus o sustaiable growth to Ehace Society Together are all iterrelated. Aual Report 2016 Royal HaskoigDHV 23

24 Achievig our objectives Sustaiable Developmet Goals GOAL 1 Ed poverty i all its forms everywhere GOAL 2 Ed huger, achieve food security ad improved utritio ad promote sustaiable agriculture GOAL 3 Esure healthy lives ad promote wellbeig for all at all ages GOAL 4 Esure iclusive ad equitable quality educatio ad promote lifelog learig opportuities for all GOAL 5 Achieve geder equality ad empower all wome ad girls GOAL 6 Esure availability ad sustaiable maagemet of water ad saitatio for all Royal HaskoigDHV This goal is mostly addressed by our work i developig coutries, for example our projects for commuities ad regios to support security, ecoomic developmet (roads, saitatio, drikig water, lad maagemet etc.) Directly or idirectly, this is a factor i our projects o water ad lad maagemet, river maagemet ad food productio It is icluded i our visio o global challeges (water ad urba) Mostly this is a factor i our work o clea drikig water, saitatio, medical cetres, hospitals, R&D facilities ad schools It is icluded i our visio o global challeges It forms part of our iteral policies (health ad safety) This is a factor i our iteral policies o diversity ad persoal developmet of staff ad the focus of corporate resposibility through our exteral givig back efforts providig educatio to those who eed it (for example our Saturday Schools programme i South Africa) Icluded i our compay s diversity policy, our givig back activities (for example take a girl to work) ad i our aim for iclusive stakeholder egagemet i projects This is the focus of may of our water ad saitatio projects ad icluded i our visio o global challeges (mostly urba ad water) GOAL 7 Esure access to affordable, reliable, sustaiable ad moder eergy for all Addressed i our eergy projects Icluded i our visio o global challeges GOAL 8 Promote sustaied, iclusive ad sustaiable ecoomic growth, full ad productive employmet ad decet work for all GOAL 9 Build resiliet ifrastructure, promote iclusive ad sustaiable idustrialisatio ad foster iovatio GOAL 10 Reduce iequality withi ad amog coutries As a busiess, we iclude this i our Global Code of Busiess Priciples It is icluded i our visio o global challeges This is a factor i our ifrastructure ad idustrial developmet projects Also icluded i our visio o global challeges (trasport, idustry) Our support to public ad private cliets to develop the local ecoomy assists this goal GOAL 11 Make cities ad huma settlemets iclusive, safe, resiliet ad sustaiable This is at the heart of a umber of our urba projects It is icluded i our visio o global challeges (urba) GOAL 12 Esure sustaiable cosumptio ad productio patters GOAL 13 Take urget actio to combat climate chage ad its impacts GOAL 14 Coserve ad sustaiably use the oceas, seas ad marie resources for sustaiable developmet GOAL 15 Protect, restore ad promote sustaiable use of terrestrial ecosystems, sustaiably maage forests, combat desertificatio, ad halt ad reverse lad degradatio ad halt biodiversity loss GOAL 16 Promote peaceful ad iclusive societies for sustaiable developmet, provide access to justice for all ad build effective, accoutable ad iclusive istitutios at all levels GOAL 17 Stregthe the meas of implemetatio ad revitalise the Global Partership for Sustaiable Developmet This is a focus for of some of our idustry projects (for example cleaer, circular, biobased, reewable) Also icluded i our visio o global challeges (mostly idustry) This is cetral to our climate mitigatio ad adaptatio projects Icluded i our visio o global challeges, 4 Questios Icluded i our operatios (CO 2 -footprit reductio) It is icluded i marie related projects Icluded i our visio o global challeges (mostly water ad idustry) The subject of ecosystem projects Icluded i our visio o global challeges (mostly water) This is fudametal to our Global Code of Busiess Priciples We cotribute through global challeges ad our memberships (e.g. UN Global Compact) 24 Aual Report 2016 Royal HaskoigDHV

25 Achievig our objectives Materiality Durig 2016 we reviewed the materiality assessmet udertake i 2014 with referece to existig materials, icludig 2016 cliet ad employee surveys ad media sca, ad questios to key idividuals i the orgaisatio. I additio, we reflected o i-depth dialogues about specific issues with our cliets ad parters cocerig projects ad proposals with sigificat societal attetio or impact. The results idicated that the origial topics idetified as most material to our busiess ad stakeholders had ot chaged i priority ad fell withi the followig areas: Ecoomic/fiacial performace Itegrity ad ethical performace Quality ad sustaiability i our products ad services Employability Health ad safety I additio to these material topics, we also address two topics that are relevat to us i support of our missio, visio ad values: walk the talk i our operatios, ad commuity developmet. However, i additio the followig topics were ewly idetified as high priority: Public policy i recogitio of the compay s depedece o regulatory structures ad o govermet ivestmet decisios i areas icludig eergy ad ifrastructure; Attractig ad developig ew talet ad capacity buildig which are both importat for our ew strategy; Diversity ad equal opportuity which are importat to Royal HaskoigDHV as a iclusive, trasitioal orgaisatio ad are icluded i the Global Code of Busiess Priciples; Procuremet practices due to our accoutability for ati-corruptio i the supply chai re OECD ad ICC guidelies. Coected to this topic Supplier evirometal assessmet, Supplier assessmet for labour practices ad Supplier huma rights assessmet have bee raised from low to medium priority; Huma rights grievace mechaisms ad forced ad compulsory labour due to our commitmet to the Global Code of Busiess Priciples ad i lie with our ETHIC certificatio. I additio we apply the requiremets of the UK Moder Slavery Act 2016 across all our operatios worldwide; Customer privacy strict EU legislatio is comig ito force i Withi QHSE themes, sigificace of evirometal compliace has bee raised as it is fudametal to our values while also beig a miimum requiremet of doig busiess. Iteral huma rights assessmet ad Ati-competitive behaviour have bee raised from low to medium priority. We will keep security practices uder review durig 2017 i the light of icreased cyber security threats ad our digital strategy. Peer compariso I parallel with our materiality assessmet, we also reviewed the CR performace of 10 peers i egieerig cosultacy ad B2B services (desk research). Makig this explicit ad measurable, ad takig a outside-i approach to address future challeges is oly see from a few. Our work o implemetig the 4 Questios ad takig global challeges as the cotext for our work are proof poits of this approach. I this respect, we regard Royal HaskoigDHV as oe of the frotlie explorers. We cocluded that these peers are icreasigly embracig CR reportig, with most detailed reportig doe by US-based firms. Itegrity is a key factor globally, ad UN Global Compact is a commoly used stadard. Most peers also report their carbo footprit. Some are clearly also makig a effort to create more positive impact dowstream, by providig sustaiability services ad beig pro-active. I the Netherlads, the Dutch Miistry of Ecoomic Affairs evaluates the trasparecy of CR reports ad itegrated aual reports o the cotet ad quality of corporate social resposibility i the Trasparecy Bechmark (TB). Participats acquire kowledge of the geerally accepted criteria for corporate social resposibility reportig, obtai isight ito possible improvemets ad are able to compare their ow score with other compaies iside ad outside their ow idustry. Compared to our peers i 2016, the Royal HaskoigDHV 2015 report was agai the highest rakig egieerig compay i the Trasparecy Bechmark (raked #89). This was the third cosecutive year that our aual report has bee bechmarked. Reportig, stadards ad treds Our visio o reportig is to give a trasparet ad represetative overview of our activities, i lie with best practices i the market ad our type of compay a professioal services cosultacy. Through reportig we aim to reach cliets, employees ad parters to egage with our ambitios ad to give feedback for improvemet. For 2016, the aual report of Royal HaskoigDHV icludes the CR report. I additio, a digital versio is available with key messages ad highlights. We chose ot to produce prited versios i 2016 for reasos of sustaiability ad to reduce our carbo footprit. Importat refereces for this report are the ambitios, priorities ad priciples that we edorse ad apply. These are related to UN Global Compact, ETHIC Itelligece, WBCSD, ad the OECD (Guidelie for Multiatioal Eterprises). The Aual Report 2016 is ispired by the IR Framework of the Iteratioal Itegrated Reportig Coucil (IIRC). Our track record icludes Global CR-reportig sice 2006, based o the iteratioal GRI framework. Various forms of CR-reportig have bee applied sice. This Corporate Resposibility Statemet adds further backgroud ad detail to comply with several iteratioal stadards ad guidelies, icludig the guidelies of the Global Reportig Iitiative (GRI) G4. We cotiuously follow exteral treds to determie issues most relevat for our compay ad those where we ca make a positive cotributio to society at large. For example, we are workig with a coalitio of busiesses to advise govermets ad o makig real steps towards a circular ecoomy. Challeges like these are too large to be approached by sigle orgaisatios ad with a sigle approach. We also provide cosultig to compaies committed to decrease CO 2 emissios, ad distiguish ourselves by combiig a clear cosultig visio with implemetatio ito daily practice. This gives us credibility ad deep kowledge of the pitfalls to be avoided. Aual Report 2016 Royal HaskoigDHV 25

26 Achievig our objectives Our decisio to refrai from a full exteral assurace is that most of the o-fiacial impacts of our compay are related to our projects ad services. We value audits from istitutes like SGS, DNV GL o quality, health ad safety, evirometal ad social impact ad ethical behaviour. We have ot yet foud a feasible ad valuable quatifiable method to measure this impact, or do we seek oe at this stage. With our expertise i evirometal ad social impact assessmet ad moitorig, we are very much aware of the limitatios ad costs of a global moitorig system for such a wide variety of projects ad impacts. We are coviced that best project results derive from staff motivatio, kowledge sharig ad developmet, sharig of best practices ad lessos leart, ad a shared sese of urgecy amog colleagues ad cliets. Reportig process This statemet ad the aual report cotet is based o reported iformatio from Corporate Groups, Busiess Lies, coutries ad specific fuctios, durig ad at the ed of Iformatio is collected through oe aual compaywide questioaire, ad cotributios have bee reviewed ad approved by the resposible officers (Corporate Directors, Busiess Directors ad Executive Board). Progress is partly measured with key performace idicators, ad partly described qualitatively. As the Netherlads, Uited Kigdom, South Africa ad Idoesia are the top four coutries i turover, they are give more emphasis i the report. Exteral frameworks Through this report, we provide trasparecy i as much detail as possible. We volutarily participate i exteral commuicatios, audits ad verificatios o several topics. Sice 2008, we have edorsed ad supported the UN Global Compact (UNGC). The core priciples of UNGC i the areas of huma rights, labour, eviromet ad itegrity are icorporated i our Global Busiess Priciples, Global Code of Coduct ad Itegrity Maagemet System. Our maagemet systems are certified ad subject to exteral audits globally. (For more iformatio see our website). Data completeess ad comparability The quatified iformatio has bee compiled with a team of maagers worldwide, ad reviewed by iteral experts locally ad cetrally. A list of defiitios (Glossary) is icluded at the ed of the report. CR goverace From Jauary , resposibility for CR was fully itegrated ito our activities, led by seior maagemet from strategy to delivery. CEO Erik Oostwegel spearheads our CR commitmet ad discusses strategic relevace with the Supervisory Board. We walk the talk by icludig these aspects i our projects as well as our ow operatios. Busiess Lie Directors ad Corporate Group Directors all have resposibility to icorporate CR ito their activities supported by sustaiability maagers i the busiess. Next to that we have created a etwork of iteral ambassadors who help to create awareess amog our employees. Our approach is icreasigly framed aroud a busiess questio: how do we accelerate growth withi a climate i which all stakeholders become wiers? I addressig this questio, we also tackle the importat social ad evirometal questios i the way we do busiess. We will get it right whe we o loger have to talk about sustaiability. It will simply be the way busiess is doe, Erik Oostwegel, CEO. The CR policy, CR Charter, ad key ambitios for the developmet of the compay were defied by the Executive Board at the begiig of 2013 ad are evaluated aually. The ambitios have bee traslated by the busiesses ad by the corporate groups to address their specific cotributio. For local egagemet, Regioal Maagemet Boards ad Residet Directors take resposibility for a local sustaiability ageda which is also based o the CR Charter. Our Carbo Footprit Our ambitio is to cotiuously improve the sustaiability of our offices (icludig the reductio of CO 2 ). Oe of the iitiatives to reduce our CO 2 footprit is exchagig hybrid ad fossil fuel leased cars from maufacturers such as Volvo, Toyota, Mercedes, Volkswage, Peugeot ad Lexus for 26 fully electric BMW i3 vehicles. The pilot will provide a practical test of what it is like to drive 100% electrically. I additio, it will assess the existig atioal etwork of chargig statios how they operate ad whether the cars drivig rage is sufficiet i practice. This will eable the compay to formulate a strategy to covert its fleet of over 625 leased cars i the Netherlads to fully electric cars from I September 2016 our 45-year-old head office i Amersfoort became the oldest office buildig i the Netherlads to be awarded a Excellet sustaiability certificate from BREEAM- NL for existig buildigs. The Excellet score recogises the fact that iterally we apply sustaiability across the performace of the buildig assets ad operatios ad ito the sustaiable maagemet of activities. The certificatio also demostrates that sustaiable reovatio of a buildig datig from 1971 is possible. Royal HaskoigDHV is graded o Level 5 (highest level) of the CO 2 Performace Ladder, a Dutch certificatio scheme that rates the efforts made by a compay or orgaisatio to reduce their carbo footprit. The total carbo footprit of our offices decreased by 9.7% i 2016, resultig from a move to reewable electricity ad more effective use of space. The carbo footprit data show the impact of busiess travel by car has icreased by almost 3% per employee compared to 2013 ad by 20% for air travel. These icreases are largely due to a reductio i staff members. The carbo footprit is calculated per employee so because the percetage reductio i staff umbers is greater tha the percetage reductio i emissios, we record icreased CO 2 emissio per employee. I absolute umbers we achieved a reductio i our footprit of 11.3% compared to Aual Report 2016 Royal HaskoigDHV

27 Achievig our objectives How we make decisios Our decisio-makig processes exist to esure compay busiess is plaed ad moitored i lie with our missio, visio, strategy ad QHSE policy. We also use the Top Improvemet Pla (TIP) to describe ad moitor actios which, i terms of cotiuous improvemet, are to be give the highest priority for the year. These are prepared uder the resposibility of the Executive Board ad the applicable director i the Executive Coucil. The TIPs reflect a cascaded approach to cotiuous improvemet with all plas aliged to commo goals defied i the Corporate TIP. Missio & Visio VISION DOCUMENT QHSE Policy Busiess Lie aual pla Plaig Regio Plas Product Group Plas Market Group Plas Corporate TIP Fiacial Budgets Aual Plas BLs & CGs BUs Busiess Reviews Actios Actios TIPs Fiacial Budgets Aual Corporate QHSE Maagemet Review BL/CG QHSE Quarterly Reports Itegrity As a idustry leader, we go beyod simply obeyig the law: we embrace the culture of itegrity ad uphold busiess itegrity wherever we operate. We have zero tolerace for corruptio ad fraud. Our itegrity policy is embedded throughout the compay ad was idepedetly audited i We were re-awarded the prestigious ETHIC Itelligece Ati-Corruptio Certificate which we have held sice We are a frotruer amog egieerig cosultacies i our participatio i this demadig programme. The reviewers oted that our itegrity ad compliace policy is properly desiged ad cosistetly maaged i lie with iteratioal best practice. I additio, three areas were idetified where we demostrate aboveaverage best practice. These were: esurig cotiuous ope dialogue o itegrity i all staff ad maagemet meetigs across the compay; all meetigs ope with so-called Health, Safety ad Itegrity Momet; brigig parters ad third parties withi the scope of our policy (so-called Third Party Assessmet); ad operatig a pla to prevet coflictig iterests i public projects. CEO Erik Oostwegel said: The impact of corruptio is felt across societies ad it hiders social ad ecoomic developmet aroud the world. Our zero-tolerace to corruptio is a fudametal part of our promise to ehace society together ad to sustaiable growth. A memoradum from the CEO ad Group Compliace Officer expressig their commitmet to itegrity ad compliace was set to all maagers at the begiig of Every maager is expected to act as a role model o itegrity ad all maagers completed the ew Itegrity ad Compliace e-learig module. Olie traiig for our Code of Busiess Priciples was itroduced mid-2016 ad by the ed of the year the Executive Board, Executive Coucil, Corporate Directors ad more tha 35% of the worldwide staff had completed this madatory traiig. This umber has to gradually icrease to approach 100% by the ed of Every director is required to sig a aual statemet that he or she uderstads ad abides by the Busiess Priciples. Olie traiig o the code is a madatory part of the iductio programme for all ew employees. A icreasig umber of part-time ad flexible workers i the compay raises the possibility of coflicts of iterest. The Supervisory ad Executive Boards have actively promoted trasparecy o additioal jobs ad sidelie activities. Our Aual Report 2016 Royal HaskoigDHV 27

28 Achievig our objectives Itegrity Maagemet System is based o atioal ad iteratioal stadards ad supports us i esurig compliat behaviour i our daily busiess. We cotiually review the effectiveess of the system, ad adjust it to worldwide developmets, chaged risks ad ew legal requiremets. Our compliace orgaisatio is liked to permaet offices eablig effective support ad advice to these offices ad to all projects executed outside a coutry. Oe focus is o busiess i high-risk coutries. The resposibility for implemetig ad moitorig lies with maagemet i close cooperatio with the Risk, Legal ad Compliace fuctios. Local Compliace Officers familiar with ati-corruptio legislatio i their respective coutry make sure our Busiess Priciples ad stadards are observed. The Itegrity Maagemet System is reviewed regularly by the Itegrity Coucil, cosistig of Local Compliace Officers, Corporate Directors for Legal, Iteral Audit & Risk ad QHSE. Specialist fuctios are ivited to participate i meetigs. I lie with our Busiess Priciples, Royal HaskoigDHV does ot make doatios to political parties, political activities, religious orgaisatios, authorities, muicipalities or local admiistrators. We keep a clear lie betwee busiess ad persoal iterests. Directors are required to disclose, at the time of appoitmet ad o a aual basis, the iterests they hold i other orgaisatios. We use this iformatio to help us maitai a updated list of related parties to avoid ay perceived coflicts of iterest. A report o compay-wide itegrity ad compliace activities i 2016 idicates a total of 59 reports of suspected miscoduct were made. Of these reports, four led to a ivestigatio; at the ed of the year, there were o ogoig ivestigatios. Seve reports were received via the exterally serviced (ad aoymous) SpeakUp Helplie. Corrective actio was take by reviewig ad developig existig processes ad istructios ad by providig traiig to employees. As a result of the ivestigatios, six employmet cotracts were termiated either by immediate dismissal or by mutual agreemet, ad oe writte warig was give. Two cases of miscoduct were reported to the police. Five cases of suspected corruptio or bribery related to operatios were reported i The reports were made by Royal HaskoigDHV maagemet ad/or employees who were offered moey by third parties for gettig cotracts grated ad/or deliverig additioal services. Noe of these was etered ito ad cotacts with these third parties were termiated. Durig the year Royal HaskoigDHV was ot subject to ay moetary fies for competitio or aticorruptio law violatios. No staff members were prosecuted or uder ivestigatio by ay authority for corruptio. As part of supply chai maagemet, we requested oe report from a service supplier regardig possible cases of a privacy violatio ad the corrective measures take. The report was cosidered sufficiet ad did ot lead to the termiatio of a cotract. We deal with potetial cases of corruptio i a professioal maer, i accordace with the defied compliace ivestigatio process, i lie with applicable laws ad with respect to the rights ad persoal itegrity of all parties ivolved. 28 Aual Report 2016 Royal HaskoigDHV

29 Achievig our objectives Ambitios for 2017 Itegrity ad compliace activities cotiue to itesify throughout all idustries. Durig 2017, we will establish a Digital Ifopoit Busiess Itegrity offerig advice i the daily work eviromet ad puttig employees i touch with the right parter if ecessary. Usig iovative dialogue formats, icludig a itegrity toolbox, we cotiue to ecourage employees to discuss the issue of itegrity i their departmets. The Code of Busiess Priciples forms the foudatio of a rage of ew traiig courses addressig itegrity, compliace, data protectio ad atitrust law. These help esure that ethical ad compliat behaviour remai firmly ad sustaiably achored withi the orgaisatio. Traiig related to the Supplier Code of Coduct will be developed ad itroduced to create awareess i the supply chai. OUTLOOK: AN EMPHASIS ON GROWTH AND INNOVATION Our achievemets durig 2016 give us optimism for the years ahead. Our busiess has iheret stregths - great people, cliets ad projects - which create a soud ad stable base. I 2017 we start a ew phase ad are developig a ew strategy, Strog22, as a atural follow up to the preset Visio 2018 strategy. This emphasises focused growth, iovatio ad a ispirig culture of empowermet ad accoutability to ulock our full potetial. We are seekig to deliver more iovative solutios withi the areas i which we excel through closer partership with cliets. A egaged, iclusive workig eviromet We are creatig ispirig ad professioal workig eviromets for our people by reducig uecessary cotrol ad complexity. We are also developig a more iclusive culture. Our ew strategy icludes iput from the broader leadership ad we are gaiig iput from our colleagues ad cliets through surveys. I 2017 we will be experimetig with more ogoig dialogue betwee maagers ad employees to maximise performace ad potetial. More importace will be give to recogisig achievemet ad attetio to career ad developmet. Project maagemet will cotiue to be a focus ad we will implemet the Project Health Check programme more widely ad roll out a improved quote ad proposal process. We will be orgaisig global project maagemet evets to share expertise ad highlight the importace of project maagemet for the profitability ad success of the orgaisatio. I markets, we clearly see the opportuities i Asia ad the Dutch ecoomy is improvig agai. While Brexit brigs ucertaity to the Uited Kigdom, sigificat ifrastructure spedig commitmets have bee made. The matra for 2017 is happy staff, happy cliets ad healthy compay. We expect ew growth areas built o a profitable uderlyig operatio. Iovatio i digital services ad digital tools Iovatio ad digitalisatio are cetral to our strategy ad operatios. We are movig well beyod traditioal methods i the way we work ad deliver projects through iovatio i digital tools. I additio we see opportuities to deliver digital services usig differet earig models based o techology, software ad data aalytics. Examples of digital tools iclude the use of augmeted reality ad BIM modellig to redesig the layout of the ew iteratioal airport for Mexico City. Virtual reality brigs the model to life eablig cliets to walk through ad experiece the ew desig before buildig starts. Elsewhere, techiques like 3-d scaig with droes are makig a step chage i how we deliver services ad i the type of services we provide. The use of parametric desig software icreases the speed of desig, particularly for repetitive tasks. This will be a icreasigly importat theme for the future. Aual Report 2016 Royal HaskoigDHV 29

30 1881 HERTOG REIJNOUT PUMPING STATION, NETHERLANDS 1887 ROYAL NATIONAL LIFEBOAT INSTITUTION, UNITED KINGDOM Schiphol 30 Aual Report 2016 Royal HaskoigDHV 1950 SCHIPHOL AIRPORT, NETHERLANDS

31 Cosolidated Fiacial Statemets 1970 RESTORATION BOROBUDUR, INDONESIA SELF-DRIVING CARS, NETHERLANDS ENERGY TRANSITION TOWARDS A LOW CARBON ECONOMY Aual Report 2016 Royal HaskoigDHV 31 OFFERING WASTEWATER TREATMENT SOLUTIONS, NEREDA

32 Cosolidated Balace Sheet at 31 December 2016 Before profit appropriatio thousads Assets Note Fixed assets Itagible fixed assets 3 27,398 33,938 Tagible fixed assets 4 10,973 11,855 Fiacial fixed assets 5 16,957 14,539 55,328 60,332 Curret assets Work i progress Receivables 7 161, ,629 Cash ad cash equivalets 8 76,275 81, , , , ,724 Shareholders equity & liabilities Note Group equity Shareholders equity 9 122, ,890 Miority iterest , ,147 Provisios 11 40,307 33,928 No-curret liabilities Curret liabilities , , , , Aual Report 2016 Royal HaskoigDHV

33 Cosolidated Icome Statemet 2016 thousads Note Net turover , ,967 Chage i work i progress (20,664) (12,478) Other operatig icome ,974 Operatig icome 601, ,463 Costs of work subcotracted ad other exteral charges 125, ,082 Salaries ad wages , ,477 Social security & pesio charges 17 60,623 63,513 Depreciatio ad amortisatio o tagible ad itagible fixed assets 9,723 12,106 Impairmet of itagible fixed assets 2,467 3,620 Other operatig costs , ,539 Operatig expeses 584, ,337 Operatig result 16,341 23,126 Iterest icome Iterest costs (1,822) (2,744) Net iterest expese (1,114) (1,889) Result before tax 15,227 21,237 Icome tax expese 20 (3,612) (9,351) Share of result of participatig iterests Result after tax 12,061 11,996 Miority iterest 68 (150) Net result 12,129 11,846 Aual Report 2016 Royal HaskoigDHV 33

34 Cosolidated Statemet of Comprehesive Icome 2016 thousads Note Cosolidated et result after tax attributable to the legal etity 12,061 11,996 Miority iterest 68 (150) Result for the period of the legal etity 12,129 11,846 Traslatio differeces o foreig participatig iterests (1,278) Remeasuremet of defied beefit pla, et of icome tax 9 (8,832) 1,322 Other movemets 9-86 Total of items recogised directly i shareholders equity of the (8,119) 130 compay as part of the group etity Total result of the legal etity 4,010 11, Aual Report 2016 Royal HaskoigDHV

35 Cosolidated Cash Flow Statemet 2016 Note Operatig result 16,341 23,126 Adjusted for: Amortisatio ad depreciatio 12,190 15,726 Other value adjustmets (96) (15,811) Chages i provisios 5, 11 (3,195) 6,738 Chages i workig capital (12,861) 4,970 Cash flow from busiess operatios: 12,379 34,749 Iterest received Divideds received 5 1,072 2,513 Iterest paid (1,822) (2,729) Icome tax paid (9,036) (4,465) Cash flow from operatig activities 3,206 30,906 Ivestmets i: Itagible fixed assets 3 (491) (746) Tagible fixed assets 4 (3,811) (5,032) Fiacial fixed assets 5 (792) (1,507) Acquisitio of group compaies - (811) Disposals of assets: thousads Itagible fixed assets Tagible fixed assets ,613 Fiacial fixed assets Proceeds from sale of iterests i group compaies, et of cash (1,228) - disposed of Cash flow from ivestig activities (5,422) 26,192 Purchase / sale of ow shares 9 (345) 490 Repaymet of borrowigs 12 (1,781) (9,043) Proceeds from borrowigs Divideds paid 10 (298) (163) Cash flow from fiacig activities (2,322) (8,716) Net cash flow (4,538) 48,382 Net cash of decosolidated group compaies (239) - Exchage gais/losses (711) (375) Chages i cash ad cash equivalets (5,488) 48,007 Cash ad cash equivalets at 1 Jauary 81,763 33,756 Movemets durig the year (5,488) 48,007 Cash ad cash equivalets at 31 December 76,275 81,763 Aual Report 2016 Royal HaskoigDHV 35

36 Notes to the Cosolidated Fiacial Statemets 1 GENERAL INFORMATION AND BASIS OF PREPARATION 1.1 OPERATIONS Royal HaskoigDHV is a idepedet, iteratioal egieerig ad project maagemet cosultacy with more tha 135 years of experiece. Backed by the expertise ad experiece of 6,000 colleagues all over the world, our professioals combie global expertise with local kowledge to deliver a multidiscipliary rage of cosultacy services for the etire livig eviromet from over 150 coutries. By showig leadership i sustaiable developmet ad iovatio, together with our cliets, we are workig to become part of the solutio to a more sustaiable society ow ad ito the future. 1.2 REGISTERED OFFICE & GROUP STRUCTURE Koiklijke HaskoigDHV Groep B.V. havig its legal address ad corporate seat at Laa 1914 o. 35, 3818 EX Amersfoort, The Netherlads, is a private limited liability compay uder Dutch law ad is listed uder umber i the Trade Register. Koiklijke HaskoigDHV Groep B.V. has two shareholders: Stichtig HaskoigDHV ad Stichtig Admiistratiekatoor HaskoigDHV. For details regardig the shareholdig structure we refer to page 78. These fiacial statemets cover the year 2016, which eded at the balace sheet date of 31 December CONSOLIDATION The cosolidatio icludes the fiacial iformatio of Koiklijke HaskoigDHV Groep B.V., its group compaies ad other etities i which it exercises cotrol. Group compaies are etities i which Koiklijke HaskoigDHV Groep B.V. exercises direct or idirect cotrol based o a shareholdig of more tha oe half of the votig rights, or whose fiacial ad operatig policies it otherwise has the power to gover. Potetial votig rights that ca directly be exercised at the balace sheet date are also take ito accout. Group compaies ad other etities i which Koiklijke HaskoigDHV Groep B.V. exercises cotrol are cosolidated i full. Miority iterests i group equity ad group results are disclosed separately. A joit veture is a cotractual arragemet whereby two or more parties udertake a ecoomic activity that is subject to joit cotrol. Joit vetures are valued accordig to the equity method o the basis of et asset value. Joit vetures with a egative et asset value are valued at il. If the Group fully or partially guaratees the debt of the joit veture, or has a costructive obligatio to eable the joit veture to pay its debts (for its share therei), a provisio is recogised accordigly. I the cosolidated fiacial statemets, itragroup shareholdigs, debts, receivables ad trasactios are elimiated. Also, the results o trasactios betwee group compaies are elimiated to the extet that the results are ot realised through trasactios with third parties outside the group ad o impairmet loss is applicable. For a trasactio whereby the compay has a less tha a 100% iterest i the sellig group compay, the elimiatio from the group result is allocated pro rata to the miority iterest based o the iterest of the miority i the sellig group compay. The mai cosolidated compaies are listed below, statig the percetage of owership. For a more extesive list of cosolidated compaies ad participatig iterests we refer to page 75. HaskoigDHV Nederlad B.V., Amersfoort, The Netherlads (100%) Haskoig UK Holdigs Ltd, Peterborough, Uited Kigdom (100%) Haskoig Iteratioal B.V., Nijmege, The Netherlads (100%) Stewart Scott Iteratioal Holdigs Pty Ltd., Johaesburg, South Africa (76.95%) Furthermore we have icluded DHV Educatio Foudatio as a cosolidated compay, give the fact that we have cotrol. I the compay statemets, DHV Educatio Foudatio is ot icluded. 1.4 RELATED PARTY TRANSACTIONS All legal etities that ca be cotrolled, joitly cotrolled or sigificatly iflueced are cosidered to be a related party. Also, etities which ca cotrol the compay are cosidered a related party. I additio, statutory directors, other key maagemet of Koiklijke HaskoigDHV Groep B.V. (or the ultimate paret compay) ad close relatives are regarded as related parties. Sigificat trasactios with related parties are disclosed i the otes isofar as they are ot trasacted uder ormal market coditios. The ature, extet ad other iformatio is disclosed if this is required to provide the true ad fair view. 1.5 ACQUISITIONS AND DISPOSALS OF GROUP COMPANIES Idetifiable assets acquired ad liabilities assumed i a busiess combiatio are recogised i the cosolidated fiacial statemets from the acquisitio date, beig the momet that cotrol ca be exercised i the acquired compay. The acquisitio price cosists of the cash cosideratio, or equivalet, agreed for acquirig the compay plus ay directly attributable expeses. If the acquisitio price exceeds the et amout of the fair value of the idetifiable assets ad liabilities, the excess is capitalised as goodwill uder itagible fixed assets. If the acquisitio price is lower tha the et amout of the fair value of the idetifiable assets ad liabilities, the differece (i.e. egative goodwill) is recogised as deferred icome uder accruals or will be recogised i the icome statemet directly. The capitalised goodwill is amortised o a straight lie basis over the estimated useful life to the maximum of 20 years. A agreed possible adjustmet to the purchase price that is cotiget o future evets is icluded i the purchase price if the adjustmet is probable ad the amout ca be measured reliably. Such a adjustmet will also result i a adjustmet to (positive or egative) goodwill with retrospective effect. Etities cotiue to be cosolidated util they are sold; they are decosolidated from the date that cotrol ceases. 36 Aual Report 2016 Royal HaskoigDHV

37 Notes to the Cosolidated Fiacial Statemets 1.6 NOTES TO THE CASH FLOW STATEMENT The cash flow statemet has bee prepared usig the idirect method. Cash flows deomiated i foreig currecies have bee traslated at estimated average exchage rates. Exchage differeces affectig cash items are show separately i the cash flow statemet. Iterest paid ad received, divideds received ad icome taxes paid ad received are icluded i cash flow from operatig activities. Divideds paid are recogised as cash used i fiacig activities. The purchase cosideratio paid for acquired group compaies is recogised as cash used i ivestig activities if it is settled i cash. Ay cash ad cash equivalets i acquired group compaies were deducted from the purchase cosideratio. Trasactios ot resultig i iflow or outflow of cash are ot recogised i the cash flow statemet. Paymets of fiacial lease istalmets qualify as repaymets of borrowigs uder cash used i fiacig activities ad as iterest paid uder cash geerated from operatig activities. Cash flows from derivatives are recogised i the cash flow statemet i the same categories as those of the hedge item. 1.7 ESTIMATES The preparatio of the fiacial statemets requires the maagemet to form opiios ad to make estimates ad assumptios that ifluece the applicatio of priciples ad the reported values of assets ad liabilities ad of icome ad expediture. Revisios of estimates are recogised i the period i which the estimate is revised ad i future periods for which the revisio has cosequeces. The followig accoutig policies are i the opiio of maagemet the most critical for the purpose of presetig the fiacial positio ad require estimates ad assumptios. Reveue recogitio The Group uses the percetage-of-completio method (POC) i accoutig for its fixed-price cotracts to deliver desig services. Use of the POC method requires the Group to estimate the services performed to date as a proportio of the total services to be performed. Project valuatio Valuatio of project related work i progress ad receivables require maagemet estimates with respect to its recoverability. Goodwill Measuremet of goodwill of a acquired compay ivolves the use of estimates for determiig the fair value at acquisitio date. This maily relates to the expected profits of the acquired compay at the momet of acquisitio. The fair value is based o discouted cash flows expected to be received. Goodwill ad other itagibles are tested for impairmet whe a idicator exists that the carryig amouts may ot be recoverable. I calculatig the value i use maagemet must estimate the expected eterprise value based o the expected cash flows of the cash geeratig uit. Provisios Provisios are measured at the best estimate of the amout that is ecessary to settle the liability at the balace sheet date. Estimates by maagemet ad exteral advisors lead to a idicatio of the potetial fiacial risk ad whether the risk is covered by isurace policies. Please refer also to ACCOUNTING POLICIES FOR THE BALANCE SHEET AND INCOME STATEMENT 2.1 GENERAL INFORMATION The cosolidated fiacial statemets have bee prepared i accordace with the statutory provisios of Part 9, Book 2 of the Netherlads Civil Code ad the fiacial reportig requiremets as set forth i the Guidelies for Aual Reportig i the Netherlads. These fiacial statemets have bee prepared o the basis of the goig cocer assumptio. Uless stated otherwise, assets ad liabilities are show at omial value. Assets ad liabilities are recogised i the balace sheet whe it is probable that the expected future ecoomic beefits will flow to the Compay ad the cost or value ca be measured with sufficiet reliability. Icome is recogised i the icome statemet whe a icrease i future ecoomic potetial related to a icrease i a asset or a decrease of a liability has arise, the size of which ca be measured reliably. Expeses are recogised whe a decrease i the ecoomic potetial related to a decrease i a asset or a icrease of a liability has arise, the size of which ca be measured with sufficiet reliability. If a trasactio results i a trasfer of future ecoomic beefits ad or whe all risks relatig to assets ad liabilities trasfer to a third party, the asset or liability is o loger icluded i the balace sheet. Assets ad liabilities are ot icluded i the balace sheet if ecoomic beefits are ot probable ad/or caot be measured with sufficiet reliability. Reveues ad expeses are allocated to the period to which they relate. Reveues are recogised usig the percetage of completio method. 2.2 CHANGE IN ACCOUNTING PRINCIPLES The priciple accoutig policies applied i the preparatio of these cosolidated fiacial statemets are set out below. These policies have bee cosistetly applied to all the years preseted, uless otherwise stated. 2.3 FOREIGN CURRENCIES Fuctioal currecy The cosolidated fiacial statemets are preseted i euros, which is the fuctioal ad presetatio currecy of Koiklijke HaskoigDHV Groep B.V. All amouts show i the fiacial statemets are i thousads of euros uless stated otherwise. Trasactios, receivables ad debts Foreig currecy trasactios are traslated ito the fuctioal currecy usig the exchage rates prevailig at the dates of the trasactios. Foreig exchage gais ad losses resultig from the settlemet of such trasactios ad from the traslatio at year-ed exchage rates of moetary assets ad liabilities deomiated i foreig currecies are recogised i the icome statemet. Aual Report 2016 Royal HaskoigDHV 37

38 Notes to the Cosolidated Fiacial Statemets Traslatio differeces o o-moetary assets held at cost are recogised usig the exchage rates prevailig at the dates of the trasactios. Traslatio differeces o itragroup log term loas that effectively costitute a icrease or decrease i et ivestmets i a foreig operatio are directly recogised i shareholders equity as a compoet of the foreig currecy traslatio reserve. If a foreig operatio is fully or partially sold, the respective amout is trasferred from this reserve to the icome statemet. Group compaies The results ad fiacial positio of all the group etities (oe of which has the currecy of a hyperiflatioary ecoomy) that have a fuctioal currecy differet from the presetatio currecy are traslated ito the presetatio currecy as follows: Assets ad liabilities for each balace sheet preseted are traslated at the closig rate at the date of that balace sheet. Icome ad expeses for each icome statemet are traslated at average exchage rates (uless this average is ot a reasoable approximatio of the cumulative effect of the rates prevailig o the trasactio dates, i which case icome ad expeses are traslated at the rate o the dates of the trasactios). All resultig exchage differeces are recogised i shareholders equity as a compoet of the foreig currecy traslatio reserve. O cosolidatio, exchage differeces arisig from the traslatio of the et ivestmet i foreig operatios, ad of borrowigs ad other currecy istrumets desigated as hedges of such ivestmets, are take to shareholders equity as a compoet of the foreig currecy traslatio reserve for the effective part of the hedge. The o-effective part is recogised as expediture i the icome statemet. 2.4 INTANGIBLE FIXED ASSETS Itagible fixed assets are stated at historical cost less amortisatio. Allowace is made for ay impairmet losses expected; a loss qualifies as a impairmet loss if the carryig amout of the asset (or of the cash-geeratig uit to which it belogs) exceeds its recoverable amout. For details o how to determie whether a itagible fixed asset is impaired, please refer to ote 2.7. Goodwill Goodwill at acquisitio of subsidiaries ad o-cosolidated participatios as calculated i accordace with ote 1.7 is capitalised ad amortised o a straight-lie basis over its estimated useful life of o more tha 20 years. The Group s policy to amortise the goodwill i more tha 5 year is based o the assumptio that the acquisitios are expected to be a permaet ad itegral part of the Group. Goodwill paid upo the acquisitio of foreig group compaies ad subsidiaries is traslated at the exchage rates at the date of acquisitio. Iterally geerated goodwill is ot capitalised. Software Software liceces acquired are capitalised at acquisitio cost ad amortised over their estimated useful lives (3 to 8 years). Expeditures that are attributable to the productio of idetifiable ad uique software products cotrolled by the Group are capitalised. Costs associated with maitaiig computer software ad research ad developmet costs of iterally developed software expediture are recogised i the icome statemet. 2.5 TANGIBLE FIXED ASSETS Lad ad buildigs are stated at historical cost plus expediture that is directly attributable to the acquisitio of the items, less straight-lie depreciatio over their estimated useful lives. Lad is ot depreciated. Allowace is made for ay impairmet losses expected o the balace sheet date. For details o how to determie whether property, plat or equipmet is impaired, please refer to ote 2.7. Other o-curret assets are valued at historical cost or maufacturig price icludig directly attributable expediture, less straight-lie depreciatio over their estimated lives ad impairmet losses. Tagible fixed assets, for which the compay ad its group compaies possess the ecoomic owership uder a fiacial lease, are capitalised. The obligatio arisig from the fiacial lease cotract is recogised as a liability. The iterest icluded i the future lease istallmets is charged to the profit ad loss accout durig the term of the fiace lease cotract. The estimated average useful life by category is as follows: Buildigs 10 to 30 years Computer hardware 3 to 5 years Other fixed assets 3 to 5 years The cost of major repairs to buildigs is capitalised ad depreciated over 5 to 10 years if such repairs exted the life of a buildig. 2.6 FINANCIAL FIXED ASSETS Participatig iterests Ivestmets i group compaies ad other miority iterests i which the compay ca exert sigificat ifluece are valued accordig to the et asset value method as derived from the latest available fiacial data from these ivestmets ad iterests. Sigificat ifluece is i ay case defied as a shareholder s iterest of more tha 20%. Net asset value is calculated usig the accoutig policies applied i these fiacial statemets. Associates whose fiacial iformatio caot be aliged to these policies are valued based o their ow accoutig policies. Associates with a equity deficit are carried at il. A provisio is formed if ad whe Koiklijke HaskoigDHV Groep B.V. oe of its group compaies is fully or partially liable for the debts of the associate, or has the firm itetio to allow the associate to pay its debts. Associates acquired are iitially measured at the fair value of 38 Aual Report 2016 Royal HaskoigDHV

39 Notes to the Cosolidated Fiacial Statemets the idetifiable assets ad liabilities upo acquisitio. Ay subsequet valuatio is based o the accoutig policies that apply to these fiacial statemets, takig ito accout the iitial valuatio. Associates i which o sigificat ifluece ca be exercised are recogised at cost. If a asset qualifies as impaired, it is measured at its impaired value; ay write-offs are disclosed i the icome statemet. Loas to participatig iterests Amouts owed by associates disclosed uder fiacial fixed assets are recogised iitially at fair value of the amout owed, which ormally cosists of its face value, et of ay provisios cosidered ecessary. These receivables are subsequetly stated at amortised cost. Deferred tax A provisio for deferred tax liabilities is recogised for taxable temporary differeces. For deductible temporary differeces, uused loss carry forwards ad uused tax credits, a deferred tax asset is recogised, but oly i so far as it is probable that taxable profits will be available i the future for offset or compesatio. Deferred tax assets are reviewed at each reportig date ad reduced to the extet that it is o loger probable that the related tax beefit will be realised. For taxable temporary differeces related to group compaies, foreig braches, associates ad iterests i joit vetures, a deferred tax asset is recogised uless the compay is able to cotrol the timig of the reversal of the temporary differece ad it is probable that the temporary differece will ot reverse i the foreseeable future. For deductible temporary differeces regardig group compaies, foreig braches, associates ad iterests i joit vetures, a deferred tax asset is oly recogised i so far as it is probable that the temporary differece will reverse i the foreseeable future ad that taxable profit will be available to offset the temporary differece. Deferred tax assets ad liabilities are stated at face value ad are oly offset whe they relate to the same etity ad taxatio authority. Other Other receivables disclosed uder fiacial assets iclude issued loas ad other receivables as well as purchased loas that will be held to their maturity date. These receivables are iitially take up at fair value ad subsequetly stated at amortised cost. 2.7 IMPAIRMENT OF FIXED ASSETS At each balace sheet date, the Compay tests whether there are ay idicatios of assets beig subject to impairmet. If ay such idicatios exist, the recoverable amout of the asset is determied. If this proves to be impossible, the recoverable amout of the cash geeratig uit to which the asset belogs is idetified. A asset or cash geeratig uit is subject to impairmet if its carryig amout exceeds its recoverable amout; the recoverable amout is the higher of a asset s fair value less costs to sell ad value i use. A impairmet loss is directly expesed i the icome statemet. I case of a impairmet loss of a cash geeratig uit, the loss is first allocated to goodwill that has bee allocated to the cash geeratig uit. Ay remaiig loss is allocated to the other assets of the uit i proportio to their carryig values. I additio a assessmet is made o each balace sheet date whether there is ay idicatio that a impairmet loss that was recorded i previous years has decreased. If there is such idicatio, the the recoverable value of the related asset (or cash geeratig uit) is estimated. Reversal of a previously recogised impairmet loss oly takes place whe there is a chage i the assessmet used to determie the recoverable amout sice the recogitio of the last impairmet loss. I such case, the carryig amout of the asset (or cash- geeratig uit) is icreased to its recoverable amout, but ot higher tha the carryig amout that would have applied (et of depreciatio) if o impairmet loss had bee recogised i previous years for the asset (or cashgeeratig uit). A impairmet loss of goodwill is ot reversed i a subsequet period. Cotrary to what is stated before, at each balace sheet date the recoverable amout is assessed for the followig assets (irrespective of whether there is ay idicator of a impairmet): itagible assets that have ot bee put ito use yet; itagible assets that are amortised over a useful life of more tha 20 years (coutig from the momet of iitial operatio/use). Fiacial assets are impaired if there is objective evidece of impairmet as a result of evets that occurred after the iitial recogitio, with egative impact o the estimated future cash flows, which ca be estimated reliable. Objective evidece that fiacial assets are impaired icludes deliquecy by a debtor, idicatios that a debtor or issuer will eter or approachig bakruptcy, adverse chages i the paymet status of borrowers or issuers, or disappearace of a active market for a security. Impairmet losses are recogised i the icome statemet. I assessig impairmet, the Compay uses historical treds of the probability of default, the timig of collectios ad the amout of loss icurred, adjusted for maagemet s judgemet as to whether curret ecoomic ad credit coditios are such that the actual losses are likely to be greater or lesser tha suggested historical treds. Whe, i a subsequet period, the amout of a impairmet loss o fiacial assets decreases, ad the decrease ca be related objectively to a evet occurrig after the impairmet was recogised, the decrease i the impairmet loss is reversed through icome statemet (up to the amout of the origial cost). Aual Report 2016 Royal HaskoigDHV 39

40 Notes to the Cosolidated Fiacial Statemets 2.8 WORK IN PROGRESS Work i progress is carried at cotract reveue geerated, which is comprised of cotract costs icurred ad attributable profits, based o percetage of completio less progress billigs ad recogised losses. Cotract costs are costs which directly relate to the specific project (for example, persoel costs for employees whose activities relate directly to the project, costs of materials used) ad the costs which are attributable to cotract activity i geeral ad ca be allocated to the project (icludig isurace, costs of desig ad techical assistace, costructio overhead) as well as other costs chargeable to the customer uder the terms of the project. The percetage of completio, used for calculatio of work i progress is determied based o the services performed to date as a percetage of the total services to be performed. Whe the outcome of a costructio cotract caot be reliably estimated, reveues are recogised i the profit ad loss accout to the extet of the cotract costs icurred which are likely to be recovered. Cotract costs are recogised i the profit ad loss accout i the period i which they are icurred. Cotract reveues are reveues agreed i the cotract, icludig ay proceeds o the basis of more or less work, claims ad fees, if ad to the extet that it is probable that the beefits will be realised ad ca be measured reliably. Cotract reveues are measured at the fair value of the services that are or will be received i retur. Where appropriate, expected losses are recogised as exposure i the icome statemet. I additio, progress ivoices ad paymets received i advace are also credited agaist work i progress. 2.9 FINANCIAL INSTRUMENTS A fiacial istrumet is a cotract that gives rise to a fiacial asset or liability or equity istrumet. Fiacial istrumets cotai the followig measuremet categories: Receivables Derivatives Cash ad cash equivalets No-curret- ad curret liabilities Fiacial istrumets also iclude derivative fiacial istrumets embedded i cotracts. I this respect, o derivatives have bee separated from the host cotract. Fiacial istrumets are iitially recogised at fair value, icludig discout or premium ad directly attributable trasactio costs. Subsequet measuremet depeds o its classificatio of the fiacial istrumet. However, if fiacial istrumets are subsequetly measured at fair value through the icome statemet, the directly attributable trasactio costs are directly recogised i the icome statemet. After iitial recogitio, the fiacial istrumets are valued i the way as described below RECEIVABLES Trade receivables are recogised at fair value ad subsequetly measured at amortised costs, et of ay provisio for doubtful debts. Whe a receivable is ucollectable, it is writte off agaist the provisio. Subsequet recoveries of amouts previously writte off are credited to the icome statemet DERIVATIVES Derivatives are carried after their iitial recogitio at the lower of cost or market value, except if the cost model for hedge accoutig is applied. If the cost model for hedge accoutig is applied, the o revaluatio of the derivative istrumet takes place, as log as the derivative hedges the specific risk of a future trasactio that is expected to take place. As soo as the expected future trasactio leads to recogitio i the profit ad loss accout, the the profit or loss that is associated with the derivative is recogised i the profit ad loss accout. If the hedged positio of a expected future trasactio leads to the recogitio i the balace sheet of a o-fiacial asset or a o-fiacial liability, the the cost of the asset is adjusted by the hedge results that have ot yet bee recogised i the profit ad loss accout. If forward exchage cotracts are cocluded to hedge moetary assets ad liabilities i foreig currecies, cost hedge accoutig is applied. This is doe to esure that the gais or losses arisig from the traslatio of the moetary items recogised i the profit ad loss accout are offset by the chages i the value of forward exchage cotracts arisig from the differece betwee their forward ad spot rates as at reportig date. The differece betwee the spot rate agreed at the iceptio of the forward exchage cotract ad the forward rate is amortised via the profit ad loss accout over the term of the cotract. Whe a derivative expires or is sold, the accumulated profit or loss that has ot yet bee recogised i the profit ad loss accout prior to that time must the be icluded as a deferral i the balace sheet util the hedged trasactios take place. If the trasactios are o loger expected to take place, the the accumulated profit or loss is trasferred to the profit ad loss accout. If a derivative o loger meets the coditios for hedge accoutig, but the fiacial istrumet is ot sold, the the hedge accoutig is also termiated. Subsequet measuremet of the derivative istrumet is the at the lower of cost or market value. The compay documets its hedgig relatioships i specific hedgig documetatio ad regularly checks the effectiveess of the hedgig relatioships by establishig whether the hedge is effective or that there is o over-hedgig. At each balace sheet date, the compay assesses the degree of ieffectiveess of the combiatio of the hedge istrumet ad the hedged positio (the hedgig relatioship). The degree of ieffectiveess of the hedgig relatioship is determied by comparig the critical features of the hedgig istrumet agaist the hedged positio CASH AND CASH EQUIVALENTS Cash ad cash equivalets iclude cash i had ad deposits held at call with baks. Bak overdrafts are disclosed as curret liabilities o the balace sheet. Cash ad cash equivalets are stated at face value EQUITY The cosideratio paid for the repurchase of shares is deducted from other reserves, util such time that these shares are cacelled or sold. If shares are sold, ay proceeds are added to 40 Aual Report 2016 Royal HaskoigDHV

41 Notes to the Cosolidated Fiacial Statemets the other reserves. Costs directly related to the purchase, sale ad/or issue of ew shares are recogised directly i shareholders equity i the compoet other reserves et of ay relevat tax effects. Other direct movemets i shareholders equity are also recogised et of ay relevat tax effects MINORITY INTEREST The miority iterests as part of the group equity are stated at omial value at the amout of the et participatio i the relevat group compaies. Where the group compay i questio has a equity deficit, the egative value ad ay other losses are ot allocated to the miority iterest, uless the miority iterest holders have a costructive obligatio, ad are able, to clear the losses. As soo as the group compay maages to post a equity surplus, profits are allocated to the miority iterest DIVIDENDS Divided distributio to shareholders is recogised as a liability i the Group s fiacial statemets i the period i which the divideds are approved by the compay s shareholders PROVISIONS Geeral iformatio Provisios are measured at the best estimate of the amout that is ecessary to settle the liability at the balace sheet date. A provisio is recogised if the followig applies: the compay has a legal or costructive obligatio, arisig from a past evet; ad the amout ca be estimated reliably; it is probable that a outflow of resources embodyig ecoomic beefits will be required to settle the obligatio. With the exceptio of the pesio beefits ad log-term employee beefits, provisios are stated at omial value ad charged agaist project result as much as possible. Uless otherwise stated, provisios are of a log-term ature. Pesio beefits The Group operates a umber pesio schemes. The fact whether a scheme is classified as defied cotributio or defied beefit is assessed based upo the pesio agreemet with the staff ad the admiistratio agreemet with the pesio fud or isurace agreemet with the isurace compay. All schemes except oe are defied cotributio pesio schemes, whereby based upo the agreemets with the staff, the pesio fud or the isurace compay o additioal commitmets for the Group exist beyod the paymet of the pesio premium due i respect of the fiacial year. I the Uited Kigdom the Group operates a defied beefit pesio scheme, whereby the actuarial risk ad the ivestmet risk lay with HaskoigDHV UK Ltd.. This scheme has bee closed for ew etries ad future accrual i The assets of the scheme are held separately from those of HaskoigDHV UK Ltd. i a idepedetly admiistered fud. As allowed i RJ the Group uses IAS19R Employee Beefits for the accoutig treatmet of this scheme: The differece betwee the preset value of the accrued pesio liabilities ad the market value of the assets of the scheme (the et pesio deficit) is recorded as a provisio o the balace sheet. The liabilities are calculated as the preset value of the estimated future cash flows usig the accumulated beefit obligatio method based upo actuarial assumptios which are aually set by The Board of Maagemet of the Uited Kigdom operatig etity. The liabilities are calculated by a idepedet actuary. A et iterest expese is calculated as the differece betwee the expected icrease of the accrued pesio liabilities at the begiig of the reportig period ad the expected retur o the scheme s assets at the begiig of the period, ad is charged to the icome statemet uder iterest costs. The differece betwee the actual ad expected icrease of the liabilities ad the actual ad expected retur o assets is directly credited or charged to equity. Ay gais or losses arisig from experiece or assumptio chages are directly credited or charged to equity. Reorgaisatio Provisio for reorgaisatio is directly related to iitiated or pedig reorgaisatios. The provisio is made as soo as a detailed pla has bee draw up for a reorgaisatio ad this pla has bee commuicated to those affected. The provisio for restructurig costs icludes the costs that are directly associated with the restructurig, which are ot associated with the ogoig activities of the compay. Log-term employee beefits The provisio is recogised for the preset value of the future log-service awards, which is calculated o the basis of the commitmets made, the likelihood of the staff cocered remaiig with the compay, ad their age. A umber of group compaies are by law obliged to pay compesatio for severace ad disability upo termiatio of employmet. Liabilities arisig from this are calculated based upo actuarial assumptios. Other provisios A provisio for claims, disputes ad lawsuits is established whe it is expected that the compay will be seteced i legal proceedigs. The provisio represets the best estimate of the amout for which the claim ca be settled, icludig the costs of litigatio. Provisios for log-term sickess is measured at the fair value of excepted amouts payable, which is based o commitmets made, kow cases ad likelihood of recovery. For deferred icome tax we refer to 2.6 o page NON-CURRENT LIABILITIES Borrowigs are iitially recogised at fair value, et of trasactio costs icurred. Borrowigs are subsequetly stated Aual Report 2016 Royal HaskoigDHV 41

42 Notes to the Cosolidated Fiacial Statemets at amortised cost, beig the amout received takig accout of ay premium or discout, less trasactio costs. Ay differece betwee the proceeds (et of trasactio costs) ad the redemptio value is recogised as iterest i the icome statemet over the period of the borrowigs usig the effective iterest method. Borrowigs are classified as curret liabilities uless the Group has a ucoditioal right to defer settlemet of the liability for at least 12 moths after the balace sheet date LEASES The compay may eter ito fiacial ad operatig leases. A lease agreemet uder which the risks ad rewards of owership of the leased object are carried etirely or almost etirely by the lessee are classified as fiace leases. All other leases are classified as operatig leases. For the lease classificatio, the ecoomic substace of the trasactio is coclusive rather tha the legal form. Fiacial lease If the Group acts as lessee i a fiacial lease, the leased property (ad the related liability) is recogised i the balace sheet at the start of the lease period at its fair value or, if lower, at the preset value of the miimum lease paymets. Both amouts are determied at the start of the lease. The iterest rate applied for the calculatio of preset value is the implicit iterest rate. If it is ot practically possible to determie this iterest rate, the the margial iterest rate is used. The iitial direct costs are icluded i the iitial measuremet of the leased property. The accoutig priciples for the subsequet valuatio of the leased property are described i 2.5. If there is o reasoable certaity that the compay will become the ower of a leased property at the ed of the lease period, the property is depreciated over the shorter of the lease period or the ecoomic life of the property. The miimum lease paymets are split ito iterest expese ad redemptio of the lease liability. The iterest charges are allocated durig the lease term to each period i such a way that this results i a costat periodic iterest rate over the remaiig et liability with regard to the fiacial lease. Coditioal lease paymets are recorded as a expese i the period i which the coditios for paymet are beig met. Operatioal leases If the Group acts as lessee i a operatig lease, the the leased property is ot capitalised. Lease paymets regardig operatig leases are charged to the icome statemet o a straight-lie basis over the lease period REVENUE RECOGNITION Geeral Profit represets icome from services redered less expeses ad other costs attributable to the fiacial year. Gais or losses o trasactios are recogised i the year i which they are posted. Profit o orders is recogised i accordace with the percetageof-completio (POC) method. It icludes profit o orders executed etirely for the Group s ow accout ad risk as well as a share of the profit o orders executed together with parters. Reveue from time ad material cotracts, typically from deliverig desig services, is recogised at the cotractual rates, as labour hours are delivered ad direct expeses icurred. Reveue from fixed-price ad percetage fee based cotracts for deliverig desig services is recogised uder the POC method. Uder the POC method, reveue is geerally recogised based o assessmets of the services performed to date as a percetage of the total services to be performed. As soo as the outcome of a cotract ca be estimated reliably, project reveue ad project costs associated with the project are recogised as reveue ad expeses respectively i proportio to the amout of work performed as at balace sheet date. Reveue from projects icludes the cotractually agreed reveue plus ay reveue from variatios i project work, claims ad reimbursemets, i so far as ad to the extet that it is probable that these reveues will be realised ad ca be reliably determied. Expected losses ad kow risks are provided for i the period i which they become kow ad are credited agaist work i progress. Exchage differeces arisig upo the settlemet or coversio of moetary items are recogised i the icome statemet i the period that they arise, uless they are hedged. Reveues o licese based cotracts are recogised at the time the sigificat risks ad rights of the liceces are trasferred to the buyer NET TURNOVER Turover comprises the fair value of the cosideratio for the sale of goods ad services to third parties, et of discouts ad exclusive of value added tax attributable to activities performed durig the reportig period MOVEMENT WORK IN PROGRESS At the balace sheet date, the ivoicig of projects does ot equal project costs or project results. The differece betwee these two amouts at 1 Jauary ad 31 December is show separately as a part of total operatig icome COSTS OF WORK SUBCONTRACTED AND OTHER EXTERNAL CHARGES Costs of work subcotracted ad other exteral charges are costs that are directly attributable to et turover, i.e. subcotractors, travel costs ad other costs OPERATING COSTS Operatig costs are allocated to the reportig period to which they relate AMORTISATION AND DEPRECIATION Itagible fixed assets, icludig goodwill, are amortised ad property, plat ad equipmet depreciated over their estimated useful lives as from the iceptio of their use. Lad ad ivestmet property are ot depreciated. Future depreciatio ad amortisatio is adjusted if there is a chage i estimated future useful life. 42 Aual Report 2016 Royal HaskoigDHV

43 Notes to the Cosolidated Fiacial Statemets 2.25 GOVERNMENT GRANTS Operatig grats are recogised as a icome item i the icome statemet i the year i which the subsidised costs are icurred, icome is lost or a subsidised operatig deficit has occurred. Grats are recogised as soo as it is likely that they will be received ad the Group will comply with all attached coditios EMPLOYEE BENEFITS Beefits payable o a regular basis Wages, salaries ad social security cotributios payable pursuat to employmet coditios are icorporated i the icome statemet to the extet that these are payable to employees. Pesios For the Dutch ad comparable foreig defied cotributio pesio schemes the pesio charge to be recogised for the reportig period equals the pesio premium due to the pesio fud or isurace compay i respect of the reportig period. Prepaid premiums are recogised as deferred assets if these lead to a refud or reductio of future paymets. Premiums that are due but have ot bee paid yet are preseted as liabilities. Chages i provisios for additioal liabilities are also charged to the result i the period i which they arise. I The Netherlads, i lie with ew fiscal laws regardig pesios applicable from 2015, a ew collective defied cotributio pesio scheme has bee itroduced. This scheme is based upo average pay durig the employmet period with coditioal idexatio based upo the applicable Pesio Law ad the fiacial positio of the pesio fud, ad has therewith the same characteristics as the previous schemes that were i place util the ed of The two former pesio fuds have merged with effect from 1 Jauary 2015 ad the ew fud will admiister the ew scheme as well as the existig liabilities of the 2 former fuds. The Group has etered ito a admiistratio agreemet with the ew fud whereby the premium is fixed for 5 years ad its liabilities are limited to the paymet of the actual premiums due without ay liability for additioal paymets to or deficits arisig i the fud. The ew pesio fud has two compartmets, which are legally separated. I oe compartmet the former members of the DHV fud, together with ew etries sice 2015, are admiistered. This compartmet is fully self-maaged ad has a provisioal coverage rate at the ed of 2016 of 103. I the other compartmet the former members of the Royal Haskoig fud are admiistered. This compartmet is closed for ew etries i The pesio liabilities util the ed of 2014 are fully isured with a life isurace compay whereby the major risks are trasferred to this compay. Pesio accruals with effect from 2015 are self-maaged. This compartmet has a provisioal coverage rate at the ed of 2016 of 114. I the Uited Kigdom ad South Africa the curret pesio arragemets are to be cosidered as idividual defied cotributio schemes which are admiistered by isurace compaies. I additio the Group operates a defied beefit pesio scheme i the Uited Kigdom which has bee closed for ew etries ad future accrual i Further referece is made to 2.16 ad ote 11. For foreig pesio schemes that are ot comparable i desig ad fuctioig to the Dutch pesio system a best estimate is made of the obligatio at the balace sheet date usig geerally accepted actuarial valuatio priciples. Chages of the obligatio are charged to the result i the period i which they arise FINANCE INCOME AND COSTS Iterest Iterest icome ad expeses are recogised i the icome statemet as it accrues usig the effective iterest method. Divideds Divided icome is recogised whe the actual paymet is received INCOME TAX EXPENSE Icome tax is calculated o the profit/(loss) before tax i the icome statemet, takig ito accout ay losses carried forward from previous fiacial years (where ot icluded i deferred icome tax assets) ad tax-exempt items ad o-deductible expeses. Accout is also take of chages i deferred icome tax assets ad liabilities owig to chages i the applicable tax rates SHARE OF RESULT PARTICIPATING INTERESTS The share of the result of participatig iterests cosists of the share of the group i the results of these participatig iterests, determied o the basis of the accoutig priciples of the group. The results of participatig iterests acquired or sold durig the fiacial year are stated i the group result from the date of acquisitio or util the date of sale respectively. I additio, for a limited umber of staff, a umber of defied cotributio pesio schemes are directly isured with life isurace compaies. Aual Report 2016 Royal HaskoigDHV 43

44 Notes to the Cosolidated Fiacial Statemets 3 INTANGIBLE FIXED ASSETS Movemets i itagible fixed assets ca be broke dow as follows: Goodwill Computer Software Total At 1 Jauary 2016 Cost 74,345 13,251 87,596 Accumulated impairmet ad amortisatio (43,324) (10,334) (53,658) Book value 31,021 2,917 33,938 Movemets Ivestmets Divestmets - (44) (44) Exchage rate differeces Impairmet (2,467) - (2,467) Amortisatio (3,240) (1,381) (4,621) Subtotal (5,610) (930) (6,540) At 31 December 2016 Cost 74,213 12,943 87,156 Accumulated impairmet ad amortisatio (48,802) (10,956) (59,758) Book value 25,411 1,987 27,398 Amortisatio rate i % At each balace sheet date the Group tests whether there are ay idicators of itagible assets beig subject to impairmet. If ay such idicators exists, the Group carries out impairmet tests o capitalised goodwill, based o the estimated cash flows of the related CGU. The CGU represets the lowest level withi the Group at which the goodwill is moitored for iteral maagemet purposes. The recoverable amout of the relevat CGU is determied o the basis of their value i use. Determiatio of the value i use is performed by usig estimated future cash flows based o historical performace ad expected future market developmets, forecast 2016, budget 2017 ad further fiacial projectios for Cash flows after five years are extrapolated by perpetual growth rate to calculate the termial value. To calculate the preset value of the estimated future cash flows, pre-tax discout rates have bee applied. Above metioed tests have led to a partly impairmet of a CGU i the Americas of 1.1 millio based o the disappoitig historical performace or future expectatios ad a impairmet of a CGU i Asia of 1.3 millio due to decliig market circumstaces. The book value of Goodwill is geographically divided as follows: The Netherlads 7,644 9,045 Uited Kigdom 2,889 3,699 Europe (other) 1,707 1,862 Africa 5,963 6,259 Asia 1,707 3,354 Americas 5,501 6,802 25,411 31, Aual Report 2016 Royal HaskoigDHV

45 Notes to the Cosolidated Fiacial Statemets 4 TANGIBLE FIXED ASSETS Movemets i tagible fixed assets ca be broke dow as follows: Lad ad buildigs Furiture ad fixtures Hardware Other fixed assets Total At 1 Jauary 2016 Cost 6,499 21,876 16,829 6,585 51,789 Accumulated impairmet ad amortisatio (3,805) (18,190) (12,399) (5,540) (39,934) Book value 2,694 3,686 4,430 1,045 11,855 Movemets Ivestmets , ,780 Disposals (70) (140) (40) (19) (269) Reclassificatio 204 (66) 4 (142) - Exchage rate differeces (67) (60) - (145) (272) De-cosolidated - (2) (9) (8) (19) Depreciatio (810) (1,126) (2,836) (330) (5,102) Subtotal 36 (708) 95 (305) (882) At 31 December 2016 Cost 8,489 19,795 15,869 5,196 49,349 Accumulated impairmet ad amortisatio (5,759) (16,817) (11,344) (4,456) (38,376) Book value 2,730 2,978 4, ,973 Depreciatio rate i % The book value of assets uder fiacial lease is as follows: Lad ad buildigs Furiture ad fixtures Hardware Other fixed assets Total Fiacial lease Aual Report 2016 Royal HaskoigDHV 45

46 Notes to the Cosolidated Fiacial Statemets 5 FINANCIAL FIXED ASSETS Movemets i fiacial fixed assets ca be broke dow as follows: Participatig Iterests Deferred icome tax assets Other fiacial fixed assets Total At 1 Jauary ,797 10, ,539 Ivestmets / additios 792 2,482-3,274 Reclassificatio (594) (283) - (877) Disposals / utilisatio (271) (363) - (634) Remeasuremet of defied beefit pla - 1,441-1,441 Share of result i participatig iterests Exchage differeces 239 (200) 1 40 De-cosolidated - (200) - (200) Divideds (1,072) - - (1,072) At 31 December ,337 13, ,957 Participatig iterests We refer to page 75 for the compay s participatig iterests. Deferred icome tax assets Deferred icome tax assets relate amogst others to uused tax losses. Recogised ad urecogised deductible temporary differeces ad tax losses ca be broke dow as follows: 2016 Deferred icome tax assets 2015 Deferred icome tax assets Deductible temporary differeces related to Uited Kigdom pesios 4,382 3,399 Other deductible temporary differeces 2,670 3,175 Total deductible temporary differeces 7,052 6,574 Tax losses 6,446 4,047 13,498 10,621 A amout of 1.5 millio of the 13.5 millio deferred tax asset is aticipated to be settled withi 1 year. The kow tax losses ot valued amout to 21.6 millio (2015: 22.3 millio). The deferred tax asset for tax losses icludes a deferred tax beefit of 3.5 millio for the liquidatio of the etities i Portugal ad Russia. Movemet i deferred tax o the Uited Kigdom pesios is related to the actuarial loss o post-employmet beefit obligatios o the Uited Kigdom pesio pla (defied beefit). I millio is recogised directly i equity (2015: -1.0 millio). Other deductible temporary differeces iclude timig differeces from participatig iterests. 46 Aual Report 2016 Royal HaskoigDHV

47 Notes to the Cosolidated Fiacial Statemets 6 WORK IN PROGRESS Costs ad estimated earigs o ucompleted cotracts are as follows: Costs icurred ad estimated earigs 1,737,643 1,579,724 Billigs to date (1,740,712) (1,568,206) (3,069) 11, Costs icurred ad estimated earigs i excess of billigs 75,387 89,892 Billigs i excess of cost icurred ad estimated earigs (78,456) (78,374) (3,069) 11,518 Less: Provisio for expected losses (10,567) (8,694) Paymets i advace (3,052) (4,073) (16,688) (1,249) Chage work i progress i the icome statemet is ot equal to the movemet i the balace sheet amogst others due to exchage rate differeces, decosolidatios ad reclassificatios. The egative amout of work i progress is icluded i the curret liabilities, see ote RECEIVABLES Trade receivables 131, ,490 Amouts owed from participatig iterests 8,692 6,948 Corporate icome tax Other taxes ad social security charges 2,786 2,755 Employee advaces Prepaid expeses 9,897 11,949 Other receivables 7,176 7, , ,629 Amouts owed from participatig iterests, like joit vetures, are treated similar to trade receivables; o iterest is charged. All receivables fall due i less tha oe year Trade receivables 148, ,701 Less: provisio for bad debts (16,949) (16,211) 131, ,490 Aual Report 2016 Royal HaskoigDHV 47

48 Notes to the Cosolidated Fiacial Statemets 8 CASH AND CASH EQUIVALENTS The cash ad cash equivalets balace icludes a amout of 0.2 millio (2015: 1.0 millio) that is ot immediately accessible. This relates to fuds that are i a escrow accout with the Dutch Tax Authorities i lie with the Dutch Sequetial Liability Act. 9 SHAREHOLDERS EQUITY Movemets i shareholders equity ca be broke dow as follows: Issued share capital Foreig currecy traslatio reserve Legal ad statutory reserves Other reserves Uappropriated result Total Total At 1 Jauary 5,000 (8,912) 3, ,813 11, , ,564 Movemets Legal ad statutory reserves - - (854) Exchage rate differeces (1,278) Uappropriated result ,129 12,129 11,846 Trasfer result last year to ,846 (11,846) - - other reserves Ow shares (repurchased) / sold (345) - (345) 490 Divided (292) - (292) (140) Other movemets i reserves (8,832) - (8,832) 1,408 Subtotal (854) 3, ,373 12,326 At 31 December 5,000 (8,199) 2, ,044 12, , ,890 Group equity comprises of the equity of Koiklijke HaskoigDHV Groep B.V., which also icludes the DHV Educatio Foudatio. The equity of Koiklijke HaskoigDHV Groep B.V. as well as recociliatio with the cosolidated equity is part of ote 28 of the Compay Fiacial Statemets. Exchage gais ad losses arisig from the traslatio of foreig operatios from fuctioal to reportig currecy are accouted for i the foreig currecy traslatio reserve. The legal ad statutory reserves cosist of a statutory reserve for uappropriated icome of participatig iterests of 2.0 millio ad a legal reserve of 0.3 millio i Portugal ad Belgium. 48 Aual Report 2016 Royal HaskoigDHV

49 Notes to the Cosolidated Fiacial Statemets 10 MINORITY INTEREST Movemets i the miority iterest ca be broke dow as follows: At 1 Jauary Newly cosolidated - (152) Profit for the year (68) 150 Divideds (6) (7) Exchage differeces 8 (63) At 31 December PROVISIONS Movemets i provisios ca be broke dow as follows: Pesios Reorgaisatio Log-term employee beefits Deferred tax liability Other provisios Total At 1 Jauary ,884 10,337 3, ,928 Additios 593 3, ,203 Withdrawals (1,431) (5,195) (160) (114) (477) (7,377) Remeasuremet of 10, ,273 defied beefit pla Reclassificatio (283) (39) 314 Release to profit & loss - (474) - - (24) (498) accout Exchage differeces (2,542) (25) (2,536) At 31 December ,777 8,580 5, ,307 Of the provisios 33.9 millio (2015: 28.5 millio) qualifies as log-term (i effect for more tha oe year). Pesios Provisios are recogised at the balace sheet date for ufuded obligatios resultig from cotractual arragemets with pesio fuds ad from obligatios to employees i the Uited Kigdom. These obligatios are based o actuarial calculatios. Uited Kigdom closed defied beefit pla This pla is a fuded defied beefit arragemet. The pla is a separate trustee admiistered fud holdig the pesio pla assets to meet the log-term pesio liabilities. New etries ad accruals for ew beefits i the pla ceased o 30 Jue 2005 at which time all remaiig active members became deferred members. No guaratee from the Group has bee provided to the local etity i the Uited Kigdom for the closed defied beefit pla. Aual Report 2016 Royal HaskoigDHV 49

50 Notes to the Cosolidated Fiacial Statemets Movemet i et defied beefit liability Defied beefit obligatio Fair value of pla assets Net defied beefit liability Total At 1 Jauary 75,831 56,947 18,884 20,796 Icluded i icome statemet Iterest 2,398 1, Icluded i equity Actuarial loss (gai) arisig from - Scheme experiece - Demographic assumptios - Fiacial assumptios , ,759 (344) - (2,433) Retur o pla assets (excludig iterest icome) - 6,259 (6,259) 449 Exchage differeces (10,210) (7,667) (2,543) 1,232 6,322 (1,408) 7,730 (1,096) Other Cotributios paid by employer - 1,431 (1,431) (1,581) Beefits paid (5,065) (5,065) - - (5,065) (3,634) (1,431) (1,581) At 31 December 79,486 53,709 25,777 18,884 The iterest is take up i the icome statemet i the lie iterest costs. Pla assets Pla assets comprise of the followig: Amout % Amout % Corporate bods 2,691 1,982 Idex-liked bods 2,536 2,554 Pooled Liability Drive Ivestmet Fuds 13,077 16,310 Total matchig assets 18, , Uited Kigdom equities 8,741 7,468 Overseas equities 8,349 7,575 Diversified growth fuds 11,343 15,026 Property 4,826 4,362 Cash 2,146 1,670 Total growth assets 35, , Total ivested assets 53, , Noe of the fair values of the assets show above iclude ay of the Uited Kigdom Compay s ow fiacial istrumets or ay property occupied by, or other asset used by, the compay. All of the scheme assets have a quoted market price i a active market with the exceptio of the Trustee s bak accout balace. The strategic asset allocatio target is 38% matchig assets ad 62% growth assets. 50 Aual Report 2016 Royal HaskoigDHV

51 Notes to the Cosolidated Fiacial Statemets Defied beefit obligatios Actuarial assumptios The followig were the pricipal actuarial assumptios at the reportig date (i % per aum): Discout rate Iflatio (Retail Price Idex) Iflatio (Customer Price Idex) Allowace for commutatio of pesio for cash at retiremet 60% of Post A Day 80% of Post A Day The discout rate is based o the iboxx AA-rated Uited Kigdom 15-year corporate bod idex. The mortality assumptios adopted at 31 December 2016 are 100% of the stadard tables S2PxA, year of birth, o ageig for males ad females, projected usig CMI_2015 covergig to 1.0% per aum. These imply the followig life expectacies at age 65 years: Logevity at age 65 for curret pesioers Males Females Logevity at age 65 for curret members aged 45 Males Females Sesitivity aalysis Reasoably possible chages at reportig date to oe of the relevat actuarial assumptios, holdig other cosumptios costat, would have affected the defied beefit obligatio by the percetages show below: Discout rate Decrease of 0.1% per aum 2% icrease 2% icrease Rate of iflatio Icrease of 0.1% per aum 2% icrease (of iflatio-liked) 2% icrease (of iflatio-liked) Rate of mortality Icrease of life expectacy of 1 year 2% icrease 2% icrease The average duratio of the defied beefit obligatio at the period edig at 31 December 2016 is 19 years (2015: 16 years). The pla typically exposes the Compay to actuarial risks such as ivestmet risk, iterest rate risk, mortality risk ad logevity risk. A decrease i corporate bod yields, a rise i iflatio or a icrease i life expectacy would result i a icrease to pla liabilities. This would detrimetally impact the balace sheet positio ad may give rise to icreased charges i future P&L accouts. This effect will, however, ow be partially offset as a result of the ivestmet i LDI assets. Additioally, caps o iflatioary icreases are i place to protect the pla agaist extreme valuatio. Followig the completio of the trieial valuatio of the scheme as at 31 October 2015, the level of regular deficit fudig icreased to 1.3 millio per aum from the start of 2017 ad icreased thereafter by 3% per aum, plus additioal aual cotributios of 0.02 millio per year to a maximum of 0.1 millio per aum thereafter, util the ext review as at 31 October 2018 which is expected be completed by the ed of Aual Report 2016 Royal HaskoigDHV 51

52 Notes to the Cosolidated Fiacial Statemets Reorgaisatio The movemets i 2016 are related to the restructurig of the orgaisatio to be more effective, efficiet ad thus more successful i the market. Log-term employee beefits This item maily relates to future log-service awards. I additio provisios have bee made for madatory severace ad disability schemes i a umber of overseas coutries of operatio. Other provisios Other provisios relate to the old age pesio act (AOW) for employees that have bee abroad for a loger period of time. The expected utilisatio period of these provisios is betwee oe ad five years. 12 NON-CURRENT LIABILITIES At 31 December 2016 Repaymet obligatio i 2017 Remaiig term > 1 year Remaiig term > 1 year Loas Fiacial lease liabilities , Per 31 December 2016 the facility with two baks i the Netherlads cosists of: revolvig credit facility: 17 millio overdraft facility: 10 millio multipurpose facility: 20 millio guaratee facility: 50 millio As security there is a pledge o the receivables of the borrowers. The facility has a Euribor deomiated iterest rate (1-moth Euribor for the draft facility ad 3/6 moth Euribor for the revolvig credit facility). A amout of 7 millio is capped to a rate of 0.25% with a optio cotract with a uderlyig value of 7 millio. The optio cotract matures i December The fair value of the optio cotract per balace date is il. The credit margi o the loas is based o the leverage ratio (et debt/ebitda); a lower leverage ratio results i a lower credit margi. The debt coveat for this facility states that the leverage ratio must ot exceed 2.0 at 31 December 2016 ad the iterest coverage ratio shall ot be lower tha 4.0. At 31 December 2016, the leverage ratio (et debt/ebitda) is -1.9 ad the iterest coverage ratio is Koiklijke HaskoigDHV Groep B.V. has closed a guaratee facility of 5 millio with a bak i the Netherlads. Parallel to the loa/guaratee facilities the group has loa facilities with baks i South Africa ( 3.1 millio Prime Rate deomiated overdraft facility; 1.4 millio guaratee facility; 1.0 millio asset fiace) ad the Uited Kigdom ( 2.9 millio Bak of Eglad Base Rate deomiated overdraft facility; 2.9 millio guaratee facility). There are o securities give for the facility i South Africa. I the Uited Kigdom bakig facilities are secured with a debeture; a writte agreemet betwee leder ad borrower, filed at Compaies House. The debeture holder has the rights to ay ad all assets should the compay become isolvet. I other coutries the group has guaratee facilities of 2.9 millio. I total the compay has 116 millio bakig facilities. Withi these facilities 34 millio ca be used for loas, 62 millio ca be used for guaratees ad 20 millio ca be used for both loas ad guaratees. At 31 December 2016 the Group had cotiget liabilities i respect of guaratees provided to third parties i the ordiary course of busiess to the value of 48.1 millio. 52 Aual Report 2016 Royal HaskoigDHV

53 Notes to the Cosolidated Fiacial Statemets 13 CURRENT LIABILITIES Amouts owed to credit istitutios 3,788 5,034 Short term part of o-curret liabilities Trade payables 40,144 46,964 Corporate icome tax 2,724 7,597 Other taxes & social security charges 23,878 26,371 Holiday allowace 7,071 7,358 Amouts owed to participatig iterests 85 1,406 Pesio premiums 793 3,245 Leave etitlemets 10,366 10,704 Accrued expeses 10,331 14,051 Work i progress 16,688 1,249 Other short term liabilities 13,347 11,528 Total 129, ,554 All curret liabilities fall due i less tha oe year. The fair value of the curret liabilities approximates the book value due to their short-term character. Other taxes & social security charges iclude payroll taxes of 6.7 millio (2015: 8.9 millio) ad VAT of 14.4 millio (2015: 17.5 millio). Icluded i accrued expeses are accruals for accommodatio, ICT costs ad project related costs of 4.1 millio (2014: 5.5 millio), staff related accruals of 2.2 millio (2015: 3.7 millio) ad other of 3.5 millio (2015: 4.8 millio). 14 FINANCIAL INSTRUMENTS Geeral Durig the ormal course of busiess, the compay uses various fiacial istrumets that expose it to market, currecy, iterest, cash flow, credit ad liquidity risks. To cotrol these risks, the compay has istituted a policy icludig a code of coduct ad procedures that are iteded to limit the risks of upredictable adverse developmets i the fiacial markets ad thus for the fiacial performace of the compay. The compay applies derivatives, icludig forward exchage cotracts ad purchased iterest rate optios to cotrol its risks. The compay does ot trade i fiacial derivatives. Credit risk Credit risk arises pricipally from the compay receivables preseted uder trade ad other receivables ad cash. The maximum amout of credit risk that the compay icurs is 255 millio, cosistig of trade receivables ( 149 millio excludig the provisio for bad debts), other receivables ( 30 millio) ad cash ( 76 millio). The credit risk is cocetrated at a large umber of couterparties, the highest receivable amouts to 5.2 millio. A log stadig relatioship exists with this couterparty. The compay exposure to credit risk is iflueced maily by the idividual characteristics of each customer. However, maagemet also cosiders the demographics of the Group s customer base, icludig the default risk of the idustry ad coutry i which customers operate, as these factors may have a ifluece o credit risk. Geographically, o the other had, the credit risk is approximately 48% cocetrated i the Netherlads. Maagemet has established a credit policy uder which each ew customer is aalysed idividually for creditworthiess before, preferably, the Group s stadard paymet ad delivery terms ad coditios are offered. The Group s review icludes exteral ratigs, whe available ad purchase limits are established for each customer, which represet the maximum ope amout without requirig approval from the maagemet. Customers that fail to meet the Group s bechmark creditworthiess may trasact with the Group oly o a prepaymet basis. A large part of the Group s customers have bee trasactig with the Group for over four years. Impairmet losses have bee recogised agaist these customers. At balace date the provisio for bad debts amouted to 16.9 millio. Aual Report 2016 Royal HaskoigDHV 53

54 Notes to the Cosolidated Fiacial Statemets Iterest rate risk I order to mitigate the iterest risk the compay faces o the usage of the cetral loa facility, the compay has purchased a iterest rate cap optio. The optio protects the compay from a icreasig iterest rate. The purchased optios have a strike rate of 0.25%. If market iterest (3 moth EURIBOR) rises above 0.25% the optio will start to pay out. Below the strike level, the compay pays the prevailig market rate o the loas. At balace date the market value of the iterest rate cap optio is il. At year ed the outstadig istrumet is as follows: Outstadig amout Maximum iterest payable cap Start date Ed date 1 7, % 27/12/ /12/2017 Currecy risk The Group is exposed to currecy risk o sales deomiated i a currecy other tha the respective fuctioal currecies of Group etities, primarily the Euro, but also Poud Sterlig (GBP). The currecies i which these trasactios primarily are deomiated are USD ad SAR. The group aims to mitigate as much as possible of its foreig currecy exposure i respect of cotracted sales. The currecy risk of et ivestmets i foreig subsidiaries is ot hedged. The curret view o this traslatio exposure is that our ivestmets are log term ad as such are ot hedged through short term istrumets as Foreig Exchage derivatives. The et currecy positio (EUR) of hedged cotracts as at 31 December is specified below: Estimated fair value Cotract value/ fictitious pricipal amouts Estimated fair value Cotract value/ fictitious pricipal amouts EUR/USD (577) 13,783 (95) 5,115 EUR/SAR (34) 9,181 (525) 16,707 EUR/COP (22) ,173 EUR/MXN (63) 3, ,640 EUR/TWD (93) 1,917 (7) 2,565 GBP/USD (93) 4,430 (57) 4,989 GBP/OMR (28) 1,112 (6) 263 ILS/USD 22 9, Other (91) 2,719 (207) 11,376 (979) 47, ,828 The cotracts expire i the ext three years. Liquidity risk Maagemet esures that the cash positio is sufficiet to meet the compay s fiacial obligatios towards creditors ad to stay withi the limits of its loa coveats. For further details regardig our bak facility we refer to ote Aual Report 2016 Royal HaskoigDHV

55 Notes to the Cosolidated Fiacial Statemets 15 COMMITMENTS AND CONTINGENCIES NOT INCLUDED IN THE BALANCE SHEET Operatioal leases Less tha 1 year Betwee 1 ad 5 years More tha 5 years Total Total Equipmet / utilities Buildigs retal / lease 13,587 34,063 26,075 73,725 82,222 Car lease 4,335 6,928-11,263 12,308 ICT lease 6,416 6,882-13,298 14,670 24,338 47,873 26,075 98, ,350 I 2016, the commitmets esuig from this recogised i the profit ad loss accout amouted to 28.4 millio (2015: 30.4 millio). Cotiget liabilities The Compay i the Netherlads is liable for ay obligatios arisig uder the Dutch Sequetial Liability Act. The Compay executes certai projects i partership with other parties. Based o cotractual agreemets, the Compay bears joit ad several liabilities for the cotractual obligatios of the partership resultig from these projects. Tax group liabilities The Compay forms a tax etity for VAT ad icome tax i the Netherlads with a umber of group compaies (see page 69). Uder the stadard coditios, the Compay ad its fellow members of the tax group are joitly ad severally liable for ay taxes owed by the group. By virtue of its operatios i various coutries, the Compay icurs operatioal ad/or tax claims. Where their effect is more likely tha ot ad ca be reasoably estimated, such claims are provided for as soo as they arise. The existig provisios are cosidered sufficiet to cover the potetial cosequeces of pedig claims. Cotigecies The Compay is ivolved i certai legal proceedigs relatig to its projects. Provisios have bee created for these i so far as these are ecessary based o the maagemet s best estimate. Share Pla For details about the compay s share pla we refer to page 78. Aual Report 2016 Royal HaskoigDHV 55

56 Notes to the Cosolidated Fiacial Statemets 16 NET TURNOVER The et turover by geographical area ca be broke dow as follows: The Netherlads 294, ,153 Africa, Middle East ad Idia (excl. SA) 93,577 90,798 Asia Pacific 67,751 74,873 South Africa 44,928 63,006 Cotietal Europe (excl. NL) 42,909 42,331 Americas 39,979 38,068 Uited Kigdom 37,151 47, , ,967 The et turover by busiess lie ca be broke dow as follows: Idustry & Buildigs 211, ,792 Trasport & Plaig 152, ,004 Maritime & Aviatio 142, ,627 Water 113, , , ,967 See key figures o page 4 for % segmetatio of turover by cliet group, market group ad regio. 17 SHORT-TERM EMPLOYEE BENEFITS Salaries ad wages 273, ,477 Social security charges 29,588 29,987 Pesio costs 31,035 33, , , Aual Report 2016 Royal HaskoigDHV

57 Notes to the Cosolidated Fiacial Statemets 18 REMUNERATION REPORT UNDER RESPONSIBILITY OF THE SUPERVISORY BOARD Remueratio Executive Board Curret ad former maagig directors Base salary Social premiums / other allowaces Variable Pesios 2016 Total 2015 Total E. Oostwegel (Chairma) N.G. Dalstra (CFO, member sice ) J.M. de Bakker (util ) H.J.D. Rowe (util ) Former members ,472 2,145 The objectives of the remueratio policy for members of the Executive Board are to alig idividual ad compay performace, stregthe log-term commitmet to the Compay, ad attract ad retai the best executive maagemet talet. The policy aims to safeguard the Compay s performace ad growth, as well as to positio the compay as a attractive employer. The remueratio levels for the Executive Board members are based o surveys ad aalyses by iteratioally recogised firms specialisig i executive compesatio. The Supervisory Board compares market remueratio of Dutch ad some Europea peer compaies to bechmark the remueratio of the Executive Board positios. I 2016 the job ad remueratio levels of the CEO ad CFO were bechmarked for the first time sice As a result of the bechmark, the CEO s Hay grade icreased with oe scale level. The CFO s Hay grade remaied at the level it was before. The bechmark both took the geeral market ad the direct peer group ito accout. The geeral policy for the Executive Board remueratio is to set the base salary at media level of the direct peer group (Dutch ad some relevat EU compaies), which is approximately Q1 level of the Dutch geeral market. The remueratio policy implies that the total cash compesatio (= base salary + Short Term Icetive) should be at the media level of the direct peer group as well. The o target Short Term Icetive for the Executive Board is below the Short Term Icetive of the direct peer group (28% versus 40-45%). Both the geeral market ad the direct peer group have Log Term Icetive plas, at a value of approximately 45% of base salary i place, which Royal HaskoigDHV has ot. The severace paymet is capped at oe year s salary. As from July , the base salary for Erik Oostwegel was set at 475,000, i lie with the bechmark. The base salary for Nyke Dalstra was set at 330,000, also at direct peer group level. The maximum Short Term Icetive amouts to 40% of the base salary. The Supervisory Board aually decides o the actual percetage for that year, based o previously agreed key performace idicators. These KPIs iclude both fiacial targets (max out of 40%), ad sice 2016 others such as sustaiability, Cliets satisfactio, Employee Egagemet ad the icrease i Project Maagemet capabilities i the compay (max. 12.5% out of 40%). The 2016 fiacial results lead to a variable pay of 21.8%. The performace o ofiacial targets leads to a variable pay of 8.4%, thus totallig to a Short Term Icetive of 30.2%. The Short Term Icetive is, i priciple, payable i depositary receipts. Royal HaskoigDHV offers the members of the Executive Board a package of secodary employmet beefits i accordace with the geeral labour coditios for Netherlads staff. The beefit package of the Executive Board icludes disability isurace, a compay car ad a Director s Liability isurace. The Compay does ot issue loas or guaratees to the members of the Executive Board. Remueratio Supervisory Board The remueratio of the members of the Supervisory Board remaied uchaged. Aual Report 2016 Royal HaskoigDHV 57

58 Notes to the Cosolidated Fiacial Statemets Curret ad former Supervisory board members J.A.P. va Ooste (Chairma) P.M.M. Blauwhoff (member sice ) J. Bout A.M. Paulusse-Hoogakker (member sice ) J.S.T. Tiemstra Former members OTHER OPERATING COSTS Temporary staff 15,750 15,730 Office expeses 25,270 25,085 Travel ad accommodatio 21,503 22,716 Occupacy costs 21,739 21,597 Work by third parties 6,540 7,459 Additioal persoel expeses 8,145 8,583 Other operatig expeses 11,793 3,764 Restructurig costs ad other oe-off items 2,451 6, , ,539 Restructurig costs iclude provisios for staff redudacy. Icluded i other operatig costs is a loss o exchage rate differeces of 0.1 millio (2015: gai 1.8 millio). Auditor s fees The followig auditor s fees were expesed i the icome statemet i the reported period (icluded i Work by third parties) to the statutory auditor of the Group: KPMG Accoutats N.V. Other KPMG etwork Total KPMG Total KPMG Audit of the fiacial statemets Other audit related services Tax-related advisory services Other o-audit services Aual Report 2016 Royal HaskoigDHV

59 Notes to the Cosolidated Fiacial Statemets 20 INCOME TAX EXPENSE The major compoets of the tax expese are as follows: Tax liability for curret fiacial year 6,430 8,233 Movemet i temporary differeces (264) 680 Adjustmet i valuatio of deductible losses Adjustmet for prior periods 288 (131) Other adjustmets (3,223) 273 Tax expese 3,612 9,351 The applicable weighted average tax rate is 24.8% (2015: 27.2%), whereby the weighted average has bee calculated based o the results before taxes i the various tax jurisdictios. The tax expese recogised i the icome statemet for 2016 amouts to 3.6 millio, or 23.0% of the result before tax ad share i result of participatig iterests (2015: 43.8%). The umerical recociliatio betwee the applicable ad the effective tax rate is as follows: Profit before tax 15,673 21,347 Statutory tax rate NL 3,918 25% 5,337 25% Chages related to: Utilisatio of previously reserved loss carryforwards (583) (3.7%) (527) (2.5%) New loss carryforwards ot expected to be realised % % Additio (releases) of temporary differeces ot expected to be realised - 0.0% % No tax deductible goodwill amortisatio 1, % 1, % No taxable icome (886) (5.7%) (668) (3.1%) No tax deductible expeses % % Withholdig ad foreig taxes 1, % 1, % Tax rate differeces (24) (0.2%) % Prior year tax results % (131) (0.6%) Tax expeses due to other liabilities (1,290) (8.2%) (194) (0.9%) Tax icetives ad other (1,909) (12.2%) - - Effective tax rate 3, % 9, % Other adjustmets relate to amogst others urecoverable taxes, withholdig taxes ad chages i the tax provisio. Aual Report 2016 Royal HaskoigDHV 59

60 Notes to the Cosolidated Fiacial Statemets 21 NUMBER OF EMPLOYEES Durig the year 2016 o average 5,444 (2015: 6,089) employees were employed by the Group. The head cout* per ed of year by geographical area ca be broke dow as follows: The Netherlads 2,739 2,880 South Africa Asia Pacific Uited Kigdom Africa, Middle East ad Idia (excl. SA) Cotietal Europe (excl. NL) Americas ,166 5,722 The head cout* per ed of year is split by the followig busiess lies: Idustry & Buildigs 1,513 1,640 Trasport & Plaig 1,169 1,297 Water 1,038 1,216 Maritime & Aviatio Corporate Groups ,166 5,722 *Numbers are excludig flexible workforce ad miority iterests. 22 CHANGES IN CONSOLIDATED INVESTMENTS The followig ivestmets ad divestmets were made i 2016: Coutry Holdig at 01/01/2016 Acquired / divested Holdig at 31/12/2016 Merged: Bierhaus Costructeurs B.V. The Netherlads Iraco B.V. The Netherlads HaskoigDHV Idia PvT Ltd. Idia Disposal: DHV (Beijig) Evirometal Egieerig Co. Ltd. Chia 100.0% (100.0%) 0.0% Decosolidatio: Cosortio Dique* Colombia *Reassessig the factual circumstaces ad the actual state of affairs made us coclude that Cosortio Dique is t a group etity, the Group does t have cotrol ad therefore does t eed to cosolidate Cosortio Dique aymore. 23 RELATED PARTY TRANSACTIONS The Group s related parties comprise joit vetures, the Executive Board, the Supervisory Board, Stichtig HaskoigDHV ad Stichtig Admiistratiekatoor HaskoigDHV. A extesive list of subsidiaries ad joit vetures is disclosed o page 75 to 77. All trasactios with related parties are at arm s legth basis. 60 Aual Report 2016 Royal HaskoigDHV

61 Compay Fiacial Statemets Aual Report 2016 Royal HaskoigDHV 61

62 Compay Balace Sheet at 31 December 2016 Before profit appropriatio thousads Assets Note Fixed assets Itagible fixed assets 25 10,488 11,643 Fiacial fixed assets , , , ,677 Curret assets Receivables 27 27,336 13,098 Cash ad cash equivalets ,497 13, , ,221 Shareholders equity & liabilities Note Shareholders equity Issued share capital 5,000 5,000 Share premium - - Foreig currecy traslatio reserve (8,204) (9,171) Legal ad statutory reserves 2,289 3,143 Other reserves 112, ,476 Uappropriated result 12,485 11,531 Subtotal , ,979 Provisios No-curret liabilities Curret liabilities 31 31,579 60, , , Aual Report 2016 Royal HaskoigDHV

63 Compay Icome Statemet 2016 thousads Note Share of result of participatig iterests after tax 15,363 17,998 Compay result after tax (2,878) (6,467) Net result 12,485 11,531 Aual Report 2016 Royal HaskoigDHV 63

64 Notes to the Compay Fiacial Statemets 24 GENERAL INFORMATION The compay fiacial statemets have bee prepared i accordace with the statutory provisios of Part 9, Book 2, of the Netherlads Civil Code ad the fiacial reportig requiremets as set forth i the Guidelies for Aual Reportig i the Netherlads. Sice the icome statemet for 2016 of Koiklijke HaskoigDHV Groep B.V. is icluded i the cosolidated fiacial statemets, a abridged icome statemet has bee disclosed (i the compay fiacial statemets) i accordace with Sectio 402, Book 2, of the Netherlads Civil Code. The accoutig policies for the compay fiacial statemets ad the cosolidated fiacial statemets are the same. Group compaies are stated at et asset value i accordace with ote 2.6 to the cosolidated fiacial statemets. For accoutig policies for the compay balace sheet ad icome statemet, referece is made to the otes to the cosolidated balace sheet ad icome statemet o pages 36 to INTANGIBLE FIXED ASSETS Movemets i itagible fixed assets ca be broke dow as follows: Goodwill At 1 Jauary 2016 Cost 28,319 Accumulated impairmet ad amortisatio (16,676) Book value 11,643 Movemets Amortisatio (1,155) Subtotal (1,155) At 31 December 2016 Cost 28,319 Accumulated impairmet ad amortisatio (17,831) Book value 10,488 Amortisatio rate i % 5 64 Aual Report 2016 Royal HaskoigDHV

65 Notes to the Compay Fiacial Statemets 26 FINANCIAL FIXED ASSETS Movemets i fiacial fixed assets ca be broke dow as follows: Participatig iterests Loas to participatig iterests Deferred icome Tax assets Other fiacial fixed assets Total At 1 Jauary ,085 18,228 2, ,034 Ivestmets / additios 18,339 2, ,701 Repaymets / utilisatio - (353) - - (353) Reclassificatio - (14,783) - - (14,783) Share of result i participatig iterests 15, ,363 Exchage differeces Divided (52,004) (52,004) Disposals (493) (493) Other movemets (8,836) (8,832) At 31 December ,695 6,233 3, ,599 Participatig iterests Four of the participatig iterests have a egative equity value with a total value of 1.5 millio (2015: 2.1 millio). Ivestmets maily relates to capital cotributio i HaskoigDHV UK Holdigs Ltd. ( 14.9 millio) ad Haskoig Iteratioal B.V. ( 3.0 millio). I the other movemets the remeasuremet of the Uited Kigdom pesio fud is icluded ( 8.8 millio). The participatig iterests are 100% related to group compaies. For a extesive list of participatig iterests we refer to page 75. Divided has bee paid by HaskoigDHV Nederlad B.V. ( 52.0 millio). Loas to participatig iterests Receivables from participatig iterests icludes loas to RoyalHaskoigDHV (Pty) Ltd. of 3.6 millio (2015: 3.2 millio) ad IterVISTAS Holdig Ic. of 2.5 millio (2015: 0 millio). The loas are provided for fudig ad cash maagemet purposes. The majority of the loas has a permaet ature. Nothig has bee agreed i respect of securities. A amout of 14.8 millio has bee reclassified to Amouts owed from group compaies / subsidiaries withi the Receivables (ote 27), because these loas do ot have a permaet ature. The iterest icome o loas to associates amouted to 0.6 millio (2015: 0.8 millio). 27 RECEIVABLES Amouts owed from group compaies / subsidiaries 26,129 12,365 Receivables Stichtig STAHD - 56 Other receivables, prepaymets ad accrued icome 1, ,336 13,098 Aual Report 2016 Royal HaskoigDHV 65

66 Notes to the Compay Fiacial Statemets 28 SHAREHOLDERS EQUITY The authorised ad issued share capital amouts to 5,000,000, divided ito ordiary shares of 1.00 each, split by A ad B class shares (with equal votig rights). For further iformatio regardig the shareholder structure we refer to page 78. Depositary receipts (DRs) of the B class shares are sold to employees durig a aual trade roud. I the evet that more DRs are offered tha requested by employees i ay future year, there is a itetio to buy back DRs by Stichtig Admiistratiekatoor HaskoigDHV to a maximum of 2.5% of the total umber of A ad B shares i Koiklijke HaskoigDHV Groep B.V. This is subject to approval of the Supervisory Board A shares B shares A shares B shares Stichtig HaskoigDHV 4,717,359-4,717,359 - Stichtig Admistratiekatoor HaskoigDHV - 225, ,261 Koiklijke HaskoigDHV Groep B.V. - 57,146-44,380 4,717, ,641 4,717, ,641 Durig the trade roud i May 2016, 41,731 DRs were bought ad 54,497 DRs were sold. The balace of DRs bought ad sold (12,766) was purchased by the compay (total value of 0.3 millio price 27.06). I priciple short term icetives ad profit sharig are payable i DRs. Subject to adoptio of the fiacial statemets 2016 by the Aual Geeral Meetig, the price will rise by 7.2% to Icludig the proposed divided of 1.23 (see Proposed profit appropriatio, page 68) the total retur for the DR holders is 11.8%. The movemet i DRs is as follows: Balace at 1 Jauary 238, ,607 Bought 41,731 39,319 Sold (54,497) (19,665) 225, , Aual Report 2016 Royal HaskoigDHV

67 Notes to the Compay Fiacial Statemets Statemet of chages i shareholders equity Movemets i shareholders equity ca be broke dow as follows: Issued share capital Foreig currecy traslatio reserve Legal ad statutory reserves Other reserves Uappropriated result Total Total At 1 Jauary 5,000 (9,171) 3, ,476 11, , ,333 Movemets Legal ad statutory reserves - - (854) Exchage rate differeces (1,542) Uappropriated result ,485 12,485 11,531 Trasfer result last year to ,531 (11,531) - - other reserves Ow shares sold / (repurchased) (345) - (345) 490 Divided (292) - (292) (140) Other movemets i reserves (8,833) - (8,833) 1,307 Subtotal (854) 2, ,982 11,646 At 31 December 5,000 (8,204) 2, ,391 12, , ,979 The recociliatio of the statutory ad cosolidated equity of Koiklijke HaskoigDHV Groep B.V. is as follows: Equity Koiklijke HaskoigDHV Groep B.V. (followig the compay fiacial statemets) 123, ,979 Equity DHV Educatio Foudatio (1,698) (1,089) Equity Koiklijke HaskoigDHV Groep B.V. (followig the cosolidated fiacial statemets) 122, ,890 The recociliatio of the statutory ad cosolidated result of Koiklijke HaskoigDHV Groep B.V. is as follows: Result Koiklijke HaskoigDHV Groep B.V. (followig the compay fiacial statemets) 12,485 11,531 Result DHV Educatio Foudatio (356) 315 Result Koiklijke HaskoigDHV Groep B.V. (followig the cosolidated fiacial statemets) 12,129 11,846 Foreig currecy traslatio reserve Exchage gais ad losses arisig from the traslatio of foreig operatios from fuctioal to reportig currecy are accouted for i this statutory reserve. Legal ad Statutory reserves The legal ad statutory reserves cosist of a statutory reserve for uappropriated icome of participatig iterests of 2.0 millio ad a legal reserve of 0.3 millio i Portugal ad Belgium. Aual Report 2016 Royal HaskoigDHV 67

68 Notes to the Compay Fiacial Statemets Other reserves Icluded i other movemets is the Defied Beefit Pesio Pla Uited Kigdom. The movemet relates to the et balace of actuarial gais ad losses, after deductio of deferred tax, i respect of the closed pesio scheme i the Uited Kigdom, which has bee directly charged to the reserves. Further referece is made to ote 11. Proposed profit appropriatio Give the profit over 2016, the Executive Board proposes that a divided of 1.23 per B-share will be distributed to holders of B shares, represetig a value of Due to the depositary receipts Rules ad Regulatios this divided will be distributed to the depositary receipt holders o a oe-to-oe basis. The Executive Board proposes that o divided will be distributed to the A shares ad B shares held by Koiklijke HaskoigDHV Groep. The remaiig profit of will be added to the other reserves. 29 PROVISIONS The provisios are maily related to log-term employee beefits. 30 NON-CURRENT LIABILITIES For terms ad coditios of the loa ad guaratee facility, refer to ote 12 of the cosolidated otes o page CURRENT LIABILITIES Amouts owed to credit istitutios 14,646 51,796 Amouts owed to group compaies / subsidiaries 14,834 2,971 Corporate icome tax 1,441 5,090 Other taxes & social security cotributios Other debts, accruals ad deferred icome ,579 60,875 All curret liabilities fall due i less tha oe year. The fair value of the curret liabilities approximates the book value due to their short-term character. 32 COMMITMENTS AND CONTINGENCIES NOT INCLUDED IN THE BALANCE SHEET At 31 December 2016 the compay had cotiget liabilities i respect of guaratees provided to third parties i the ordiary course of busiess to the value of 7.9 millio. Koiklijke HaskoigDHV Groep B.V. has issued a corporate guaratee to Castor (Amersfoort) B.V., i which it guaratees the fulfilmet of the retal obligatios related to the head office i Amersfoort. The guaratee amouts to a retal period of maximum five years ad the term of the guaratee is equal to that of the lease. 68 Aual Report 2016 Royal HaskoigDHV

69 Notes to the Compay Fiacial Statemets 33 TAX GROUP LIABILITIES The compay forms a corporate icome tax group with: HaskoigDHV Nederlad B.V. HaskoigDHV Asset Maagemet B.V. Haskoig Iteratioal B.V. Haskoig Iteratioal Services B.V. Haskoig B.V. De Weger Architecte e Igeieursbureau B.V. DHV Chia B.V. DHV Global Egieerig Ceter B.V. DHV NPC B.V. Uder the stadard coditios, the members of the tax group are joitly ad severally liable for ay taxes payable by the group. 34 JOINT AND SEVERAL LIABILITIES AND GUARANTEES The compay has issued o declaratios of joit ad several liabilities for debts arisig from legal acts of Dutch cosolidated participatig iterests. Amersfoort, the Netherlads March 10, 2017 Executive Board E. Oostwegel (CEO) N.G. Dalstra (CFO) Supervisory Board J.A.P. va Ooste (Chairma) P.M.M. Blauwhoff J. Bout A.M. Paulusse-Hoogakker J.S.T. Tiemstra Aual Report 2016 Royal HaskoigDHV 69

70 Read our 2016 Aual Report olie magazie 70 Aual Report 2016 Royal HaskoigDHV