Skills evaluation at Royal IHC Date April 24

Skills evaluation at Royal IHC Date, April 24 th 2015 Pim Huizing

Agenda: • About Royal IHC • Evaluation of the Skills at Royal IHC • Challenges of Technological Developments at Royal IHC • Questions

About IHC: Company profile • Markets • Dredging • Offshore • Mining • Global market leader Oil & gas Dredge + marine (deep-sea) mining Customers • • Dredging operators Oil & gas corporations Offshore contractors Government authorities

About IHC: Markets → dredging • Long-term business drivers: • • Global population growth Climate change Expansion of global trade Booming tourism and recreation

About IHC: Markets → offshore • Long-term business drivers: • • Economic growth (China, Brazil) Increasing global demand for energy Declining oil supplies onshore Deep-water technology

About IHC: Markets → marine mining • Long-term business drivers: • • Mining goes offshore New frontiers

About IHC: Shipyards in The Netherlands • Design and construction of complex vessels up to 38 m wide and 240 m long Hardinxveld Giessendam Krimpen a/d IJssel Kinderdijk Sliedrecht

About IHC: Key figures • Consolidated profit and loss account (in € million) • • 2009 2010 2011 2012 2013 Turnover 1, 126 1, 008 1, 050 895 985 EBITDA 102 153 161 84 108 Net result 59 101 103 37 56 Order book 1, 130 1, 167 1, 179 964 1, 743 Employees (number) 3, 060 3, 016 3, 109 3, 239 3, 224 Hugely flexible capacity Sizeable order book Strong balance sheet Healthy cash flow

Evaluation of the skills at Royal IHC (1) • We see a need for more, higher educated employees for the coming years in the following disciplines; Sales • Sales: • Engineering: • Production: Engineering Production We need to change the structure of our sales force due to changing need of our customers; Increasing need for basic engineers and a decreasing number of detailed engineers; Less production employees in the coming years due to the shift to countries outside the Netherlands such as: Poland, Rumania, Croatia, China, Vietnam.

Evaluation of the skills at Royal IHC (2) • We have already for years our own company school where we educate in 2 years time around 30 young people in welding and iron working on an annual basis; • We working on an increase of the entrance level of young people that enter the school in order to be able to train them to a higher level like (service) engineers; • We are closely cooperating with universities like TU Delft in order to attract students from them; • We are planning to shift one of our R&D-departments to the campus of the TU Delft in order to cooperate more closely with them.

Challenges of Technological Developments at Royal IHC (1) • Royal IHC designs, builds and maintain innovative vessels and equipment from sea level to ocean floor for maritime service providers in offshore, dredging and mining. • Today we spent more than 3% of our turnover in R&D; • One off the key challenges is to translate the R&D effort in marketable products;

Challenges of Technological Developments at Royal IHC (2) • Key challenges for example we see today are: • Offshore vessels that are able to lay pipes on a depth more than 3. 000 meter. • Dredging fully automated vessels; green vessels (we will build 2 dredgers with LNG engines); vessels that are able to dredge at more depth.

QUESTIONS?