DEME Group NV

Earnings Release • Feb 28, 2024

FULL YEAR RESULTS 2023

22% surge in orderbook, turnover record high at € 3.3 bn and profits on the rise

Regulated information

DEME Group NV, Zwijndrecht, 28 February 2024, 7:00 am CET Today DEME (Euronext: DEME.BR) announced the results for the full year ended 31 December 2023

HIGHLIGHTS FINANCIAL YEAR 2023

• ‒ Orderbook grew 22% year-over-year to 7,582 million euro, up from 6,190 million euro in 2022
• ‒ Group turnover grew 24% year-over-year to 3,285 million euro, up from 2,655 million euro in 2022
• ‒ EBITDA rose 26% year-over-year, reaching 596 million euro, or 18.2% of turnover, up from 474 million euro or 17.9% of turnover in 2022
• ‒ Net profit increased 44% and amounted to 163 million euro compared to 113 million euro a year ago
• ‒ Capital expenditure amounted to 399 million euro, compared to 484 million euro in 2022 reflecting continued investments in DEME's fleet
• ‒ Strong free cash flow generation in the second half of the year contributing to a 512 million euro net financial debt position (or 0.9 times EBITDA) at the end of 2023 compared to 521 million euro (or 1.1 times EBITDA) at the end of 2022
• ‒ Proposal for a gross dividend of 2.1 euro per share, an increase of 40% year-over-year

For 2023, thanks to our capable and dedicated team at DEME, we delivered outstanding results, achieving a 24% growth in turnover and a 26% increase in EBITDA. These figures reflect the effective execution of a variety of projects around the world in all segments while the broader offshore wind market adapted to changing market conditions. In addition, the orderbook reached a robust 7.6 billion euro including sizeable wins across the board which demonstrate DEME's strong market position and the healthy demand for our capabilities.

On the strength of these outstanding results, we enter 2024 confident in our ability to capture the growth opportunities ahead. DEME is strategically well positioned to continue playing a pivotal role in facilitating the transition to clean energy, addressing environmental challenges and ensuring the reliability and open access of marine trade. We are well equipped to navigate a dynamic market landscape and deliver on our sustained profitable growth ambition supported by our expanded and enhanced fleet capabilities, and our dedicated and highly skilled team.

LUC VANDENBULCKE | CEO OF DEME

EXECUTIVE SUMMARY

Driven by strong demand across all segments, the orderbook increased 22%, compared to 31 December 2022. This growth is mainly attributed to a series of contract awards in both the Offshore Energy and Dredging & Infra segments, representing further global expansion.

All segments contributed to the Group turnover growth of 24%.

In particular, Offshore Energy achieved an outstanding 57% growth in turnover, reflecting the execution of installation projects in Europe, Taiwan and the US, with the latter two regions illustrating the segment's geographical growth strategy. Additionally, Offshore Energy began to reap the benefits of its recently expanded capacity while further incorporating 'Green Jade', a new floating installation vessel and 'Viking Neptun' a cable laying vessel to its fleet in 2023. Dredging & Infra contributed a solid 5% growth in turnover, reflecting a solid performance and high utilization starting in the second half of the year. The segment executed a range of projects globally, including maintenance and capital dredging activities.

Environmental delivered a remarkable 48% increase in turnover, driven in part by increased market demand resulting from stricter environmental legislation as well as by sustained excellence in long-term projects, particularly in Belgium and the Netherlands.

In 2023, DEME generated an EBITDA of 596 million euro, or a 26% increase compared to the previous year. The EBITDA margin was 18.2%, up from 17.9% in 2022.

Dredging & Infra held its position as a key EBITDA contributor to the Group, with a 18.6% margin for the year, compared to 16.7% last year. Also Environmental delivered a solid increase in EBITDA margin to 16.8% from 12.1% last year, driven in part by a favorable settlement on a completed project. These increases offset the lower performance in Offshore Energy, which recorded a 15.4% margin, compared to 23.2% the previous year, that primarily reflects challenges in the start-up phases of two projects.

The increase in EBITDA yielded an increase in EBIT of 55% compared to 2022, reaching 241 million euro, equivalent to 7.3% of turnover.

In 2023, the Group's net result from joint ventures and associates amounted to a positive 3.2 million euro. The net profit for the Group for 2023 was 163 million euro up from 113 million euro in 2022.

Operating working capital amounted to -471 million euro as of 31 December 2023 compared to -506 million euro a year ago.

Capital expenditure for the year amounted to 399 million euro, a decrease from the 484 million euro invested in 2022, as the company continued its investment program that was primarily focused on expanding and upgrading the fleet to support future growth.

As a result of the above, DEME's financial position remains healthy with a net financial debt of 512 million euro (or 0.9 times EBITDA) compared to 521 million euro (or 1.1 times EBITDA) at the end of 2022.

OUTLOOK

The following statements are forward looking, and actual results may differ materially.

Given the robust demand trends and a strong orderbook, DEME's management remains confident about the company's growth prospects and expects turnover to continue to grow in the coming years with an annual EBITDA margin in a 16 to 20% range each year.

For 2024, taking into account present geopolitical and market conditions, current orderbook and fleet capacity, management expects a turnover growth of at least 10% compared to 2023 with an EBITDA margin comparable to 2023.

For 2024, capital expenditure is anticipated to be between 300 and 350 million euro for the year, including fleet, upgrade, repair and maintenance investments. The company also expects to further reduce the net financial debt level in 2024.

DIVIDEND

DEME's Board of Directors will propose to the General Assembly to distribute a gross dividend of 2.1 euro per share, an increase of 40% compared to last year. Subject to the approval of the General Assembly, the dividend payment date is proposed to be set at 27 May 2024.

CONSOLIDATED RESULTS FOR THE FINANCIAL YEAR 2023

FINANCIAL FIGURES ORDERBOOK¹

Year-over-year comparison

(in millions of euro)	2023	2022	2021	FY23 vs FY22
Group	7,581.8	6,190.0	5,905.2	+22%

DEME's order backlog increased 22% reaching a level of 7,582 million euro compared to 6,190 million euro in 2022. The overall orderbook at year-end was 2.2 times the 2023 turnover.

The year-over-year increase was driven by continued strong demand and double-digit growth in all contracting segments.

Noteworthy additions in 2023 for the Offshore Energy segment included the projects of Île d'Yeu and Noirmoutiers and Dieppe le Tréport in France, Baltic Power in Poland and Greater Changhua in Taiwan and for Dredging & Infra the Princess Elisabeth Island in Belgium, large dredging works in Abu Dhabi and the Oxagon phase 2 project in Saudi Arabia.

From a geographical perspective all regions, except the Americas region, showed solid increases in 2023. While the breakdown illustrates DEME's presence in all geographies, Europe continues to account for more than half of the orderbook. The aforementioned new projects in Abu Dhabi and Saudi Arabia boosted the orderbook for the Middle East region while the orderbook for the Americas moderated after strong orders intake in 2022 and 2021.

Orderbook by segment

(in millions of euro)	2023	2022	2021	FY23 vs FY22
Offshore Energy	3,754.7	3,260.9	2,816.6	+15%
Dredging & Infra	3,472.4	2,615.7	2,833.3	+33%
Environmental	354.7	313.4	255.3	+13%

Geographical breakdown

(in % of total)	2023	2022	2021	FY23 vs FY22 (in nominal value)
Europe	58%	55%	62%	+31%
Africa	5%	5%	7%	+29%
Asia	12%	13%	6%	+12%
America	18%	27%	25%	-21%
Middle East	7%	0%	0%	N/M

Orderbook run-off

The table represents future values, and actual results may differ materially.

(in millions of euro)	Year N+1	Year N+2	Year N+3	Beyond Year N+3
Orderbook 2021	2,021.2	1,456.9	1,079.1	1,348.0
Orderbook 2022	2,307.5	1,612.4	1,448.2	821.9
Orderbook 2023	3,692.4	2,650.2	916.1	323.1

1 Orderbook is the contract value of assignments that are acquired as of 31 December 2023 that is not yet accounted for as turnover because of non-completion. The amount includes DEME's share in the orderbook of joint ventures, but not of associates.

TURNOVER

Year-over-year comparison

(in millions of euro)	2023	2022	2021	FY23 vs FY22
Offshore Energy	1,501.5	957.8	916.4	+57%
Dredging & Infra	1,604.6	1,524.3	1,478.3	+5%
Environmental	304.3	206.3	166.2	+48%
Concessions	5.0	2.2	1.5	+125%
Total turnover of segments	3,415.4	2,690.6	2,562.3	+27%
Reconciliation2	-130.0	-35.9	-51.7
Total turnover as per financial statements	3,285.4	2,654.7	2,510.6	+24%

As a group, DEME achieved a historic milestone by surpassing 3 billion euro in turnover for the first time. The turnover of the Group grew 24% year-over-year fueled by strong growth in Offshore Energy and Environmental of 57% and 48%, respectively.

Notably, Offshore Energy delivered strong turnover growth, accelerating the conversion of orderbook into turnover as it started to leverage its expanded fleet capacity. The Dredging & Infra segment witnessed a boost in activity levels during the second half of the year, overcoming a -4% decline for the first half to a +5% growth over the full year. The Environmental segment sustained positive growth, primarily driven by its strong positioning within an increasingly stringent environmental regulatory landscape.

DEME's geographic expansion strategy is well represented in the geographical breakdown of the turnover, with strong growth in the Americas region, the Middle East and Asia. The European market grew at a more moderate pace and represented 63% of the global turnover in 2023 compared to approximately 75% in previous years, yet it remains clearly DEME's core region.

(in % of total)	2023	2022	2021	FY23 vs FY22 (in nominal value)
Europe	63%	75%	74%	+3%
Africa	8%	12%	19%	-20%
Asia	8%	8%	5%	+27%
America	18%	5%	2%	+379%
Middle East	3%	0%	0%	N/M

Geographical breakdown

²The reconciliation between the segment turnover and the turnover as per financial statements refers to the turnover of joint ventures. They are consolidated according to the proportionate method in the segment reporting but according to the equity consolidation method in the financial statements.

PROFITABILITY

Year-over-year comparison

(in millions of euro)	2023	2022	2021	FY23 vs FY22
EBITDA	596.5	473.9	469.3	+26%
EBITDA margin	18.2%	17.9%	18.7%
Depreciation & Impairment expenses	-355.2	-318.7	-326.0	+11%
EBIT	241.3	155.2	143.3	+55%
EBIT margin	7.3%	5.8%	5.7%
Net profit	162.8	112.7	114.6	+44%
Net profit margin	5.0%	4.2%	4.6%
EPS (in euro)	6.43	4.45	4.53	+44%

DEME realised an EBITDA of 596 million euro in 2023 (18.2% of turnover), a 26% increase from 474 million euro (or 17.9% of turnover) last year, which included the liquidated damages associated with the late delivery of 'Orion'. EBITDA for Dredging & Infra demonstrated profitability improvement in the second semester driven by increased occupancy and a more favorable project phasing, resulting in a 18.6% EBITDA margin for the year. Also, the Environmental segment contributed a solid EBITDA margin of 16.8% reflecting successful project execution and the positive impact of the settlement on a completed project.

EBITDA for Offshore Energy improved during the second half compared to a relatively weaker first half although EBITDA for the year was impacted by losses recorded on projects in US and Taiwan3.

In the second half of the year, DEME sold 'Groenewind', an offshore service operation vessel, to Cyan Renewables for a gain on disposal of 13 million euro.

With a robust EBITDA, EBIT reached 241 million euro, or 7.3% of turnover, an increase of 55% from the 155 million euro, or 5.8% of turnover recorded in 2022.

Depreciations and impairments increased to 355 million euro compared to 319 million euro in 2022. The higher level of depreciation costs in 2023 is attributed primarily to the investments in 'Orion', DEME's largest offshore installation vessel, that was added to the fleet mid 2022, and in 'Viking Neptun', a cable laying vessel that was integrated into the fleet in the first half of 2023. The amount also includes a 13 million euro impairment for 'Al Jarraf', one of DEME's cutter suction dredger vessels.

In 2023, the net results from joint ventures and associates amounted to 3 million euro, with the net result of the Concessions segment contributing 37 million euro compared to 9 million euro a year ago. This increase was partly driven by higher wind production, increased electricity prices, and the impact of new legislation in Belgium. However, the positive contribution from the Concessions segment was partially offset by the result of DEME's Taiwanese offshore joint venture company, which absorbed project losses on the Zhong Neng project in Taiwan.

The net profit for 2023 amounted to 163 million euro, marking a 44% increase from 113 million euro compared to 2022.

As a result, earnings per share were 6.43 euro compared to 4.45 euro for 2022 or 4.53 for 2021.4

³Joint ventures are consolidated according to the proportionate method in the segment reporting but according to equity consolidation

method in the financial statements. The project in Taiwan is managed by CDWE, a joint venture in which DEME holds a 50% participation.

⁴Pro forma assuming the same amount of shares for 2021 as shares in 2022 and 2023 (25,314,482 shares).

NET FINANCIAL DEBT AND BALANCE SHEET

(in millions of euro)	2023	2022	2021	FY23 vs FY22
Operating working capital	-471.3	-506.2	-511.1	+34.9
Investments	398.9	483.9	282.0	-85.0
Net financial debt	-512.2	-520.5	-392.7	+8.3
Free cash flow	61.6	-80.4	130.7	+142.0

The investments5 in 'intangible assets' and 'property, plant and equipment', as of 31 December 2023, amounted to 399 million euro compared to 484 million euro a year ago.

Investments in 2023 included 'Viking Neptun', DEME's new cable laying vessel which was officially added to the fleet in the first half of 2023, capitalised maintenance investments in DEME's fleet, and modification investments and conversions for 'Sea Installer' and 'Yellowstone', a fall pipe vessel converted from a former bulk carrier and expected to join DEME's Offshore fleet in the first half of 2024.

Excluded from this investment amount is the expenditure for the 'Green Jade', the latest offshore wind installation vessel, which was constructed in Taiwan by CDWE, a joint venture between CSBC, the largest shipbuilder in Taiwan, and DEME and added to the fleet over summer 2023.

Operating working capital6 amounted to -471 million euro as of 31 December 2023 compared to -506 million euro a year ago.

The net financial debt7 was -512 million euro as of 31 December 2023, a slight improvement of 8 million euro compared to 31 December 2022 and a reduction of 203 million euro compared to 30 June 2023. Net financial debt over EBITDA at the end of 2023 was 0.86 compared to 1.09 a year ago and 1.41 at the mid-year point 2023.

Free cash flow8 for the year was positive amounting to 62 million euro, up from -80 million euro the year before, mainly thanks to a strong cash flow generation in the second half of the year.

5 Investments is the amount paid for the acquisition of 'intangible assets' and 'property, plant and equipment'. These investments exclude investments in 'financial fixed assets'.

6 Operating working capital (+ is receivable, - is payable) is net working capital (current assets less current liabilities), excluding interest-bearing debt and cash & cash equivalents and financial derivatives related to interest rate swaps, including other non-current assets and non-current liabilities (if any) as well as non-current financial derivatives (assets and liabilities), except for those related to interest rate swaps.

7 Net financial debt (+ is cash, - is debt) is the sum of current and non-current interest-bearing debt (that includes lease liabilities) decreased with cash and cash equivalents.

8 Free cash flow is computed as the sum of cash flow from operating activities and cash flow from investing activities decreased with the cash flow related to lease repayments that are reported in the cash flow from financial activities.

ESG PROGRESS

ENVIRONMENTAL

EU Taxonomy

(in %)	2023	2022	2021	FY23 vs FY22
Turnover
Taxonomy-eligible activities	42	29	28	+45%
Taxonomy-aligned activities	33	26	24	+27%
CapEx
Taxonomy-eligible activities	49	52	32	-6%
Taxonomy-aligned activities	49	52	32	-6%

Based on the current interpretation of the rules regarding the EU Taxonomy, DEME's eligible activities expanded in 2023 beyond offshore wind and rail infrastructure to now also include parts of DEME's environmental activities, such as remediation of contaminated sites and soil and sediment management.

As a result of this expanded scope and stronger growth in eligible activities, 42% of the total turnover is now eligible compared to 29% a year ago. 33% of the turnover is now qualified as aligned compared to 26% last year. Taxonomy-eligible and aligned capital expenditures remained in the same range at 49%, compared to 52% last year. In the sections below we provide some more insights on these developments.

(megawatts)	2023	2022	2021	FY23 vs FY22
MW installed wind turbines	712	440	2,378	+62%
MW installed foundations (Contributed capacity) 9	1,212	2,798	1,867	-57%

Transition to clean energy

DEME continued to execute its strategy to promote the transition to clean energy, installing over 700 megawatts of wind turbines and 1,212 megawatts of foundations in 2023, compared to respectively 440 megawatts of turbines and 2,798 megawatts of foundations in 2022. The total installed megawatts of foundations in 2023 were impacted by the mix of installation, mobilisations, and other works, including decommissioning, performed by the primary vessels. These contributions in offshore wind farm projects were made in Europe (France, The Netherlands, Denmark, and the UK), in Asia (Taiwan) and in the US.

The Dredging & Infra segment is engaged in constructing the Fehmarnbelt Fixed Link, the world's longest immersed road and rail tunnel between Denmark and Germany, facilitating future sustainable trade and tourism, reducing travel time, and facilitating greener transport by the use of electric trains. The segment is also advancing the design of the Princess Elisabeth Island in Belgium, the world's first artificial energy island and offshore energy hub and a key link in Europe's future North Sea energy grid. Main construction will start in 2024 and continue through 2026.

Finally, DEME is also actively engaged in diverse renewable energy initiatives, including the production and storage of green hydrogen.

⁹Contributed capacity is calculated counting total number of foundations installed by DEME during the reporting period (between 1 January and 31 December) and multiplying by the corresponding turbine capacity. The turbine capacity is also called the rated power of the turbine. Each installed turbine has a specific rated power, expressed as a number of megawatts (MW).

Greenhouse Gas (GHG) footprint & Energy management

(in % of total volume)	2023	2022	2021	FY23 vs FY22
Low carbon fuels10	10.2	6.0	N/A11	+4.2ppts12

DEME Group has set a clear target to reduce its GHG-intensity by 40% by 2030 (compared to 2008), in line with the decarbonisation trajectory outlined by the International Maritime Organization (IMO). An independent third party verified in May 2023 that DEME already demonstrated a reduction in GHG-intensity of 27% at the end of 2022.

In addition to enhancing the fleet's energy efficiency, DEME is also working to effectively increase the utilization of low carbon fuels compared to conventional ones. In 2023 the consumption of low carbon fuels amounted to 10.2% of the total volume consumed, a notable improvement from 6.0% in 2022 and surpassing the 8.0% target set for 2023.

DEME also expanded its sustainable operational capacity with the addition of 'Viking Neptun', a cable laying vessel, and the inauguration of 'Green Jade', a new offshore installation vessel, both fully compliant with the latest emission standards and equipped with the latest environmental technology including fuel saving measures and innovations such as a waste heat recovery system solution.

Further enhancing its fleet, DEME is transforming 'Yellowstone', from a bulk carrier to a fallpipe vessel to join the fleet in the first half of 2024. 'Yellowstone' is set to become the sector's pioneering dual fuel fallpipe vessel and will be fully compliant with the latest emission standards and prepared for (green) methanol. The vessel also features a hybrid power plant with a 1 MWh Li-ion battery, providing additional fuel-saving benefits.

SOCIAL

(in FTE)	2023	2022	2021	FY23 vs FY22
Average # personnel	5,334	5,153	4,880	+4%

To continue supporting the Group's short- and long-term growth, significant investments are being made in retaining and attracting human capital and talent. Several initiatives are underway, with the most prominent being DEME's 'Where Next' campaign, an international employer branding and recruitment program, featuring targeted career days, participation in job fairs, and events.

In 2023, the Group's employee force expanded reaching an average of 5,334 full-time equivalents (FTEs), marking a 4% increase from the previous year.

11 The first reliable measurement took place in 2022.

12 ppts: percentagepoints

¹⁰Low carbon fuels combine the fuels for which the CO2 emissions are lower compared to conventional fuel (marine gas oil). This category includes fuels such as LNG (Liquified Natural Gas) and blended bio-fuels. For this parameter, the validation process is ongoing - pending approval by the auditor.

Safety

(Worldwide LTIFR) 13	2023	2022	2021	FY23 vs FY22
Worldwide Lost Time Injury Frequency Rate	0.19	0.23	0.19	-17%

Safety is ingrained in DEME's core values and evidenced in the worldwide LTIFR. The worldwide LTIFR for the year stood at 0.19, a notable improvement compared to 0.23 in 2022 and better than the target level of 0.20. The Group intensified its focus on essential Safety Key Performance Indicators (KPIs), consistently meeting or surpassing targets for toolbox meeting participation, incident reporting, closure of action items, observations, inspections, and incident investigations.

Sustainable innovation

The latest edition of the DEMEx program which focuses on disruptive and transformational innovation, had its final showcase event in June 2023. It was a powerful illustration of how firmly innovation and sustainability are embedded in the heart and minds of the DEME team and made it tangible in powerful initiatives. Out of the nine innovative ideas proposed in the final event, three were selected by the Group's Innovation Board to be further developed and launched.

GOVERNANCE

Board structure

During the Annual General Meeting, held on 17 May 2023, the shareholders approved the appointment of Ms. Karena Cancilleri, as an independent director for four years.

Business Ethics

Business ethics remains a consistent focal point for DEME, with ongoing refinement of compliance processes, exemplified by 99% of DEME's staff participating in the annual internal compliance training.

OTHER ESG ACCOMPLISHMENTS

To realise DEME's ambitious sustainability goals in all aspects of its activities, the Group converted its long-term financing into sustainability-linked loans in the course of 2022. This commitment underlines DEME's vision of achieving a sustainable future and at the end of 2023 represented a total credit value of 649.7 million euro. The commercial terms of those loans are directly linked to DEME's sustainability performance in two areas: (1) safety at work and (2) use of low-carbon fuel, which are in line with two material topics of its current materiality matrix. Meeting or not meeting the targets set for key performance indicators (KPIs) have an impact on the interest margins applied to sustainabilitylinked loans. In 2023, DEME achieved the goal for both KPI's.

In the domain of the ESG assessments, in 2023, DEME Group attained an 'A' – score from MSCI and a first Sustainalytics score as a separate company, of 31.8. DEME Offshore received an Ecovadis silver medal, a shift from the gold medal in 2022 primarily influenced by a re-baselining of the assessment parameters. The CDP-score for DEME Offshore maintained a 'B' rating in 2023, mirroring the outcome from 2022.

¹³The Worldwide Lost Time Injury Frequency Rate (Worldwide LTIFR) is the metric reflecting accidents of DEME employees and DEME temporary employees involving work incapacity (≥ 24 hours or ≥ 1 shift) multiplied by 200,000 and divided by the number of hours worked. The 'Worldwide' method is a risk-based method that combines "risk level rate" (= event that resulted in the injury) and "injury rate" (= type of injury). To determine if an incident scores as 'Worldwide', the "risk level rate" and "injury rate" are multiplied. For this parameter, the validation process is ongoing - pending approval by the auditor.

SEGMENT RESULTS FOR THE YEAR 2023

DEME'S ORGANISATIONAL STRUCTURE

DEME is a global marine sustainable solutions provider organised around 4 distinct segments. Each of the segments serves a distinct market, and has separate assets, revenue models and growth strategies.

Offshore Energy

Providing engineering and contracting services globally in the offshore renewables and non-renewables industry.

Dredging & Infra

Providing a wide variety of dredging activities worldwide, including capital and maintenance dredging, land reclamation, coastal protection and marine infrastructure works such as port construction and tunnel construction.

Environmental

Focusing on environmental solutions for soil remediation and brownfield redevelopment, environmental dredging and sediment and water treatment.

Concessions

Developing and investing in projects in wind, port infrastructure, green hydrogen and other special projects.

For a more detailed description on these segments, please see DEME's latest Annual Report: https://deme-group.com/reports

OPERATING SEGMENTS

Please find below a description of the performance of DEME's operating segments

OFFSHORE ENERGY

(in millions of euro)	2023	2022	2021	FY23 vs FY22
Orderbook	3,754.6	3,260.9	2,816.6	+15%
Turnover	1,501.5	957.8	916.4	+57%
EBITDA	231.4	221.9	170.9	+4%
EBITDA margin	15.4%	23.2%	18.6%
Fleet utilisation rate14 (weeks)	40.8	33.6	42.1

The Offshore Energy segment increased its orderbook by 15% and grew revenue 57% year-over-year, driven by continued solid demand and reflecting the expanded fleet capacity, coupled with robust project execution.

In addition to solid results, 2023 was also a year of operational accomplishments for DEME Offshore Energy. The segment entered into two new geographies, continued to strengthen the organisation and expanded the fleet with amongst others 'Viking Neptun', a cable laying vessel and 'Green Jade', an additional floating installation vessel. 'Orion', which was added to the fleet in mid 2022, continued to demonstrate and affirm its technical capabilities for installing monopiles in a floating way.

'Green Jade' was added to the fleet in July and performed well on the Zhong Neng project in Taiwan, installing jackets. These works will continue during the first quarter of 2024, after which 'Green Jade' will commence the Hai Long project.

In the US, Offshore Energy delivered its "first steel in the water" already before summer, pioneering the adoption of the offshore wind in the US market. 'Livingstone' completed the cabling works for the Southfork projects during 2023 and preparations are on track with Dominion's Energy Group for the Coastal Virginia project for a 2.6 GW wind farm with 176 wind turbines, to kick-off in the first half of 2024.

On the Vineyard project and while negotiations on variation orders are still ongoing, the works progressed well in the second half of the year with 47 of 62 monopiles and 30 transition pieces installed by 'Orion', a string of turbines installed by 'Sea Installer' and a first part of the Vineyard windfarm operational and connected to the grid. For both the Vineyard and the Zhong Neng project, losses to completion have been accounted for in 2023. These losses to completion have been partially offset by expected turnover including specific variation orders,

that are pending approval, and have been assessed in line with IFRS standards (IAS 37). This assessment is supported by solid legal opinions.

In Europe, the segment successfully completed installation projects in Denmark and the Netherlands while extending its presence in France. The vessel 'Innovation' made significant progress on the Fécamp project and is gearing up for the commencement of the Île d'Yeu and Noirmoutier projects in early 2024. In the UK, the segment continued its inter-array cabling works for the Dogger Bank and Nearth Na Gaoithe projects, along with initiating preparatory works for the Moray West project.

In the non-renewables, the segment continued its activities at the Hinkley Point nuclear power plant in the UK, completing the drilling of the shafts for all intake and outfall structures.

Vessel occupancy for the Offshore Energy segment was higher compared to 2022 mainly driven by increased utilization across the globe in the second half of the year and following a period of technical adjustments to the vessels in support of project requirements.

The increase in the Offshore Energy orderbook was fueled by new contract awards, with project deployments over the next several years, including sizeable project-wins such as a cable contract for Baltic Power, DEME's first offshore wind farm project in Poland, contracts in France for the Dieppe Le Tréport, Île d'Yeu and Noirmoutier offshore wind farms and the Greater Changhua contract in Taiwan with the Taiwanese joint-venture CDWE. In the non-renewables in North America, Offshore Energy also added the Cenovus White Rose project in Newfoundland in Canada. These additions to the orderbook largely offset the cancellations of both the Norfolk Boreas and Empire Wind 2 projects received in the course of 2023.

14 The fleet utilisation rate is the weighted average operational occupation in weeks of the DEME fleet expressed over a given reporting period.

DREDGING & INFRA

(in millions of euro)	2023	2022	2021	FY23 vs FY22
Orderbook	3,472.4	2,615.7	2,833.3	+33%
Turnover	1,604.6	1,524.3	1,478.3	+5%
EBITDA	298.3	254.9	305.8	+17%
EBITDA margin	18.6%	16.7%	20.7%
Fleet utilisation rate – TSHD15 (weeks)	38.4	38.3	41.4
Fleet utilisation rate – CSD16 (weeks)	26.6	29.3	25.3

Dredging & Infra reported a turnover of 1.6 billion euro, 5% higher than a year ago. Orderbook increased 33% compared to a year ago.

The segment continued to perform under long-term maintenance dredging contracts in Europe including different seaports in Belgium. In Germany the segment added both maintenance and new capital dredging work, expanding its presence around the Elbe River between Hamburg and the North Sea. The segment also completed the dredging works for a new container terminal in Gdansk in Poland, started dredging hard rock in the port of La Pallice in La Rochelle in France and continued the modernization works for the port of Ravenna in Italy.

Overseas, the segment finished the works on a container terminal in Sri Lanka and continued working on several projects in West Africa and maintenance dredging projects in India. The segment also continued capital dredging and land reclamation works for the extension of the port of Abu Qir in Egypt and executed dredging and reclamation works in Abu Dhabi deploying multiple trailing suction hopper dredgers and mega cutter suction dredgers. In Saudi Arabia, the preparatory activities for the Oxagon Phase 2 project were immediately initiated following the contract award in the last quarter of the year.

Large ongoing marine infrastructure projects testify to DEME's unrivalled immersed tunnel expertise. In the Netherlands, the two tunnel-elements for the Blankenburg project were successfully installed and the project is now expected to be completed in the summer of 2024. On the Fehmarnbelt Fixed Link project (Denmark), production of the tunnel-elements has

started in preparation for the first installation during the second half of 2024. In Belgium, DEME is a member of two consortia for the Oosterweel Connection project. One consortium is overseeing the construction of an immersed tunnel in the River Scheldt to complete the Antwerp Ring Road, while the other is responsible for works on the right bank of the River Scheldt. Furthermore, in France the port development in Port-La Nouvelle advanced, and in The Netherlands the new lock Terneuzen project entered its final stage.

The EBITDA margin in the Dredging & Infra segment increased from 16.7% in 2022 to 18.6% in 2023. Vessel occupation for the full year remained stable for the trailing suction hopper fleet and decreased for the cutter fleet although occupancy increased in the second half of the year, following a relatively higher level of maintenance activities on the fleet in the first half of the year and driven by a surge in demand and contract wins.

The orderbook increased 33% to 3,472 million euro. Additions to the 2023 orderbook include the new Princess Elisabeth Island, the worlds first energy island, for which the first caissons will be installed in the course of 2024 as well as prolonged maintenance projects in Belgium for the River Scheldt and Belgium seaports. Additionally in Europe, the Dredging & Infra segment capitalized on its presence in Italy and around the Elbe River, resulting in new projects. Other noteworthy wins overseas include contracts in the Indian subcontinent, the Maldives and West-Africa. At the end of the year, a consortium including DEME, was awarded a large contract for the second phase of capital dredging works and construction of the Port of Oxagon in Saudi Arabia.

¹⁵TSHD: Trailing Suction Hopper Dredger

¹⁶CSD: Cutter Suction Dredger

ENVIRONMENTAL

(in millions of euro)	2023	2022	2021	FY23 vs FY22
Orderbook	354.7	313.4	255.3	+13%
Turnover	304.3	206.3	166.2	+48%
EBITDA	51.1	25.0	16.8	+105%
EBITDA margin	16.8%	12.1%	10.1%

The Environmental segment saw its orderbook further increase to a level of 355 million euro and accelerated its turnover with a growth of 48% compared to last year. The topline growth was fueled by ongoing work on long term and complex remediation and high-water protection projects in Belgium (Blue Gate in Antwerp, Oosterweel, Cokerie du Brabant), the Netherlands (GoWA), UK and Norway. The team finalized the multi year Condé Pommeroeul project in France and kicked off new large projects in Ijburg and Marken in the Netherlands.

DEME Environmental team continues to set the standard for addressing the environmental challenges of the future, including PFAS pollution, for which it deploys a wide range of solutions in soil and water installations. The team also continued to invest and expand the capacity of its network of fixed and mobile soil treatment centers.

EBITDA for 2023 was 51 million euro, with an EBITDA margin of 16.8%, up from 12.1% a year ago. The strong profitability incorporates a non-recurring impact from a settlement on a completed project in the Netherlands. Excluding this impact, the Environmental segment would still demonstrate an improved profitability compared to 2022.

As of 31 December 2023, the orderbook stood at 355 million euro, an increase of 13% compared to 313 million euro a year earlier, mainly driven by new contract wins in Belgium and the Netherlands. Of note is the recent win in Feluy in Belgium where a brownfield will be remediated and transformed into an industrial estate in collaboration with public and private partners. The segment is actively exploring new, targeted opportunities in Italy and the UK, commencing initial environmental study efforts.

CONCESSIONS

(in millions of euro)	2023	2022	2021	FY23 vs FY22
Net result from associates	37.4	9.3	11.1	+302%

DEME Concessions oversees DEME's development activities in offshore wind, marine infrastructure, green hydrogen and mineral harvesting. In 2023 the associates of the concession activity delivered a net result of 37 million euro compared to 9 million euro a year ago, partly driven by higher wind production, higher electricity prices and new legislation in Belgium.

The Concessions segment has economic ownership of 144 MW of wind energy from offshore wind concessions in operation, generating recurring income, while building a pipeline that already includes more than 2 gigawatts in Scotland, in which DEME holds a 42.5% participation, and exploring and developing additional opportunities.

For dredging & infrastructure, the Concessions segment is forging ahead with the Blankenburg Connection in The Netherlands, Port-La Nouvelle in France and further expanding in Port of Duqm in Oman. DEME continues to explore new opportunities for ports and other concessions, mainly in Europe and Latin America. In this context, a consortium consisting of DEME and QTerminals W.L.L. signed a preliminary agreement in 2023 for the financing, construction, and operation of a new deepwater terminal for the port of Swinoujscie in Poland.

DEME Concessions remains on track to be amongst the first in the world to produce green hydrogen and green ammonia. At its flagship green hydrogen project HYPORT Duqm in Oman, DEME and its development partner OQ signed a Project Development Agreement with the government in Oman. Additionally other locations are being explored to deploy the same HYPORT technological concept.

The Concessions segment also continued to work on the Global Sea Mineral Resources (GSR) initiative, which marked a decade of deep ocean exploration and innovation in 2023. GSR is helping to tackle the scarcity of the planet's resources in the most responsible way and is continuing its research into the possibility of collecting metal-rich, polymetallic nodules from the deep ocean floor. In February 2023, GSR announced a strategic cooperation with Transocean Ltd (NYSE: RIG) whereby Transocean contributed an ultra-deepwater drilling vessel and a cash investment. The ISA17 council indicated in July 2023 that is aiming for the adoption of a regulatory framework in 2025.

17 ISA: International Seabed Authority

Conference call

DEME will host an earnings video call with investors and analysts on 28 February 2024 at 9:00 am CET, to discuss the results of 2023. Luc Vandenbulcke, CEO, Els Verbraecken, CFO and Carl Vanden Bussche, IRO, will host the call. An audio cast of this event will be available on the Company's website www.deme-group.com within the next 24 hours.

Publication of Annual Report

DEME will publish the English version of its Annual Report 2023 on 28 March 2024. Release of the Dutch version is planned for 12 April 2024. The reports will be made available on www.deme-group.com.

Financial Calendar 2024

28 March 2024	Publication of Annual Report 2023
14 May 2024	Trading update quarterly results Q1 2024
15 May 2024	General Assembly
21 May 2024	Ex-dividend date
22 May 2024	Record date
27 May 2024	Dividend Payment date
29 August 2024	Half year 2024 results
14 November 2024	Trading update quarterly results Q3 2024

For more information

vanden.bussche.carl@deme-group.com

Declaration by the auditor

The auditor has confirmed that his audit of the consolidated annual accounts has been substantially completed and that no meaningful corrections have come to its attention that would require an adjustment to the financial information included in this press release.

Antwerp, 28 February 2024

EY Bedrijfsrevisoren BV - statutory auditorrepresented by Patrick Rottiers18 & Wim Van Gasse19 Partners

ABOUT DEME

DEME (Euronext Brussels: DEME.BR) is a leading contractor in the fields of offshore energy, dredging & infra, environmental remediation, trenching and marine infrastructure. DEME also engages in concessions activities in offshore wind, marine infrastructure, green hydrogen, and deep-sea mineral harvesting. The company can build on more than 145 years of experience and is a front runner in innovation and new technologies. DEME's vision is to

work towards a sustainable future by offering solutions for global challenges: a rising sea level, a growing population, the reduction of emissions, polluted rivers and soils and the scarcity of mineral resources. DEME can rely on more than 5,300 highly skilled professionals and operates one of the largest and most technologically advanced fleets in the world.

www.deme-group.com

Disclaimer

This press release may contain forward-looking information. Forward-looking statements describe expectations, plans, strategies, goals, future events or intentions. The achievement of forward-looking statements contained in this press release is subject to risks and uncertainties. Consequently, actual results or future events may differ materially from those expressed or implied by such forward-looking statements. Should known or unknown risks or uncertainties materialise, or should DEME's assumptions prove inaccurate, actual results could vary materially from those anticipated. DEME undertakes no obligation to publicly update or revise any forward-looking statements.

18 Acting on behalf of a BV 19 

Acting on behalf of a BV

CONSOLIDATED STATEMENT OF INCOME

For the year ended 31 December

(in thousands of euro)	2023	2022
REVENUES	3,344,091	2,710,796
Turnover	3,285,422	2,654,725
Other operating income	58,669	56,071
OPERATING EXPENSES	-3,102,828	-2,555,560
Raw materials, consumables, services and subcontracted work	-2,138,962	-1,704,618
Personnel expenses	-587,884	-505,743
Depreciation and amortisation expenses	-342,050	-318,240
Impairment of property, plant and equipment and right-of-use assets	-13,148	-430
Impairment of goodwill and intangible assets	-	-
Other operating expenses	-20,784	-26,529
OPERATING RESULT	241,263	155,236
FINANCIAL RESULT	-23,269	-24,311
Interest income	8,252	6,026
Interest expense	-20,149	-14,914
Realised/unrealised foreign currency translation effects	-9,825	-11,134
Other financial result	-1,547	-4,289
RESULT BEFORE TAXES	217,994	130,925
Current taxes and deferred taxes	-49,618	-31,361
RESULT AFTER TAXES	168,376	99,564
Share of profit (loss) of joint ventures and associates	3,217	15,827
RESULT FOR THE PERIOD	171,593	115,391
Attributable to non-controlling interests	8,831	2,671
SHARE OF THE GROUP	162,762	112,720
Number of shares	25,314,482	25,314,482
Earnings per share (basic and diluted)	6.43	4.45

SEGMENT REPORTING

For the year ended 31 December

(in thousands of euro)

2023	Offshore Energy	Dredging & Infra	Environmental	Concessions	Total Segments	Reconciliation	Group Financial Statements
Turnover	1,501,551	1,604,610	304,314	4,972	3,415,447	-130,025	3,285,422
EBITDA	231,364	298,294	51,113	-13,409	567,362	29,099	596,461
Depreciation and impairment	-129,727	-225,170	-9,912	-113	-364,922	9,724	-355,198
EBIT	101,637	73,124	41,201	-13,522	202,440	38,823	241,263
Financial result					-27,453	4,184	-23,269
RESULT BEFORE TAXES					174,987	43,007	217,994
Current taxes and deferred taxes					-40,998	-8,620	-49,618
Net result from joint ventures and associates	1	-2	377	37,386	37,762	-34,545	3,217
RESULT FOR THE PERIOD					171,751	-158	171,593
Attributable to non-controlling interests					8,989	-158	8,831
SHARE OF THE GROUP					162,762	-	162,762
Net book value intangible assets	12,674	6,098	8	4,067	22,847	-7	22,840
Net book value property, plant and equipment and right-of-use assets	1,480,965	1,247,270	64,473	81,230	2,873,938	-180,625	2,693,313
Carrying amount of joint ventures and associates	28	5,347	2,505	112,989	120,869	49,094	169,963
Booked as non-current financial asset	28	5,347	2,521	113,046	120,942	49,353	170,295
Booked as non-current financial liability (- is credit)	-	-	-16	-57	-73	-259	-332
Acquisition of property, plant and equipment and right-of-use assets (*)	382,488	161,160	19,296	81,184	644,128	-112,186	531,942
Capital investments in joint ventures and associates	-	-	-	7,671	7,671	891	8,562

(*) Acquisitions according to balance sheet (rollforward property, plant and equipment and right-of-use assets) and not according to cash flow statement.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

For the year ended 31 December

(in thousands of euro)

ASSETS	2023	2022
NON-CURRENT ASSETS	3,106,348	2,969,289
Intangible assets	22,840	24,315
Goodwill	13,028	13,028
Property, plant and equipment	2,582,220	2,422,048
Right-of-use assets	111,093	98,994
Investments in joint ventures and associates	170,295	202,748
Other non-current financial assets	48,324	32,540
Non-current financial derivatives	22,073	39,336
Interest rate swaps	19,862	39,127
Forex/fuel hedges	2,211	209
Other non-current assets	10,526	11,892
Deferred tax assets	125,949	124,388
CURRENT ASSETS	1,653,710	1,540,489
Inventories	32,015	25,696
Contract assets	633,027	344,751
Trade and other operating receivables	514,043	469,529
Current financial derivatives	13,503	22,022
Interest rate swaps	10,938	17,638
Forex/fuel hedges	2,565	4,384
Assets held for sale	1,630	31,997
Other current assets	70,408	124,233
Cash and cash equivalents	389,084	522,261
TOTAL ASSETS	4,760,058	4,509,778

GROUP EQUITY AND LIABILITIES	2023	2022
SHAREHOLDERS' EQUITY	1,910,473	1,753,947
Issued capital	33,194	33,194
Share premium	475,989	475,989
Retained earnings and other reserves	1,411,751	1,218,272
Hedging reserve	38,115	70,020
Remeasurement on retirement obligations	-35,784	-37,458
Cumulative translation adjustment	-12,792	-6,070
NON-CONTROLLING INTERESTS	50,337	22,318
GROUP EQUITY	1,960,810	1,776,265
NON-CURRENT LIABILITIES	835,687	1,015,460
Retirement benefit obligations	54,810	60,523
Provisions	46,957	42,985
Interest-bearing debt	652,523	789,904
Non-current financial derivatives	22,953	53,661
Interest rate swaps	-	-
Forex/fuel hedges	22,953	53,661
Other non-current financial liabilities	332	1,238
Deferred tax liabilities	58,112	67,149
CURRENT LIABILITIES	1,963,561	1,718,053
Interest-bearing debt	248,743	252,870
Current financial derivatives	20,324	31,579
Interest rate swaps	-	-
Forex/fuel hedges	20,324	31,579
Provisions	14,045	4,714
Contract liabilities	447,363	323,300
Advances received	84,486	72,539
Trade payables	897,610	777,705
Remuneration and social debt	94,791	98,793
Current income taxes	64,024	66,571
Other current liabilities	92,175	89,982
TOTAL LIABILITIES	2,799,248	2,733,513
TOTAL GROUP EQUITY AND LIABILITIES	4,760,058	4,509,778