Annual report 2019

96

on the expenses to be borne by Boskalis that do not qualify as an assumed liability under IFRS as at 1 April 2019. Before recognizing the gain, the Group reassessed the completeness of assets identified and liabilities assumed, and also reassessed the underlying assumptions and measurement techniques. A deferred tax liability of EUR 0.3 million was recognized in the Consolidated Statement of Profit or Loss regarding the profit relating to the bargain purchase of this business combination of EUR 1.0 million (after tax: EUR 0.7 million). SALE OF INTEREST IN PARTNERSHIP SAAM SMIT TOWAGE Since the fourth quarter of 2018 the Group had classified these activities from the Towage & Salvage operational segment as assets held for sale at book value. Early February 2019 the Group signed an agreement with Sudamericana Agencias Aereas y Maritimas S.A. (SAAM) relating to the sale and purchase of the Group’s interest in the partnership Saam Smit Towage. On 30 October 2019 the Group completed the sale of its investment in Saam Smit Towage, within the operational segment Towage & Salvage. The sale resulted in a consideration of USD 203 million in cash and a pre-tax book profit of EUR 42.1 million (EUR 35.6 million post tax), including a profit of EUR 42.3 million as a result of the recycling of accumulated currency translation differences to the statement of profit and loss. The book result, reported as part of Other income, is recognized in the statement of profit or loss as shown in the ‘Operational segments´ table, included in the Holding & Eliminations segment in note 4. SALE OF INTEREST IN PARTNERSHIP KOTUG SMIT TOWAGE Since the first quarter of 2019 the Group had classified these activities from the Towage & Salvage operational segment as assets held for sale at book value. In March 2019 the Group, together with its co- shareholder Kotug International B.V. (Kotug), signed a letter of intent with Boluda Group relating to the sale and purchase of the Group’s interest in the partnership Kotug Smit Towage. On 1 August 2019 the Group completed the sale of its investment in Kotug Smit Towage, within the operational segment Towage & Salvage. The sale resulted in a consideration of EUR 93.6 million in cash and a book profit of EUR 13.1 million that is included in Reversal of impairments evidenced by a sale transaction in the profit or loss. The book result, reported as part of Other income, is recognized in the statement of profit or loss as shown in the ‘Operational segments´ table, included in the Holding & Eliminations segment in note 4.

6. REVENUE Revenue by region can be specified as follows:

ANNUAL REPORT 2019 – BOSKALIS FINANCIAL STATEMENTS 2019 L 20 9 -- BOSKALIS FINANCIAL STATEMENTS 2019 The Netherlands Rest of Europe Australia / Asia Middle East Africa North and South America Contracting activities Service activities

REVENUE

2018

2019

605,582 951,989 336,070 355,238 106,148 214,522

619,310 919,469 433,525 357,485 88,255 226,556

2,569,549

2,644,600

A region is determined as the location at which projects are realized and services are provided. For sea transport the region refers to the port of arrival (or nearest point of arrival) of the transport or the project location for offshore installation. A large part of the Group’s revenue is generated on projects for a variety of clients in various countries and geographical areas. Because of the often-incidental nature and spread of the contracts none of these clients qualifies structurally as a material client in relation to the total revenue of the Group.

Revenue by activity can be specified as follows:

REVENUE

2018

2019

2,119,808

2,217,671

449,741

426,929

2,569,549

2,644,600

Revenue from contracting activities mainly comprises net revenue from the operational segments of Dredging & Inland Infra and Offshore Energy (excluding marine transport and other offshore services), and