Annual report 2019

98

In 2018 the Group incurred a non-cash impairment loss of EUR 502.2 million. This impairment charge related mainly to goodwill (EUR 154.9 million), property, plant and equipment (EUR 136.9 million) and impairment losses in joint ventures (EUR 189.9 million). No impairment charges were incurred in 2019.

11. FINANCE INCOME AND EXPENSES

2018

2019

Interest income on short-term bank deposits

372 372

995 995

Finance income

Interest expenses

- 11,813

- 13,117 - 1,808 - 1,751 - 16,676

Accretion of interest of lease liabilities

-

Other expenses Finance expenses

- 1,840 - 13,653

Net finance expenses recognized in consolidated statement of profit or loss

- 13,281

- 15,681

Amortization relating to interest-bearing borrowings amounts to EUR 0.3 million (2018: EUR 0.5 million) and commitment fees paid to EUR 0.9 million (2018: EUR 0.9 million). There are no fair value adjustments for interest-bearing borrowings (with regard to hedging instruments) in 2019 and 2018. 12. INCOME TAX EXPENSES The tax charge amounts to EUR 20.1 million (2018: EUR 19.9 million) which can be specified as follows:

2018

2019

CURRENT INCOME TAX EXPENSES Current year

- 38,486 17,507

- 40,687 11,174

Adjustment in respect of current income tax regarding prior financial years Reclassification of deferred income taxes regarding prior financial years

-

951

- 20,979

- 28,562

ANNUAL REPORT 2019 – BOSKALIS FINANCIAL STATEMENTS 2019 L 2 9 -- BOSKALIS FINANCIAL STATEMENTS 2019 Profit/Loss (-) before taxation Extraordinary income Profit/Loss (-) before taxation, adjusted

DEFERRED INCOME TAX EXPENSES Origination and reversal of temporary differences Effect of changes in tax rates on deferred income taxes

1,035

- 387

- - -

- 1,892

Reclassification of deferred income taxes regarding prior financial years

- 951

Movement of recognized tax losses carried forward

11,651

1,035

8,421

- 19,944

- 20,141

TAXATION IN THE CONSOLIDATED STATEMENT OF PROFIT OR LOSS

The operational activities of the Group are subject to various tax regimes with tax rates ranging from 0.0% to 43.0% (2018: 0.0% to 48.0%). These different tax rates, non-deductible expenses, treatment of tax losses, special taxation regimes, adjustments in respect of prior years and results not subject to taxation, result in an effective tax rate in the reporting period of 21.1% (2018: -4.8%), as disclosed in the consolidated statement of profit or loss.

This effective income tax rate is impacted by the share in the net result from joint ventures and associates by extraordinary income and extraordinary charges. This analysis can be summarized as follows:

2018

2019

Income tax expense (-) /benefit

Income tax expense (-) /benefit

Effective Income tax rate

Effective Income tax rate

Profit / loss (-)

Profit / loss (-)

- 413,792

- 19,944

- 4.8%

95,040

- 20,141

21.2%

Tax exempted share in results of joint ventures and associates (excluding impairments)

- 28,386

- -

7.2%

- 25,590 -82,258

- - 213.6%

-

-

6.472

85.7%

Impairment charges and other extraordinary charges

519,474 77,296

- 815

24.4% 26.9%

-

-

-

- 20,759

- 12,808

- 13,669 - 106.7%