Annual report 2019

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23.6.2 REVALUATION RESERVE (LEGAL RESERVE) This reserve mainly relates to profit with respect to the revaluation of existing non-controlling interests prior to the recognition of business combinations and book results on contributions in newly formed strategic partnerships. In 2019 an amount of EUR 21.4 million was realized through the sale of the Group’s interest in the partnership Saam Smit Towage (EUR 4.4 million) and the sale of the Group’s interest in the partnership Kotug Smit Towage (EUR 17.0 million). 23.6.3 CURRENCY TRANSLATION RESERVE (LEGAL RESERVE) The currency translation reserve comprises all accumulated currency translation differences arising from net investments in foreign operations which are denominated in functional currencies other than the presentation currency used by the Group, including related intragroup financing. These currency translation differences are accumulated as from the IFRS transition date (1 January 2004) and are taken to the Statement of Profit or Loss at disposal or termination of these foreign operations. At the acquisition date of activities (business combinations) with a functional currency other than the euro, the translation reserve of these activities is started at zero. The cumulative changes of foreign currency instruments used to hedge net investments in foreign operations are included under currency translation reserve for a negative amount of EUR 43.2 million as per 31 December 2019 (31 December 2018: negative amount of EUR 38.1 million); a change of EUR 5.1 million in 2019. 23.6.4 OTHER LEGAL RESERVES A legal reserve is formed to account for differences between the cost price and the equity value of joint ventures and associates where the Group cannot independently decide on the distribution of dividends, unless such differences are already included in the legal reserve for accumulated currency translation differences on foreign operations. 23.6.5 OTHER RESERVES Other reserves mainly comprise actuarial movements related to the limitation on net plan assets of defined benefit pension plans and the actuarial gains and losses originating from the difference between the realized and the expected movement in defined benefit obligations and the return on plan assets.

ANNUAL REPORT 2019 – BOSKALIS FINANCIAL STATEMENTS 2019 -- B SKALIS FINANCIAL STATEMENTS 2019