Annual report 2019

19

119

LEASE LIABILITIES Movement in lease liabilities as from 1 January 2019 (reference is made to notes 2.3 and 3.33):

2019

81,029

Balance as at 1 January

Additions

44,456

Accretion of interest

1,808

Payments

- 23,818

Assumed in business combinations

6,063

Currency translation differences and other movements

- 1,225 108,313 24,285 84,028 108,313

Balance as at 31 December

Current

Non-current

Balance as at 31 December

The total lease cash out flows for leases are EUR 24.8 million in the year, including the payments relating to short term and low value lease leases (reference is made to note 8). Interest rates, remaining terms and currencies of the lease liabilities are disclosed in the explanatory notes to the financial instruments in the interest rate risk paragraph (see note 29.1.3).

28. TRADE AND OTHER PAYABLES

31 DECEMBER 2019

2018

Trade payables

176,248 36,310

222,422 34,950 12,972 731,525

Taxes and social security payables

Amounts due to joint ventures and associates

4,299

Other creditors and accruals

822,157

1,039,014

1,001,869

The trade and other payables are generally not interest-bearing.

29. FINANCIAL INSTRUMENTS

GENERAL Pursuant to the financial policy pursued by the Board of Management, the Group and its Group companies use several financial instruments in the ordinary course of business. The policy with respect to financial instruments is disclosed in more detail in the Corporate Governance section in the Annual Report. The Group’s financial instruments are cash and cash equivalents, trade and other receivables, interest-bearing loans and bank overdrafts, trade and other payables and derivatives. The Group enters into derivatives transactions, mainly foreign currency forward contracts, foreign currency options and to a limited extent interest rate swaps, solely to hedge against the related risks. The Group’s policy is not to trade in derivatives.

FINANCIAL RISK MANAGEMENT The Group has exposure to the following risks from its use of financial instruments:  credit risk  liquidity risk  market risk, consisting of: currency risk, interest rate risk and price risk

29.1.1 CREDIT RISK The Group has a strict acceptance and hedging policy in place for credit risks resulting from payment and political risks. Credit risks are usually covered by bank guarantees, insurance, advance payments, etc., except where the risk pertains to creditworthy, first class debtors. Credit risk procedures and the geographical and other diversification of the operations of the Group reduce the risk with regard to credit concentration.

ANNUAL REPORT 2019 – BOSKALIS A UAL REPORT 2019 -- BOSKALIS