Annual report 2019

122

The following are the contractual maturities of financial liabilities, including estimated interest payments and excluding the impact of netting agreements:

Contractual cash flows One year or less

More than 5 years

As at 31 December 2019

Book value

1 - 5 years

US private placements

289,124 50,000

326,955 50,000

10,597 50,000

316,358

- - - - - - -

Revolving multi-currency credit facility Other interest-bearing borrowings

-

4,934

5,814

607

5,207

Bank overdrafts Lease liabilities

29,775 108,313

29,829 120,512

29,829 25,969

-

46,071

48,472

Trade and other payables

1,001,869

1,001,869

1,001,869

- -

Income tax payable

146,094 12,570

146,094 12,570

146,094

Derivatives

5,584

6,986

1,642,679

1,693,643

1,270,549

374,622

48,472

Contractual cash flows One year or less

More than 5 years

As at 31 December 2018

Book value

1 - 5 years

US private placements

283,572 150,000

331,124 151,125

10,405

320,719 150,375

- - - - - - - -

Revolving multi-currency credit facility Other interest-bearing borrowings

750 642

5,179

6,979

6,337

Bank overdrafts

28,330

28,986

28,986

- - -

Trade and other payables

1,039,014

1,039,014

1,039,014

Income tax payable

150,719 13,136

150,719 13,136

150,719 11,435

Derivatives

1,701

1,669,950

1,721,083

1,241,951

479,132

ANNUAL REPORT 2019 – BOSKALIS FINANCIAL STATEMENTS 2019 L E 19 -- BOSKALIS FINANCIAL STATEMENTS 2019 29.1.3 MARKET RISK Market risk concerns the risk that Group income or the value of investments in financial instruments is adversely affected by changes in market prices, such as currency exchange rates, interest rates and fuel prices. The objective of managing market risks is to keep the market risk position within acceptable boundaries while achieving the best possible return. Currency risk The presentation currency of the Group is the euro. A number of Group companies (the most important of which being Dockwise) and substantial joint ventures and associates (Smit Lamnalco, Keppel Smit Towage, Asian Lift and up to the sale; Saam Smit Towage) have other functional currencies than the euro. The main other currency is the US dollar (the functional currency of the Dockwise, Smit Lamnalco and up to the sale; Saam Smit Towage) and to a lesser extent the Pound Sterling and Singapore dollar. The revenue and expenses of these companies are largely or entirely based on their functional currency, other than the euro. In 2019 Group companies, joint ventures and associates with a functional currency other than the euro contributed approximately 30% (2018: 20%) to Group revenue, 35% (2018: 35%) to the operating result excluding impairment charges and 30% (2018: 30%) to EBITDA. The Board of Management has defined a policy to control foreign currency risk based on the hedging by Group companies of material transactions in foreign currencies other than the functional currency. The policy is that these Group companies hedge any material currency risks resulting from operational transactions in currencies other than their functional currency. This is mainly relevant for Group companies involved in dredging or offshore energy projects. The functional currency of a large part of the activities of Group companies is the euro. The expenses of these companies are mainly presented in euros and to a lesser extent in the local currency of the country in which the activities are undertaken. The Group contracts projects mainly in euro, US dollar, Pound Sterling and other currencies pegged to the US dollar. The Group only uses derivative financial instruments to hedge underlying business transactions, mainly future cash flows from contracted projects. In most cases forward currency contracts are used to hedge foreign currency cash flows. Also, cash / bank overdraft balances are sometimes used to hedge currency exposures from future cash flows. The same currency and quantity are designated to the hedge, resulting in