Annual report 2019

129

30. COMMITMENTS AND CONTINGENT LIABILITIES Short term and low value lease obligations

At 31 December 2019 the Group has short term and low value lease obligations for EUR 772 thousand, EUR 447 thousand is payable within one year or less and EUR 325 thousand is payable between one and five years. In 2018 the Group had operational lease obligations for an amount of EUR 86,526 thousand, which related to payments within one year of EUR 23,065 thousand, between one and five years for EUR 43,250 thousand and after more than five years EUR 20,211 thousand. The 2019 amounts are impacted by the implementation of IFRS 16 (reference is made to note 2.2 and 3.33 in these financial statements). Guarantees The guarantee commitments as at 31 December 2019 amounted to EUR 857 million (2018: EUR 691 million) and can be specified as follows:

2018

2019

Guarantees provided with respect to: Joint ventures

61,300 628,300

57,400 798,400

Contracts and joint operations

Lease obligations and other financial obligations

1,400

1,400

691,000

857,200

The above-mentioned guarantees outstanding as at 31 December 2019 refer to guarantees and counter guarantees provided to financial institutions for approximately EUR 856 million (2018: approximately EUR 690 million). At year-end 2019, 35 key Group companies were jointly and severally liable in respect of credit facilities and guarantees provided to several Group companies. In respect of these facilities, it has been agreed to limit the provision of further securities on existing property, plant and equipment. Group companies are jointly and severally liable for the non-consolidated part of the liabilities of their joint operations amounting to EUR 178 million (2018: EUR 151 million). Group companies are also jointly and severally liable for performance obligations for contracts with third parties in project-driven construction consortiums. In addition, certain recourse obligations exist in respect of project financiers and guarantees of deployment relating to equipment. Where deemed necessary, provisions have been made. In principle the Group does not provide parent company guarantees to its subsidiaries, other than for commercial reasons. Group companies have filed declarations of joint and several liability for a number of subsidiaries with the Chamber of Commerce. Capital commitments As at 31 December 2019 capital expenditure and acquisition commitments amounted to EUR 162 million (year-end 2018: EUR 162 million). Capital contribution obligations On behalf of the Group, financial institutions have provided bank guarantees for the amount of the capital contribution obligations as disclosed as part of the aforementioned guarantees and counter guarantees. Other Several legal proceedings and investigations, including regulatory and other governmental, are regularly instituted against (entities of) Royal Boskalis Westminster N.V. Tax positions are, inherently to operating internationally and across borders, in certain cases uncertain. Accruals resp. provisions were made where deemed necessary if a reliable estimate of the future cash outflows could be made. Dutch companies form part of a fiscal unity. The companies are therefore liable for the tax obligations of the fiscal unity as a whole.

ANNUAL REPORT 2019 – BOSKALIS A R 9 -- BOSKALIS