Boskalis_Annual_Report_2016

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The table below presents the pension costs from defined benefit pension plans, including the costs of plans that were settled in 2016 and which are included in these consolidated financial statements.

2015

2016

Total result defined benefit plans

- 2,277

28,787

Settlement and curtailment gains on PGB and Dutch pension funds recognized in the consolidated statement of profit or loss Pension costs for defined benefit pension plans charged to the consolidated statement of profit or loss

-

13,260

- 43,277 - 45,554

- 37,527

Actuarial gains and losses and asset limitation recognized directly in equity

4,520

Income tax

6,772

- 1,080

Actuarial gains and losses and asset limitation recognized directly in equity net of income tax

- 38,782

3,440

Effective return on plan assets

26,822

50,513

The pension charges for the main pension plans are predominantly in euros. As a consequence, the exchange rate exposure for pension charges in other currencies is considered not material.

The accumulated actuarial gains and losses and the balance of the limitation on net plan assets amount to:

2015

2016

Accumulated actuarial gains and losses as at 31 December

- 64,101 - 11,913 - 76,014

- 8,733 - 11,145 - 19,878

Asset limits on net plan assets as at 31 December

In 2017 the Group expects to contribute premiums of EUR 2.9 million (2016: EUR 34.1 million) to funded defined benefit plans and premiums of EUR 0.3 million (2016: EUR 0.4 million) to unfunded defined benefit plans.

The principal actuarial assumptions used for the calculations were:

2015

2016

Discount rate

2.39% 0.75% 1.80% 0.75% 0.30%

2.27% 0.75% 1.80% 0.73% 0.06%

Expected future salary increases

Expected future inflation

Expected future pension increases for active participants Expected future pension increases for inactive participants

Sensitivity to changes in the applied assumptions can be summarized as follows:

Assumptions as at 31 December 2016

Increase of 0.25%

Decrease of 0.25%

Effect on defined benefit obligation Change in discount rate Change in expected future salary increases Change in pension increase for active participants Change in pension increase for inactive participants

- 9,332 3,734 1,851 4,332

10,427 - 3,573 - 1,655 - 2,177

Effect on pension expenses attributed to the service year Change in discount rate

- - -

- - -

Change in expected future salary increases Change in pension increase for active participants

ANNUAL REPORT 2016 – BOSKALIS