Boskalis_Annual_Report_2016

115

Currency transaction risk, excluding interest-bearing financing The currency transaction risk for Group companies resulting from future operational transactions in currencies other than their functional currency, can be summarized as follows:

2015

2016

133,703 - 13,043 42,204

Expected cash flows in US dollars

198,598 - 31,478 - 10,548 70,440 21,845 - 38,841 13,136 223,152

Expected cash flows in Australian dollars Expected cash flows in pounds sterling Expected cash flows in Indonesian rupiah Expected cash flows in Swedish kronor

-

14,306

Expected cash flows in euros

- 115,604

Expected cash flows in other currencies

8,343

Expected cash flows

69,909

Cash flow hedges

- 194,211

- 77,176

Net position

28,941

- 7,267

Sensitivity analysis Due to the fact that expected future cash flows in foreign currencies are hedged, the sensitivity to foreign currency risk for financial instruments, excluding interest-bearing financing, is limited for the Group. The Group is mainly funded by loans denominated in euros and in US dollars, as well as US private placements denominated in US dollars and pounds sterling (see note 24 ‘Interest-bearing borrowings’). To a large extent the private placements in US dollars and the full amount expressed in pound sterling is swapped into euros by means of cross-currency swaps. The other part of the US private placements expressed in US dollars and the other US dollar financing is used to hedge, in part, the net investment in Dockwise and Fairmount, including the intercompany financing provided. Therefore, and due in part to hedge accounting, the sensitivity in the profit and loss account is limited for financing in currencies other than the euro. Interest rate risk The Group has mainly fixed interest rate liabilities and a revolving multi-currency facility with a variable interest rates. With a view to controlling interest risks, in principle the policy is that interest rates for loans payable are primarily fixed for the entire maturity period. This is achieved by contracting loans that carry a fixed interest rate and/or by using derivatives such as interest rate swaps.

The interest rates and maturity profiles of interest-bearing loans, deposits and cash and cash equivalents are stated below:

As at 31 December 2016

Interest rate One year or less

1 - 5 years

Over 5 years

Total

Cash and cash equivalents

0.00% 0.35% 4.16% 5.19% 3.40% 1.76%

839,395 125,936 - 437,931 - 14,920

- - - -

- -

839,395 125,936 - 744,807 - 14,920 - 1,704 - 1,188 202,712

Short-term deposits

US Private Placements (USD) US Private Placements (GBP) Other interest-bearing loans

- 306,876

- - -

- 293

- 1,411

Bank overdrafts

- 1,188 510,999

-

- 1,411

- 306,876

As at 31 December 2015

Interest rate One year or less

1 - 5 years

Over 5 years

Total

Cash and cash equivalents

0.00% 0.91% 4.16% 5.19% 0.88% 1.47% 0.13%

695,531 98,189

- -

- -

695,531 98,189 - 696,674 - 14,901 - 196,897 - 23,889 - 30,603 - 169,244

Short-term deposits

US Private Placements (USD) US Private Placements (GBP)

- -

- 351,787 - 14,901

- 344,887

-

Revolving multi-currency credit facility (USD)

-

- 196,897

- - -

Other interest-bearing loans

- 18,127 - 30,603 744,990

- 5,762

Bank overdrafts

-

- 569,347

- 344,887

ANNUAL REPORT 2016 – BOSKALIS