Boskalis_Annual_Report_2016

84

Consideration paid On 1 July 2016 the Group paid an amount of EUR 180 million in cash to VolkerWessels. The net change in cash and cash equivalents, taking into account the cash and cash equivalents held by the acquired companies, amounts to EUR 78 million.

Identifiable assets acquired and liabilities assumed As a result of the acquisition, the following identifiable assets were acquired and liabilities assumed:

At 1 July 2016

Intangible assets

103

Property, plant and equipment

82,019

Deferred tax assets

1,741

Inventory

842

Due from customers

6,177

Current receivables and other current assets Cash, cash equivalents and bank overdrafts

136,708 102,120 - 1,910 - 5,553 - 139,951 - 92,220

Deferred tax liabilities

Provisions

Due to customers Current liabilities Income tax payable

- 9,315 80,761

Net amount of identified assets acquired and liabilities assumed

The purchase price allocation and valuation of identified assets acquired and liabilities assumed was finalized in October 2016. The following valuation techniques were used in assessing the fair value of identified, material, assets and liabilities: ƒ The fair value of the individual vessels (property, plant & equipment) is mainly determined based on a market approach performed by an external vessel valuator. ƒ The fair value of the material assets identified (with the exception of vessels) and liabilities assumed was determined by an external business valuator. The fair value of contracts acquired (amounts due to and from customers) was determined based on the projects in progress, including the fair value of the order portfolio and excluding existing related party activities. This involves estimates of the physical progress, the costs to complete, less a reasonable margin and less costs of disposal. The fair value of other material assets identified and liabilities assumed, including creditors and debtors, is based on the market value at which the assets or liabilities are or can be settled with contractual parties. Trade accounts and other receivables consist of a gross amount of contractual obligations of EUR 137.0 million, of which an amount of EUR 0.3 million was deemed irrecoverable at the date of acquisition.

At 1 july 2016 ANNUAL REPORT 2016 – BOSKALIS FINANCIAL STATEMENTS 2016 Total consideration paid at 1 July 2016 Fair value of existing investment in VBMS Goodwill recognized

Goodwill Goodwill arising from the acquisition:

180,000 55,700 235,700 - 80,761 154,939

Less: Net amount of identified assets acquired and liabilities assumed

Goodwill recognized as a result of the acquisition mainly relates to the obtained expertise and technical skills of VolkerWessels employees involved in the acquired maritime and offshore wind energy-related activities of VolkerWessels and synergies which are expected to result from the integration of the company into the Group’s existing activities. The goodwill recognized is not tax deductible. Transactions related to the acquisition The Group incurred costs of EUR 0.7 million for the services of external advisors relating to this transaction. These costs are included in the consolidated statement of profit or loss in the line ‘Raw materials, consumables, services and subcontracted work’ and are incorporated in the segment result under Holding & Eliminations.