Boskalis_Annual Report_2017

120 ANNUAL REPORT 2017 – BOSKALIS FINANCIAL STATEMENTS 2017 ANNUAL REPORT 2017 -- BOSKALIS FINANCIAL STATEMENTS 2017 120 Within one year Between one and five years After more than five years Guarantees provided with respect to: Joint ventures Contracts and joint operations

at the discretion of Foundation. The dividend regarding the cumulative protective preference shares, if issued, is equal to the average of the Euribor interest, calculated for loans with a term of one year – pro rata the number of days to which such percentage applied – during the financial year for which the distribution is made, plus a maximum of four percentage points. The lastly mentioned increase shall be determined by the board of directors, subject to the approval of the supervisory board. The interest and credit risk is limited. The fair value of the option right is zero. The option of issuing such cumulative protective preference shares was not exercised during the period under review.

29. COMMITMENTS AND CONTINGENT LIABILITIES Operational lease obligations

The operational lease obligations relate primarily to the operational lease of some floating and other construction equipment, cars and offices. Additional clauses are not taken into account presuming that these are not unconditional. Non-redeemable operating lease contracts are recognized at nominal amounts and are due as follows:

2017

2016

24,247 33,836 11,663 69,746

31,309 53,547 12,493 97,349

Guarantees The guarantee commitments as at 31 December 2017 amounted to EUR 565 million (2016: EUR 776 million) and can be specified as follows:

2017

2016

58,300 505,300

86,000 689,000

1,400

Lease obligations and other financial obligations

1,000

565,000

776,000

The above-mentioned guarantees outstanding as at 31 December 2017 refer to guarantees and counter guarantees provided to financial institutions for approximately EUR 564 million (2016: approximately EUR 775 million). At year-end 2017, 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 152 million (2016: EUR 244 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 2017 capital expenditure commitments amounted to EUR 120 million (year-end 2016: EUR 62 million). Capital contribution obligations At year-end 2017 capital contribution obligations relating to Public Private Partnerships (‘PPP’) amount to nil (2016: EUR 12.5 million, refer to note 17). 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.