Boskalis_Annual Report_2017

99

2016

JOINT VENTURES

ASSOCIATED COMPANIES

TOTAL

Balance as at 1 January 2016

608,036

584,737

1,192,773

Investments

-

422

422

Investment in Kotug Smit Towage

129,239 - 20,844

- -

129,239 - 20,844

Decrease after obtaining control in VBMS Holding B.V.

Sale of investment in Fugro N.V. and reclassification to financial instruments available for sale

-

- 332,073 - 46,743

- 332,073 - 104,724

Share in result of joint ventures and associated companies

- 57,981

Share in other comprehensive income of joint ventures and associated companies

- 2,312 - 9,226 - 39,721 20,538 19,693

494

- 1,818 - 9,326 - 42,572 15,967 - 365,729

Repayment share capital / share premium

- 100

Dividends received

- 2,851 - 4,571

Currency translation differences and other movements

- 385,422

Balance as at 31 December 2016

627,729

199,315

827,044

The Group had earlier committed to a limited capital funding obligation for SAAone Holding B.V., which was effected in October 2017. The loans, amounting to EUR 13.6 million in total, being part of the Group’s investment in SAAone Holding B.V, are included in interest in joint ventures in the table above. The interest income of EUR 0.3 million related to these loans is reported under share in result of joint ventures and associated companies. The share in the result of joint ventures and associated companies in the comparative period for 2016, as disclosed in the table above, amounts to EUR -104.7 million. Following the inclusion of the book profit Fugro N.V. of EUR 21.8 million, the Statement of Profit or Loss 2016 shows EUR -82.9 million in the line share in result of joint ventures and associated companies. The carrying amount of the Group’s share in the associated company Fugro N.V. was zero as at 31 December 2016 following the sale of (certificates of) shares in Fugro N.V. During 2016 the Group reduced its participation from 28.6% to 9.4% and following the loss of significant influence the remaining investment was reclassified as an available-for-sale financial asset (see note 18.2 ‘Financial instruments available-for- sale’). The quoted price at the time when significant influence was lost is applied in determining the sales price for which the remaining investment in Fugro N.V. was classified as an available-for-sale financial asset. The reduction of the investment in Fugro N.V. and the reclassification of the remaining investment as available for sale resulted in a book result in 2016. Based on the information available when the Group lost its significant influence, this sale resulted in a book loss of EUR 2.2 million, including the recycling profit of translation and hedging reserves amounting to EUR 2.3 million based on the book value of our investment including our share in the first half-year loss of Fugro N.V. amounting to EUR 27.9 million. The total impact of the Group’s investment in Fugro N.V. on the 2016 Statement of Profit or Loss of the Group was a loss of EUR 30.1 million. Based on the annual results as made public by Fugro N.V. on 24 February 2017, this impact would consist of the share of the Group in the full-year loss of Fugro N.V., amounting to a loss of EUR 51.9 million, and consequently a book result amounting to a profit of EUR 21.8 million. Fugro N.V. did not distribute a dividend in 2017 and 2016. In 2016 the group incurred a non-cash impairment loss of EUR 94 million as share in impairment losses accounted for by joint ventures, mainly Smit Lamnalco, related to impairments on vessels due to poor market conditions.

ANNUAL REPORT 2017 – BOSKALIS A L REP RT 2017 -- BOSKALIS