Boskalis Annual Report 2018

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18. NON-CURRENT FINANCIAL ASSETS 18.1 OTHER NON-CURRENT RECEIVABLES

2018

2017

1,249

1,061

Balance as at 1 January

Changes

128

188

1,377

1,249

Balance as at 31 December

Other non-current receivables generally comprise long-term advance payments to suppliers.

18.2 FINANCIAL INSTRUMENTS AVAILABLE-FOR-SALE As at 1 January 2017 financial instruments available-for-sale consisted of the 9.4% investment in Fugro N.V. In February 2017 the Group sold its remaining investment in Fugro N.V. at EUR 14.50 per share. The net proceeds amounted to EUR 114.1 million.

19. INVENTORIES

2018

2017

Fuel and materials

32,754 66,316 99,070

34,727 53,439 88,166

Spare parts and other inventories

During 2018 EUR 0.2 million write-down on inventories was recognized (2017: EUR 0 million).

20. UNBILLED AND DEFERRED REVENUE Unbilled and deferred Group revenue relates to the contracting and execution of construction projects and to services. The recognition of revenue, timing of billings and cash collections result in unbilled receivables, accounts receivable and deferred revenue. In the contracting business amounts are billed as work progress in accordance with contractual terms, either at periodic intervals or upon achievement of contractual milestones. In the event that billing occurs subsequent to revenue recognition, unbilled revenue is recognized (as an asset). In the event that payments are received from customers based on deposits or invoices in advance of revenue recognition, deferred revenue is recognized (as a liability). In the services business amounts are billed based on contractually agreed schedules and/or milestones. As revenue is recognized/allocated to a large extent on the basis of sailing days, unbilled revenue or deferred revenue is recognized for the difference between revenues recognized and invoices issued.

AS AT 31 DECEMBER 2017

AS AT 31 DECEMBER 2018

AS AT 1 JANUARY 2017

Unbilled revenue Deferred revenue

304,856 - 221,920

167,594 - 277,550

125,272

- 428,676 82,936 - 109,956 - 303,404

Unbilled and deferred revenue of the Group is influenced by the mix of projects and services that are executed at a certain point of time. Inherent to the Group’s activities, the nature and amount of unbilled and deferred revenue depends on the specifics of the projects, due to the variety clients and to the ever- changing client base, contracts with different payment conditions, milestones and other details of contracts executed within a wide spectrum of economic environments. Furthermore, different payments terms are agreed in the contracts with customers and usually depend on the jurisdiction in which the services are performed. In 2018 approximately 95% of the unbilled amount of EUR 167,594 thousand as at 31 December 2017 was invoiced to customers by the Group. During 2018 unbilled revenue was not impacted by business combinations (during 2017 EUR 9.6 million was acquired via a business combination). Almost the entire amount of deferred revenue as at 31 December 2017 relates to work performed in 2018.

ANNUAL REPORT 2018 – BOSKALIS A L REP RT 2018 -- BOSKALIS