Boskalis Annual Report 2018

114 ANNUAL REPORT 2018 – BOSKALIS FINANCIAL STATEMENTS 2018 A UAL REP RT 2018 -- BOSKALIS FINANCIAL STATEMENTS 2018 114 Equities Bonds Cash (non-interest-bearing) Other receivables and payables Unquoted investments Total plan assets Total result defined benefit plans Income tax Effective return on plan assets Discount rate Expected future salary increases Expected future inflation

The composition of plan assets is as follows:

31 DECEMBER 2018

2017

2,400

19,252 129,892 149,144

137,470 139,870

Investments quoted in active markets

917

1,420

9,896

-

10,813

1,420

150,683

150,564

As at 31 December 2018 and 31 December 2017 the plan assets did not include shares issued by Royal Boskalis Westminster N.V.

Pension funds periodically perform asset liability management studies to assess the matching of investment assets with the amount and duration of pension liabilities. Based on the outcome of these studies the nature, mix and duration of assets are regularly adjusted. The average duration of the obligations of the pension plans is about 24 years (2017: 22 years).

The table below presents the pension costs from defined benefit pension plans:

2018

2017

5,409

10,318

Pension costs for defined benefit pension plans charged to the consolidated statement of profit or loss

- 1,542

- 1,046 9,272 - 1,504 7,768

Actuarial gains and losses and asset limitation recognized directly in equity

3,867

39

Actuarial gains and losses and asset limitation recognized directly in equity net of income tax

3,906

4,780

3,451

The pension charges for the main pension plans are predominantly in euros. As a consequence, the exchange rate exposure for pension charges in other currencies is considered not material.

The accumulated actuarial gains and losses and the balance of the limitation on net plan assets amount to:

2018

2017

Accumulated actuarial gains and losses as at 31 December Asset limitation on net plan assets as at 31 December

- 33,017

- 13,547 - 15,603 - 29,150

-

- 33,017

In 2019 the Group expects to contribute premiums of EUR 2.0 million (2018: EUR 2.2 million) to funded defined benefit plans and premiums of EUR 0.3 million (2018: EUR 0.3 million) to unfunded defined benefit plans.

The principal actuarial assumptions used for the calculations were:

2018

2017

1.97% 1.00% 1.80% 1.01% 1.00%

2.26% 0.80% 1.90% 0.90% 0.44%

Expected future pension increases for active participants Expected future pension increases for inactive participants