Boskalis Annual Report 2018

115

Sensitivity to changes in the applied assumptions can be summarized as follows:

Assumptions as at 31 December 2018

Increase of 0.25%

Decrease of 0.25%

Effect on defined benefit obligation Change in discount rate Change in expected future salary increases Change in pension increase for active participants Change in pension increase for inactive participants

- 9,196 2,581 1,758 3,843

10,259 - 2,470 - 1,663 - 3,580

Assumptions as at 31 December 2017

Increase of 0.25%

Decrease of 0.25%

Effect on defined benefit obligation Change in discount rate Change in expected future salary increases Change in pension increase for active participants Change in pension increase for inactive participants

- 7,534 1,939 1,914 3,083

8,344 - 1,870 - 1,815 - 2,887

Historical information:

2018

2017

2016

2015

2014

Defined benefit obligation Fair value of plan assets

- 178,923 150,683 - 28,240 - 4,555 - 32,795

- 159,058 150,564

- 160,380 153,196

- 753,035 734,794 - 18,241

- 747,808 691,932 - 55,876

Surplus / deficit (-)

- 8,494

- 7,184

Unfunded pension liabilities Total surplus / deficit (-)

- 4,827

- 5,142

- 5,175

- 5,316

- 13,321

- 12,326

- 23,416

- 61,192

The reduction of defined benefit obligations and the fair value of plan assets in 2016 mainly related to the settlement of two defined benefit plans in 2016.

25.2 DEFINED CONTRIBUTION PENSION PLANS In 2019 the Group expects to contribute an amount of EUR 41.0 million (2018: EUR 40.0 million) to premiums for defined contributions plans. This concerns contributions to defined contribution pension plans and pension plans arranged with multi-employer pension funds, which are accounted for as defined contribution pension plans in these financial statements, in accordance with IFRS.

26. PROVISIONS

ONEROUS CONTRACTS

WARRANTIES

RESTRUCTURING

OTHER

TOTAL 2018

TOTAL 2017

5,619

14,548

9,879

9,310

39,356

55,462

Balance as at 1 January REVISED Assumed in business combinations Provisions made during the year Provisions used during the year Provisions reversed during the year

-

-

-

-

-

2,790

13,129

6,016

6,407

721

26,273 - 7,101 - 2,262

21,883 - 20,968 - 18,803 - 1,008 39,356 17,763 21,593 39,356

- 119 - 120

-

- 6,982

-

- 1,208

- 785

- 149

Exchange rate differences and other movements

- 38

-

5

30

- 3

18,471

19,356

8,524

9,912

56,263

Balance as at 31 December

Current

18,471

2,369

6,652 1,872 8,524

912

28,404 27,859 56,263

Non-current

-

16,987 19,356

9,000 9,912

18,471

Balance as at 31 December

The provision for onerous contracts includes a provision for unfavorable contracts, both as part of contracts with customers and as part of the liabilities assumed in business combinations.

Restructuring provisions relate mainly to the restructuring of Group head office and Gardline.

Other provisions mainly relate to various claims made against the Group or threatening to be made including potential sanctions, from legal, regulatory and governmental proceedings. The Group disputes these claims and proceedings and has made an assessment of the amount of cash outflows that can be reasonably estimated. As litigation is inherently unpredictable, the possible outcome is uncertain and the amount may differ from the provisions listed above.

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