Boskalis Annual Report 2018

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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:

2018

2017

Within one year

23,065 43,250 20,211 86,526

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

Between one and five years After more than five years

Guarantees The guarantee commitments as at 31 December 2018 amounted to EUR 691 million (2017: EUR 565 million) and can be specified as follows:

2018

2017

Guarantees provided with respect to: Joint ventures

61,300 628,300

58,300 505,300

Contracts and joint operations

Lease obligations and other financial obligations

1,400

1,400

691,000

565,000

The above-mentioned guarantees outstanding as at 31 December 2018 refer to guarantees and counter guarantees provided to financial institutions for approximately EUR 690 million (2017: approximately EUR 564 million). At year-end 2018, 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 151 million (2017: EUR 152 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 2018 capital expenditure and acquisition commitments amounted to EUR 162 million (year-end 2017: EUR 120 million). Capital contribution obligations 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. Other Several legal proceedings and investigations, including regulatory and other governmental, are regularly instituted against (entities of) Royal Boskalis Westminster N.V. Provisions were made where deemed necessary and if a reliable estimate of the future cash outflows could be made. Dutch companies form part of a fiscal unity. The companies are therefore liable for the tax obligations of the fiscal unity as a whole.

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