Boskalis Annual Report 2018

92 ANNUAL REPORT 2018 – BOSKALIS FINANCIAL STATEMENTS 2018 A UAL REP RT 2018 -- BOSKALIS FINANCIAL STATEMENTS 2018 92 The Netherlands Rest of Europe Australia / Asia Middle East Africa North and South America

5. BUSINESS COMBINATIONS AND OTHER SIGNIFICANT TRANSACTIONS 5.1 BUSINESS COMBINATIONS AND OTHER SIGNIFICANT TRANSACTIONS IN PRIOR YEAR On 15 August 2017 the Group acquired control over Gardline Holdings Ltd, United Kingdom, through the acquisition of all its outstanding shares, for a cash consideration of GBP 34.0 million (EUR 37.4 million). The acquisition has resulted in a positive impact on the net result for the year 2017 of approximately EUR 14.6 million, comprising a net-profit of EUR 0.8 million (excluding restructuring expenses), a gain from the bargain purchase of EUR 24.1 million, restructuring expenses of EUR 9.2 million and transaction costs relating to the acquisition of EUR 1.2 million. The contribution to the Group in 2017 was EUR 24.9 million to revenue and EUR 14.6 million to net profit, respectively. On 28 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; the impact on the net result in 2017 was a loss of EUR 0.9 million. 5.2 SALE OF INTEREST IN PARTNERSHIP SAAM SMIT TOWAGE Early February 2019 the Group signed an agreement with Sudamericana Agencias Aereas y Maritimas S.A. (SAAM) relating to the sale and purchase of the Group’s interest in the partnership Saam Smit Towage. Boskalis expects to receive USD 201 million in cash for its interest. In the fourth quarter of 2018 the interest in the partnership, previously reported under Joint ventures and associates, is classified as a disposal group. The disposal group, within the operational segment Towage & Salvage, is valued, after recognizing an impairment charge of EUR 93.6 million, at its fair value of EUR 175.8 million. As from the classifying as a disposal group, no further share in the results of the partnership will be recognized by the Group. As at 31 December 2018 the cumulative unrecognized income and expenses relating to the disposal group amounts to a net income of EUR 42.1 million and consist of positive currency translation differences. The disposal of our interest in the partnership, which is expected to be realized in the first half 2019, is expected to result in a positive book result of approximately EUR 43 million, before, if any, corporate income tax due on this transaction. On 12 January 2017 the Group sold its subsidiary Aannemingsmaatschappij Markus B.V. The transaction did not result in a book result.

6. REVENUE Revenue by region can be specified as follows:

REVENUE

2018

2017 REVISED*

605,582 951,989 336,070 355,238 106,148 214,522

497,771 856,522 364,442 256,392 84,840 282,656

2,569,549

2,342,623

* The comparative figures of region Australia / Asia are revised with EUR 5.4 million due to the first-time application of IFRS 15.

A region is determined as the location at which projects are realized and services are provided. For sea transport the region refers to the port of arrival (or nearest point of arrival) of the transport or the project location for offshore installation. A large part of the Group’s revenue is generated on projects for a variety of clients in various countries and geographical areas. Because of the often-incidental nature and spread of the contracts none of these clients qualifies structurally as a material client in relation to the total revenue of the Group.