Boskalis Annual Report 2020

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As disclosed in the table above and as elaborated on in note 10, the Share in the result of joint ventures and associates includes an amount of EUR 26.8 million for our stake in the impairment on certain vessels as accounted for by a joint venture. In addition an impairment charge of EUR 96.2 million was recorded on the carrying value of two joint ventures. The recoverable amounts were determined, for each investment, based on the higher of the fair value less cost to sell and value in use calculations using discounted cash flow models. The values were determined based on 100% figures, taking into account the net debt of the joint venture, and adjusted for our stake. Values in use were determined by discounting the expected future cash flows from the continued use of the investment. Management projects cash flows based on past trends and estimates of future market developments, cost developments and investment plans. These projections also factor in market conditions. In the projections, cash flows were based on management’s most recent forecasts. Key assumptions in the calculation of value in use of the investments are the growth rate applied in the calculation of the terminal value and to the discount rate used. Cash flows beyond ten years are extrapolated using an estimated long-term growth rate of 1.0%-2.0%. The applicable growth rate does not exceed the long-term average growth rate which may be expected for the activities. The pre-tax discount rates used in the calculation range from 10.8%-12.9% and is determined per CGU by means of an iterative calculation using the post-tax discount rates (determined by an external valuator), projected post-tax cash flows and expected tax rate. If the cash flow projections used in the value in use calculations would have been 3% lower, the Group would have recognized an additional impairment charge of EUR 9 million. If the estimated discount rates for these joint ventures would have been 1% higher than disclosed above, the Group would have recognized an additional impairment charge of approximately EUR 24 million. Fair values less cost to sell were based on EBITDA-multiple models, determined with the assistance of an external valuator. Given the range of the values, the EBITDA-multiples and the uncertainties in the current market conditions, it was assumed for both joint ventures when determining the recoverable amount that the fair values would not exceed the value in use.

The main joint ventures of the Group are:

Interest in joint ventures





Lamnalco Marine


50% 50% 50% 49% 49% 30% 63%

50% 50% 50% 49% 49% 30%

Ocean Marine Egypt S.A.E.


Asian Lift Pte. Ltd.

Singapore Singapore Singapore

Keppel Smit Towage Pte Ltd

Maju Maritime Pte Ltd

Penta-Ocean / Hyundai / Boskalis JV PTE. Ltd Singapore

Horizon Survey Company (FZE)

United Arab Emirates


On 27 January 2020 the Group obtained control of Horizon Group (Horizon) by acquiring the remaining 37.5%. Under IFRS the transaction is accounted for a sale of the joint venture and the subsequent acquisition of a 100% subsidiary (see note 5). The joint venture Donjon-Smit acquired Ardent Americas LLC in April 2020.

The main associates of the Group are:

Interest in associates





Damietta for Maritime Services Company S.A.E. Egypt



The voting rights in associates are equal to the ownership interests.


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