Boskalis Annual Report 2020

128 128

29.1.2 LIQUIDITY RISK Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due.

The Group’s approach to managing liquidity is aimed at ensuring that it will have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions. Liquidity projections including available credit facilities are incorporated in the regular management information reviewed by the Board of Management. The focus of the liquidity review is on the net financing capacity, being free cash (see note 22) plus available credit facilities in relation to financial liabilities (see note 24). The total of free cash and available credit facilities at year-end amounted to EUR 1.2 billion (2019: EUR 0.9 billion). Furthermore, based on the Group’s financial ratios it can be concluded that the Group has significant debt capacity available under an (implied) investment grade credit profile.

The following are the contractual maturities of financial liabilities, including estimated interest payments and excluding the impact of netting agreements:

Contractual cash flows One year or less

More than 5 years

As at 31 December 2020

Book value

1 - 5 years

US private placements Export credit facility

265,330 102,446

290,231 111,953

9,722

280,509 43,712

-

11,206

57,035

Other interest-bearing borrowings

8,651 9,555

9,964 9,597

3,497 9,597

6,467

- -

Bank overdrafts Lease liabilities

-

120,948

128,689

30,256

56,890

41,543

Trade and other payables

1,101,265

1,101,265

1,101,265

- -

- - -

Income tax payable

146,043

146,043

146,043

Derivatives

9,793

9,793

9,132

661

1,764,031

1,807,535

1,320,718

388,239

98,578

Contractual cash flows One year or less

More than 5 years

As at 31 December 2019

Book value

1 - 5 years

ANNUAL REPORT 2020 – BOSKALIS FINANCIAL STATEMENTS 2020 A NUAL REPORT 2020 -- BOSKALIS FINANCIAL S ATEMENTS 20 US private placements Revolving multi-currency credit facility Other interest-bearing borrowings Bank overdrafts Lease liabilities Trade and other payables Income tax payable Derivatives

289,124 50,000

326,955 50,000

10,597 50,000

316,358

- - - - - - -

-

4,934

5,814

607

5,207

29,775 108,313

29,829 120,512

29,829 25,969

-

46,071

48,472

1,001,869

1,001,869

1,001,869

- -

146,094 12,570

146,094 12,570

146,094

5,584

6,986

1,642,679

1,693,643

1,270,549

374,622

48,472

29.1.3 MARKET RISK Market risk concerns the risk that Group income or the value of investments in financial instruments is adversely affected by changes in market prices, such as currency exchange rates, interest rates and fuel prices. The objective of managing market risks is to keep the market risk position within acceptable boundaries while achieving the best possible return. Currency risk The presentation currency of the Group is the euro. A number of Group companies (the most important of which being Dockwise, Gardline and Horizon) and substantial joint ventures and associates (Smit Lamnalco, Keppel Smit Towage, Asian Lift) have other functional currencies than the euro. The main other currency is the US dollar (the functional currency of the Dockwise, Smit Lamnalco) and to a lesser extent the Pound Sterling and Singapore dollar. The revenue and expenses of these companies are largely or entirely based on their functional currency, other than the euro. In 2020 Group companies, joint ventures and associates with a functional currency other than the euro contributed approximately 27% (2019: 30%) to Group revenue, -38% (2019: 35%) to the operating result excluding impairment charges and 26% (2019: 30%) to EBITDA.