Boskalis Annual Report 2020

131 131

As at 31 December 2019

Interest rate One year or less

1 - 5 years

Over 5 years

Total

Cash and cash equivalents

0.00% 1.61% 3.66% 1.00% 7.13% 1.79% 0.36%

375,900 23,674

- -

- - -

375,900 23,674 - 289,124 - 50,000 - 4,934 - 108,313 - 29,775 - 82,572

Short-term deposits

US Private Placements (USD)

-

- 289,124

Revolving multi-currency credit facility (EUR) Other interest-bearing borrowings (EUR)

- 50,000

-

- -

- 255

- 4,679 - 47,462

Lease liabilities Bank overdrafts

- 24,285 - 29,775 295,259

- 36,566

-

-

- 341,265

- 36,566

The US Private Placements, the Export Credit Facility and some of the cash and cash equivalents, short-term deposits and other interest-bearing borrowings have fixed interest rates.

Sensitivity analysis In managing interest rate risks the Group aims to reduce the impact of short-term fluctuations on Group earnings. In the long term, however, permanent changes in interest rates have an impact on profit.

At the reporting date the interest rate profile of the Group’s interest-bearing financial instruments was:

2019

2020

FIXED RATE INSTRUMENTS (INCLUDING LEASES) Financial assets

23,674

222,750 - 497,375 - 274,625

Financial liabilities

- 402,371 - 378,697

VARIABLE RATE INSTRUMENTS Financial assets

375,900 - 79,775 296,125

601,797 - 9,555 592,242

Financial liabilities

A drop of 100 basis points, insofar as possible, in interest rates at 31 December 2020 would have had no material impact on the Group’s profit before income tax (2019: no material impact), with all other variables, in particular currency exchange rates, remaining constant. A rise of 100 basis points in interest rates at 31 December 2020 would also have had no material impact on the Group’s profit before income tax (2019: no material impact), with all other variables, in particular currency exchange rates, remaining constant. Price risks Risks related to price developments on the purchasing side which are usually borne by the Group, for example developments in wages, costs of materials, sub-contracting costs and fuel, are also taken into account when preparing cost price calculations and tenders. Price index clauses are included in contracts wherever possible, especially on projects that extend over a long period of time. The Board of Management has established a fuel price risk management policy stipulating, amongst other things, approved fuel price risk management instruments based on items such as the amount of fuel costs and the execution period of projects in excess of thresholds. In the event of changes to a project timeline, the Group evaluates the situation to ensure compliance with its risk management objectives and assesses whether a rollover of its position or an adjustment to the hedge is applicable. At year-end 2020 outstanding derivates hedged the price risk of approximately 26,499 tons of gasoil (2019: 51,000 tons) and nil tons of High-Sulphur Fuel Oil (2019: 1,500 tons).

ANNUAL REPORT 2020 – BOSKALIS A NUAL REPORT 2020 -- BOSKALIS