The fair value of the long-term and short-term loans and other payables with a fixed interest rate is determined based on the present value of future cash flows for which the discount rate is derived from relevant interest curves. The fair value of these loans and other payables is categorized as level 3 (31 December 2019: level 3). EXPOSURE TO CREDIT RISK The payment behavior of the Group’s customers remains unchanged in 2020. The outbreak of COVID-19 has not yet impacted the Group’s expected credit loss and allowances for doubtful accounts materially. 22. BOARD OF MANAGEMENT DECLARATION The Board of Management of Royal Boskalis Westminster N.V. hereby declares that, to the best of its knowledge, the Interim Consolidated Financial Statements for the first half year of 2020 as prepared in accordance with International Financial Reporting Standard (IFRS) ‘IAS 34 Interim Financial Reporting’ gives a true and fair view of the assets, liabilities, financial position and the profit or loss of Royal Boskalis Westminster N.V. and all its business undertakings included in the consolidation and that the semi-annual report gives a fair view of the information required in accordance with Section 5:25d subsections 8 and 9 of the Dutch Financial Supervision Act (Wet op het financieel toezicht).
20. SHARE BUYBACK PROGRAM On 15 March 2019 the Group announced a share buyback program of EUR 100 million, to reduce the capital outstanding. The repurchased shares in this program can be summarized as follows:
Share buyback program
Number of shares (in millions) Amount (in millions of EUR)
21. FINANCIAL INSTRUMENTS FAIR VALUE
The fair value of the majority of the financial instruments does not differ materially from the carrying amount, with the exception of long-term and short-term loans and other payables with a fixed interest rate. The fair value of these liabilities exceeded the book value by EUR 23.9 million as at 30 June 2020 (31 December 2019: EUR 12.7 million higher). The following financial instruments have been recognized at fair value in the Condensed Consolidated Statement of Financial Position:
30 June 2020 31 December 2019
(in millions of EUR)
FINANCIAL ASSETS Derivatives non-current
Papendrecht / Sliedrecht, the Netherlands, 19 August 2020
6.0 3.3 9.3
Board of Management dr. P.A.M. Berdowski, chairman T.L. Baartmans B.H. Heijermans C. van Noort, CFO
FINANCIAL LIABILITIES Derivatives non-current
FAIR VALUE HIERARCHY A fair value hierarchy is defined in accordance with IFRS 13 for the fair value measurement of the recognized financial instruments: Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). The fair value of derivatives is based on future cash flows, objectively determinable forward rates of the relevant interest rates, foreign currencies and commodities at balance sheet date and forward rates according to the respective contracts. Moreover the discount rate applied is derived from the relevant interest curves. The fair value of derivatives is categorized as level 2 (31 December 2019: level 2).