Boskalis_Annual_Report_2016

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The fair value of the majority of the financial instruments does not differ materially from the book value, with the exception of a number of loans and other payables with a fixed rate. The fair value of these instruments is disclosed below.

The fair value and the related hierarchy of the aforementioned financial instruments are:

As at 31 December 2015

As at 31 December 2016

CARRYING AMOUNT

CARRYING AMOUNT

FAIR VALUE

HIERACHY

FAIR VALUE

HIERACHY

Assets Derivatives

55,934

55,934

2

80,804 115,379

80,804 115,379

2 1

Financial assets available for sale

-

-

-

Liabilities Derivatives

- 14,867 - 717,306

- 14,867 - 779,830

2 3

- 9,656

- 9,656

2 3

Interest bearing loans with fixed interest rates

- 761,431

- 779,607

Derivatives The composition of outstanding derivatives at year-end is presented below.

WITHIN ONE YEAR

AFTER ONE YEAR

TOTAL

2016

USD forward selling (in US dollar) USD forward buying (in US dollar)

- 181,748 38,628 - 88,100 136,288

- 14,347

- 196,095

-

38,628

Forward selling of other currencies (average contract rates in EUR) Forward buying of other currencies (average contract rates in EUR)

- 28,562 20,620

- 116,662 156,908

Fuel hedges (in US dollar) Interest rate swaps (in EUR)

947

- -

947

59,669

59,669

WITHIN ONE YEAR

AFTER ONE YEAR

TOTAL

2015

USD forward selling (in US dollar) USD forward buying (in US dollar)

- 170,625

- 55,984

- 226,609

31,160

1,768

32,928

Forward selling of other currencies (average contract rates in EUR) Forward buying of other currencies (average contract rates in EUR)

- 107,484 106,607

- 26,790 14,993

- 134,274 121,600

Fuel hedges (in US dollar) Interest rate swaps (in EUR)

- 6,103 5,386

-

- 6,103 78,788

73,402

The remaining time to maturity of these derivatives is directly related to the remaining time to maturity of the relating underlying contracts in the order book.

Cash flows from forward currency buying and selling can be rolled forward at the settlement date if they differ from the underlying cash flows.

The results on effective cash flow hedges are recognized in Group equity as follows:

2015

2016

Hedging reserve as at 1 January

- 19,039

- 15,207

Movement in fair value of effective cash flow hedges recognized in Group equity

- 41,502 48,515 7,013 - 3,181 3,832

- 2,004 15,265 13,261 - 2,034 11,227

Transferred to the statement of profit or loss Total directly recognized in Group equity

Taxation

Directly charged to hedging reserve (net of taxes)

Change in fair value of cash flow hedges from joint ventures and associated companies, after taxation

- - -

6,365

Reclassification of hedge reserve to statement of profit or loss

- 6,290

75

Balance of hedging reserve as at 31 December

- 15,207

- 3,905

ANNUAL REPORT 2016 – BOSKALIS