Annual Report 2008 Sustainable design & engineering - Grontmij

Notes to the consolidated financial statements
The reconciliation of the applicable tax rate and the effective tax rate is as follows:
In thousands of euros; percentages rounded off to the nearest decimal
2008 2007
Profit before income tax 50,721 40,939
Tax charge based on weighted average applicable rate 13,920 27.4% 11,939 29.2%
Reduction of tax rates -69 -0.1% -1,001 -2.4%
Unrecognised income tax losses -150 -0.3% -723 -1.8%
Recognition of previously unrecognised income tax losses - - -38 -0.1%
Over- (under) provision in prior years -28 -0.1% 210 0.5%
Tax exempted results from equity accounted investees -2,585 -5.1% -2,328 -5.7%
Non-deductable expenses 836 1.7% 1,269 3.1%
Other 27 0.1% -56 -0.1%
Tax charge and effective tax rate, respectively 11,951 23.6% 9,272 22.7%
33.Related parties
Grontmij´s and/or the Group’s related parties comprise subsidiaries, joint ventures, associates, the Executive Board, the Supervisory Board,
Stichting Pensioenfonds Grontmij, Stichting Administratiekantoor van Aandelen Grontmij N.V., Stichting Medewerkersparticipatie Grontmij and
Stichting Employee Share Purchase Plan.
A full list of subsidiaries, joint ventures and associates is filed with the Trade Register in Utrecht, the Netherlands.
Subsidiaries Grontmij
Transactions between Grontmij and its subsidiaries in 2008 concerned an amount of € 4,524,000 in management fees (2007: € 4,862,000),
€ 14,398,000 in operational transactions (2007: € 10,587,000), and € 24,800,000 in financing (2007: € 36,254,000).
Grontmij has as at 31 December 2008 amounts due from subsidiaries of € 101,182,000 (2007: € 105,922,000). Further, Grontmij has as at
31 December 2008 amounts due to subsidiaries of € 27,033,000 (2007: € 20,844,000).
Joint ventures
Transactions between the Group and its joint ventures comprise among other things financing. At the end of 2008 this concerned an amount
of € 15,573,000 (2007: € 7,318,000). In 2008, dividends to an amount of € 4,435,000 (2007: € 16,525,000) were received.
At year-end 2008, amounts totalling € 450,000 are due to the Group from its joint ventures (2007: € 347,000) and amounts totalling € 945,000
are due to its joint ventures from the Group (2007: € 3,687,000). Transactions with joint ventures are on an arm’s length basis. In 2008 a project
was sold to a joint venture to an amount of € 2.1 million.
Associates
Transactions between the Group and its associates comprise among other things financing. At the end of 2008 this concerned an amount
of € 2,634,000 (2007: € 2,296,000). In 2008, dividends to an amount of € 1,330,000 (2007: € 537,000) were received.
At year-end 2008, amounts totalling € 2,853,000 are due to the Group from its associates (2007: € 426,000) and amounts totalling € 131,000
are due to its associates from the Group (2007: € 749,000).
GRONTMIJ | ANNUAL REPORT 2008 115