Annual report 20108.31 MB - Boskalis

Financial statements 2010Effectiveinterest rateOne yearor less 1 - 2 years 2 - 3 years 3 - 4 years 4 - 5 years Over 5 years TotalAs at December 31, 2009Cash and cash equivalents 0.15% 199,254 — — — — — 199,254Short-term deposits 0.68% 395,582 — — — — — 395,582Mortgage loans (euro) 4.13% - 1,135 - 1,135 - 1,135 - 1,135 - 1,133 — - 5,673Mortgage loans (US$) 5.50% - 128 — — — — — - 128Other bank loans (euro) 5.24% - 7,324 - 8,364 - 8,364 - 8,364 - 12,195 — - 44,611Other bank loans (US$) 4.90% - 14,058 - 4,795 - 5,095 - 1,205 - 1,205 - 3,313 - 29,671Bank overdrafts (other) 21.00% - 1,347 — — — — — - 1,347570,844 - 14,294 - 14,594 - 10,704 - 14,533 - 3,313 513,406The US dollar loans are mainly used for financing property, plant and equipment in proportionally consolidatedstrategic alliances. The other bank loans expressed in US dollar have no fixed interest rates. The effectiveinterest rate of these loans does not differ materially from the actual market rates. The interest rate renewaldates of the loans are mainly due within three months after year-end 2010.Sensitivity analysisIn managing interest rate risks the Group aims to reduce the impact of short-term fluctuations on the Group’searnings. In the long term, however, permanent changes in interest rates will have an impact on profit.At the reporting date the interest rate profile of the Group’s interest-bearing financial instruments, taking intoaccount the corresponding effective hedge instruments, was:2010 2009Fixed rate instrumentsFinancial assets 88,343 186,917Financial liabilities - 661,778 - 58,283- 573,435 128,634Variable rate instrumentsFinancial assets 269,401 407,919Financial liabilities - 147,466 - 23,147121,935 384,772A drop of 100 basis points in interest rates at December 31, 2010 would have decreased the Group’s profitbefore income tax by approximately € 1.2 million (2009: € 3.8 million), with all other variables, in particularcurrency exchange rates, held constant.Price risksRisks related to price developments on the purchasing side, such as amongst others increased wages, costs ofmaterials, sub-contracting costs and fuel, which are usually for the Group’s account, are also taken into accountwhen preparing cost price calculations and tenders. Wherever possible, especially on projects that extend over along period of time, price index clauses are included in contracts.With regard to fuel price risk, the Board of Management has established a fuel price risk management policystipulating approved fuel price risk management instruments. These include: delivery of fuel by the client, priceescalation clauses, fixed price supply contracts and financial derivatives (forward, future and swap contracts).110 Annual Report 2010