Notes to the company financial statements

1. Summary of significant accounting policies

1.1 Basis of preparation

The company financial statements of Royal BAM Group nv (‘the Company’ or ‘BAM’) have been prepared in accordance with Part 9, Book 2 of the Netherlands Civil Code. In accordance with subsection 8 of section 362, Book 2 of the Netherlands Civil Code, the recognition and measurement principles applied in these parent company financial statements are the same as those applied in the consolidated financial statements (see note 2 to the consolidated financial statements).

1.2 Investments in subsidiaries

Investments in subsidiaries are measured at net asset value. The net asset value is calculated using the accounting policies, as described in note 2 to the consolidated financial statements. The net asset value of subsidiaries comprises the cost, excluding goodwill, of BAM’s share in the net assets of the subsidiary, plus BAM’s share in income or losses since acquisition, less dividends received. 

2. Property, plant and equipment

 

Land and
buildings

 Other
assets

Total

As at 1 January 2014

     

Cost

16,557

12,186

28,743

Accumulated depreciation

(5,023)

(7,697)

(12,720)

 

11,534

4,489

16,023

       

Additions

1,560

2,768

4,328

Disposals

-

(27)

(27)

Depreciation charges

(764)

(2,330)

(3,094)

 

796

411

1,207

       

As at 31 December 2014

     

Cost

 16,360 

 14,846 

 31,206 

Accumulated depreciation

 (4,030)

 (9,946)

 (13,976)

 

 12,330 

 4,900 

 17,230 

       

Additions

 1,649 

 6,654 

 8,303 

Disposals

 (350)

 (567)

 (917)

Depreciation charges

 (854)

 (2,989)

 (3,843)

Impairment charges

 (763)

 - 

 (763)

 

 (318)

 3,098 

 2,780 

       

As at 31 December 2015

     

Cost

 16,896 

 17,076 

 33,972 

Accumulated depreciation

 (4,884)

 (9,078)

 (13,962)

 

 12,012 

 7,998 

 20,010 

3. Intangible assets

 

Goodwill

Non-
integrated
software

Total

As at 1 January 2014

     

Cost

539,587

1,724

541,311

Accumulated amortisation 

(155,731)

(806)

(156,537)

 

383,856

918

384,774

       

Reclassifications

(16,598)

-

(16,598)

Amortisation charges

-

(376)

(376)

Exchange rate differences 

9,478

-

9,478

 

(7,120)

(376)

(7,496)

       

As at 31 December 2014

     

Cost

 532,467 

 1,724 

 534,191 

Accumulated amortisation 

 (155,731)

 (1,182)

 (156,913)

 

 376,736 

 542 

 377,278 

       

Additions

 - 

 375 

 375 

Amortisation charges

 - 

 (332)

 (332)

Exchange rate differences

 9,377 

 - 

 9,377 

 

 9,377 

 43 

 9,420 

       

As at 31 December 2015

     

Cost

 541,844 

 2,099 

 543,943 

Accumulated amortisation

 (155,731)

 (1,514)

 (157,245)

 

 386,113 

 585 

 386,698 

4. Financial assets

 

Shares in
subsidiaries

Receivables
from
subsidiaries

Other
participating
interests

Other loans
and
receivables

Total

           

As at 1 January 2014

856,765

727,344

1,182

125

1,585,416

Net result for the year

 (97,535)

 - 

 (106)

 - 

 (97,641)

Dividends

 (17,477)

 - 

 - 

 - 

 (17,477)

Additions

 - 

 - 

 467 

 - 

 467 

Reclassifications

 59,053 

 (59,053)

 - 

 - 

 - 

Adjustments in group structure

 453 

 - 

 - 

 - 

 453 

Capital contributions

 32,018 

 - 

 - 

 - 

 32,018 

Loans granted and repayments

 - 

 (47,144)

 - 

 - 

 (47,144)

Cash flow hedge

 38,867 

 - 

 - 

 - 

 38,867 

Remeasurements of post-employment
benefit obligations

 (40,381)

 - 

 - 

 - 

 (40,381)

Exchange rate differences

 15,543 

 - 

 - 

 - 

 15,543 

As at 31 December 2014

 847,306 

 621,147 

 1,543 

 125 

 1,470,121 

           

Net result for the year

 29,116 

 - 

 - 

 - 

 29,116 

Dividends

 (3,595)

 - 

 - 

 - 

 (3,595)

Additions

 - 

 - 

 368 

 - 

 368 

Reclassifications

 24,068 

 (24,068)

 - 

 - 

 - 

Capital contributions

 21,000 

 - 

 - 

 - 

 21,000 

Loans granted and repayments

 - 

 (3,224)

 - 

 (125)

 (3,349)

Cash flow hedge

 2,932 

 - 

 - 

 - 

 2,932 

Remeasurements of post-employment benefit obligations

 35,405 

 - 

 - 

 - 

 35,405 

Exchange rate differences

 16,866 

 - 

 - 

 - 

 16,866 

As at 31 December 2015

 973,098 

 593,855 

 1,911 

 - 

 1,568,864 

None of the financial assets were subject to impairment.

A list of the principal subsidiaries is disclosed in section Other information.

5. Deferred tax assets

 

2015 

2014

     

Deferred tax assets

 188,649 

205,449

 

 188,649 

205,449

Deferred tax assets include the liquidation of old property development activities in Germany and the tax loss carry-forwards of the operations in the Netherlands to the extent that the realisation of the related tax benefit
through future taxable profits is probable offset against deferred tax liabilities.

Additional information on deferred tax assets and liabilities is disclosed in note 22 to the consolidated financial statements.

6. Receivables

 

2015 

2014

     

Amounts due from subsidiaries

 27,685 

15,120

Social security and other taxes

 544 

-

Prepayments and accrued income

 16,203 

17,575

 

 44,432 

32,695

     

Receivables are due within one year.

   

7. Cash and cash equivalents

 

2015 

2014

     

Cash at bank

 16,312 

70,456

 

 16,312 

70,456

     

Cash and cash equivalents are at the free disposal of the Company.

   

8. Equity attributable to shareholders of the Company

At year-end 2015, the authorised capital of the Group was 400 million ordinary shares (2014: 400 million) and 600 million preference shares (2014: 600 million), all with a nominal value of €0.10 per share (2014: €0.10 per share).
All issued shares have been paid in full.

Movements in the number of ordinary shares are as follows:

 

Number of
ordinary shares

Number of
treasury shares

Number of
ordinary shares
in issue

       

As at 1 January 2014

 269,424,089 

 - 

 269,424,089 

Dividends

 1,574,868 

 - 

 1,574,868 

As at 31 December 2014

 270,998,957 

 - 

 270,998,957 

       

Repurchase of ordinary shares

 - 

 604,975 

 (604,975)

As at 31 December 2015

 270,998,957 

 604,975 

 270,393,982 

Movements in shareholders’ equity are as follows:

 

Issued
and paid
capital

Share
premium

Reserves

Retained
earnings

Net result

Total

             

As at 1 January 2014

26,942

806,326

(411,476)

461,165

46,157

929,114

Net result for the year

 - 

 - 

 - 

 - 

 (108,172)

 (108,172)

Appropriation of result

 - 

 - 

 - 

 46,157 

 (46,157)

Dividends

 157 

 5,886 

 - 

 (13,471)

 - 

 (7,428)

Remeasurements of post-employment benefit obligations

 - 

 - 

 (49,157)

 - 

 - 

 (49,157)

Cash flow hedges

 - 

 - 

 37,972 

 - 

 - 

 37,972 

Other movements

 - 

 - 

 - 

 (146)

 - 

 (146)

Exchange rate differences

 - 

 - 

 25,211 

 - 

 - 

 25,211 

At 31 December 2014

 27,099 

 812,212 

 (397,450)

 493,705 

 (108,172)

 827,394 

             
             

Net result for the year

 - 

 - 

 - 

 - 

 10,180 

 10,180 

Appropriation of result

 - 

 - 

 - 

 (108,172)

 108,172 

 - 

Remeasurements of post-employment benefit obligations

 - 

 - 

 37,026 

 - 

 - 

 37,026 

Cash flow hedges

 - 

 - 

 4,094 

 - 

 - 

 4,094 

Repurchase of ordinary shares

 - 

 - 

 - 

 (3,092)

 - 

 (3,092)

Share-based payments

-

-

-

302

-

302

Exchange rate differences

 - 

 - 

 26,243 

 - 

 - 

 26,243 

At 31 December 2015

 27,099 

 812,212 

 (330,087)

 382,743 

 10,180 

 902,147 

8.1 Reserves

Reserves relate to the reserves for (cash flow) hedging, remeasurements of post-employment benefits and translation differences. The reserves for (cash flow) hedging and translation differences are legal reserves that are required by Dutch law. Distributions to the shareholders of the Company are restricted to the extent of the negative balance.

The hedging reserve amounts to €77 million negative (2014: €81 million negative), the remeasurements of post-employment benefits €226 million negative (2014: €263 million negative) and the translation reserve €27 million negative (2014: €54 million negative).

8.2 Dividends per share

The Company proposes to declare a dividend over the financial year 2015 of 2 eurocents in cash per ordinary share or in shares, at the option of the shareholders (2014: nil). Based on the number of ordinary shares outstanding at year-end 2015, a maximum of €5 million will be distributed as dividend on the ordinary shares. As yet, the dividend proposal has not been deducted from retained earnings under equity.

In line with the Group’s dividends policy the Company has not paid a dividend over the financial year 2014 following the net loss.

9. Provisions

 

2015 

2014

     

Employee benefits

 56,060 

68,123

Other

 - 

15,080

 

 56,060 

83,203

10. Borrowings

 

2015

2014

     

Subordinated loan

 125,000 

125,000

Other loans

 7,104 

8,030

 

 132,104 

133,030

Additional information on borrowings is disclosed in note 18 to the consolidated financial statements.

11.Current liabilities

 

2015

2014

     

Bank overdrafts

 1,163 

48,499

Subordinated loan

 (665)

(500)

Other loans

 926 

924

Amounts due to subsidiaries

 1,086,403 

1,044,491

Social security and other taxes

 - 

208

Provisions

9,647

-

Other liabilities

 37,180 

35,980

 

 1,134,654 

1,129,602

Provisions include the dividend guarantee provision relating to the disposal of the interest in Van Oord (€8.5 million) as well as a restructuring provision (€1.1 million).

12. Employees

During the year 2015, the Company had 210 (2014: 262) employees on average in FTE.

13. Related parties

The Company has entered into arrangements with a number of its subsidiaries and affiliated companies in the course of its business. These arrangements relate to service transactions and financing agreements and were conducted at market prices.

Additional information on key management compensation is disclosed in note 36 to the consolidated financial statements.

14. Commitments and contingencies

14.1 Guarantees

The Company has issued parent company guarantees amounting to €156 million (2014: €176 million) at year-end 2015. 

14.2 Third-party liability

The Company is jointly and severally liable for the debts of the subsidiaries based in the Netherlands pursuant to section 403, Book 2 of the Netherlands Civil Code.

The Company, together with other participants, has a joint and several liability for deficits in the Group’s cash pool as a whole.

The Company forms a fiscal unity with BAM’s major Dutch and certain other subsidiaries for income tax and VAT purposes and, for that reason, it is jointly and severally liable for the Dutch income tax and Dutch VAT liabilities of the whole fiscal unity. 

Bunnik, the Netherlands
17 February 2016 

Supervisory Board: 

Executive Board:

P.A.F.W. Elverding

R.P. van Wingerden

H. Scheffers

T. Menssen

J.-P. Hansen

E.J. Bax

C.M.C. Mahieu

 

H.L.J. Noy

 

K.S. Wester

 
   
Name

Company