Reconciliation schedule by type of provision
|
x € 1 million |
Warranty obligations |
Work in progress losses |
Provision share appreciation rights |
Environmental risks |
Other provisions |
Total provisions |
|
31 December 2023 |
31.0 |
15.5 |
0.7 |
2.4 |
15.2 |
64.8 |
|
New in consolidation |
0.2 |
- |
- |
- |
- |
0.2 |
|
Reversal unused amounts |
-0.4 |
-0.9 |
-0.6 |
- |
-0.2 |
-2.1 |
|
Additions to provisions |
7.3 |
15.4 |
5.1 |
2.2 |
7.9 |
37.9 |
|
Provisions used |
-8.1 |
-10.7 |
- |
-0.2 |
-13.1 |
-32.1 |
|
31 December 2024 |
30.0 |
19.3 |
5.2 |
4.4 |
9.8 |
68.7 |
|
New in consolidation |
1.3 |
- |
- |
- |
- |
1.3 |
|
Reversal unused amounts |
-0.9 |
-0.8 |
-0.6 |
-1.6 |
-2.0 |
-5.9 |
|
Additions to provisions |
5.9 |
20.0 |
8.2 |
- |
7.2 |
41.3 |
|
Provisions used |
-6.9 |
-16.7 |
-0.1 |
0.9 |
-7.1 |
-29.9 |
|
31 December 2025 |
29.4 |
21.8 |
12.7 |
3.7 |
7.9 |
75.5 |
Ageing of provisions
|
x € 1 million |
31 December 2025 |
31 December 2024 |
|
Non-current portion |
49.2 |
38.5 |
|
Current portion |
26.3 |
30.2 |
|
Total |
75.5 |
68.7 |
Provision for warranty obligations
The provision for warranty obligations relates to complaints and defects that have become apparent after completion of projects and that are covered by the warranty. The provision is recognised after the underlying products or services have been sold and delivered and when the expected costs are necessary to remedy such defects. The amount of the expected costs depends in part on the estimated allocation of responsibility between the construction partners involved. Most of the related obligations are expected to arise over the next two years.
Loss provision for work in progress
If a contract with a client for the execution of a project becomes onerous, the entire amount of the loss is immediately recognised in the statement of profit or loss and included as a provision for losses on work in progress in the provisions in the statement of financial position. The projects to which these losses relate will be completed within two years.
Provision for share appreciation rights (SARs)
The provision for SARs relates to a liability from share-based payments settled in cash. These are rights (share appreciation rights, SARs) granted to employees that become unconditional five years after grant, as of 1 May 2028.
Provision for environmental risks
A provision is recognised for the remediation of contaminated sites in accordance with the Group’s environmental policy and applicable laws and regulations. This item includes the expected costs of soil remediation. On the basis of decisions of the competent authorities and soil surveys performed, remediation costs have been estimated per site. The period within which remediation must take place differs by site. If remediation is required to take place at a later date, there is an obligation to monitor the contamination. The expected monitoring costs are also included in the provision.
Other provisions
The other provisions relate mainly to employees’ second year of sickness, restructuring costs and joint ventures in which the carrying amount of the investment is negative and for which the Group is wholly or partly liable for the investee’s debts (or has the firm intention to enable the investee (for its share) to settle its debts).