ACCIONA, S.A. AND SUBSIDIARIES (Consolidated Group ...

Whenever there is a reasonable change in the basic assumptions that affect the recoverable
amount of the assets, the Group performs a sensitivity analysis to determine whether this change
may reduce the realisable value to below the carrying amount, in which case, an impairment loss
is recognised.
The recent performance of the property market in Spain as a result of the economic crisis has been
characterised by a major drop in prices and a significant lack of transactions and market
references. Property asset appraisals are subject to a high degree of subjectivity due to the
significant differences in the estimates of the time required to manage and sell land and of
discount rates. Also, in 2012 the information on prices is and will continue to be significantly
distorted as a result of the high volume of financially distressed transactions performed by
financial sector operators. At 31 December 2011, the directors of the Acciona Group estimated
that these market distortions would continue and even worsen in the near future, caused mainly by
the property portfolios in the hands of banks that will foreseeably be placed on the market at low
prices.
Faced with these uncertainties, the directors of the Acciona Group, taking into consideration the
recent performance of the Real Estate division, concluded that a conservative estimate of the
future performance of the division would entail the acceptance of prevailing market conditions,
marked by the aforementioned distortions, in terms of both maintaining its competitive position
and of making sales of assets for financial reasons.
As a result of all the foregoing, the Acciona Group requested an analysis from its valuer
SAVILLS of the potential impacts that could be disclosed in a sensitivity analysis in the appraisal
undertaken, in certain distressed scenarios, taking into consideration the distorting factors
discussed above, i.e. an across-the-board fall in prices and a delay in bringing into production
land-related assets, both completed and incomplete. On the basis of such scenarios, the outcome
of the analysis would disclose the existence of a fall in value of the property development assets
of Acciona Real Estate in relation to their carrying amounts net of impairment losses recognised
in previous years. At 31 December 2011, the Acciona Group, taking into consideration that these
scenarios represent the best conservative estimate of the range of economic conditions that will
prevail during the remaining useful life of the assets, resolved to recognise impairment losses
amounting to EUR 245,180 thousand, equal to the average of the sensitivity analysis, which were
charged to the accompanying consolidated income statement for 2011.
K) Treasury shares
At 31 December 2011, Acciona, S.A. and its subsidiaries Tibest Cuatro, S.A. and Finanzas Dos,
S.A. held 5,598,867 treasury shares representing 8.8102% of the share capital at that date. The
acquisition cost of these shares amounted to EUR 411,129 thousand. The acquisition cost of the
treasury shares and the gains or losses on transactions involving them are recognised directly in
equity (see Note 16).
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