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

Economic risk vs. budget variances
The Group has an overall system of economic and budget control for each business, adapted to
each activity, which provides those responsible for each business with the necessary information
and allows them to control potential risks and make the most appropriate management decisions.
The economic and financial information generated within each division is periodically compared
with the projected data and indicators, variances regarding business volume, profitability, cash
flows and other relevant and reliable parameters are assessed and, where necessary, the
appropriate corrective measures are taken.
Price risk:
In Spain and in certain other countries in which the Group operates through its Energy division,
renewable energy-based electricity production is subject to legislation that establishes the option
to receive payment for free market sales. In substantially all cases, the Group chose this option
and, accordingly, is exposed to price fluctuations in the electricity market (pool price). However,
these prices are partially determined by reference to regulated tariffs (premium, incentive and
supplementary payments) and the long-term price fluctuation risk is greatly reduced as whole.
20.- Derivative financial instruments
Interest rate hedges
The Acciona Group regularly arranges interest rate derivatives, which are designated as hedges.
These instruments are used to hedge possible changes in cash flows due to interest payments on
long-term floating rate financial liabilities.
The detail of the derivative financial instruments arranged and outstanding at 31 December 2011
and 2010, which are recognised at market value in the accompanying consolidated balance sheet as
assets or liabilities, depending on this value and the method of inclusion in the Acciona Group, is
as follows:
Interest rate
hedges
(thousands
of euros)
Notional
amount
arranged
Financial
liabilities
Cash flow hedges:
2011 2010
Held-forsale
liabilities
Financia
l assets
Investment
in
associates
- Page 79 -
Notional
amount
arranged
Financial
liabilities
Held-forsale
liabilities
Financial
assets
Investment
in associates
Interest rate swaps 4,024,276 425,236 16,904 695 (143,384) 2,878,685 188,451 17,589 216 (55,699)
Collars 70,106 462 -- -- (7,649) 75,102 903 -- -- (6,254)
Caps 48,517 191 -- -- -- 55,517 725 -- -- --
Total 4,142,899 425,889 16,904 695 (151,033) 3,009,304 190,079 17,589 216 (61,953)
(*) The amount of the investment in associates indicated is net of tax.