A N N U A L R E P O R T A N D A C C O U N T S - CMVM

Notes to the Consolidated Financial Statements at 31 st December 2008
41 -DERIVATIVE SECURITIES
During the year ended on the 31 st December 2008, the Group contracted a set of derivative securities aimed at minimizing exposure risks to
exchange rate variances. The existing derivative securities consist in exchange rate swap contracts.
This type of security contracting is done taking in consideration the risks which affect assets and liabilities and after verifying which existing
instruments in the market seem to be more adequate to cover those risks.
The contracting of these operations is subject to prior approval by the Board of Directors. They are permanently monitored, namely through the
analysis of several indicators related to these securities, in particular the evolution of its market value and the estimated cash-flows and the
market value sensitivity to the alterations in the key-variables that condition the structures, with the objective of evaluating the financial effects.
The registration of the derivative securities is done in accordance with the provisions of IAS 39, being measured by its fair value, which is based
on evaluations done by financial institutions.
Being coverage securities or securitieds held for negotiation, they are qualified in compliance with the provisions of IAS 39.
Securities not qualified as coverage (negotiation)
The existing securities on the 31 st December 2008 are classified as securities not qualified as coverage (negotiation), being its nature and fair
value on that date, as follows:
Type of operation Maturity Underlying amount Fair value
Interest rate swap – fixed rate 30 th April 2009 34,000 (358)
Interest rate swap – fixed rate 30 th June 2009 65,000 (90)
Interest rate swap – fixed rate 30 th June 2009 135,000 (188)
Interest rate swap – fixed rate 1 st July 2033 15,640 (5,452)
(6,088)
The variances in fair value of these negotiation securities are directly registered in the results statements of the periods in which they occur.
42 - OTHER FINANCIAL COMMITMENTS
Control of Investee Companies
Most of the financing operations taken by operational companies or by sub-holdings do not foresee, in respective contracts, maintaining the
control of most of its capital by Teixeira Duarte - Engenharia e Construções, S.A.. However, comfort letters requested to the parent-company
for the purpose of contracting these operations, usually contain the commitment of non-alienating the control (direct and/or indirect) of those
associated companies.
On the 31 st December 2008 and 2007, the comfort letters granted by the parent-company and other affiliates amounted to 605,579 and 431,345
thousand Euros, respectively.
On the 31 st December 2008 and 2007, factoring contracts were in force without any right of recourse, which were registered as accounts
receivable reduction, amounting to 129,471 and 133,206 thousand Euros, respectively. In accordance with the contractual conditions, the
Group’s responsibility is essentially restricted to the guarantee of acceptance by the customers whose invoices are the object of factoring.
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