Download - Ferrovial - Annual Report 2012

Consolidated financial statements at 31 December 2011
Ferrovial S.A. and Subsidiaries
3. Noteworthy in connection with the other investees was the exclusion from the scope of consolidation of the 40% interest held
by the Group in Cintra Chile amounting to EUR 159 million, the sale of which was agreed upon on 16 November 2011, as described
in Notes 1.2 and 26.
a. Information relating to BAA
In view of the importance of this investment, and as indicated in Notes 1.2 and 2, following is a detail of the balance sheet and income
statement relating to this group of companies, together with comments on the changes therein in 2011. The balance sheet includes an
intermediate column with balances at October 2011 in order to provide an understanding of the changes in the balance up to the date
on which the 5.88% ownership interest was sold.
The balance sheet figures shown relate to the full balances of BAA. The 49.99% of the equity of the investee do not correspond to the
carrying amount of the investment, since the carrying amount also includes the amount of the gain arising from the remeasurement of
the investment retained at fair value following the sale of the 5.88% ownership interest in this company in October 2011. The gain was
recognised as an addition to goodwill. As required by IAS 28, in future years the possibility of impairment will be assessed for the full
carrying amount of the investment by comparing its recoverable amount with its carrying amount.
At year-end there was no indication that the fair value determined at the date of sale of the 5.88% ownership interest might have
become impaired.
Changes in the balance sheet 2011-2010
BAA (100%) Millions of euros 12/11 10/11 12/10 BAA (100%) Millions of euros 12/11 10/11 12/10
Non-current assets 21,828 21,126 20,868 Equity 2,313 2,402 2,552
Goodwill 3,668 3,545 3,575 Equity attributable to Ferrovial 1,156 1,201 1,426
Investments in infrastructure projects 17,405 16,759 16,561 Deferred income 1 1 4
Non-current financial assets 48 50 78 Non-current liabilities 17,939 17,260 18,148
Pension surplus 46 100 0 Provisions for pensions 34 0 77
Deferred tax assets 0 0 0 Bank borrowings 14,264 13,806 14,737
Financial derivatives 660 672 653 Deferred tax liabilities 2,080 2,137 2,418
Other non-current assets 0 0 0 Financial derivatives 1,554 1,310 908
Current assets 575 619 897 Other non-current liabilities 7 7 9
Trade and other receivables 372 283 402 Current liabilities 2,150 2,082 1,061
Cash and cash equivalents 192 327 488 Bank borrowings 1,319 1,325 280
Other current assets 11 9 8 Trade and other payables 812 735 736
Other current liabilities 19 22 46
TOTAL ASSETS 22,403 21,745 21,765 TOTAL EQUITY AND LIABILITIES 22,403 21,745 21,765
‐ Goodwill
The decrease in the goodwill with respect to 2010 was due exclusively to the exchange rate effect, which had a positive impact of EUR
93 milion at 31 December 2011.
‐ Investments in infrastructure projects
In 2011 significant investments amounting to approximately EUR 978 million were recognised, mainly under “Property, Plant and
Equipment in the Course of Construction”. These additions include most notably the investment in the new Terminal 2 at Heathrow
airport, which accounted for around one-half of the investment made in the year, which will continue to grow in 2012 and 2013 as the
date on which the Terminal will be opened draws closer. Other investments made related to baggage transport systems and work on
the completion of Terminal 5C.
Also, the investments in infrastructure projects were reduced by EUR 671 million due to the period depreciation charge. The change in
the pound sterling exchange rate against the euro had a positive impact of EUR 539 million on this line item at 31 December 2011.
‐ Derivative financial instruments at fair value
The net overall value (asset and liability positions) of these financial instruments was EUR -893 million at 31 December 2011, as
compared with EUR -255 milion at 31 December 2010. Following is a description of the main effects that arose in 2011:
o Index linked swaps: the fair value of these derivatives fell from EUR -343 million to EUR -769 million at 31 December 2011
due to the increase in the inflation rate (RPI) in the UK. Since these derivatives do not qualify for hedge accounting, this change
had an impact on financial results as a fair value adjustment of EUR -102 million (effect of EUR 38 million on the net profit of
Ferrovial). The borrowing costs incurred in the year on financing amounted to EUR 146 million (effect of EUR -55 million on the
net profit of Ferrovial). At year-end the notional value of these derivatives amounted to EUR 6,287 million (GBP 5,254 million).
Ferrovial, S.A. Consolidated financial statements at 31 December 2011 37