Download - Ferrovial - Annual Report 2012

Consolidated financial statements at 31 December 2011
Ferrovial S.A. and Subsidiaries
- Actuarial gains and losses on obligations amounting to EUR 37 million.
- Actuarial gains and losses on assets (EUR 35 million) due to the difference between the expected return at the beginning of the year
and the actual return.
The summary of the main actuarial assumptions used to calculate the defined benefit pension plan obligations is as follows:
2011 2010
DEFINED BENEFIT PLANS Amey Ltd Group BAA Amey Ltd Group
Main assumptions
Salary increase 2.5% / 3.95% / 4.45% 5.10% 2.5% - 5%
Discount rate 4.70% 5.50% 5.50%
Expected inflation rate 2.95% 3.60% 3.50%
Expected returns on assets 2.7%-8.0% 6.30% 2.60%
Mortality (years) 84.2-90.9 85.9-87.9 84.5-89.1%
The mortality assumptions used by the Amey Group to calculate its pension obligations are based on the actuarial mortality tables,
entailing an estimated life expectancy of between 84.2 and 90.9 years.
b) Employer contributions:
In 2011 contributions at the Amey Group totalled EUR 30 million, corresponding to EUR 21 million to rebalance the rest of the plan,
with the remainder involving ordinary contributions.
The projected contributions agreed upon with the beneficiaries for 2012 total EUR 5 million for the Amey Group.
Additionally, the Amey Group agreed on special contributions amounting to EUR 21 million for the coming year.
c) Return on assets:
The summary of the defined benefit pension plan assets by type stated at their fair value and including the expected percentage return
thereon for 2011 and 2010 is as follows:
Millions of euros
Amey Ltd Group BAA Amey Ltd Group
Eur % Eur % Eur %
Plan assets (fair value)
Equity instruments 336 8.00% 608 7.88% 360 8.50%
Debt instruments 175 2.8%-4.7% 1,141 5.16% 108 4.2%-5.5%
Buildings 29 7.50% 0 n/a 15 8.10%
Cash and other 22 2.70% 1,003 0.50% 45 4.00%
Total plan assets 563 2,752 0 529
To assess expected returns on the Amey Group plan assets, the actuaries used the following criteria:
Equity instruments: expected returns of 8.0%.
Debt instruments: the returns on sovereign debt and the performance of the corporate bonds debt making up the plan are used to
calculate the returns on these instruments.
Buildings: forecast returns 0.5% below returns on equity instruments.
Cash and other: long-term returns available for swaps.
Actual returns:
The Amey Group had actual returns on its plan assets totalling EUR 3 million in 2011 and EUR 49 million in 2010. The difference
between forecast and actual returns is recognised in equity.
There are no financial assets issued by the company or buildings occupied by it.
Ferrovial, S.A. Consolidated financial statements at 31 December 2011 57