Download - Ferrovial - Annual Report 2012

Consolidated financial statements for 2011 and 2010
Ferrovial S.A. and Subsidiaries
Translation of consolidated financial statements originally issued in
Spanish and prepared in accordance with the regulatory financial
reporting framework applicable to the Group (see Notes 3 and 40).
In the event of a discrepancy, the Spanish-language version
prevails.
NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS FOR 2011
1. Company activities and scope of consolidation.
1.1 Company activities:
The consolidated Ferrovial Group (“Ferrovial”) comprises the
Parent Ferrovial, S.A. and its subsidiaries, which are detailed in
Appendix I. Its registered office is at calle Príncipe de Vergara
135, Madrid.
Through these companies, Ferrovial engages in the following
lines of business, which are its primary reporting segments
pursuant to IFRS 8.
a. Construction and execution of all types of public and
private works in Spain and abroad, operating basically
through Ferrovial Agromán, S.A., the company that heads
this business Division. Notable are the international
business carried on in Poland through Budimex, S.A. and
its investees, the leading construction group in that
market, which is listed on the Warsaw stock market and in
which the Group holds a 59.06% ownership interest, and
the business carried on in the United States (Texas)
through the Webber Group, which is wholly owned by
Ferrovial.
b. Toll roads. This activity consists of the development,
financing, construction and operation of toll road projects
through Cintra Infraestructuras, S.A., in which Ferrovial,
S.A. holds a 100% ownership interest.
c. Airports. This activity consists of the development,
financing and operation of airports, basically through BAA,
a UK company that operates six airports in the United
Kingdom and other airport assets through its investees;
Ferrovial, S.A. has an ownership interest of 49.99% in
BAA.
d. Services. This division is headed by Ferrovial Servicios,
S.A. and includes the following activities: a) upkeep and
maintenance of infrastructure, buildings and facilities
(through Amey in the UK and Ferroser Infraestructuras,
S.A. and Ferrovial Servicios, S.A. in Spain); b) urban
services and waste treatment (basically through Cespa,
S.A.).
In addition to the description of Ferrovial’s activities and for the
purposes of understanding these financial statements, it should
be noted that a significant part of the business carried on by
the Toll roads, Airports and Services Divisions consists of the
performance of infrastructure projects.
Unlike the above, in most cases involving airports, licenses are
of an indefinite nature which is why, although IFRIC 12 is not
applicable, the arrangements are very similar to concession
arrangements.
Accordingly, and in order to aid understanding of the Group’s
financial performance, these financial statements present
separately the impact of projects of this nature on both nonfinancial
non-current assets (“Investments in Infrastructure
Projects” includes the property, plant and equipment, intangible
assets and investment property assigned to these projects) and
non-current financial assets, borrowings and cash flows.
It is also important to highlight that two of the Group's main
assets are its investments of 49.99% in BAA and 43.23% in
ETR 407, which have been accounted for using the equity
method since 2011 and 2010, respectively. In order to provide
detailed information on the two companies Note 10 on
"Investments in Companies Accounted for Using the Equity
Method" includes information relating to the changes in the
two companies' balance sheets and income statements, and
this information is completed in other Notes with data
considered to be of interest.
1.2 Changes in the scope of consolidation
The main changes in the scope of consolidation in 2011 were
as follows:
- Airports Division: on 26 October 2011, 5.88% of the share
capital of FGP Topco, the head of the BAA Group, was sold. As
a result of this transaction and of the changes that it brought
about in the composition of that company's Board of Directors
and in the shareholders' agreement, Ferrovial lost control of
this Group of companies. Specifically, with the new wording of
the shareholders' agreement, Ferrovial now has five votes on
the Board of Directors of FGP Topco and of its main
subsidiaries, whereas the other three shareholders together
have six votes (CDPQ 3 votes, GIC 2 votes and Alinda 1 vote).
The impact of this transaction on the consolidated financial
statements is described in Note 2.
- Services Division; on 17 February the investment of Ferrovial
Servicios in Swissport, which had been classified as an asset
held for sale in the 2010 consolidated financial statements, as
indicated in Note 13 to these consolidated financial statements,
was sold.
- Toll Roads Division; on 10 January the 50.00% ownership
interest of Cintra Infraestructuras in its subsidiary Autopista
Trados 45, which had been accounted for using the equity
method and classified as an asset held for sale in the 2010
consolidated financial statements, as indicated in Note 13 to
these consolidated financial statements, was formally
completed.
These projects are conducted mainly in the Toll Roads and
Services areas under long-term arrangements in which the
concession operator, in which the Group generally has interest
together with other partners, finances the construction or
upgrade of public infrastructure and which fall within the scope
of application of IFRIC 12, Service Concession Arrangements.
Ferrovial, S.A. Consolidated financial statements at 31 December 2011 7