ONE ROOF

Notes to the Consolidated Financial Statements
172 Annual Report 2009
Other disclosures
32. Undiluted and diluted earnings per share
Undiluted earnings per share are calculated by dividing the
consolidated net profit attributable to the Company’s stock by
the average number of shares in circulation. This indicator can
become diluted as a result of potential shares (mainly stock
options and convertible bonds). HOCHTIEF’s share-based
payment arrangements do not have a dilutive effect on earnings.
Consequently, diluted and undiluted earnings per share
are identical.
33. Reporting on financial instruments
Financial instruments include financial assets and liabilities and
contractual claims and obligations relating to exchanges and
transfers of financial assets. Financial instruments can be derivative
or non-derivative.
Non-derivative financial assets mostly comprise cash and
cash equivalents, marketable securities, trade receivables and
other financial assets. Marketable securities are carried at fair
value. The fair values of available-for-sale financial assets are
established with reference to market prices or determined
using accepted valuation methods.
Non-derivative financial liabilities are mostly current liabilities
measured at cost.
Holdings of non-derivative financial instruments are carried on
the Balance Sheet; the maximum risk of loss or default is equal
to total financial assets. Any such risk identified in respect of
financial assets is accounted for with an impairment loss.
Risk management
All financial activities in the HOCHTIEF Group are conducted
on the basis of a Group-wide financial framework directive.
This is fleshed out by individual, function-specific operating
directives on issues such as currency and collateral manage-
ment.
2009 2008
restated
Consolidated net profit
(EUR thousand)
Number of shares in circulation
in thousands (weighted
195,222 156,744
average) 66,522 69,353
Earnings per share (EUR) 2.93 2.26
Dividend per share (EUR)
Proposed dividend per share
1.40
(EUR) 1.50
These lay down principles for dealing with the various classes
of financial risk.
Within the Finance corporate center, trading, control and settlement
activities are divided between front, middle and back
offices. This ensures effective risk management in that monitoring
and settlement of front office external trading activities
are performed by a separate and independent back office. All
external trading actions are also subject to at least dual control.
Internal authorizations to give instructions are strictly limited
in number and monetary amount, and are reassessed at
least once a year.
Management of liquidity risk
HOCHTIEF uses predominantly centralized liquidity structures—
in particular cash pooling—to pool liquidity at Group level,
among other things to avoid liquidity bottlenecks at the level of
individual entities. The central liquidity position is calculated at
regular intervals and budgeted by means of monthly liquidity
planning over a rolling 18-month period. Liquidity planning is
supplemented by stress scenarios and incorporated in the active
management of HOCHTIEF’s securities holdings and loan
portfolio.
Issuance of four new promissory note loans has enabled the
Group once again to spread borrowing over a larger range of
lenders. Additionally, the HOCHTIEF Group further enhanced
its financial leeway in fiscal 2009 by converting part of its syndicated
guarantee facility into a EUR 400 million syndicated
revolving credit facility.
The tables below show maximum payments as of the balance
sheet date. The tables show the worst-case scenario for
HOCHTIEF, i.e. the earliest possible contractual payment date
in each case. Creditors’ rights of termination are taken into account.
Foreign currency items are translated using the closing
rate as of the balance sheet date. Interest payments on variable
rate items are translated uniformly using the last interest rate
fixed prior to the balance sheet date. Both primary and derivative
financial instruments (for example, forward exchange contracts
and interest rate swaps) are taken into account. Credit
facilities granted but not yet drawn in their full amount are also
included, as are financial guarantees given by the Group.
The maximum payments shown in the following tables (worstcase
scenario) are offset by contractually fixed receipts in the
same periods that are not shown here (for example, from trade
receivables). These will cover most of the cash outflows
shown.