ONE ROOF

Notes to the Consolidated Financial Statements
188 Annual Report 2009
Explanatory notes to the segmental data
Intersegment sales represent revenue generated between divisions
and segments. They are transacted on an arm’s length
basis. External sales mainly comprise revenue recognized
using the percentage-of-completion method in construction,
construction management and contract mining, in the amount
of EUR 16,500,225,000 (2008: EUR 17,255,456,000). The sum
of external sales and intersegment sales gives total sales revenue
for each division.
The share of profits and losses of equity-method associates
and jointly controlled entities comprises income and expenses,
including impairment losses relating to companies accounted
for using the equity method.
Depreciation and amortization relate to intangible assets with
finite useful lives, property, plant and equipment, and investment
properties.
Purchases comprise additions to intangible assets, property,
plant and equipment, investment properties, equity-method
investments (excluding equity-method adjustments), subsidiaries
and other participating interests.
Total assets are equivalent to the divisions’ totals in the Con-
solidated Balance Sheet. Gross debt equals total assets
minus consolidated shareholders’ equity.
Operating earnings (EBITA) are derived from earnings from
operating activities as follows:
(EUR thousand)
Earnings from operating
2009 2008
restated
activities
+ Net income from participat-
525,271 287,318
ing interests 229,815 305,987
– Non-operating earnings – (+) 14,987
+ Interest credited
Operating earnings
12,142 44,572
(EBITA) 767,228 652,864
This calculation is based on the following considerations:
Net income from participating interests contains all income
and expense from equity stakes held for operational purposes
and is thus an integral part of operating earnings.
Income and expenses classified as exceptional items for
business management purposes or resulting from exceptional
transactions hinder analysis of ordinary operations and should
be attributed to non-operating earnings. There were no such
transactions in the year under review. The negative figure of
EUR 14,987,000 for prior-year non-operating earnings consisted
entirely of restructuring expenses at HOCHTIEF Europe.
Earnings from operating activities are adjusted by crediting in-
terest on the average financing balance for 2009 and 2008. In
business management terms, this interest credit has an operating,
not a financing, origin since it represents the amount by
which operating income has been reduced. The average financing
balance is calculated by subtracting the level of inventories
and construction costs (POC) that require funding from interestbearing
financial resources. Such resources comprise advance
and progress payments received for long-term construction
contracts and the balance of receivables and payables in respect
of third parties and construction joint ventures.
36. Notes to the Consolidated Statement of Cash Flows
The Consolidated Statement of Cash Flows classifies cash
flows into operating, investing and financing activities. Exchange
rate effects are eliminated and their influence on the cash position
is disclosed separately. Changes in cash and cash equivalents
due to acquisitions and disposals of consolidated companies
are shown separately under cash used in or provided
by investing activities. The EUR 35,227,000 decrease in cash
and cash equivalents due to consolidation changes related
entirely to cash and cash equivalents included in disposals.
The prior-year decrease of EUR 19,660,000 represented the
balance of EUR 758,000 in additions to cash and cash equivalents
from acquisitions and EUR 20,418,000 in cash and cash
equivalents included in disposals.
The EUR 1,769,644,000 (2008: EUR 1,787,713,000) year-end
total for cash and cash equivalents shown on the cash flow
statement matches the cash and cash equivalents item on the
balance sheet. The total comprises EUR 2,036,000 (2008:
EUR 1,743,000) in petty cash, EUR 1,122,980,000 (2008: EUR
1,063,771,000) in cash balances at banks and EUR 644,628,000
(2008: EUR 722,199,000) in marketable securities with maturities
of no more than three months at the time of acquisition.
Cash and cash equivalents to the value of EUR 10,390,000
are subject to restrictions (2008: EUR 1,364,000).