Notes to the Financial Statements - Efacec

5.2 Goodwill
The breakdown of goodwill by affi liate/associate company is as follows:
31.12.2007 31.12.2006
ATM - Assistência Total em Manutenção, SA 4.577.159 4.577.159
Grupo TECH M5 3.549.415 2.556.615
Engimais 1.971.508 1.971.508
O&M Serviços, S.A. 207.628 207.628
ENT - Empresa Nacional de Telecomunicações, SA (a) 204.736 204.736
BCI - BRISA Conservação de Infra-estruturas, SA 124.211 124.211
Águas da Figueira, SA 54.791 54.791
Bauen Efacec, SA 33.454 33.454
Efacec Moçambique, Lda. 697.116 0
Efacec Energy Service, Ltda. 585.579 0
Advanced Control Systems, Inc. 10.104.798 0
Total 22.110.396 9.730.102
(a) In 2006, a merger of the net assets of this affi liate into EFACEC – Sistemas Electrónicos S.A took place.
The change in Goodwill in the Tech M5 Group in 2007 totalling 992,800 Euro, was due to the last deferred payments made in
accordance with the share sale and purchase contract.
The remaining changes relate to acquisitions of shareholdings that took place during the year, in particular 51% of the share capital
of EFACEC Moçambique, Lda, at the beginning of 2007, 66.7% of Energy Service, Ltda (Brazil) and 99.56% of ACS-Advanced
Control Systems, Inc. (USA). In each case, the values booked are equal to the difference between the cost of acquisition, already
paid or payment to be expected on future dates, compared to the accounting value of assets and liabilities. In the above cases,
there were no corrections to the related accounting values
An impairment test was carried out based on discounted future cash fl ow projections, which revealed no loss in value.
6. Investments in group and associate companies
This line refl ects the value of investments made in associated companies, adjusted at the balance sheet date using the equity
method. It includes the value of subsidiary companies, when for justifi able reasons; they are excluded from the consolidation
(Note 31.2), in which case they are valued at acquisition cost. The line shows the value of shareholdings at the date of the balance
sheet and the value of supplementary capital and borrowings granted to the entities concerned (Note 27).
The movements that occurred during the period were as follows:
31.12.2007 31.12.2006
Opening balance 7.290.641 5.459.505
Increases in shareholdings 75.222 0
Decreases in shareholdings 0 0
Share in profi ts/losses of Associates 1.086.098 1.446.576
Other movements in equity of Associates -725.389 246.896
Exchange rate differences -89.395 55.604
Closing balance 0 0
Borrowings granted -76.577 82.088
Closing balance 7.560.600 7.290.641
The amount shown in increases in shareholdings includes 71,871 Euro concerning supplementary capital in Águas da Figueira. The
remaining 3,350 Euro concern the Efacec’s shareholding in Vestiparque, a subsidiary which was recently set up but excluded from
consolidation in this fi nancial year (Note 31.2).
The share of associated company results relates mainly to S2M – Sociedade de Manutenção de Metropoli, S.A (689,300 Euro).
The line “Other movements in equity” includes 818,686 Euro for dividends distributed by the associate company S2M.
Acquisition differences concerning shareholdings in O&M Services and in Águas da Figueira are shown in the line Goodwill (Note 5).
21
2007 Consolidated and
Individual Financial Statments