Notes to the consolidated financial statements

Equity

Equity

Set out below are movements at 31 December 2007 and 2006:

 Equity

(1) Mainly includes reserves arising from the measurement of derivatives, pensions and currency translation differences.

(2) Includes results for the year and undistributed prior-year reserves.

 Descripción de imagen

(1) Mainly includes reserves arising from the measurement of derivatives, pensions and currency translation differences.

(2) Includes results for the year and undistributed prior-year reserves.

  1. Share capital and share premium
    At 31 December 31 2007, Grupo Ferrovial, S.A.’s share capital consists of 140,264,743 fully subscribed and paid registered shares with a par value of one euro each, all carrying the same rights. The share premium amounts to 193,192 thousand euro and is an unrestricted reserve. At 31 December 2007, the shareholder owning more than 10% of Grupo Ferrovial, S.A. is Portman Baela, S.L., which holds a 58.315% (same as in 2006). The parent company’s shares are listed on the continuous market in Spanish stock exchange and all shares carry the same voting and dividend rights.
  2. Treasury shares

    At 31 December 2007, Betonial S.A. holds 300,000 treasury shares in Grupo Ferrovial at an average purchase price of 74.14 euros per share (133,383 treasury shares at an average purchase price of 73.57 euros per share in 2006). A restricted reserve has been set up equal to the amount at which the treasury shares are recognised

  3. Other reserves
    Movements in other reserves in 2007 and 2006 are as follows:

     Movements in other reserves in 2007

     Movements in other reserves in 2006

  4. Retained earnings
    Set out below is an analysis of retained earnings for 2007 and 2006:

     Analysis of retained earnings for 2007 and 2006

    The movement of 591 million euro in 2007 retained earnings is due basically to the result for the year (income of 734 million euro), the dividend pay-out (-114 million euro) and dealings in treasury shares (-6 million euro). Set out below is a breakdown of restricted reserves:

     Breakdown of restricted reserves

    On 28 October 2006 the decision was taken to pay out 0.34 euros per share on account of 2006 income. This dividend was paid out on 15 November 2006 in the amount of 47,690,012.62 euros, after excluding treasury shares held at the payment date.In addition, the Annual General Meeting of Grupo Ferrovial, S.A. held on 30 March 2007 agreed to pay out an additional dividend of 0.66 euros per share, totalling 92,574,730.38 euros, charged to 2006 income, excluding treasury shares held at the date of the Annual General Meeting. This dividend was paid out on 16 May 2007.The total dividend paid out of 2006 income therefore amounted to 1 euro per share.On 25 October 2007, the Board of Directors of Grupo Ferrovial, S.A. agreed to pay out a dividend of 0.38 euros per share on account of 2007 income, payment having been made on 15 November 2007.
  5. Income and expense recognised during the year.
    Set out below is a breakdown of movements in equity in respect of income and expense recognised during 2007 and 2006:

     Breakdown of movements in equity


    Main movements in 2007
     

    The item “Gains/(losses) on hedging instruments” reflects the impact on equity of changes in the value of the effective portion of derivative financial instruments contracted by the Group and designated as hedges, amounting to -296 million euro, as explained in Note 11. The item “Actuarial gains/(losses) on defined benefit plans” reflects the impact on equity of actuarial losses and gains arising from adjustments and changes in assumptions relating to the Group’s defined benefit plans (see Note 18). 

    Finally, with regard to currency translation differences, the main movement in 2007 is due to the 9.1% appreciation of the euro against sterling, from 0.6739 at December 2006 to 0.7354 at December 2007. As indicated in Note 3.2 on exposure to foreign exchange risk, the main investment in sterling derives from the acquisition of the BAA Group in 2006. The effect of this investment on currency translation differences, net of the specific sterling debt (see Note 11 on net investment in foreign operations), was -335 million euro in 2007. This amount, together with the elimination of positive currency translation differences of 148 million euro on the sale of Budapest Airport (see Note 28), has caused a decrease of -483 million euro in currency translation differences. The Group also holds sterling investments in the United Kingdom through the Amey Group, having an impact of -38 million euro on currency translation differences in 2007. Other significant foreign currency investments relate to the US dollar, which depreciated from 1.2650 at December 2006 to 1.4583 at December 2007, also causing a negative impact on currency translation differences, relating mainly to the investments in the Chicago and Indiana toll roads (-19 million euro and -12 million euro, respectively).
  6. Non-Group companies with significant holdings in subsidiaries  
    At 31 December 2007, the following Group companies had other non-Group shareholders with interests of 10% or more:

Construction

Toll roads and car parks

Airports

Services