Transactions between group companies

Mentioned below are transactions carried out between Grupo Ferrovial companies which, since they form part of normal operations as regards their purpose and conditions, have not been eliminated for the following reason when drawing up the consolidated financial statements of the Company.

As explained in detail in Note 2.2.d) of the Company Report, balances and transactions relating to construction work performed by the construction division for the infrastructure concession companies are not eliminated in the above-mentioned process of drawing up the consolidated financial statements since, at a consolidated level, these types of contract are rated as being construction contracts in which the works are understood as being carried out, insofar as these works are being executed, for third parties, since the final owner of the work performed, from both an economic and legal standpoint, is the granting administration.

In 2007, Grupo Ferrovial's construction division invoiced the infrastructure division for the work performed, and for advances related to that work, a total of 451,595,000 euros (383,911,000 euros in 2006), recognizing 229,206,000 euros as sales for that work (490,036,000 euros in 2006).

The profit on these transactions that was not eliminated upon consolidation, which is attributable to the percentage of Grupo Ferrovial's stake in the concession companies that received the services, amounted to 8,476,000 euros in 2007, net of taxes and minority interests. In 2006, the amount was 32,568,000 euros.