6.8 RELATED PARTY TRANSACTIONS

Legislation

In relation to the disclosures on transactions that the Company (or Group companies) performs with related parties, Ministry of Economy and Finance Order EHA/3050/2004, of 15 September, on the information on related party transactions that must be disclosed by issuers of securities listed on official secondary markets must be taken into consideration.

Article 1.1 of the aforementioned order requires the inclusion in the half-yearly financial reports of quantified information on all the transactions performed by the reporting company with related parties. Also, Article 3.1 of the Order considers related party transactions to be any transfers of resources, services or obligations between related parties regardless of whether or not there is any consideration.

Related party transactions

The commercial transactions between the Company (or its Group companies) and related parties carried out in 2017 are disclosed below.

Where the profit or loss from a transaction cannot be stated, as it pertains to the entity or individual supplying the related good or service, the transaction has been marked with an asterisk ^(*).

a) Significant shareholders

The transactions performed (i) by the Company with its significant shareholders, their close family members or the entities over which those mentioned above might exercise significant influence; and (ii) by the Company with its subsidiaries are included in sections b) and c) below, together with the transactions performed by the Company or Group companies with directors and senior executives.

b) Transactions with directors and senior executives

This line item includes the transactions performed by the Company with its significant directors and senior executives, their close family members or the entities over which those mentioned above might exercise significant influence.

The information on remuneration and loans to directors and senior executives may be consulted in Note 6.6.

c) Transactions between Group employees, companies or entities

This line item includes the transactions performed (i) by the Company’s subsidiaries with their significant shareholders, close family members or the entities over which those mentioned above might exercise significant influence; and (ii) by the Company’s subsidiaries with their directors, senior executives, close family members or the entities over which those mentioned above might exercise significant influence. If the party related to the Company were so considered during a portion of the year, the transactions performed in that period are indicated.

Described below are transactions between the subsidiaries and the Company which, in all cases form part of their ordinary businesses as regards purpose and conditions and were not eliminated on consolidation for the following reason.

As explained in detail in Note 1.3.2, the balances and transactions relating to construction work performed by the Construction Division for the Group’s infrastructure concession operators are not eliminated on consolidation since, at consolidated level, contracts of this type are classed as construction contracts in which the work -to the extent that it is completed- is deemed to be performed for third parties, as the ultimate owner of the work is the grantor both from a financial and legal viewpoint.

In 2017 Ferrovial’s Construction Division billed those concession operators for EUR 391,813 thousand (2016: EUR 112,252 thousand) for work performed and related advance payments and, in this respect, recognised sales totalling EUR 411,158 thousand (2016: EUR 397,122 thousand).

In 2017 the profit from these transactions attributable to the Company’s holdings in the concession operators in question and not eliminated on consolidation, net of taxes and non-controlling interests, was EUR 18,301 thousand. In 2016 it was EUR 34,694 thousand.