3.5 INVESTMENTS IN ASSOCIATES

The detail of the investments in companies accounted for using the equity method at 2017 year-end and of the changes therein in 2017 is shown in the table below. Due to their significance, the investments in 407 ETR (43.23%) and Heathrow Airport Holdings (HAH) (25%) are presented separately.

2017
(Millions of euros)

HAH (25%)

407 ETR (43.23%)

OTHER

TOTAL

Balance at 31/12/16

837

1,881

156

2,874

Share of results

87

125

39

251

Dividends

-148

-248

-28

-423

Exchange differences

-33

-106

-3

-143

Pensions

-15

0

3

-12

Changes in the scope of consolidation

0

0

148

148

Other

9

0

-17

-8

Balance at 31/12/17

737

1,652

298

2,687

Changes: The changes in "Investments in Associates" were due mainly to the distribution of dividends of EUR 423 million, partially offset by the share of results for the year (EUR 251 million), and the appreciation in value of the euro, mainly against the pound sterling and the Canadian dollar, which had a negative effect of EUR -143 million. Also worthy of note is the positive impact of the inclusion in this line item of the Portuguese Norte Litoral and Algarve toll roads (EUR 148 million) following the partial divestments that took place in 2017 and are described in Note 1.1.3, Changes in the scope of consolidation.

Impact on cash flows: The difference between the dividends of EUR 423 million in the foregoing table and the EUR 543 million disclosed in the consolidated statement of cash flows (see Note 5.3) relates mainly to interest received on loans granted to companies accounted for using the equity method classified under "Non-Current Financial Assets" in the consolidated statement of financial position (see Note 3.6) and the effect of the certain foreign currency hedges related to dividends received.

The changes in “Investments in Associates” in the consolidated statement of financial position in 2016 were as follows:

2016
(Millions of euros)

HAH (25%)

407 ETR (43.23%)

OTHER

TOTAL

Balance at 31/12/15

1,213

1,909

116

3,237

Share of results

-57

98

41

82

Dividends received and equity reimbursed

-102

-234

-31

-367

Exchange differences

-155

109

1

-45

Pensions

-55

0

-18

-73

Other

-6

0

47

40

Balance at 31/12/16

837

1,881

156

2,874

In view of the importance of the investments in HAH and 407 ETR, set forth below is a detail of the balance sheets and statements of profit or loss of these two companies, adjusted to bring them into line with Ferrovial’s accounting policies, together with comments on the changes therein in 2017.

Also, since the two ownership interests were remeasured when control was lost, giving rise to the recognition of goodwill, in accordance with IAS 28.40 et seq the possible existence of indications of impairment is assessed on an annual basis.

All sections open all paragraphs

to page top