Notes to the Consolidated Financial Statements
Accounting policies
The Consolidated Financial Statements as of September 30, 2008 are prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU.The Interim Financial Statements and the Interim Management Report have been neither audited nor reviewed.
This interim report is based on the Consolidated Financial Statements as of and for the year ending December 31, 2007. With effect from September 30, 2008, the discount factor for valuing domestic pension obligations was increased to 6.75 percent to reflect increased capital market interest rates (December 31, 2007: 5.5 percent). The change in Group structure has resulted in an adjustment relating to interest credited when determining operating earnings. Unlike in the previous year's published reports, an interest credit is only recognized for the divisions within the construction module, i.e. HOCHTIEF Americas, HOCHTIEF Asia Pacific and HOCHTIEF Europe. In all other respects, this report has been prepared using the same accounting policies as the 2007 Consolidated Financial Statements. Information on those accounting policies is given in the 2007 Annual Report.
Consolidation changes
Four domestic and 21 foreign companies were added to the consolidated group in the first nine months of fiscal 2008. Five domestic companies have been merged and one foreign company has been removed from the consolidated group.There has been a net increase of two in the number of domestic
and a net decrease of three in the number of foreign companies accounted for using the equity method. After these changes, the Consolidated Financial Statements include HOCHTIEF Aktiengesellschaft and a total of 49 domestic and 337 foreign consolidated companies plus 15 domestic and 97 foreign companies accounted for using the equity method.
Own shares
The Company held a total of 31,753 of its own shares as of September 30, 2008. These shares were acquired in January 2008 in order to offer them for purchase by persons in the Company's employment or in the employment of an affiliate. The shares represent EUR 81,288 (0.05 percent) of the Company's capital stock.In July 2008, the Company sold 21,247 of its own shares to persons in its employment or in the employment of an affiliate. 11,759 of these shares were sold at a price of EUR 50.94 each and 9,488 at a price of EUR 53.94 each. The shares represent EUR 54,392 (0.03 percent) of the Company"s capital stock.
Contingent liabilities
The contingent liabilities relate to liabilities under guarantees and letters of comfort; they have increased since December 31, 2007 by EUR 81,015,000 to EUR 98,886,000.Segment reporting
Segmental reporting in the HOCHTIEF Group is based on the Group's divisional operations. The breakdown by divisions and regions mirrors the Group's internal reporting systems. HOCHTIEF changed its Group structure with effect from January 1, 2008. Detailed information on the various segments making up the HOCHTIEF Group is provided herein in the Interim Management Report.Related party disclosures
There has been no change in the companies and individuals comprising related parties of HOCHTIEF Aktiengesellschaft and HOCHTIEF Group companies. The information provided in this regard in the notes to the most recent Consolidated Financial Statements therefore continues to apply.No material transactions were entered into during the period under review between HOCHTIEF Aktiengesellschaft or any HOCHTIEF Group company and any related party or parties having material influence over the results of operations or financial condition of the Company or the Group.
