Annual Report and Accounts
2010
2
Annual Report and Accounts
2010
Table of Contents
03
GOVERNING BODIES
MANAGEMENT REPORT OF THE BOARD OF DIRECTORS 2010 FISCAL YEAR
05
1 – Company Overview
07
2 – Macroeconomic Background
08
10
14
14
17
17
17
3 – Business Activity
3.1 – Overview
3.2 – Operations Area
3.3 – Technical Area
3.4 – Information Systems and Telematics Area
3.5 – Administrative abd Financial Area
3.6 – Human Resources
3.7 – Quality Management System
3.8 – Health, Hygiene and Safety at Work
3.9 – Social Responsibility
19
4 – Economic and Financial Review
25
5 – Payables to the State and Other Public Agencies
25
6 – Conclusion
25
7 – Outlook for 2011
26
8 – Acknowledgements
26
9 – Proposed net profit allocation
28
FINANCIAL STATEMENTS 2010 FISCAL YEAR
36
NOTES
52
LEGAL CERTIFICATION OF ACCOUNTS
54
AUDIT REPORT
Annual Report and Accounts
2010
Governing Bodies
Shareholders Meeting
Chairman: Dr. José Luciano Vaz Marcos
Secretary: Dr. António José André Martins
Board of Directors
Chairman: Dr. António Manuel Pereira Caldas Castro Henriques
Directors: Dr. Armindo Luís Pinho Martins
Dr. Fernando Jorge Salas Nogueira
Dr.ª Ana Paula Sá Ribeiro
Eng.º António José Marques Martins Graça
Eng.º Nuno Miguel Ribeiro Pereira de Sousa
Eng.º Filipe Boaventura da Silva Rego
Eng.º Javier Villalobos Giménez
Eng.º Borja Santamaria Mariscal
Company Secretary: Dr. António José André Martins
Audit Commitee
Main Auditor: Mariquito, Correia & Associados, SROC
Represented by: Dr. António Francisco Escarameia Mariquito
Alternate member: Dr. José Martins Correia
Main Departments
Chief Executive Officer (CEO): Eng.º Marcos Levi Sampaio Caetano Ramalho
Finance, Administrative Services and Human Resources Department
Chief Financial Officer (CFO): Dr. Vladimir Alexandre Grangeia Vieira da Ponte
Technical Department
Chief Technical Officer (CTO): Eng.º José Armando Amoreira Godinho Simões
Operation and Maintenance Department
Chief Operation Officer (COO): Eng.ª Joana Isabel Maia Cabral
3
MANAGEMENT REPORT
OF THE BOARD OF DIRECTORS
2010 FISCAL YEAR
Annual Report and Accounts
2010
5
Management Report of the Board of Directors
Dear Shareholders,
In legal and statutory terms, we hereby submit to you the Annual Report and Accounts for the 2010
Fiscal Year.
1 – Company Overview
SCUTVIAS – Autoestradas da Beira Interior, S.A., with head office in Lisbon (Praça de Alvalade, nº 6
– 13 º Esquerdo), was established on July 28, 1999, its main business purpose being the activity developed within the concession of the designing, planning, and construction or increase of the number of
lanes, funding, maintenance, and operation, under a shadow toll arrangement (SCUT), of the motorways and related roadways in Beira Interior (Portugal), named as “SCUT da Beira Interior” concession.
On September 13, 1999, the Portuguese State and
Scutvias entered into a Concession Agreement. Scutvias
was identified as the entity receiving the concession
“SCUT of Beira Interior”. Said agreement established the
concession term of 30 years, among other aspects, as
well as other provisions regarding payments, warranties,
liabilities, funding, and other matters regarding company
business activity.
Project SCUTVIAS comprises two clearly different stages, i.e. the Pre-Operating Period, which ran from the
beginning of the Concession to the 31st of December,
2004, including both the investment period and the initial
period after its conclusion, in which revenues were
established based on availability, and the Operating
Period, beginning on the 1st of January, 2005, and
extending up to 2029, during which the Concessionaire’s
revenues are determined on the basis of traffic levels.
Therefore, the 2010 fiscal year falls within the Operational Period. This Operational Period is characterised by the focus of the Concessionaire’s activity on Operations and Maintenance activities. In this
stage, the Concessionaire will recover its investment through the operation of the concession’s infrastructures.
Strategic Component
Mission
Scutvias’ mission is to efficiently manage the concessioned road infrastructure, ensuring its road transport flow and safety, and contributing for the economic, social, and cultural development of Beira
Interior, creating shareholder value and strengthening the adequate conditions for its collaborators.
6
Annual Report and Accounts
2010
Vision
To place Scutvias as a Concessionaire offering a quality service to the Community, which shows a
performance based on the partners’ and users’ trust, and is focused on profitability and sustainability.
Values
Efficiency – Strict performance of all procedures associated to the Concessionaire, thus ensuring productive efficiency, a better use of all available resources, and cost control.
Focus on the User / Grantor – The Organisation is guided by the aim to serve users, minding their wellbeing, comfort, and safety, thus ensuring the fulfilment of the Concession Agreement.
Team Spirit – To communicate, to share, to inform, to accept partnerships, to understand individual work
as part of a whole.
Sustainability – To manage its activities according to the principles of sustainable development, on
economic, social, and environmental terms, resorting to innovation, training, and potential development
of its human resources, and regard for ethics.
Strategic Aims:
To increase traffic levels
To increase procedural efficiency
To increase efficiency in the use of assets
Annual Report and Accounts
2010
7
A23 Concession
The SCUT of Beira Interior comprises motorway A23 between Abrantes and Guarda, and it is composed
by the following stretches and substretches:
Stretch
Sub-Stretch
Abrantes Oeste - Abrantes Este
Abrantes/Mouriscas
Gardete / Castelo Branco
Castelo Branco / Alcaria
Alcaria / Belmonte (Teixoso)
7,3
Total - Abrantes / Mouriscas
12,1
-OURISCAS-A½áO
8,4
'AVIáO%NVENDOS
6
8,2
Envendos - Gardete
5,6
Total - Mouriscas / Gardete
28,2
Gardete - Riscada
4,8
Riscada - Fratel
4,5
&RATEL0ERDIGáO
5,4
0ERDIGáO!LVAIADE
4,8
Alvaiade - Sarnadas / Retaxo
11,4
Sarnadas / Retaxo - Castelo Branco Sul
4,4
Castelo Branco Sul - Hospital
5,7
Hospital - Castelo Branco Norte
3,7
Total - Gardete / Castelo Branco
44,7
Castelo Branco Norte - Alcains
7,9
Alcains - Lardosa
8,1
Lardosa - Soalheira
4,7
Soalheira - Castelo Novo
5,8
#ASTELO.OVO&UNDáO
7,8
&UNDáO!LCARIA
4,2
Total - Castelo Branco / Alcaria
38,5
!LCARIA#OVILHá3UL
6,6
#OVILHá3UL#OVILHá.ORTE
5,8
#OVILHá.ORTE"ELMONTE3UL
9,1
Total - Alcaria / Belmonte (Teixoso)
21,5
Belmonte Sul - Belmonte Norte
8,5
Belmonte Norte - Benespera
Belmonte (Teixoso) / Guarda
4,8
Abrantes Este - Mouriscas
-A½áO'AVIáO
Mouriscas / Gardete
Extension (km)
9
Benespera - Guarda (2)
9,6
Guarda - Pinhel
5,4
Total - Belmonte (Teixoso) / Guarda
32,5
Extensão Total (Km)
177,5
Notes: 1 – Includes Tunnel of Gardunha (2,3 km)
n)NCLUDES4UNNELSOF2AMELAAND"ARRACáO
The structure also includes 3 Aiding and Maintenance Centres, 1 main one (Lardosa), and 2 secondary
ones (Envendos and Caria), in addition to 5 Service Areas:
s!BRANTES3!
s6ILA6ELHADE2˜DáO3!
s#ASTELO"RANCO3!
s&UNDáO3!
s'UARDA3!
8
Annual Report and Accounts
2010
Concession Map
Annual Report and Accounts
2010
9
2 – Macroeconomic Background
The world’s economy has registered a more favourable development in 2010, and the process of economic recovery is expected to continue moderately throughout 2011.
The price for raw materials has significantly increased, and had an impact on the evolution of inflation
rates in general, and on emerging economies in particular. Global financial conditions have improved,
along with a reduction of the volatility in financial markets.
The “ghost” of foreign aid actions for economic stabilisation and support of the respective financial systems still hovers over several European States, and namely over Portugal.
This fact, arising from the fears regarding debt sustainability, the difficulties of budgetary consolidation,
and investors’ scepticism regarding the potential for future economic growth, causes considerable difficulties in obtaining funding for the Portuguese economy, and the consequent incentive to reduce
indebtedness both within the public sector and private sector, and to limit expenses.
In Portugal, and after the GDP’s growth in about 1.2% in relation to the previous year, the return to a
recession environment is expected in 2011, regardless of the positive contribution of foreign net
demand. In the following years, the return to a more normalised context of growth shall in good measure
depend upon the reach and success of the correction measures which have been implemented.
GDP in Volume
Quarter
IV Qtr. 07
IV Qtr. 08
IV Qtr. 09
IV Qtr. 10
Portugal
2.4
-2.0
-1.0
1.2
Eurozone
2.2
-2.1
-2.1
2.0
Source: Bank of Portugal
According to estimates, the real term GDP registered identical variations of 2.0% and 2.1% in the fourth
quarter of 2010, in the Euro Area (EA) and in the European Union (EU27), accordingly, which is compared with the 1.9% and 2.2% rates observed in the previous quarter.
In Portugal, according to the latest estimates, the GDP has shown an identical variation of 1.2% in
volume, in the fourth quarter of 2010 (1.4% in the third quarter). The contribution of goods and services
exports for the GDP identical variation was slightly inferior to what the previous quarter revealed, and
private consumption slowed down. The business activity indicator worsened in the fourth quarter of
2010, thus bringing the previous rising tendency to a halt. However, this indicator became stable in
December. The private consumption indicator slightly slowed down in the fourth quarter of 2010, as a
result of the negative contribution of the regular consumption component. However, it accelerated in
December. In that same quarter, the GFCF indicator showed a less intense reduction, thus reflecting
the positive evolution of the transport components, as well as the machinery and equipments components. In December, this indicator registered a less emphatic decrease as opposed to November.
Regarding the international trade of goods, the fourth quarter of 2010 witnessed identical nominal
growths of imports and exports, of 10.3% and 15.8% (5.2% and 15.1% in the third quarter), accordingly. On the other hand, the economic climate indicator decreased in the fourth quarter of 2010.
10
Annual Report and Accounts
2010
In 2010, the Consumer Price Index (CPI) registered an average variation rate of 1.4% (-0.8% in 2009).
Excluding energy and unprocessed food (indicator of core inflation), the respective annual average
variation rate was practically unchanged, keeping at 0.3% in 2010 (0.4% in 2009). In December, the
identical monthly variation of the CPI was 2.5%, surpassing the one verified in the two previous months
by 0.2 pp, while the variation of the core inflation indicator was set at 0.9%, less 0.2 pp than in
November. In December, the prices of components of goods and services of the CPI showed an identical growth of 3.4% and 1.2% (3.0% and 1.2% in November), accordingly.
The difference between the Harmonised Consumer Price Index (HCPI) of Portugal and the EA
decreased 0.1 pp in December, falling at 0.2 pp.
IPC Evolution
% 4,0
3,5
3,0
2,5
2,0
1,5
1,0
0,5
0,0
-0,5
-1,0
-1,5
Jan-07
Feb-07
Mar-07
Apr-07
May-07
Jun-07
Jul-07
Aug-07
Sep-07
Oct-07
Nov-07
Dec-07
Jan-08
Feb-08
Mar-08
Apr-08
May-08
Jun-08
Jul-08
Aug-08
Sep-08
Oct-08
Nov-08
Dec-08
Jan-09
Feb-09
Mar-09
Apr-09
May-09
Jun-09
Jul-09
Aug-09
Sep-09
Oct-09
Nov-09
Dec-09
Jan-10
Feb-10
Mar-10
Apr-10
May-10
Jun-10
Jul-10
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
-2,0
Eurozone
Portugal
In the fourth quarter of 2010, the unemployment
rate was 11.1%, plus 1.0 pp than in the identical
quarter, a new maximum for the series initiated in
1998. Employment went from an identical variation
of -1.1% in the third quarter of 2010 to -1.5% in the
fourth quarter.
Unemployment Rate
Area
IV Qtr. 07
IV Qtr. 08
IV Qtr. 09
IV Qtr. 10
Portugal
7.8
7.8
9.8
11.1
Eurozone
7.3
8.0
9.7
10
Source: Bank of Portugal
In short, the implicit framework of these previsions indicates a slight and timid recovering of the global
economy. In any case, there are some factors which behave somewhat unpredictably, and which may
condition such a recovery.
On this level, we believe that the behaviour of fuel prices and interest rates are decisive variables in this
process, and that together with the budgetary austerity measures, they will most probably lead to a
situation of economic recession in Portugal.
As expected, macroeconomic circumstances have influenced the behaviour of the national road sector.
Actually, traffic performance is a direct function of economic growth. Therefore, the year 2010 showed
a tendency for stagnation.
On the other hand, the profile for inflation directly influences the road tariffs to be applied. Therefore,
the latter will not be subject to any updating in the year 2011.
Annual Report and Accounts
2010
11
3 – Business Activity
3.1 – Overview
Similarly to its previous year, the year 2010 was characterised by the world economic and financial
crisis, which had deep consequences in the national road sector, namely as regards traffic levels.
On the other hand, and reaching the highest point of a long process, the Portuguese State defined the
options regarding the Sector’s funding, choosing to apply the User Pays principle in Road Concessions
which had until now been user cost free.
Regarding our Concession, the toll fee collection system shall enter into force on April 15, 2011, in
compliance with the Council of Minister’s Resolution n.º 75/2010.
Another fact characterising the 2010 fiscal year, were the deep changes introduced to the accounting
system, arising from the implementation of the Accounting Standardisation System (SNC) in general,
and from Interpretation 12 of the International Financial Reporting Interpretations Committee (IFRIC12)
– Service Concession Agreements, in particular.
The adverse macroeconomic reality led us to take adjustment measures allowing to mitigate the former’s effects. The adequacy capacity shown by the operational structure surpassed expectations, and
allowed to minimise the economic effects ensuing from the traffic scenario, which fell short of what was
expected.
Regarding measures aiming at a greater operational flow, the highlight is the outsourcing of civil maintenance and conservation operations, and consequently the changes of the organisational structure
and a reduction of the number of organisation collaborators.
Throughout the 2010 fiscal year, the Concessionaire fulfilled its contractual obligations, ensuring the
operation and maintenance of A23, in conformity with the provisions of the Concession Agreement.
We must also highlight the continuous efforts to strengthen the providing of a quality service near the
users. To that effect, we have strived to ensure a greater support and proximity to the users, through the
existing communications network, mobile teams – working 24 hours a day, 365 days a year – SOS stations, and variable message signs.
As usual, Scutvias cooperated with local public and private entities, aiming to contribute to the development of Beira Interior. To this end, we have been privileging the support to local institutions, namely
higher education institutions, and the preferential recruitment of local companies.
A deep involvement with the theme of Road Safety justifies the need to continue to develop countless
awareness campaigns regarding road safety and citizenship issues near the younger local, either
directly or in cooperation with other entities.
To this regard, we highlight the developed Road Safety Campaign, which is an absolute demonstration
that the cooperation and meeting of wills between private initiative and State institutions and bodies, is
both desirable and advantageous. Scutvias therefore thanks the district governors of Castelo Branco,
12
Annual Report and Accounts
2010
Guarda, and Santarém, as well as the district authorities of the National Republican Guard for their
participation and commitment.
Lastly, we must also mention that we have sought to maintain a constructive and mutual understanding
conduct in our institutional relationship with the Grantor (the Portuguese State), and its formal representative (IniR), as well as with the Financing Banks.
3.2 – Operations Area
Scutvias’ intervention and operation area comprises 178 Km of motorway, and includes the regular
maintenance and surveillance of 28 motorway junctions, 8 tunnel galleries, 69 Km of national/municipal
roads on A23 access points, 118 cattle passes, and 100 Km of motorway parallel routes, as well as
controlling the five service areas in the Concession.
The facilities of the Lardosa Servicing and Maintenance Centre carry out all monitoring and control of
the traffic counting and classification equipment, of the optic fibre network, SOS telecommunications,
VARIABLEMESSAGESIGNSVIDEOSURVEILLANCEEQUIPMENTSANDTUNNELEQUIPMENTS"ARRACáO2AMELAAND
Gardunha I and II).
The Operation Area is responsible for front-office functions near the Grantor and the Users, and comprises the User Assistance Service, and the IT and Toll Service.
3.2.1. User Assistance Service
The User Assistance Service’s main concern is the users’ well being, comfort and safety. Proving just
that, more than 700.000 kilometres were driven providing assistance, aiding with accidents, and other
incidents, the average time of assistance performance being 21 minutes.
Mobile Assistence Km - 2010
70000
60000
50000
40000
30000
20000
10000
0
Jan. 10 Feb. 10 Mar. 10 Apr. 10 May. 10 Jun. 10 Jul. 10 Aug. 10 Sep. 10 Oct. 10 Nov. 10 Dec. 10
Total Monthly/Km
The global aim set for the year 2010 continued to focus on patrolling efficiency and effectiveness. To
that effect, we used the setting of regular routes, and specific routes for periods with great traffic, such
as Easter, summer, Christmas, and New Year’s Eve, as well as in adverse climate situations. However,
Annual Report and Accounts
2010
13
and since it holds an exceptional quality, we must include the exclusive patrolling made during a major
repair on the Stretch Castelo Branco Soalheira, which resulted in an addition of about 42.266 km, as
well as the patrolling made to PK 50,4 work of art (Mouriscas Overcrossing), which was being a target
for criminal acts related to stone throwing onto the road, and which resulted in 2.387 kilometres.
Performance Categorization:
TYPE
Regarding performances, we highlight the fact that
the average user contact time showed a slight
increase regarding the previous year, the reason
being an increase of the number of assistance situations in specific periods of a greater traffic flow,
such as Easter, summer, Christmas, and New
Year’s Eve, as well as adverse climate situations.
As regards the road cleaning item, there was a
decrease related to the inclusion of this task in the
maintenance contracts.
Type
Average Time Contact User
2010
2009
2 999
3 233
00:21:21
00:20:43
Total Surveys
2 345
2 004
Answered Surveys
2 118
1 372
Unansweres Surveys
219
632
344
230
Performance Time CCT
00:12:47
00:16:36
Travel Time MV
00:13:28
00:11:49
Performance Time
Accidents
01:13:21
01:21:05
Lane Cleaning
2 854
6 033
Infrastructure Surveillance
2 098
1 948
Road Surveillance
409
538
Other Services
1 280
1 349
Total
9 974
13 331
Performance 2010
1200
1000
800
600
400
200
0
Jan. 10 Feb. 10 Mar. 10 Apri. 10 May. 10 Jun. 10 Jul. 10 Aug. 10 Sep. 10 Oct. 10 Nov. 10 Dec. 10
Assistence
Accidents
Lane Cleaning
Infrastructure Surveillance
Road Surveillance
Other Services
During the year 2010, we also initiated support missions regarding road inspection, road safety awareness, and road safety, together with the three Traffic Secondments of the National Republican Guard
(Santarém, Castelo Branco and Guarda), as well as with the Local Administration Offices of Santarém
and Castelo Branco.
In addition to such actions, there was also a Road Safety Campaign with the theme “ON THE ROAD?
I COMPLY”, which began in April and comprised several initiatives from its beginning, including awareness actions taking place in service areas, in the assistance provided to users, and which peaked with
the survey taking place on the last weeks of the year. This project is expected to end in February 2011,
with the corresponding submission of results.
14
Annual Report and Accounts
2010
3.2.2 – Road Accidents
ITEMS
2010
Number of Accidents
In 2010, there were 344 accidents in the Concession,
64 of them with victims resulting in 2 dead, 15 seriously wounded, and 88 light wounded. As opposed to
2009, there was an increase in the number of accidents (+113 accidents) and in the number of victims.
The explication is based on the change of the classification criteria of the accidents as collision with object
and collision with animal. As regards the number of
victims, the criteria also changed, a 30 day follow-up
of the victims now being necessary.
2009
344
231
Vehicle Loss os Control
224
175
Collision
72
56
Run Over
0
0
Collision with animal
16
0
Collision with object
32
0
Total victims
105
100
Light wounded
88
91
Seriously wounded
15
9
Deceased
Accidents with victims
2
0
64
73
Accidents without any victims
280
158
I Accidents
9.34
9.49
I Total Accidents
50.21
33.72
The accident categorization and analysis allow for the
conclusion that the 2010 data worsened in comparison with the year 2009. The Accident Rate shows a slight improvement compared to 2009, resulting
from the decrease in accidents with victims, while the complete Accident Rate suffered an increase.
Accidents Trend
350
300
250
200
150
100
50
0
2005
2006
Accidents
2007
2008
2009
Accidents without victims
2010
Accidents with victims
3.2.3 – Concession Traffic
Stretch
During the year 2010, the traffic volume had a positive global
growth, reaching 108.43 million vehicles, corresponding to a
10.574 vehicles/km AADT, which is a global increase of about
0.26% compared to 2009. We must point out that there was a
decrease in the year’s second semester. Traffic registered by
the end of July showed an identical variation of -1.36%. On the
other hand, there was a recovery in comparison with 2009,
especially in the northern stretches.
Variation
Abrantes / Mouriscas
0.4%
Mouriscas / Gardete
-0.5%
Gardete / Castelo Branco
-0.2%
Castelo Branco / Alcaria
0.7%
Túnel da Gardunha
0.4%
Alcaria / Belmonte (Teixoso)
0.6%
Belmonte (Teixoso) / Guarda
0.2%
Total
0.2%
Annual Report and Accounts
2010
15
The unfavourable economic environment influenced the traffic volume. Therefore, there was a very
slight increase in the traffic volume in comparison with the previous year.
Traffic Evolution
1 950 000
1 900 000
1 850 000
Accumulated AADT
1 800 000
1 750 000
1 700 000
1 650 000
1 600 000
1 550 000
1 500 000
1 450 000
1 400 000
Jan
Feb
Mar
2004
Apr
May
2005
Jun
Jul
Aug
2008
2007
2006
Sep
Oct
Nov
2009
Dec
2010
In February 2010, there was a new traffic study made, called Forecast 2010. The chart bellow shows
the comparative analysis of the average real traffic of 2010, with the forecast of the new traffic study,
and bands 1 and 2 of the base case. It should be noted that global compliance level, in terms of global
actual traffic volume for 2010, corresponds to 97.5% of Forecast 2010, a value well above the value
issuing from the comparison with the original traffic study.
Traffic 2010
30 000
25 000
20 000
15 000
10 000
5 000
0
Abrantes
Mouriscas
Mouriscas
Gardete
Actual 2010
Gardete
Castelo Branco
Castelo Branco
Alcaria
Forec 2010
Túnel da Gardunha
Band 2
Band 1 + Band 2) which shows a compliance level of just 67.6%.
Alcaria
Belmonte (Teixoso)
Band 1
Belmonte (Teixoso)
Guarda
16
Annual Report and Accounts
2010
Given the structure of the band receipts, which was initially applied in 2005, this deviation does not have
a directly proportional relation with traffic originated revenues. As we may verify in chart down, and
considering the values for the upper limits and tariffs inherent to the different bands for this year, the
whole of Band 1 has been fulfilled, with a weight of 89% of all the payments under the Basic Case. Also,
about 23% of the feasible revenues under
Band Income Simulation – 2010
Band 2 were achieved. The sum of the
values of both bands amounts to about
140 000
91.9% of the reference turnover of the
120 000
Basic Case.
100 000
80 000
Forecast 2010 estimates different revenues under Band 2. In this way, Band 1 is
also fulfilled, and about 82.75% of the
feasible revenue in Band 2 is achieved.
The sum of the values of both bands
amounts to about 99.44% of the whole of
the turnover considered in Forecast 2010.
60 000
40 000
20 000
0
Basic Case
Band 1
Band 2
Forec 2010
Forec 2010 Band 1
Forec 2010 Band 2
Actual
Actual Band 1
Actual Band 2
3.3 – Technical Area
Following the internal restructuring process, there was an outsourcing of most of the activities related
to civil maintenance, both regular and extraordinary.
As regards management systems, there was a continued implementation of the geo-referenced inventory system. This application, which works together with the already implemented applications, namely
the applications for work of art management, pavement management, and inspection management, will
allow for the gradual development of more and better information on the infrastructure status, and consequently the methodical development of an important planning support and decision-making tool.
Regarding planning, we must mention the adjustment made to the Major Repairs plan.
There was a development of activities needed to ensure the road’s quality and safety through external
specialised autonomous teams.
In the year 2010, Scutvias continued to supervise and manage the concession’s sensitive areas,
namely pavements, slopes, works of art, signalling, and environmental markers - air, water and noise.
Following these proceedings, we highlight the most relevant interventions:
s#OMPLETIONOFTHEDRAININGREHABILITATIONWORKSCENTRALDIVIDERANDSIDEEDGELINESINTHE3OALHEIRA
Stretch, which began in the end of 2009;
s-AINTENANCEINTERVENTIONSINTHEDILATATIONJOINTSOFSEVERALWORKSOFART
s0AVEMENT REPAIRS IN THE 3TRETCHES -OURISCAS'ARDETE 'ARDETE#ASTELO "RANCO AND 3UBSTRETCH
Benespera/Guarda, and subsequent repainting of the road marks;
s%XECUTIONOFTHESTSTAGEOFPAVEMENTIMPROVEMENTINTHE3TRETCH#ASTELO"RANCO3OALHEIRA4HE
2nd stage of the works is planned for the year 2011;
s2EPLACEMENTOFTHESIGNALLINGEQUIPMENTNAMELYSIDEINFORMATIONSIGNSWHICHWERENONCOMPLIANT
with the established parameters;
s)NTERVENTIONSTOREPLACETHESTABILITYOFSOMEOFTHEEXCAVATIONSLOPES
Annual Report and Accounts
2010
17
Among the regular activities developed by this sector, we may highlight the repair of accident damage,
the repair of old pavement cracks, drainage material and slope cleaning, trimming of roadside vegetation, ongoing maintenance works, and adequate road signalling in areas subject to traffic restrictions.
Regarding the conservation of vegetation, and in addition to ongoing regular works, there was also a
ground clearing of about 360.000 sq m of roadside slopes.
3.4 – Information Systems and Telematics Area
We have joined the IT and Toll Service (SIP) with the Electromechanical Installation Service (SIE) to
form the Systems and Telematics Service (SST), aiming to improve internal proceedings, especially
regarding their flexibility and fluidity. There has been an optimisation of the allocation of preventive and
corrective maintenance tasks associated to each system, to the existing resources.
Therefore, the Systems and Telematics Service (SST) is responsible for managing the contracts with
outside suppliers, namely the Tunnel Maintenance Contract and the Shadow Toll and Road Telematics
Maintenance Contract, for the maintenance of electrical, electromechanical and lightning systems, the
maintenance and management of internal information systems, shadow toll systems, road tunnel systems, and road telematics subsystems (PMV; Weather Stations, SOS, CCTV), as well as for system
development and Service Desk.
In order to assess the proper functioning of the Shadow Toll System (SPV) and according to the Quality
Control Plan, several verification inspections are carried out throughout the year. Such inspections
compare real time vehicle count and classification with SPV’s records. The following table shows the
results of said verification inspections, which were carried out by Scutvias throughout 2010:
Year
Period
N.º of
Verifications
N.º of Vehicles
N.º Video
Minutes Verif.
% Category Errors
% Class Errors
% Counting Errors
0.03%
2010
1.º Quarter
432
57 127
12 960
0.33%
1.61%
2010
2.º Quarter
400
56 028
12 000
0.29%
1.54%
0.04%
2010
3.º Quarter
362
55 505
10 950
0.65%
1.52%
0.20%
2010
4.º Quarter
Accumulated 2010
Errors acknowledge by EP
392
55 096
11 030
0.50%
1.68%
0.06%
1586
223 756
46 940
0.44%
1.59%
0.08%
5.0%
12.0%
1.0%
The analysis of this parameter, which embodies the Grantor’s satisfaction indicator, indicates that the
results are similar to those of previous years, and far below the limit established by the Concession
Agreement.
The information systems continue to receive Scutvia’s special attention, since they are considered to
be one of the strategic pillars of its action. Therefore, a great part of developed projects especially focus
on information systems.
18
Annual Report and Accounts
2010
Projects developed throughout the year:
Road Infrastructure Inventory and Management System of Scutvia’s Concession – With the purpose
of providing Scutvias with detailed and updated information on the whole of the infrastructure and
equipment installed throughout concession A23, the 2nd stage of the Road Infrastructure Inventory
and Management System has been developed and implemented. This stage’s aim was to make
inspection records by element, and to obtain reports.
Data Centre Recast – The solution found to avoid interruptions in the several telematics systems
(Shadow Toll, SOS and Tunnels), focused in the elimination of the identified hot spots, and in creating a basic technological infrastructure which allows keeping up with business needs, swiftly and
with low investing.
Server Virtualisation – The servers supporting the following systems have been replaced: Shadow
Toll, Tunnels, SOS, Road Telematics, Document Management, Intranet, and file sharing. The applied
solution was based on server virtualisation, i.e. 1 physical server enables the performance of numerous virtual servers, which bears several advantages, namely an increase of system availability, and
a decrease of energy consumption.
Control Dampers – Aiming to reduce energy consumptions, there was an installation of control
dampers in several road junctions.
Tunnel Equipment Maintenance Contract 2011 – There was an invitation to tender for Tunnel
Equipment Maintenance. Thus, the contract to be in force in 2011, will allow for a reduction of the
external costs regarding tunnel equipment maintenance, a greater rationalisation of internal resources, and a greater service level and ability to respond, through the implementation of contractual
SLA’s (Service Level Agreements).
Road Maintenance and Telematics Contract 2011 –
There was an invitation to tender for the Preventive
and Corrective Maintenance of Road Telematics
Equipment. Thus, the contract to be in force in 2011,
will allow for a reduction of the external costs regarding the maintenance of road telematics equipment
and systems, a greater rationalisation of internal
resources, and a greater service level and ability to
respond, through the implementation of contractual
SLA’s (Service Level Agreements).
EasyWay Annual Forum – Scutvias participated in
the Organising Committee of the EasyWay Annual
Forum, which took place from the 16th to the 18th of
November of 2010. The project deals with the
European-wide implementation of ITS throughout
the main corridors of the Trans-European road network (TERN), in 21 of European Union Member
States. This project will be developed by national road authorities and operators, in cooperation with
public and private partners, and will be supported by the European Commission. (RTE-T Program).
SST (Surveys) – Operationalisation of the application for online surveys. It is used to upload the
results of the surveys made following the road safety campaign carried out during 2010.
Annual Report and Accounts
2010
19
3.5 – Administrative and Financial Area
Among the many facts taking place in the year 2010, the following should be highlighted:
s2ESERVE"ANK!CCOUNT-ANAGEMENT%)"2ESERVE!CCOUNT"ANKS2ESERVE!CCOUNTAND,IQUIDITY
Reserve Account), in conformity with contractual obligations;
s$RAFTINGANDAPPROVALBYTHE&INANCING"ANKSOFTHEBIANNUAL&ORECASTS!PRILAND/CTOBER
s$RAFTINGAND!PPROVALOFTHE/PERATION-AINTENANCE"UDGETFOR
s&OLLOWUPOFTHERENEWALPROCEEDINGSFORTHE)NSURANCE0ORTFOLIO
All activities in this area progressed normally, with the management of suppliers, invoicing to the Grantor
and to the clients, fulfilling of the contractual obligations with the Grantor and the Banks (financial information, Forecasts, etc.), information to the shareholders, reduction of Support Guarantees, management of VAT refunds, etc.
During the year 2010, the Company continued to be advised and supported by legal counsel regarding
several types of Contracts (Concession, Labour, Services, and Leases).
We would like to highlight the Management of several Insurance Policies, namely All Risks (Industrial
multi-risk), Terrorism and Sabotage, CAR/EAR (Works and Installations), Public Liability/Operation,
Work and Vehicle Accidents.
Regarding administrative proceedings, a new evaluation system was implemented, based on the fulfilling of pre-set aims. In relation to the above, new rules were set for the awarding of the Performance
Award. The latter is a direct function of the worker’s evaluation.
We should also highlight the implementation of a new ERP, which enabled the framing of the recent
changes stemming from the new accountancy rules, on the one hand, and promoted a greater interaction with other already developed computer applications, namely the application of document management (document filing and digital work-flow), on the other hand.
Regarding the fleet, the rationalisation in resource management persists, which enabled a cost reduction.
3.6 – Human Resources Area
During the fiscal year of 2010, there was a staff reduction of 26 workers, laid off due temporary employment contract suspension.
On the other hand, within the scope of the internal restructuring, there was an integration of SIE workers in the SST, which contributed for the ongoing improvement of our internal proceedings.
The underlying Human Resources activities proceeded, particularly as regards Training Management,
considering the different levels and aims intended for each group of workers.
20
Annual Report and Accounts
2010
3.6.1 – Staff
On the 31st of December, 2010, Scutvias, S.A. employed a total of 56 hired personnel, and 1 employee
temporarily assigned by the Shareholders, acting as Assistant CEO.
3.6.2 - SCUTVIAS, S.A. Staff
Scutvias Staff
General Directors
Chief Executive Officer
1
Technical Area (assigned by the Shareholders)
1
Directors
Operations Director
1
Maintenance Director
1
Administrative and Financial Director
1
Remainder Personnel
Non-Specialised Personnel
10
Semi-Specialised Personnel
15
Specialised Personnel
17
Middle Management
6
Senior Management
4
Total – Scutvias Staff
57
Evolution Summary
2004
2005
2006
2007
2008
2009
2010
Officers Assigned by Shareholders
7
7
6
6
4
1
1
Other Assigned Staff
3
3
1
1
0
0
0
Hired Personnel
91
99
100
100
94
88
56
Total
101
109
107
107
98
89
57
3.6.3 – Composition of the Staff
Of the total 56 Scutvias employees, 40 are male and 16 are female. The average employee age is 37
for men and 38 for women.
Educational Structure
Men
Women
Total
Basic Education
1
0
1
Secondary Education
30
12
42
Professional Development
0
0
0
Higher Education
9
4
13
Others
0
0
0
Total
40
16
56
Annual Report and Accounts
2010
21
3.6.4 – Absenteeism Rate
Regarding the Absenteeism Rate, the review of the period 2006-2008 shows a fall in 2007 (2.16% to
0.9%). There is a slight increase to 1.06% in 2008, and a significant increase in 2009 to 4.45%. As
regards 2010, there is an increase to 5.57%.
When analysing the motives leading to the above rate, we concluded that the most significant causes
were parental leaves, and mainly long term absences due to illness, together with other small duration
leaves, and absences of a general character.
3.6.5 - Training
Regarding the training policy, and similarly to previous fiscal years, we continued to favour it, both internally and on the outside, its purpose being to enable workers to acquire and develop new skills.
Regarding Training Actions provided by specialised outside agents, we highlight the following themes:
Discussion on Economy and Development
Portugal Acolhe Programme - Portuguese
Cross-Border Roads Issue
Datrex II Forum Berlin
Workshop 2010 ITS Portugal 2010
International Relations
16th World Road Meeting “Sharing the Road”
RVCC (Skill Acknowledgement, Validation, and Certification)
Accounting and Administration
Secretariat
Road Pavement, Materials, Dimensioning, and Development Project
Road Safety – Its Implementation in the Work’s Development
Easyway Annual Forum 2010
3HOWn2OOM,LED˜)LUMINA½áO
EXPO RH (HR EXPO) – 9ª Edition
Management Simulator
&˜RUMDE)NOVA½áOE.ORMALIZA½áO)NNOVATIONAND3TANDARDISATION
Forum)
Certified Accountant
Complaints’ Management
Financial Management for Executive Staff
Primavera Application – Accounting Module
Primavera Application – Payroll Processing
English
Civil Engineering
English I
Attorneyship
English II
Pavement Designing and Rehabilitation
30 workers participated in these Actions, amounting to 1.720 hours.
The ongoing internal training actions amounted to 1.126 hours of training and involved 35 employees,
comprising the following themes:
Telematic Applications
Document Scanning and Filing, Financial Journals
Miscellaneous (internal and outside) Document Drafting
Road Surveillance (Miscellaneous Document Drafting)
Accounting Basics
Interpersonal Relations
Tunnel Management System
Client Service Management
22
Annual Report and Accounts
2010
3.7 – Quality Management System
Scutvias owns a Quality Management System (SGQ) certified by ISO 9001:2000 in May 2005, and
renewed in June 2009 by ISO 9001:2008. The SGQ is part of Scutvias’ Management Model.
The SGQ is based on 3 fundamental orientations: Client (Grantor / User) satisfaction, ongoing improvement, and process approach.
Throughout 2010, the Quality Management System was perfected towards a formal system, and as a
systematization aiming to a better management.
In 2010, we set actions to increase activity and proceedings efficacy and efficiency, in such a way as to
benefit the organisation, users, and the Grantor.
2010 quality aims and indicators were set according to the Balanced Scorecard management model for
the deconstruction of vision and strategy into financial perspectives, internal proceedings, learning, and
Growth and Innovation.
The Quality Management System monitored aims and indicators with monthly frequency, for a good
follow-up of proceeding performance.
Such monitoring led to the conclusion that not all goals were achieved. This conclusion was followed by
the respective review to set and implement improvement measures.
As for User satisfaction regarding the provided service, the goals were achieved.
3.8 – Health, Hygiene, and Safety at Work
Regarding Health, Hygiene, and Safety at Work, and in addition to the activities ensuing from the strict
compliance with the Law, we wish to highlight the following activities:
s!SSESSMENTOFSAFETYANDHEALTHCONDITIONSATWORKSPECIFICALLYASSESSMENTOFTHELIGHTINGOFTHE
head office, and of safety and health conditions at the head office’s workplaces;
s/NSITESUPERVISIONOFALLONGOINGANDISOLATEDMAINTENANCEACTIVITIES
s3AFETYCOORDINATIONOFTHEWORKSFORh$RAINAGE)MPROVEMENTIN#ONCESSION!vANDh)MPROVEMENT
and Paving of Stretches in Concession A23”;
s3AFETYMONITORINGOFWORKEQUIPMENT
s$EVELOPMENTOFSPECIFICINTERNALTRAININGACTIONSREGARDING3AFETYAND(EALTHAT7ORKh0ERFORMANCE
Rules for Risk Prevention in the Activities Carried Out in the Concession”, as well as the development of specific training actions for contractors working in Concession A23;
s!IMINGTOINTEGRATETRAINEESOF.%2#!"S3AFETYAND(EALTHAT7ORKCOURSEINTHECONTEXTOFTHE
labour market, Scutvias enabled a practical traineeship in a work context.
s4HERISKSWEREASSESSEDANDCLASSIFIEDFORALLACTIVITIESTAKINGPLACEINTHE#ONCESSIONANDTHEWAY
in which to control them was planned, according to the Simplified Evaluation Method.
Annual Report and Accounts
2010
23
s7ASTE -ANAGEMENT AND COMPILING OF ELEMENTS FOR THE )NTEGRATED 7ASTE 2ECORDING OF THE
Portuguese Environment Agency (SIRAPA), and respective dispatch to the Portuguese Environment
Agency (APA).
s0ROMOTION OF GOOD ENVIRONMENTAL PRACTICE IN WASTE SORTING AT PRODUCTION SITES AND RESPECTIVE
adequate routing for recovery, recycling, and final destination.
3.9 – Social Responsibility
Road safety has always been one of the pillars of Scutvias performance, which is why we are committed to the European Road Safety Charter. In this strategic context, we have launched a new campaign
during 2010, within this scope:
Road Safety Campaign
The Road Safety Awareness Campaign, with the mascot “Topas”, which
reaches the younger population – future users of the A23 –, took place
from April to the end of December, 2010.
The campaign deals with the use of seatbelt, excess speeding, and consumption of alcoholic drinks. It involved the Local Administration Offices of
Santarém, C. Branco and Guarda, and racing pilot Francisco Carvalho (the
campaign’s godfather). In addition to the service areas, the campaign was
THESTRONGESTIN!BRANTES#ASTELO"RANCO&UNDáO#OVILHáAND'UARDA
This campaign is not unique. In previous years, Scutvias organised other
campaigns, namely Securarte Project, and the Auto Simulator, which targeted the younger population, as well as a daily presence in local radios.
Trying to reach a greater proximity regarding the populations using A23, we launched a bimonthly publication, “Autoestradas da Beira Interior” (“Motorways of Beira Interior”), and we produced a (bilingual)
institutional film for the Grantor. These actions are joined by the continuity of other measures taken in
previous years, namely the study visits to the Lardosa Assistance and Maintenance Centre.
Also aiming at a greater regional proximity, we associated ourselves to the event DINOEXPO
“Dinossáurios invadem o Geopark” (“Dinosaurs invade Geopark”), a joint organisation of the Dutch
company Creatures & Features and of Geopark Naturtejo, which was held at NERCAB Exhibitions
Centre, in Castelo Branco, from the 27th of March throughout the end of October, 2010.
The cooperation reinforcement between Higher Education institutions and the business sector has
enabled undeniable contributions to both parties, both with protocols established with the University of
Beira Interior, and with the Polytechnic Institute of Castelo Branco.
Through Scutvias’ activity and following a policy of proximity with the region where it is implemented,
we continued to organise actions in partnership with public and private entities for the development of
the Beira interior Region; an example of just that is the Beira Interior Music Festival; we brought together 5 schools and 1 classical music association, with the support of the Local Administration of the
Castelo Branco district, and with the participation of the mayors where the concerts took place: Vila
6ELHADE2˜DáO#ASTELO"RANCOAND'UARDA
24
Annual Report and Accounts
2010
In an environmental and ecological perspective, we highlight the third year of the Forestation Project for
the Junctions belonging to the Castelo Branco District, which involved the following state entities: Local
Administration of the Castelo Branco District, Civil Protection, Police Forces (GNR), and students from
the region’s schools. We aim at making youngsters aware of the need to preserve the environment, and
at showing the compatibility of a road structure and the environmental cause. The evaluation of the last
3 years results in 41 schools which were rallied and involved, with the participation of 2.851 students
between the ages of 6 and 16. 6.000 trees were planted in the 14 chosen junctions between Gardete
and Belmonte Norte. The trees were from that region and were incorporated into their habitat: stone
pine, cork oak, and strawberry tree.
As regards corporate social responsibility, Scutvias has been associating itself to several social causes.
The “Aldeias de Crianças SOS” (“SOS Children Villages”) are an extremely worthy social project, which
deserve our greatest affection, consideration, and support. This support became formal through the
protocol signed on the 2nd of May, 2010, and embodies the sponsorship of Casa Nossa Senhora da
Vitória.
Also within the scope of social patronage, last Holidays we supported some voluntary organisations.
4 – Economic and Financial Review
Review of Results
In the 2010 fiscal year, the company had a Net Profit of about EUR 10 Million, which makes for a Sale
Profitability (Net Result / Provision of Services) of 8.78%.
Unit. Euros
Income and Gains
Financial Statements
2010
Value
2009
Weight %
Value
10/09
Weight %
Var.%
Sales and services provided
114 268 296.24
100.00
112 154 093.27
100.00
1.89
Supplies and services received
-18 090 554.50
-15.83
-5 312 459.91
-4.74
240.53
Expenses with Personnel
-2 025 545.53
-1.77
-2 523 257.41
-2.25
-19.72
Other Income and Gains
607 949.05
0.53
483 994.28
0.43
25.61
-441 444.15
-0.39
-725 328.98
-0.65
-39.14
94 318 701.11
82.54
104 077 041.25
92.80
-9.38
-33 766 872.33
-29.55
-33 692 112.81
-30.04
0.22
60 551 828.78
52.99
70 384 928.44
62.76
-13.97
Other Expenses and Losses
Earnings before depreciation, financing expenses and taxes
Depreciation and amortisation expenses/reversals
Operating Profit (before financing expenses and taxes)
Received interests and similar income
1 118 949.50
0.98
1 188 297.20
1.06
-5.84
Borne interests and similar expenses
45 440 619.89
39.77
49 304 536.68
43.96
-7.84
16 230 158.39
14.20
22 268 688.96
19.86
-27.12
-6 192 137.97
-5.42
-5 606 523.31
-5.00
10.45
10 038 020.42
8.78
16 662 165.65
14.86
-39.76
Earnings before taxes
Income tax for the period
Period’s net profit
Annual Report and Accounts
2010
25
The Personnel Income Tax absorbs 5.42% of the latter. Therefore, the effective tax rate is 38.15% over
the Earnings Before Taxes.
The Earnings Before Taxes (RAI) represents approximately 14.20% of the Provision of Services, which
indicates the large weight of the financial role in the Concessionaire’s Accounts, when compared to the
Operating Income (52.99%). In fact, the Net Funding Structure comprises approximately 38.79% of the
Provision of Services.
The relation between the EBITDA (82.54% of the Provision of Services) and the Operating Profit
(52.99% of the Provision of Services) shows the large weight of Fiscal Year Depreciation in the company’s structure.
Income and Profit Review
Income and Profits amounted to about EUR 116.0 Million, which represents an increase of 1.91% when
compared to 2009.
Unit. Euros
Income and Gains Review
Income and Gains
2010
Value
2009
Weight %
Value
10/09
Weight %
Var.%
114 268 296.24
98.51
112 154 093.27
98.53
Band 1
110 046 860.04
94.87
106 151 479.74
93.26
3.67
Band 2
3 176 181.50
2.74
4 980 052.85
4.38
-36.22
Provision of Services
1.89
Band revenues
Service Areas
Award Fees
145 861.56
0.13
145 861.56
0.13
Monthly Values
899 393.14
0.78
876 699.12
0.77
2.59
Other Income and Gains
607 949.05
0.52
483 994.28
0.43
25.61
Accident Compensations
494 358.71
0.43
381 159.13
0.33
29.70
Previous period corrections
62 555.11
0.05
78 723.07
0.07
-20.54
Other supplementary income
34 758.62
0.03
1 243.45
0.00
2 695.34
Assistance in A23
3 895.61
0.00
4 329.24
0.00
-10.02
Earnings in Tangible Assets
3 090.85
0.00
1 208.92
0.00
155.67
Received cash discounts
2 937.40
0.00
7 329.03
0.01
-59.92
21.15
0.00
1 887.47
0.00
-98.88
Exchange gains
Others
Received interests and similar income
Income and Gains Total
6 331.60
0.01
8 113.97
0.01
-21.97
1 118 949.50
0.96
1 188 297.20
1.04
-5.84
115 995 194.79
100.00
113 826 384.75
100.00
1.91
The Provision of Services in general and Revenues per Band in particular, were influenced by the contractually established increase of the upper limit of Band 1 of traffic. On the other hand, the increase in
traffic levels (TMDAE) by 0.2% had a slight positive influence.
Band Receipts are responsible for 97.61% of all Income and Profits, and correspond to the valuation of
road traffic in the Concession.
As regards Income and Profits, we also highlight the Revenues of Service Areas and Interests, with
0.91% and 0.96%, accordingly, of the total of Income and Profits.
26
Annual Report and Accounts
2010
Expenses and Losses Review
Expenses and Losses amounted to approximately EUR 99.8 Million. This value represents an increase
of 8.96% against the 2009 EUR 91.6 Million.
Unit. Euros
Expenses and Losses Review
2010
Expenses and Losses
Value
2009
%
Value
10/09
Var.%
%
Operating Expenses and Losses
20 557 544.18
20.60
8 561 046.30
9.35
140.13
Received supplies and services
18 090 554.50
18.13
5 312 459.91
5.80
240.53
2 025 545.53
2.03
2 523 257.41
2.76
-19.72
441 444.15
0.44
725 328.98
0.79
-39.14
Depreciation and amortisation expenses/reversals
33 766 872.33
33.85
33 692 112.81
36.80
0.22
Borne interest and similar expenses
45 440 619.89
45.55
49 304 536.68
53.85
-7.84
Total of Expenses and Losses
99 765 036.40
100.00
91 557 695.79
100.00
8.96
Expenses with personnel
Other expenses and losses
Operational Expenses and Losses amounted to EUR 20.6 Million (20.60% of all Expenses and Losses),
which represents an increase of EUR 12 million when compared to the 2009 EUR 8.6 Million.
This accruement is explained by the increase in Supplies and Services Received, under Maintenance
and Repairs.
Unit. Euros
Received Supplies and Services Review
Received Supplies and Services
Maintenance and repairs
2010
Value
2009
%
Value
10/09
Var.%
%
15 667 904.48
86.61
2 473 665.35
46.56
Specialised Works
902 814.32
4.99
1 169 004.13
22.00
533.39
-22.77
Insurance
461 522.12
2.55
570 539.24
10.74
-19.11
-18.46
Electricity
259 899.72
1.44
318 724.46
6.00
Fuel
183 810.22
1.02
172 353.23
3.24
6.65
Rentals and Leases
161 535.56
0.89
200 795.09
3.78
-19.55
Lagal Department and Notary Public
2 150.32
104 946.76
0.58
4 663.63
0.09
Communication
94 639.43
0.52
103 035.21
1.94
-8.15
Fees
89 295.94
0.49
99 847.99
1.88
-10.57
Materials
55 291.65
0.31
86 408.85
1.63
-36.01
Advertising and publicity
49 712.10
0.27
38 315.28
0.72
29.74
Travels and stays
32 387.50
0.18
44 066.01
0.83
-26.50
Cleaning, hygiene and comfort
15 520.91
0.09
17 741.55
0.33
-12.52
Water
3 736.15
0.02
2 842.42
0.05
31.44
Other RSS
7 537.64
0.04
10 457.47
0.20
-27.92
18 090 554.50
100.00
5 312 459.91
100.00
240.53
Total of Received Supplies and Services
However, Costs with Personnel and Other Expenses and Losses have decreased when compared to
2009.
Depreciation, which is responsible for 33.85% of the total Expenses and Losses, showed a variation of
0.22% when compared to 2009, and according to the investments which were made during the fiscal
year.
The interest charges, corresponding to 45.55% of the total Expenses and Losses, show a -7.84% variation when compared to 2009, according to the debt repayments made during the fiscal year.
Annual Report and Accounts
2010
27
Balance Sheet Review
Scutvias has the typical asset structure of a motorway concession operator. In fact, Intangible Assets
make up for to 82.82% of the Balance Sheet.
Considering the contractual demands ensuing from the Project Finance agreement, Scutvias is required
to maintain a high level of cash availability to guarantee the performance of its obligations near the
Banking Syndicate and the EIB. Such Cash Availability makes up for 9.88% of the Balance Sheet.
Unit. Euros
Items
Balance Sheet Review
2010
Value
2009
% Assets
Value
% Assets
ASSETS
Non current assets
Tangible fixed assets
Intangible assets
Deferred tax receivables
662 343.21
0.09
628 143.22
0.08
628 536 460.98
82.82
662 063 481.25
83.30
11 386 609.83
1.50
11 066 611.96
1.39
640 585 414.02
84.40
673 758 236.43
84.78
Current Assets
Clients
State and other public agencies
Other accounts receivable
Deferrals
Cash flow and bank deposits
Total Assets
SHAREHOLDERS’ EQUITY LIABILITIES
Shareholders’ Equity
Paid-in capital
86 076.97
0.01
167 617.39
0.02
103 303.71
0.01
101 504.62
0.01
42 844 355.08
5.65
39 117 571.90
4.92
347 566.37
0.05
297 469.41
0.04
10.23
74 992 688.14
9.88
81 316 049.64
118 373 990.27
15.60
121 000 212.96
15.22
758 959 404.29
100.00
794 758 449.39
100.00
49 200 000.00
6.48
49 200 000.00
6.19
7 202 534.99
0.91
0.43
Other shareholders’ capital instruments
Mandatory reserves
3 851 455.52
0.51
3 451 163.28
Other reserves
7 043 939.10
0.93
3 863 347.34
0.49
Retained earnings
-2 144 504.34
-0.28
-10 800 825.29
-1.36
Net profit for the period
10 038 020.42
1.32
16 662 165.65
2.10
Total Shareholders’ Equity
67 988 910.70
8.96
69 578 385.97
8.75
LIABILITIES
Non current liabilities
Received financing
Bank loans
544 218 163.42
71.71
586 185 875.91
73.76
Shareholders’ loans
23 680 352.01
3.12
16 477 817.02
2.07
Deferred tax payables
17 813 523.21
2.35
17 630 307.89
2.22
Other accounts payable - Derivatives
41 405 853.94
5.46
44 266 447.83
5.57
627 117 892.58
82.63
664 560 448.65
83.62
Current liabilities
Suppliers
254 474.50
0.03
313 872.90
0.04
2 388 367.17
0.31
820 583.56
0.10
Bank Loans
41 350 671.14
5.45
40 696 555.90
5.12
Interest on Bank Loans
10 136 848.63
1.34
10 739 286.42
1.35
766 008.72
0.10
1 177 777.56
0.15
Other accounts payable
3 349 857.63
0.44
1 119 303.65
0.14
Deferred liabilities
5 606 373.22
0.74
5 752 234.78
0.72
State and other public agencies
Received financing
Interest on Shareholders’ Loans
63 852 601.01
8.41
60 619 614.77
7.63
Total Liabilities
690 970 493.59
91.04
725 180 063.42
91.25
Total Shareholders’ Equity and Liabilities
758 959 404.29
100.00
794 758 449.39
100.00
28
Annual Report and Accounts
2010
Regarding Debt Receivable (5.65% of Assets), we highlight the Income and Profit related to Band
Receipts, which due to contractual proceedings is not invoiced until January of the following year.
Deferred tax receivables, related to the Swap’s Mark-to-Market variations, make up for 1.50% of the
Balance Sheet.
Shareholders’ equity make up for EUR 68.0 Million, approximately 8.96% of the Balance Sheet. In its
composition, we highlight the Paid-in Capital, EUR 49.2 Million, making up for 6.48% of the Balance
Sheet.
Regarding Liabilities, Scutvias carries great levels of bank funding (77.15% of the Balance Sheet),
mainly used in funding the construction of Motorway Stretches. The first repayment of principal was
made in January, 2006.
Also regarding Funding, we highlight the interest recognised during the fiscal year, which will be paid in
March and April, 2011 (1.34% of the Balance Sheet).
Payables to shareholder, regarding Shareholder’s Loans and interest’s thereon, make up for 3.22% of
the Balance Sheet, approximately.
The Other Payables – Not Current item regards the value of market-to-market contracted interest rate
Swap, and makes up for 5.46% of the Balance Sheet. The Other Current Payables component amounts
to 0.44% of the Balance Sheet.
Deferred tax payables, which are essentially related to the Swap value of Intangible Assets, make up
for 2.35% of the Assets.
Ratios
2010
2009
Total Net Assets
Indicators
758 959 404,29
794 758 449,39
Liabilities
690 970 493,59
725 180 063,42
Shareholders’ Equity
67 988 910,70
69 578 385,97
Turnover
114 268 296,24
112 154 093,27
EBITDA
94 318 701,11
104 077 041,25
EBITDA margin
EBIT
EBIT margin
Net Profit for the Period
82,54%
92,80%
16 230 158,39
22 268 688,96
14,20%
19,86%
10 038 020,42
16 662 165,65
Net profit/Turnover
8,78%
14,86%
Return on Equity
14,76%
23,95%
12,43%
13,10%
43 804 892,75
50 354 278,46
91,04%
91,25%
8,41%
7,63%
8,96%
8,75%
212,80%
216,30%
1,085
1,090
(Net profit/Shareholders’ equity)
Return on Assets
(EBITDA/Assets)
Cash-flow
(Net profit + Depreciation + Provisions)
Debt-asset ratio
(Liabilities / Assets)
Short-term Debt Ratio
(Current liabilities / Assets)
Equity/Assets Ratio
Shareholders’ Equity/Net Assets
Interest Coverage
[(EBITDA) / Interest Expenses]
Fixed Assets Coverage
[(Shareholders’ Equity + Non Current Liabilities)/Non Current Assets]
Annual Report and Accounts
2010
29
5 – Payables to the State and other Public Agencies
In accordance with the applicable legislation, we hereby state that Scutvias – Autoestradas da Beira
Interior, S.A. is not in default regarding payment of any amounts owed to the State or Other Public
Agencies.
6 – Conclusion
Similarly to its previous year, the year 2010 was characterised by a deep economical and financial crisis,
with considerable repercussions on society and on companies.
The traffic performance throughout the year closely mirrors the difficulties faced by Portugal. In fact, light
traffic indicates a loss of family available income, with the ensuing repercussions in consumption, whereas heavy traffic indicates economic stagnation.
The year 2010 was also characterised by the political decision to introduce tolls fees to SCUT (User
Cost Free) Concessions, in the inland.
Due to the above, Scutvias had the need to readjust its organisation, therefore ensuring the sustainability of its business activity.
Similarly to what happened in 2009, it is gratifying to see that such challenges have led the Organisation
to show a great ability to adjust and to commit to the need to increase efficiency and efficacy levels.
7 – Outlook for 2011
The fiscal year of 2011 shall be the seventh year of the Operating Period and the Concession’s twelfth
anniversary.
All forecasts indicate that the year 2011 will be a year of economic recession, driven by budgetary austerity measures, by an increase in fuel prices, and by an increase in interest rates.
On the other hand, everything indicates that the year 2011 will also be characterised by the introduction
of toll fees in A23, which would entail deep changes in our business model.
In these circumstances, we prudently face next year, aware that the management measures introduced
during 2009 and 2010 must be maximized and complemented by further measures.
Therefore, 2011 will be characterised by the furthering of the operational adjustment policy, to ensure
an increase of internal proceedings efficiency, and of the Organisation’s productivity and competitiveness.
Scutvias’ major strategic guidelines shall not change, without prejudice of occasional adjustments which
may be called for.
30
Annual Report and Accounts
2010
Thus, our commitment to a cordial institutional relationship based on the uncompromised defence of the
Company’s rights, and governed by equity, integrity and honesty criteria, continue to be a part of our
key to success.
Regarding our critical proceedings, we shall continue our quest for excellence and accuracy, so that we
may ensure efficiency and profitability.
Scutvias shall maintain a quality policy, which ensures user satisfaction, as well as the satisfaction of
the Grantor and other stakeholders.
To this end and similarly to previous years, we shall continue to focus on training. Following its large-scale introduction in 2009 and 2010, the increase of company employees’ educational level shall be
one of our most important measures.
Within the framework of social responsibility followed from the Concession’s beginning, Scutvias shall
continue to promote road safety, among other measures.
8 – Acknowledgements
The Board of Directors expresses its full recognition, and thanks all Entities which continue to grant us
their confidence, namely the Portuguese State as Grantor and guarantor of the rights of Portuguese
users, the Ministry of Public Works, Transport and Communications, the Ministry of Finance and Public
Administration, the IniR Instituto Nacional de Infra – Estruturas Rodoviárias I.P. (Road Sector Regulatory
Authority), EP-Estradas de Portugal S.A., the Financial and Banking Institutions and the Suppliers, all
those who supported us in this Project, and who support us in its development.
We thank the External Auditor (Deloitte & Associados, SROC, S.A.) and Statutory Auditor (Mariquito,
Correia & Associados, SROC) for their accuracy, counselling, and monitoring.
We thank all our workers for their permanent commitment and understanding.
9 – Proposed net Profit Allocation
The Board of Directors proposes that the EUR 10,038,020.42 Net Profit of the 2010 fiscal year be allocated as follows:
Mandatory Reserve ............................................
Dividends ...........................................................
EUR 501,901.02
EUR 9,536,119.40
Lisbon, March 24, 2011.
The Board of Directors
FINANCIAL STATEMENT
32
Annual Report and Accounts
2010
Balance Sheets as at December 31, 2010 and 2009
Amounts expressed in EUR
Items
Notes
2010
2009
ASSETS
Non Current assets
Tangible fixed assets
7
662 343.21
628 143.22
Intangible Assets
8
628 536 460.98
662 063 481.25
Deferred tax receivables
11
11 386 609.83
11 066 611.96
640 585 414.02
673 758 236.43
35 814 699.54
Current assets
Clients
9
39 221 430.11
State and other public agencies
12
103 303.71
101 504.62
Other accounts receivable
10
3 709 001.94
3 470 489.75
Deferrals
13
347 566.37
297 469.41
Cash and bank deposits
4
74 992 688.14
81 316 049.64
118 373 990.27
121 000 212.96
758 959 404.29
794 758 449.39
Total Assets
SHAREHOLDERS’ EQUITY LIABILITIES
Shareholders’ Equity
Paid-in Capital
6
49 200 000.00
49 200 000.00
Other instruments of shareholders’ equity
14
0.00
7 202 534.99
Mandatory Reserve
14
3 851 455.52
3 451 163.28
Other reserves
14
7 043 939.10
3 863 347.34
Retained earnings
-2 144 504.34
-10 800 825.29
Net profit of the fiscal year
10 038 020.42
16 662 165.65
Total Shareholders’ Equity
67 988 910.70
69 578 385.97
LIABILITIES
Non current liabilities
Received funding
6 e 17
567 898 515.43
602 663 692.93
Deferred tax payables
11
17 813 523.21
17 630 307.89
Other accounts payable
18
41 405 853.94
44 266 447.83
627 117 892.58
664 560 448.65
254 474.50
313 872.90
Current Liabilities
Suppliers
State and other public agancies
12
2 388 367.17
820 583.56
6 e 17
52 253 528.49
52 613 619.88
Other accounts payable
18
3 349 857.63
1 119 303.65
Deferrals
13
5 606 373.22
5 752 234.78
63 852 601.01
60 619 614.77
Total Liabilities
690 970 493.59
725 180 063.42
Total Shareholders’ Equity and Liabilities
758 959 404.29
794 758 449.39
Received funding
This annex is part of the balance sheet as at December 31, 2010.
The Certified Accountant
The Board of Directors
Annual Report and Accounts
2010
Income Statement Classified by Nature
Of Fiscal Years Ended on December 31st, 2010 and 2009
Amounts expressed in EUR
Income and Expenses
Notes
2010
2009
Sales and services provided
19
114 268 296.24
112 154 093.27
Supplies and services received
20
-18 090 554.50
-5 312 459.91
Costs with Personnel
21
-2 025 545.53
-2 523 257.41
Other income and gains
22
607 949.05
483 994.28
Other espenses and losses
23
-441 444.15
-725 328.98
Earnings before depreciation, financing expenses and taxes
7e8
Depreciation and amortisation expenses/reversals
Operating Profit (before financing expenses and taxes)
94 318 701.11
104 077 041.25
-33 766 872.33
-33 692 112.81
60 551 828.78
70 384 928.44
Received interests and similar income
24
1 118 949.50
1 188 297.20
Received interests and similar expenses
24
45 440 619.89
49 304 536.68
16 230 158.39
22 268 688.96
-6 192 137.97
-5 606 523.31
10 038 020.42
16 662 165.65
0.20
0.34
Earnings before taxes
Income tax for the fiscal year
11
Net profit of the fiscal year
Basic Earnings per Share
27
This annex is an integral part of the income statement by nature for the Fiscal Year ended on December 31, 2010.
Income Statement Classified by Functions
Of Fiscal Years Ended on December 31st, 2010 and 2009
Statements of Changes
in Shareholders’ Equity
Notes
Amounts expressed in EUR
Balance on January 1, 2009
Transition Adjustments
Paid-in Capital
49 200 000.00
28
–
Other
instruments
of shreholders’
Equity
Mandatory
Reserves
Other Reserves
– 2 850 001.05 -17 171 449.16
–
Restated Opening Balance
49 200 000.00
Allocation of 2008 Net Profit:
–
–
–
Retained
Earnings
Total
Shareholders’
Equity
Period’s
net profit
729.64 12 023 244.64 46 902 526.17
– 10 703 137.49 -10 801 554.93
–
-98 417.44
– 2 850 001.05 -6 468 311.67 -10 800 825.29 12 023 244.64 46 804 108.73
601 162.23 11 422 082.41
– -12 023 244.64
–
Fair Value Swap Variations
–
– -1 090 423.40
–
– -1 090 423.40
Accessory Capital
– 7 202 534.99
–
–
–
–
Period’s Net Profit
–
–
–
– 16 662 165.65 16 662 165.65
Balance on December 31, 2009
–
49 200 000.00 7 202 534.99 3 451 163.28
7 202 534.99
3 863 347.34 -10 800 825.29 16 662 165.65 69 578 385.97
Allocation of 2009 Net Profit:
–
–
400 292.24
Establishment of Shareholders’ Loans
– -7 202 534.99
–
_
–
– -7 202 534.99
Fair Value Swap Variations
–
–
–
3 180 591.76
–
–
–
–
–
Period’s Net Profit
Balance on December 31, 2010
49 200 000.00
– 3 851 455.52
–
–
8 656 320.95 -16 662 165.65 -7 605 552.46
– 10 038 020.42 10 038 020.42
7 043 939.10 -2 144 504.34 10 038 020.42 67 988 910.70
This annex is an integral part of the income statement by nature for the Fiscal Year ended on December 31, 2010.
The Certified Accountant
3 180 591.76
The Board of Directors
33
34
Annual Report and Accounts
2010
Cash Flow Statement
Of Fiscal Years Ended on December 31st, 2010 and 2009
Amounts expressed in EUR
Activities
Notes
2010
2009
Receipts from clients
133 203 415.92
116 642 382.28
Payments to suppliers
-15 586 355.66
-2 763 312.17
OPERATING ACTIVITIES:
Payments to personnel
Cash flows generated by operations
Income tax payment
Other payments related to the operating activity
Operating activities cash flows (1)
-1 373 482.90
-1 512 383.11
116 243 577.36
112 366 687.00
-4 266 577.78
-4 741 664.86
-23 535 441.50
-5 686 796.10
88 441 558.08
101 938 226.04
879 365.88
987 792.79
-389 013.91
-875 500.46
490 351.97
112 292.33
INVESTMENT ACTIVITIES:
Receipts related to:
Interest and similar income
Payments regarding:
Tangible fixed assets
Investment activities cash flows (2)
FINANCING ACTIVITIES:
Payments regarding:
Received Loans
-41 313 597.25
-37 198 888.69
Interest and similar expenses
-46 589 581.94
-54 481 345.72
Dividends
Financing activities cash flows (3)
-7 352 092.36
-9 244 691.67
-95 255 271.55
-100 924 926.08
-2 825 734.83
Variation in reserve accounts
1 957 319.78
Variation in cash and its equivalents (5) = (1) + (2) + (3) + (4)
-4 366 041.72
-1 700 142.54
Cash and its equivalents at the beginning of the fiscal year
9 443 595.03
11 143 737.57
5 077 553.31
9 443 595.03
Cash and its equivalents at the end of the fiscal year
4
This annex is an integral part of the income statement by nature for the Fiscal Year ended on December 31, 2010.
The Certified Accountant
The Board of Directors
ANNEX
36
Annual Report and Accounts
2010
Annex
1. Introductory Note
Amounts expressed in EUR
SCUTVIAS – Autoestradas da Beira Interior, S.A., with head office in Lisbon (Praça de Alvalade, n.º 6
– 13.º Esquerdo), was established on July 28, 1999, its main business purpose being the activity developed within the concession of the designing, planning, and construction or increase of the number of
lanes, funding, maintenance, and operation, under a shadow toll arrangement (SCUT), of the motorways
and related roadways in Beira Interior (Portugal), named as “SCUT da Beira Interior” concession.
As result from the invitation to tender issued by the Portuguese Gouvernment and regulated by DecreeLaw nº 267/97, a Concession Agreement as signed by the Portuguese State and the Company in
September 1999, establishing among other issues, a 30 year concession period, as well as other provisions regarding payments, guarantees, responsibilities, funding, and other issues regarding the
Company’s business activity.
The Ministry of Finance is responsible for supervising the Company’s compliance with its financial and
economic obligations under the Concession Agreement, whereas the Ministry of Public Works,
Transport and Housing is responsible for supervising all other obligations.
The Concession has two completely different stages: (i) the Pre-Operating Period, which ran from the
beginning of the Concession to the 31st of December, 2004, and (ii) the Operating Period, beginning on
the 1st of January, 2005, and extending up to 2029.
The Pre-Operating stage was characterised by strong investments (construction, planning, consulting,
technical assistance, insurance, inspection of the works, among others), by tests made to the whole of
the motorway’s structure and by administrative revenues (operating and investment grants).
In January, 2005, SCUTVIAS entered the Concession’s Operating Period, in which revenues effectively
correspond to the valuation of the motorways’ traffic circulation according to the tariffs established by
the Concession Agreement. This date also corresponds to the effective start date of the Company’s
business.
In the fiscal year of 2010, the Portuguese State decided to have toll fees introduced in A23 by the 15th
of April, 2011, through the Council of Minister’s Resolution n.º 75/2010.
The above decision entails changes in the current concession agreement. Therefore, we are currently
negotiation with the Portuguese State.
2. Accounting Benchmark for the Financial Statements
The attached financial statements were drafted within the framework of legal provisions currently in
force in Portugal, effective for the fiscal years beginning from the 1st of January, 2010, and established
in Decree-Law n.º 158/2009, of July 13, 2010, as well as according to the conceptual structure, accounting rules and financial reporting (“NCRF”), and interpretation rules (“NI”) accordingly established in
notices 15652/2009, 15655/2009 and 15653/2009, of September 7, 2009, which together form the
Accounting Standardisation System (“SNC”). Hereinafter, the above set of rules and interpretations are
the “NCRF”.
Annual Report and Accounts
2010
37
Until December 31, 2009, and for the fulfilment of the trade legislation in force, the Company drafted,
approved and published finacial statements, according to the accounting principles generally accepted
in Portugal until said date, and established in the National Plan of Accounts, the Accounting Guideline,
and remainder supplementary legislation known as “POC” (Official Accounting Plan), which were
revoked by the above legal documents.
The balance sheet of December 31, 2009, the income, cashflow, and shareholder equity statements,
as well as the corresponding attached notes regarding the fiscal year ended on December 31, 2009,
and shown for comparison purposes, were adjusted according to the NCRF. The adjustments entered
into force on January 1, 2009, the same date of the transition, and were made according to the provisions of NCRF 3 – Adopting the accounting and financial reporting rules for the first time. The disclosure demanded by the NCRF 3, and regarding the transtiion to the NCRF, are presneted in Note 28.
The effect of the adjustments related to the adoption of the NCRF, which took place on January 1, 2009,
was registered under retained earnings, as established by the NCRF 3.
3. Main Accounting Policies
Presentation backgrounds:
The attached financial statements were drafted based on the assumption that the operations shall continue, from the Company’s accounting records, which are ket according to the NCRF in force on the date
of the financial statements drafting. Except regarding the valuation of derivatives, the financial statements were drafted according to the historical cost convention.
The main accounting policies adopted to draft the financial statements were the following:
A) Intangible Assets
Intangible asseste comprise: (i) expenses borne in implementing the Quality System, paid off on a
straight-line basis, during a period of three years, (ii) costs incurred in with the concession agreement, paied to the Portuguese State, paid off on a straight-line basis, during the concession period,
and (iii) the right associated to the concession agreement, the cost of which corresponds to the value
paid to the Grantor, accrued with the expenses borne directly with the infrastructure’s construction,
to be paid-off by the end of the concession period.
The effect of any change to these estimates is prospectively recognised in the financial statements.
B) Tangible Fixed Assets
Acquired tangible fixed assets are recorded at cost.
Depreciation is calculated on a straight-line monthly
basis, according to the following estimated periods
of service life:
Years
Basic equipment
Transport equipment
5 to 8
4
Administrative equipment
3 to 10
Other tangible assets
4 to 10
38
Annual Report and Accounts
2010
C) Impairment of tangible and intagible assets
In each reporting date, we make a review of the carrying amounts of the Company’s tangible fixed
assets and intagible assets, aiming to determine if there is any indicator of their impairment. If there
is such an indicator, we proceed to make an estimation of the respective assets’ recoverable amount,
in order to determine the size of the impairment loss (if such is the case). When it is not possible to
determine the recoverable amount of a single asset, an estimate is made of the recoverable amount
of the cash-generating unit that asset belongs to.
The asset’s or the cash-generating unit’s recoverable amount consists in the larger between (i) the
fair value without the selling costs and (ii) the use value. In determining the use value, estimated
future cash flows are deducted using a before taxes deduction rate which mirrors market expectations regarding money’s time value, and the specific risks of assets ou de cash-generating unit,
regarding which future cash-flow estimations had not been adjusted.
Everytime the carrying amount of the asset or the cash-generating unit is higher than its recoverable
amount, we recognise a loss by impairment. The loss by impairment is immediately recorded in the
statements under “Losses by impairment”.
The reversal of losses by impairment, already recognised in previous fiscal years, is recorded when
there is evidence that the recognised losses by impairment no longer exist, or have diminished. The
reversal of loss by impairment is recognised in the statements under “Reversal of losses by impairment”. The reversal of an impairment loss is made up to the limit of the amount which would be
recognised (free of depreciation) should there not have been a loss.
D) Accrual basis of accounting
The Company records its income and expenses according to the accrual basis of accounting, by
which they are recognised when they occur, regardless of the moment in which they are received or
paid. Differences between the amounts received and the amounts paid and the respective revenues
and expenses, are recorded under the headings of other accounts receivable or accounts payable
(Notes 10 and 18).
E) Balance sheet classification
According to the NCRF, the Company classifies as “non current” all assets marketable and and liabilities receivable after one year.
F) Vehicle Rental
Vehicle rental agreements are classified as operating leases, since they do not entail the substancial
transference of all risks and advantages inherent in the respective assets to the lessee.
Tangible fixed assets, and mainly vehicles, which are used under these agreements, as well as the
ensuing liabilities, are not in the attached balance sheet. The respective rental fees are recorded as
fiscal year expenses (Note 26).
G) Income tax
The income taxe corresponds to the sum of current taxes with deferred taxes. Current taxes and
deferred taxes are recorded under profits and losses, except when they are related with items directly recorded under shareholder equity. In such cases, current taxes and deferred taxes are both
recorded under shareholder equity.
Annual Report and Accounts
2010
39
Current taxes correspond to the value due on the basis of the fiscal year’s taxable profit. The taxable
profit differs from the accounting result, since it excludes several costs and earnings which will only
be deductible or taxable in other fiscal years. The taxable profit also excludes costs and earnings
which will never be deductible nor taxable, according to the fiscal rules in force.
Deferred taxes represent the temporary differences between asset and liability values for accounting
purposes, and the values thereof for taxation purposes.
Deferred tax receivable and deferred tax payables are calculated and annualy valuated using taxation rates that are expected to be in force when the temporary differences are reversed.
Deferred tax payables are recognised for all temporary taxable differences.
Deferred tax receivables are recorded only when there is reason to believe that there will be sufficient
future fiscal profits to use them. On the date of each balance sheet, there is a re-assessment of the
temporary underlying differences in deferred tax receivables, to identify deferred tax receivables not
previously recorded due to the non-fulfilment of the conditions for their recording and/or to reduce
the amount of the deferred tax receivables recorded on the basis of a current expectation for future
recovery.
H) Financial assets and liabilities
Financial assets and liabilities are recognised in the balance sheet when the Company becomes part
of the corresponding contractual provisions.
Financial assets and liabilities at cost or at amortised cost
Financial assets and liabilities are valuated at cost or at amortised cost, after possible accumulated
impairment losses, when:
s4HEYAREINCASHORHAVEASETMATURITYDATEAND
s4HEYARELINKEDTOASETORDEFINABLEPROFITAND
s4HEYARENOTORDONOTINCORPORATEADERIVATIVEFINANCIALINSTRUMENT
The amortised cost corresponds to the amount in which a financial asset or liability is valuated in the
initial recognition, minus repayments of principal, plus or minus the cumulative depreciation, using
the effective interest rate method, of any difference between that initial amount and the maturity
amount. The effective interest rate is the rate discounting the exact future payables or receivables
estimated in the financial asset or liability net carrying amount.
Financial assets and liabilities at cost or at amortised cost include:
s#LIENTS
s/THERACCOUNTSRECEIVABLE
s3UPPLIERS
s/THERACCOUNTSPAYABLE
s2ECEIVEDFUNDING
Derivatives
It is the Company’s policy to resort to derivative financial instruments to hedge financial exposures,
particularly interest rates variations.
Derivative financial instruments are valuated at fair value. The recognition method thereof depends on
the nature and aim of the contract.
40
Annual Report and Accounts
2010
Hedge accounting
The possibility to use a derivative financial instrument as a hedging instrument is governed to the provisions in NCRF 27, namely regarding its documentation and effectiveness.
Fair value variations of derivative instruments known as “fair value” hedge are recognised as a financial
profit (loss) of the period, as well as the changes in the fair value of the assets or liabilities exposed to
such a risk.
Fair value variations of derivative instruments known as “cash flow” hedge are recognised under “Other
reserves” in their effective component, and under financial profit (loss) in their non-effective component.
The values recorded under “Other Reserves” are transferred to financial profit (loss) of the period in
which the hedged item also has an effect on profit (loss).
The accounting of the hedging is dicontinued when the hedged instrument reaches maturity, when it is
sold or exercised, or when the hedge ceases to fulfill the requirements demanded by the NCRF 27.
Trading
Changes in the fair value of derivative financial instruments which are contracted for financial hedging
purposes in accordance with the Company’s risk management policies, but do not comply with the
provisions of NCRF 27 in order to qualify for hedge accounting, are recorded in the income statement
for the period in which they occur.
Financial assets impairement
Financial assets classified under “at cost or at amortised cost” are subject to impairment testes in each
report date. Such financial assets are in impairment when there is objective evidence that their estimated cash flows are affected as a result of one or more events ocurred after their initial recognition.
For financial assets valuated at amortised cost, the recognisable loss by impairment corresponds to the
difference between the asset’s carrying amount and the current value of future new cash flows estimated to be discounted at the original effective rate interest.
For assets valuated at cost, the impairment loss to be recognised corresponds to the difference between the asset’s carrying amount and the best estimate of the asset’s fair value.
Impairment losses are recorded in profit (loss), under “Impairment losses”, in the period they are determined.
Subsequently, if the impairment loss’ amount decreased and should such a decrease be objectively
related to an event occurring after the recognition of the loss, the latter should be reversed in results.
The reversal should be made up to the limit of the amount which would be recognised (amortised cost)
if the Loss had not been initially registered. The reversal of loss by impairment is recorded in the statements under “Reversal of losses by impairment”.
Annual Report and Accounts
2010
41
Derecognition of financial assets and liabilities
The Company only derecognises financial assets when the contractual rigths to their cash flows expire,
or when it transfers to another entity all significant risks and benefits related to their possession.
Transfered financial assets of which the Company holds some significant risks and benefits are derecognised, provided control over them has been granted.
The Company only derecognises liabilities when the respective obligation is settled, cancelled, or when
it expires.
Critical value judgements and main uncertainties sources regarding estimates
The drafting of the attached financial statements entailed value judgements and estimates, and several
presupositions affecting the reported amounts of assets and liabilities, as well as the amounts of the
period’s income and expenses.
The underlying estimates and presupositions were determined on the basis of the best knowledge
existing on the date of approval of the financial statements of ongoing events and transactions, as well
as on the experience of past and/or current events. However, some situations may occur in subsequent
periods which are not considered in these estimates because they were not forseable on the date of
approval. Any estimate changes subsequent to the financial statements date shall be prospectively
corrected For this reason, and given the associated uncertainty level, the effective results of the transactions at issue may differ from the their respective estimates.
J) Events subsequent to the Balance Sheet date
The events subsequent to the balance sheet date providing additional information on conditions
existing on the date of the balance sheet (“adjustable events”) are mirrored on the financial statements. The events subsequent to the date of the balance sheet providing information on conditions
ocurring after the date of the balance sheet (“non adjustable events”) are revealed in the financial
statements if they are deemed relevant.
4. Cash and Cash Equivalents
On December 31, 2010 and 2009, this item regards cash, and ordinary deposits and short-term deposits in a financial institution, bearing interest at the normal market rates for similar operations. Its composition was as follows:
Components
Cash
Ordinary Deposits
2010
2009
2 007.72
2 006.98
4 981 359.19
1 441 588.05
Short-term Deposits
Reserve Accounts:
Debt Service Reserve – Commercial Banking
42 439 121.23
43 724 572.98
Debt Service Reserve – EIB
27 476 013.60
28 147 881.63
69 915 134.83
71 872 454.61
Checking Accounts
Cash Availabilities in the Balance Sheet
94 186.40
8 000 000.00
74 992 688.14
81 316 049.64
42
Annual Report and Accounts
2010
Reserve accounts in the form of ordinary deposits or shor-term deposits ensue from financing contract
terms and from the concession agreement, which require the maintenance of deposits equivalent to 5/3
of the next dept service.
Due to the terms of the Company Agreement and the Concession Agreement, which include limitations
on funding and investing, and taking into consideration that the Debt Service Reserve Accounts may be
moved to those purposes, Scutvias considers all of its balances to be cash and cash equivalents
5. Accounting Policies, Changes in Estimates and Errors
In the fiscal year ended on December 31, 2010, there were no changes in the accounting policies in
relation to those used to draft the financial information regarding the fiscal year of 2009, attached for
comparison pusposes, nor were there any significat errors regarding previous fiscal years recorded.
6. Group Companies and Related Parties
On December 31, 2010 and 2009, the Company’s share capital was fully subscribed and paid up, and
consisted of 49.200.000 shares with the nominal value of one Euro per share. It was held by the following entities:
Shareholders
Amount
% Holding
)NTEVIASn3ERVI½OSE'ESTáO3!
16 399 999.00
33.33
ES Concessões
10 937 708.00
22.23
Global Via Infraestruturas. S.A.
10 931 146.00
22.22
Alves Ribeiro. S.A.
10 931 146.00
22.22
Soares da Costa Concessões, S.G.P.S.
Total
1.00
49 200 000.00
100.00
Remuneration of key management personnel
Remunerations of the Company’s key management personnel in the fiscal years ended on December
31, 2010 and 2009 were as follows:
Board of Directors
2010
2009
144 270
144 270
Annual Report and Accounts
2010
43
Transactions with shareholders and related parties
Throughout the fiscal years of 2010 and 2009, the following transactions with shareholders took place:
December 31, 2010
BALANCES
Shareholders and Related Parties
TRANSACTIONS
Received
Financing
Non Current
(Note 17)
Received
Financing
Current
(Note 17)
Current
accounts
payable
Current
accounts
receivable
Interest Borne
(Note 24)
Supplies and
Services
)NTEVIASn3ERVI½OSE'ESTáO3!
–
–
254 321.18
7 893 450.27
628 062.67
–
ES Concessões
–
38 792.60
169 615.30
5 264 405.98
418 876.00
32 060.00
–
32 060.00
172 558.69
5 261 247.64
418 624.70
32 060.00
1 362.20
61 480.10
169 513.53
5 261 247.64
418 624.70
107 060.00
0.04
48 090.00
Global Via Infraestructuras, S.A.
Alves Ribeiro, S.A.
Soares da Costa Concessões, S.G.P.S.
–
58 188.90
0.02
0.48
-2.n-ANUTEN½áODE2ODOVIAS.ACIONAIS3! (a)
–
2 475 817.45
–
–
– 14 597 980.79
1 362.20
2 666 339.05
766 008.72 23 680 352.01
1 884 188.11 14 817 250.79
Total
$URINGTHEFISCALYEAROF3CUTVIASENTEREDINTOASERVICESUPPLYCONTRACTWITH-2.n-ANUTEN½áODE2ODOVIAS.ACIONAIS
S.A., for the conservation and maintenance of A23. The contract ends in December, 2013 (Note 20).
a)
December 31, 2010
BALANCES
Shareholders and Related Parties
Current
accounts
payable
Current
accounts
receivable
TRANSICTIONS
Received
Financing
Current
(Note 17)
Received
Financing
Non Current
(Note 17)
Interest Borne
(Note 24)
Supplies and
Services
)NTEVIASn3ERVI½OSE'ESTáO3!
–
–
372 051.83
5 492 605.42
997 721.30
–
Sopol Concessões S.G.P.S.
–
16 488.00
291 922.13
3 663 202.23
665 413.71
91 560.00
Global Via Infraestructuras, S.A.
–
50 380.00
247 984.94
3 661 004.52
665 014.49
32 060.00
Alves Ribeiro, S.A.
1 362.20
79 321.69
265 818.63
3 661 004.52
665 014.49
182 060.00
Soares da Costa Concessões, S.G.P.S.
7 442.81
20 610.00
0.03
0.33
0.06
48 090.00
Total
8 805.01
166 799.69
1 177 777.56 16 477 817.02
2 993 164.05
353 770.00
On December 31, 2010 and 2009, the liabilities item non current “Received Funding” includs shareholder loans, in the proportion of their participations in Company capital. Although the loans have no defined repayment date, the Board of Directors considers that they are not repayable in the short term. They
are therefore recorded under non current liabilities. The item “Received Funding” of current assets
records the interests on the loans, which are calculated at na annual rate of 11%.
44
Annual Report and Accounts
2010
7. Changes in Tangible Assets
During the fiscal years ended on December 31, 2010 and 2009, the changes in tangible fixed assets
and respective accumulated depreciation was as follows:
December 31, 2010
Tangible Assets
Buildings
and Other
Constructions
Basic
Equipment
Transport
Equipment
Current
Administrative Other tangible
tangible fixed
Equipment
fixed assets
assets
Total
Gross Assets
Opening balance
–
186 334.79
131 391.82
Acquisitions
–
23 900.00
69 394.40
Disposals
–
–
Transfers
–
–
–
210 234.79
195 615.67
Opening balance
–
121 151.36
55 457.19
452 329.89
Depreciation of the fiscal year
–
12 858.52
25 070.15
Disposals
–
–
-4 928.08
–
134 009.88
–
76 224.91
Closing balance
617 059.57 1 125 376.58
14 839.20
2 075 001.96
2 582.66
274 294.53
–
–
-5 170.55
–
-14 839.20
–
772 110.38 1 163 582.44
2 582.66
2 344 125.94
817 920.30
–
1 446 858.74
92 198.48
109 724.92
–
239 852.07
–
–
–
-4 928.08
75 599.26
544 528.37
927 645.22
–
1 681 782.73
120 016.41
227 582.01
235 937.22
2 582.66
662 343.21
140 211.61
38 205.86
-5 170.55
–
–
14 839.20
Accumulated depreciation
Closing balance
Net assets
December 31. 2009
Tangible Assets
Buildings
and Other
Constructions
Basic
Equipment
Current
Administrative Other tangible
tangible fixed
Equipment
fixed assets
assets
Transport
Equipment
Total
Gross Assets
Opening Balance
884 803 720.51
181 366.36
52 600.12
566 013.54
955 915.38
Restatement adjustments (Note 28)
-884 803 720.51
–
–
–
–
Restated opening balance
–
181 366.36
52 600.12
566 013.54
955 915.38
23 388.75
1 779 284.15
Acquisitions
–
14 219.50
81 833.10
101 709.58
219 586.51
14 839.20
432 187.89
Disposals
–
–
-3 041.40
–
–
–
-3 041.40
Transfers
–
–
–
–
23 388.75
-23 388.75
–
Write-offs
–
-9 251.07
–
-50 663.55
-73 514.06
–
-133 428.68
–
186 334.79
131 391.82
617 059.57 1 125 376.58
14 839.20
2 075 001.96
Opening balance
182 194 822.96
119 759.93
48 255.54
452 959.28
797 110.89
–
183 612 908.60
Restatement adjustments (Note 28)
-182 194 822.96
–
–
–
–
–
–
Restated opening balance
–
119 759.93
48 255.54
452 959.28
797 110.89
–
1 418 085.64
Depreciationj of the fiscal year
–
10 642.50
9 818.64
49 551.48
94 113.02
–
164 125.64
Disposals
–
–
-2 616.99
–
–
–
-2 616.99
Write-offs
–
-9 251.07
–
-50 180.87
-73 303.61
–
-132 735.55
–
121 151.36
55 457.19
452 329.89
817 920.30
–
1 446 858.74
–
65 183.43
75 934.63
164 729.68
307 456.28
14 839.20
628 143.22
Closing balance
23 388.75
886 583 004.66
– -884 803 720.51
Accumulated depreciation
Closing balance
Net assets
Annual Report and Accounts
2010
45
8. Changes in Intangible Assets
During the fiscal years ended on December 31, 2010 and 2009, the changes in intangible assets and
respective accumulated depreciation was as follows:
December 31, 2010
Concession
Agreement
Intangible Assets
Other intangible
assets
Total
Gross Assets
Opening balance
694 587 604.43
1 470 009.06
696 057 613.49
–
–
–
694 587 604.43
1 470 009.06
696 057 613.49
33 479 122.58
515 009.67
33 994 132.25
33 479 123.73
47 896.53
33 527 020.26
66 958 246.31
562 906.20
67 521 152.51
627 629 358.12
907 102.86
628 536 460.98
Acquisitions
Closing balance
Accumulated amortisation
Openingt balance
Amortisation of the fiscal year
Closing balance
Net assets
December 31, 2009
Concession
Agreement
Intangible Assets
Other intangible
assets
Total
Gross Assets
Opening Balance
–
1 479 309.06
1 479 309.06
Restatement adjustments (Note 28)
694 587 604.43
-9 300.00
694 578 304.43
Restated opening balance
694 587 604.43
1 470 009.06
696 057 613.49
Acquisitions
Closing balance
–
–
–
694 587 604.43
1 470 009.06
696 057 613.49
–
466 145.03
466 145.03
33 479 122.58
48 864.64
33 527 987.22
Accumulated amortisation
Opening balance
Amortisation of the fiscal year
Closing balance
Net assets
33 479 122.58
515 009.67
33 994 132.25
661 108 481.85
954 999.39
662 063 481.25
On December 31, 2010, the total financial costs capitalised under Intagible Assets amounted to EUR
241.883.040 Euros during the construction period.
46
Annual Report and Accounts
2010
9. Clients
On December 31, 2010 and 2009, the “Clients” had the following composition:
Clients
31/12/2010
Clients current account
31/12/2009
86 076.97
167 617.39
39 135 353.14
35 647 082.15
39 221 430.11
35 814 699.54
Clients by income increase
Band revenues (a)
Total
(a)
Clients by increase in revenue - “band receipts”.
This item corresponds to traffic revenue values of the fiscal year ended on December 31, 2010, and
which were invoiced and received during the fiscal year ending on December 31, 2011.
10. Other Accounts Receivable
On December 31, 2010 and 2009, “Other Accounts Receivable” recorded the following composition:
Other Accounts Receivable
31/12/2010
31/12/2009
Current:
Debtors by income increase
Interests receivable
407 119.97
Service areas
Other debtors
Total
195 022.13
72 517.09
71 862.19
3 229 364.88
3 203 605.43
3 709 001.94
3 470 489.75
11. Income Tax
According to the legislation in force, income tax returns are subject to review and correction by the fiscal
authorities during a four year period (five years for Social Security), except in the case of tax losses or
when tax benefits have been granted, or when there are pending inspections, complaints or claims, in
which case the deadlines are extended or suspended, depending on the circumstances. Therefore, the
Company’s tax returns regarding the years 2007 through 2010 may still be reviewed. The Company’s
Administration considers that any possible corrections to the above tax returns, resulting from the
reviews/inspections by the fiscal authorities, will bear no significant effect on the financial statements of
December 31, 2010.
The Company is subject to the IRC – Corporate Income Tax at 25% rate, which is usually increased by
a Municipal Surcharge up to 1.5%. However, in accordance with circular letter n.º 0201302008 of March
27, Scutvias is free of Municipal Surcharge, since about 90% of its employees work in the Castelo
Branco district, which is exempt from such a surcharge. Furthermore, from January 1, 2010 taxable
profits exceeding EUR 2 million are subject to a state surcharge of 2.5% rate, under Article 87 A of the
CIRC (Corporate Income Tax Code).
Annual Report and Accounts
2010
47
In the terms of Article 88 of the CIRC, the Company is also subject to autonomous taxation on a range
of charges, at the rates established in said Article. In the table bellow, the autonomous taxation corresponds to Tax Adjustments.
The tax rate reconciliation for the fiscal year ended on December 31, 2010 and 2009 may be shown as
follows:
Expenses with Income Taxes
Earnings before taxes
31/12/2010
31/12/2009
16 230 158.39
22 268 688.96
Nominal income taxes uo to 12.500€
12.5%
12.5%
Nominal income taxes over 12.500€
25.0%
25.0%
4 055 977.00
5 567 172.24
Tax exemptions or reductions
-5 197.99
-6 507.00
Other net situations
19 015.21
97 104.98
13 817.00
90 598.00
Expected tax
Permanent differences
25.0%
25.0%
3 454.25
22 650.00
Depreciation not accepted for tax purposes
2 834 314.21
2 834 314.21
Variations change of legal measures
2 910 469.26
–
5 744 783.00
2 834 314.00
Nominal income taxes
Temporary differences:
Nominal income taxes
Adjustments to collection – autonomous taxation
25.0%
25.0%
1 436 196.00
708 578.50
11 976.42
14 758.70
499 718.98
—
Temporary differences
-1 579 815.46
-708 578.50
Adjustment of tax rate
1 763 030.78
–
1 600.00
1 942.87
6 192 137.97
5 606 523.31
Adjustments to collection – state surcharge 2010 (art. 87.º A CIRC)
Variations in deferred taxes
Other net situations
Income tax for the fiscal year
Effective tax rate
Current tax
Deferred tax occurring in the fiscal year
38.15%
25.18%
4 429 107.19
3 976 763.57
1 763 030.78
1 629 759.74
6 192 137.97
5 606 523.31
48
Annual Report and Accounts
2010
Deferred Taxes
The changes in deferred tax assets in the fiscal years ended on December 31, 2010 and 2009 were the
following:
31/12/2010
Deferred Taxes
Balance 01/01/2009
Deferred tax
receivables
31/12/2009
Deferred tax
payables
Deferred tax
receivables
Deferred tax
payables
–
–
–
–
Derecognition of pre-operating earnings
–
–
–
4 228 618.18
Derecognition of pre-operating costs
–
–
–
-2 034 147.88
Cancellation of already capitalised major repairs
–
–
–
-1 276 012.97
Cancellation of the Amortisation of Major Repairs
–
–
–
383 615.99
Derecognition intangible assets
–
–
–
-2 325.00
Depreciation not accepted for tax purposes
–
–
–
14 700 799.83
Transition adjustments (Note 28):
Effect on profit and losses:
Effect on reserves:
Differences following fair value valuations:
Interest Rate Swap
–
–
10 703 137.49
–
11 066 611.96
17 630 307.89
10 703 137.49
16 000 548.15
Derecognition of pre-operating costs
–
–
–
-272 872.80
Recalculation of amortisation initial investment
–
–
–
2 887 086.71
Derecognition of earnings re-balance
–
–
–
-87 125.40
Cancellation of already capitalised major repairs
–
–
–
-286 781.44
Derecognition of pre-operating earnings
–
–
–
98 031.23
Depreciation not accepted for tax purposes
–
–
–
-708 578.56
Effect tax rate change:
–
–
–
–
SNC Variations
–
363 808.66
–
–
Depreciation not accepted for tax purposes
–
1 399 222.12
–
–
Recognition 1/5 tax variations SNC
–
-800 379.05
–
–
Depreciation not accepted for fiscal effects
–
-779 436.41
–
–
–
–
363 474.47
–
–
183 215.32
363 474.47
1 629 759.74
319 997.87
–
–
–
319 997.87
–
–
–
11 386 609.83
17 813 523.21
11 066 611.96
17 630 307.89
Restated Opening Balance
Effect on profit and losses:
State amd other current public agencies:
Effect on reserves:
Differences following fair value valuations:
Interest Rate Swap
Effect on reserves:
Differences following fair value valuations:
Interest Rate Swap
Closing Balance
Annual Report and Accounts
2010
49
12. State and other Public Agencies
On December 31, 2010 and 2009, the items “State and Other Public Agencies” had the following composition:
State and other Public Agencies
Assets
31/12/2010
Liabilities
Assets
31/12/2009
Liabilities
Corporate income tax
Tax estimate (Note 11)
–
4 429 107.19
–
Recognition Deferred Taxes
–
1 579 815.46
–
–
Payments on account
–
-3 619 512.99
–
-3 127 080.60
Tax Withholding at Source
–
-199 639.56
–
-244 346.92
171 696.31
Tax withholding at source on third parties’ income
Valued added tax
Social Security contributions
Balance
3 976 763.57
–
167 620.84
–
103 303.71
–
101 504.62
–
–
30 976.23
–
43 551.20
103 303.71
2 388 367.17
101 504.62
820 583.56
13. Deferrals
On December 31, 2010 and 2009, “Deferrals” had the following composition:
Deferrals
31/12/2010
31/12/2009
Assets
Fee letters
291 767.52
279 200.87
Insurance
54 261.95
8 402.78
Others
1 536.90
9 865.76
347 566.37
297 469.41
Arbitration proceedings (a)
2 860 052.98
2 860 052.98
Service areas (b)
2 746 320.24
2 892 181.80
5 606 373.22
5 752 234.78
Total
Liabilities
Total
(a) – Arbitration Proceedings
Following the execution of contracts established between Scutvias and Galp, Scutvias charged the
latter with a series of penalties and interests on arrears. The fairness of the above measure will be
judged by the Court. The overall amount of said penalties and interets on arrears is EUR 2.860.052,98
(Note 29).
(b) – Service Areas
The amounts received under the concession agreements for the service areas of Abrantes, Castelo
"RANCOAND&UNDáO#EPSAARERECORDEDASINCOMERECOGNISEDASRESULTSINALINEARFASHIONDURING
the concession period.
14. Capital and Reserves
Other instruments of shareholders’ equity: Following the deliberation of the Shareholders’ Meeting, there
was a transfer of EUR 7.202.535 from Accessory Capital to Loans, in proportion with the Share Capital.
50
Annual Report and Accounts
2010
Allocation of 2009 net profit: Following the deliberation of the Shareholders’ Meeting of March 31, 2010,
the net profit of the fiscal year ended on December 31, 2009, was allocated as follows:
Mandatory Reserve .............................................
EUR 400,292.24
Dividends ........................................................... EUR 7,605,552.56
Mandatory Reserve – Trade legislation establishes that at least 5% of the annual net profit be allocated
to the mandatory reserve, until the latter reaches at least 20% of the share capital. This reserve may
not be distributed unless the company is liquidated. However, it may be used to cover losses after all
other reserves have been used up, or it may be incorporated into the share capital.
Other Reserves – This item indicates: (i) the effect of the variations seen in the market value of the
derivative contracted to cover cash flows arising from the received funding, and deducted from tax
effects (deferred) (Note 18 a), (ii) free reserves, available for distribution, according to the deliberation
of the Shareholders’ Meeting of March 31, 2009.
15. Average Personnel Number
During the fiscal years ended on December 31, 2010 and 2009, the average number of employees was
57 and 89, accordingly.
16. Garantees Provided
On December 31, 2010, the Company had outstanding bank guarantees totalling EUR 6.467.369,41 in
favour of the Portuguese State, as provided for in the concession agreement.
On the same date, the Company had provided bank guarantees in the amount of EUR 249.662.128,34
to the European Bank of Investment, as provided for in the financing contract. The bank entities involved
in providing said bank guarantees are the same as those involved in the syndicated bank loan. Since
there has been a change in the electric power supplier, the guarantees the Company had provided to
EDP were canceled.
Annual Report and Accounts
2010
51
17. Received Funding
On December 31, 2010 and 2009, “Received Funding” recorded the following composition:
Received Financing
31/12/2010
31/12/2009
Non Current:
Bank Financing
European Investment Bank
305 229 000.00
317 767 749.96
Banking Syndicate
238 989 163.42
268 418 125.95
Other Financing
Shareholders’ Loans (Note 6)
23 680 352.01
16 477 817.02
Total non current financing
567 898 515.43
602 663 692.93
European Investment Bank
12 538 750.00
12 538 750.00
Banking Syndicate
28 811 921.14
28 157 805.90
Current:
Bank Financing
Financing Expenses
Shareholders’ Loan Interests (Note 6)
Loan Interests
Total current financing
Total
766 008.72
1 177 777.56
10 136 848.63
10 739 286.42
52 253 528.49
52 613 619.88
620 152 043.92
655 277 312.81
Bank Institutions:
On December 31, the item for medium and long term loans included the funding received from the
European Bank of Investment and the bank syndicate, for the construction of the concession’s motorway.
Thus:
Line
Interest Rate
1.st Rep of Principal
Last Rep of Principal
Banking Syndicate
Euribor 6 months indexed Variable
Interest Rate
First Quarter of 2006
First Quarter of 2019
European Investment Bank
6.43% fixed Variable Interest Rate
Second Quarter of 2007
First Quarter of 2024
The Company provided bank guarantees to the EIB (European Investment Bank) in the amount of EUR
249,662,128.34, equal to 78.56% of the outstanding loan (Nota 16). This guarantee will be gradually
reduced in proportion to the reduction of the cover and the repayment of the outstanding principal. The
Company provides no bank guarantees to the banking syndicate to cover the loan facility.
52
Annual Report and Accounts
2010
The principal of this loan will be repaid by 2024, as per the table below (nominal values):
Loan Facility (*)
Fiscal Year
(*)
EIB
2011
28 811 921.14
12 538 750.00
2012
29 512 979.53
12 538 750.00
2013
29 779 787.93
17 375 125.00
2014
30 368 816.09
20 957 626.00
2015
31 171 576.99
20 957 626.00
2016
32 165 684.52
21 047 188.00
2017
33 361 205.44
21 136 750.00
2018
34 719 594.83
22 480 188.00
2019
17 909 518.15
24 361 000.00
2020
–
27 943 500.00
2021
–
29 555 625.00
2022
–
32 600 750.00
2023
–
36 004 125.00
2024
–
18 270 747.00
Total
267 801 084.62
317 767 750.00
Based on the Repayment Plan by Facility Agent (Millenium BCP)
Under the financing agreements, the Company is also subject to compliance with Financial Covenant
Ratios. The latter may not fall bellow minimum values, under penalty of the Company becoming liable
for contractual non-fulfilling.
Ratio
Description
Minimum
Annual Debt Service Cover Ratio
excluding Cash
(Cash Flow available for Debt Service) / Debt Service
1.05 x
Loan Life Cover Ratio
- of the Current Value of [(Cash Flow available for Debt
Service + Balance of Reserve Accounts except Liquidity
Reserve and Debt Service Reserve) / Debt Service]
1.15 x
On December 31, 2010, the Company is in compliance with the requirements.
Shareholders’ Loans:
On December 31, 2010, the item for medium and long term loans included the funding received by the
shareholders in the amount of EUR 23,680,352.00, in proportion with the Share Capital (Note 6).
Annual Report and Accounts
2010
53
18. Other Accounts Payable
On December 31, 2010 and 2009, “Other Accounts Payable” recorded the following composition:
Other Accounts Payable:
31/12/2010
31/12/2009
Non current:
Hedging derivatives (a)
Balance
41 405 853.94
44 266 447.83
41 405 853.94
44 266 447.83
2 578 236.84
152 270.15
244 126.49
316 218.73
54 219.72
55 134.49
Current:
Creditors for increase in expenses:
Supplies and services received
Costs with Personnel
Taxes
Investment suppliers
Creditors
Balance
66 366.40
91 386.89
406 908.18
504 293.39
3 349 857.63
1 119 303.65
(a) - Swap
This item regards the market value, on December 31, 2010, of the interest rate swap acquired by the
Company, under which the variable interest rates of funding arrangements is exchanged for a fixed
interest rate, thus covering the cash flows related to said financing arrangements.
Since that after October 1, 2008, the formal requirements provided in IAS 39 concerning the relationship
and cover effectiveness documentation were met, this arrangement became then known as Cover of
Cash Flow. Consequently, after October 1, 2008, the variations in this instrument’s market value were
recognised in “Other Reserves” since the hedging is deemed fully effective.
19. Provision of Services per Activity
The “provisions of services” during the fiscal year ended on December 31, 2010 and 2009, were as
follows:
Services Rendered
31/12/2010
Traffic
113 223 041.54
Service areas
Total
31/12/2009
111 131 532.59
1 045 254.70
1 022 560.68
114 268 296.24
112 154 093.27
54
Annual Report and Accounts
2010
20. Supplies and Services Received
In the fiscal year ended on December 31, 2010, “Supplies and services received” were as follows:
Supplies and Services Received
Maintenance and repairs (a)
31/12/2010
31/12/2009
15 667 904.48
2 473 665.35
Specialised Works
902 814.32
1 169 004.13
Insurance
461 522.12
570 539.24
Electricity
259 899.72
318 724.46
Fuel
183 810.22
172 353.23
Rents and leases
161 535.56
200 795.09
Legal department and notary public
104 946.76
4 663.63
Communication
94 639.43
103 035.21
Fees
89 295.94
99 847.99
Materials
55 291.65
86 408.85
Advertising and publicity
49 712.10
38 315.28
Travels and stays
32 387.50
44 066.01
Cleaning, hygiene and comfort
15 520.91
17 741.55
Water
3 736.15
2 842.42
Other RSS
7 537.64
10 457.47
18 090 554.50
5 312 459.91
Total
(a) – Maintenance and Repairs
This item regards the value of the contract signed during the year 2010 for the maintenance and repairing of A23 (Note 6).
21. Costs with Personnel
During the fiscal year ended on December 31, 2010 and 2009, “costs with personnel” were as follows:
Costs with Personnel
Personnel remuneration (Note 15)
Charges on remunerations
31/12/2010
31/12/2009
1 606 213.85
2 043 753.05
322 862.21
422 516.26
Indemnities
62 902.72
5 000.00
Insurance
25 066.85
34 743.43
Training
Total
8 499.90
17 244.67
2 025 545.53
2 523 257.41
Annual Report and Accounts
2010
55
22. Other Income and Profits
During the fiscal year ended on December 31, 2010 and 2009, “other income and profits” were as follows:
Other Operating Income and Gains
Accident compensations
31/12/2010
31/12/2009
494 358.71
381 159.13
Corrections regarding previous periods
62 555.11
78 723.07
Other supplementary income
34 758.62
1 243.45
Assistance in A23
3 895.61
4 329.24
Tangible assets expenses
3 090.85
1 208.92
Received cash discounts
2 937.40
7 329.03
21.15
1 887.47
Foreign exchange gains
Others
Total
6 331.60
8 113.97
607 949.05
483 994.28
23. Other Expenses and Losses
During the fiscal year ended on December 31, 2010 and 2009, “other expenses and losses” were as
follows:
Other Operating Expenses and Losses
Taxes
31/12/2010
31/12/2009
305 679.33
519 971.17
Bank fees and expenses
66 668.87
69 185.27
Donations
20 626.96
21 340.00
Contributions
9 455.00
1 510.00
Foreign exchange losses
1 457.41
616.92
Penalties and fines
Correction of previous fiscal years
Other operating expenses
Total
322.71
541.43
0.05
76 306.75
37 233.82
35 857.44
441 444.15
725 328.98
24. Interests and other Income and Similar Expenses
During the fiscal year ended on December 31, 2010 and 2009, interests and similar expenses were as
follows:
Financing expenses
31/12/2010
31/12/2009
Interests borne
Bank financing
Shareholders’ Loan interests (Note 6)
Other financing expenses
Total
41 232 190.96
43 902 516.15
1 884 188.09
2 993 164.05
43 116 379.05
46 895 680.20
2 324 240.84
2 408 856.48
45 440 619.89
49 304 536.68
56
Annual Report and Accounts
2010
During the fiscal year ended on December 31, 2010 and 2009, interests and similar income were as
follows:
Interest Income
31/12/2010
31/12/2009
Received interests
Financial institutions deposits
1 118 949.50
1 188 297.20
Total
1 118 949.50
1 188 297.20
25. Disclosure Required by Law
Fees received by the Statutory Auditor
The total fees of the fiscal years ended on December 31 2010 and 2009 regarding the services provided
by the Statutory Auditor amounted to EUR 19.000,00 regarding both fiscal years.
26. Financial Commitments Entered into and not Included on the Balance
Sheet
Concession Agreement
The Concession Agreement, signed in September, 1999, with the Portuguese State, establishes a set
of obligations, namely regarding payments, guarantees, liabilities, funding, and other operating, financial, and legal issues, which the Board of Directors believes are being fulfilled.
Operating Leases
On December 31, 2010, the Company kept leases for operating vehicles, the value of which amounted
to EUR 137.823,02 in the fiscal year ended on that date, and was recorded under “Supplies and services received”. Also on that date, the Company’s liabilities regarding future rental fees are scheduled as
follows:
Operating Leases
Up to 1 year
78 674.37
Between 1 year and 5 years
38 823.62
117 497.99
27. Earnings per Share
Earnings per share for the fiscal years ended December on 31, 2010 and 2009 were as follows:
Earnings per share
Net profit of the fiscal year
Shares outstanding
Basic Earnings per Share
31/12/2010
31/12/2009
10 038 020.42
16 662 165.65
49 200 000
49 200 000
0.20
0.34
Annual Report and Accounts
2010
57
28. First Time Adoption of Accounting and Financial Reporting Rules
As mentioned in Note 2, the Company adopted the NCRF, as of January 1, 2010.
The financial information regarding 2009, attached for comparison purposes, was restated to comply
with NCRF requirements. The transition adjustments, which also took effect on January 1, 2009, were
made according to the NCRF 3 – First time adoption of accounting and financial reporting rules, and
were recorded as retained earnings, as established by said rule.
SNC establishes that when the NCRF do not answer user needs as regards the handling of certain
situations in an accounting perspective, they should firstly resort to the IFRS as adopted by the
European Union, and secondly to the IFRS not yet adopted by the European Union.
In this context, the interpretation made by the International Accounting Standards Board (“IASB”) ragarding this theme and established in IFRIC 12 – Service Concession Agreements (“IFRIC12”), is applicable to public service concessions in general, and to Scutvias’ case in particular. This interpretation was
issued by the IASB in November, 2006, to apply to fiscal years beginning on or after January 1, 2008.
Its adoption by the European Union only occurred in March, 2009, and its mandatory application was
established for fiscal years beginning on or after January 1, 2010.
Therefore, the main accounting policies stemming from the adoption of the NCRF and IFRIC 12 are the
following:
– Up until the adoption of the NCRF, the capitalisation of costs and earnings incurred into in the pre-operating stage of concessionaire companies was generally accepted in Portugal. According to the
NCRF, specifically NCRF 6 – Intangible Assets (“NCRF 6”), the capitalisation of startup or pre-operating costs is not allowed.
– On the terms of the IFRIC 12, the infrastructure is not to be recognised as a tangible fixed asset
belonging to the operator. The latter only has the right to use the infrastructure to provide a (public)
service, on the grantor’s account. Therefore, Scutvias proceeded to record an intangible asset related
to the right of operating the infrastructure in return for the payments and other considerations for that
purpose. The resulting intagible asset will be reduced by depreciation throughout the concession
period.
– Insofar some of the items belonging to the intagible asset were being repaid in a shorter term than
the concession term, its service life will be changed by the end of the concession period (September,
2029).
– According to the IFRIC 12, any interventions in the infrastructure which do not correspond to a initial
investment in construction, expansion, or capacity increase, shall not be capitalised when they are
made, insofar as they result from a contractual obligation. The entailed cost will thus become an operating cost.
– Most financial assets and liabilities, which include accounts receivable and accounts payable, are
valuated according to the amortised cost. The application of this criteria is shown in its valuation, at
each moment, by the corresponding discounted value (when it is feasible and demandable on the
medium and long term), which is updated according to an effective interest rate.
– Extraordinary profit (loss) – the NCRF do not provide for extraordinary costs and earnings.
58
Annual Report and Accounts
2010
Consequently, the values previously shown in the “extraordinary” items of the financial and cash flow
statements were re-classified according to their corresponding nature.
– According to the NCRF 25, there are new deferred taxes on the SWAP’s fair value recorded under the
company’s financial liabilities ando on the depreciation generated by intangible assets, the deductibility of which is not acceted for fiscal effects.
On January 1, 2009, the effects on the Balance Sheet of the conversion of the financial statements
drafted according to the “POC” for restated financial statements, in conformity with the SNC in force on
January 1, 2010, were detailed as follows:
January 1, 2009
NCRF conversion
adjustments
NCRF conversion
reclassification
-3 569 587.98
-699 039 171.94
361 336.14
1 013 164.03
-9 300.00
694 587 604.43
695 591 468.46
–
10 703 137.49
–
10 703 137.49
703 983 260.09
7 124 249.51
-4 451 567.51
706 655 942.09
Clients
471 116.68
–
40 028 316.65
40 499 433.33
State and other public agencies
111 062.09
–
–
111 062.09
40 874 609.31
–
-40 028 316.65
846 292.66
Balance Sheet
POC
NCRF
Non current assets
Tangible fixed assets
Intangible assets
Deferred tax receivables
702 970 096.06
Current Assets
Other accounts receivable
Deferrals
Cash and bank deposits
Total assets
8 439 022.93
-8 136 591.51
–
302 431.42
80 190 457.35
–
–
80 190 457.35
130 086 268.36
-8 136 591.51
–
121 949 676.85
834 069 528.45
-1 012 342.00
-4 451 567.51
828 605 618.94
49 200 000.00
–
–
49 200 000.00
2 850 001.05
–
–
2 850 001.05
-17 171 449.16
10 703 137.49
–
-6 468 311.67
Shareholders’ Equity
Paid-in Capital
Mandatory Reserves
Other reserves
Retained earnings
729.64
-10 801 554.93
–
-10 800 825.29
Period’s net profit
12 023 244.64
–
–
12 023 244.64
Total Shareholders’ Equity
46 902 526.17
-98 417.44
–
46 804 108.73
629 295 749.09
–
23 680 352.01
652 976 101.10
–
16 000 548.15
–
16 000 548.15
29 846 388.97
–
12 966 160.99
42 812 549.96
659 142 138.06
16 000 548.15
36 646 513.00
711 789 199.21
615 055.42
–
–
615 055.42
2 408 814.38
LIABILITIES
Non current liabilities
Other received funding
Deferred tax payables
Other accounts payable
Current Liabilities
Suppliers
State and other public agencies
2 408 814.38
–
–
Shareholders/partners
10 271 792.08
–
-10 271 792.08
–
Received funding
34 785 571.43
–
16 437 829.04
51 223 400.47
Other accounts payable
55 539 547.33
_
-42 812 549.96
12 726 997.37
Deferrals
24 404 083.58
-16 914 472.71
-4 451 567.51
3 038 043.36
128 024 864.22
-16 914 472.71
-41 098 080.51
70 012 311.00
Total Liabilities
787 167 002.28
-913 924.56
-4 451 567.51
781 801 510.21
Total Shareholders’ Equity and Liabilities
834 069 528.45
-1 012 342.00
-4 451 567.51
828 605 618.94
Annual Report and Accounts
2010
59
On December 31, 2009, the effects on the Balance Sheet of the conversion of the financial statements
drafted according to the POC for restated financial statements, in conformity with the SNC in force on
January 1, 2010, were detailed as follows:
December 31. 2009
Balance Sheet
NCRF conversion
adjustments
NCRF conversion
reclassification
658 423 831.99
7 755 060.60
-665 550 749.37
628 143.22
964 299.39
–
661 099 181.86
662 063 481.25
POC
NCRF
Non current assets
Tangible fixed assets
Intangible assets
–
11 066 611.96
–
11 066 611.96
659 388 131.38
18 821 672.56
-4 451 567.51
673 758 236.43
Clients
167 617.39
–
35 647 082.15
35 814 699.54
State and other public agencies
101 504.62
–
–
101 504.62
39 117 571.90
–
-35 647 082.15
3 470 489.75
8 041 936.01
-7 744 466.60
–
297 469.41
Deferred tax receivables
Current Assets
Other accounts receivable
Deferrals
Cash and bank deposits
Total Assets
81 316 049.64
–
–
81 316 049.64
128 744 679.56
-7 744 466.60
–0.00
121 000 212.96
788 132 810.94
11 077 205.96
-4 451 567.51
794 758 449.39
Shareholders’ Equity
Paid-in Capital
49 200 000.00
–
–
49 200 000.00
Other instruments of shareholders’ equity
7 202 534.99
–
–
7 202 534.99
Mandatory Reserves
3 451 163.28
–
–
3 451 163.28
Other reserves
-7 203 264.62
11 066 611.96
–
3 863 347.34
Retained earnings
729.64
-10 801 554.93
_
-10 800 825.29
8 005 844.70
8 656 320.95
–
16 662 165.65
60 657 007.99
8 921 377.98
–
69 578 385.97
586 185 875.91
–
16 477 817.02
602 663 692.93
–
17 630 307.89
–
17 630 307.89
17 637 760.89
–
26 628 686.94
44 266 447.83
603 823 636.80
17 630 307.89
43 106 503.96
664 560 448.65
Suppliers
313 872.90
–
–
313 872.90
State and other public agencies
820 583.56
–
–
820 583.56
Received funding
40 696 555.90
–
11 917 063.98
52 613 619.88
Other accounts payable
56 142 871.59
–
-55 023 567.94
1 119 303.65
Deferrals
25 678 282.20
-15 474 479.91
-4 451 567.51
5 752 234.78
123 652 166.15
-15 474 479.91
-47 558 071.47
60 619 614.77
Total Liabilities
727 475 802.95
2 155 827.98
-4 451 567.51
725 180 063.42
Total Equity and Liabilities
788 132 810.94
11 077 205.96
-4 451 567.51
794 758 449.39
Period’s net profit
Total Shareholders’ Equity
LIABILITIES
Non current liabilities
Other received funding
Deferred tax payable
Other accounts payable
Current Liabilities
60
Annual Report and Accounts
2010
On January 1, 2009, the transition date, and December 31, 2009, the reconciliations between the
shareholder’s equity according to the POC and the SNC were as follows:
Shareholders’ Equity Reconciliation
01/01/2009
31/12/2009
Shareholders’ equity according to previous accounting banchmark
46 902 526.17
Derecognition of pre-operating costs
-8 136 591.51
-7 744 466.60
Derecognition of pre-operating earnings
16 914 472.71
15 822 981.51
Derecognition of previously capitalised repairs
-5 104 051.93
-6 251 315.31
Cancellation of amortisation related to capitalised repairs
1 534 463.95
2 262 244.84
Derecognition of intangible investments
Change of the intangible assets’ service life by the end of the concession
60 657 007.99
-9 300.00
-9 300.00
–
11 753 431.07
–
-348 501.60
5 198 993.22
15 485 073.91
-1 299 748.32
-3 638 086.62
Depreciation not accepted for tax purposes
-14 700 799.83
-13 992 221.27
Fair Value Swap
10 703 137.49
11 066 611.96
Cancellation of earnings financial re-balancing
Current fiscal effect
Deferred Tax Establishment:
Complete adjustment to shareholders’ equity
Shareholders’ equity according to NCRF
-98 417.44
8 921 377.98
46 804 108.73
69 578 385.97
The reconciliation of the net profit of the fiscal year ended on December 31, 2009, according to the POC
and SNC is as follows:
Reconciliation of Reported Earnings
According to the previous accounting banchmark
Derecognition of pre-operating costs
Derecognition of pre-operating earnings
Derecognition of earnings re-balance
Change of the intangible assets’ service life by the end of the concession
Derecognition of repairs capitalised within the period
31/12/2009
8 005 844.70
392 124.91
-1 091 491.20
-348 501.60
12 481 074.33
-1 147 125.75
10 286 080.69
Current Fiscal Effect
-2 338 338.30
Deferred Tax Establishment:
Depreciation not accepted for tax purposes
Total effect
According to NCRF
708 578.56
8 656 320.95
16 662 165.65
Annual Report and Accounts
2010
61
Arising from the indicated adjustments, the statements of the fiscal year ended on December 31, 2009,
restated according to the SNC, is as follows:
December 31. 2009
Income and Expenses
Sales and services provided
POC
NCRF conversion NCRF conversion
adjustments
reclassification
NCRF
113 245 584.47
-1 091 491.20
–
348 501.60
-348 501.60
–
–
Supplies and services received
-4 165 334.16
-1 147 125.75
–
-5 312 459.91
Costs with personnel
-2 523 257.41
Operating grants
112 154 093.27
-2 523 257.41
–
–
Other income and gains
390 761.97
–
93 232.31
483 994.28
Other expenses and losses
-939 498.86
392 124.91
-177 955.03
-725 328.98
Earnings before depreciation. financing expenses and taxes
106 356 757.61
-2 194 993.64
-84 722.72
104 077 041.25
Depreciation and amortisation expenses/reversals
-46 173 187.14
12 481 074.33
–
-33 692 112.81
Operating profit (before financing expenses and taxes)
60 183 570.47
10 286 080.69
-84 722.72
70 384 928.44
1 199 503.43
–
-11 206.23
1 188 297.20
-49 374 518.77
–
69 982.09
-49 304 536.68
Received interests and similar income
Borne interests and similar expenses
Extraordinary profit (loss)
-25 946.86
–
25 946.86
–
Earnings before taxes
11 982 608.27
10 286 080.69
–
22 268 688.96
Income tax for the fiscal year
-3 976 763.57
-1 629 759.74
–
-5 606 523.31
Net profit for the fiscal year
8 005 844.70
8 656 320.95
–
16 662 165.65
29. Other Information
Legal proceedings brought by third parties and brought against third parties
On December 31, 2010, the Company was involved in a number of lawsuits brought against it by third
parties, and some lawsuits brought by the Company against third parties.
Regarding these proceedings, considering the experience arising from previous years and the data
known on this date, legal counsel believes that there are strong probabilities of winning the cause in the
actions set against the Company.
Accordingly, the Board did not create any provisions for legal suits in progress.
Arbitration Proceedings
On December 31, 2010, we were preparing the arbitation proceedings which will settle pending issues
regarding the execution of the contracts established between Scutvias and Galp regarding the Service
!REAOF6ILA6ELHADE2˜DáOANDTHE3ERVICE!REAOF'UARDA
These proceedings, essentialy stemming from different interpretations of the concession agreements,
will be subject to an arbitration ruling. A decision is expected to be issued during the year 2011.
Therefore, under this proceedings, Galp wishes to be compensated for several expenses globally
amounting to 639.906,35 Euros.
Also following the execution of contracts established between Scutvias and Galp, Scutvias charged the
latter with a series of penalties and interests on arrears. The fairness of the above measure will also be
62
Annual Report and Accounts
2010
judged by said Arbitral Tribunal. The overall amount of said penalties and interets on arrears is EUR
2.860.052,98.
Scutvias strongly believes that the Arbitral Tribunal’s decision will be favourable, and that it therefore has
the right to be compensated for said amount. It is because of such a conviction that said amount was
recognised as a receivable asset.
In any case, and given the issue’s complex nature, it is completely impossible to determine the probabilities of success. Therefore, and to be prudent, we chose not to represent this amount as an income
of the 2010 fiscal year.
Certified Accountant
The Board of Directors
LEGAL CERTIFICATION OF ACCOUNTS
AND AUDIT REPORT
64
Annual Report and Accounts
2010
Certificação Legal das Contas
Introduction
1. We have examined the annual financial statements of SCUTVIAS – AUTOESTRADAS DA BEIRA
INTERIOR, S.A., comprising the balance sheet as at 31 December 2010, (which reflects a total of
EUR 758.959.404 and total shareholders’ equity of EUR 67.988.911, including a net profit of EUR
10.038.020), the income statement by nature, the statement of cash flows and the statement of changes in equity for the year then ended, and the respective notes.
Responsibilities
2. The Board of Directors is responsible for the preparation of financial statements which give a true and
fair view of the Company’s financial position, the results of its operations, the changes on its equity
and its cash flows. This responsibility also extends to the adoption of appropriate accounting policies
and criteria, as well as the maintenance of a proper internal control system.
3. Our responsibility is to express a professional and independent opinion based on our audit of the
above-mentioned financial statements.
Scope
4. Our audit was carried out in accordance with the Auditing Standards (“Normas Técnicas e Directrizes
DE2EVISáO!UDITORIAvISSUEDBYTHE0ORTUGUESE)NSTITUTEOF3TATUTORY!UDITORS/RDEMDOS2EVISOres Oficiais de Contas”), which require the audit to be planned and performed with the objective of
obtaining reasonable assurance about whether the financial statement are free of material misstatement. To this end, our audit included:
– examining, on a test basis, evidence to support the amounts disclosed in the financial statements
and assessing of the reasonableness of estimates, based on judgements and criteria defined by the
Board of Directors, used in their preparation;
– assessing the appropriateness of the accounting policies adopted and their disclosure, taking into
account the circumstances;
– verification of the applicability of the going concern principle; and
– a consideration of the adequacy of the overall presentation of the financial statements.
5. Our examination also included the verification of the accordance of the financial information enclosed
in the Board of Directors’ Report with the financial statements.
6. We believe that the audit performed by us provides an acceptable basis for expressing our opinion.
Annual Report and Accounts
2010
65
Opinion
7. In our opinion, the above mentioned financial statements give, in all material respects, a true and fair
view of the financial position of SCUTVIAS – AUTOESTRADAS DA BEIRA INTERIOR, S.A. as at 31
December 2010, the results of its operations, the changes on its equity and its cash flows for the year
then ended, in accordance with the accounting principles generally accepted in Portugal.
Emphasis
8. Without affecting the opinion expressed in the previous paragraph, we would like to call your attention
to the following:
8.1 As disclosed in Note 2 to the financial statements, the Company has adopted for the first time in
2010 the new Portuguese accounting framework (SNC), including the corresponding accounting
and financial reporting standards (NCRF). In the transition process of the previously adopted accounting standards (POC) to the NCRF, the Company followed the requirements set forth in NCRF
n&IRSTTIMEADOPTIONOFTHE.#2&h!DOP½áOPELAPRIMEIRAVEZDAS.#2&vBEINGTHEBTRANSITION
date reported to 1 January 2009, so that the financial information referring to that date and to 2009,
previously presented in accordance with the POC, was restated to the NCRF, for comparative purposes. In Note 26 is disclosed the required information regarding the transition process into the NCRF.
Report on Other Legal Requirements
9. It is also our opinion that the information included in the Board of Directors’ Report is consistent with
the annual financial statements.
Linda-a-Pastora, 28 March 2011
MARIQUITO, CORREIA & ASSOCIADOS, SROC
Represented by:
António Francisco Escarameia Mariquito – ROC
66
Annual Report and Accounts
2010
Audit Report
Introduction
1. We have examined the financial statements of SCUTVIAS – Autoestradas da Beira Interior, S.A.
(“the Company”), which comprise the balance sheet as of 31 December 2010, that presents a total of 758,959,404 Euros and shareholders’ equity of 67,988,911 Euros, including a net income of
10,038,020 Euros, the statements of profit and loss by nature, of changes in shareholders’ equity and
of cash flows for the year then ended and the corresponding notes.
Responsibilities
2. The preparation of financial statements that present a true and fair view of the financial position of the
Company and the results of its operations, changes in shareholders’ equity and its cash flows, as well
as the adoption of adequate accounting principles and criteria and the maintenance of appropriate
systems of internal control are the responsibility of the Company’s Board of Directors. Our responsibility is to express a professional and independent opinion on these financial statements, based on
our examination.
Scope
3. Our examination was performed in accordance with the auditing standards (“Normas Técnicas e as
Directrizes de Revisão/Auditoria”) issued by the Portuguese Institute of Statutory Auditors (“Ordem
dos Revisores Oficiais de Contas”), which require that the examination be planned and performed
with the objective of obtaining reasonable assurance about whether the financial statements are free
of material misstatement. This examination included verifying, on a test basis, evidence supporting
the amounts and disclosures in the financial statements and assessing the significant estimates, based on judgements and criteria defined by the Board of Directors, used in their preparation. This examination also included assessing the adequacy of the accounting principles used and their disclosure,
taking into consideration the circumstances, verifying the applicability of the going concern concept
and assessing the adequacy of the overall presentation of the financial statements. We believe that
our examination provides a reasonable basis for expressing our opinion.
Annual Report and Accounts
2010
67
Opinion
4. In our opinion, the financial statements referred to in paragraph 1 above, present fairly, in all material
respects, the financial position of SCUTVIAS – Autoestradas da Beira Interior, S.A. as of 31 December 2010, and the results of its operations, changes in shareholders’ equity and its cash flows for the
year then ended, in conformity with generally accepted accounting principles in Portugal.
Emphasis
5. As disclosed in Note 2 to the financial statements, the Company adopted for the first time in 2010,
THENEWGENARALLYACCEPTEDACCOUNTINGPRINCIPLESFOR0ORTUGALh3ISTEMADE.ORMALIZA½áO#ONTABIL¤Stica” or “SNC”), including its conceptual corresponding accounting and financial reporting standards
(“NCRF”) and presentation requirements. In this first time adoption the Company followed the requirements of NCRF 3 – First time adoption of accounting and financial reporting standards, with transition
date set at 1 January 2009. Consequently, financial information for 2009 that had been previously
presented in accordance with previous gaap has been restated to NCRF for comparative purposes.
Lisbon, 24 March 2011
DELOITTE & ASSOCIADOS, SROC S.A.
Represented by
Carlos Alberto Ferreira da Cruz
SCUTVIAS - AUTOESTRADAS DA BEIRA INTERIOR, S.A.
Head Office: Praça de Alvalade, 6 - 13.º - 1700-036 Lisboa – Phone: 217 826 200 – Fax: 217 826 190
Share Capital: 49,200,000€ – VAT: 504 611 917
Registed at the Lisbon Registry of Companies under n.º 11342