31. Current income tax liabilities
The EUR 19,303,000 (2007: EUR 9,989,000) in current income tax liabilities comprises amounts payable to domestic and foreign revenue authorities.Other disclosures
32. Undiluted and diluted earnings per share
Undiluted earnings per share are calculated by dividing the consolidated net profit attributable to the Company's stock by the average number of shares in circulation. This indicator can become diluted as a result of potential shares (mainly stock options and convertible bonds). HOCHTIEF's share-based payment arrangements do not have a dilutive effect on earnings. Consequently, diluted and undiluted earnings per share are identical.
| (EUR thousand) | 2008 | 2007 |
|---|---|---|
| Consolidated net profit (EUR thousand) | 175,075 | 140,696 |
| Number of shares in circulation in thousands (weighted average) | 69 353 | 67 868 |
| Earnings per share (EUR) | 2,52 | 2,07 |
| Dividend per share (EUR) | 1,30 | |
| Proposed dividend per share (EUR) | 1,40 |
33. Reporting on financial instruments
Financial instruments include financial assets and liabilities and contractual claims and obligations relating to exchanges and transfers of financial assets. Financial instruments can be derivative or non-derivative.Non-derivative financial assets mostly comprise cash and cash equivalents, marketable securities, trade receivables and other financial assets. Marketable securities are carried at fair value. The fair values of available-for-sale financial assets are established with reference to market prices or determined using accepted valuation methods.
Non-derivative financial liabilities are mostly current liabilities measured at cost.
Holdings of non-derivative financial instruments are carried on the Balance Sheet; the maximum risk of loss or default is equal to total financial assets. Any such risk identified in respect of financial assets is accounted for with an impairment loss.
Risk management
All financial activities in the HOCHTIEF Group are conducted on the basis of a Group-wide financial framework directive. This is fleshed out by individual, function-specific operating directives on issues such as currency and collateral management. These lay down principles for dealing with the various classes of financial risk.Management of liquidity risk
HOCHTIEF uses predominantly centralized liquidity structures – in particular cash pooling – to pool liquidity at Group level, among other things to avoid liquidity bottlenecks at the level of individual entities. The central liquidity position is calculated at regular intervals and planned using a bottom-up process. Liquidity planning is supplemented by stress scenarios and incorporated in the active management of HOCHTIEF's securities holdings and loan portfolio.The tables below show maximum payments as of the balance sheet date. The tables show the worst-case scenario for HOCHTIEF, i.e. the earliest possible contractual payment date in each case. Creditors' rights of termination are taken into account. Foreign currency items are translated using the closing rate as of the balance sheet date. Interest payments on variable rate items are translated uniformly using the last interest rate fixed prior to the balance sheet date. Both primary and derivative financial instruments (for example, forwards and interest rate swaps) are taken into account. Credit facilities granted but not yet drawn in their full amount are also included.
