Investors

Financial Information

Introduction

Each of Balfour Beatty’s PPP/PFI contracts ("concessions") is signed between a public sector Authority and a private sector project company, whose shareholders comprise Balfour Beatty and other investors, except for the Sunderland, South Tyneside, Derby, Knowsley and CNDR concessions which are wholly owned by Balfour Beatty.

As a result of provisions in each concession's Shareholders’ Agreement requiring unanimity on all significant matters, Balfour Beatty cannot by itself control these concessions.

The Balfour Beatty Group therefore accounts for its investment in these concessions by taking to profit and loss its share of profit after tax of each concession, in line with International Accounting Standard 28, Accounting for Investments in Associates and International Accounting Standard 31, Financial Reporting of Interests in Joint Ventures.

The consolidated balance sheet of the Balfour Beatty Group includes Balfour Beatty’s share of the net assets of each project company.

The full profit and loss and balance sheet for Sunderland Street Lighting, South Tyneside Street Lighting, Derby Street Lighting, Knowsley Schools and CNDR are included within the Balfour Beatty group accounts for 2009, in line with International Accounting Standard 27, Consolidated Financial Statements and Accounting for Investments in Subsidiaries.

Summary of PPP/PFI Concession Results £m