Annual Report - EDP

notes to the consolidated EDP - and Energias company de Portugal, financial S.A. statementsfor the years ended 31 december 2012 and 2011Notes to the Consolidated and Company Financial Statementsfor the years ended 31 December 2012 and 2011The commitments relating to short and medium/long term financial debt, finance lease commitments and other long term commitments (included in the consolidatedstatement of financial position) and other liabilities relating to purchases and future lease payments under operating leases (not included in the consolidatedstatement of financial position) are disclosed, as at 31 December 2012 and 2011, by maturity, as follows:Dec 2012Capital outstanding by maturityLess From From Morethan 1 1 to 3 3 to 5 than 5Thousands of Euros Total year years years yearsShort and long term financial debt (including falling due interest) 23,838,923 4,265,240 8,312,603 6,176,972 5,084,108Finance lease commitments 8,606 3,549 4,325 732 -Operating lease commitments 977,501 53,430 88,047 73,940 762,084Purchase obligations 35,528,350 4,217,391 7,027,214 5,454,492 18,829,253Other long term commitments 2,149,686 249,086 475,500 433,896 991,20462,503,066 8,788,696 15,907,689 12,140,032 25,666,649Dec 2011Capital outstanding by maturityLess From From Morethan 1 1 to 3 3 to 5 than 5Thousands of Euros Total year years years yearsShort and long term financial debt (including falling due interest) 22,275,659 3,478,927 7,230,868 6,106,545 5,459,319Finance lease commitments 7,882 3,425 4,059 398 -Operating lease commitments 1,002,777 71,529 101,127 73,131 756,990Purchase obligations 32,376,753 5,152,650 8,005,283 5,214,648 14,004,172Other long term commitments 2,419,855 265,182 523,169 485,601 1,145,90358,082,926 8,971,713 15,864,506 11,880,323 21,366,384The Group’s contractual commitments shown above relate essentially to agreements and commitments required for regular business activities. Specifically, themajority of the commitments are established to guarantee adequate supply of fuel and energy to its customers in the Europe, United States of America and Brazil aswell to comply with medium and long term investment objectives of the Group.The short and long term debt corresponds to the balance of borrowings and related falling due interest, contracted by the Group with bank entities, non-convertiblebonds, commercial paper and other borrowings. Interest was calculated based in interest rates in force at the period.Falling due finance lease commitments relate to Property, plant and equipment acquired by the Group under finance lease contracts. These amounts include capitaloutstanding and interests.Purchase obligations include essentially obligations of long term contracts relating to the supply of products and services in the normal course of the Group’soperations. Prices defined under forward contracts are used in estimating the amount of contractual commitments.Other long term commitments relate essentially to reorganisation plans established in prior years, as well as to Group’s liabilities relating to pension and Medicalplans and other benefits, classified as provisions in the consolidated statement of financial position (note 36).As at 31 December 2012, the EDP Group has the following liabilities/rights arising from call and put options on investments:- Put option of Cajastur over EDP for 3.13% of the share capital of HC Energia, this option can be exercised until 31 December 2025;- EDP holds, through its subsidiary EDP Renewables Europe, S.L., a call option over Cajastur for “Quinze Mines” share capital (51% of total share capital). Cajastur hasan equivalent put option over EDP. This options can be exercised between 17 July 2014 and 17 July 2016, being the price of exercising the option determined by aninvestment bank valuation process;- EDP holds, through its subsidiary EDP Renewables Europe, S.L., a call option over the shares held by Cajastur for the companies "Sauvageons", "Le Mee" and "PetitePiece" (51% of total share capital). Cajastur has an equivalent put option over EDP. This options can be exercised between 1 January 2013 and 31 December 2014,being the price of exercising the option determined by an investment bank valuation process;- EDP holds, through its subsidiary EDP Renewables Europe, S.L., a call option of the remaining 6.48% of the share capital of EDP Renewables Italia, with an exerciseprice based on an independent process evaluation conducted by an independent expert. Energia in Natura, S.R.L. holds a put option for 6.48% of the share capital ofEDP Renewables Italia, whose exercise price corresponds to 85% of the market value of this participation. The exercise period of the options is 2 years after occurenceof one of the following events: Fifth anniversary of the execution of the shareholders agreement (27 January 2015); When EDP Renewables Italy build, develop and operate 350 MW in Italy.- EDP holds, through its subsidiary EDP Renewables Europe, S.L., a call option over the remain shareholders of Re Plus (WPG, Galilea and Grant Partners) for 10% of itsshare capital. The price of exercising these options is 7,500 thousands of Euros. The options can be exercised (i) if a change occur in the shareholding structure of theremaining shareholders of Re Plus and (ii) always before the last project starts in operation;- EDP holds, through its subsidiary EDP Renewables Europe, S.L., a put option of 15% of the share capital of Rowy, over the other shareholders. The exercise price is80% of equity value with a cap of 5,000 thousands of Euros. The exercise period is the earlier of (i) two years following the begining of construction date or (ii) 31December 2019;- EDP holds, through its subsidiary EDP - Gestão da Produção de Energia, S.A., a call option of 2.67% of the share capital of Greenvouga and their supplementarycapital on Martifer Renewables, S.A. exercisable at any time. Moreover, Martifer Renewables, S.A., holds a put option of 2.67% of the share capital of Greenvouga andtheir supplementary capital on EDP - Gestão da Produção de Energia, S.A., that can only be exercised within one year from the date of issuance of the license ofRibeirado-Ermida hydroelectric plants. The option can be exercised until 1 February 2015. The stock price and the price of supplementary capital, in the event ofexercise of the options listed, corresponds to their nominal value plus an equity component possible in the amount of 1,750 thousands of Euros;- EDP holds, through its subsidiary EDP Renewables Europe, S.L., a call option of the remaining 40% of the share capital of J&Z Wind Farms SP. ZO.O., whose exerciseprice corresponds to 90% of the market value of this participation. This option can be exercised between 3 and 5 years after the start of contruction works of the firstpark.240A World Full Of Energy