Annual Report - EDP

notes to the consolidated EDP - and Energias company de Portugal, financial S.A. statementsfor the Notes years to the ended Consolidated 31 december and Company 2012 Financial and Statements 2011for the years ended 31 December 2012 and 201151. EDP BRANCH IN SPAINThe aim of "EDP - Energias de Portugal - Sociedade Anónima, Sucursal en España" is to manage and coordinate the energy interests of subsidiaries depending fromEDP Group in Spain, organised through managing and monitoring structures, in order to ensure the maximum synergy and value creation in the operations andactivities in Spain, also assuming itself as an organizational platform to lead the Iberian integration of shared and support services (back and middle offices). On thisbasis, the majority interests in EDP Renováveis, S.A., EDP Servicios Financieros España, S.A. and HC Energia (Hidroeléctrica del Cantábrico S.A.), as well as the indirectmajority interest in NG Energia (Naturgás Energia Grupo S.A.), are directly allocated to the assets of EDP Sucursal.The Spanish branch of EDP has offices in Madrid and Oviedo. From a formal and legal point of view, the representation of the Spanish branch of EDP before thirdparties is ensured through the permanent representatives, which are members of the Executive Board of Directors of EDP, mandated for that purpose.The structure of direction, coordination, management and representation of the Spanish branch of EDP is composed of an Executive Committee, a ManagementCommittee and direct representation on iberian ambit EDP Management Committee.The Executive Committee of EDP is composed essentially of five permanent representatives, a Corporate General Director (Group Controller for the activities in Spain)and by first line directors of the business units in Spain, which constitute the main direction and coordination body of the Branch, being responsible for thecoordination of the activities of the permanent representatives and of the Management Committee. The Management Committee is chaired by the Corporate GeneralDirector and is composed by the natural extension of the Departments of the Corporate Centre of EDP, namely the Department of M&A ("Direcção de Análise deNegócios"), Department of Legal Affairs ("Direcção de Assessoria Jurídica"), Department of Internal Audit ("Direcção de Auditoria"), Department of Spanish Tax Matters("Direcção de Fiscalidade Espanhola"), Department of Financial Management ("Direcção de Gestão Financeira"), Department of Commercial Shared Services ("Direcçãode Serviços Partilhados Comerciais"), Department of Corporate Shared Services ("Direcção de Serviços Partilhados Corporativos") and IT Department ("Direcção deSistemas de Informação") and "Share EDP Project" ensuring in a homogeneous way the functions of these departments transversally to the Spanish territory. Lastly, theSpanish branch of EDP has direct representation on iberian ambit EDP Management Committee particularly the Energy Planning Committees, Price and Volume,Markets, Distribution Networks, Commercial and Production.The condensed statement of financial position of the Branch as at 31 December 2012 and 2011 is analysed as follows:EDP BranchThousands of Euros Dec 2012 Dec 2011Investments in subsidiariesEDP Renováveis, S.A. 2,939,889 2,939,889Hidroeléctrica del Cantábrico, S.A. 1,981,798 1,981,798EDP Servicios Financieros España, S.A. 482,695 481,695EDP Investments and Services, S.L. 281,854 -Other 60 60Deferred tax assets 54,636 65,859Other debtors and others assets 129,006 79,794Total Non-Current Assets 5,869,938 5,549,095Trade receivables 10,985 13,573Debtors and other assets 325,212 387,595Tax receivable 43,943 37,306Cash and cash equivalents 361 11,649Total Current Assets 380,501 450,123Total Assets 6,250,439 5,999,21852. ENVIRONMENTAL MATTERSEquity 2,515,135 2,269,465Trade and other payables 3,006,023 2,436,252Total Non-Current Liabilities 3,006,023 2,436,252Trade and other payables 726,998 1,293,150Tax payable 2,283 351Total Current Liabilities 729,281 1,293,501Total Liabilities 3,735,304 3,729,753Total Equity and Liabilities 6,250,439 5,999,218Expenses of an environmental nature are those identified and incurred to avoid, reduce or repair damage of an environmental nature resulting from the company'snormal activity.Expenses of an environmental nature are recorded as expenses for the year, except if they qualify for capitalization under the terms of IAS 16.252A World Full Of Energy