NH Consolidated financial statements 2006 15 for 2006 and 2005 (Euros 000s) STATEMENTS OF CHANGES IN CONSOLIDATED NET EQUITY Balances at 31 December 2004 239,066 91,784 26,791 141,756 37,587 116,883 990 2,663 (2,788) - - 55,203 709,935 137,266 847,201 Profit for the year 2005 - - - - - - - - - - - 62,243 62,243 8,170 70,413 Translation differences - - - - - - - - 20,609 - - - 20,609 - 20,609 Cash flow hedges - - - - - 959 - - 1,280 - 2,239 (23,117) (20,878) Revenues and expenses recognised in the period - - - - - 959 - - 20,609 1,280 - 62,243 85,091 (14,947) 70,144 Effect of first application of IAS 32 and 39 (Note 2.3) - 37,587 - - (37,587) - - - - 3,492 (259) - 3,233 - 3,233 Distribution of profit/(loss) - - To Reserves - - 2,086 (2,753) - 32,475 (522) 5,988 - - - (37,274) - - - - To Dividends - - - - - - - - - - - (17,929) (17,929) (2,637) (20,566) Distribution of reserves - - - (11,953) - - - - - - - - (11,953) - (11,953) Variation in own shares - 2,251 - - - - - - - - (42) - 2,209 - 2,209 Balances at 31 December 2005 239,066 131,622 28,877 127,050 - 150,317 468 8,651 17,821 4,772 (301) 62,243 770,586 119,682 890,268 Profit for the year 2006 - - - - - - - - - - - 62,448 62,448 (898) 61,550 Translation differences - - - - - - - - (23,720) - - - (23,720) (255) (23,975) Cash flow hedges - - - - - - - - - (2,672) - - (2,672) (2,672) Revenues and expenses recognised in the period - - - - - - - - (23,720) (2,672) - 62,448 36,056 (1,153) 34,903 Capital increase 24,131 134,847 - - - - - - - - - - 158,978 - 158,978 Distribution of profit 2005 - To Reserves - - - (21,487) - 84,813 (56) (1,027) - - - (62,243) - - - Distribution of reserves - - - (31,080) - - - - - - - - (31,080) (2,042) (33,122) Variation in own shares - 103 - - - - - - - - (3,203) - (3,100) (3,100) Changes in the scope of consolidation - - - - - - - - - - - - - 142,516 142,516 Acquisition of minority interests - (76,830) - - - - - - - - - - (76,830) (82,325) (159,155) Balances at 31 December 2006 263,197 189,742 28,877 74,483 - 235,130 412 7,624 (5,899) 2,100 (3,504) 62,448 854,610 176,678 1,031,288 Share Capital Share Premium Legal Reserve Reserves of the Parent Company Reserves in companies consolidated by Reserve for own shares Proportional consolidation Full consolidation Voluntary Reserve Translation differences Equity valuation adjustments Own shares Profit Attributable to the Parent Company Total Minority Interests Total Equity The equity method Notes 1 to 30 of the Report and Appendices I/III form an integral part of the statements of changes in consolidated net equity for the years ended 31 December 2006 and 2005. The Statement of changes in consolidated net equity for the year ended on 31 December 2005 is presented solely for purposes of comparison.