HOCHTIEF stock in the maelstrom of globally falling stock markets
HOCHTIEF stock at EUR 35.74 at close of year
HOCHTIEF continues to be listed in Dow Jones Sustainability Index
Proposed dividend of EUR 1.40 per share

Stock market shaped by financial crisis

In 2008, stock markets were hit by the effects of the financial crisis and fears of recession. In the first half of the year, apprehension of a recession in the USA and the sharp rise in oil prices in particular caused prices to fall. In the second half of 2008, the financial crisis spread throughout the entire global financial sector, culminating in various financial institutions declaring bankruptcy or being (partially) nationalized. Following the turbulence on the international financial markets, the German Prime All Share index stooped to an annual low of 1501.95 points on November 21, 2008, down 50.2 percent compared with its value at the end of 2007. The fall in prices was temporarily slowed by the announcement of government assistance for the financial sector and certain other industries, as well as aggressive interest rate cuts by central banks. But market uncertainty was clearly manifest in the high volatility of German listings. The international stock markets showed a similar picture. The value of the US S&P 500 dropped 38.5 percent in the course of the year, the Euro STOXX 50 lost 44.4 percent, and the Australian All Ordinaries 43 percent.

Financial sector companies and companies sensitive to economic trends were hit particularly hard by falling share prices. Moreover, construction industry clients faced diminishing availability of loans and rising costs of financing. The slowdown in growth in emerging economies, which previously acted as growth drivers for the industry, put a strain on the industry's outlook. In light of this, the DJ EURO STOXX Construction & Materials Index, which reflects the share price performance of the biggest companies in the construction industry, tumbled by 48.1 percent.

HOCHTIEF stock: Historical performance

Key figures

		2008	2007
Number of shares	Million	70.0*	70.0*
Of which issued	Million	63.0*	70.0*
Market capitalization	EUR million	2,501.8*	6,440.0*

High	EUR	88.65	96.50
Low	EUR	20.26	51.18
Close	EUR	35.74	92.00
Shares traded (average per day on Xetra)		653,300	556,600
Dividend per share	EUR	1.40	1.30
Total dividends	EUR million	98.0	91.0
Earnings per share	EUR	2.52	2.07

*as of year-end

Key data on HOCHTIEF stock


ISIN	DE 0006070006
Stock symbol	HOT
Ticker symbol	Reuters: HOTG:DE, Bloomberg: HOT GY
Trading segment at Frankfurt	Prime-Standard

In stark contrast to the company's very positive operating performance, the value of HOCHTIEF stock fell by EUR 56.26 over the course of the year within the context of the macroeconomic environment and in light of the turmoil on the stock markets and changes in HOCHTIEF's ownership structure, closing 61.2 percent down. In mid-October 2008, HOCHTIEF stock dipped to an annual low of EUR 20.26. However, it regained ground by the end of the year to close at EUR 35.74.

Indexed performance of HOCHTIEF stock in 2008

As HOCHTIEF is included in the MDAX, this index acts as its benchmark. It comprises the 50 largest shares from more classic sectors, after the DAX stocks, and sustained a loss of 43.2 percent as of the end of the year.

Thus despite increasing operating results and the outlook for the reporting year – which was raised twice in the course of the fiscal year – HOCHTIEF stock was worse affected by sales than corresponding benchmark indices in the reporting year. HOCHTIEF's market capitalization therefore does not adequately reflect its positive business performance. Over the last few years, we have rigorously pursued our life cycle management strategy. We have invested in profitable, construction-related services and concessions business. Hence, we cover the entire life cycle of infrastructure projects, real estate and facilities. The balanced mix of business activities is advantageous for HOCHTIEF. Furthermore, HOCHTIEF also has a successful international presence in the key marketplaces. The Group consequently benefits more than most from growth opportunities around the world, some of which result from government economic stimulus programs. The fact that HOCHTIEF raised its targets for fiscal year 2008 twice during the year and then met them comfortably confirms the success of HOCHTIEF's business model.

Absolute performance and trading volumes of HOCHTIEF stock in 2008

The average daily trading volume in the reporting period was 653,300 shares (2007: 556,600 shares), an increase of 17.4 percent (2007: 41.4 percent). This puts the annual share turnover based on a total number of shares outstanding of 63 million at 260 percent.

HOCHTIEF is listed in the Prime Standard segment on Frankfurt Stock Exchange and is a component of the MDAX index, in which it ranked fourth with a weighting of 3.79 percent (2007: sixth).

Weighting of HOCHTIEF stock (December 31, 2008)

Weighting Rank Stock in index

MDAX 3.79 4 50

Dow Jones Euro STOXX 0.09 180 318

Dow Jones Construction & Material 2.39 9 21

Dow Jones STOXX Sustainability 0.09 125 162

Dow Jones Euro STOXX Sustainability 0.16 67 83

MSCI World 0.01 1,244 1,693

	Weighting	Rank	Stock in index
MDAX	3.79	4	50
Dow Jones Euro STOXX	0.09	180	318
Dow Jones Construction & Material	2.39	9	21
Dow Jones STOXX Sustainability	0.09	125	162
Dow Jones Euro STOXX Sustainability	0.16	67	83
MSCI World	0.01	1,244	1,693

HOCHTIEF's eligibility for inclusion in the respected Dow Jones Sustainability Indexes was reaffirmed for 2008. We are the only German construction services company to be incorporated in these indices. This rewards our commitment to sustainability in the interests of economy, ecology and social responsibility. In this way, HOCHTIEF stock continues to appeal to investors who structure their portfolios in compliance with strict sustainability criteria.

Dividends

Dividends grant our stockholders a share in the company's earnings performance. HOCHTIEF Aktiengesellschaft's Executive Board and Supervisory Board propose paying a dividend of EUR 1.40 per share (2007: EUR 1.30) for the 2008 fiscal year. This means HOCHTIEF will have increased its dividends by just under 17 percent a year for five consecutive years. This expresses our confidence in HOCHTIEF's future business performance.

Based on the closing price of EUR 35.47 at year-end, the proposed dividend gives a dividend yield of 3.9 percent (2007: 1.4 percent).

Stock buy-back

On October 21, 2008, HOCHTIEF announced its intention to buy up to almost five percent of its own shares on the stock market between October 22, 2008 and March 31, 2009 as part of a stock buy-back. In addition, HOCHTIEF Pension Trust e.V. also decided to buy up to five percent of HOCHTIEF's shares. The stock buy-back program is based on the authorization granted at the General Shareholders' Meeting on May 8, 2008, to buy back shares amounting to up to ten percent of the company's capital stock by November 7, 2009. The program was successfully completed on December 15, 2008. As of December 31, 2008, the company held 9.9996 percent of its own shares. A detailed report on the stock buy-back program can be found in the Notes to the Consolidated Financial Statements on page 160.

Ownership structure

At the end of 2008, there were 70,000,000 issued shares. Of these shares, 25.08 percent were held by ACS Actividades de Construcción y Servicios and 9.9996 percent by HOCHTIEF as treasury stock. The major investor Oleg Deripaska, who owned 9.99 percent of HOCHTIEF's stock through his holding company Rasperia Trading, surrendered his shares in full in the course of 2008

Ownership structure (as of December 2008)

*ACS ACTIVIDADES DE CONSTRUCCIÓN Y SERVICIOS S.A., Madrid
**On Feb. 25, 2008, ACS announced that it had acquired an additional 4.9 percent of HOCHTIEF stock as of Dec. 31, 2007 by way of share options.
***As of Dec. 15, 2008 (stock buy-back program): Of the 9.9996 percent (6,999,703 shares), 4.9999 percent (corresponding to 3,499,950 shares) is held by HOCHTIEF Pension Trust e.V.

Accordingly, and by the definition of Deutsche Börse AG, free float HOCHTIEF stock amounted to 64.9204 percent as of December 31, 2008. This definition includes all shares except those held by ACS Actividades de Construcción y Servicios and treasury stock.

In terms of regions, investors in Spain and Portugal accounted for just over 25 percent of shares, primarily due to the Spanish major shareholder. Shareholders in Germany held 25 percent of capital stock, North American shareholders some 20 percent and UK and Irish shareholders 18 percent.

Regional distribution (as of December 2008)

Analyst recommendations

As of the end of 2008, the company was covered by 24 analysts (2007: 19). Eighteen of them rated HOCHTIEF stock at "buy" (2007: ten) as of the year-end, and four at "hold" (2007: five). Two analysts placed HOCHTIEF at "sell" (2007: four). Thus the large majority of analysts consider the medium and long-term development of HOCHTIEF to be positive.

As of the end of 2008, analysts covering us set our target share price on average at EUR 53.46, and thus 49.6 percent higher than the closing price as of December 31, 2008.

Investor relations

Our investor relations work centers on transparent, full and timely communication with the capital market about all events relevant to the market. We are committed to continue increasing trust in the quality of our management and to facilitate a fair assessment of the company's situation.

For this reason, we place great emphasis on intensive contact with institutional and private investors. In the course of 2008, we presented our company's strategy at 26 roadshows and eleven investor and analyst conferences. The Executive Board also used two conference calls for timely reporting on key current developments of our company.

Direct contact with the managers in charge within our company as well as on-the-spot visits to projects constitute an integral part of our communications with investors. For this reason, HOCHTIEF continued its series of Capital Markets Days in October 2008. These events furnish an opportunity for capital market participants to learn in detail about selected business activities. At the two-day 2008 Capital Markets Day in Hamburg, we presented, for example, the HOCHTIEF Real Estate division with the related activities from aurelis Real Estate and the networking of this corporate division within the HOCHTIEF Group.

All annual and interim reports, the latest analyst forecasts and all presentations used, including those used at the Capital Markets Days, are published on our website.

To contact HOCHTIEF Investor Relations or see the events planned in the financial calendar, please visit www.hochtief.com/investor-relations.

HOCHTIEF Stock