HOCHTIEF Annual report 2008 - Information for our Shareholders

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HOCHTIEF's Concessions Business

Additions to PPP portfolio
Stage set for further international expansion
Infrastructure projects prove largely stable
HOCHTIEF Concessions formed

HOCHTIEF is geared to sustainable, profitable growth. A key part in this growth strategy is played by our intensive and continuously expanding activities in the concessions and operation business. These activities include the airport and public-private partnership (PPP) segments served by the HOCHTIEF Concessions division.

Recognizing the growing importance of the concessions business to HOCHTIEF, we created a new HOCHTIEF Concessions division in the first quarter of 2008. The division is presided over by HOCHTIEF Concessions GmbH and contains HOCHTIEF AirPort GmbH and HOCHTIEF PPP Solutions GmbH. It thus brings together our activities in the airports, toll roads, public buildings and renewable energies segments. The new structure allows closer cooperation and the reaping of synergies in market development, business planning, special operator responsibilities and other technical areas – making us a strong partner for our clients.

HOCHTIEF further expanded its portfolio in the concessions business during the year. The expansion is based on:

The expertise and innovative strength we have shown time and again in designing, financing, building and operating complex projects, which means we can optimize and provide services at every stage of the project life cycle
Our experience with concessions and operation projects worldwide
Our closely linked international network and cross-border transfer of know-how, which enable us to reap synergies
Our excellent reputation as one of the world's leading construction services providers.

Structure of HOCHTIEF's concessions business

At the end of 2008, HOCHTIEF held stakes in six airports, eight toll roads, fifteen public building projects and two renewable energy projects. Further interests are owned by our subsidiary Leighton.** Our company consequently occupies a globally leading position in the market for privately financed infrastructure projects.

The following information relates exclusively to the project portfolios of HOCHTIEF AirPort and HOCHTIEF PPP Solutions and their valuation.

HOCHTIEF AirPort***

HOCHTIEF became established in this dynamic market as early as the mid-1990s with the award in Athens of the world's first BOOT concession for an airport, secured among other things by virtue of our airport construction expertise. We have since added interests in Budapest, D�sseldorf, Hamburg, Sydney and Tirana airports. This portfolio of attractive airports with strong prospects for the future makes us one of the world's largest private and independent airport investors and managers. HOCHTIEF AirPort only enters into long-term arrangements with the goal of improving an airport's operating efficiency and passenger comfort. Total passenger numbers served across our airport portfolio swelled to some 90 million in fiscal 2008.

The net present value (NPV) established by HOCHTIEF Concessions was calculated as of December 31, 2008 on the basis of various future-looking assumptions, among others with regard to the operative and financial development of individual subsidiaries/associates as well as with regard to the applied discounting rates. In the event these assumptions change or do not materialize, this may lead to a deviation – possibly even on a significant scale – of the actual value from the value shown here.