HOCHTIEF Annual report 2008 - Management Report

Segment Reporting

HOCHTIEF's divisions work together: Networking creates value added

Our services span the entire life cycle of infrastructure projects, real estate and facilities. To this end, we network our offerings and pool our services: The HOCHTIEF companies work in close cooperation with each other to offer our clients the best possible, customized solutions.

The experience we gain through our projects around the globe is a key element of knowledge transfer at HOCHTIEF. Our clients can be sure that our services are always provided based on our companies' latest findings.

As profit centers, all of the Group's divisions and companies are part of the HOCHTIEF network. They collaborate wherever possible and desired by the client. This boosts sales and earnings – and our clients, shareholders and employees benefit.

Examples of cooperation within the Group

HOCHTIEF PPP Solutions offers its services in collaboration with its sister companies HOCHTIEF Construction and HOCHTIEF Facility Management. HOCHTIEF Construction, for instance, is a construction partner on a number of public- private partnership (PPP) projects, for example, for implementing toll road projects in Greece, Austria and Germany. HOCHTIEF Construction is also responsible for new construction and refurbishment in school projects which HOCHTIEF has taken on for public authorities in Germany. Management of the schools is assumed by HOCHTIEF Facility Management – in Germany as well as in Ireland and the UK. Last but not least, the three companies are also collaborating on the first German PPP building construction project in the defense sector, the Fürst Wrede barracks in Munich. The HOCHTIEF Concessions and HOCHTIEF Europe divisions jointly realize projects with a contract volume of around EUR 1.4 billion. The Services division handles additional cooperation projects worth some EUR 500 million.

The companies of the HOCHTIEF Real Estate division – HOCHTIEF Projektentwicklung, aurelis Real Estate and HOCHTIEF Property Management – also work closely together. By way of example, in 2008, aurelis awarded HOCHTIEF Property Management a contract to manage the company's properties. The units are also closely networked with the sister companies from the service sector, HOCHTIEF Facility Management and HOCHTIEF Energy Management. For instance, HOCHTIEF Facility Management provides corresponding services for real estate developed by HOCHTIEF Projektentwicklung, such as the WestendDuo in Frankfurt and the Rondo office tower in Warsaw.

The HOCHTIEF Consult competence center, which is part of the HOCHTIEF Europe division, has specialist technical expertise and is involved in major projects within the Group. In 2008, HOCHTIEF Consult advised our units on building construction projects in the United Arab Emirates and assisted HOCHTIEF AirPort in preparing tenders for international airports.

Internal cooperation is also well established internationally: Together with Flatiron, the civil engineering company acquired by HOCHTIEF in 2007, Turner is handling the modernization of Sacramento International Airport. HOCHTIEF's US companies also aim to join forces on the market in future when projects require both building construction and civil engineering services. Cooperation also began with HOCHTIEF PPP Solutions in the year under review. For instance, the US unit of HOCHTIEF PPP Solutions has already been involved with Flatiron in invitations to tender for toll road projects. Collaboration with Turner is similarly underway on PPP building construction projects.

Also in the area of sustainable construction, our portfolio is comprehensive: With HOCHTIEF Projektentwicklung, HOCHTIEF Construction, HOCHTIEF Facility Management and HOCHTIEF Energy Management, as well as the services provided by HOCHTIEF Consult, we offer our clients the entire spectrum of expertise to build "green" buildings or implement measures to improve energy efficiency.