Accelerated implementation of corporate strategy breeds success
Products and services systematically expanded
Innovations make HOCHTIEF fit for future challenges
Human resources management a high priority

HOCHTIEF is a successful company – for more than 130 years, we have offered our clients construction solutions individually tailored to their needs. We have thus developed into an international provider of construction services. Today, our portfolio includes the development, construction, services and concessions and operation modules. We are therefore in a position to provide integrated solutions at every link in the life cycle of infrastructure projects, real estate and facilities.

Our activities throughout the entire HOCHTIEF Group are based on our vision: "HOCHTIEF is building the future. – Along with our partners, we expand horizons, link people and organizations, create new ways to think and act, and continually enhance the values entrusted to our care." Our vision will continue to point the way for HOCHTIEF's development in the future.

In our Group strategy, the following initiatives set the tone:

Expansion in high-growth regions

The strategic acquisitions we have made in recent years have enabled us to reinforce our business considerably, for example, through the purchase of the US civil engineering company Flatiron, or the acquisitions of aurelis Real Estate and the stake in Budapest Airport in 2007. We have successfully integrated these companies into the Group.

On the whole, HOCHTIEF focuses on organic growth in all areas of the Group. We therefore expand our business continually, but concentrate exclusively on markets with high growth rates. Accordingly, our efforts are aimed at various regions: HOCHTIEF PPP Solutions is currently gaining a foothold in North America, where the public-private partnership market is growing due to factors including the Obama administration's economic stimulus program. We are also growing this business in existing markets: Germany, Greece, the UK and South America.

Our products and services

Development

This module encompasses real estate development, from planning and finance all the way to marketing, either as individual offerings or an all-in package.

Construction

This module comprises traditional construction operations as well as construction management in the areas of building, civil engineering and infrastructure development.

All modules of the product and service portfolio are closely interlocked.

Services

The services module covers services in the pure sense, such as construction planning, logistics, asset management, facility management, energy management, property management and insurance. Construction management at fee is also included.

Concessions and operation

Included here are all activities aimed chiefly at managing business processes. This notably covers the work of our airport segment as well as our public-private partnership business in the toll roads and public buildings segments as well as renewable energies. Contract mining, with its focus on operation, is also assigned to this module.

We are continually broadening our presence in Eastern Europe, where we are represented by the branches and representative offices of our subsidiaries. In Russia, we expanded HOCHTIEF's activities with a HOCHTIEF Projektentwicklung company in St. Petersburg in 2008.

In our successful contract mining business, we also tap into new regions, such as India and Mongolia in the year under review. We invest continuously in this lucrative and profitable segment, which requires special mining equipment.

Expansion of HOCHTIEF's products and services

In the future, we aim to continue to set ourselves apart from the competition by virtue of our technical skills and process expertise – and offer our clients customized solutions. This is how we succeed in standing out in the competitive pricing arena with the quality and innovative strength of our work, thus creating added value for our clients.

Our expertise in sophisticated technical fields also benefits us in new business segments such as the wind power and geothermal energy markets. We positioned HOCHTIEF in these segments at an early stage and will further build on our activities.

The multifaceted issue of energy efficiency is becoming increasingly important in the HOCHTIEF Group, particularly due to climate change. In many of our corporate units, we offer specific services aimed at sustainable building, improving the energy efficiency of buildings and resource-saving ways of doing business. We will continue to further expand on this commitment in the future. The basis for this effort is the comprehensive approach to sustainability to which HOCHTIEF is dedicated as a company. Our subsidiaries are increasingly developing their sustainable products and services and thus setting themselves apart from the competition. Turner, for example, is a leader in the US green building segment.

We generate new services based on our special consulting expertise – for instance, at HOCHTIEF Construction, where we provide construction management consulting services.

Our technology lead is founded on innovations in the HOCHTIEF Group. In order to continue to successfully meet the requirements of our complex projects in the future, we promote the development of new products and services.

Solutions for the entire building life cycle

Our market success is based on our strategy of providing complete, all-around solutions throughout the entire life cycle of infrastructure projects, real estate and facilities. The advantages of integrated, sustainable products and services are understood and valued – by clients, investors and shareholders alike.

One-stop shopping: HOCHTIEF as a life-cycle manager. Our services are based on the principle of sustainability.

Stepping up the service business

In the coming years, we plan to further boost the share of our activities accounted for by the service business in the Group as a whole. Services provide secure income on an ongoing basis for the long term and are less affected by cyclical fluctuations than the traditional construction business. In particular, we emphasize sophisticated facility and energy management services in which we assume major responsibilities, allowing our clients to focus on their core business. We will expand our capabilities in the industrial sector.

The service business is growing at Leighton as well in areas such as recycling services.

Systematic leveraging of Group synergies

We develop new potential for our business from the cross-selling effects resulting from cooperation between closely linked HOCHTIEF companies.

In the PPP segment in particular, cooperative projects provide one-stop shopping for planning, financing, construction and operation services. In the future, we plan to further reinforce and expand cooperation within the Group, particularly in the USA, where our subsidiaries Turner, Flatiron and HOCHTIEF PPP Solutions together service the market.

In the strategically important HOCHTIEF airport business segment, we offer complete life cycle management from the master plan through financing and construction to operation and management.

Our life cycle approach enables us to develop solutions to address megatrends such as demographic developments and climate change. We accomplish this by providing varied service packages to suit a wide variety of environments and situations. Urban district development for which HOCHTIEF can offer complete services from planning and financing to administrative and related services are an example of this.

Increasingly, HOCHTIEF is providing facility management consulting in the early phases of planning and construction. This results in significant cost savings in electrical and mechanical installations and later operation.

Positioning as an attractive employer

Our human resources management efforts aim to ensure that well-qualified employees are available to the company in every area – today as well as in the future. For this reason, recruiting and retaining employees and staff development are top-level priorities throughout the HOCHTIEF Group. We continually work on maintaining our healthy corporate culture and the reputation of our Group.

Overcoming challenges in the crisis

Our strategy has allowed us to move into a robust position for overcoming challenges, even in the current crisis.

On the one hand, the company's business thrust is not based on one particular product or service, but instead on a varied portfolio. By covering the entire construction value chain and tightly networking our services, we benefit in all areas of our business involving infrastructure projects, real estate and facilities.

On the other hand, our high degree of internationalization – the highest in the industry – contributes to our broad business base and enables us to compensate for economic fluctuation in individual regions.

In the future, we will continue to pursue our successful strategy and are determined to systematically harness the opportunities arising from the crisis for HOCHTIEF as a construction services provider, such as those stemming from national economic stimulus packages.

Strategy