• New division created
• Earnings again contributed significantly to HOCHTIEF's business success
• PPP portfolio expanded further
• HOCHTIEF Concessions among the world's leading infrastructure providers

In the first quarter of the year under review, HOCHTIEF Concessions GmbH was established as the new main company for the division of the same name combining the HOCHTIEF AirPort and HOCHTIEF PPP Solutions companies. This move is our reaction to the increasing importance of concessions and operation*. At the same time, the transparency and efficiency of these activities is being improved and synergies between the business segments reinforced.

HOCHTIEF Concessions is already one of the world"s leading infrastructure providers with operations in all key markets worldwide. The company is both an investor and a manager. HOCHTIEF Concessions offers one-stop shopping for project development, financing and capital raising, construction and project management as well as operation and asset management for airports, toll roads, PPP-based public building and renewable energy projects. Our comprehensive expertise and many years' experience in these areas are the key to our success. This is true in particular in the business segments in which competitive hurdles are very high owing to their complexity.

Positive fiscal year for HOCHTIEF AirPort**

The total number of passengers at our six airport holdings was 90 million, which represents an increase of 1.5 percent over 2007 (88.7 million passengers). However, the weakening economy curbed growth.

Once again, HOCHTIEF AirPort was successful in putting the airports in a position to handle the forecast growth in traffic volume as well as developing new business segments and sources of income. One of these is the non-aviation segment, which includes food outlets, shopping malls and car parking, for example.

A new logistics hangar will also be built for the Hungarian postal service. The plan additionally includes Airport City, a new business park.

Düsseldorf International

The airport boosted its passenger traffic to 18.1 million travelers (up 1.8 percent). Growth here is more robust than at other German airports, with Düsseldorf establishing itself as the third major hub in Germany. The airport company is putting the conditions in place for further growth and even better service with an investment program totaling EUR 300 million: EUR 200 million is earmarked for improved infrastructure and another EUR 100 million will be invested in expanding non-aviation business. During this project, the airport is taking into consideration environmental factors. For instance, a nearly 1,300-square-meter photovoltaic plant began operating in December 2008 and, in the next 20 years, up to 2.7 million kilowatt-hours of power will be fed into the public grid. This will also result in savings in excess of 2,000 metric tons of CO₂.

Hamburg Airport

At 12.8 million passengers, the airport recorded growth in passenger traffic of 0.5 percent in the past fiscal year. Catering and retail space more than doubled with the opening of the Airport Plaza in December 2008. This will significantly increase rental income from non-aviation sources. Airport Plaza, which was built by a consortium led by HOCHTIEF Construction, also features an energy-conserving, environmentally friendly air conditioning system. The airport has been accessible by commuter train since the end of 2008 and is therefore even more appealing to passengers. An additional attractive feature is the new Radisson Hotel Hamburg Airport, construction of which began in February 2008.

Sydney Airport

Sydney Airport's performance continued to be strong with passenger traffic climbing 3.2 percent to 32.9 million travelers. On the occasion of the 23rd World Youth Day, the airport hit a new record on July 13, 2008: More than 20,000 passengers traveled through the international terminal of

Project highlights

Toll roads

In March 2008, HOCHTIEF PPP Solutions along with partners reached financial close (i.e. finalization of financing agreements) on the Maliakos-Kleidi toll road project in Greece. With around 300 employees, the concession company in which HOCHTIEF PPP Solutions holds a stake of 35 percent will operate the freeway for 30 years and charge tolls. The project is worth approximately EUR 1.11 billion and will include a 25-kilometer stretch of road with three tunnels, 26 bridges and ten rest stops. The consortium will also widen and refurbish another 205 kilometers of road. As the lead partner in the consortium, HOCHTIEF Construction holds a stake of around 40 percent in the construction project.

The launch of another large-scale PPP toll road project in Greece was marked by the financial close for the Elefsina- Patras-Tsakona freeway in August 2008. The concession agreement runs for 30 years. HOCHTIEF PPP Solutions holds a stake of 25 percent in the operator consortium. The freeway stretching 365 kilometers is the most important traffic corridor from Athens to the Peloponnese. Eighty-two kilometers of this freeway already exist, 163 kilometers will be newly constructed, and 120 kilometers of road will be widened. Valued at roughly EUR 2.21 billion, the project is scheduled for completion in 2014. HOCHTIEF Construction holds a stake of 23 percent in the construction joint venture for this project.

In 2008, HOCHTIEF PPP Solutions' second PPP toll road project in Santiago de Chile was opened to traffic. Along with a partner, the company will operate the four-kilometer San Cristóbal tunnel connecting the business district of Chile's capital with the northern suburbs of the city until 2038. The private investments in the project totaling around EUR 108 million will be refinanced with tolls during the 30- year operating phase.

In May 2008, a subsidiary of HOCHTIEF PPP Solutions along with a partner began a 30-year operating period for an approximately 45-kilometer stretch of the A4 autobahn between Gotha and the border between the states of Hesse

meters. In August 2008, HOCHTIEF PPP Schulpartner announced excellent results in an annual energy report for the schools for which it is responsible in the Offenbach district: Energy consumption was reduced substantially by modernization work completed to date, although additional net floor space was added and many schools are now open all day.

The city hall in Gladbeck, which was designed, financed and built by HOCHTIEF PPP Solutions as part of a PPP project, was awarded the Prix Européen d – Architecture (European architecture award) by the Philippe Rotthier Foundation for the best public intervention.

HOCHTIEF PPP Solutions (UK) has handed over four schools in the East Ayrshire region of Scotland and in Salford, England, since April 2008. These include Grange Academy in Kilmarnock, which features a preschool and elementary school, secondary schools and a special needs wing. The project has gross floor space of around 18,000 square meters and houses up to 2,200 pupils. Our UK subsidiary will operate the Academy until 2037.

In 2008, HOCHTIEF PPP Solutions (UK) was also chosen as a preferred bidder for the community center project for the city of Wigan. Worth EUR 244 million, the project will run for 25 years. The financial close is planned for the first half of 2009.

Renewable energies*

HOCHTIEF PPP Solutions has been active in the geothermal energy market since 2007 in an effort to meet the growing demand for power plants in this segment. In September 2008, Süddeutsche Geothermie-Projekte, a company in which we hold a stake of 40 percent, began drilling work for its second geothermal power plant. The company is designing, financing and building a five-megawatt plant featuring heat recovery in Kirchstockach, Bavaria. The project is worth approximately EUR 35 million. The construction and drilling work is being completed by HOCHTIEF Construction. Electricity is scheduled to be fed into the grid for the first time in early 2010.

Operating earnings in the 2008 fiscal year fell by EUR 39.6 million compared with the prior year to EUR 145.7 million.

However, the results from this reporting year are comparable with prior-year figures only to a limited extent because HOCHTIEF AirPort recognized nonrecurring effects of EUR 37.8 million in 2007 – these stemmed from changes resulting from the German corporate tax reform – as well as a special dividend arising from the refinancing of Sydney Airport totaling EUR 47.1 million. In 2008, HOCHTIEF AirPort recognized nonrecurring effects of EUR 33.7 million from the payment of a final contingent purchase price from HOCHTIEF AirPort Capital and a special dividend from Sydney. Adjusted for these nonrecurring effects, HOCHTIEF AirPort's operating earnings amounted to EUR 89.4 million in the reporting year, an increase of seven percent over the previous year. At EUR 22.6 million, HOCHTIEF PPP Solutions' operating earnings exceeded the prior-year figure by EUR 5.6 million. Contributing to this result were success fees from the awarding of the Maliakos-Kleidi and Elefsina- Patras-Tsakona toll road projects and the improvement of the project result for the Offenbach schools project.

Profit before taxes amounted to EUR 109.6 million. At HOCHTIEF AirPort, sustainable operating profit before taxes adjusted for nonrecurring items rose by EUR 2.4 million over the prior-year figure. HOCHTIEF PPP Solutions generated a result slightly higher than in the previous year.

Capital expenditure in fiscal 2008 amounted to EUR 27.7 million, far below the prior-year figure of EUR 131.3 million which had included acquisition of the investment in Budapest Airport and raising the stake in Sydney Airport by HOCHTIEF AirPort.