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110 Annual Report 2009 <strong>ONE</strong><strong>ROOF</strong> ALL SOLUTIONS Sacramento Airport, USA A new gateway to the world will be opening up near California’s capital: Flatiron and Turner joined forces with a partner to design and build a new terminal for Sacramento International Airport by 2012. The building will cover nearly 30,000 square meters, and 19 gates are planned for international air traffic. The facility is expected to receive LEED certification for sustainable buildings from the United States Green Building Council. The EUR 185 million contract was the first joint project secured by our two companies in 2008, and this intra-Group partnership has led to further successes. In 2009, our US subsidiaries were awarded the contract to expand the international airport in San Diego.
Risk Report • Group-wide early warning system • Continual refinement of active risk management measures • Room to maneuver thanks to solid finances • No risks to the company as a going concern identified Risk management at HOCHTIEF Risk management at HOCHTIEF takes in all organizational processes involved in advance detection of risks as well as in identifying and initiating suitable action to counter them. A risk is defined as any contingency with a potential negative impact on the attainment of qualitative or quantitative business goals, and in particular on earnings and liquidity. Risk management is a key success factor for HOCHTIEF and as such forms an integral component of our management system. To promote risk awareness throughout the workforce, we nurture a continuously evolving risk culture at all levels sustained by organizational processes, IT systems and open communication. HOCHTIEF Group early warning system A Group-wide directive available to every employee lays down standard procedures for risk management. As a reaction to the financial crisis, we homed in more specifically on liquidity risks in this directive. The divisions supplement this Group directive with organizational instructions geared to their specific circumstances. Risk inventories and forecasts are compiled at all operating locations three times a year and the resulting information is aggregated to Group level. This approach involves managers at all tiers of the corporate hierarchy. All risks are assigned an impact, probability, category and time-scale and are linked to action to be taken. In complement to this quantitatively focused reporting, HOCHTIEF also attaches utmost importance to open discussion of risks by management. A key element of our early warning system is therefore the Risk Management Steering Committee made up of divisional and corporate center representatives. This panel looks at reported risks from the differing perspectives of the ❘ Information for our Shareholders ❘ ❘ Management Report ❘ ❘ Financial Statements and Notes ❘ divisions and the holding company. The Steering Committee also coordinates and adopts binding counter- measures. HOCHTIEF compiles the Steering Com- mittee’s findings in a risk situation analysis in tabular form. The commented analysis forms an integral part of reporting and is finalized by the Executive Board. In addition, the Investment Committee, which as a rule must approve investments and equity stakes according to uniform and recognized principles, contributes substantially to risk avoidance. Opportunities are inventoried simultaneously with risks Group-wide and are included in planning and forecasting reports submitted to the Executive Board. There is no offsetting of risks and opportunities. Overall risk To assess overall Group risk, the expected individual risk exposures are totaled and expressed as a fraction of forecast or budgeted earnings. Expected risk exposures are also aggregated at Group level for each division and each risk category. Where individual risks are interrelated, the situation is assessed by the Risk Management Steering Committee and taken into account when the risks are quantified. Changes in risk structure are revealed by comparing current and previous risk reports. During the period under review, no risks were identified that might cast doubt over the Group’s ability to continue as a going concern. The company’s quantifiable average overall risk stands at approximately 11 percent of pretax profit. Identified liquidity risks can be covered with existing holdings of cash funds. In light of this analysis, there is no identifiable risk to the future results of operations, cash flows and financial condition of HOCHTIEF that might raise doubt about the entity’s ability to continue as a going concern. The global effects of the financial crisis have led to changes in HOCHTIEF’s risk structure, as evidenced by the sharply higher share of overall risk attributable to market risks which, along with financial risk, account for approximately 45 percent. Project and contract risk make up a share of around 40 percent of overall risk, followed by equity investment risks, which total nearly Annual Report 2009 111
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HOCHTIEF Annual Report 2009 ONEROOF
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Our Company at a Glance in 2009 HOC
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Turning Vision into Value HOCHTIEF
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❘ Information for our Shareholder
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us: For instance, Leighton was awar
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A major topic relating to the HOCHT
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esolutions regarding the Executive
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Executive Board Dr.-Ing. Herbert L
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One focus of corporate governance a
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Executive Board compensation also i
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Supervisory Board compensation tion
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Indexed performance of HOCHTIEF sto
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Regional distribution (as of Decemb
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with the goal of improving an airpo
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HOCHTIEF Concessions Division: Conc
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❘ Information for our Shareholder
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Our global presence HOCHTIEF worldw
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*For further information, please se
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The economic crisis will continue t
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and communications. The weak infras
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This sustained growth will be affec
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Internationally, new orders fell by
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Strategy • Successful corporate s
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we bring together our experts for t
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Our cross-divisional competence cen
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stones of this consulting service i
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meters of concrete and 142,000 squa
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Employees • Staff development too
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market in the USA. Turner currently
Page 59 and 60: In our global procurement network,
Page 61 and 62: HOCHTIEF Group performance The HOCH
Page 63 and 64: Value Added • Net value added con
Page 65 and 66: Financial Review • Strong year-on
Page 67 and 68: The EUR 15 million negative amount
Page 69 and 70: to the emerging challenges of the f
Page 71 and 72: Further loans are in place on a loc
Page 73 and 74: y Leighton. Other non-current liabi
Page 75 and 76: HOCHTIEF Aktiengesellschaft Stateme
Page 77 and 78: als. Section 23 (1) of the Articles
Page 79 and 80: of parties acting in concert, acqui
Page 81 and 82: provided on appointment and replace
Page 83 and 84: Segment Reporting Synergies boost s
Page 85 and 86: delphia. The project is worth appro
Page 87 and 88: jet parking areas. The project will
Page 89 and 90: Project highlights in Australia Ser
Page 91 and 92: The new contract is worth approxima
Page 93 and 94: Budapest Airport HOCHTIEF AirPort s
Page 95 and 96: The Elefsina-Patras-Tsakona toll ro
Page 97 and 98: HOCHTIEF Europe Division • Return
Page 99 and 100: essary work in the North Sea. With
Page 101 and 102: HOCHTIEF Real Estate Division • S
Page 103 and 104: Together with the Senator Group, th
Page 105 and 106: unified and optimized. The associat
Page 107 and 108: HOCHTIEF Services Division • Exis
Page 109: 2009. HOCHTIEF Energy Management wi
Page 113 and 114: Execution Ausführungsaudit Audit E
Page 115 and 116: Fiscal year 2010 will be shored up
Page 117 and 118: HOCHTIEF works with first-rate cert
Page 119 and 120: ❘ Information for our Shareholder
Page 121 and 122: Investing in sustained growth Our c
Page 123 and 124: which was established in 2008, is a
Page 127 and 128: Consolidated Statement of Earnings
Page 129 and 130: Consolidated Balance Sheet (EUR tho
Page 133 and 134: [Independent] Auditors’ Report We
Page 135 and 136: As in the prior year, the Consolida
Page 137 and 138: Property, plant and equipment is st
Page 139 and 140: The POC method is used primarily in
Page 141 and 142: value initially recognized in equit
Page 143 and 144: The remaining new or amended standa
Page 145 and 146: IFRIC 17 Distributions of Non-cash
Page 147 and 148: 6. Other operating expenses (EUR th
Page 149 and 150: 9. Income taxes 2009 2008 (EUR thou
Page 151 and 152: Impairment losses of EUR 64,000 (20
Page 153 and 154: Impairment losses of EUR 58,000 (20
Page 155 and 156: Associates The following tables sho
Page 157 and 158: 17. Other receivables and other ass
Page 159 and 160: The figure of EUR 1,422,095,000 (20
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As of December 31, 2009, HOCHTIEF A
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Top Executive Retention Plan 2004 T
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The quantities of SARs and stock aw
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Investing plan assets to cover futu
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The effects of a one percentage poi
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Sundry other financial liabilities
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Maximum payments as of December 31,
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Management of interest rate risk HO
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The following sensitivity analyses
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The impairments in trade receivable
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2008 (EUR thousand) Available for s
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The EUR 9,600,000 gains are include
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35. Segment reporting Segmental rep
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Profit/(loss) from operating activi
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All non-cash income and expense and
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The fees for services provided in G
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Corporate Headquarters ❘ Informat
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Supervisory Board Committees Nomina
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Glossary Alumni program The alumni
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Our five year summary Five Year Sum
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Publication Details and Credits Pub
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