ONE ROOF

with the goal of improving an airport’s operating effi­
ciency and passenger comfort. Total passenger num­
bers served across our airport portfolio stood at 88.7
million in fiscal 2009.
We continually build on our airport operation expertise,
creating substantial added value for the airports we operate.
As an investor, we aim to develop our airport
holdings into profitable transportation and commerce
hubs that are ready for the challenges of the future.
Our many years’ experience in operating and managing
airports of various sizes along with our financing
expertise and potential are key elements in meeting this
goal.
Despite the fall in passenger numbers at several of the
airport holdings due to the global economic crisis, airports
continue to be a dependable long­term choice
for institutional investors seeking strong returns with
little volatility. Experience shows that airports recover
relatively quickly from crises.
Roads
The roads segment is managed by the subsidiary
HOCHTIEF PPP Solutions. The portfolio comprises
seven roads with a total length of more than 750 kilometers,
including two tunnels. Some 600 kilometers
are accounted for by just two Greek public-private
partnership (PPP) road projects—Maliakos-Kleidi and
Elefsina-Patras-Tsakona. Other projects we are involved
in include the Vespucio Norte Express highway
and the San Cristóbal toll tunnel in Chile, as well as a
section of the Austrian A5 North Highway near Vienna.
In Germany, our portfolio includes a section of the A4
highway in Thuringia and the Herren Tunnel in Lübeck.
Unlike in the airport segment, we do not aim to hold
our stakes in road projects for the entire duration of the
concession. The business model allows for interests to
be reduced after the ramp­up phase, since roads only
offer limited potential for optimization once they have
been built and opened.
Social infrastructure
Projects in the social infrastructure segment are also
combined under HOCHTIEF PPP Solutions. They currently
include 91 schools in Germany, the UK and Ire­
❘ Information for our Shareholders ❘ ❘ Management Report ❘ ❘ Financial Statements and Notes ❘
land as well as two city halls, a community center, and
a barracks in Germany.
In contrast to the airport and roads segments, HOCHTIEF’s
interests in social infrastructure projects in Germany
are largely majority holdings.
Infrastructure ventures
Infrastructure ventures so far comprise two geothermal
projects in the construction phase. The plants are to be
sold to investors in 2010. In addition to providing the
deep boreholes, HOCHTIEF PPP Solutions also offers
to develop geothermal power plants right through to
turnkey hand over. This also includes financing through
borrowing.
Portfolio valuation
Our main subsidiaries and associates are regularly
valued using the discounted cash flow (DCF) method.
The calculation is based on cash flows* between proj­
ect companies and HOCHTIEF. Future cash flows,
which comprise capital paid in and withdrawn such as
dividends, interest and fees, are discounted by applying
a risk-adjusted discount rate. Only projects that
have reached financial close are included in the valuation.
Owing to the short duration of geothermal projects,
they are not included in the portfolio valuation.
For airport holdings, HOCHTIEF applies a discount rate
of 13 percent. The placement price obtained on establishment
of the investment partnership in 2005 showed
this to be in line with market rates. For this reason, and
Typical value curve for a concessions project
Net present value
Financial close
Beginning of operations
Cumulative cash flows
(nominal)
Cash flows
(nominal)
Development Construction Ramp­up Growth Maturity
*See glossary on page 197.
Time
Annual Report 2009 27