ONE ROOF

Sources:
Euroconstruct, BIS Shrapnel,
McGraw­Hill, GTAI, BMI
38 Annual Report 2009
Percentage growth in the regional markets
served by HOCHTIEF
Region
Non­residentialconstruction
2009 2010
Civil
engineering
Overall market
Non­residentialconstruction
Civil
engineering
Australia –25.0 16.9 –3.9 –14.0 –14.5 –4.4
Austria –10.9 1.8 –3.0 –6.1 4.5 –1.5
Czech Republic –24.0 15.9 –4.3 –9.0 6.5 –0.3
Eastern Europe –8.2 17.7 0.7 –3.5 16.9 5.4
Germany –3.5 0.9 –1.2 –0.7 3.9 0.8
Hungary –8.8 10.0 –1.4 –6.0 10.0 –0.2
India n.a. n.a. 10.0 n.a. n.a. 10.0
Indonesia n.a. n.a. 5.5–7 n.a. n.a. 5.5–7
Poland 0.1 22.0 5.3 1.1 22.3 9.6
Russia n.a. –12.2 –12.0 n.a. 6.5 2.5
UK –14.9 –1.4 –12.6 –4.6 7.7 –0.8
USA –30.3 –9.3 –24.5 –1.5 11.8 11.3
Western Europe –9.8 0.1 –8.9 –4.7 –1.0 –2.7
USD 787 billion at the beginning of 2009. USD 130 bil­
lion went to the construction sector overall. Approxi­
mately USD 70 billion of this is being poured into infra­
structure. Some USD 30 billion has been earmarked
for non­residential construction. The positive impact of
this financial assistance will continue in 2010. Industry
experts at McGraw­Hill Construction expect the construction
sector to grow by eleven percent, after the
sharp downturn of 25 percent in the year under review.
However, the individual segments will vary considerably.
Building construction, the segment served by our
US subsidiary Turner, is expected to stabilize by the end
of 2010. Turner will benefit above all from the strength
of public building construction as well as the education
and healthcare segments. The civil engineering segment,
which our US subsidiary Flatiron serves, performed
much better from the second half of 2009 thanks to the
economic stimulus program. For 2010, McGraw­Hill
Construction anticipates significant growth of 11.8 percent
in this segment.
Overall market
Sustainable, green building is also playing an increasingly
important role in the US construction sector.
According to McGraw­Hill Construction, the green
building market as a whole was worth between USD
36 billion and USD 49 billion in 2009 and is expected to
double in 2010. HOCHTIEF, with its subsidiary Turner,
has long been No. 1 in this high­growth segment.
The economy and construction market in Australia
were not immune to the international financial and economic
crisis in fiscal year 2009, either. Nevertheless,
most of the sectors served by HOCHTIEF were hardly
affected. The civil engineering segment, for instance, in
which we are represented by our Australian subsidiary
Leighton, recorded very substantial growth, improving
by 16.9 percent. The outlook is similarly posi tive for the
education and healthcare sectors as well as the water
and energy sectors. Market watchers from BIS Shrapnel
expect building construction, which declined in 2009,
to stabilize in 2011. Leighton anticipates great potential
in Australia from the construction of infra structure facil­
ities for the production of oil and gas. Our Australian
company has a presence in the high­growth markets,
where it is constantly building on its position.
The Gulf region is and remains a highly attractive con­
struction market which did, however, recede a little in
the last few months of the fiscal year. Nevertheless,
there is still a noticeable positive trend above all in Saudi
Arabia, Qatar, Bahrain and Abu Dhabi. There will be
particularly strong demand for infrastructure projects
over the next few years. Industry experts at the Norton
Rose Group expect the construction sector in the Gulf
region to gain strength in the medium term. HOCHTIEF
will profit from this situation through Leighton and other
Group companies.
The markets in Asia also suffered under the economic
crisis in the year under review. Despite this, the Indone­
sian construction industry, for example, has excellent
medium­term growth prospects, according to Germany
Trade & Invest. Numerous infrastructure projects will be
carried out in the next few years, with huge backlogs in
demand existing notably for transport, energy, water