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For further information on R&D<br />

and innovation projects, please<br />

see www.hochtief.com/rd, our<br />

Sustainability Report and www.<br />

hochtief.com/sustainability.<br />

50 Annual Report 2009<br />

Research and Development<br />

• Innovations an integral part of many projects<br />

• Numerous products rooted in R&D projects<br />

• Leading edge in the construction industry<br />

through innovations<br />

• Persuasive examples of strong innovative drive<br />

One of a kind, not one size fits all<br />

As an international provider of construction services,<br />

HOCHTIEF only designs, finances, builds and operates<br />

facilities that are unique and often also complex. Nearly<br />

every one of our projects involves research and development<br />

(R&D) work to ensure individuality and to provide<br />

customers with quantifiable added value. Our aim<br />

is to optimize these projects.<br />

Innovation management spurs growth<br />

Our company’s pioneering developments set standards<br />

in the construction industry worldwide. We continue to<br />

bolster this leadership position primarily through systematic<br />

innovation management in all areas of the company.<br />

For instance, we do not simply produce unique<br />

solutions for projects and develop high-growth business<br />

segments: Our innovations also contribute to the<br />

continual optimization of internal workflows and processes<br />

and set us apart from the competition.<br />

Three levels of innovation<br />

HOCHTIEF’s innovation management operates at three<br />

levels:<br />

The first level, central innovation management, ad-<br />

dresses cross-cutting issues that could have a sustained<br />

impact on the operating business. Our international<br />

expertise and global network allow us to develop and<br />

implement such innovation projects throughout the<br />

Group. Central Corporate Development coordinates<br />

integrated innovation management, reviews promising<br />

innovation projects and sees to their implementation.<br />

Our Innovation Committee, which is made up of members<br />

from all divisions, the corporate centers and the<br />

Executive Board, decides which projects will be carried<br />

out. Implementation is supported by Corporate Development,<br />

and efficiency is ensured by systematic monitoring<br />

and control. In the year under review, HOCHTIEF<br />

spent more than EUR 5 million on Group-wide R&D<br />

projects. Sixty-five employees worked on 41 of these<br />

projects in 2009, with 14 initiatives started and 17 completed.<br />

The second level of innovation management at<br />

HOCHTIEF targets innovations by the divisions. These<br />

projects are developed, financed and implemented by<br />

these divisions and the respective companies.<br />

The third level consists of project-specific innovations.<br />

These services account for the majority of our innovations<br />

and are mostly provided directly at building sites<br />

or as early as the project planning phase. We not only<br />

develop custom technological solutions, but also optimize<br />

areas such as materials and logistics for our<br />

unique projects. The expenses for this work are allocated<br />

to the projects and not recognized at Group<br />

level.<br />

Examples of current innovation projects<br />

Level 1: Central innovation management<br />

Offshore wind energy activities bolstered<br />

HOCHTIEF operates in several segments of the expanding<br />

offshore wind energy market. We design, build and<br />

lay the required concrete and steel parts anchored directly<br />

to the sea floor. Moreover, our company performs<br />

soil analyses, and installs and maintains wind turbines.<br />

In 2009, key parts of the first offshore wind farm in<br />

Germany, “alpha ventus,” were constructed north of<br />

the island of Borkum. We also expanded our product<br />

and service spectrum in 2009 with the Beluga HOCHTIEF<br />

Offshore joint venture. In cooperation with the world’s<br />

leading heavy-lift cargo carrier, Beluga Shipping, we aim<br />

to develop and operate special-purpose vessels that<br />

enable the installation of offshore facilities with a height<br />

of over 100 meters and a capacity of more than five<br />

megawatts. The first vessel is expected to be operational<br />

in 2012. Thanks to Thor, our new jack-up platform,<br />

we have been able to build wind farms that serve<br />

at depths of up to 50 meters since 2009, thereby unleashing<br />

additional sales and earnings potential.<br />

Innovations for sustainable airports<br />

“Sustainable airports” is a new market strategy for environmentally<br />

friendly consulting services developed by<br />

our subsidiary HOCHTIEF AirPort along with central<br />

departments in other divisions. One of the four corner-

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