ONE ROOF

HOCHTIEF Europe Division
• Return target reached
• Turnaround in building construction achieved
• Key strategic issues defined
• Further boost for international business
Under the leadership of HOCHTIEF Construction*, the
HOCHTIEF Europe division draws together the Group’s
portfolio of construction and construction-related services
in Europe. Outside of Europe, the company operates
as a general contractor for complex, large-scale
projects. Our activities focus mainly on building construction,
civil and structural engineering in high-growth
countries in Western and Eastern Europe. We are also
positioned successfully in the market for high-quality
residential real estate in Germany. In addition, innovative
business models and services at every link in the
construction value chain round out our portfolio of
c apabilities.
Success despite the economic crisis
Despite the global economic crisis, we were able to
turn around the Building division, with new projects
successful once again and contributing to earnings.
The Construction International and Civil Europe divisions
of HOCHTIEF Construction generated excellent
earnings figures with solid operating margins. We met
our target of one percent return on sales in 2009 despite
the fact that a legacy project dragged down our
results somewhat.
Conditions in place for profitable growth
HOCHTIEF Construction is on its way to becoming a
profitable European construction company with international
operations. Our mid-term goal is a pretax return
on sales of three percent.
In order to reach this target, we are concentrating on
five key strategic issues: arriving at more equitable
prices, attaining a more profitable market position,
boosting efficiency, and increasing sales in profitable
markets and in risk-optimized business areas. The
role of the LEAD5! implementation program is to help
clarify these key strategic issues for employees and
lock in their personal contributions.
❘ Information for our Shareholders ❘ ❘ Management Report ❘ ❘ Financial Statements and Notes ❘
Increase in demand outside Germany
The international business continued to perform exceedingly
well, especially in the Gulf state of Qatar.
In the reporting year, HOCHTIEF Construction was
awarded the largest contract in the company’s history
for the construction of a more than eight-kilometer
retail and commercial center** in Qatar’s capital city of
Doha.
Close cooperation within the Group
HOCHTIEF companies work in tandem to achieve successes
together, thus enabling us to offer customers
end-to-end solutions with services ranging from design,
financing and construction to operation. This close
cooperation is reflected in a variety of projects in which
HOCHTIEF Construction works hand-in-hand with fellow
Group companies such as HOCHTIEF PPP Solutions
on projects including the construction of the Elefsina-
Patras-Tsakona toll road in Greece or the Austrian A5
North Highway (Ypsilon). The company also provides
support to sister companies HOCHTIEF AirPort,
HOCHTIEF Property Management and HOCHTIEF
PPP Solutions as a consultant and service provider
on large-scale projects.
Commitment to key growth markets
HOCHTIEF Construction systematically works to continually
develop sales and growth potential in attractive
business areas and then to expand this new business.
In fiscal 2009, we further reinforced our strong position
in the green building segment. HOCHTIEF Construction
also operates in the high-growth market for offshore
wind plants. The company is considering developing
and operating innovative lifting vessels for the construction
of these power plants along with the world’s
leading heavy-lift cargo carrier, Beluga Shipping. Both
companies contribute their expertise and market positioning
to the joint venture established in 2009. In addition,
HOCHTIEF Construction continues to join forces
with HOCHTIEF PPP Solutions on geothermal projects.
*For further information, please
see www.hochtief-construction.
com.
**For further information, please
see page 82.
Annual Report 2009 97