HOCHTIEF Annual Report 2006 - To our Shareholders

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Dear Shareholders and Friends of HOCHTIEF,

Dr.- Ing. Hans-Peter Keitel, Chairman of the Executive Board (CEO)

2006 was another strong year for the HOCHTIEF Group. The healthy performance charted by our stock price reaffirms the persuasive impact of HOCHTIEF's strategy on the capital market. The investor confidence this demonstrates gives us great satisfaction.

HOCHTIEF adds value across the entire spectrum of real estate, facility and infrastructure projects. We serve all project phases with a coordinated range of capabilities in four closely and optimally integrated modules: development, construction, services, and concessions and operation. We are excellently positioned, not just in the German and European markets, but with a tightly meshed international network covering all world regions that matter for our business. HOCHTIEF's unique value creation strategy provides a framework in which our modules interlock, Group experts cooperate across disciplines, interfaces are finetuned and solutions made to last. This maximizes value for clients, stockholders and HOCHTIEF itself.

Our excellent market position is confirmed by the latest ranking from Engineering News-Record, an international trade journal. This rates HOCHTIEF as the world's third biggest construction services provider and the most internationalized company in the industry.

In September 2006, HOCHTIEF became the first German company in the industry and one of just six construction services providers in the world to feature in the Dow Jones Sustainability Indices. This is a major accolade and one we are very proud of. We aim to continue excelling in sustainable management practices.

Sustainability at HOCHTIEF includes promoting new talent - a key concern in the construction industry as ever fewer young people opt for technical careers. Construction engineers and well-trained skilled workers are in increasingly short supply in Germany as elsewhere. We therefore think it vital to kindle young people's enthusiasm for our industry and to be widely involved in activities to this end. This is why we opened the HOCHTIEF Academy to outside entrants in 2006. Unique in the German construction industry, the Academy has so far been restricted to qualifying our own people as state-recognized HOCHTIEF engineers.

We will continue to extend our international presence in order to serve our markets as effectively as possible. We forecast especially strong growth for Eastern European markets and plan to exploit this growth to the full. The company is excellently poised to do so: We have operational units and highly capable personnel actively deployed in the most attractive segments of these markets, including infrastructure construction and high-quality real estate development.

In the HOCHTIEF Airport division, we are keeping to our strategic course of appraising and acting on acquisition opportunities that offer strong potential. To cite one example, we are currently negotiating for a stake in Budapest Airport - the second-largest international airport in Central Europe.

The value potential in HOCHTIEF's projects is graphically illustrated by the strong growth of our concessions portfolio. This includes airport projects engaged in by HOCHTIEF AirPort and PPP projects undertaken by HOCHTIEF PPP Solutions.