HOCHTIEF Annual Report 2006 - To our Shareholders

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All operational units in the Development division sustained their successful trend through the year under review. HOCHTIEF PPP Solutions considerably strengthened its position in the British and Irish PPP education sector.

Opening up our PPP schools portfolio to investors will make it possible, as with HOCHTIEF AirPort Capital, to achieve substantial value growth with existing contracts from an early stage.

Close cooperation between HOCHTIEF Facility Management, HOCHTIEF Construction and HOCHTIEF PPP Solutions was a major factor in the ongoing expansion of the company's contract portfolio. Entry into the new PPP and sports facility industry segments opened up additional potential. The healthcare segment is also steadily gaining in importance.

HOCHTIEF Projektentwicklung is not only benefiting from sustained strong demand for real estate developments in Germany. Our intensified activities in Central and Eastern Europe have also secured additional new contracts. Many of these are projects carried out jointly in our closely integrated Group network, with HOCHTIEF Construction undertaking construction and HOCHTIEF Facility Management ensuring efficient operation of the end product.

The HOCHTIEF Americas division delivered persuasive performance in 2006, substantially boosting earnings after the successful restructuring of operating activities. Records in new orders and in the order backlog underscore this trend. Our subsidiaries Turner and HOCHTIEF PPP Solutions will jointly develop and open up new earnings potential from the PPP business now emerging in North America.

The HOCHTIEF Asia Pacific division followed through on the dynamic growth attained in 2005 to set all-time records in new orders, work done and the order backlog. To extend our position in Australia, we have further increased the size of our shareholding in the Leighton Group.

Although construction activity started to pick up, HOCHTIEF Europe was forced to address unexpected challenges in Germany during the year under review. We have made strategic and operational changes to pave the way for sustained improvements in this division. HOCHTIEF Europe is also generating extra business by increasingly providing its services in cooperation with other corporate units.

While Germany is important to us as a market, innovations we develop there are also used in our divisions all around the world. These include Virtual Design and Construction (ViCon), a digital technology that HOCHTIEF has deployed throughout its construction activities.

As you can see, HOCHTIEF is on track for long-term profitable growth. The capital market increasingly recognizes the huge performance potential in our company with its international business model. HOCHTIEF is exceptionally well placed for the future.

My thanks go to our stockholders, clients and trading partners for the great confidence and support they have again shown our company throughout the year under review. We see it as our duty to continue delivering superlative performance in 2007. Without our highly committed, well-qualified workforce, we would not have been able to write the next chapter in the HOCHTIEF success story in 2006. We owe special thanks for this exceptional commitment. With HOCHTIEF's strongly motivated employees, we are well set to master future challenges and secure enduring success - for the good of our stockholders, the Group and the workforce.

Essen, February 20, 2007