STRABAG SE

Annual Report • Apr 28, 2011

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annual financial statement 2010

Content

Consolidated Financ ial statements 31.12.2010	2
Consolidated Income Statement	3
Consolidated Balance Sheet	4
Consolidated Cash-Flow Statement	5
Statement of Changes in Equity	6
Consolidated Statement of Changes in fixed Assets	8
Notes to the Consolidated Financial Statements	10
List of Participations	57
Management Report	76
Independent Auditor's Report	112
Individual Financ ial statements 31.12.2010	115
Balance Sheet	116
Income Statement	119
Notes to the 2010 Financial Statements	120
Statement of Changes in Non-Current Assets	126
List of Participations	128
Management and Supervisory Board	131
Management Report	132
Independent Auditor's Report	170
Statement of all Legal Representatives	172

FINANCIAL STATEMENT

FINANCIAL STATEMENT 31.12.2010

Consolidated Income Statement for the financial year 2010

		2010	2009
	Notes	T€	T€
Revenue	(1)	12,381,537	12,551,928
Changes in inventories		1,828	9,689
Own work capitalized		78,178	71,423
Other operating income	(2)	275,169	258,248
Raw materials, consumables and services used	(3)	-8,218,355	-8,446,904
Employee benefits expenses	(4)	-2,800,933	-2,823,322
Other operating expenses	(5)	-1,030,190	-932,918
Share of profit or loss of associates	(6)	32,386	-12,715
Net investment income	(7)	15,073	8,819
EBITDA		734,693	684,248
Depreciation and amortisation expense	(8)	-435,742	-401,400
EBIT		298,951	282,848
Interest and similar income		78,709	78,332
Interest expense and similar charges		-98,386	-98,219
Net interest income	(9)	-19,677	-19,887
Profit before tax		279,274	262,961
Income tax expense	(10)	-90,896	-78,350
Net income		188,378	184,611
Attributable to: non-controlling interests		13,521	23,154
Attributable to: equity holders of the parent		174,857	161,457
Earnings per share (in €)	(11)	1.53	1.42

Statement of comprehensive Income for the financial year 2010

	2010 T€	2009 T€
Net income	188,378	184,611
Differences arising from currency translation	43,329	-7,515
Change in hedging reserves including interest rate swaps	-3,559	44,351
Change in actuarial gains or losses	-17,217	-21,710
Change in fair value of financial instruments under IAS 39	-1,183	666
Deferred taxes on neutral change in equity (10)	611	-4,679
Net income recognised directly in equity	21,981	11,113
Total comprehensive income	210,359	195,724
Attributable to: non-controlling interests	12,396	20,394
Attributable to: equity holders of the parent company	197,963	175,330

Consolidated Balance Sheet as of 31.12.2010

Assets	Notes	31.12.2010 T€	31.12.2009 T€
Non-current assets
Intangible assets	(12)	535,687	496,056
Property, plant and equipment	(12)	2,102,364	2,146,440
Investment property	(13)	73,524	113,120
Investments in associates	(14)	87,933	131,949
Other financial assets	(14)	257,256	240,833
Receivables from concession arrangements	(17)	968,875	938,532
Trade receivables	(17)	64,229	61,410
Non-financial assets	(17)	4,044	5,398
Other financial assets	(17)	36,778	32,730
Deferred taxes	(15)	214,349	133,984
		4,345,039	4,300,452
Current assets
Inventories	(16)	705,721	655,703
Receivables from concession arrangements	(17)	19,477	18,008
Trade receivables	(17)	2,548,790	2,401,589
Non-financial assets	(17)	138,260	121,126
Other financial assets	(17)	440,527	333,761
Cash and cash equivalents	(18)	1,952,452	1,782,951
Assets held for sale	(19)	231,891	0
		6,037,118	5,313,138
		10,382,157	9,613,590
Equity and Liabili ties	Notes	31.12.2010 T€	31.12.2009 T€
Group equity
Share capital		114,000	114,000
Capital reserves		2,311,384	2,311,384
Retained earnings		665,726	524,803
Non-controlling interests		141,328	148,877
	(20)	3,232,438	3,099,064
Non-current liabilities
Provisions	(21)	927,948	867,626
Financial liabilities1)	(22)	1,318,305	1,274,647
Trade payables	(22)	43,231	40,011
Non-financial liabilities	(22)	1,003	1,067
Other financial liabilities	(22)	23,847	68,090
Deferred taxes	(15)	49,142	53,990
		2,363,476	2,305,431
Current liabilities
Provisions	(21)	710,810	580,407
Financial liabilities2)			234,515
	(22)	240,847
Trade payables	(22)	3,067,759	2,635,245
Non-financial liabilities	(22)	355,381	360,363
Other financial liabilities	(22)	411,446	398,565
		4,786,243	4,209,095

1) Thereof T€ 678,713 concerning non-recourse liabilities from concession arrangements (previous year: T€ 715,099) 2) Thereof T€ 41,172 concerning non-recourse liabilities from concession arrangements (previous year: T€ 41,981)

Consolidated Cash-flow Statement for the financial year 2010

	2010 T€	2009 T€
Net income	188,378	184,611
Deferred taxes	-84,853	-17,441
Non-cash effective results from consolidation	2,519	2,958
Non-cash effective results from associates	-20,608	19,399
Depreciations/write ups	435,583	411,500
Changes in long term provisions	43,164	44,358
Gains/losses on disposal of non-current assets	-43,286	-31,980
Cash-flow from profits	520,897	613,405
Change in items:
Inventories	-48,298	17,906
Trade receivables,
construction contracts and consortia	-211,191	640,212
Receivables from subsidiaries and
receivables from participation companies	-36,979	1,178
Other assets	-25,480	25,255
Trade payables,
construction contracts and consortia	351,057	-146,894
Liabilities from subsidiaries and
liabilities from participation companies	19,762	-19,184
Other liabilities	-5,162	-52,012
Current provisions	125,811	35,231
Cash-flow from operating activities	690,417	1,115,097
Purchase of financial assets	-47,833	-54,448
Purchase of property, plant, equipment and intangible assets	-553,843	-508,725
Gains/losses on disposal of non-current assets	43,286	31,980
Disposals of non-current assets (carrying value)	102,883	99,337
Change in other cash clearing receivables	-58,772	-11,289
Change in scope of consolidation	-9,277	5,881
Cash-flow from investing activities	-523,556	-437,264
Change in bank borrowings	37,999	-161,171
Change in bonds	25,000	-50,000
Change in non-current provisions	0	-61,981
Change in liabilities from finance leases	-12,491	-32,391
Change in other cash clearing liabilities	546	4,229
Change due to acquisitions of non-controlling interests	-9,247	-15,929
Distribution and withdrawals from partnerships	-62,004	-69,074
Cash-flow from financing activities	-20,197	-386,317
Cash-flow from operating activities	690,417	1,115,097
Cash-flow from investing activities	-523,556	-437,264
Cash-flow from financing activities	-20,197	-386,317
Net change in cash and cash equivalents	146,664	291,516
Cash and cash equivalents at the beginning of the year	1,782,951	1,491,373
Change in cash and cash equivalents due to currency translation	22,837	62
Cash and cash equivalents at the end of the period	1,952,452	1,782,951
Interest paid	53,705	61,199
Interest received	57,690	56,885
Taxes paid	107,909	112,435
Dividends received	39,429	33,392

Statement of changes in Equity for the financial year 2010

	Share capi tal	Capi tal reserves	Retain ed earning s
	T€	T€	T€
Balance as of 1.1.2009	114,000	2,311,384	530,342
Net income	0	0	161,457
Net income recognised directly in equity	0	0	-11,892
Total comprehensive income	0	0	149,565
Subtotal	114,000	2,311,384	679,907
Change in equity due to capital consolidation	0	0	0
Distribution of dividends1)	0	0	-62,700
Balance as of 31.12.2009	114,000	2,311,384	617,207

	Share capi tal T€	Capi tal reserves T€	Retain ed earning s T€
Balance as of 1.1.2010	114,000	2,311,384	617,207
Net income	0	0	174,857
Net income recognised directly in equity	0	0	-10,707
Total comprehensive income	0	0	164,150
Subtotal	114,000	2,311,384	781,357
Transactions concerning non-controlling interests	0	0	-40
Distribution of dividends2)	0	0	-57,000
Balance as of 31.12.2010	114,000	2,311,384	724,317

Total equity T€	Non controlling interests T€	Group equity T€	Foreign currenc y reserve T€	Hedging reserve T€
2,978,981	141,424	2,837,557	-20,414	-97,755
184,611	23,154	161,457	0	0
11,113	-2,760	13,873	-6,706	32,471
195,724	20,394	175,330	-6,706	32,471
3,174,705	161,818	3,012,887	-27,120	-65,284
-6,567	-6,567	0	0	0
-69,074	-6,374	-62,700	0	0
3,099,064	148,877	2,950,187	-27,120	-65,284

Total equity T€	Non controlling interests T€	Group equity T€	Foreign currenc y reserve T€	Hedging reserve T€
3,099,064	148,877	2,950,187	-27,120	-65,284
188,378	13,521	174,857	0	0
21,981	-1,125	23,106	41,825	-8,012
210,359	12,396	197,963	41,825	-8,012
3,309,423	161,273	3,148,150	14,705	-73,296
-14,981	-14,941	-40	0	0
-62,004	-5,004	-57,000	0	0
3,232,438	141,328	3,091,110	14,705	-73,296

consolidated statement of fixed assets

as of 31 december 2010

acquisition and production costs accumulated depreciation carrying values

	balanc e as of 31.12.2009 t€	chang es in scope of con solida tion T€	cur renc y tran s lation t€	balanc e as of 1.1.2010 t€	addi tions t€	Tran s fers t€
I. Intangible Assets
1. Concessions; industrial property rights
and similar rights	122,815	13,322	1,771	137,908	16,527	3,308
2. Goodwill	536,747	74,503	9,282	620,532	0	0
3. Development costs	16,729	0	299	17,028	5,596	0
4. Advances paid	3,372	0	0	3,372	123	-3,308
	679,663	87,825	11,352	778,840	22,246	0
II. Tangible Assets
1. Properties, land rights equivalent to
real property; buildings including buildings
on third-party property	1,187,135	10,546	10,042	1,207,723	45,322	16,168
2. Technical equipment and machinery	2,144,240	2,062	39,109	2,185,411	256,619	75,623
3. Other facilities, furniture and
fixtures and office equipment	791,870	569	8,681	801,120	109,627	3,782
4. Advances paid and facilities
under construction	309,881	1,821	0	311,702	120,029	-327,464
	4,433,126	14,998	57,832	4,505,956	531,597	-231,891
III. Investment Property	265,116	0	0	265,116	0	0
	5,377,905	102,823	69,184	5,549,912	553,843	-231,8913)

1) Of this amount, impairments of T€ 71,627 (previous year: T€ 46,431)

2) Of this amount, reversal of the depreciation T€ 3,206 (previous year: T€ 0)

3) Reclassification as assets held for sale.

consolidated statement of fixed assets as of 31 december 2009

acquisition and production costs accumulated depreciation carrying values

	balanc e as of 31.12.2008 t€	chang es in scope of con solida tion T€	cur renc y tran s lation t€	balanc e as of 1.1.2009 t€	addi tions t€	Tran s fers t€	disposals
I. Intangible Assets
1. Concessions; industrial property rights
and similar rights	96,195	33,611	-23	129,783	6,310	-10,030
2. Goodwill	498,456	35,865	1,232	535,553	4,680	0
3. Development costs	0	15,199	0	15,199	1,530	0
4. Advances paid	78	3,047	0	3,125	325	0
	594,729	87,722	1,209	683,660	12,845	-10,030
II. Tangible Assets
1. Properties, land rights equivalent to
real property; buildings including buildings
on third-party property	1,046,245	1,528	1,011	1,048,784	64,083	98,035
2. Technical equipment and machinery	2,005,363	34,960	4,923	2,045,246	171,000	49,251
3. Other facilities, furniture and
fixtures and office equipment	800,473	13,308	-1,341	812,440	83,285	-33,271
4. Advances paid and facilities
under construction	233,998	3,597	-1,241	236,354	177,512	-103,985
	4,086,079	53,393	3,352	4,142,824	495,880	10,030
III. Investment Property	301,117	0	-1,566	299,551	0	0
	4,981,925	141,115	2,995	5,126,035	508,725	0

1) Of this amount, impairments of T€ 46,431 (previous year: T€ 36,075)

2) Of this amount, reversal of the depreciation T€ 0 (previous year: T€ 2,110)

acquisition and production costs accumulated depreciation carrying values

disposals t€	balanc e as of 31.12.2010 t€	balanc e as of 31.12.2009 t€	chang es in scope of con solida tion T€	cur renc y tran s lation t€	addi tions1) t€	tran sfers t€	Dispo sals2) t€	balanc e as of 31.12.2010 t€	values 31.12.2010 t€	values 31.12.2009 t€
26,115	131,628	81,112	1,579	1,395	23,027	0	25,935	81,178	50,450	41,703
203	620,329	102,495	0	18	49,536	0	203	151,846	468,483	434,252
0	22,624	0	0	0	6,057	0	0	6,057	16,567	16,729
0	187	0	0	0	0	0	0	0	187	3,372
26,318	774,768	183,607	1,579	1,413	78,620	0	26,138	239,081	535,687	496,056
17,907	1,251,306	381,702	-277	2,556	50,049	0	14,310	419,720	831,586	805,433
121,389	2,396,264	1,351,759	-5,529	23,544	208,260	258	96,727	1,481,565	914,699	792,481
72,798	841,731	553,225	-2,051	5,703	93,409	-258	60,109	589,919	251,812	238,645
0	104,267	0	0	0	0	0	0	0	104,267	309,881
212,094	4,593,568	2,286,686	-7,857	31,803	351,718	0	171,146	2,491,204	2,102,364	2,146,440
45,301	219,815	151,996	0	-872	5,404	0	10,237	146,291	73,524	113,120
283,713	5,588,151	2,622,289	-6,278	32,344	435,742	0	207,521	2,876,576	2,711,575	2,755,616

acquisition and production costs accumulated depreciation carrying values

disposals t€	balanc e as of 31.12.2009 t€	balanc e as of 31.12.2008 t€	chang es in scope of con solida tion T€	cur renc y tran s lation t€	addi tions1) t€	tran sfers t€	Dispo sals2) t€	balanc e as of 31.12.2009 t€	values 31.12.2009 t€	values 31.12.2008 t€
3,248	122,815	54,880	17,804	45	16,764	-6,504	1,877	81,112	41,703	41,315
3,486	536,747	76,960	203	9	25,401	0	78	102,495	434,252	421,496
0	16,729	0	0	0	0	0	0	0	16,729	0
78	3,372	0	0	0	0	0	0	0	3,372	78
6,812	679,663	131,840	18,007	54	42,165	-6,504	1,955	183,607	496,056	462,889
23,767	1,187,135	326,252	-1,562	744	45,084	18,163	6,979	381,702	805,433	719,993
121,257	2,144,240	1,193,515	24,902	6,487	212,087	1,783	87,015	1,351,759	792,481	811,848
70,584	791,870	521,614	10,026	258	94,417	-13,442	59,648	553,225	238,645	278,859
0	309,881	0	0	0	0	0	0	0	309,881	233,998
215,608	4,433,126	2,041,381	33,366	7,489	351,588	6,504	153,642	2,286,686	2,146,440	2,044,698
34,435	265,116	157,707	0	-190	7,647	0	13,168	151,996	113,120	143,410
256,855	5,377,905	2,330,928	51,373	7,353	401,400	0	168,765	2,622,289	2,755,616	2,650,997

Notes to the Consolidated Financial Statements 31.12.2010 of STRABAG SE, Villach

Basic Principles

STRABAG SE is one of Europe's leading construction groups. The company has its headquarters in Villach, Austria. From its core markets of Austria and Germany, STRABAG is present via its numerous subsidiaries in all countries of Eastern and South-East Europe including Russia, in selected markets in Western Europe and the Arabian Peninsula, as well as in the project business in Africa, Asia and the Americas. STRABAG's activities span the entire construction industry (Building Construction & Civil Engineering, Transportation Infrastructures, Tunnelling, construction-related services) and cover the entire value-added chain in the field of construction.

The consolidated financial statements of STRABAG SE at the reporting date 31 December 2010, were drawn up under application of Section 245a Paragraph 2 of the Austrian Commercial Code (UGB) in accordance with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), including the interpretations of the International Financial Reporting Interpretations Committee (IFRIC).

Applied were exclusively those standards and interpretations adopted by the European Commission before the reporting deadline and published in the Official Journal of the European Union. Further reporting requirements of Section 245a Paragraph 1 of the Austrian Commercial Code (UGB) were fulfilled as well.

In addition to a statement of comprehensive income, the financial statements include a cash-flow statement in accordance with IAS 7 and a statement of changes in equity (IAS 1). The disclosures in the Notes also contain a segment reporting section in accordance with IFRS 8.

In order to improve the clarity of the representation, various items in the balance sheet and the income statement have been combined. These items have been shown separately and are explained in the group notes. The income statement has been drawn up in accordance with the nature of expense method.

The consolidated financial statements were drawn up in T€. The presentation in T€ may result in rounding differences.

Changes in Accounting Policies

The IASB has made amendments to the existing IFRS and passed several new IFRS and IFRIC, which are also adopted from the European Commission. Application became mandatory on 1 January 2010.

	Applica tion for financial years which begin on or after (acc ording to IASB)	Applica tion for financial years which begin on or after (acc ording to EU end orsement)
IFRS 1 First-time Adoption of IFRS	1.7.2009	1.1.2010
IFRS 1 Amendments to Additional Exemptions for First-time Adopters	1.1.2010	1.1.2010
IFRS 2 Amendments for Group Cash-settled Share-based Payment Transactions	1.1.2010	1.1.2010
IFRS 3 Business Combinations (adapted 2008)	1.7.2009	1.7.2009
IAS 27 Consolidated and Separate Financial Statements under IFRS (amended)	1.7.2009	1.7.2009
IAS 39 Recognition an Measurement of Eligible Hedged Items	1.7.2009	1.7.2009
IFRIC 12 Service Concession Arrangements	1.1.2008	30.3.2009
IFRIC 15 Agreements for the Construction of Real Estate	1.1.2009	1.1.2010
IFRIC 16 Hedges of a Net Investment in a Foreign Operation	1.10.2008	1.7.2009
IFRIC 17 Distributions of Non-cash Assets to Owners	1.7.2009	1.11.2009
IFRIC 18 Transfers of Assets from Customers	1.7.2009	1.11.2009
Amendments to various IFRS under the 2009 annual improvement process	1.1.2009	1.1.2010

First-time application of the above-stated IFRS results in the following changes in comparison to 31 December 2009.

IFRS 3 and IAS 27: Phase II of the Capital Consolidation project reworked the rules for capital consolidation. The most important changes are that IFRS 3 allows an accounting policy choice to measure non-controlling interest at fair value (full goodwill method), transaction costs must be recognised in profit or loss, no goodwill adjustments are possible with post-acquisition reassessment of the purchase price, and step acquisitions result in a remeasurement of the previously recognised assets and liabilities in profit or loss. Furthermore, all transactions with non-controlling interests are recognised directly in equity (see also item methods of consolidation).

IFRIC 12 Service Concession Arrangements: IFRIC 12 regulates the accounting of rights and duties from service concession agreements. If the company has an unconditional contractual right to receive a payment, a financial asset is recognised (financial asset model). If the company merely has the right to charge users a usage fee, an intangible asset is recognised (intangible asset model). STRABAG already applies IFRIC 12 for the classification of assets. No material changes therefore result from mandatory application of this interpretation.

IFRIC 15 Agreements for the Construction of Real Estate: IFRIC 15 puts into concrete terms the concept of construction contracts according to IAS 11 and reconciles revenue recognition according to IAS 18 with agreements for the construction of real estate. IFRIC 15 states that IAS 11 is applicable only if the buyer has the ability to specify the major structural elements of the real estate design – if not, IAS 18 applies.

The first-time application of the IFRS standards mentioned had secondary consequences on STRABAG SE's consolidated financial statements as of 31 December 2010 as the changes were applicable only in isolated cases. There were no changes to the accounting policies.

Future Changes of Financial Reporting Standards

The IASB and the IFRIC approved further standards and interpretations. However, these were neither required to be applied in the 2010 financial year nor adopted by the European Commission. The amendments affect the following standards and interpretations:

	Applica tion for financial years which begin on or after (acc ording to IASB)	Applica tion for financial years which begin on or after (acc ording to EU en dorsement)
IFRS 7 Disclosures in the notes to the financial statements regar
ding the transfer of financial instruments	1.7.2011	n/a
IFRS 9 Financial Instruments	1.1.2013	n/a
IAS 12 Deferred taxes: realisation of the carrying amount of an asset	1.1.2012	n/a
IAS 24 Related Party Disclosures (amended)	1.1.2011	1.1.2011
Amendment to IAS 32 about Classification of Rights Issues	1.2.2010	1.2.2010
IFRIC 14 Prepayment of a Minimum Funding Requirement	1.1.2011	1.1.2011
IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments	1.7.2010	1.7.2010
Amendments to various IFRS under the 2010 annual improvement	generally	1.7.2010/
process	1.7.2010	1.1.2011

n/a: endorsment process is still in progress

Consequences for the consolidated financial statements are expected especially from the application of the following standards and interpretations:

IFRS 9: The revised IFRS 9 adds new requirements for the recognition and measurement of financial assets. Essentially, the categories for recognising and measuring financial assets were restructured. A reclassification of assets is required if the entity's business model changes. The new rules also change the requirements for the subsequent measurement of financial liabilities if they are not measured at amortised cost.

Early application of the new standards is not planned.

Scope of Consolidation

The Consolidated Financial Statements as of 31 December 2010 include STRABAG SE as well as all major domestic and foreign subsidiaries where STRABAG SE either directly or indirectly holds a majority of the voting rights. Major associated companies and joint ventures are reported in the balance sheet using the equity method (investments in associates).

Group companies which are of minor importance for the purpose of giving a true and fair view of the financial position, financial performance and cash-flows of the group are not consolidated.

Subsidiaries included in the 2010 consolidated financial statements are given in the list of subsidiaries, associated companies and investments.

The financial year for all consolidated and associated is identical with the calendar year.

The number of consolidated companies changed in the 2010 financial year as follows:

	consolida tion	equity method
Situation on 31.12.2009	316	14
First-time inclusions in year under report	21	2
First-time inclusions in year under
report due to merger/accretion	12	0
Merger/accretion in year under report	-33	0
Exclusions in year under report	-21	-2
Situation on 31.12.2010	295	14

Additions to Scope of Consolidation

The following companies formed part of the scope of consolidation for the first time on the reporting date:

Compan y	direct stake %	Date of ac quisition or founda tion
Consolidation
BrennerRast GmbH, Vienna	100.00	1.1.20101)
Donnersberger Höfe Ost GmbH, Düsseldorf	65.00	22.1.20103)
Donnersberger Höfe West GmbH, Düsseldorf	65.00	22.1.20103)
Forum Mittelrhein Koblenz Generalübernehmergesellschaft mbH &
Co.KG, Oststeinbek	51.00	8.7.2010
Forum Mittelrhein Koblenz Kultur GmbH & Co. KG, Hamburg	51.00	13.4.2010
ILBAU GmbH, Vienna	100.00	1.1.20101)
ILBAU MANAGEMENT GMBH, Vienna	100.00	24.12.2010
Kalksteinwerk Eigenrieden GmbH, Rodeberg	100.00	8.11.2010
KMG - KLIPLEV MOTORWAY GROUP A/S, Copenhagen	100.00	3.2.2010
Magyar Asfalt Kft., Budapest	100.00	1.1.20101)
Rimex Gebäudemanagement GmbH, Ulm	70.00	28.9.2010
STRABAG ABU DHABI LLC, Abu Dhabi	100.00	1.1.20101)
STRABAG Energietechnik GmbH & Co KG, Vienna	100.00	27.10.2010
STRABAG Projektutveckling AB, Stockholm	100.00	6.7.20103)
STRABAG Property and Facility Services a.s., Prague	100.00	15.10.2010
STRABAG Property and Facility Services GmbH, Vienna	100.00	1.1.20101)
STRABAG Scandinavia AB, Stockholm	100.00	6.7.2010
TSS Splitt- und Schotterwerke Thüringen Beteiligungs GmbH,
Bad Langensalza	100.00	1.1.2010
Viamont DSP a.s., Usti nad Labem	100.00	15.2.2010
Viedenska Brana s.r.o., Bratislava	100.00	19.8.2010
Züblin Nederland BV, Vlaadingen	100.00	1.1.20101)

	direct stake	Date of ac quisition
Compan y	%	or founda tion
Merger/Accretion2)
Arkil Asphalt Brandenburg GmbH, Schleswig	100.00	1.1.2010
Daferner Beteiligungs-GmbH & Co KG, Senden	100.00	1.1.2010
Daferner Beteiligungsverwaltungs GmbH, Elchingen	100.00	1.1.2010
ERA Epitö Kft., Budapest	100.00	1.1.2010
H-Projekt II.Ingatlanfejlesztö Kft., Budapest	100.00	1.1.2010
Kirchhoff Projektgesellschaft mbH & Co. KG, Leinfelden-Echterdingen	100.00	1.1.2010
Kirchhoff Umwelttechnik GmbH, Senden	100.00	1.1.2010
LOGISTIK SÜD GmbH, Langenargen	100.00	1.1.2010
MBSZ Magyar Betonpumpa Kft., Budapest	100.00	1.1.2010
MINKO Mineral- und Baustoff-Kontor GmbH, Hartmannsdorf	100.00	1.1.2010
Mobil Baustoff Verwaltungsgesellschaft mbH, Ditzingen	100.00	1.1.2010
SALGO Shopping Center Kft., Budapest	100.00	1.1.2010
at-equity
Züblin International Qatar LLC, Doha	49.00	1.1.20101)
DirectRoute (Limerick) Holdings Limited, Fermoy	20.00	1.1.20101)

Viamont DSP a.s.

With the purchase agreement from 21 December 2009, STRABAG SE acquired a further 50 % of the shares in Viamont DSP a.s., Usti nad Labem, Czech Republic. 50 % of the company had already been owned by the STRABAG Group. Viamont is one of Eastern Europe's leading rail construction companies. With this acquisition, STRABAG expands its market presence in these markets with the field of railway construction.

Approval by the cartel authorities was delivered on 15 February 2010.

The purchase price is preliminary allocated to assets and liabilities as follows:

	Via mont T€
Acquired assets and liabilities
Goodwill	65,946
Other non-current assets	31,225
Current assets	100,618
Non-current liabilities	-7,773
Current liabilities	-73,944
Purchase price	116,072
Less non-cash-effective purchase price component	-74,218
Acquired cash and cash equivalents	-41,844
Net cash outflow from the acquisition	10

In accordance with the new rule regarding step acquisitions as provided by IFRS 3 and IAS 27, the previous interest in Viamont DSP a.s. is measured through profit or loss at the fair value in the amount of T€ 24,600 to the fair value of 50 % of T€ 50,714.

For the acquisition of 100 % of Viamont DSP a.s., a premium for control was considered in the purchase price for the additional 50 % interest. As synergy effects in the group may only be used after organisational measures, these synergies are not yet included in the value-in-use calculation for goodwill. This resulted in a charge for goodwill impairment in the amount of T€ 14,000.

The result of the initial consolidation of Viamont DSP a.s. was a positive earnings effect in the amount of T€ 10,600.

The remaining goodwill can be assigned to the expansion of the market shares and the related growth opportunities in railway construction.

Other acquisitions

To further strengthen the area-wide supply from quarries in Germany, STRABAG acquired the remaining shares in TSS Splitt- und Schotterwerke Thüringen Beteiligungs GmbH and in Kalksteinwerk Eigenrieden GmbH with an effective date of acquisition of 1 April 2010 and 8 November 2010, respectively.

14 1) Due to its increased business volume, the company was included in the scope of consolidation of the group for the first time effective 1 January 2010. The foundation/ acquisition of the company occurred before 1 January 2010.

2) The companies listed under "Merger" were with/accrued on already fully consolidated companies and as such are at once represented as additions to and removals from the scope of consolidation.

On 16 July 2010, STRABAG acquired a 70 % majority interest in the Rimex Gebäudemanagement GmbH, Ulm. The acquisition of Rimex, a specialist in maintenance services for landscaping and exteriors, helps to expand the service spectrum in the infrastructural facility management segment.

The closing was effected on 28 September 2010.

With the acquisition of the Czech Republic's ECM Facility a.s. in September 2010, STRABAG Property and Facility Services expands its offer in the services sector. ECM Facility operates nationwide in the Czech Republic and is among the country's leading full-service facility maintenance providers. In 2009, the company employed 220 persons and generated revenues of about € 16 million.

The closing took place on 15 October 2010.

Effective 27 October 2010, STRABAG acquired 100 % of h s energieanlagen gmbH & co kg. STRABAG had previously indirectly held a stake of 43 %. At the beginning of 2011, the company was renamed STRABAG Energietechnik GmbH & Co KG. With this acquisition, STRABAG further expands its environmental technology activities in the field of fluidisation bed technology.

others The purchase price is preliminary allocated to assets and liabilities as follows:

	T€
Acquired assets and liabilities
Goodwill	8,557
Other non-current assets	14,216
Current assets	36,976
Increase in non-controlling interest in equity	-170
Non-current liabilities	-1,479
Current liabilities	-30,989
Purchase price	27,111
Less non-cash-effective purchase price component	-12,172
Acquired cash and cash equivalents	-9,166
Net cash outflow from the acquisition	5,773

Purchase price adjustments for acquisitions from the previous year may result in minor changes in assets and liabilities.

The consolidation of companies included for the first time took place at the date of acquisition or the nearest reporting date provided that this had no significant difference to an inclusion at the date of acquisition.

In the 2010 financial year, negative goodwill in the amount of T€ 778 (previous year: T€ 931) occurred. This amount is reported under other operating income.

Assuming a fictitious first-time consolidation on 1 January 2010 for all acquisitions in the 2010 financial year, the consolidated revenue would amount to T€ 12,409,537 and consolidated profit would have changed by a total of T€ -10.

All companies which were consolidated for the first time in 2010 contributed T€ 324,229 to revenue and T€ 2,399 to profit.

Acquisitions after reporting date

In March 2011, STRABAG announced the acquisition of two established Swiss companies, Brunner Erben Holding AG, Zurich, and Astrada AG, Subingen (Solothurn).

Brunner Erben Holding AG is a construction company with a regional focus in Zurich and eastern Switzerland and offices in Zurich, Kreuzlingen and St. Gallen. The previously family-owned company is active on the Swiss market in the fields of civil engineering (special foundation engineering and road construction), building construction (incl. wood building) and transport and has smaller investments in the fields of construction materials. The company generates an output volume of about CHF 210 million (€ 160 million). The approximately 700 employees will continue their work within the STRABAG Group. The Brunner Erben brand name and offices will remain.

Astrada's regional focus is on the cantons of Solothurn and Bern. The company maintains six offices and is active with about 350 employees in the fields of road and ground-level construction, railway and civil engineering, and industrial and residential construction. Astrada's output volume amounts to about CHF 110 million (€ 85 million). STRABAG will also take on employees from Astrada and maintain the brand name.

The approval of the Swiss competition commission was awarded in March 2011. As the competition commission's approval was not awarded until just before the end of the preparation of the annual accounts, it was not possible to perform a preliminary purchase price allocation.

Effective 1 January 2011, the companies BFB Behmann Feuerfestbau GmbH, Bremen, and SFB Behmann Feuerfestbau GmbH, Schwedt/Oder, were acquired for a purchase price of about € 9 million.

Also effective 1 January 2011, STRABAG acquired all shares of K. H. Gaul GmbH & Co. KG, Sprendlingen. The purchase price is expected to amount to € 28.8 million. The company is to be included in the Transportation Infrastructures segment. The acquisition serves to strengthen the construction materials activities in the German states of Rhineland-Pfalz and Hessen. A purchase price allocation could not be performed as the annual financial statements of the Gaul Group were not available before the end of the preparation of the annual accounts.

Disposals from the Scope of Consolidation

As of 31 December 2010, the following companies were no longer included in the scope of consolidation:

Disposals from the Scope of Consolida tion
BITUNOVA UKRAINA TOW, Brovary	Fell below significant level
"Geschäfts- und Bürohaus Sterneckstraße Errichtungs- und Betriebs GmbH", Vienna	Fell below significant level
"IT" Ingenieur- und Tiefbau GmbH, Kobern	Fell below significant level
"Wiebau" Hoch-, Tief- und Strassenbau- Gesellschaft m.b.H., Vienna	Fell below significant level
BUSINESS BOULEVARD Errichtungs- und Betriebs GmbH, Vienna	Fell below significant level
FUSSENEGGER Hochbau und Holzindustrie GmbH, Dornbirn	Fell below significant level
Industrielles Bauen Betreuungsgesellschaft mbH, Stuttgart	Fell below significant level
LPRD (LESZCZYNSKIE PRZEDSIEBIORSTWO ROBOT DROGOWO)-MOSTOWYCH
Sp.z o.o., Leszno	Fell below significant level
Mischek Bauträger Service GmbH, Vienna	Fell below significant level
Mischek Leasing eins Gesellschaft m.b.H., Vienna	Fell below significant level
Möbius Construction Ukraine Ltd., Odessa	Fell below significant level
Passivhaus Kammelweg Bauträger GmbH, Vienna	Fell below significant level
STRABAG Dubai LLC, Dubai	Fell below significant level
STRABAG Ras Al Khaimah LLC, Ras Al Khaimah	Fell below significant level
STRABIL Strabag Bildung im Lauenburgischen GmbH, Cologne	Fell below significant level
UNIPROJEKT Bau- und Innenbau GmbH, Vienna	Fell below significant level
Vereinigte Asphaltmischwerke Gesellschaft m.b.H. & Co KG, Spittal/Drau	Fell below significant level
WMB Drogpud Sp. z o.o., Czestochowa	Fell below significant level
Wohnen am Krautgarten Bauträger GmbH, Vienna	Fell below significant level
Zentrum Rennweg S-Bahn Immobilienentwicklung GmbH, Vienna	Fell below significant level
Züblin Hrvatska d.o.o., Zagreb	Fell below significant level
Merger/Acc retion1)
"Daheim" Bau- und Wohnungseigentumsgesellschaft m.b.H., Vienna	merger
A.H.I. - BAU Allgemeine Hoch- und Ingenieurbau-Gesellschaft mit beschränkter Haftung,
Cologne	merger
August & Jean Hilpert GmbH & Co. KG, Nürnberg	merger
Augustowskie Przedsiebiorstwo Drogowe S.A., Augustow	merger
Eggstein AG, Kriens	merger
Erschließungsgesellschaft "Am Schloßberg" Pantelitz GmbH, Neubrandenburg	merger
Ezel Bauunternehmung Sindelfingen GmbH, Sindelfingen	merger
Jakob Gärtner GmbH, Friedberg	merger
Johannes Sienknecht GmbH & Co.KG, Neumünster	merger
Josef Riepl Unternehmen für Hoch- und Tiefbau GmbH, Regensburg	merger
KIMAG GmbH, Leinfelden-Echterdingen	merger
Kirchner International GmbH, Bad Hersfeld	merger
PREFIN a.s., Chrudim	merger
Rodinger Ingenieurbau GmbH, Roding	merger
Sterkovny spol. s r.o. Dolni Benesov, Dolni Benesov	merger
STRABAG AG, Zurich	merger
STRABAG Facility Management GmbH, Spittal/Drau	merger
STRABAG IMMOBILIJA d.o.o., Laibach	merger

1) The companies listed under "Merger" were merged with already fully consolidated companies or, as a result of accretion, already formed part of fully consolidated companies.

Útépitögépek Kft., Budapest	merger
WITTA BAU AG, Zurich	merger
Züblin Romania S.R.L, Bucharest	merger

at-equity Viamont DSP a.s., Usti nad Labem consolidation Slokenbeka SIA, Milzkalne Fell below significant level

Deconsolidation led to an insignificant disposal of assets and liabilities.

Methods of Consolidation

The financial statements of the domestic and foreign companies included in the scope of consolidation are drawn up in accordance with uniform methods of accounting and valuation. The annual financial statements of the domestic and foreign group companies are adapted accordingly.

Capital consolidation is made in accordance with the stipulations contained in IFRS 3. All assets and liabilities of the subsidiary companies are recorded at the fair values. The proportional equity thereby determined is offset by the carrying value of the investment. A difference on the assets side, which is allotted to special, identifiable intangible assets acquired in the course of capital consolidation, is recognised separately from goodwill.

If a useful life can be allocated to these assets, the planned amortisation is made over the projected useful life. Intangible assets with an undefined useful life are tested annually for their fair value and amortised if necessary on the basis of an impairment test.

Any remaining differences on the assets side are capitalised as goodwill and submitted once annually to an impairment test in accordance with IAS 36. The option of recognising non-controlling interest at fair value (full goodwill method) is not applied.

In determining the cost of an acquisition, certain components of the purchase price are recognised at fair value at the time of initial consolidation. Later deviations from this value are recognised in profit or loss. In the revised IFRS 3, transaction costs are no longer recognised as the cost of acquisition but are immediately recognised directly in profit or loss.

In the 2010 financial year, T€ 74,503 in goodwill arising from capital consolidation were recognised as assets and impaired in the amount of T€ 49,536 (see the information regarding the initial consolidation of Viamont DSP a.s., Ústí nad Labem).

Negative goodwill stemming from capital consolidation is recorded directly through profit or loss.

In a step acquisition, assets and liabilities are recognised at fair value at the acquisition date. Already existing interests have to be revalued at fair value through profit and loss. The goodwill is determined at the time of acquisition.

Value differences resulting from the acquisition or sale of investments in subsidiaries without the acquisition or loss, respectively, of a controlling interest are recognised in full directly in equity. The revised IAS 27 no longer permits the recognition of goodwill.

The same principles of capital consolidation are applied to investments included under the equity method as in the case of consolidated companies, whereby the respective last available financial statements serve as the basis for the equity method. A goodwill of T€ 0 (previous year: T€ 1,702) results from the first-time application of the equity method of the newly acquired companies.

Within the framework of debt consolidation, outstanding trade receivables, loans and other receivables are offset with the corresponding liabilities and provisions of the subsidiaries included in the consolidated financial statements.

Expenses and revenues from intra-group transactions have been eliminated. Results incurred from intra-group transactions that are recognised in the non-current and current assets have been eliminated if they are material.

Non-controlling interests in equity and profits of companies controlled by the parent company are shown separately in the consolidated financial statements.

The necessary tax deferrals are made for consolidation procedures.

The following list shows the consolidated companies included in the consolidated financial statement

		nominal capi tal	direct stake
austria		T€/TATS	%
"A-WAY Infrastrukturprojektentwicklungs- und -betriebs GmbH", Spittal an der Drau		35	100.00
"DOMIZIL" Bauträger GmbH, Vienna		727	100.00
"Filmforum am Bahnhof" Errichtungs- und Betriebsgesellschaft m.b.H., Vienna	TATS	3,000	100.00
"SBS Strabag Bau Holding Service GmbH", Spittal an der Drau		35	100.00
"Wiener Heim" Wohnbaugesellschaft m.b.H., Vienna		741	100.00
"Wohngarten Sensengasse" Bauträger GmbH, Vienna		35	55.00
ABR Abfall Behandlung und Recycling GmbH, Schwadorf		37	100.00
Asphalt & Beton GmbH, Spittal an der Drau		36	100.00
AUSTRIA ASPHALT GmbH & Co OHG, Spittal an der Drau	TATS	500	100.00
Bau Holding Beteiligungs AG, Spittal an der Drau		48,000	100.00
Baukontor Gaaden Gesellschaft m.b.H., Gaaden		36	100.00
Bitumen Handelsgesellschaft m.b.H. & Co KG, Loosdorf	TATS	3,000	100.00
BITUNOVA Baustofftechnik Gesellschaft m.b.H., Spittal an der Drau	TATS	2,000	100.00
BLT Baulogistik und Transport GmbH, Vienna		36	100.00
BMTI-Baumaschinentechnik International GmbH, Trumau		1,454	100.00
BrennerRast GmbH, Vienna		35	100.00
BRVZ Bau- Rechen- u. Verwaltungszentrum Gesellschaft m.b.H., Spittal an der Drau		37	100.00
Bug-AluTechnic GmbH, Vienna		5,000	100.00
Center Communication Systems GmbH, Vienna		727	100.00
Diabaswerk Saalfelden Gesellschaft m.b.H., Saalfelden am Stein.Mee		363	100.00
Eckstein Holding GmbH, Spittal an der Drau		73	100.00
EFKON AG, Raaba		12,234	75.59
ERMATEC Maschinen Technische Anlagen Gesellschaft m.b.H., Vienna		1,897	100.00
F. Lang u. K. Menhofer Baugesellschaft m.b.H. & Co. KG, Eggendorf		1,192	100.00
Fachmarktzentrum Arland Errichtungs- und Vermietungsgesellschaft mbH, Vienna	TATS	500	100.00
Goldeck Bergbahnen GmbH, Spittal an der Drau		363	100.00
ILBAU GmbH, Vienna		36	100.00
Ilbau Liegenschaftsverwaltung GmbH, Spittal an der Drau		4,500	100.00
ILBAU MANAGEMENT GMBH, Vienna		35	100.00
InfoSys Informationssysteme GmbH, Spittal an der Drau		363	94.90
Innsbrucker Nordkettenbahnen Betriebs GmbH, Innsbruck		35	51.00
KAB Straßensanierung GmbH & Co KG, Spittal an der Drau		133	50.60
Kanzel Steinbruch Dennig Gesellschaft mit beschränkter Haftung, Gratkorn	TATS	500	75.00
Leitner Gesellschaft m.b.H., Hausmening	TATS	4,800	100.00
M5 Beteiligungs GmbH, Vienna		70	100.00
M5 Holding GmbH, Vienna		35	100.00
Mineral Abbau GmbH, Spittal an der Drau		36	100.00
Mischek Systembau GmbH, Vienna		1,000	100.00
Mobil Baustoffe GmbH, Gemeinde Reichenfels		50	100.00
OAT - Bohr- und Fugentechnik Gesellschaft m.b.H., Spittal an der Drau	TATS	1,000	51.00
Osttiroler Asphalt Hoch- und Tiefbauunternehmung GmbH, Lavant i. Osttirol		36	80.00
Raststation A 6 GmbH, Vienna	TATS	500	100.00
RBS Rohrbau-Schweißtechnik Gesellschaft m.b.H., Linz		291	100.00
SF Bau vier GmbH, Vienna		35	100.00
Stadtbaumeister Architekt Franz Böhm GmbH, Vienna		36	100.00
Storf Hoch- und Tiefbaugesellschaft m.b.H., Reutte		727	100.00
STRABAG AG, Spittal an der Drau		12,000	100.00
STRABAG Anlagentechnik GmbH, Thalgau		1,000	100.00
STRABAG Bau GmbH, Vienna		1,800	100.00

		nominal capi tal	direct stake
austria		T€/TATS	%
STRABAG Energietechnik GmbH & Co KG formerly h s energieanlagen gmbh & co kg, Vienna		35	100.00
Strabag Liegenschaftsverwaltung GmbH, Linz		4,500	100.00
STRABAG Property and Facility Services GmbH, Vienna		35	100.00
STRABAG SE, Villach		114,000	100.00
TPA Gesellschaft für Qualitätssicherung und Innovation GmbH, Vienna		37	100.00
Züblin Baugesellschaft m.b.H., Vienna	TATS	35,000	100.00
Züblin Holding GesmbH, Vienna		55	100.00
Züblin Spezialtiefbau Ges.m.b.H., Vienna		1,500	100.00
		nominal	direct
German y		capi tal T€/Tdem	stake %
"GfB" Gesellschaft für Bauwerksabdichtungen mbH, Kobern-Gondorf		205	100.00
Alpines Hartschotterwerk Georg Kässbohrer & Sohn GmbH & Co. KG, Senden		1,310	100.00
Baumann & Burmeister GmbH, Halle/Saale		51	100.00
Bauträgergesellschaft Olande mbH, Hamburg		25	51.00
Bauunternehmung Ohneis Gesellschaft mit beschränkter Haftung, Straubing	TDEM	100	100.00
BBS Baustoffbetriebe Sachsen GmbH, Hartmannsdorf	TDEM	30,000	100.00
becker bau GmbH u. Co. KG, Bornhöved		3,100	100.00
BHG Bitumenhandelsgesellschaft mbH, Hamburg		26	100.00
BITUNOVA GmbH & Co. KG, Hamburg		1	100.00
Blees-Kölling-Bau GmbH, Cologne	TDEM	2,500	100.00
BMTI-Baumaschinentechnik International GmbH, Cologne		307	100.00
BRVZ Bau- Rechen- und Verwaltungszentrum GmbH, Cologne		30	100.00
CLS Construction Legal Services GmbH, Cologne		25	100.00
Deutsche Asphalt GmbH, Cologne		28	100.00
Donnersberger Höfe Ost GmbH, Düsseldorf		25	65.00
Donnersberger Höfe West GmbH, Düsseldorf		25	65.00
DYWIDAG Bau GmbH, Munich		26	100.00
DYWIDAG International GmbH, Munich		5,000	100.00
DYWIDAG-Holding GmbH, Cologne		500	100.00
E S B Kirchhoff GmbH, Langenargen		1,500	100.00
Eberhard Pöhner Unternehmen für Hoch- und Tiefbau GmbH, Bayreuth		30	100.00
Eberhardt Bau-Gesellschaft mbH, Berlin	TDEM	300	100.00
ECS European Construction Services GmbH, Mörfelden-Walldorf		225	100.00
Ed. Züblin AG, Stuttgart		20,452	57.26
Eduard Hachmann Gesellschaft mit beschränkter Haftung, Lunden		520	100.00
EFKON Germany GmbH, Berlin		25	100.00
Eichholz Eivel GmbH, Berlin		25	100.00
ETG Erzgebirge Transportbeton GmbH, Freiberg		290	60.00
F. Kirchhoff AG, Leinfelden-Echterdingen		23,319	100.00
F. Kirchhoff Straßenbau GmbH & Co. KG, Leinfelden-Echterdingen		13,010	100.00
F. KIRCHHOFF SYSTEMBAU GmbH, Münsingen		2,000	100.00
Fahrleitungsbau GmbH, Essen		1,550	100.00
Forum Mittelrhein Koblenz Generalübernehmergesellschaft mbH & Co.KG,
Oststeinbek		25	51.00
Forum Mittelrhein Koblenz Kultur GmbH & Co. KG, Hamburg		25	51.00
Gebr. von der Wettern Gesellschaft mit beschränkter Haftung, Cologne	TDEM	5,000	100.00
Georg Börner Dach und Straße GmbH, Bad Hersfeld		26	100.00
Griproad Spezialbeläge und Baugesellschaft mbH, Cologne	TDEM	400	100.00
HEILIT Umwelttechnik GmbH, Düsseldorf		2,000	100.00
Heilit+Woerner Bau GmbH, Munich		18,000	100.00

german y		nominal capi tal T€/Tdem	direct stake %
Helmus Straßen-Bau-Gesellschaft mbH & Co. KG, Vechta		3,068	100.00
Hermann Kirchner Bauunternehmung GmbH, Bad Hersfeld		15,000	100.00
Hermann Kirchner Hoch- und Ingenieurbau GmbH, Bad Hersfeld		2,500	100.00
Hermann Kirchner Projektgesellschaft mbH, Bad Hersfeld		1,280	100.00
Ilbau GmbH Deutschland, Berlin		4,700	100.00
Ilbau Liegenschaftsverwaltung GmbH, Dahlwitz-Hoppegarten	TDEM	15,000	100.00
Josef Möbius Bau-Aktiengesellschaft, Hamburg		6,833	100.00
Josef Riepl Unternehmen für Ingenieur- und Hochbau GmbH, Regensburg		900	100.00
JUKA Justizzentrum Kurfürstenanlage GmbH, Cologne		25	100.00
Kalksteinwerk Eigenrieden GmbH, Rodeberg		154	100.00
Kirchhoff Asphaltmischwerke GmbH & Co. KG, Leinfelden-Echterdingen		1,000	100.00
Kirchner & Völker Bauunternehmung GmbH, Erfurt		520	90.00
Kirchner Holding GmbH, Bad Hersfeld		9,220	100.00
Leonhard Moll Hoch- und Tiefbau GmbH, Munich		51	100.00
Leonhard Moll Tiefbau GmbH, Munich		25	100.00
LIMET Beteiligungs GmbH & Co. Objekt Köln KG, Cologne		10	94.00
LIMET Beteiligungs GmbH, Cologne	TDEM	50	100.00
MAV Mineralstoff - Aufbereitung und - Verwertung GmbH, Krefeld		600	50.00
MAV Mineralstoff - Aufbereitung und Verwertung Lünen GmbH, Lünen		250	100.00
Mineral Baustoff GmbH & Co. KG, Cologne		10,000	100.00
Mineral Baustoff Verwaltungs GmbH, Cologne		25	100.00
MOBIL Baustoffe GmbH, Munich		100	100.00
Off-Shore Wind Logistik GmbH, Stuttgart	TDEM	100	100.00
Ooms-Ittner-Hof GmbH, Cologne	TDEM	1,000	100.00
POßÖGEL & PARTNER STRAßEN- UND TIEFBAU GMBH HERMSDORF/THÜR.,
St. Gangloff		77	100.00
Preusse Baubetriebe Gesellschaft mit beschränkter Haftung, Hamburg		1,050	100.00
Preusse Baubetriebe und Partner GmbH & Co. KG Halberstadt, Halberstadt		520	100.00
Projekt Elbpark GmbH & Co. KG, Cologne		10	100.00
Protecta Gesellschaft für Oberflächenschutzschichten mit beschränkter Haftung,
Düsseldorf		256	100.00
Pyhrn Concession Holding GmbH, Cologne		38	100.00
Rimex Gebäudemanagement GmbH, Ulm		51	70.00
ROBA Transportbeton GmbH, Cologne		520	100.00
Robert Kieserling Industriefußboden Gesellschaft mit beschränkter Haftung,
Hamburg		1,050	100.00
SAT Straßensanierung GmbH, Horhausen		30	100.00
SBR Verwaltungs-GmbH, Kehl/Rhein		7,001	100.00
SF-Ausbau GmbH, Freiberg		600	100.00
STRABAG AG, Cologne		104,780	93.63
STRABAG Asset GmbH, Cologne		2,661	100.00
STRABAG Beton GmbH & Co. KG, Berlin	TDEM	2,000	100.00
STRABAG Facility Management GmbH, Nürnberg		30	100.00
Strabag International GmbH, Cologne	TDEM	5,000	100.00
STRABAG Offshore Wind GmbH, Cuxhaven	TDEM	50	100.00
STRABAG Pipeline- und Rohrleitungsbau GmbH, Regensburg		50	100.00
STRABAG Projektentwicklung GmbH, Cologne	TDEM	20,000	100.00
STRABAG Property and Facility Services GmbH, Münster		5,000	100.00
STRABAG Rail Fahrleitungen GmbH, Berlin		600	100.00
STRABAG Rail GmbH, Lauda-Königshofen		25	100.00
STRABAG Real Estate GmbH, Cologne		30,000	100.00

German y		nominal capi tal T€/Tdem	direct stake %
STRABAG Sportstättenbau GmbH, Dortmund	TDEM	200	100.00
STRABAG Umweltanlagen GmbH, Dresden		2,000	100.00
STRABAG Unterstützungskasse GmbH, Cologne		26	100.00
Stratebau GmbH, Regensburg	TDEM	8,000	100.00
TPA Gesellschaft für Qualitätssicherung u.Innovation GmbH, Cologne		511	100.00
TSS Splitt- und Schotterwerke Thüringen Beteiligungs GmbH, Bad Langensalza	TDEM	50	100.00
TSS Technische Sicherheits-Systeme Gesellschaft mit beschränkter Haftung, Cologne	TDEM	270	100.00
Xaver Bachner GmbH, Straubing	TDEM	500	100.00
Z-Bau GmbH, Magdeburg		100	100.00
Züblin Gebäudetechnik GmbH, Erlangen		25	100.00
Züblin International GmbH, Stuttgart		2,500	100.00
Züblin Projektentwicklung GmbH, Stuttgart	TDEM	5,000	100.00
Züblin Spezialtiefbau GmbH, Stuttgart	TDEM	6,000	100.00
Züblin Stahlbau GmbH, Hosena		1,534	100.00
Züblin Umwelttechnik GmbH, Stuttgart		2,000	100.00
Züblin Wasserbau GmbH, Berlin	TDEM	500	100.00
Albania		nominal capi tal TALL	direct stake %
Trema Engineering 2 sh p.k., Tirana		545,568	51.00
Azerbai jan		nominal capi tal TUS D	direct stake %
"Strabag Azerbaijan" L.L.C., Baku		260	100.00
Belgi um		nominal capi tal T€	direct stake %
N.V. STRABAG Belgium S.A., Antwerpen		18,059	100.00
N.V. STRABAG Benelux S.A., Antwerpen		6,863	100.00
Bulga ria		nominal capi tal TLEW	direct stake %
STRABAG EAD, Sofia		13,313	100.00
TPA EOOD, Sofia		5	100.00
Chile		nominal capi tal TCLP	direct stake %
Züblin International Chile Ltda., Santiago		7,909	100.00
ChiNA		nominal capi tal TCNY	direct stake %
Shanghai Changjiang-Züblin Construction&Engineering Co.Ltd., Shanghai		29,312	75.00
		nominal capi tal	direct stake
DEnmark		TDKK	%
KMG - KLIPLEV MOTORWAY GROUP A/S, Copenhagen		500	100.00

Züblin A/S, Trige 1,000 100.00

	nominal capi tal	direct stake
India	TINR	%
EFKON INDIA LIMITED, Mumbai Maharashtra	50,000	100.00
I-PAY CLEARING SERVICES Pvt. Ltd., Mumbai Maharashtra	20,000	74.00
	nominal capi tal	direct stake
Italy	T€	%
Adanti S.p.A., Bologna	5,526	100.00
	nominal	direct
canada	capi tal TCAD	stake %
Strabag Inc., Toronto	3,000	100.00
	nominal	direct
croatia	capi tal THRK	stake %
BRVZ d.o.o., Zagreb	20	100.00
CESTAR d.o.o., Slavonski Brod	1,100	74.90
M.A. d.o.o., Split	71	100.00
MINERAL IGM d.o.o., Zapuzane	10,681	100.00
Pomgrad Inzenjering d.o.o., Split	25,534	100.00
PZC SPLIT d.d., Split	18,810	93.85
Strabag d.o.o., Zagreb	48,230	100.00
STRABAG-HIDROINZENJERING d.o.o, Split	144	100.00
TPA odrzavanje kvaliteta i inovacija d.o.o., Zagreb	20	100.00
	nominal capi tal	direct stake
Libya	TLYD	%
Al-Hani General Construction Co., Tripoli	20,000	60.00
	nominal capi tal	direct stake
Mala ysia	TMYR	%
Züblin International Malaysia Sdn. Bhd., Kuala Lumpur	4,100	100.00
	nominal capi tal	direct stake
Montenegro	T€	%
"Crnagoraput" AD, Podgorica, Podgorica	18,936	50.99
	nominal capi tal	direct stake
Netherland s STRABAG BV, Vlaardingen	T€ 450	% 100.00
Züblin Nederland BV, Vlaardingen	500	100.00
	nominal	direct
Oman	capi tal TOMR	stake %
STRABAG OMAN L.L.C., Muscat	1,000	100.00
	nominal	direct
Pakistan	capi tal TPKR	stake %

poland	nominal capi tal Tpln	direct stake %
"HEILIT+WOERNER" Budowlana Sp.z o.o., Breslau	16,140	100.00
A2 Strada Sp.z o.o., Warsaw	428	100.00
BHG Sp.z o.o., Warsaw	500	100.00
Bitunova Sp.z o.o., Warsaw	1,800	100.00
BMTI Polska Sp.z o.o., Pruszkow	2,000	100.00
BRVZ Sp.z o.o., Warsaw	500	100.00
Hermann Kirchner Polska Sp.z o.o., Lodz	1,100	100.00
Mineral Polska Sp.z o.o., Strzelin	9,361	100.00
Kopalnie Melafiru w Czarnym Borze Sp.z o.o., Czarny Bor	9,700	99.96
PL-BITUNOVA Sp.z o.o., Bierawa	2,700	95.00
Polski Asfalt Sp.z o.o., Breslau	60,000	100.00
Polskie Kruszywa Sp.z o.o., Breslau	920	100.00
Przedsiebiorstwo Budownictwa Ogólnego i Uslug Technicznych Slask Sp.z o.o.,
Katowice	295	60.98
SAT Sp.z o.o., Olawa	4,171	100.00
STRABAG Sp.z o.o., Warsaw	11,800	100.00
TPA INSTYTUT BADAN TECHNICZNYCH Sp.z o.o., Pruszków	600	100.00
Züblin Sp.z o.o., Poznan	7,765	100.00

nominal capi tal Portugal T€	direct stake %
Zucotec - Sociedade de Construcoes Lda., Lisbon 200	100.00

Qatar	nominal capi tal Triy	direct stake %
Strabag Qatar W.L.L., Qatar	200	100.00

Romania	nominal capi tal Tron	direct stake %
ANTREPRIZA DE REPARATII SI LUCRARI A R L CLUJ S.A., Cluj-Napoca	64,061	95.56
Bitunova Romania SRL, Bucharest	16	100.00
BRVZ SERVICII & ADMINISTRARE SRL, Bucharest	278	100.00
Carb SA, Brasov	10,909	99.47
DRUMCO SA, Timisoara	12,957	70.00
Strabag srl, Bucharest	43,519	100.00
TPA Societate pentru asigurarea calitatii si inovatii SRL, Bucharest	0	100.00
Züblin Construct s.r.l., Bucharest	4,580	100.00

Russia	nominal capi tal TRub	direct stake %
SAO BRVZ Ltd, Moscow	313	100.00
Strabag z.a.o., Moscow	14,926	100.00

nominal capi tal Saudi Arabia Tsar	direct stake %
Dywidag Saudi Arabia Co. Ltd., Jubail 10,000	100.00

sweden	nominal capi tal Tsek	direct stake %
Oden Anläggningsentreprenad AB, Stockholm	15,975	100.00
STRABAG Projektutveckling AB, Stockholm	1,000	100.00
STRABAG Scandinavia AB, Stockholm	50	100.00
Züblin Scandinavia AB, Sollentuna	100	100.00

nominal capi tal Switzerland Tchf	direct stake %
BMTI GmbH, Erstfeld 20	100.00
BRVZ Bau-, Rechen- und Verwaltungszentrum AG, Erstfeld 100	100.00
Egolf AG Strassen- und Tiefbau, Weinfelden 3,500	100.00
Meyerhans AG Amriswil, Amriswil 2,500	100.00
Meyerhans AG, Strassen- und Tiefbau Uzwil, Uzwil 100	100.00
STRABAG AG, Zurich 8,000	100.00

nominal capi tal Serbia Trsd	direct stake %
"PUTEVI" A.D. CACAK, Cacak 155,477	85.02
Preduzece za puteve "Zajecar" a.D.Zajecar, Zajecar 265,015	93.29
STRABAG Beograd d.o.o., Belgrade 7,554	100.00
TPA za obezbedenje kvaliteta i inovacije d.o.o. Beograd, Novi Beograd 401	100.00
Vojvodinaput-Pancevo a.d. Pancevo, Pancevo 4,196	82.07

Slovakia	nominal capi tal t€	direct stake %
BRVZ s.r.o., Bratislava	33	100.00
C.S. BITUNOVA spol. s.r.o., Zvolen	1,195	100.00
Errichtungsgesellschaft Strabag Slovensko s.r.o., Bratislava-Ruzinov	7	100.00
KSR - Kamenolomy SR, s.r.o., Zvolen	25	100.00
OAT spol. s.r.o., Bratislava	199	100.00
SLOVASFALT, spol.s.r.o., Bratislava	9,222	100.00
STRABAG - ZIPP Development s.r.o., Bratislava	664	100.00
STRABAG s.r.o., Bratislava	66	100.00
TPA Spolocnost pre zabezpecenie kvality a inovacie s.r.o., Bratislava	7	100.00
Viedenksa brana s.r.o., Bratislava	25	100.00
ZIPP BRATISLAVA spol. sr.o., Bratislava	133	100.00

Slovenia	nominal capi tal T€	direct stake %
BRVZ center za racunovodstvo in upravljanje d.o.o., Ljubljana	9	100.00
GRADBENO PODJETJE IN KAMNOLOM GRASTO d.o.o., Ljubljana	337	99.85
STRABAG gradbene storitve d.o.o., Ljubljana	9	100.00

nominal capi tal south africa T€	direct stake %
TOLLINK (SA), Pretoria 166	100.00

	capi tal	dire ct
	Tczk	stake%
BHG CZ s.r.o., Ceské Budejovice	200	100.00
BMTI CR s.r.o., Brno	100	100.00
BOHEMIA ASFALT, s.r.o., Sobeslav	10,000	100.00
Bohemia Bitunova, spol s.r.o., Jihlava	100	100.00
BRVZ s.r.o., Prague	1,000	100.00
Dalnicni stavby Praha, a.s., Prague	136,000	100.00
FRISCHBETON s.r.o., Prague	20,600	100.00
JHP spol. s.r.o., Prague	20,000	100.00
KAMENOLOMY CR s.r.o., Ostrava - Svinov	106,200	100.00
MiTTaG spol. s.r.o., Brno	10,100	100.00
Na belidle s.r.o., Prague	100	100.00
OAT s.r.o., Prague	4,000	100.00
SAT s.r.o., Prague	1,000	100.00
Strabag a.s., Prague	1,119,600	100.00
STRABAG konstrukce s.r.o., Chrudim	2,580	100.00
STRABAG Property and Facility Services a.s., Prague	46,800	100.00
TPA CR, s.r.o., Beroun	1,000	100.00
Viamont DSP a.s., Usti nad Labem	180,000	100.00
ZIPP PRAHA, s.r.o., Prague	17,100	100.00
Züblin stavebni spol s.r.o., Prague	100,000	100.00

Ukrain e	nominal capi tal T u a h	dire ct stake%
Chustskij Karier, Zakarpatska	3,279	95.96
Zezelivskij karier TOW, Zezelev	13,130	99.36

	nominal capi tal	dire ct
czech republic	Tczk	stake%
BHG CZ s.r.o., Ceské Budejovice	200	100.00
BMTI CR s.r.o., Brno	100	100.00
BOHEMIA ASFALT, s.r.o., Sobeslav	10,000	100.00
Bohemia Bitunova, spol s.r.o., Jihlava	100	100.00
BRVZ s.r.o., Prague	1,000	100.00
Dalnicni stavby Praha, a.s., Prague	136,000	100.00
FRISCHBETON s.r.o., Prague	20,600	100.00
JHP spol. s.r.o., Prague	20,000	100.00
KAMENOLOMY CR s.r.o., Ostrava - Svinov	106,200	100.00
MiTTaG spol. s.r.o., Brno	10,100	100.00
Na belidle s.r.o., Prague	100	100.00
OAT s.r.o., Prague	4,000	100.00
SAT s.r.o., Prague	1,000	100.00
Strabag a.s., Prague	1,119,600	100.00
STRABAG konstrukce s.r.o., Chrudim	2,580	100.00
STRABAG Property and Facility Services a.s., Prague	46,800	100.00
TPA CR, s.r.o., Beroun	1,000	100.00
Viamont DSP a.s., Usti nad Labem	180,000	100.00
ZIPP PRAHA, s.r.o., Prague	17,100	100.00
Züblin stavebni spol s.r.o., Prague	100,000	100.00
	nominal capi tal	dire ct
Ukrain e	T u a h	stake%
Chustskij Karier, Zakarpatska	3,279	95.96
Zezelivskij karier TOW, Zezelev	13,130	99.36
	nominal	dire ct
	capi tal	stake%
hunga ry	Thu f
AKA Zrt., Budapest	24,000,000	100.00
ASIA Center Kft., Budapest	1,830,080	100.00
BHG Bitumen Kft., Budapest	3,000	100.00
Bitunova Kft., Budapest	50,000	100.00
BMTI Kft., Budapest	5,000 1,545,000	100.00
BRVZ Kft., Budapest Frissbeton Kft., Budapest		100.00
	100,000	100.00
H-TPA Kft., Budapest	113,000	100.00
KÖKA Kft., Budapest	761,680	100.00
Magyar Aszfalt Kft., Budapest	3,600,000	100.00
MASZ M6 Kft., Budapest	10,000	100.00
NOSTRA Cement Kft., Budapest	68,017,000	100.00
OAT Kft., Budapest	25,000	100.00
SAT Útjavító Kft., Budapest	268,000	100.00
STR Lakasepitö Kft., Budapest	352,000	100.00
STRABAG Property and Facility Services Zrt., Budapest	20,000	51.00
Strabag Zrt., Budapest	2,100,000	100.00
STRABAG-MML Kft., Budapest	500,000	100.00
Szentesi Vasutepitö Kft, Budapest	189,120	100.00
Treuhandbeteiligung H Züblin K.f.t, Budapest	10,000 3,000	85.00 100.00

united arab Emirates	nominal capi tal Ta e d	dire ct stake%
STRABAG ABU DHABI LLC, Abu Dhabi	150	100.00
Züblin Ground and Civil Engineering LLC, Dubai	1,000	100.00

Currency Translation

The group currency is the euro. The financial statements for foreign companies are converted into euro according to the functional currency concept (IAS 21). In all companies this is the respective local currency.

The most important currencies are listed under item 26: financial instruments along with their average exchange rates and their exchange rate on the balance sheet date.

All balance sheet items are converted at the closing rate at the balance sheet date. Expense and income items are converted at the average annual rate.

In the course of capital consolidation, currency translation differences of T€ 43,329 (previous year: T€ -7,515) are recognised directly in equity in the financial year with no effect on the operating result. The currency translation differences between the closing rate for the balance sheet and the average rate for the income statement are allocated to equity.

The recognition of forward exchange operations directly in equity (hedging) increased the retained earnings excluding deferred taxes by T€ 28,036 (previous year: increase of T€ 52,034).

Restatements in accordance with IAS 29 (Financial Reporting in Hyperinflationary Economies) were not necessary.

Accounting Policies

Property, Plant and Equipment and Intangible Assets

Acquired intangible assets and property, plant and equipment are recognised at their initial costs or costs of production less depreciation and impairment. Both the direct and the appropriate parts of overhead costs for the selfconstructed plants are included in the production costs. Interest on borrowings is recognised for significant qualifying assets which were produced or acquired after 1 January 2009.

Development costs are capitalised if the group can demonstrate the technical feasibility of completing the intangible asset so that it will be available for internal use or sale and if it can demonstrate the intent to complete the intangible asset and use or sell it. The group must also demonstrate that the intangible asset will generate probable future economic benefits, that it has adequate resources to complete the asset and that it is able to reliably measure the expenditure attributable to the asset during its development. The construction costs for these assets comprise all construction costs directly attributable to the construction process as well as production-related overheads. Financing costs are capitalised for significant qualified assets for which construction or acquisition began after 1 January 2009. The capitalised development costs are amortised and depreciated according to the straight-line method over the period for which revenues from the respective project are expected.

Goodwill and intangible assets without a determinable useful life are subject to an annual impairment test in accordance with IAS 36 based on which the impairment is undertaken.

Within the scope of the impairment test cash-generating units are identified and assigned them a goodwill value. If the book value of a cash-generating unit including its goodwill exceeds the highest attainable value, an impairment loss must be recognised.

Other intangible and tangible assets are amortised and depreciated according to the straight-line method over their estimated useful lives. If there is an indication that an asset may be impaired and if the present value of the future cash surpluses is lower than the carrying value, then the assets recoverable amount must be caculated in accordance with IAS 36.

The following useful lives were assumed in the determination of the rate of depreciation/amortisation:

	Useful live in years
Intangible assets
Property rights/Utilisation rights	3–50
Software	2–5
Patents, licences	3–10

Continuation	Useful live in years
Property, plant and equipment
Buildings	10–50
Investment property	10–35
Investments in third-party buildings	5–40
Machinery	3–21
Office equipment/furniture and fixtures	3–15
Vehicles	4–12

Subsidies and investment allowances of public bodies are deducted from the respective asset value and depreciated according to the useful life.

Land and real estate which are held in order to gain rental income and/or to rise in value have been stated as investment property in accordance with IAS 40. The amount reported and the evaluation are made in accordance with the cost model. Investment property is recognised at cost and depreciated within the straight-line method. If the present value of the future cash flows is lower than the carrying value, then an impairment to the lower fair value in accordance with IAS 36 is made. The fair value of this investment property is stated separately. This is determined according to recognised methods such as the derivation of the current market price of comparable real estate or the discounted cash-flow method.

Leasing contracts on assets on which all opportunities and risks essentially lie with the company are treated as finance leases. The fixed assets underlying these leasing agreements are capitalised at the present value of the minimum payments at the beginning of leasing relations and depreciated over its useful life or over shorter contract terms. These are offset by the liabilities arising from future leasing payments, whereby the former are recognised at the present value of the outstanding obligations at the balance sheet.

In addition there are leasing agreements for property, plant and equipment which are regarded as operating leases. Leasing payments resulting from these contracts are recognised as expenditure.

Financial Assets

In accordance with IAS 28, investments in associates are recognised using the equity method as long as they are not immaterial. For purpose of transition to IFRS, the financial statements of the major companies evaluated in accordance with the equity method are to be adapted to IFRS in terms of uniform accounting policies.

Subsidiaries which are not consolidated due to immateriality and other investments which are not reported using the equity method are reported at historical cost or with the fair value in accordance with IAS 39 in as far as this value can be reliably determined.

Interest-bearing loans are, as long as no impairments are necessary, reported at nominal value. Interest-free or lowinterest-bearing loans are discounted to their present value.

Securities classified as available for sale are initially valued according to acquisition costs and later recognised at fair value. Fair value changes are in principle recognised directly in equity and only recognised in the consolidated income statement upon disposal of the security. The permanent impairment of securities classified as available for sale is recorded through profit or loss.

Deferred Taxes

Deferred taxes are measured using the balance sheet liability method for all differences between the valuation of the balance sheet items in the IFRS financial statements and the existing tax value at the individual companies. Furthermore, any realisable tax advantage from existing losses carried forward will be included in the calculation. Exceptions to this comprehensive tax deferral are balances from non-tax-deductible goodwill.

Deferred tax assets may only be recognised if the associated tax advantage is likely to be realisable. The calculation of the tax deferral is based on the usual income tax rate in the respective country at the point of the predicted reversal.

Inventories

Inventory costs include cost of purchase and production and are required to be stated at the lower of cost and net realisable value.

Production costs include all direct costs as well as appropriate parts of overhead arising in the production. Distribution costs, as well as costs for general administration, are not included in the production costs. Interest on borrowing related to production is recognised for significant inventories which are to be classified as qualifying assets and which were produced or acquired after 1 January 2009.

Receivables from Concession Arrangements

Service concession arrangements which provide an absolute contractual right to receive payment are shown separately. All receivables from concession arrangement are accounted for under the special balance sheet item receivables from concession arrangements. The receivables are carried at the present value of the payment to be made. The annual accumulation amount is recognised in other operating income, where it is balanced with the interest expense form related non-recourse financing.

The hedging transaction embedded in the concession arrangements are carried at fair value and shown in the item receivables from concession arrangements.

Trade and Other Receivables

Trade receivables and other receivables are evaluated at their nominal value less impairment for realisable individual risks. Graduated impairment is formed according to risk groups in order to take general loan risks on customer receivables into consideration.

Non-interest bearing and low-interest-bearing receivables are discounted. Foreign currency receivables are evaluated on the balance sheet date at the valid exchange rate.

In the case of receivables from construction contracts, the results are realised according to the percentage of completion method (IAS 11). The output volume actually attained by the balance sheet date serves as a benchmark for the degree of completion. If future results cannot be reliably determined because of uncertainties in the future construction progress, construction contracts are recognised at cost. Impending losses from the further construction process are accounted for by means of appropriate depreciation.

If the costs incurred plus recognised profits exceed the payments received for it, then this is shown on the assets side under receivables from construction contracts. Vice versa, this is reported on the liabilities side under liabilities from construction contracts.

The results, in the case of construction contracts which are carried out in consortia, are realised according to the percentage of completion method in accordance with the degree of completion on the balance sheet date. Impending losses arising from further construction work are accounted for by means of appropriate depreciation. Receivables from or liabilities to consortia include the proportional contract result as well as capital contributions, in- and out-flows of cash and charges resulting from services.

Non financial receivables

Non-financial assets are measured at cost less extraordinary depreciation.

Other financial Receivables

Financial assets classified as loans and receivables are carried at amortised cost less impairment losses.

Cash and Cash Equivalents

Cash and cash equivalents include all liquid assets which at the date of acquisition or investment have a remaining term of less than three months. Cash and cash equivalents are measured at amortised cost.

Provisions

Provisions for severance payments are created as a result of statutory regulations. The group is obliged to pay a oneoff severance payment to employees of domestic subsidiaries if their employment began before 1 January 2003.

The level of this payment depends on the number of years at the company and amount due at the time of severance and comes to between 2 and 12 monthly salaries. A provision is made for this obligation.

The provision for severance payments are calculated according to the projected unit credit method by using actuarial expertise. Here the future claim over the length of employment of the employees is collected while taking any future pay rises into consideration. The present value of the already earned partial-claims on the reporting date is recognised as the provision.

Pension provisions are calculated according to the projected unit credit method (IAS 19). This method determines the discounted post-employment benefit obligation acquired up to the balance sheet date. Due to the commitment of fixed pensions, it is not necessary to consider expected future salary rises as part of the actuarial parameters.

The effect in value of the change to these assumptions is recognised as actuarial gains and losses and is fully and directly recognised in equity. Service costs are recognised in the employee benefits expense, interest costs in the allocation of provisions in the financial result.

Old-age-part-time indemnity payments are determined according to the same actuarial principles as the pension provisions.

The conditions applied to calculate the severance and pension provisions for discounting, pay rises and fluctuation vary from country to country depending on the economic situation. Life expectancy is calculated according to the respective country's mortality tables.

The other provisions take into consideration all realisable risks and uncertain obligations. They are recognised at the respective amount, which is necessary at the balance sheet date according to commercial judgement in order to cover future payment obligations, realisable risks and uncertain obligations within the group. Hereby the respective amount is recognised, which arises as the most probable on careful examination of the facts. Long-term provisions are, in as far as they are not immaterial, entered into the accounts at their discounted discharge amount on the balance sheet date. The discharge amount also includes the cost increases to be considered on the reporting date. Provisions which arise from the obligation to recultivate gravel sites are allocated according to the rate of utilisation.

Non-financial Liabilities

Non-financial liabilities reported under other liabilities are carried at the repayment amount. The overpaid amounts from construction contracts are qualified as non-financial liabilities.

Financial Liabilities

Liabilities are basically recognised at the repayment amount. Foreign currency liabilities are evaluated at the closing rate at the balance sheet date. Interest-free liabilities, especially those from finance lease liabilities, are accounted at the present value of the repayment obligation.

Costs related to the issue of corporate bonds are capitalised in the year of issue and deducted over the term.

Contingent Liabilities

Contingent liabilities are present or possible future obligations which are not reflected in the balance sheet as liabilities either because an outflow of resources is not probable. The amount of the contingent liabilities reported corresponds to the amount of existing guarantees outstanding on balance sheet date.

Derivative Financial Instruments and Hedging Activities

Derivative financial instruments are employed exclusively to mitigate risks arising from movements in currency exchange rates and interest rates. The utilisation of financial derivatives is subject to internal guidelines and controls.

All derivative financial instruments are accounted for at fair value in accordance with IAS 39 and reported under other financial receivables or other financial liabilities.

Derivative financial instruments are measured on the basis of inter-bank conditions and, if necessary, the loan margin applicable for STRABAG or stock exchange price, under application of the buying and selling rate on the balance sheet date. Where stock exchange prices are not used, the fair value is calculated by means of actuarial valuation methods.

Gains and losses from derivative financial instruments designated as qualified hedging instruments within the framework of a fair value hedge, or for which no qualified hedge relationship in accordance with IAS 39 could be established and which therefore do not qualify for hedge accounting, are recognised with an effect on income in the consolidated income statement.

Results from derivative financial instruments for which a cash flow hedge has been formed and whose effectiveness has been established are carried in equity with no effect on income up to the date of realisation of the hedge transaction. Any potential changes in results due to the ineffectiveness of these financial instruments are recognised in the income statement with an immediate effect on income. The critical-term-match method is used to determine the prospective effectiveness. The retrospective effectiveness is determined by applying the dollar-offset method.

Revenue Recognition

Revenues from the construction contracts are realised according to the percentage-of-completion method. The output volume actually attained at the balance sheet date serves as a benchmark for the degree of completion.

Revenues from the sale of proprietary projects, from trade to and services for consortia, from other services and from the sale of construction materials and bitumen are realised with the transfer of power to dispose and the related opportunities and risks and/or with the rendering of the services.

Revenue in the amount of € 400.3 million, which is to be seen as purely transitory due to consortial structures, was offset against the corresponding expenses for the first time in the 2010 financial year.

Estimates

Estimations and assumptions which refer to the amount and recognition of the assets and liabilities accounted, the income and expenditure as well as the statement of contingent liabilities are necessary for the preparation of the consolidated financial statement according to IFRS and essentially concern the assessment of building projects until completion, in particular the amount of the realisation of profits, the accounting and evaluation of provisions, accounting of concession arrangements and the impairment test of goodwill and other assets. In the case of future-oriented assumptions and estimations on the balance sheet date, the realistically expected development of the global and branch-related environment are taken into account with regard to the expected future business development at the time of the preparation of the consolidated financial statements. In the case of developments in the underlying conditions which deviate from the assumptions and which are beyond the control of the management board, the amount which actually results can deviate from the estimated values. In the event such a development occurs, the assumptions and, if necessary, the carrying values of the affected assets and liabilities are adjusted to the latest information. During the preparation of the consolidated financial statements, there were no signs which indicate the necessity to significantly change the underlying assumptions and estimations.

Notes on the Items of the Consolidated Income Statement

(1) Revenue

The revenue of T€ 12,381,537 (previous year: T€ 12,551,928) is attributed in particular to revenue from construction contracts, revenue from own projects, trade to and services for consortia, as well as other services and proportionally acquired profits resulting from consortia. Revenue from construction contracts including the realised part of profits according to the level of completion of the respective contract (percentage of completion method) amount to T€ 10,678,801 (previous year: T€ 10,440,344).

Revenue according to business fields and regions are represented individually in the segment reporting.

Revenue provides only an incomplete picture of the output volume achieved in the financial year. Additionally, therefore, the total output volume of the group is represented, which includes the proportional output of consortia and participation companies:

	2010 € Mln	2009 € Mln
Germany	5,051	5,380
Austria	1,907	1,981
Poland	1,352	993
Czech Republic	867	786
Hungary	580	832
Slovakia	427	480
Russia	251	282
Romania	165	161
other CEE countries	216	288
Rest of CEE	1,059	1,211
Switzerland	370	378
Benelux	284	221
Scandinavia	248	199
other European countries	256	276
Rest of Europe	1,158	1,074
Middle East	295	350
The Americas	246	162
Africa	136	168
Asia	126	84
Rest of World	803	764
Total output volume	12,777	13,021

(2) Other Operating Income

The other operating income includes revenue from letting and leasing in the amount of € 25.0 million (previous year: € 27.9 million), insurance compensation and indemnification in the amount of € 42.9 million (previous year: € 44.2 million), and exchange rate differences in the amount of € 25.4 million (previous year: € 39.9 million) as well as gains from the disposal of fixed assets without financial assets in the amount of € 48.0 million (previous year: € 37.1 million).

Interest income from concession arrangements which is included in other operating income is represented as follows (see also notes on item 17):

	2010 T€	2009 T€
Interest income	72,862	72,914
Interest expense	-37,591	-40,511
Total	35,271	32,403

(3) Raw Materials, Consumables and Services Used

	2010 T€	2009 T€
Raw materials, consumables	3,205,991	3,016,313
Services used	5,012,364	5,430,591
	8,218,355	8,446,904

Services used are mainly attributed to services of subcontractors and professional craftsmen as well as planning services, machine rentals and third-party repairs.

(4) Employee Benefits Expense

	2010 T€	2009 T€
Wages	899,274	939,144
Salaries	1,437,870	1,410,881
Social security and related costs	406,467	408,580
Expenses for severance payments and
contributions to employee provident fund	28,426	31,369
Expenses for pensions and similar obligations	7,995	11,531
Other social expenditure	20,901	21,817
	2,800,933	2,823,322

The expenses for severance payment and contributions to the employee provident fund and expenses for pensions and similar obligations include the expenses for service costs and indemnity claims resulting from old-age-part-time claims in the business year. The proportion of interest included in the expenses for severance payments as well as for pensions and similar obligations are recognised in the financial result.

Expenses from defined contribution plans amounted to T€ 8,017 (previous year: T€ 7,266).

The average number of employees with the proportional inclusion of all participation companies is as follows:

	2010	2009
Salaried employees	32,053	31,261
Labourers	41,547	44,287
	73,600	75,548

(5) Other Operating Expenses

The other operating expenses of T€ 1,030,190 (previous year: T€ 932,918) mainly include general administrative costs, travel and advertising costs, insurance premiums, proportional transfer of losses from consortia, impairment of receivables, the balance of allocations to and utilisation of provisions, legal and advisory costs, rental and lease costs and losses on the disposal of assets (excluding financial assets). Other taxes amounting to T€ 48,215 (previous year: T€ 46,146) are included.

The other operating expenses include losses from exchange rate differences in the amount of € 63.3 million (previous year: € 84.8 million).

Spending on research and development arose in various special technical proposals, in connection with concrete competitive projects and in the introduction of building processes and products into the market, and was therefore recognised in full in the income statement.

(6) Share of Profit or Loss of Associates

	2010 T€	2009 T€
Income from investments in associates	34,811	16,915
Expenses arising from investments in associates	-2,425	-29,630
	32,386	-12,715

(7) Net Investment income

	2010 T€	2009 T€
Investment income	31,390	30,543
Expenses arising from investments	-9,286	-13,454
Gains on the disposal and write-up of investments	2,100	1,906
Impairment of investments	-6,560	-9,140
Losses on the disposal of investments	-2,571	-1,036
	15,073	8,819

(8) Depreciation and Amortisation Expense

Depreciations and impairments are represented in the development of property, plant and equipment and intangible assets. In the year under review impairments on intangible assets and on property, plant and equipment to the amount of T€ 22,215 were made (previous year: T€ 21,030). Impairment on goodwill amounted to T€ 49,536 (previous year: T€ 25,401). The impairment of goodwill involves Viamont DSP a.s. with T€ 14,000 (see the information regarding the initial consolidation of Viamont DSP a.s.), the impairment of communications firms with T€ 15,000 as well as goodwill impairment of transportation infrastructure companies in Germany and Eastern Europe.

(9) Net interest income

	2010 T€	2009 T€
Interests and similar income	78,709	78,332
Interests and similar charges	-98,386	-98,219
Net interest income	-19,677	-19,887

Included in interest and similar charges are interest components from the allocation of severance payment and pension provisions amounting to T€ 22,498 (previous year: T€ 25,199), security impairment losses of T€ 1,806 (previous year: T€ 1,587) as well as currency losses of T€ 17,919 (previous year: T€ 10,765).

Included in interests and similar income are gains from exchange rates amounting to T€ 11,541 (previous year: T€ 8,698).

(10) Income Tax Expense

Income tax includes taxes paid in the individual companies or owed on income, as well as deferred taxes and the payments of additional tax payments resulting from tax audits:

	2010 T€	2009 T€
Current taxes	175,749	95,791
Deferred taxes	-84,853	-17,441
	90,896	78,350

The following tax components are recognised directly in equity in the statement of comprehensive income:

	2010 T€	2009 T€
Change in hedging reserves	-4,610	-11,071
Actuarial gains/losses	5,221	6,392
Total	611	-4,679

The reasons for the difference between the Austrian corporate income tax rate of 25 % valid in 2010 and the actual consolidated tax rate are as follows:

	2010 T€	2009 T€
Profit before tax	279,274	262,961
Theoretical tax expenditure 25%	69,818	65,741
Differences to foreign tax rates	-6,751	-7,934
Change in tax rates	0	3,078
Non-tax-deductible expenses	13,426	13,642
Tax-free earnings	-16,235	-13,926
Tax effects of result from associates	-6,057	4,424
Depreciation of goodwill/capital consolidation	12,577	6,486
Additional tax payments	5,643	-2,785
Change of valuation adjustment on deferred tax assets	21,645	6,779
Others	-3,170	2,845
Recognised income tax	90,896	78,350

(11) Earnings per share

The basic earnings per share are calculated by dividing the consolidated profit or loss by the weigthed average number of ordinary shares.

As there are not stock options at the STRABAG Group, the diluted earnings per share equal the basic earnings per share.

	2010	2009
Profit or loss attributable to equity holders of the parent
(consolidated profit/loss) in T€	174,857	161,457
Weighted number of shares outstanding during the year	114,000,000	114,000,000
Earnings per share in €	1.53	1.42

Notes on Items in the Consolidated Balance Sheet

(12) Property, Plant and Equipment and Intangible Assets

The composition of and changes in intangible assets, goodwill, and property, plant and equipment is shown separately in consolidated statement of fixed assets.

No borrowing costs were capitalised for property, plant and equipment, or for intangible assets in the year under report, as significant qualifying assets were not produced or acquired after 1 January 2009.

Goodwill

The goodwill at the balance sheet date is composed as follows: 31.12.2010

	T€	31.12.2009 T€
STRABAG AG, Cologne	178,803	178,803
Polski Asfalt Group	61,960	60,005
Viamont DSP a.s., Usti nad Labem	54,873	0
Acquisitions Germany	49,431	53,941
Acquisitions Eastern Europe	22,121	29,214
ODEN Anläggningsentreprenad AB, Stockholm	16,837	14,725
EFKON Group (incl. Center Communications Systems GmbH)	15,466	30,466
Ed. Züblin AG, Stuttgart	14,938	14,938
Gebr. von der Wettern Group	12,800	16,800
Acquisitions Austria	12,634	8,199
Acquistions other Western Europe	11,343	10,263
Josef Möbius Bau-Aktiengesellschaft, Hamburg	10,165	10,165
FRISCHBETON s.r.o.	7,112	6,733
	468,483	434,252

The goodwill is submitted to an impairment test once a year. For impairment testing, the recoverable value of a cashgenerating unit is compared with its corresponding book value.

The cash-generating unit basically corresponds to the acquired legal unit or units which profit from the synergy potential of the business combination.

The recoverable value is the fair value or value in use determined from the discounted future cash-flows.

This value is identified on the basis of the current budgeting of the internal reporting, as approved by the management board, which is based on past experiences and expectations concerning the future development of the market. The detailed planning period comprises at least 4 years and can be extended if this would allow a better depiction of the future cash-flows. The last detailed planning year forms the basis for the calculation of the perpetuities as long as applicable legislation and legal requirements do not limit the usability of the cash-generating unit to a shorter period of time.

The discount rate for the future cash-flows is identified while taking into account segment- and country-specific risks and growth rates. The discount interest rates range from 7.0 % to 11.1 % before taxes (previous year: 7.7 % to 11.4 %).

The comparison of the book values with the highest attainable values of the cash-generating entities determined by the annual impairment test showed a need for goodwill impairment of T€ 49,536 (previous year: T€ 25,401).

Capitalised Development Costs

At the balance sheet date, development costs in the amount of T€ 16,567 (previous year: T€ 16,729) were capitalised as intangible assets. In the 2010 financial year, development costs in the amount of T€ 14,048 were incurred, of which T€ 5,596 (previous year: T€ 1,530) were capitalised.

Leasing

Due to existing finance leasing contracts, the following book values are included in property, plant and equipment assets on the balance sheet date:

	31.12.2010 T€	31.12.2009 T€
Property leasing	34,235	47,208
Machinery leasing	37,760	37,417
	71,995	84,625

Offset against these are liabilities arising from the present value of leasing obligations amounting to T€ 62,892 (previous year: T€ 75,383).

The terms of the finance leases for property are between 4 and 20 years, while those for machines are between two and eight years.

The following payment obligations will arise from financial leases in subsequent financial years:

		Present values		minimum Payments
	31.12.2010 T€	31.12.2009 T€	31.12.2010 T€	31.12.2009 T€
Term up to one year	17,970	14,892	20,567	18,892
Term between one and five years	29,594	34,621	35,205	40,103
Term over five years	15,328	25,870	17,754	24,773
	62,892	75,383	73,526	83,768

In addition to the finance leases, there are also operating leases for the utilisation of technical equipment and machinery. The expenses from these contracts are recognised in the income statement. The payments made for the financial year 2010 amount to T€ 112,210 (previous year: T€ 121,300).

Payment obligations arising from operating lease agreements in subsequent business years are represented as follows:

	31.12.2010 T€	31.12.2009 T€
Term up to one year	66,640	68,054
Term between one and five years	125,558	133,599
Term over five years	51,189	62,489
	243,387	264,142

Restrictions on property, plant and equipment/Purchase Obligations

On the balance sheet date there were € 174.8 million (previous year: € 122.3 million) in contractual commitments for acquisition of property, plant and equipment which were not considered in the financial statement.

Restrictions exist for non-current assets in the amount of T€ 23,596 (previous year: T€ 19,795).

(13) Investment Property

The development of investment property is shown in the consolidated statement of fixed assets. As of 31 December 2010, the fair value of the investment property basically corresponds to the carrying value.

The rental income from investment property in the 2010 financial year amounted to T€ 13,734 (previous year: T€ 15,803) and direct operating expenses totalling T€ 15,875 (previous year: T€ 13,824). Additionally, gains from asset disposals in the amount of T€ 5,372 (previous year: T€ 15,075) were achieved.

(14) Financial Assets

Detailed information on the group's investments (shares of more than 20 %) can be found in the list of subsidiaries, associated companies and investments.

The development of the financial assets in the financial year was as follows:

	Balanc e as of 1.1.2010 T€	Currenc y tran sla tion T€	Chang e in scope of consoli dation T€	Addi tions T€	Tran sfers T€	Disposal T€	Impai rment T€	Balanc e as of 31.12.2010 T€
Investments
in associates	131,949	0	-50,714	35,274	31	-28,607	0	87,933
Investments
in subsidaries	73,569	-12	5,180	11,345	4,404	-3,476	-4,987	86,023
Loans to
subsidiaries	10,283	0	0	2,415	0	-12,850	315	163
Other
investment	111,903	216	-6,324	10,824	-4,435	-5,986	-1,663	104,535

Continuation	Balanc e as of 1.1.2010 T€	Currenc y tran sla tion T€	Chang e in scope of consoli dation T€	Addi tions T€	Tran sfers T€	Disposal T€	Impai rment T€	Balanc e as of 31.12.2010 T€
Loans to
participation
companies	12,702	0	0	10	0	-791	645	12,566
Securities	27,765	68	17	19,492	0	-323	2,702	49,721
Other loans	4,611	0	0	135	0	-439	-59	4,248
	372,782	272	-51,841	79,495	0	-52,472	-3,047	345,189

The following table provides an overview of the financial information (100 %) for associates and for companies which were reported applying the equity method of accounting in accordance with IAS 31.38 (Joint Ventures):

	2010 T€	2009 T€
Total assets	2,270,560	2,210,401
Total liabilities	1,897,108	1,879,312
Revenue	472,295	450,079
Profit for the period	18,448	22,648

(15) Deferred Taxes

Temporary differences in amounts stated in the IFRS financial statements and the respective tax amounts stated affect the tax accruals and deferrals recognised in the balance sheet as follows:

	31.12.2010		31.12.2009
	assets T€	Liabili ties T€	assets T€	Liabili ties T€
Property, plant and equipment and intangible assets	6,403	-64,595	4,589	-65,301
Financial assets	192	-6,345	38	-4,615
Inventories	7,135	-12,786	4,481	-12,531
Trade and other receivables	7,548	-136,028	17,719	-154,439
Provisions	181,588	0	130,327	0
Liabilities	8,112	0	9,784	-662
Tax loss carryforward	173,983	0	150,604	0
Deferred tax assets/liabilities	384,961	-219,754	317,542	-237,548
Netting out of deferred tax assets and liabilities of
the same tax authorities	-170,612	170,612	-183,558	183,558
Deferred taxes netted out	214,349	-49,142	133,984	-53,990

Deferred taxes on losses carried forward were capitalised as these can probably be offset with future taxable profits.

The Austrian Corporate Income Tax Act (Körperschaftsteuergesetz) requires a tax-effective impairment of investments to be claimed over a period of seven years. The deferred tax assets on loss carryforwards contain open one-seventh payments in the amount of € 34.6 million (previous year: € 31.4 million).

No deferred tax assets were made for differences in book value on the assets side and tax losses carried forward of € 630.1 million (previous year: € 610.9 million), as their effectiveness as final tax relief is not sufficiently assured.

No deferred tax assets in accordance with Section 12 of the Austrian Corporate Income Tax Act (Körperschaftsteuergesetz) were made for open one-seventh payments in the amount of € 130.0 million (previous year: € 52.3 million).

(16) Inventories

	31.12.2010 T€	31.12.2009 T€
Raw materials, auxiliary supplies and fuel	324,654	293,161
Finished goods and buildings	60,743	57,938
Unfinished goods and buildings	216,377	201,046
Development land	77,547	73,984
Payments made	26,400	29,574
	705,721	655,703

In the financial year, impairment in the amount of T€ 336 (previous year: T€ 3,877) was recognised on inventories excluding materials, auxiliary supplies and fuel. T€ 64,826 (previous year: T€ 76,193) of the inventories excluding raw materials, auxiliary supplies and fuel were reported with the net realisable value.

(17) Receivables and Other Assets

Receivables from Concession Arrangements

STRABAG has a 100 % interest in the Hungarian M5 Motorway Concession Company, AKA Alföld Koncesszios Autopalya Zrt., Budapest (AKA).

In the concession agreement with the Hungarian state, AKA committed to develop, plan, finance and to build and operate the M5 motorway. The motorway itself is the property of the state; all vehicles and equipment necessary for motorway operation are to be transferred to the state free of charge following the end of the concession period.

In exchange, AKA will regularly receive an availability fee, independent of transit volume, from the Hungarian state for making the motorway available to the public. AKA bears the operator's risk of motorway closure and non-compliance of contractually agreed roadway criteria.

The route totals 156.5 km and was built in three phases. The concession period runs until 2031. A one-time extension for up to 17.5 years is possible.

All services provided under this concession arrangement are accounted for under the separate balance sheet item receivables from concession arrangements. The receivables are carried at the present value of the payment to be made by the state. The annual accumulation amount is recognised in other operating income.

A part of the availability fee consists of interest adjustment payments of the Hungarian state. As a result, the state bears the interest risk from the financing of AKA. These interest adjustment payments represent an embedded hedging transaction which is measured separately in accordance with IAS 39.11. Presentation is made as a cash flow hedge; as a result, changes in the fair value of the interest rate swap are recognised directly in equity.

The positive market value of the interest rate swap in the amount of T€ 12,818 (previous year: T€ 31,440) is also recognised as long-term receivables from concession arrangements.

Recognisable receivables from concession arrangements are offset by non-recourse financing in the amount of T€ 715,099 (previous year: T€ 757,080), classified either as a current or non-current liability depending on the term. The resulting interest expense is recognised in other operating income.

The STRABAG consortium KMG – Kliplev Motorway Group was awarded the tender for Denmark's first PPP project. The consortium will plan and build 26 km of the E51 motorway from Kliplev to Sønderborg as well as 18 km of side roads and seven interchanges and will operate the road over a period of 26 years from completion. The total investment volume amounts to € 148 million. Following the planned completion in the spring of 2012, the road will be sold to the state. The operation will then be paid for by regular payments from the state. The interim financing of the construction works includes non-recourse financing in the amount of T€ 4,786 (previous year: T€ 0).

Receivables and other assets are comprised as follows:

	31.12.2010			31.12.2009
	total T€	thereof current T€	thereof non current T€	total T€	thereof current T€	thereof non current T€
Receivables from
concession arrangements	988,352	19,477	968,875	956,540	18,008	938,532
Trade receivables
Receivables from
construction contracts	5,019,411	5,019,411	0	5,245,042	5,245,042	0
Advances received	-4,071,486	-4,071,486	0	-4,580,005	-4,580,005	0
	947,925	947,925	0	665,037	665,037	0
Other trade receivables	1,329,336	1,265,296	64,040	1,383,241	1,321,831	61,410
Advances paid to
subcontractors	115,164	115,164	0	88,668	88,668	0
Receivables from consortia	220,594	220,405	189	326,053	326,053	0
	2,613,019	2,548,790	64,229	2,462,999	2,401,589	61,410
Other financial assets
Receivables from subsidiaries	118,132	117,815	317	96,170	96,170	0
Receivables from participation
companies	99,632	98,464	1,168	86,071	85,647	424
Other financial assets	259,541	224,248	35,293	184,250	151,944	32,306
	477,305	440,527	36,778	366,491	333,761	32,730
Non-financial assets	142,304	138,260	4,044	126,524	121,126	5,398

The non-financial assets contain income tax receivables in the amount of T€ 42,005 (previous year: T€ 48,262).

The receivables from construction contracts in progress at the balance sheet date are represented as follows:

	31.12.2010 T€	31.12.2009 T€
All contracts in progress at balance sheet date
Costs incurred to balance sheet date	9,839,604	8,941,388
Profits arising to balance sheet date	433,499	359,893
Accumulated losses	-225,886	-217,794
Less receivables recognised under liabilities	-5,027,806	-3,838,445
	5,019,411	5,245,042

Receivables from construction contracts amounting to T€ 5,027,806 (previous year: T€ 3,838,445) are recognised in liabilities, as advances received exceed the receivables.

As usual in the industry, the customer has the contractual right to retain part of the total amount of the invoice. These retentions are, however, redeemed as a rule by security (bank or group guarantees).

In the reporting period, impairment on other trade receivables developed as follows:

	31.12.2010 T€	31.12.2009 T€
Other trade receivables before impairment	1,452,111	1,493,691
Impairment as of 1.1.	110,450	105,241
Currency translation	878	-119
Changes in scope of consolidation	827	92
Allocation/utilisation	10,620	5,236
As of 31.12.	122,775	110,450
Book value of other trade receivables	1,329,336	1,383,241

(18) Cash and Cash Equivalents

	31.12.2010 T€	31.12.2009 T€
Securities	34,362	73,717
Cash on hand	2,736	2,818
Bank deposits	1,915,354	1,706,416
	1,952,452	1,782,951

(19) Assets Held for Sale

This item involves the property, plant and equipment assets of the Hungarian cement factory.

On 25 May 2010, Lafarge and STRABAG signed the agreement founding Lafarge Cement CE Holding GmbH with headquarters in Austria. Lafarge will bring its cement plants at Mannersdorf (A), Retznei (A), Čížkovice (CZ) and Trbovlje (SI) into the holding company, while STRABAG will contribute the plant it is currently building in Pécs (H).

Lafarge will hold a 70 % interest in the new company, while STRABAG will take 30 %. The joint cement holding was approved by cartel authorities in February 2011.

In place of the property, plant and equipment assets, the equity investment in the joint cement holding will be contained in the Transportation Infrastructures segment in the following periods.

The measurement was made taking into consideration the expected synergies from the joint venture.

(20) Equity

The fully paid-in share capital amounts to € 114,000,000 and is split into 113,999,997 no-par bearer shares and 3 registered shares.

The management board was authorised, with the approval of the supervisory board, to increase the share capital of the company by up to € 57,000,000 by 19 June 2014, in several tranches if necessary, by issuing up to 57,000,000 registered no-par shares for cash or contributions in kind (approved capital). In the case of capital increase through contributions in kind, the partial or full exclusion of the shareholders' subscription rights is possible.

The exercise, issue price and conditions of issue shall be determined with the approval of the supervisory board. The supervisory board was authorised to determine the necessary changes to the Articles of Association required upon the issuance of shares from the approved capital.

The following resolutions were passed at the Annual General Meeting of 18 June 2010:

The existing authorisation to buy back own shares as per resolution by the Annual General Meeting of 19 June 2009 was cancelled.

The management board was authorised to acquire bearer or registered no-par shares of the company on the stock market or over the counter to the extent of up to 10 % of the share capital during a period of 12 months from the day of the resolution at a minimum price per share of € 1.00 and a maximum price per share of € 34.00. The purpose of the acquisition may not be to trade with own shares. The authorisation can be exercised in full or in part or in several partial amounts for one or several purposes by the company, a subsidiary or third parties acting on behalf of the company.

The management board can decide to acquire shares on the stock exchange but must inform the supervisory board following decision to do so. Over-the-counter purchases require prior approval by the supervisory board.

The management board was further authorised, for a period of five years from this resolution, to sell or assign its own shares, with approval by the supervisory board, in a manner other than on the stock market or through a public tender, to the exclusion of the shareholders' buyback rights (subscription rights), and to determine the conditions of sale. The authorisation can be exercised in full or in part or in several partial amounts for one or several purposes by the company, a subsidiary or third parties acting on behalf of the company.

Retained earnings include differences arising from currency translation, statutory and mandatory reserves, financial instrument changes recorded directly in equity (including hedging reserves), as well as changes in equity from actuarial gains/losses from the calculation of provisions for personnel. The retained earnings also include the profit for the period as well as the result brought forward from previous periods of STRABAG SE and its consolidated subsidiaries, as far as these were not eliminated by the capital consolidation.

Details as to the equity of STRABAG SE are represented in the statement of changes in equity.

Long-term economic success, within the context of responsibility to our shareholders, customers, employees, suppliers, subcontractors and the company itself, is the primary entrepreneurial objective of the STRABAG Group. Working to pursue these goals, recognising opportunities and risks before and as they arise, and responsibly taking these into consideration safeguards the continuity of the group and protect the interests of the shareholders.

To guarantee the continuity of the company, the management and responsible employees assure that there is a balanced relationship between opportunities and risks during the section of projects and assess the individual risks against the background of the overall company risk.

The group equity ratio target was defined at between 20 % and 25 % during the IPO of STRABAG SE in October 2007. The equity capital ratio is calculated from the book value of the equity as of 31 December divided by the balance sheet sum as of 31 December. The equity contains all parts of the equity according to the balance sheet: share capital, capital reserves, retained earnings and non-controlling interests.

The group equity ratio as of 31 December 2010 amounted to 31 % (previous year: 32 %). With this equity base, the STRABAG Group will be able to participate increasingly in tenders for Public Private Partnership (PPP) projects. It means that the necessary funds for a participation in equity capital are available and that the related change in the balance sheet total will be manageable.

If the group is awarded the tender for large-scale projects, or if a strategically suitable acquisition is made, the equity ratio could briefly fall below the set minimum. In this case, the company reserves the right to adjust the dividend payments to the shareholders or to issue new shares.

	Balanc e as of 1.1.2010 t€	Currenc y tran sla tion t€	Chang es in scope of conso lida tion t€	Addi tions t€	Disposals t€	Impai rment t€	Balanc e as of 31.12.2010 t€
Provisions for sever
ance payments	70,479	311	-1,339	4,069	0	4,164	69,356
Provisions
for pensions	364,161	16	-198	41,856	569	30,4721)	374,794
Provisions for taxes	64,327	1,323	133	109,857	1,192	51,703	122,745
Other provisions:
Construction-related
provisions	475,551	4,332	2,469	288,240	16,177	164,671	589,744
Personnel-related
provisions	250,632	2,868	-477	160,417	3,335	149,804	260,301 2)
Other provisions	222,883	2,718	-7,623	184,216	26,103	154,273	221,818
	949,066	9,918	-5,631	632,873	45,615	468,748	1,071,863
	1,448,033	11,568	-7,035	788,655	47,376	555,087	1,638,758

(21) Provisions

The short-term provisions include provisions for taxes as well as other provisions in the amount of T€ 588,065 (previous year: T€ 516,080). The long-term provisions amounting to T€ 927,948 (previous year: T€ 867,626) mainly include severance provisions, pension provisions and provisions for guarantees.

Provisions for severance payments show the following development:

	T€	T€
Present value of the defined benefit obligation
as of 1 January	70,479	65,631
Changes in scope of consolidation	-1,339	2,688
Current service costs	2,561	3,248
Interest costs	3,203	3,435
Severance payments	-4,164	-6,051
Actuarial gains/losses	-1,384	1,528
Present value of the defined benefit obligation
as of 31 December	69,356	70,479

2010

2009

The provisions for pensions are formed for obligations from the right to future pension payments and current payments to present and past employees and their dependents. The obligations primarily refer to retirement pensions. The individual commitments are generally determined according to the employment conditions of the employee at the time of the commitment (et al. length of service, salary of employee). Basically no new commitments have been awarded since 1999.

The company pension scheme consists of a non-fund-financed, defined benefit pension plan. In the case of defined benefit pension systems, the company is obliged to fulfil payment commitments to present and past employees. There are no defined contribution plans in the form of financing by relief funds outside the group.

The amount of the provision is calculated using actuarial methods based on biometric tables of Klaus Heubeck (Germany) or the AVÖ 2008-P (Austria). This is based on a discounting rate of 5.00 % (previous year: 5.50 %) for provisions for severance payments and pensions and a salary increase of 2.25 % respectively 2.00 % for severance payments (previous year: 2.25 %). For future pension increases, a rate of escalation is set dependent on the contractual adaptation terms.

With reference to the company agreement concerning the old-age-part-time settlement, which had initially affected the operative German companies in the STRABAG Group in 2000, further additional obligations for retirement indemnity payments incurred. These obligations have been transferred to the STRABAG Unterstützungskasse GmbH, Cologne. The old-age-part-time indemnity payments are determined using the same basic principles as for the pension provisions. They are included in the group as a result of the consolidation of the STRABAG Unterstützungskasse GmbH, Cologne.

	2010 T€	2009 T€
Present value of the defined benefit obligation as of 1 January	364,161	405,856
Changes in scope of consolidation	-198	237
Current services costs	3,542	3,065
Interest costs	19,295	21,764
Pension payments1)	-24,212	-24,962
Actuarial gains/losses	18,466	20,182
Transfer of obligations to pension funds	0	-61,981
Reclassification of plan assets	-6,260	0
Present value of the defined benefit obligation
as of 31 December2)	374,794	364,161

The development of the provisions for pensions is shown below:

The accumulated actuarial gains and losses for defined pension benefit plans and severance provisions, which were recognised directly in equity, as of 31 December 2010 amounted to T€ 32,471 (previous year: T€ 15,389).

The experience adjustments to pension and severance provisions are represented as follows:

	31.12.2010 T€	31.12.2009 T€	31.12.2008 T€	31.12.2007 T€	31.12.2006 T€
Present value of the defined
benefit obligation	69,356	70,479	65,631	61,175	59,566
Present value of the defined
benefit obligation (pension provision)	385,824	364,161	406,157	293,730	287,290
Fair value of plan assets	-11,030	0	-301	-194	-4,709
Budgeted deficit	444,150	434,640	471,487	354,711	342,147

1) Thereof change of plan assets T€ 4,770 (previous year: T€ 301) 2) Thereof deducted plan assets T€ 11,030 (previous year: T€ 0)

Continuation	31.12.2010 T€	31.12.2009 T€	31.12.2008 T€	31.12.2007 T€	31.12.2006 T€
Experience adjustments of
severance provision	-1,384	1,528	1,214	583	3,587
Experience adjustments
of pension provision	18,466	20,182	-21,927	-3,015	-933
Experience adjustments	17,082	21,710	-20,713	-2,432	2,654

The provisions for taxes mainly comprise current income taxes.

Other Provisions

The construction-related provisions include other warranty obligations, costs of the contract execution and subsequent costs of invoiced contracts, as well as impending losses from projects pending which are not accounted for elsewhere. The personnel-related provisions essentially include anniversary bonus obligations, contributions to occupational accident funds as well as costs of the old-age-part-time scheme and personnel downsizing measures. Other provisions include provisions for damages and litigations and restructuring.

(22) Liabilities

	31.12.2010			31.12.2009
	total T€	thereof current T€	thereof non current T€	total T€	thereof current T€	thereof non current T€
Financial liabilities
Bonds	345,000	75,000	270,000	320,000	75,000	245,000
Bank borrowings	1,146,739	147,877	998,862	1,109,435	144,623	964,812
Liabilities from finance leases	62,892	17,970	44,922	75,383	14,892	60,491
Other liabilities	4,521	0	4,521	4,344	0	4,344
	1,559,152	240,847	1,318,305	1,509,162	234,515	1,274,647
Trade payables
Receivables from
construction contracts1)	-5,027,806	-5,027,806	0	-3,838,445	-3,838,445	0
Advances received	5,873,000	5,873,000	0	4,153,349	4,153,349	0
	845,194	845,194	0	314,904	314,904	0
Other trade payables	2,067,350	2,024,119	43,231	2,068,877	2,028,866	40,011
Payables to consortia	198,446	198,446	0	291,475	291,475	0
	3,110,990	3,067,759	43,231	2,675,256	2,635,245	40,011
Other financial liabilities
Payables to subsidiaries	66,723	65,545	1,178	48,939	48,939	0
Payables to
participation companies	20,199	19,691	508	18,904	18,750	154
Other financial liabilities	348,371	326,210	22,161	398,812	330,876	67,936
	435,293	411,446	23,847	466,655	398,565	68,090
Non-financial liabilities	356,384	355,381	1,003	361,430	360,363	1,067

In order to secure liabilities to banks, real securities amounting to T€ 123,350 (previous year: T€ 87,087) have been booked.

(23) Contingent Liabilities

The company has accepted the following guarantees:

Guarantees without financial guarantees 12,633 6,787

(24) Off-Balance Sheet Transactions

In the construction industry, it is customary and necessary to provide various types of guarantees to secure the contractual obligations. These guarantees are usually issued by banks or credit insurers and most commonly comprise bid, contract performance, prepayment and warranty guarantees. In the event these guarantees are called upon, the relevant banks have a contractual right of recourse against the group. The risk that such guarantees are utilised and that a right of recourse arises materialises only if the primary contractual obligations are not properly performed.

Obligations and possible risks from such guarantees are recognised in the balance sheet as provisions or liabilities.

Not included in the balance sheet or the contingent liability as of 31 December 2010 are fulfilment guarantees in the amount of € 2.0 billion (previous year: € 1.8 billion) of which an outflow of resources is unlikely.

As is customary in the industry, STRABAG SE shares liability with the other partners of consortia and joint ventures in which companies of the STRABAG Group hold a share interest.

(25) Notes to the Consolidated Cash Flow Statement

The representation of the cash-flow statement was made according to the indirect method and separated into the cash-flows classified by operating, investing and financing activities. The cash and cash equivalents include exclusively cash on hand, bank deposits and short-term securities. Any effects of changes in consolidation were eliminated and represented in the cash-flow from investing activities.

The cash and cash equivalents are composed as follows:

	31.12.2010 T€	31.12.2009 T€
Securities	34,362	73,717
Cash on hand	2,736	2,818
Bank deposits	1,915,354	1,706,416
	1,952,452	1,782,951

The cash and cash equivalents include deposits abroad in the amount of T€ 7,584 (previous year: T€ 7,466), subject to the restriction that they may only be transferred to another country following official completion of the construction order. Of the cash and cash equivalents, T€ 21,674 (previous year: T€ 5,334) are pledged as collateral (see also item 26).

(26) Financial Instruments

A financial instrument is a contract that results in a financial asset at one enterprise and a financial liability or equity instrument at another. Financial assets include especially cash and cash equivalents, trade receivables and other receivables and derivatives. Financial liabilities are obligations to pay cash or other financial assets. These include especially financial liabilities such as bank borrowing, bonds, liabilities arising from financial leasing and trade payables. Initial recognition is carried out in principle using settlement date accounting.

The financial instruments as of the balance sheet date were as follows:

		31.12.2010	31.12.2010	31.12.2009	31.12.2009
	Measurement category acc ording to	Carrying value	Fair value	Carrying value	Fair value
	IAS 39	t€	T€	t€	T€
ASSETS
Valuation at
historical costs
Loans to subsidiaries	L&R	163	163	10,283	10,283
Loans to participation
companies	L&R	12,566	12,566	12,702	12,702
Other loans	L&R	4,248	4,248	4,611	4,611
Trade receivables	L&R	2,613,019	2,613,019	2,462,999	2,462,999
Receivables from
concession arrangements	L&R	975,534	975,534	925,100	925,100
Other financial assets	L&R	473,359	473,359	362,028	362,028
Non-financial assets	no FI	142,304		126,524
Cash and cash equivalents	L&R	1,918,090	1,918,090	1,709,234	1,709,234
		6,139,283	5,996,979	5,613,481	5,486,957
Valuation at fair value
Investments in subsidiaries	AfS	86,023	86,023 1)	73,569	73,5691)
Other investments	AfS	104,535	104,535 1)	111,903	111,9031)
Securities	AfS	49,721	49,721	27,765	27,765
Cash and cash equivalents	AfS	34,362	34,362	73,717	73,717
Derivatives		16,764	16,764	35,903	35,903
		291,405	291,405	322,857	322,857
LIABILITIES
Valuation at historical costs
Financial liabilities	FLaC	-1,559,152	-1,547,733	-1,509,162	-1,498,367
Trade payables	FLaC	-2,265,796	-2,265,796	-2,360,352	-2,360,352
Liabilities from
construction contracts	no FI	-845,194		-314,904
Other financial liabilities	FLaC	-395,630	-395,630	-344,475	-344,475
Non-financial liabilities	no FI	-356,384		-361,430
Derivatives		-39,663	-39,663	-122,180	-122,180
		-5,461,819	-4,248,822	-5,012,503	-4,325,374
Total		968,869	2,039,562	923,834	1,484,441
Measurement categories
Loans and receivables (L&R)		5,996,979	5,996,979	5,486,957	5,486,957
Available for sale (AfS)		274,641	274,641	286,954	286,954
Financial liabilities at
amortised costs (FLaC)		-4,220,578	-4,209,159	-4,213,989	-4,203,194
Derivatives		-22,899	-22,899	-86,277	-86,277
No financial instruments		-1,059,274		-549,810
Total		968,869	2,039,562	923,834	1,484,440

The fair value measurement at 31 December 2010 for financial instruments measured at fair value was done as follows:

	Val uation at market value t€	Val uation using inp ut taken from observa ble market data t€	Other Val uation methods T€	total t€
ASSETS
Investments in subsidiaries	0	0	86,023	86,023
Other investments	0	0	104,535	104,535
Securities	49,720	0	0	49,720
Cash and cash equivalents	34,362	0	0	34,362
Derivatives	0	16,764	0	16,764
Total	84,082	16,764	190,5581)	291,404
LIABILITIES
Derivatives	0	-39,663	0	-39,663
Total	0	-39,663	0	-39,663

The fair value measurement at 31 December 2009 for financial instruments measured at fair value was done as follows:

	Val uation at market value t€	Val uation using inp ut taken from observa ble market data t€	Other Val uation methods T€	total t€
ASSETS
Investments in subsidiaries	0	0	73,569	73,569
Other investments	0	0	111,903	111,903
Securities	27,765	0	0	27,765
Cash and cash equivalents	73,717	0	0	73,717
Derivatives	0	35,903	0	35,903
Total	101,482	35,903	185,4722)	322,857
LIABILITIES
Derivatives	0	-122,180	0	-122,180
Total	0	-122,180	0	-122,180

Cash and cash equivalents, trade receivables and other receivables have for the most part short remaining terms. Accordingly, their book values on the balance sheet date approximate their fair value. The fair value of non-current financial assets corresponds to the present value of the related payments under consideration of the prevailing market parameters.

Trade payables and other financial liabilities typically have short terms; their book values approximate the fair value. The fair value of bonds, bank borrowing and liabilities arising from financial leasing are measured at the present value of the payments associated with them under consideration of the relevant applicable market parameters as far as market values were not available.

T€ 21,674 (previous year: T€ 5,334) of the cash and cash equivalents, T€ 3,506 (previous year: T€ 3,489) of the securities and T€ 10,112 (previous year: T€ 10,554) of the other financial instruments were pledged as collateral for liabilities.

The non-recourse liabillities related to the concession receivable are hedged using the income from the concession receivable.

¹⁾ Investments in subsidiaries and other investments amounting to T€ 179,202 are recognised at cost less impairment according to IAS 39 because their fair value cannot be reliably determined.

²⁾ Investments in subsidiaries and other investments amounting to T€ 179,019 are recognised at cost less impairment according to IAS 39 because their fair value cannot be reliably determined.

The net income effects of the financial instruments according to valuation category are as follows:

	L&R 2010 T€	AfS 2010 T€	FLaC 2010 T€	Deriv atives 2010 T€	L&R 2009 T€	AfS 2009 T€	FLaC 2009 T€	Deriv atives 2009 T€
Interest	60,323	0	-58,200	0	64,244	0	-60,721	0
Interest from receivables
from concession
arrangements	72,862	0	-30,206	-7,385	72,914	0	-31,910	-8,601
Result from securities	0	966	0	0	0	1,022	0	0
Impairment losses	-33,985	-653	0	-2,677	-33,348	-8,794	0	0
Disposal losses/profits	0	-554	0	0	0	3,496	0	0
Gains from derecognition
of liabilities and payments
of written off receivables	9	0	6,099	0	185	0	9,413	0
Net income recognised
in profit or loss	99,209	-241	-82,307	-10,062	103,995	-4,276	-83,218	-8,601
Value changes recognised
directly in equity	0	-1,183	0	15,743 1)	0	0	0	44,351
Net income	99,209	-1,424	-82,307	5,681	103,995	-4,276	-83,218	35,750

Dividends and expenses from investments shown in the net investment income are part of the operating income and therefore not part of the net income of financial instruments. Impairment losses, reversal of impairment losses, disposal gains and disposal losses of loans & receivables (L&R) and of financial liabilities amortised at cost (FLaC) are carried in other income or other expenses.

Impairment losses, reversal of impairment losses, disposal gains and disposal losses of the financial instruments available for sale are carried in the net investment income if they are investments in subsidiaries or other investments, otherwise in net interest.

Derivative instruments are used exclusively to hedge existing risks resulting from changes in currency and interest rates. The use of derivative financial instruments in the group is subject to the appropriate approval and control procedures. The connection to a mainstay business is a must, trading is not permissible.

Principles of Risk Management

The STRABAG Group is subject to credit, market and liquidity risks related to its assets, liabilities and planned transactions. The goal of financial risk management is to minimise these risks through ongoing financially oriented activities.

The basics of the financial policy are set by the management board and monitored by the supervisory board. The implementation of the financial policy and responsibility for the risk management are the domain of the group treasury. Certain transactions require prior approval by the board of management, which is regularly informed as to the scope and amount of the current risk exposure.

Interest Rate Risk

The financial instruments bear variable interest rates on the assets side, on the liabilities side there are both variable and fixed interest obligations. The risk of financial instruments bearing variable interest rates consists of increasing interest charges and sinking interest revenue resulting from an unfavourable change in market interest rates. Fixed interest obligations mainly result from the tranches of the bonds issued by STRABAG SE amounting to a total of € 325 million.

As of 31 December 2010, following hedging transactions in connection with concession arrangements existed:

	31.12.2010		31.12.2009
	Nominal value T€	Market value T€	Nominal value T€	Market value T€
Interest rate swaps	880,082	12,419	757,080	31,440
		12,419		31,440

The amount of bank deposits and bank borrowings according to currency – giving the average interest rate at balance sheet date – is represented as follows:

Bank Deposits

	Carrying value 31.12.2010 t€	Weighted averag e interest rate 2010 in %
EUR	982,736	0.88
PLN	491,551	3.27
CZK	178,923	0.46
Others	262,144	1.11
Total	1,915,354	1.53

Bank Borrowings	Carrying value 31.12.2010 t€	Weighted averag e interest rate 2010 in %
EUR	1,043,270	2.76
Others	103,469	4.50
Total	1,146,739	2.92

Had the interest rate level at 31 December 2010 been higher by 100 basis points, then the result would have been higher by T€ 10,961 (previous year: T€ 8,209) and the equity at 31 December 2010 would have been higher by T€ 48,227 (previous year: T€ 50,881). Had the interest rate level been lower by 100 basis points, this would have meant a correspondingly lower equity and profit before tax. The calculation is made based on the level of interest-bearing financial assets and liabilities at 31 December. Tax effects from interest rate changes were not considered.

Currency Risk

Due to the decentralised structure of the group, characterised by local companies in the respective countries, mainly closed currency positions appear in the balance sheet. Loan financing and investments were predominantly made by the group companies in the respective country's local currency. Receivables and liabilities from business activities mainly offset each other in the same currency.

The remaining currency risk mainly results when the currency of the order deviates from the functional currency of the subsidiary.

This involves in particular orders in Eastern Europe and the CIS states which are concluded in EUR. The planned proceeds are received in the currency of the order while a substantial part of the associated costs are made in the local currency.

In order to limit the remaining currency risk and secure the calculation, derivative financial instruments, above all forward exchange operations, were transacted. As of 31 December 2010, the following hedging transactions existed for the underlying transactions mentioned below:1)

Currenc y	Expected ca sh fl ows 2011 t€	Expected ca sh fl ows 2012 t€	expected ca sh fl ows Total t€	Positive market value of the hed ging tran sac tion t€	Negative market value of the hed ging tran sac tion t€
HUF	27,770	0	27,770	1,438	-1,952
PLN	475,007	48,075	523,082	4,646	-7,239
Others	18,229	0	18,229	0	-240
Total	521,006	48,075	569,081	6,084	-9,431

As of 31 December 2009, the following hedging transactions existed for the underlying transactions mentioned below:

Currenc y	Expected ca sh fl ows 2010 t€	Expected ca sh fl ows 2011 t€	Expected ca sh fl ows Total t€	Positive market value of the hed ging tran sac tion t€	Negative market value of the hed ging tran sac tion t€
HUF	6,391	0	6,391	91	-1,176
PLN	204,000	7,000	211,000	4,373	-35,433
Total	210,391	7,000	217,391	4,464	-36,609

Of the derivative financial instruments classified as cash-flow hedges as of 31 December 2009, T€ -30,680 (previous year: T€ -53,143) were shifted from equity and recognised in the consolidated income statement in the 2010 financial year. The resulting deferred tax expense amounted to T€ 7,670 (previous year: tax income of T€ 13,286).

The other liabilities contain a foreign currency derivative in the amount of T€ 28,521 (previous year: T€ 84,523).

Development of the important currencies in the group:

Currenc y	Exchang e rate 31.12.2010 1 € =	Averag e 2010 1 € =	Exchang e rate 31.12.2009 1 € =	Averag e 2009 1 € =
HUF	277.9500	276.5075	270.4200	281.4375
CZK	25.0610	25.2631	26.4730	26.4956
HRK	7.3830	7.2949	7.3000	7.3444
CHF	1.2504	1.3700	1.4836	1.5076

Essentially, the Polish zloty, the Czech crown and the Hungarian forint are affected by revaluation (devaluation). A 10 % revaluation of the euro over all other currencies at 31 December 2010 would mean an increase in equity by T€ 9,136 (previous year: decrease by T€ 19,981) and an increase in profit before tax T€ 9,136 (previous year: decrease T€ 17,432). A devaluation compared to all other currencies would result in a corresponding decrease in equity (previous year: increase) and a decrease of profit before tax.

The calculation is based on original and derivative foreign currency holdings in non-functional currency as of 31 December as well as underlying transactions for the next 12 months. The effect on tax resulting from changes in currency exchanges rates was not taken into consideration.

Credit Risk

The maximum risk of default of the financial assets on the balance sheet date was T€ 4,335,932 (previous year: T€ 4,026,863) and corresponds to the book values presented in the balance sheet. Thereof T€ 2,613,019 (previous year: T€ 2,462,999) involve trade receivables. Receivables from construction contracts and related to consortia involve ongoing construction projects and are therefore not yet payable for the most part. Of the remaining trade receivables in the amount of T€ 1,329,336 (previous year: T€ 1,383,241), less than 1 % are overdue and not written down.

The risk for receivables from clients can be rated as low, due to the wide dispersion, a constant creditworthiness check and the presence of the public sector as an important employer.

The risk of default for other primary financial instruments shown on the assets side can also be regarded as low, as the contract partners are exclusively financial institutions with the highest level of creditworthiness.

Furthermore, there is a derived credit risk arising from the financial guarantee contracts (guarantees issued) of T€ 42,754 (previous year: T€ 41,368).

Financial assets are written down item by item if the book value of the financial assets is higher than the present value of the future cash-flows. This can be triggered by financial difficulties, insolvency of the client, breach of contract or significant default of payment. The write-down is composed of many individual items of which none, seen alone, is significant. In addition to the estimation of the creditworthiness risk, the relevant country risk is also taken into consideration. Graduated valuation adjustments are formed according to risk groups to take into consideration general credit risks.

Liquidity Risk

Liquidity for the STRABAG SE Group means not only solvency in the strict sense but also the availability of the necessary financial margin for mainstay business through sufficient aval lines.

To guarantee financial flexibility, liquidity reserves are kept in the form of cash and credit lines for cash and aval loans. The STRABAG SE Group keeps bilateral credit lines with banks and a syndicated aval credit line in the amount of € 2.0 billion. The overall line for cash and aval loan amounts to € 6.2 billion.

The medium- and long-term liquidity needs have so far been covered by the issue of corporate bonds as well. From 2005 to 2008 every year a tranche of € 75 million each with a term to maturity of five years was issued. In May 2010, STRABAG issued a further bond in the amount of € 100 million with a term of 5 years. The annual coupon interest of the bond amounts to 4.25 %. The corporate bond from the year 2005 in the amount of € 75 million was paid in June 2010. Depending on the market situation and the appropriate need, further bonds are planned.

The following payment obligations arise from the financial liabilities (interest payments based on interest rate as of 31 December and redemption) for the subsequent years:

Payment obligations as of 31 December 2010

	Carrying values 31.12.2010 T€	Cash-fl ows 2011 T€	Cash-fl ows 2012-2015 T€	Cash-fl ows after 2015 T€
Financial liabilities:
Bonds	345,000	93,211	302,458	0
Bank borrowings	1,146,739	197,803	538,032	602,386
Liabilities from financial leasing	62,892	20,567	35,205	17,754
Other liabilities	4,521	0	4,800	0
	1,559,152	311,581	880,495	620,140

Payment obligations as of 31 December 2009

	Carrying values 31.12.2009 T€	Cash-fl ows 2010 T€	Cash-fl ows 2011-2014 T€	Cash-fl ows after 2014 T€
Financial liabilities:
Bonds	320,000	92,148	274,079	0
Bank borrowings	1,109,435	180,817	469,910	674,087
Liabilities from financial leasing	75,383	18,892	41,728	23,148
Other liabilities	4,344	0	4,800	0
	1,509,162	291,857	790,517	697,235

The trade payables and the other liabilities (see item 22) essentially lead to cash outflows in line with the maturity at the amount of the book values.

(27) Segment Reporting

The rules of IFRS 8 Operating Segments apply to the segment reporting. IFRS 8 prescribes defining the segments and reporting the earnings on the basis of the internal reporting (Management Approach). Segment assets are not disclosed as these do not form part of the regular internal reporting.

Internal reporting at STRABAG is based on the dedicated management board functions Building Construction & Civil Engineering, Transportation Infrastructure, Special Divisions & Concessions and the Central Business Units, which – as has previously been the case – represent the group's segments. The settlement between the single segments is made at arm's-length prices.

From 1 January 2010, STRABAG is grouping its activities in non-European markets which had previously been handled under the segments Building Construction & Civil Engineering and Transportation Infrastructures in the Special Divisions & Concessions segment. For the purposes of comparison, the previous year's figures were adjusted to the new structure.

The segment reporting comprises the following business fields:

Building Construction & Civil Engineering

In the field of Building Construction, both classical building services as well as turnkey building projects are executed as part of the mainstay business. The range of construction services in this field includes housing; commercial and industrial facilities such as shopping centres, business parks, office buildings, hotels, airports and railway stations; public buildings such as hospitals, universities, schools and other public buildings; the production of prefabricated elements; and steel-girder and facade construction.

In particular medium-sized and large-scale projects – predominantly for private clients – form the core of the business activities. Regional organisational units work the respective local markets and are active as self-contained and independent profit centres.

Civil Engineering activities include the construction of bridges and power plants. Environmental engineering activities – including the construction of landfills, waste treatment plants, and waste water collection and treatment systems, as well as the regeneration of polluted soils and industrial sites – are handled by the Civil Engineering business field as well.

Transportation Infrastructures

This business field covers mainly asphalt and concrete road construction in the group's relevant country markets. Other services encompassed by the Road Construction division include the remaining activities attributable to civil engineering, e.g. earth moving, sewer engineering and pipeline construction, smaller and medium-sized engineering-related concrete structures, and paving. The Road Construction segment further comprises the construction of large-area works such as runways and taxiways, landing fields for airports, reloading and parking facilities, sport and recreation facilities and railway structures.

The production of asphalt, concrete and other construction materials, as well as bitumen trading, are important parts of the Road Construction segment as well. The construction materials business includes a dense network of asphalt and concrete mixing facilities, as well as excellent access to raw materials (in particular gravel pits and quarries).

Unlike is the case with projects handled by the Civil Engineering division, the services in this business field are carried out by smaller, local organisational units working a limited, regional market as independent profit centres.

Special Divisions & Concessions

This segment comprises tunnelling, specialty foundation engineering, project developments and other constructionrelated services such as property and facility management. Since 1 January 2010, the segment also includes the non-European operational project business of all divisions.

The range of Tunnelling services includes the construction of road and railway tunnels as well as underground galleries and chambers with various technology. Tunnelling work is done employing both cyclical and continuous driving. Projects around the world are managed and executed by central organisational units.

The concessions business field encompasses those project development contracts around the world which include all integrated services such as financing, operation, marketing and utilisation, as well as the usual construction services, within the framework of a value-added chain in an overall project. Services include infrastructure projects (e.g. traffic, energy), as well as building projects for office and commercial properties or hotels.

Other

This segment comprises the central business units and central staff units, which handle services in the areas of accounting, group financing, technical development, machine management, quality management, logistics, legal affairs, contract management and more.

Segment reporting for the financial year 2010

	Building Construc tion and Civil Engi neering 2010 T€	Tran spor tation Infra structures 2010 T€	Special Divisions & Conc essi ons 2010 T€	other T€	Reconcilia tion to IFRS Financial Statements 2010 T€	Total 2010 T€
Output Volume	4,279,067	5,809,939	2,517,845	170,149		12,777,000
Revenue	3,975,839	5,691,964	2,671,855	41,879	0	12,381,537
Inter-segment revenue	141,672	64,871	0	846,260
EBIT	153,766	183,583	-15,542	873	-23,729	298,951
-thereof share of profit
or loss of associates	0	30,653	1,733	0	0	32,386
Interest and similar income	0	0	0	78,709	0	78,709
Interest expense
and similar charges	0	0	0	-98,386	0	-98,386
Profit before tax	153,766	183,583	-15,542	-18,804	-23,729	279,274
Investments in property,
plant and equipment,
and in intangible assets	0	0	0	553,843	0	553,843
Depreciation and amortisation	6,893	27,643	19,691	381,515	0	435,742
-thereof extraordinary
depreciation and amortisation	6,893	27,643	15,000	22,215	0	71,751

Segment reporting for the financial year 2009

	Building
	Construc		Special		Reconcilia
	tion and	Tran spor	Divisions &		tion to IFRS
	Civil Engi	tation Infra	Conc essi		Financial
	neering 2009	structures 2009	ons 2009	other	Statements 2009	Total 2009
	T€	T€	T€	T€	T€	T€
Output Volume	4,427,158	5,708,486	2,715,921	169,449		13,021,014
Revenue	4,059,433	5,605,806	2,849,865	36,824	0	12,551,928
Inter-segment revenue	105,106	268,886	4,628	793,627
EBIT	124,441	142,947	34,464	1,506	-20,510	282,848
-thereof share of profit
or loss of associates	0	16,059	-28,774	0	0	-12,715
Interest and similar income	0	0	0	78,332	0	78,332
Interest expense and
similar charges	0	0	0	-98,219	0
Profit before tax	124,441	142,947	34,464	-18,381	-20,510	262,961
Investments in property,
plant and equipment,
and in intangible assets	0	0	0	508,725	0	508,725
Depreciation and amortisation	3,000	22,401	6,940	369,059	0	401,400
-thereof extraordinary depreci
ation and amortisation	3,000	22,401	0	21,030	0	46,431

Reconciliation of the Sum of the Segment Earnings to profit before Tax according to IFRS Financial Statements

Income and expense in the internal reporting are essentially shown in accordance with IFRS. An exception is income taxes, including those applicable to deferred tax, which are not considered in the internal reporting.

The basis for the internal reporting is formed by all subsidiaries. In the IFRS financial statements, earnings from companies which were not fully consolidated or reported using the equity method are recognised in conformity with dividends, transfer of earnings and/or depreciation and amortisation. For this reason, the internal reporting does not conform 100 % with EBIT in regards to profit before tax in the consolidated financial statements in terms of the investment result.

Other minor differences result from the other consolidation entries.

Reconciliation of the internal reporting to IFRS Financial Statements is allocated as follows:

	2010 T€	2009 T€
Investment income	-17,927	-13,072
Other consolidations	-5,802	-7,438
Total	-23,729	-20,510

Breakdown of revenue by geographic region

	2010 T€	2009 T€
Germany	5,113,787	5,334,036
Austria	2,114,846	2,496,432
Other Europe	4,515,675	4,204,796
Other World	637,229	516,664
Total	12,381,537	12,551,928

Presentation of revenue by region is done according to the company's registered place of business.

(28) Notes on Related Parties

The core shareholders of STRABAG SE are the Haselsteiner-Group, as well as the Raiffeisen-Holding NÖ-Wien Group, the UNIQA Group and Rasperia Trading Limited, owned by Russian businessman Oleg Deripaska.

The core shareholder Rasperia Trading Limited holds one registered share. The company sold its previous interest of 25 % to the other core shareholders. On 30 November 2010, Rasperia bought back 17 % of the shares and the option to purchase the remaining 8 % was extended until July 2014. The syndicate agreement remains unchanged, with Rasperia remaining part of the syndicate.

Arm's-length finance and insurance transactions exist with the Raiffeisen-Holding NÖ-Wien Group and the UNIQA Group.

BASIC Element

The Basic Element Group, a group with numerous industrial holdings, among other things in the area of construction, raw materials and infrastructure, is owned by Russian businessman Oleg Deripaska. A cooperating agreement lays out the principles for joint operating cooperation in Russia and the CIS states between the STRABAG SE Group and the Basic Element Group.

STRABAG was hired in 2008 to renovate Adler International Airport together with Russian construction company Renaissance Construction. The contract has a volume of € 62 million. Adler International Airport is part of the airport business of Basic Element. This project generated revenue in the amount of € 6 million in the 2010 financial year (previous year: € 36 million). On the balance sheet date of 31 December 2010, STRABAG SE had receivables in the amount of € 3 million (previous year: € 4 million). The completion took place in 2010.

Russian construction company Glavstroy Corporation, a member of the Basic Element Group, commissioned STRABAG to build the Olympic village in Sochi, Russia. The order includes the construction of residences and hotels ahead of the 2014 Winter Olympics and has a value of about € 350 million. The contract, which was signed in 2010, is still pending the final financing of the project. The construction works are due to begin in 2011 and are scheduled for completion in 2013.

To consolidate and expand the business in Russia, STRABAG made an advance payment of € 70 million for a 26 % stake in the leading Russian road construction company Transstroy, part of the diversified industrial holding Basic Element. STRABAG will take the time for a thorough due diligence of Transstroy, which posted revenues of RUB 39 billion in 2009, before the parties agree on a transaction and on the final purchase price. The advance payment is reported under other financial assets.

IDAG

IDAG Immobilienbeteiligung u. Development GmbH is entirely held by private foundations whose beneficiaries are the Haselsteiner Group and the Raiffeisen-Holding NÖ-Wien Group. It is the business purpose of IDAG Immobilienbeteiligung u. -Development GmbH to develop property and to participate in property projects.

STRABAG's office buildings in Vienna and Graz are held in the real estate portfolio of subsidiaries of IDAG Immobilienbeteiligung u. -Development GmbH. The buildings are let to and in part sublet by STRABAG SE at the usual market conditions. Rental costs arising from both buildings in the 2010 financial year amounted to T€ 7,191 (previous year: T€ 7,249). Other services in the amount of T€ 1,317 (previous year: T€ 0) were obtained from the IDAG Group.

Furthermore, revenues of about € 2.2 million (previous year: about € 6.0 million) were made with IDAG Immobilienbeteiligung u. –Development GmbH in the 2010 financial year. At the balance sheet date of 31 December 2010, the STRABAG SE Group had receivables from rental deposits amounting to around € 18.8 million (previous year: € 18.0 million) from IDAG Immobilienbeteiligung u. -Development GmbH.

Associates

In September 2003, Raiffeisen evolution project development GmbH, a joint project development company, was founded together with R.B.T. Beteiligungsgesellschaft m.b.H, "URUBU" Holding GmbH (both Raiffeisen group) and UNIQA Beteiligungs-Holding GmbH.

Raiffeisen evolution project development GmbH bundles project developments in building construction activities of the shareholders (excluding Germany and Benelux). STRABAG SE is employed in the construction work on the basis of arm's-length contracts. In 2010 revenues of about € 21.5 million (previous year: € 13.0 million) were made.

The shareholders of the Raiffeisen evolution project development GmbH have basically agreed to proportionally accept any obligations arising from the project developments.

The business relationships to the other associates can be presented as follows:

	2010 T€	2009 T€
Work and services performed	27,929	444,966
Work and services received	22,736	36,310
Receivables at 31.12.	13,450	25,271
Liabilities at 31.12.	13	2,969

The business relations to the management board members and the first management level (management in key positions) whose family members and companies which are controlled by the management in key positions or decisively influenced by them are represented as follows:

	2010 T€	2009 T€
Work and services performed	6,662	4,586
Work and services received	2,504	4,509
Receivables at 31.12.	4,841	2,537
Liabilities at 31.12.	229	199

(29) Notes on the Management and Supervisory Boards

Management Board

Dr. Hans Peter Haselsteiner (Chairman) Ing. Fritz Oberlerchner (Vice Chairman) Dr. Thomas Birtel Dipl.-Ing. Roland Jurecka (until 31.12.2010) Dr. Peter Krammer Mag. Wolfgang Merkinger (until 31.8.2010) Mag. Hannes Truntschnig Dipl.-Ing. Siegfried Wanker (since 1.1.2011)

Supervisory Board

Dr. Alfred Gusenbauer (Chairman, since 18.6.2010) Univ. Prof. DDr. Waldemar Jud (Chairman, until 18.6.2010) Mag. Kerstin Gelbmann (since 18.6.2010) Mag. Erwin Hameseder (Vice Chairman) Andrei Elinson Dr. Gerhard Gribkowsky (unti 18.6.2010) Dr. Gottfried Wanitschek Ing. Siegfried Wolf

Dipl.-Ing. Andreas Batke (works council) Miroslav Cerveny (works council) Magdolna P. Gyulainé (works council) Wolfgang Kreis (works council) Gerhard Springer (works council)

The total salaries of the management board members in the financial year amount to T€ 7,798 (previous year: T€ 8,669). The severance payments for management board members amount to T€ 531 (previous year: T€ 55).

The remunerations for the supervisory board members in the amount of T€ 135 (previous year: T€ 135) are included in the expenses. Neither the management board members nor the supervisory board members of STRABAG SE received advances or loans.

(30) Other Notes

The expenses for the auditor, KPMG Austria GmbH, incurred in the financial year amount to T€ 1,130 (previous year: T€ 1,107) of which T€ 1,052 (previous year: T€ 1,042) were for the audit of the consolidated financial statements and T€ 78 (previous year: T€ 65) for other services.

(31) Events after the Balance Sheet Date

Since the middle of January 2011, political unrest has been spreading throughout the Arab world, starting in Tunisia and Egypt. In February, the unrest reached Libya, where opposition forces have been engaged in a bloody fight with forces loyal to the government since the uprising began (last update: end of March 2011).

STRABAG operates in several Arab countries and has had an order volume in the triple-digit million euros in Libya since 2008. The orders mainly involve large infrastructure projects, including the construction of the airport motorway in the Libyan capital of Tripoli as well as the modernisation of the urban infrastructure in Tajura, east of Tripoli.

In order not to put any of our workers in danger, the approximately 70 European employees in Libya and some 1,000 foreign workers were safely brought out of the country. The construction sites were closed and the equipment was secured as much as possible. STRABAG will take inventory and assess the situation once this is possible without danger. Only then can possible damage be identified and a decision be made as to how to proceed. At the moment, it remains unclear when respectively to what extent the work can be resumed.

It appears that parts of the STRABAG construction camps in Libya have been burnt down and that equipment and vehicles have been stolen. There also is the risk that guarantees which STRABAG had placed for the construction contracts will be drawn.

There is partial insurance to cover these risks. Because of the politically unstable situation, however, it remains unclear to what extent there is legal recourse to claim this coverage. STRABAG does not expect any noteworthy impact on results for 2011.

Villach, 8 April 2011

Board of Management

Dr. Hans Peter Haselsteiner Chairman of the Management Board Responsibilities for Central Staff Units, BMTI 01, BRVZ 02, TPA 04, BLT 05 Central Division and technical Responsibilities for Building Construction & Civil Engineering of Russia and Neighbouring Countries

Ing. Fritz Oberlerchner Vice Chairman Technical Responsibilities for Transportation Infrastructures

Dr. Thomas Birtel Commercial Responsibilities for Building Construction & Civil Engineering

Dr. Peter Krammer Technical Responsibilities for Building Construction & Civil Engineering (excluding Russia and Neighbouring Countries)

DI Siegfried Wanker Technical Responsibilities for Special Divisions & Concessions (since 1 January 2011)

Mag. Hannes Truntschnig Commercial Responsibilities for Transportation Infrastructures, Special Divisions & Concessions

List of Participations 31.12.2010

compan y	residenc e	Consoli dation 1)	Direct stake %
"A-WAY Infrastrukturprojektentwicklungs- und -betriebs GmbH"	Spittal an der Drau	VK	100.00
"Baltic Business Centre" Sp.z o.o.	Gdynia	NK	38.00
"Crnagoraput" AD, Podgorica	Podgorica	VK	50.99
"DOMIZIL" Bauträger GmbH	Vienna	VK	100.00
"Filmforum am Bahnhof" Errichtungs- und
Betriebsgesellschaft m.b.H.	Vienna	VK	100.00
"Geschäfts- und Bürohaus Sterneckstraße Errichtungs- und
Betriebs GmbH"	Vienna	NK	100.00
"GfB" Gesellschaft für Bauwerksabdichtungen mbH	Kobern-Gondorf	VK	100.00
"Granite Mining Industries" Sp.z o.o.	Breslau	NK	100.00
"HEILIT+WOERNER" Budowlana Sp.z o.o.	Breslau	VK	100.00
"IT" Ingenieur- und Tiefbau GmbH	Kobern	NK	100.00
"Kabelwerk" Bauträger GmbH	Vienna	NK	25.00
"LSH"-Fischer Baugesellschaft m.b.H.	Linz	NK	100.00
"MATRA OAZIS" Oktatasi, Üdültetesi es Vendeglato KKT.	Gyöngyöstarjan	NK	53.37
"Mineral 2000" EOOD	Sofia	NK	100.00
"Moebius - Bau Polska" Sp.z o.o.	Szczecin	NK	100.00
"Northern Capital Express" Limited Liability Company	Moskau	NK	25.00
"PUTEVI" A.D. CACAK	Cacak	VK	85.02
"SBS Strabag Bau Holding Service GmbH"	Spittal an der Drau	VK	100.00
"Schöner Wohnen in Klosterneuburg" Bauträger GmbH in Liqu.	Vienna	NK	100.00
"Strabag Azerbaijan" L.L.C.	Baku	VK	100.00
"Strabag" d.o.o. Podgorica	Podgorica	NK	100.00
"VULKANKÖ" KFT.	Keszthely	NK	50.39
"Wiebau" Hoch-,Tief- und Strassenbau- Gesellschaft m.b.H.	Gerasdorf bei Wien	NK	100.00
"Wiener Heim" Wohnbaugesellschaft m.b.H.	Vienna	VK	100.00
"Wohngarten Sensengasse" Bauträger GmbH	Vienna	VK	55.00
"Zentrum Puntigam" Errichtungs- und Betriebsgesellschaft m.b .H.	Vienna	NK	50.00
"Zipp Ukraine"	Cholmok	NK	100.00
2.Züblin Vorrats GmbH	Stuttgart	NK	100.00
6. Züblin Vorrats GmbH	Hamburg	NK	100.00
A.F.C. Spolka Projektrowa Sp.z o.o. i.L.	Breslau	NK	50.00
A.R.G.E. Tiefbau GmbH & Co. KG	Elchingen	NK	100.00
A.S.T. Bauschuttverwertung GmbH & Co KG	Klagenfurt	NK	66.67
A.S.T. Bauschuttverwertung GmbH	Klagenfurt	NK	66.67
A2 Bau-Development GmbH	Spittal an der Drau	NK	50.00
A2 Strada Sp.z o.o.	Warschau	VK	100.00
A-8 Ulm-Augsburg Betriebsgesellschaft mbH & Co. KG	Cologne	NK	50.00
AB Frischbeton Gesellschaft m.b.H.	Vienna	NK	100.00
ABO Asphalt-Bau Oeynhausen GmbH	Oeynhausen	NK	22.50
ABR Abfall Behandlung und Recycling GmbH	Schwadorf	VK	100.00
Adanti S.p.A.	Bologna	VK	100.00
ADI Asphaltmischwerke Donau-Iller GmbH & Co. KG	Inzigkofen	NK	63.21
ADI Asphaltmischwerke Donau-Iller VerwaltungsgesmbH	Inzigkofen	NK	63.20
AET-Asfalt-emulsni technologie s.r.o.	Litomerice	NK	100.00
AFRITOL (PROPRIETARY) LIMITED	Pretoria	NK	100.00

compan y	residenc e	Consoli dation 1)	Direct stake %
AGS Asphaltgesellschaft Stuttgart GmbH &
Co.Kommanditgesellschaft	Stuttgart	NK	40.00
AGS Asphaltgesellschaft Stuttgart Verwaltungs-GmbH	Stuttgart	NK	40.00
AKA Zrt.	Budapest	VK	100.00
AKA-FinCo Zrt.	Budapest	NK	100.00
AKA-HoldCo Zrt.	Budapest	NK	100.00
Akilore Grundstücksverwaltungsges. mbH & Co. Vermietungs KG	Wiesbaden	NK	94.00
AL SRAIYA - STRABAG Road & Infrastructure WLL	Doha	NK	49.00
A-Lanes A15 Holding B.V.	Nieuwegein	NK	24.00
Al-Hani General Construction Co.	Tripoli	VK	60.00
Alpines Hartschotterwerk Georg Kässbohrer & Sohn GmbH & Co. KG	Senden	VK	100.00
AMA Asphalt-Mischwerke GmbH	Königsbrunn	NK	45.00
AMB Asphalt-Mischanlagen Betriebsgesellschaft m.b.H. & Co.KG	Zistersdorf	NK	40.00
	Zistersdorf
AMB Asphalt-Mischanlagen Betriebsgesellschaft m.b.H.	Maustrenk	NK	40.00
AMB Asphaltmischwerke Bodensee GmbH & Co KG	Singen (Hohentwiel)	NK	24.80
AMG Asphalt-Mischwerk Garbsen Verwaltungsgesellschaft mbH	Berlin	NK	25.00
AMG Asphaltmischwerk Gunskirchen Gesellschaft m.b.H.	Linz	NK	33.33
AMG-Asphaltmischwerk Gunskirchen Gesellschaft m.b.H. & Co.KG	Linz	NK	33.33
AMH Asphaltmischwerk Hauneck GmbH & Co. KG	Hauneck	EK	50.00
AMH Asphaltmischwerk Hauneck Verwaltungs GmbH	Hauneck	NK	50.00
AMH Asphaltmischwerk Hellweg GmbH	Erwitte	EK	30.50
AML - Asphaltmischwerk Limberg Gesellschaft m.b.H.	Limberg	NK	50.00
AMS-Asphaltmischwerk Süd Gesellschaft m.b.H.	Linz	NK	35.00
AMSS Asphaltmischwerke Sächsische Schweiz GmbH & Co. KG	Dresden	NK	24.00
AMSS Asphaltmischwerke Sächsische Schweiz Verwaltungs GmbH	Dresden	NK	24.00
AMWE-Asphaltmischwerke GmbH & Co. KG in Schwerin	Consrade	NK	49.00
AMWE-Asphaltmischwerke GmbH	Schwerin	NK	49.00
Anton Beirer Hartsteinwerke GmbH & Co KG	Pinswang	NK	50.00
ANTREPRIZA DE REPARATII SI LUCRARI A R L CLUJ S.A.	Cluj-Napoca	VK	95.56
	Bad Saarow
Appartementhaus Scharmützel Projekt-Beteiligungs GmbH	Pieskow	NK	100.00
Arena Development	Hasselt	NK	50.00
Asamer & Hufnagl Baustoff Holding Wien GmbH & Co.KEG	Vienna	NK	30.00
ASAMER Baustoff Holding Wien GmbH	Vienna	NK	30.00
ASB Bau GmbH & Co KG	Inzigkofen	NK	50.00
ASB Transportbeton GmbH & CO.KG	Osterweddingen	NK	50.00
ASF Frästechnik GmbH & Co KG	Kematen	NK	40.00
ASF Frästechnik GmbH	Kematen	NK	40.00
Asfalt Slaski Wprinz Sp.z o.o.	Rybnik	NK	51.00
ASG INVEST N.V.	Genk	NK	49.98
ASIA Center Kft.	Budapest	VK	100.00
Asphalt & Beton GmbH	Spittal an der Drau	VK	100.00
Asphalt Straßenbau Verwaltungs-GmbH	Inzigkofen	NK	50.00
Asphaltmischwerk Bendorf GmbH & Co. KG	Bendorf	NK	49.00
Asphaltmischwerk Bendorf Verwaltung GmbH	Bendorf	NK	49.00
Asphaltmischwerk Betriebsgesellschaft m.b.H. & Co KG	Rauchenwarth	NK	20.00
Asphaltmischwerk Betriebsgesellschaft m.b.H.	Rauchenwarth Singen	NK	20.00
Asphaltmischwerk Bodensee Verwaltungs GmbH	(Hohentwiel)	NK	33.33
Asphaltmischwerk Düsseldorf GmbH & Co.KG	Neuss	EK	24.50
Asphaltmischwerk Düsseldorf Verwaltungs GmbH	Düsseldorf	NK	24.50

compan y	residenc e	Consoli dation 1)	Direct stake %
Asphaltmischwerk Garbsen GmbH & Co. KG	Berlin	NK	25.00
Asphaltmischwerk Greinsfurth GmbH & Co OG	Amstetten	NK	25.00
Asphaltmischwerk Greinsfurth GmbH	Amstetten	NK	25.00
Asphaltmischwerk Rieder Vomperbach GmbH& Co KG	Innsbruck	NK	60.00
Asphaltmischwerk Rieder Vomperbach GmbH	Innsbruck	NK	60.00
Asphaltmischwerk Steyregg GmbH & Co KG	Linz	NK	60.00
Asphaltmischwerk Steyregg GmbH	Steyregg	NK	60.00
Asphaltmischwerk Zeltweg Gesellschaft m.b.H.	Steyr	NK	100.00
Asphalt-Mischwerke-Hohenzollern GmbH & Co. KG	Inzighofen	NK	36.50
Asphalt-Mischwerke-Hohenzollern VerwaltungsgesmbH	Inzigkofen	NK	36.50
ASTRA-BAU Gesellschaft m.b.H. Nfg. OG	Bergheim	NK	50.00
AStrada Development SRL	Bukarest	NK	70.00
AUSTRIA ASPHALT GmbH & Co OHG	Spittal an der Drau	VK	100.00
AUSTRIA ASPHALT GmbH	Spittal an der Drau	NK	100.00
AUT Grundstücksverwaltungsgesellschaft mbH	Stuttgart	NK	40.00
Autocesta Zagreb-Macelj d.o.o.	Krapina	EK	51.00
Autostrada Centralna S.A.	Warschau	NK	35.00
A-WAY ITE Zrt.	Újhartyán	NK	50.00
AWH Asphaltwerk Haßberge GmbH	Haßfurt	NK	24.90
AWK Asphaltmischwerk Könnern GmbH	Könnern	NK	26.25
AWM Asphaltwerk Mötschendorf Gesellschaft m.b.H.	Graz	NK	50.00
AWM Asphaltwerk Mötschendorf GmbH & Co.KG	Graz	NK	50.00
AWR Asphalt-Werke Rhön GmbH	Röthlein	NK	24.90
B + R Baustoff-Handel und -Recycling Köln GmbH	Cologne	NK	100.00
BA GebäudevermietungsgmbH	Vienna	NK	50.00
BASALT-KÖZÉPKÖ Köbányák Kft	Uzsa	NK	25.14
Bau Holding Beteiligungs AG	Spittal an der Drau	VK	100.00
Bauer Deponieerschließungs- und
Verwertungsgesellschaft m.b.H.	Fischamend	NK	100.00
Baugesellschaft "Negrelli" Ges.m.b.H.	Vienna	NK	100.00
Baugesellschaft Nowotnik GmbH	Nörvenich	NK	100.00
Baukontor Gaaden Gesellschaft m.b.H.	Gaaden	VK	100.00
Baumann & Burmeister GmbH	Halle/Saale	VK	100.00
Bauträgergesellschaft Olande mbH	Hamburg	VK	51.00
Bauunternehmung Ohneis Gesellschaft mit beschränkter Haftung	Straubing	VK	100.00
Bayerische Asphaltmischwerke Gesellschaft
mit beschränkter Haftung	Hofolding	NK	48.29
Bayerische Asphaltmischwerke GmbH & Co.KG für Straßenbaustoffe	Hofolding	EK	48.33
BAYSTAG GmbH	Wilpoldsried	NK	100.00
Baytürk Grup Insaat Ithalat, Ihracat ve Ticaret Limited Sirketi	Ankara	NK	100.00
BBO Bauschuttaufbereitung Verwaltungsgesellschaft mbH	Steißlingen	NK	33.33
BBO Bodensee/Helgau Bauschuttaufbereitung GmbH & Co KG	Steißlingen	NK	20.00
	Immenstaad
BBO Bodenseekreis Bauschuttaufbereitung GmbH & Co KG	am Bodensee	NK	25.00
BBS Baustoffbetriebe Sachsen GmbH	Hartmannsdorf	VK	100.00
becker bau GmbH u. Co. KG	Bornhöved	VK	100.00
becker Verwaltungsgesellschaft mbH	Bornhöved	NK	100.00
Beijing Züblin Equipment Production Co., Ltd.	Beijing	NK	100.00
Betobeja Empreendimentos Imobiliarios, Lda	Beja	NK	74.00
Beton AG Bürglen	Bürglen TG	NK	65.60
Beton Pisek spol. s.r.o.	Pisek	NK	50.00
Betonuepitö Rt. es Tarsai M.3. Autoalyaepitö PJT	Budapest	NK	77.82
Betun Cadi SA	Trun	NK	35.00
BHG Bitumen Adria d.o.o.	Zagreb	NK	100.00

			Direct
		Consoli	stake
compan y	residenc e	dation 1)	%
BHG Bitumen d.o.o. Beograd	Belgrad	NK	100.00
BHG Bitumen Kft.	Budapest	VK	100.00
BHG Bitumenhandelsgesellschaft mbH	Hamburg	VK	100.00
BHG COMERCIALIZARE BITUM S.R.L.	Bukarest	NK	100.00
BHG CZ s.r.o.	Ceské Budejovice	VK	100.00
BHG SK s.r.o.	Bratislava	NK	100.00
BHG Sp.z o.o.	Warschau	VK	100.00
BHV GmbH Brennstoffe - Handel - Veredelung	Lünen	NK	100.00
Bin Aweida - von der Wettern LLC	Dubai	NK	30.00
Biomasseverwertung Großwilfersdorf GmbH	Großwilfersdorf	NK	90.00
Bitumen Handelsgesellschaft m.b.H. & Co KG	Loosdorf	VK	100.00
Bitumen Handelsgesellschaft m.b.H.	Vienna	NK	100.00
Bitumenka-Asfalt d.o.o. i.L.	Sarajevo	NK	51.00
BITUNOVA Baustofftechnik Gesellschaft m.b.H.	Spittal an der Drau	VK	100.00
BITUNOVA GmbH & Co. KG	Hamburg	VK	100.00
Bitunova Kft.	Budapest	VK	100.00
Bitunova Romania SRL	Bukarest	VK	100.00
Bitunova Sp.z o.o.	Warschau	VK	100.00
BITUNOVA UKRAINA TOW	Brovary	NK	60.00
BITUNOVA Verwaltungs-GmbH	Hamburg	NK	100.00
BKB AG	Weinfelden	NK	100.00
Blees-Kölling-Bau GmbH	Cologne	VK	100.00
BLT Baulogistik und Transport GmbH	Vienna	VK	100.00
BLT Sp.z o.o.	Warschau	NK	100.00
BMTI - Tehnica Utilajelor Pentru Constructii SRL	Bukarest	NK	100.00
BMTI BENELUX	Antwerpen	NK	100.00
BMTI CR s.r.o.	Brünn	VK	100.00
BMTI d.o.o. Beograd	Novi Beograd	NK	100.00
BMTI d.o.o.	Zagreb	NK	100.00
BMTI GmbH	Erstfeld	VK	100.00
BMTI Kft.	Budapest	VK	100.00
BMTI Polska Sp.z o.o.	Pruszkow	VK	100.00
BMTI SK, s.r.o.	Bratislava	NK	100.00
BMTI-Baumaschinentechnik International GmbH	Cologne	VK	100.00
BMTI-Baumaschinentechnik International GmbH	Trumau	VK	100.00
Bodensanierung Bischofswerda GmbH	Stuttgart	NK	100.00
Bodensee - Moränekies Gesellschaft mbH & Co KG	Tettnang	NK	33.33
BodenseeRast GmbH	Vienna	NK	100.00
BOHEMIA ASFALT, s.r.o.	Sobeslav	VK	100.00
Bohemia Bitunova, spol s.r.o.	Jihlava	VK	100.00
BOT BÖRNER Oberflächentechnik GmbH & Co. KG	Ritschenhausen	NK	100.00
BOT BÖRNER Oberflächentechnik Verwaltungs
und Beteiligungs GmbH	Ritschenhausen	NK	100.00
Breitenthaler Freizeit Beteiligungsgesellschaft mbH	Breitenthal	NK	50.00
Breitenthaler Freizeit GmbH & Co. KG	Breitenthal	NK	50.00
BrennerRast GmbH	Vienna	VK	100.00
BRG Baustoffhandel- und Recycling GmbH	Erfurt	NK	100.00
Brnenska Obalovna, s.r.o.	Brünn	NK	50.00
BRVZ Bau- Rechen- u. Verwaltungszentrum	Spittal
Gesellschaft m.b.H.	an der Drau	VK	100.00
BRVZ Bau- Rechen- und Verwaltungszentrum GmbH	Cologne	VK	100.00
BRVZ Bau-, Rechen- und Verwaltungszentrum AG	Erstfeld	VK	100.00
BRVZ BENELUX	Antwerpen	NK	100.00
BRVZ center za racunovodstvo in upravljanje d.o.o.	Ljubljana	VK	100.00
BRVZ d.o.o. Beograd	Novi Beograd	NK	100.00
BRVZ d.o.o.	Zagreb	VK	100.00

compan y	residenc e	Consoli dation 1)	Direct stake %
BRVZ EOOD	Sofia	NK	100.00
BRVZ Kft.	Budapest	VK	100.00
BRVZ s.r.o.	Bratislava	VK	100.00
BRVZ s.r.o.	Prag	VK	100.00
BRVZ SERVICII & ADMINISTRARE SRL	Bukarest	VK	100.00
BRVZ Sp.z o.o.	Warschau	VK	100.00
BRVZ SRL	Bologna	NK	100.00
BRVZ Sweden AB	Stockholm	NK	100.00
BRVZ-Contabilidade, Organizacao,Representacao
e Administracao de Empresas,S.U.,Lda	Lissabon	NK	100.00
BRW Baustoff-Recycling GmbH & Co KG	Wesseling	NK	25.00
BSB Betonexpress Verwaltungsges.mbH	Berlin	NK	100.00
BSS Tunnel- & Montanbau GmbH	Bern	NK	100.00
Bug-Alu Technic GmbH	Cologne	NK	100.00
Bug-AluTechnic GmbH	Vienna	VK	100.00
BULGARIA ASFALT EOOD	Sofia	NK	100.00
Büro-Center Ruppmannstraße GmbH	Stuttgart	NK	50.00
BUSINESS BOULEVARD Errichtungs- und Betriebs GmbH	Vienna	NK	100.00
BVHS Betrieb und Verwaltung von Hotel- und Sportanlagen
GmbH	Berlin	NK	100.00
C.S. BITUNOVA spol. s.r.o.	Zvolen	VK	100.00
C.S.K.K. 2009. Kft.	Budapest	NK	30.00
Carb SA	Brasov	VK	99.47
Center Communication Systems GmbH	Mägenwil	NK	100.00
Center Communication Systems GmbH	Vienna	VK	100.00
Center Communication Systems SPRL	Diegem	NK	100.00
Center Systems Deutschland GmbH	Ditzingen	NK	100.00
CESTAR d.o.o.	Slavonski Brod	VK	74.90
Chustskij Karier	Zakarpatska	VK	95.96
CLS Construction Legal Services GmbH	Cologne	VK	100.00
CLS Construction Legal Services GmbH	Vienna	NK	100.00
CLS CONSTRUCTION SERVICES s. r. o.	Bratislava	NK	100.00
CLS CONSTRUCTION SERVICES s.r.o.	Prag	NK	100.00
CLS Kft.	Budapest	NK	100.00
CLS Legal Sp.z o.o.	Nowy Tomysl	NK	100.00
Clubdorf Sachrang Betriebs GmbH	Cologne	NK	100.00
Colonius Carrée Entwicklungsgesellschaft mbH	Cologne	NK	100.00
Constrovia Construcao Civil e Obras Publicas Lda.	Lissabon	NK	95.00
Cosima Grundstücksverwaltungsgesellschaft mbH & Co.
Objekt Beta KG	Pullach i. Isartal	NK	94.00
Cottbuser Frischbeton GmbH	Cottbus	NK	100.00
Crna Glava Seona d.o.o.	Nasice	NK	51.00
CROATIA ASFALT d.o.o.	Zagreb	NK	100.00
CSE Centrum-Stadtentwicklung GmbH	Cologne	NK	50.00
Dalnicni stavby Praha, a.s.	Prag	VK	100.00
DAM Deutzer Asphaltmischwerke GmbH & Co. KG	Cologne	NK	33.90
DAM Deutzer Asphaltmischwerke Verwaltungs-GmbH	Cologne	NK	33.90
DARWO TRADING NO 14 (PTY) LIMITED	Pretoria	NK	50.00
DB Development Holdings Limited	Larnaca	NK	49.00
DBR Döbelner Baustoff und Recycling GmbH	Taucha	NK	50.00
DELTA-PRID Sp.z o.o.	Ciechanow	NK	56.00
Demirtürk Uluslararasi Insaat, Ithalat, Ihracat ve Ticaret
Sirketi	Ankara	NK	100.00
Deutsche Asphalt GmbH	Cologne	VK	100.00
Diabaswerk Nesselgrund GmbH & Co KG	Floh-Seligenthal	NK	20.00
Diabaswerk Nesselgrund Verwaltungs GmbH	Floh-Seligenthal	NK	20.00

compan y	residenc e	Consoli dation 1)	Direct stake %
	Saalfelden am
Diabaswerk Saalfelden Gesellschaft m.b.H.	Stein.Mee	VK	100.00
Dialnicne stavby Slovensko, s.r.o.	Bratislava	NK	100.00
Dimmoplan Verwaltungs GmbH	Stuttgart	NK	100.00
DIRECTROUTE (FERMOY) CONSTRUCTION LIMITED	Dublin	NK	25.00
DIRECTROUTE (LIMERICK) CONSTRUCTION LIMITED	Fermoy	EK	40.00
DIRECTROUTE (LIMERICK) HOLDINGS LIMITED	Fermoy	EK	20.00
Donnersberger Höfe Kita GmbH	Düsseldorf	NK	65.00
Donnersberger Höfe Ost GmbH	Düsseldorf	VK	65.00
Donnersberger Höfe West GmbH	Düsseldorf	VK	65.00
Dordrecht Diensten B.V.	Dordrecht	NK	100.00
"Dreßler Bauträger GmbH & Co. ""Erlenbach""-Objekt KG"	Aschaffenburg	NK	50.00
DRP, d.o.o.	Ljubljana	NK	100.00
DRUMCO SA	Timisoara	VK	70.00
DYNAMIC ASPHALT Sp.z o.o.	Torun	NK	100.00
DYWIDAG & Partner LLC	Oman	NK	65.00
Dywidag (Malaysia) Sdn. Bhd.	Kuala Lumpur	NK	100.00
DYWIDAG Bau GmbH	München	VK	100.00
Dywidag Construction Corporation	Vancouver	NK	100.00
DYWIDAG Guinea Ecuatorial Sociedad Limitada	Mongomeyen	NK	65.00
Dywidag India Private Limited	Maharashtra	NK	100.00
Dywidag Insaat Limited Sirketi	Ankara	NK	100.00
DYWIDAG International GmbH	München	VK	100.00
Dywidag LNG Korea Chusikhoesa	Seoul	NK	100.00
DYWIDAG Romania S.R.L	Bukarest	NK	100.00
Dywidag Saudi Arabia Co. Ltd.	Jubail	VK	100.00
DYWIDAG Schlüsselfertig und Ingenieurbau GmbH	München	NK	100.00
DYWIDAG Verwaltungsgesellschaft mbH	München	NK	50.00
DYWIDAG-Holding GmbH	Cologne	VK	100.00
DYWIDAG-Service-GmbH Gebäude
und Anlagenmanagement	Frankfurt am Main	NK	100.00
E S B Kirchhoff GmbH	Langenargen	VK	100.00
E.S.T.M. KFT	Budapest	NK	100.00
Eberhard Pöhner Unternehmen für Hoch
und Tiefbau GmbH	Bayreuth	VK	100.00
Eberhardt Bau-Gesellschaft mbH	Berlin	VK	100.00
Eckstein Holding GmbH	Spittal an der Drau	VK	100.00
	Mörfelden
ECS European Construction Services GmbH	Walldorf	VK	100.00
Ed. Züblin AG	Stuttgart	VK	57.26
Edificio Bauvorbereitungs- und Bauträgergesellschaft mb.H.	Vienna	NK	100.00
Eduard Hachmann Gesellschaft mit beschränkter Haftung	Lunden	VK	100.00
EFKON AG	Raaba	VK	75.59
EFKON ASIA SDN. BHD.	Kuala Lumpur	NK	100.00
EFKON AUSTRALIA PTY LTD	Victoria Point	NK	100.00
EFKON Bulgaria OOD	Sofia	NK	80.00
EFKON COLOMBIA LTDA	Bogota	NK	100.00
EFKON Germany GmbH	Berlin	VK	100.00
	Maharashtra
EFKON INDIA LIMITED	Mumbai	VK	100.00
EFKON Road Pricing Limited	London	NK	100.00
EFKON ROMANIA S.R.L.	Bukarest	NK	76.00
EFKON SOUTHERN AFRICA (PROPRIETARY) LIMITED	Pretoria	NK	30.00
EFKON USA, INC.	Dallas	NK	100.00
Egolf AG Strassen- und Tiefbau	Weinfelden	VK	100.00
Eichholz Eivel GmbH	Berlin	VK	100.00

compan y	residenc e	Consoli dation 1)	Direct stake %
Eisen Blasy Reutte GmbH	Reutte	NK	50.00
Emprese Constructora, Züblin Peru S.A.C.	Lima	NK	99.97
Entwicklung Quartier 21 Beteiligungsgesellschaft mbH	Hamburg	NK	50.00
Entwicklung Quartier 21 GmbH & Co. KG	Hamburg	NK	48.08
Entwicklung Quartier 21 Managment GmbH	Hamburg	NK	50.00
Entwicklung Quartier 21 Nr. 1 GmbH & Co. KG	Hamburg	NK	48.08
Entwicklung Quartier 21 Nr. 2 GmbH & Co. KG	Hamburg	NK	48.08
Entwicklung Quartier 21 Nr. 3 GmbH & Co. KG	Hamburg	NK	48.08
Eraproject Immobilien-, Projektentwicklung und Beteili
gungsverwaltung GmbH	Berlin	NK	100.00
ERA-Stav s.r.o.	Prag	NK	100.00
Erlaaer Straße Liegenschaftsverwertungs-GmbH	Vienna	NK	100.00
ERMATEC Maschinen Technische Anlagen Gesellschaft m.b.H.	Vienna	VK	100.00
	Bratislava
Errichtungsgesellschaft Strabag Slovensko s.r.o.	Ruzinov	VK	100.00
ETG Erzgebirge Transportbeton GmbH	Freiberg	VK	60.00
	Mörfelden
EURO SERVICES Catering & Cleaning GmbH	Walldorf	NK	100.00
EUROASFALT d.o.o.	Zagreb	NK	90.00
Exploitatie Maatschappij A-Lanes A15 B.V.	Nieuwegein	NK	33.33
	Leinfelden
F. Kirchhoff AG	Echterdingen	VK	100.00
F. Kirchhoff Silnice s.r.o.	Prag	NK	100.00
	Leinfelden
F. Kirchhoff Straßenbau GmbH & Co. KG	Echterdingen	VK	100.00
F. KIRCHHOFF SYSTEMBAU GmbH	Münsingen	VK	100.00
F. Lang u. K. Menhofer Baugesellschaft m.b.H. & Co. KG	Eggendorf	VK	100.00
Fachmarktzentrum Arland Errichtungs
und Vermietungsgesellschaft mbH	Vienna	VK	100.00
Fachmarktzentrum Kielce Projekt GmbH	Berlin	NK	100.00
Facility Management Holding RF GmbH	Vienna	NK	51.00
Fahrleitungsbau GmbH	Essen	VK	100.00
FDZ Grundstücksverwaltung GmbH & Co.
Objekt Stuttgart-Möhringen KG	Mainz	NK	94.00
Flogopit d.o.o.	Novi Beograd	NK	100.00
Forum Mittelrhein Beteiligungsgesellschaft mbH	Hamburg	NK	51.00
Forum Mittelrhein Koblenz Generalübernehmergesellschaft
mbH & Co.KG	Oststeinbek	VK	51.00
Forum Mittelrhein Koblenz Kultur GmbH & Co. KG	Hamburg	VK	51.00
Frey & Götschi AG	Affoltern am Albis	NK	100.00
FRISCHBETON s.r.o.	Prag	VK	100.00
Frischbeton Wachau GmbH & CO.KG	Wachau	NK	45.00
Frissbeton Kft.	Budapest	VK	100.00
FUSSENEGGER Hochbau und Holzindustrie GmbH	Dornbirn	NK	100.00
Gama Strabag Construction Limited	Dublin	NK	40.00
Gartensiedlung Lackenjöchel Liegenschaftsverwertungs
GmbH	Vienna	NK	100.00
GBS Gesellschaft für Bau und Sanierung mbH	Kötzschlitz	NK	100.00
Gebr. von der Wettern Gesellschaft mit beschränkter Haftung	Cologne	VK	100.00
Georg Börner Dach und Straße GmbH	Bad Hersfeld	VK	100.00
	Leinfelden
GEOTEST GmbH	Echterdingen	NK	100.00
Gericke Verwaltungs GmbH	Emmerthal	NK	100.00
GFR remex Baustoffaufbereitung GmbH & Co. KG, Krefeld	Krefeld	NK	100.00
GFR remex Baustoffaufbereitung Verwaltungs-GmbH Krefeld	Krefeld	NK	100.00
GN-Anläggningar AB	Stockholm	NK	100.00

			Direct
compan y	residenc e	Consoli dation 1)	stake %
GN-Asfalt AB	Stockholm	NK	100.00
Goldeck Bergbahnen GmbH	Spittal an der Drau	VK	100.00
GRADBENO PODJETJE IN KAMNOLOM GRASTO d.o.o.	Ljubljana	VK	99.85
Grand Hotel Interests Limited	Guernsey	NK	100.00
Grandemar SA	Cluj-Napoca	NK	41.27
Griproad Spezialbeläge und Baugesellschaft mbH	Cologne	VK	100.00
GTE-Gebäude-Technik-Energie-Betriebs
und Verwaltungsgesellschaft m.b.H. & Co. KG.	Vienna	NK	62.00
GTE-Gebäude-Technik-Energie-Betriebs
und Verwaltungsgesellschaft m.b.H.	Vienna	NK	61.00
GUS Gußasphaltwerk GmbH & Co KG	Stuttgart	NK	50.00
GUS Gußasphaltwerk Verwaltungs GmbH	Stuttgart	NK	50.00
GVD Versicherungsvermittlungen - Dienstleistungen GmbH	Cologne	NK	100.00
h s energieanlagen gmbh & co kg	Vienna	VK	100.00
H S Hartsteinwerke GmbH	Pinswang	NK	50.00
HAW-Hürtherberg Asphaltwerke Gesellschaft mit
beschränkter Haftung & Co. Kommanditgesellschaft	Linz	NK	35.00
Heidelberger Beton Donau-Iller GmbH & Co. KG	Elchingen	NK	30.00
Heidelberger Beton Donau-Iller Verwaltungs-GmbH	Unterelchingen	NK	30.20
HEILIT + WOERNER BAU GmbH	Vienna	NK	100.00
HEILIT Umwelttechnik GmbH	Düsseldorf	VK	100.00
Heilit+Woerner Bau GmbH	München	VK	100.00
Helmus Beteiligungsgesellschaft mit beschränkter Haftung	Vechta	NK	100.00
Helmus Straßen-Bau-Gesellschaft mbH & Co. KG	Vechta	VK	100.00
Heptan Grundstücksverwaltungsgesellschaft mbH & Co.
Vermietungs KG	Mainz	NK	94.00
Hermann Kirchner Bauunternehmung GmbH	Bad Hersfeld	VK	100.00
Hermann Kirchner Hoch- und Ingenieurbau GmbH	Bad Hersfeld	VK	100.00
Hermann Kirchner Polska Sp.z o.o.	Lodz	VK	100.00
Hermann Kirchner Projektgesellschaft mbH	Bad Hersfeld	VK	100.00
Hermann Wellmann Tiefbau GmbH & Co. KG	Hamburg	NK	50.00
Hillerstraße - Jungstraße GmbH	Vienna	NK	75.00
HOTEL VIA Kft.	Keszthely	NK	43.00
Hotelprojekt Messe-West Europa-Allee Frankfurt GmbH &
Co. KG	Cologne	NK	100.00
Hrusecka Obalovna, s.r.o.	Hrusky	NK	80.00
H-TPA Kft.	Budapest	VK	100.00
Hürtherberg Asphaltwerke Gesellschaft
mit beschränkter Haftung	Linz	NK	35.00
IBV - Immobilien Besitz- und
Verwaltungsgesellschaft mbH Werder	Cologne	NK	99.00
iFleet Solutions and Services Private Ltd.	Mumbai Maharashtra	NK	100.00
IGM Vukovina d.o.o.	Vukovina b.b.	NK	80.00
Ilbau GmbH Deutschland	Berlin	VK	100.00
ILBAU GmbH	Vienna	VK	100.00
	Dahlwitz-Hopp
Ilbau Liegenschaftsverwaltung GmbH	egarten	VK	100.00
Ilbau Liegenschaftsverwaltung GmbH	Spittal an der Drau	VK	100.00
ILBAU MANAGEMENT GMBH	Vienna	VK	100.00
Ilbau OOO	Moskau	NK	50.00
Immorent Oktatási Kft.	Budapest	NK	20.00
Industrielles Bauen Betreuungsgesellschaft mbH	Stuttgart	NK	100.00
Industrija Gradevnog materijala ostra d.o.o.	Zagreb	NK	51.00
InfoSys Informationssysteme GmbH	Spittal an der Drau	VK	94.90
Ing. Siegl Installationsgesellschaft m.b.H.	Vienna	NK	100.00

compan y	residenc e	Consoli dation 1)	Direct stake %
Innsbrucker Nordkettenbahnen Betriebs GmbH	Innsbruck	VK	51.00
intellic Germany GmbH	Hamburg	NK	100.00
Intellic GmbH	Raaba	NK	100.00
Intelligent Traffic Systems Asia	Selangor	NK	100.00
	Mumbai
I-PAY CLEARING SERVICES Pvt. Ltd.	Maharashtra	VK	74.00
ITC Engineering GmbH & Co. KG	Stuttgart	NK	100.00
ITC Engineering Verwaltungs GmbH	Stuttgart	NK	100.00
JCO s.r.o.	Budweis	NK	50.00
JHP spol. s.r.o.	Praha	VK	100.00
Josef Möbius Bau-Aktiengesellschaft	Hamburg	VK	100.00
Josef Möbius Scandinavia AB	Täby	NK	100.00
JOSEF MOEBIUS CONSTRUCOES E
ENGENHARIA CIVIL LTDA.	Sao Paulo	NK	100.00
Josef Riepl Unternehmen für Ingenieur
und Hochbau GmbH	Regensburg	VK	100.00
JUKA Justizzentrum Kurfürstenanlage GmbH	Cologne	VK	100.00
	Limbach
Jumbo Betonpumpen Service GmbH & Co.KG	Oberfrohna	NK	50.00
	Limbach
Jumbo Betonpumpen Verwaltungs GmbH	Oberfrohna	NK	50.00
KAB Kärntner Abfallbewirtschaftung GmbH	Klagenfurt	NK	36.25
KAB Kirchhoff-Alb Bau GmbH	Ulm	NK	100.00
KAB Straßensanierung GmbH & Co KG	Spittal an der Drau	VK	50.60
KAB Straßensanierung GmbH	Spittal an der Drau	NK	50.60
Kaiserebersdorfer Straße LiegenschaftsverwertungsGmbH	Vienna	NK	100.00
Kalksteinwerk Eigenrieden GmbH	Rodeberg	VK	100.00
Kamen-Ingrad gradnja i rudarstvo d.o.o. u likvidaciji	Zagreb	NK	51.00
Kamen-Ingrad Niskogradnja d.o.o.	Pozega	NK	51.00
Kamen-Ingrad Proizvodnja d.o.o.	Velika	NK	100.00
KAMENOLOMY CR s.r.o.	Ostrava - Svinov	VK	100.00
Kanzel Steinbruch Dennig Gesellschaft
mit beschränkter Haftung	Gratkorn	VK	75.00
Karlovarske silnice, a.s.	Budejovice	NK	100.00
KASERNEN Projektentwicklungs- und Beteiligungs GmbH	Vienna	NK	24.90
KBG Krankenhaus Beteiligungs GmbH	Vienna	NK	25.00
Kelet Aszfalt Kft.	Eger	NK	100.00
Kies- und Betonwerk AG Sedrun	Sedrun	NK	35.00
Kiesabbau Gämmerler-Hütwohl GmbH & Co.
Aug Kommanditgesellschaft	Königsdorf	NK	50.00
Kiesabbau Gämmerler-Hütwohl GmbH & Co.
Grube Grafing KG	Königsdorf	NK	50.00
Kiesabbau Gämmerler-Hütwohl GmbH&Co.
Grube Leitzinger Au KG	Königsdorf	NK	50.00
Kiesabbau Gämmerler-Hütwohl Verwaltungs- GmbH	Königsdorf	NK	50.00
	Immenstaad
Kiesgesellschaft Karsee Beteiligungs-GmbH	am Bodensee	NK	50.00
Kiesgesellschaft Karsee GmbH & Co. KG	Immenstaad am Bodensee	NK	50.00
Kiesverwertungsgesellschaft Senden
mit beschränkter Haftung	Senden	NK	100.00
Kieswerk Birkenbühl Beteiligungs- und
Verwaltungsgesellschaft mbH	Salem	NK	100.00
Kieswerk Diersheim GmbH	Rheinau/Baden	NK	60.00
Kieswerk Rheinbach Gesellschaft mit beschränkter Haftung	Cologne	NK	50.00
Kieswerk Rheinbach GmbH & Co. Kommanditgesellschaft	Rheinbach	EK	50.00

compan y	residenc e	Consoli dation 1)	Direct stake %
Kieswerke Gericke GmbH & Co. Kommanditgesellschaft	Emmerthal	NK	100.00
Kieswerke Schray GmbH & Co KG	Steißlingen	NK	50.00
Kieswerke Schray Verwaltungs GmbH	Steißlingen	NK	50.00
Kirchhoff + Schleith Beteiligungs-GmbH	Steißlingen	NK	50.00
Kirchhoff + Schleith Straßenbau GmbH & Co. KG	Steißlingen	NK	50.00
	Leinfelden
Kirchhoff Asphaltmischwerke GmbH & Co. KG	Echterdingen	VK	100.00
	Leinfelden
Kirchhoff Asphaltmischwerke Verwaltungs-GmbH	Echterdingen	NK	100.00
Kirchhoff Construction s.r.l.	Bucuresti	NK	100.00
	Leinfelden
Kirchhoff Projektgesellschaft mbH	Echterdingen	NK	100.00
	Leinfelden
Kirchhoff Stuttgart Beteiligungs-GmbH	Echterdingen	NK	100.00
Kirchner & Völker Bauunternehmung GmbH	Erfurt	VK	90.00
Kirchner Baugesellschaft m.b.H.	Spittal an der Drau	NK	100.00
Kirchner Holding GmbH	Bad Hersfeld	VK	100.00
Kirchner PPP Service GmbH	Bad Hersfeld	NK	100.00
Kirchner Romania s.r.l.	Bukarest	NK	100.00
Kirchner Service GmbH	Bad Hersfeld	NK	100.00
Klinik für Psychosomatik und psychiatrische Rehabilitation GmbH	Spittal an der Drau	NK	100.00
KMG - KLIPLEV MOTORWAY GROUP A/S	Kopenhagen	VK	100.00
KÖKA Kft.	Budapest	VK	100.00
Königswall Invest B.V.	AK Den Haag	NK	100.00
Kopalnie Melafiru w Czarnym Borze Sp.z o.o.	Czarny Bor	VK	99.96
	Konstantynow
KRAL ASFALT Sp.z o.o.	Lodzki	NK	50.00
KSH Kalkstein Heiterwang GmbH & Co KG	Pinswang	NK	30.00
KSH Kalkstein Heiterwang GmbH	Pinswang	NK	30.00
KSR - Kamenolomy SR, s.r.o.	Zvolen	VK	100.00
LAS Lauterhofener Asphalt und Straßenbau
Gesellschaft mbH i.L.	Lauterhofen	NK	100.00
Latasfalts SIA	Milzkalne	NK	100.00
Lehmann-Verwaltungs-GmbH	Müllrose	NK	100.00
Leitner Gesellschaft m.b.H.	Hausmening	VK	100.00
Leonhard Moll Hoch- und Tiefbau GmbH	München	VK	100.00
Leonhard Moll Tiefbau GmbH	München	VK	100.00
Liberecka Obalovna s.r.o.	Liberec	NK	50.00
Lieferasphalt Gesellschaft m.b.H. & Co OG, Viecht	Viecht	NK	66.50
Lieferasphalt Gesellschaft m.b.H. & Co. OG	Maria Gail	NK	60.00
Lieferasphalt Gesellschaft m.b.H.& Co.OG, Zirl	Vienna	NK	50.00
Lieferasphalt Gesellschaft m.b.H.	Vienna	NK	50.00
LIMET Beteiligungs GmbH & Co. Objekt Köln KG	Cologne	VK	94.00
LIMET Beteiligungs GmbH	Cologne	VK	100.00
Linzer Schlackenaufbereitungs- und
vertriebsgesellschaft m.b.H.	Linz	NK	33.33
LISAG Linzer Splitt- und Asphaltwerk GmbH. & CO KG	Linz	NK	50.00
LISAG Linzer Splitt- und Asphaltwerk GmbH.	Linz	NK	50.00
LPRD (LESZCZYNSKIE PRZEDSIEBIORSTWO ROBOT
DROGOWO)-MOSTOWYCH Sp.z o.o.	Leszno	NK	57.29
M.A. d.o.o.	Split	VK	100.00
M5 Beteiligungs GmbH	Vienna	VK	100.00
M5 Holding GmbH	Vienna	VK	100.00
Magyar Aszfalt Kft.	Budapest	VK	100.00
Magyar Bau Holding Zrt.	Budapest	NK	100.00

compan y	residenc e	Consoli dation 1)	Direct stake %
MAK Mecsek Autopalya Koncesszios Zrt.	Budapest	EK	30.00
Maschinen und Logistik Thüringen GmbH & Co. KG	Erfurt	NK	50.00
MASZ M6 Kft.	Budapest	VK	100.00
MAV Mineralstoff - Aufbereitung und - Verwertung GmbH	Krefeld	VK	50.00
MAV Mineralstoff - Aufbereitung und Verwertung Lünen
GmbH	Lünen	VK	100.00
Mazowieckie Asfalty Sp.z o.o.	Warschau	NK	100.00
Mecsek Autopalya-üzemeltetö Zrt.	Budapest	NK	25.00
Messe City Köln Beteiligungsgesellschaft mbH	Hamburg	NK	50.00
Messe City Köln GmbH & Co. KG	Hamburg	NK	50.00
Meyerhans AG Amriswil	Amriswil	VK	100.00
Meyerhans AG, Strassen- und Tiefbau Uzwil	Uzwil	VK	100.00
MIEJSKIE PRZEDSIEBIORSTWO ROBOT DROGOWYCH
Sp.z o.o.	Bialystok	NK	86.80
MIGU-Asphalt-Baugesellschaft m.b.H.	Lustenau	NK	50.00
Mikrobiologische Abfallbehandlungs GmbH	Schwadorf	NK	51.00
MIL-MERT KKT.	Budapest	NK	50.00
Mineral Abbau GmbH	Spittal an der Drau	VK	100.00
Mineral Baustoff GmbH & Co. KG	Cologne	VK	100.00
Mineral Baustoff Verwaltungs GmbH	Cologne	VK	100.00
MINERAL IGM d.o.o.	Zapuzane	VK	100.00
Mineral Kop doo Beograd	Belgrad	NK	100.00
Mineral L.L.C.	Gllogovc	NK	100.00
Mineral Polska Sp z. o.o.	Strzelin	VK	100.00
MINERAL ROM S.R.L.	Brasov	NK	100.00
Mischek Bauträger Service GmbH	Vienna	NK	100.00
Mischek Leasing eins Gesellschaft m.b.H.	Vienna	NK	100.00
Mischek Systembau GmbH	Vienna	VK	100.00
Mischwerke Koschenberg - Verwaltung GmbH	Großkoschen	NK	50.00
Mischwerke Koschenberg GmbH & Co. KG	Großkoschen	NK	50.00
Mister Recrutamento Lda.	Lissabon	NK	100.00
MiTTaG spol. s.r.o.	Brno	VK	100.00
MLT Verwaltungs GmbH	Erfurt	NK	50.00
Mobil Baustoffe AG	Steinhausen	NK	100.00
	Gemeinde
MOBIL Baustoffe GmbH	Reichenfels	VK	100.00
MOBIL Baustoffe GmbH	München	VK	100.00
Mobil Concrete Qatar W.L.L.	Doha	NK	98.00
MOBIL-CONCRETE OOD	Sofia	NK	50.00
Möbius Construction Ukraine Ltd	Odessa	NK	100.00
Möbius Dredging-Aktiengesellschaft	Hamburg	NK	100.00
MOEBIUS-Bau Polska EMO Baczewscy Spolka Jawna	Szczecin	NK	50.00
Moeck Recycling Beteiligungsgesellschaft mbH	Grabenstetten	NK	45.00
Moeck Recycling GmbH & Co KG	Grabenstetten	NK	45.00
Moser & C. SRL	Bruneck	NK	50.00
MSO Mischanlagen GmbH Ilz & Co KG	Ilz	NK	47.00
MSO Mischanlagen GmbH Pinkafeld & Co KG	Pinkafeld	NK	52.67
MSO Mischanlagen GmbH	Ilz	NK	33.33
MTG Möbius Transportgesellschaft Geesthacht m.b.H.	Geesthacht	NK	100.00
MUSIKVIERTEL Grundstücksentwicklung GmbH	Cologne	NK	100.00
MUST Razvoj projekata d.o.o.	Zagreb	NK	100.00
MYTOLL Sp. z o.o.	Warschau	NK	100.00
N.V. STRABAG Belgium S.A.	Antwerpen	VK	100.00
N.V. STRABAG Benelux S.A.	Antwerpen	VK	100.00
Na belidle s.r.o.	Prag	VK	100.00
Nairobi Motorway Company Limited	Nairobi	NK	50.00

compan y	residenc e	Consoli dation 1)	Direct stake %
Natursteinwerke im Nordschwarzwald NSN GmbH & Co KG	Mühlacker	NK	25.00
Natursteinwerke im Nordschwarzwald
NSN Verwaltungs gmbH	Mühlacker	NK	25.00
NEGUS LTD ZAO	Moskau	NK	100.00
NEUE REFORMBAU Gesellschaft m.b.H.	Vienna	NK	100.00
Norsk Standardselskap 154 AS	Oslo	NK	100.00
NOSTRA Cement Kft.	Budapest	VK	100.00
NR Bau- u. Immobilienverwertung GmbH	Berlin	NK	100.00
NUOVO MERCATO GIANICOLENSE SRL	Bologna	NK	40.00
Nyugat Aszfalt Kft.	Györ	NK	100.00
OAT - Bohr- und Fugentechnik Gesellschaft m.b.H.	Spittal an der Drau	VK	51.00
OAT Kft.	Budapest	VK	100.00
OAT s.r.o.	Prag	VK	100.00
OAT spol. s.r.o.	Bratislava	VK	100.00
OBIT GmbH	Berlin	NK	100.00
Obit spol. s.r.o.	Prag	NK	100.00
ODEN Anläggning Fastighets AB	Stockholm	NK	100.00
Oden Anläggningsentreprenad AB	Stockholm	VK	100.00
ODEN Entreprenad Fastighets AB	Stockholm	NK	100.00
ODEN Maskin Fastighets AB	Stockholm	NK	100.00
Oder Havel Mischwerke GmbH & Co. KG	Berlin	EK	33.33
Off-Shore Wind Logistik GmbH	Stuttgart	VK	100.00
OFIM HOLDINGS LIMITED	Cardiff	NK	46.25
Onezhskaya Mining Company LLC	Petrozavodsk	NK	59.00
Ontwikkelingscombinatie Maasmechelen N.V.	Antwerpen	NK	50.00
Ooms-Ittner-Hof GmbH	Cologne	VK	100.00
OOO "Dywidag"	Moskau	NK	100.00
OOO "STRATON-Infrastruktura"	Sotschi	NK	50.00
OOO BMTI	Moskau	NK	100.00
OOO CLS Construction Legal Services	Moskau	NK	100.00
OOO STRABAG PFS	Moskau	NK	100.00
OOO Züblin Russia	Ufa	NK	100.00
OOO Züblin	Moskau	NK	100.00
Osttiroler Asphalt Hoch- und Tiefbauunternehmung GmbH	Lavant i. Osttirol	VK	80.00
	St. Johann
PAM Pongauer Asphaltmischanlagen GmbH & Co KG	im Pongau	NK	50.00
	St. Johann
PAM Pongauer Asphaltmischanlagen GmbH	im Pongau	NK	50.00
PARK SERVICE HÜFNER GmbH + Co. KG	Stuttgart	NK	48.44
Parking Bowling Green GmbH	Stuttgart	NK	100.00
Passivhaus Kammelweg Bauträger GmbH	Vienna	NK	100.00
PEKA Entwicklungsgesellschaft Kurfürstenanlage GmbH	Cologne	NK	100.00
PH Bau Erfurt GmbH	Erfurt	NK	100.00
Philman Holdings Co.	Philippinen	NK	20.00
PL-BITUNOVA Sp.z o.o.	Bierawa	VK	95.00
PLINIUS VASTGOED N.V.	Hasselt	NK	43.48
Polski Asfalt Sp.z o.o.	Breslau	VK	100.00
POLSKI ASFALT TECHNIC Sp.z o.o.	Kraków	NK	100.00
POLSKI ASFALT USLUGI BUDOWLANE Sp.z o.o.	Breslau	NK	100.00
Polskie Kruszywa Sp.z o.o.	Breslau	VK	100.00
Poltec Sp.z o.o.	Breslau	NK	100.00
Pomgrad Inzenjering d.o.o.	Split	VK	100.00
POßÖGEL & PARTNER STRAßEN- UND TIEFBAU GMBH HERMSDORF/THÜR.	St. Gangloff	VK	100.00
PP Prottelith GmbH i.L.	Hamburg	NK	100.00
PPP Conrad-von-Ense-Schule GmbH	Bad Hersfeld	NK	100.00

compan y	residenc e	Consoli dation 1)	Direct stake %
PPP Management GmbH	Cologne	NK	100.00
PPP Schulen Kreis Düren GmbH	Bad Hersfeld	NK	100.00
PPP Schulen Monheim am Rhein GmbH	Monheim	NK	100.00
PPP SchulManagement Witten GmbH & Co. KG	Cologne	NK	100.00
PPP SeeCampus Niederlausitz GmbH	Bad Hersfeld	NK	100.00
Preduzece za puteve "Zajecar" a.D.Zajecar	Zajecar	VK	93.29
Preusse Baubetriebe Gesellschaft mit beschränkter Haftung	Hamburg	VK	100.00
Preusse Baubetriebe und Partner GmbH & Co. KG
Halberstadt	Halberstadt	VK	100.00
Preusse Baubetriebe und Partner
Verwaltungsgesellschaft mbH	Halberstadt	NK	100.00
PRO Liegenschaftsverwaltungs- und
Verwertungsgesellschaft m.b.H.	Vienna	NK	100.00
Pro Waldhessen gemeinnützige Ausbildungs
und Qualifizierungsgesellschaft mbH	Bad Hersfeld	NK	20.00
Projekt Elbpark GmbH & Co. KG	Cologne	VK	100.00
Projekt Elbpark Verwaltungs GmbH	Cologne	NK	100.00
Projekta Bauvorbereitungsgesellschaft m.b.H. Nfg.KG	Vienna	NK	50.00
Projektgesellschaft Willinkspark GmbH	Cologne	NK	100.00
PRO-Lassallestraße-Grundstücksverwertungsgesellschaft
m.b.H.	Vienna	NK	50.00
Protecta Gesellschaft für Oberflächenschutzschichten
mit beschränkter Haftung	Düsseldorf	VK	100.00
Prottelith Produktionsgesellschaft mbH	Liebenfels	NK	52.00
Przedsiebiorstwo Budownictwa Ogólnego i Uslug Technicznych Slask Sp.z o.o.	Katowice	VK	60.98
PRZEDSIEBIORSTWO ROBOT DROGOWYCH Sp.z o.o. W
LIKWIDACJI	Choszczno	NK	100.00
PWG-Bau Pfersee Wohn- und Gewerbebauträger GmbH &
Co.KG	München	NK	50.00
PWG-Bau Pfersee Wohn-und Gewerbebauträger
Verwaltungs GmbH	München	NK	50.00
Pyhrn Concession Holding GmbH	Cologne	VK	100.00
PZC SPLIT d.d.	Split	VK	93.85
	Freiburg
Quartier Kurfürstenanlage GmbH & Co. KG	im Breisgau	NK	50.00
	Freiburg
Quartier Kurfürstenanlage Verwaltungs GmbH	im Breisgau	NK	50.00
RAE Recycling Asphaltwerk Eisfeld GmbH & Co.KG	Eisfeld	NK	25.00
RAE Recycling Asphaltwerk Eisfeld Verwaltungs-GmbH	Eisfeld	NK	25.00
Raiffeisen evolution project development GmbH	Vienna	EK	20.00
RAM Regensburger Asphalt-Mischwerke GmbH & Co KG	Barbing	NK	44.33
Rapp GmbH & Co. KG	Eislingen	NK	20.00
Rapp Verwaltungs-GmbH	Eislingen	NK	20.00
Raststation A 3 GmbH	Vienna	NK	100.00
Raststation A 6 GmbH	Vienna	VK	100.00
Rathaus Moers PPP Entwicklungs und Verwaltungsgesellschaft mbH	Cologne	NK	100.00
Rathaus-Carrée Saarbrücken Grundstücksentwicklungs Gesellschaft mbH i.L.	Cologne	NK	24.97
Rathaus-Carrée Saarbrücken
Grundstücksentwicklungsgesellschaft mbH & Co.KG	Cologne	NK	25.00
RBS Rohrbau-Schweißtechnik Gesellschaft m.b.H.	Linz	VK	100.00
RE Scheibenbergstraße 38 Wohnungserrichtungs GmbH	Vienna	NK	99.00
RE Wohnungseigentumserrichtungs GmbH	Vienna	NK	75.00
Regensburger Asphalt-Mischwerke GmbH	Barbing	NK	44.33

compan y	residenc e	Consoli dation 1)	Direct stake %
REMEX Coesfeld Gesellschaft für Baustoffaufbereitung
mbH	Dülmen-Buldern	NK	50.00
Reutlinger Asphaltmischwerk Verwaltungs GmbH	Reutlingen	NK	50.00
Reutlinger Asphaltmischwerke GmbH & Co. KG	Reutlingen	NK	50.00
Rezidencie Machnac, s.r.o.	Bratislava	NK	50.00
RFM Asphaltmischwerk GmbH & Co KG	Traiskirchen	NK	33.33
	Wienersdorf
RFM Asphaltmischwerk GmbH.	Oeynhausen	NK	33.33
RGL Rekultivierungsgesellschaft Langentrog mbH	Langenargen	NK	80.00
Rheinbacher Asphaltmischwerk Gesellschaft
mit beschränkter Haftung	Rheinbach	NK	50.00
Rheinbacher Asphaltmischwerk GmbH & Co.
Kommanditgesellschaft für Straßenbaustoffe	Rheinbach	NK	50.00
	Neuenburg am
Rhein-Regio Neuenburg Projektentwicklung GmbH	Rhein	NK	90.00
Rieder Asphaltgesellschaft m.b.H. & Co. KG.	Ried im Zillertal	NK	50.00
Rieder Asphaltgesellschaft m.b.H.	Ried im Zillertal	NK	50.00
Rimex Gebäudemanagement GmbH	Ulm	VK	70.00
Rimex GmbH Servicebetriebe	Aalen	NK	70.00
riw Industriewartung GmbH	Ulm	NK	70.00
RKH Rheinkies Hitdorf GmbH & Co. KG	Bergheim	NK	33.33
RKH Rheinkies Hitdorf Verwaltungs GmbH	Bergheim	NK	33.33
ROBA Asphaltmischwerke Düsseldorf GmbH i.L.	Düsseldorf	NK	100.00
ROBA Baustoff Leipzig GmbH i.L.	Leipzig	NK	100.00
ROBA Kieswerk Merseburg GmbH i.L.	Merseburg	NK	100.00
ROBA Quarzitsplittwerk Profen GmbH i.L.	Profen	NK	100.00
ROBA Transportbeton GmbH	Cologne	VK	100.00
Robert Kieserling Industriefußboden Gesellschaft
mit beschränkter Haftung	Hamburg	VK	100.00
Romania Asfalt s.r.l.	Bukarest	NK	100.00
RST Rail Systems and Technologies GmbH	Barleben	NK	82.00
RVB Gesellschaft für Recycling, Verwertung
und Beseitigung von Abfällen mbH	Kelheim	NK	100.00
S.C. ECODEPOTECH S.R.L.	Ploesti	NK	51.00
S.U.S. Abflussdienst Gesellschaft m.b.H.	Vienna	NK	100.00
Salzburger Lieferasphalt OG	Sulzau	NK	20.00
SAO BRVZ Ltd	Moskau	VK	100.00
SAT OOO	Moskau	NK	51.00
SAT REABILITARE RECICLARE S.R.L.	Cluj-Napoca	NK	100.00
SAT s.r.o.	Prag	VK	100.00
SAT SANIRANJE cesta d.o.o.	Zagreb	NK	100.00
SAT SLOVENSKO s.r.o.	Bratislava	NK	100.00
SAT Sp.z o.o.	Olawa	VK	100.00
SAT Straßensanierung GmbH	Horhausen	VK	100.00
SAT Ukraine	Brovary	NK	100.00
SAT Útjavító Kft.	Budapest	VK	100.00
SAV Südniedersächsische Aufbereitung
und Verwertung Verwaltungs GmbH	Hildesheim	NK	50.00
SB Beton GmbH	Bad Langensalza	NK	100.00
SBR Verwaltungs-GmbH	Kehl/Rhein	VK	100.00
Schlackenkontor Bremen GmbH	Bremen	NK	25.00
Schotter- und Kies-Union GmbH & Co. KG	Leipzig	NK	57.90
Schotter- und Kies-Union Verwaltungsgesellschaft mbH	Hirschfeld	NK	100.00
SCHOTTERWERK EDLING GESELLSCHAFT M.B.H.	Klagenfurt	NK	74.00
SF Bau vier GmbH	Vienna	VK	100.00
SF Cologne Ingenieurs Cameroun S.A.	Yaounde	NK	100.00

compan y	residenc e	Consoli dation 1)	Direct stake %
SF Consultants Nigeria	Lagos	NK	60.00
SF-Ausbau GmbH	Freiberg	VK	100.00
SF-BAU Drei Vermögensverwaltung GmbH	Vienna	NK	100.00
SF-BAU Gesellschaft für Projektentwicklung und schlüssel
fertiges Bauen mbH	Leipzig	NK	100.00
SF-BAU Grundstücksgesellschaft "ABC-Bogen" mbH	Cologne	NK	100.00
SF-BAU Projektentwicklung GmbH	Cologne	NK	100.00
Shanghai Changjiang-Züblin Construction&Engineering
Co.Ltd.	Shanghai	VK	75.00
Siroki Brijek	Mostar	NK	49.00
Slokenbeka SIA	Milzkalne	NK	82.08
SLOVASFALT, spol.s.r.o.	Bratislava	VK	100.00
SMB Construction International GmbH	Sengenthal	NK	50.00
SOWI - Investor - Bauträger GmbH	Innsbruck	NK	33.33
SPK - Errichtungs- und Betriebsges.m.b.H.	Spittal an der Drau	NK	100.00
Spolecne obalovny, s r.o.	Prag	NK	50.00
SRE Erste Vermögensverwaltung GmbH	Cologne	NK	100.00
SRK Kliniken Beteiligungs GmbH	Vienna	NK	25.00
STA Asphaltmischwerk Strahlungen GmbH	Strahlungen	NK	24.90
Stadtbaumeister Architekt Franz Böhm GmbH	Vienna	VK	100.00
stahl + verbundbau gesellschaft für
industrielles bauen m.b.H.	Dreieich	NK	30.00
	St. Michael/
Steinbruch Mauterndorf Gesellschaft m.b.H.	Lungau	NK	50.00
Stephan Beratungs-GmbH	Linz am Rhein	NK	30.00
Storf Hoch- und Tiefbaugesellschaft m.b.H.	Reutte	VK	100.00
STR Irodaház Kft.	Budapest	NK	100.00
STR Lakasepitö Kft.	Budapest	VK	100.00
STRABAG - ZIPP Development s.r.o.	Bratislava	VK	100.00
Strabag a.s.	Prag	VK	100.00
STRABAG ABU DHABI LLC	Abu Dhabi	VK	100.00
STRABAG AG	Cologne	VK	93.63
STRABAG AG	Spittal an der Drau	VK	100.00
STRABAG AG	Zürich	VK	100.00
STRABAG Algerie EURL	Alger	NK	100.00
STRABAG Anlagentechnik GmbH	Thalgau	VK	100.00
STRABAG Asset GmbH	Cologne	VK	100.00
STRABAG Bau GmbH	Vienna	VK	100.00
STRABAG Baustoffaufbereitung und Recycling GmbH	Düsseldorf	NK	51.00
STRABAG Beograd d.o.o.	Belgrad	VK	100.00
STRABAG Beteiligungsverwaltung GmbH	Cologne	NK	100.00
STRABAG Beton GmbH & Co. KG	Berlin	VK	100.00
STRABAG BV	Vlaardingen	VK	100.00
STRABAG Construction Nigeria	Ikeja	NK	100.00
STRABAG d.o.o. Sarajevo	Sarajevo	NK	100.00
Strabag d.o.o.	Zagreb	VK	100.00
Strabag Domodedovo OOO	Moskau	NK	100.00
STRABAG DOOEL Skopje	Skopje	NK	100.00
STRABAG Dubai LLC	Dubai	NK	100.00
STRABAG EAD	Sofia	VK	100.00
STRABAG Energietechnik GmbH	Vienna	NK	100.00
STRABAG Facility Management d.o.o.	Zagreb	NK	100.00
STRABAG Facility Management GmbH	Nürnberg	VK	100.00
STRABAG Facility Management Kft.	Budapest	NK	100.00
STRABAG FACILITY MANAGEMENT S.R.L.	Bukarest	NK	100.00
Strabag Facility Management Sp.z o.o.	Warschau	NK	100.00

		Consoli	Direct stake
compan y	residenc e	dation 1)	%
STRABAG gradbene storitve d.o.o.	Ljubljana	VK	100.00
Strabag Inc.	Toronto	VK	100.00
STRABAG Infrastruktur Development	Moskau	NK	100.00
	Champagne au
STRABAG Installations pour l'Environnement SARL	mont d'or	NK	100.00
Strabag International Benin SARL	Benin	NK	100.00
Strabag International GmbH	Cologne	VK	100.00
STRABAG Invest GmbH	Vienna	NK	51.00
STRABAG Kaliningrad OOO	Kaliningrad	NK	99.00
Strabag Kiew TOW	Kiew	NK	100.00
STRABAG konstrukce s.r.o.	Chrudim	VK	100.00
Strabag Liegenschaftsverwaltung GmbH	Linz	VK	100.00
STRABAG Offshore Wind GmbH	Cuxhaven	VK	100.00
Strabag Oktatási PPP Kft.	Budapest	NK	30.00
STRABAG OMAN L.L.C.	Muscat	VK	100.00
Strabag OOO	Moskau	NK	100.00
STRABAG Pipeline- und Rohrleitungsbau GmbH	Regensburg	VK	100.00
STRABAG Projektentwicklung GmbH	Cologne	VK	100.00
STRABAG Projektutveckling AB	Stockholm	VK	100.00
STRABAG Property and Facility Services a.s.	Prag	VK	100.00
STRABAG Property and Facility Services GmbH	Münster	VK	100.00
STRABAG Property and Facility Services GmbH	Vienna	VK	100.00
STRABAG Property and Facility Services s.r.o.	Bratislava	NK	55.00
STRABAG Property and Facility Services Zrt.	Budapest	VK	51.00
Strabag Qatar W.L.L.	Qatar	VK	100.00
STRABAG Rail Fahrleitungen GmbH	Berlin	VK	100.00
	Lauda
STRABAG Rail GmbH	Königshofen	VK	100.00
STRABAG Ras Al Khaimah LLC	Ras Al Khaimah	NK	100.00
STRABAG Real Estate AG	Zürich	NK	99.80
STRABAG Real Estate GmbH	Cologne	VK	100.00
Strabag RS d.o.o.	Banja Luka	NK	100.00
Strabag S.R.L.	Chisinau	NK	100.00
STRABAG s.r.o.	Bratislava	VK	100.00
Strabag Saudi Arabia	Khobar	NK	50.00
STRABAG Scandinavia AB	Stockholm	VK	100.00
STRABAG Sp.z o.o.	Warschau	VK	100.00
STRABAG Sportstättenbau GmbH	Dortmund	VK	100.00
Strabag srl	Bukarest	VK	100.00
STRABAG Umweltanlagen GmbH	Dresden	VK	100.00
STRABAG Unterstützungskasse GmbH	Cologne	VK	100.00
Strabag z.a.o.	Moskau	VK	100.00
Strabag Zrt.	Budapest	VK	100.00
STRABAG-HIDROINZENJERING d.o.o	Split	VK	100.00
Strabag-Mert Kkt.	Budapest	NK	50.00
STRABAG-MML Kft.	Budapest	VK	100.00
STRABAG-PROJEKT Sp.z o.o.	Warschau	NK	100.00
STRABIL STRABAG Bildung im Lauenburgischen GmbH	Cologne	NK	100.00
Straktor Bau Aktien Gesellschaft	Kifisia	NK	50.00
Straßenbau Thüringen GmbH	Erfurt	EK	50.00
Straßenbaustoffe Nonnendamm GmbH	Pinneberg	NK	33.10
Stratebau GmbH	Regensburg	VK	100.00
STRAVIA Kft.	Budapest	NK	25.00
STRIBA Protonentherapiezentrum Essen GmbH	Cologne	NK	50.00
STUAGBAU Development GmbH	Cottbus	NK	100.00
Südprojekt A-Modell GmbH & Co. KG	Rastatt	NK	100.00

compan y	residenc e	Consoli dation 1)	Direct stake %
Südprojekt A-Modell Verwaltung GmbH	Bad Hersfeld	NK	100.00
Syrena Immobilien Holding Aktiengesellschaft	Spittal an der Drau	NK	50.00
Szentesi Vasutepitö Kft	Budapest	VK	100.00
T1 Objektgesellschaft mbH & Co. KG	Cologne	NK	100.00
TBG Ceske Budejovice spol. s.r.o.	Budweis	NK	50.00
TBG Frissbeton Kft.	Pecs	NK	50.00
TBG Transportbeton Saalfeld GmbH & Co.KG	Saalfeld/Saale	NK	28.33
TBG Transportbeton Saalfeld Verwaltungs-GmbH	Saalfeld/Saale	NK	28.33
TBG-STRABAG d.o.o.	Zagreb	NK	50.00
TDE Mitteldeutsche Bergbau Service GmbH	Espenhain	NK	35.00
Techno Celik Yapi Sanayi ve Ticaret A.S.	Istanbul	NK	50.00
Tek Ermolino Sao	Moskau	NK	25.00
Tek Tunoschna Sao	Moskau	NK	25.00
TETRA Telekommunikation - Service GmbH	Vienna	NK	100.00
TH 116 GmbH & Co. KG	Cologne	NK	100.00
THE INTOLLIGENT LIMITED	Dublin	NK	100.00
Thüringer Straßenwartungs- und
Instandhaltungsgesellschaft mbH	Apfelstädt	EK	50.00
TOLLINK (PROPRIERTARY) LIMITED	Pretoria	NK	100.00
TOLLINK (SA)	Pretoria	VK	100.00
TolLink Pakistan (Private) Limited	Islamabad	VK	60.00
TOO BI-Strabag	Astana	NK	60.00
TOO Züblin Kasachstan	Almaty	NK	100.00
TOW BRVZ	Kiew	NK	100.00
TPA CR, s.r.o.	Beroun	VK	100.00
TPA EOOD	Sofia	VK	100.00
TPA Gesellschaft für Qualitätssicherung u.Innovation GmbH	Cologne	VK	100.00
TPA Gesellschaft für Qualitätssicherung
und Innovation GmbH	Vienna	VK	100.00
TPA Gesellschaft für Quatlitätssicherung
und Innovation GmbH	Erstfeld	NK	100.00
TPA INSTYTUT BADAN TECHNICZNYCH Sp.z o.o.	Pruszków	VK	100.00
TPA odrzavanje kvaliteta i inovacija d.o.o.	Zagreb	VK	100.00
TPA OOO	Moskau	NK	100.00
TPA Societate pentru asigurarea calitatii si inovatii SRL	Bukarest	VK	100.00
TPA Spolocnost pre zabezpecenie kvality a inovacie s.r.o.	Bratislava	VK	100.00
TPA za obezbedenje kvaliteta i inovacije d.o.o. Beograd	Novi Beograd	VK	100.00
TRADON GmbH & Co. KG	Markwerben	NK	100.00
TRADON Transportbeton Verwaltungs-GmbH	Merseburg	NK	100.00
Transportbetonwerk Hirschlanden GmbH & Co KG	Ditzingen	NK	30.00
Transportbetonwerk Hirschlanden Verwaltungs GmbH	Ditzingen	NK	30.00
Trema Engineering 2 sh p.k.	Tirana	VK	51.00
Treuhandbeteiligung B		NK	100.00
Treuhandbeteiligung H		VK	85.00
Treuhandbeteiligung M		NK	100.00
Treuhandbeteiligung Mo		NK	100.00
TSI VERWALTUNGS GMBH	Apfelstädt	NK	50.00
TSS Splitt- und Schotterwerke Thüringen
Beteiligungs GmbH	Bad Langensalza	VK	100.00
TSS Technische Sicherheits-Systeme
Gesellschaft mit beschränkter Haftung	Cologne	VK	100.00
UAB "Miobijus Baltija"	Klaipeda	NK	100.00
UAB "Strabag Baltija"	Klaipeda	NK	100.00
Ucka Asfalt d.o.o.	Zagreb	NK	100.00
ULTRA Transportbeton GmbH & Co KG	Neu-Ulm	NK	29.00
ULTRA Transportbeton VerwaltungsGmbH	Neu-Ulm	NK	29.00

compan y	residenc e	Consoli dation 1)	Direct stake %
UND-FRISCHBETON s.r.o.	Kosice	NK	75.00
UNI-BAU Wohnungseigentumserrichtungs GmbH in Liqu.	Vienna	NK	100.00
UNIPROJEKT Bau- und Innenbau GmbH	Vienna	NK	100.00
Universitätszentrum Althanstraße
Erweiterungsgesellschaft m.b.H.	Vienna	NK	100.00
Unterstützungseinrichtung für die Angestellten der ehemali
gen Bau-Aktiengesellschaft "Negrelli" Gesellschaft m.b.H.	Vienna	NK	50.00
VAM-Valentiner Asphaltmischwerk Gesellschaft m.b.H. &
Co.KG	Linz	NK	75.00
VAM-Valentiner Asphaltmischwerk Gesellschaft m.b.H.	Linz	NK	75.00
VARNA EFKON OOD	Varna	NK	52.00
VCO - Vychodoceska obalovna, s r.o	Hradec Kralove	NK	33.33
Verbundplan Birecik Isletme Ltd.	Birecik	NK	25.00
Vereinigte Asphaltmischwerke Gesellschaft m.b.H. & Co KG	Spittal an der Drau	NK	50.00
Vereinigte Asphaltmischwerke Gesellschaft m.b.H.	Spittal an der Drau	NK	50.00
Verwaltung Forum Mittelrhein Koblenz
Generalübernehmergesellschaft mbH	Oststeinbek	NK	51.00
Viamont DSP a.s.	Usti nad Labem	VK	100.00
VIANOVA - Bitumenemulsionen GmbH	Fürnitz	NK	24.90
VIANOVA SLOVENIJA d.o.o.	Logatec	NK	50.00
Viedenksa brana s.r.o.	Bratislava	VK	100.00
VKG-Valentiner Kieswerk Gesellschaft m.b.H.	Linz	NK	50.00
Vojvodinaput-Pancevo a.d. Pancevo	Pancevo	VK	82.07
Walter Group International Philippines, Inc.	Philippinen	NK	26.00
WBA - Walter Birgel Asphaltbau Gesellschaft
mit beschränkter Haftung	Leipzig	NK	85.00
WIBAU Holding GmbH	Linz	NK	24.80
WMB Drogbud Sp.z o.o.	Czestochowa	NK	51.00
WMW Weinviertler Mischwerk Gesellschaft m.b.H. & Co KG	Zistersdorf	NK	33.33
WMW Weinviertler Mischwerk Gesellschaft m.b.H.	Zistersdorf	NK	33.33
Wohnbau Tafelgelände Beteiligungs-GmbH	München	NK	25.00
Wohnbau Tafelgelände GmbH & Co. KG	München	NK	25.00
Wohnbauträgergesellschaft Objekt
"Freising - Westlich der Jagdstraße" mbH	Cologne	NK	100.00
Wohnen am Krautgarten Bauträger GmbH	Vienna	NK	100.00
WWOM Projektentwicklung GmbH in Liquidation	Vienna	NK	87.50
Xaver Bachner GmbH	Straubing	VK	100.00
Z.I.P.O.S. d.o.o.	Antunovac	NK	50.00
Zaklad Surowcow Drogowych "Walmor" Sp.z o.o.	Warschau	NK	48.08
Z-Bau GmbH	Magdeburg	VK	100.00
ZDE Projekt Oberaltenallee GmbH	Hamburg	NK	100.00
ZDE Sechste Vermögensverwaltung GmbH	Cologne	NK	100.00
ZDE Siebte Vermögensverwaltung GmbH	Cologne	NK	100.00
ZDE Vierte Vermögensverwaltung GmbH	Cologne	NK	100.00
Z-Design EOOD	Sofia	NK	100.00
Zentrum Rennweg S-Bahn Immobilienentwicklung GmbH	Vienna	NK	100.00
Zezelivskij karier TOW	Zezelev	VK	99.36
ZG1 s.r.o.	Bratislava	NK	100.00
ZG2 s.r.o.	Bratislava	NK	100.00
ZG3 s.r.o.	Bratislava	NK	100.00
ZG4 s.r.o.	Bratislava	NK	100.00
ZG5 s.r.o.	Bratislava	NK	100.00
ZIBA Partikeltherapiezentrum Kiel GmbH	Cologne	NK	50.00
ZIPP BRATISLAVA spol. sr.o.	Bratislava	VK	100.00
ZIPP Brno s.r.o.	Brno	NK	50.00
ZIPP GECA, s.r.o.	Geca	NK	100.00

compan y	residenc e	Consoli dation 1)	Direct stake %
ZIPP PRAHA, s.r.o.	Prag	VK	100.00
ZIPP REAL, a.s.	Brno	NK	50.00
Züblin A/S	Trige	VK	100.00
Züblin AS	Oslo	NK	100.00
Züblin Australia Pty Ltd	Perth	NK	100.00
Züblin Baugesellschaft m.b.H.	Vienna	VK	100.00
Züblin Bulgaria EOOD	Sofia	NK	100.00
Züblin Chile Ingeneria y Contruccuiónes Ltd.	Santiago	NK	100.00
Züblin Construct s.r.l.	Bukarest	VK	100.00
Züblin Engineering Consulting (Shanghai) Co., Ltd.	Shanghai	NK	100.00
Züblin Gebäudetechnik GmbH	Erlangen	VK	100.00
Züblin Ground and Civil Engineering LLC	Dubai	VK	100.00
Züblin Holding GesmbH	Vienna	VK	100.00
Züblin Holding Thailand Co. Ltd.	Bangkok	NK	79.35
Züblin Hrvatska d.o.o.	Zagreb	NK	100.00
Züblin International Chile Ltda.	Santiago	VK	100.00
Züblin International GmbH	Stuttgart	VK	100.00
Züblin International Malaysia Sdn. Bhd.	Kuala Lumpur	VK	100.00
Züblin International Qatar LLC	Doha	EK	49.00
Züblin Ireland Limited	Dublin	NK	100.00
Züblin K.f.t	Budapest	VK	100.00
Züblin Maschinen- und Anlagenbau GmbH	Kehl/Rhein	NK	100.00
Züblin Nederland BV	Vlaardingen	VK	100.00
Züblin Projektentwicklung GmbH	Stuttgart	VK	100.00
Züblin Scandinavia AB	Sollentuna	VK	100.00
Züblin Services GmbH	Stuttgart	NK	100.00
Züblin Slovensko s.r.o.	Bratislava	NK	100.00
Züblin Sp.z o.o.	Poznan	VK	100.00
Züblin Spezialtiefbau Ges.m.b.H.	Vienna	VK	100.00
Züblin Spezialtiefbau GmbH	Stuttgart	VK	100.00
Züblin Stahlbau GmbH	Hosena	VK	100.00
Züblin stavebni spol s.r.o.	Prag	VK	100.00
Züblin Thailand Co. Ltd.	Bangkok	NK	100.00
Züblin Umwelttechnik GmbH	Stuttgart	VK	100.00
Züblin Wasserbau GmbH	Berlin	VK	100.00
Zucotec - Sociedade de Construcoes Lda.	Lissabon	VK	100.00

Group management report

Important Events

January

The STRABAG consortium KMG - Kliplev Motorway Group was awarded the tender for Denmark's first PPPproject. The consortium will plan and build 26 km of the M51 motorway from Kliplev to Sønderborg as well as 18 km of side roads and seven interchanges and will operate the road over a period of 26 years from completion. The total investment volume amounts to € 148 million.

STRABAG AG, Cologne, was hired by Flughafen Berlin-Schönefeld GmbH as general contractor to expand the apron and taxiway system of the German capital's new airport Berlin Brandenburg International (BBI). The project total amounts to € 57 million. Construction is expected to last until the middle of 2011.

February

STRABAG was awarded the contract to build the 36.5 km section of the S7 Expressway between Kalsk and Miłomłyn approx. 100 km northwest of Warsaw. Construction for the € 260 million contract began in March 2010 and is expected to end in July 2012. Construction will be carried out by the STRABAG subsidiaries STRABAG Sp. z o.o. and Hermann Kirchner Polska Sp. z.o.o., Poland.

The 100 % STRABAG subsidiary DYWIDAG Saudi Arabia Co. Ltd. was awarded the contract to build two warehouses at the industrial port of Jubail, a large industrial city on Saudi Arabia's Persian Gulf coast. The € 18 million project comprises the turnkey construction of two warehouses with surface areas of 27,000 m² and 37,000 m², an administration building, guard houses and reinforced storage sites for containers. The project is scheduled for completion in mid-2011. Also in Jubail, STRABAG will build a coker unit with a contract value of € 23 million.

March

STRABAG signed the contract to build the new Galeria Kaskada shopping centre in Szczecin, Poland. The total value of investment for the project amounts to € 190 million. The construction works commenced in March 2010 and the project is due to be finished in the autumn of 2011.

Serbian motorway company Putevi Srbije hired STRABAG for the full rehabilitation of the Gazela Bridge, the main motorway bridge over the river Sava. The bridge, which connects Novi Belgrade with Belgrade, is one of Europe's most important along the Pan-European transport corridor 10. Construction works began in early April and are scheduled to end in May 2012.

STRABAG subsidiary Ed. Züblin AG won the construction contract to build the high-rise project "De Rotterdam" in Rotterdam, Netherlands, valued at around € 170 million. The Züblin subsidiaries Züblin Nederland BV and STRABAG Belgium N.V., who have formed a joint venture, will execute the project. Completion is planned for the end of 2013.

STRABAG was awarded the tender to build the Küblis bypass tunnel in the Swiss canton of Grisons with a total value of approx. € 59 million. The contract for the 2.2 km tunnel includes the construction of the safety gallery and the management of the Schanielatobel disposal site located on the route of the bypass. Construction should be completed in November 2015 (excl. roadway). STRABAG has responsibility for the entire project.

April

STRABAG was assigned for the modernisation of the Kaiserstuhl power plant in the Swiss canton of Obwalden. The order is worth a total of approx. € 17.5 million. Construction began in June 2010 and is to be completed in December 2012. STRABAG's share is 100 %.

On 21 April 2010, the Port Authority of Zadar and STRABAG signed a contract for phase II of the new Gaženica ferry terminal at Zadar, Croatia. The contract is worth € 93 million and covers maritime structures, access roads and basic infrastructure of the new terminal. STRABAG will cooperate with local suppliers – as was the case during phase I of construction, carried out by a STRABAG consortium as well. This phase will be completed within 30 months.

May

STRABAG SE issued a five-year, € 100 million fixed-interest corporate bond with a coupon of 4.25 %. The issue price has been set at 100.976 %.

Lafarge, a French building materials manufacturer, and STRABAG concluded a strategic partnership to combine their cement activities in several countries of Central Europe. The two companies signed an agreement on 25 May 2010 creating the holding company Lafarge Cement CE Holding GmbH. The new company will have its headquarters in Austria. Lafarge will bring its cement plants at Mannersdorf and Retznei in Austria, Cížkovice in the Czech Republic and Trbovlje in Slovenia into the holding, while STRABAG will contribute the plant it is currently building in Pécs in Hungary. Lafarge then will hold a 70 % interest in the new company, while STRABAG will hold 30 %. Lafarge Cement CE Holding GmbH will have a total annual production capacity of 4.8 million tonnes of cement. The approval by the relevant cartel authorities was granted in February 2011.

JunE

STRABAG signed an agreement for the rehabilitation of national road DN 67B in Romania. The client is Romania's national road construction agency CNADNR SA. In a joint venture with two Romanian road construction companies, STRABAG will modernise 188.2 km of the national road between Scoarţa and Piteşti over a period of 36 months. The total value of the order is € 89 million, with STRABAG's share amounting to € 62 million (70 %).

In Abu Dhabi, STRABAG subsidiary Ed. Züblin AG will build the non-process buildings for the Takreer Refinery in Ruwais. The turnkey project, commissioned by the Abu Dhabi Oil Refining Company, comprises 17 buildings as well as access roads and extensive outdoor facilities on a total space of 205,273 m². Construction is expected to last 38 months. The total value of the order is € 94 million. The group's share amounts to 100 %.

A consortium led by STRABAG Real Estate GmbH was awarded the contract for a PPP from the city of Mülheim an der Ruhr, Germany. The company was chosen in a multistage tender process to handle the redevelopment, partial new development and operation of the schools Karl-Ziegler-Gymnasium, Luisenschule and Willy-Brandt-Gesamtschule as well as the operation of the Gemeinschaftsgrundschule Styrum for a period of 25 years. The contract volume amounts to € 160 million, of which € 52 million is for the construction and modernisation of the buildings. Construction should be completed in December 2012.

Supervisory board elections took place on 18 June 2010 during the Annual General Meeting (AGM) of STRABAG SE. Alfred Gusenbauer and Kerstin Gelbmann were elected to the supervisory board. Alfred Gusenbauer replaced the former Chairman of the Supervisory Board Waldemar Jud. Gottfried Wanitschek and Siegfried Wolf were reelected to the supervisory board by the AGM. Gerhard Gribkowsky left the supervisory board.

Upon approval of majority shareholder STRABAG SE, Ed. Züblin AG and both of the minority shareholders amicably agreed on settling all pending law suits of the minority shareholders against the company.

JulY

With the acquisition of the majority interest in Rimex Group as at 1 July 2010, STRABAG Property and Facility Services (STRABAG PFS) GmbH continued on its growth course and expanded its service spectrum to include inhouse services in the infrastructural facility management segment. Rimex specialises in services in the cleaning and landscaping area. With a staff of about 2,000 employees, Rimex realised a turnover of about € 27 million in 2009. The previous owners will retain a 30-percent stake in the company and will continue to manage the company.

In Tyrol, Austria, STRABAG has been awarded the contract to plan and build the Brenner rest stop on the A13 including all necessary exterior facilities. STRABAG will operate the rest stop jointly with partners OMV and Rosenberger for a period of 30 years under a PPP model. The total investment volume for the project amounts to around € 11 million.

August

On 31 August 2010, Wolfgang Merkinger (58), the STRABAG SE member of the management board with commercial responsibility for the segment Transportation Infrastructures, resigned his management board mandate for health reasons. Mr Merkinger's management board seat was not filled and the STRABAG SE management board was reduced to six members.

September

The Directorate-General for Public Works and Water Management of the Netherlands Rijkswaterstaat authorised A-Lanes A15 – a joint venture between STRABAG AG, Ballast Nedam, John Laing and Strukton – with the construction of the PPP project A15 Maasvlakte-Vaanplein. John Laing participates for 28 % as shareholder in A-Lanes A15. Ballast Nedam, STRABAG and Strukton participate for 24 % each as shareholders in A-Lanes A15 and all three have a stake of one third in the design, building and maintainance phases. The concession has a term of 25 years and represents a total project value of approx. € 1.5 billion. Construction will last from mid-2011 to the end of 2015.

STRABAG acquired 100 % of ECM Facility a.s. – a provider of property and facility management services – located

in Prague, Czech Republic. With 220 employees the company achieved a turnover of approx. € 16 million in 2009. With this acquisition STRABAG enters the Czech market for Property & Facility Management as one of the Top 5 companies.

October

STRABAG's subsidiaries in Sweden received the contract to design and build the extension and renovation of Täby Centrum (shopping centre) in Stockholm, Sweden. The contract is worth a triple digit million-euro amount. Construction work started in October 2010 and will end in March 2015.

STRABAG SE has concluded the renewal of a syndicated surety loan (SynLoan) with a consortium of 17 international banks led by Deutsche Bank and Raiffeisen Bank International. The volume of the surety loan amounts to € 2.0 billion, the duration will be five years. The credit range replaces the previous line in the amount of € 1.5 billion.

STRABAG Sp. z o.o., STRABAG AG and Hermann Kirchner Polska Sp. z o.o., three subsidiaries of STRABAG SE, signed the contract to build a new bridge complex in Toruń, Poland. Construction began in autumn 2010 and is expected to be finished within 32 months. The project value amounts to about € 139 million.

STRABAG and ÖBB Infrastruktur AG signed the contract for the largest construction contract ever awarded in Austria, the Koralm Tunnel. The contract value amounts to € 570 million. Construction of the main lot started in early 2011 and is scheduled for completion in late 2018.

November

Rasperia Trading Ltd., a part of the diversified industrial group Basic Elements under sphere of influence of Russian industrialist Oleg Deripaska, exercised the call option to repurchase a 17 % stake in STRABAG SE. Rasperia repurchased 19,380,000 shares of the company for € 373,065,000, or € 19.25 per share. With it Rasperia remains a full-fledged member of the syndicate on the basis of the existing shareholder agreement with Haselsteiner Group and Raiffeisen/UNIQA Group. The call option for further 8 % was extended until 15 July 2014.

To strengthen the presence on the Russian market, STRABAG made an advance payment of € 70 million for a 26 % stake in the leading Russian road construction company Transstroy, part of the Basic Element group. STRABAG will take the time for a thorough due diligence of Transstroy, which posted a turnover of RUB 39 billion in 2009 (1 EUR = 42 RUB), before agreeing on a definitive purchase price.

STRABAG received the contract by a subsidiary of Basic Element to serve as general contractor regarding the construction of the Olympic village in Sochi, Russia. According to this, by September 2013 STRABAG will construct residences and hotels ahead of the Olympic winter games 2014. The contract is subject to the finalising of the financing for this approx. € 350 million project.

December

STRABAG Sp. z o.o. and Galeria Katowicka Sp. z o.o. signed a contract for the construction of a new shopping centre in Katowice in Poland. The contract comprises the construction of a 5-storey shopping centre, construction of the railway station, construction of a associated bus station with its commercial area and road passage under the railway station. The total project value amounts to € 240 million. The STRABAG share is worth a tripledigit million-euro amount.

COUNTRY REPORT

European Construction Sector Recovering More Slowly than Economy as a Whole

Output Volume of STRABAG SE by Country 2009–2010

€ Mln	2010	% of total output volume 2010	2009	chang e %	chang e absolute	% of total output volume 2009
Germany	5,051	40 %	5,380	-6 %	-329	41 %
Austria	1,907	15 %	1,981	-4 %	-74	15 %
Poland	1,352	11 %	993	36 %	359	8 %
Czech Republic	867	7 %	786	10 %	81	6 %
Hungary	580	5 %	832	-30 %	-252	6 %
Slovakia	427	3 %	480	-11 %	-53	4 %
Switzerland	370	3 %	378	-2 %	-8	3 %
Middle East	295	2 %	350	-16 %	-55	3 %
Benelux	284	2 %	221	29 %	63	2 %
Russia	251	2 %	282	-11 %	-31	2 %
Scandinavia	248	2 %	199	25 %	49	2 %
Americas	246	2 %	162	52 %	84	1 %
Romania	165	1 %	161	3 %	4	1 %
Africa	136	1 %	168	-19 %	-32	1 %
Italy	128	1 %	108	18 %	20	1 %
Rest of Europe	128	1 %	140	-9 %	-12	1 %
Asia	126	1 %	84	50 %	42	1 %
Croatia	92	1 %	149	-38 %	-57	1 %
Serbia	45	0 %	37	21 %	8	0 %
Slovenia	43	0 %	67	-35 %	-24	1 %
Bulgaria	36	0 %	35	4 %	1	0 %
Ireland	0	0 %	28	-100 %	-28	0 %
Output volume total	12,777	100 %	13,021	-2 %	-244	100 %
thereof CEE1)	3,858	30 %	3,822	1 %	36	29 %

Despite the strong presence in its home markets of Austria and Germany, STRABAG sees itself as a European company. The group has been active in Eastern Europe for decades in order to diversify the country risk and to profit from the market opportunities in the region. Business in these countries accounted for about 30 % of the total group output volume in 2010 as it did the year before. This gives STRABAG a unique position in comparison to the competition and makes it the market leader in the construction sector in Central and Eastern Europe.

STRABAG has for years pursued the strategy of expanding its market shares on the home and growth markets in order to achieve the necessary economies of scale to become a cost leader.

Growth Comparison Western and Eastern Europe

In contrast to the economy as a whole, a decline is again expected for the European construction sector in 2010. As a result of the overall economic recovery, which was reflected in a positive gross domestic product (GDP) in 2010, slight growth is first expected in 2011, with accelerated growth in 2012. Both the GDP and the construction volume developed quite differently in the individual markets of Western and Eastern Europe. While the construction output volume in Western Europe is recovering only slowly and will not enter positive territory until 2012, the construction industry in Eastern Europe has fared better throughout the economic crisis thanks to the booming Polish market. Particularly the continued need to address infrastructure deficiencies is proving to be a factor driving further growth in the region. 25 % 30 %

Development of the Construction Industry Segments in Western and Eastern Europe 10 % 15 %

In the countries of Western Europe, residential construction has been a driver of growth since the economic crisis. In Eastern Europe, by comparison, the construction industry's main activities are in civil engineering. The segment's contribution is expected to rise from around 45 % to 50 % from 2010 to 2012 due to continued infrastructure growth. While building construction – as in Western Europe – will then amount to some 30 % of the sector's overall output volume, residential construction carries much lower weight than in Western Europe.

The building construction segment shrank by 5.1 % across Europe in 2010, and a recovery is not expected until 2012. The development in Western and Eastern Europe is very similar, although recovery is expected somewhat sooner in Eastern Europe. Commercial buildings will continue to represent the highest percentage of new 2008 2009 2010e 2011e 2012e 2013e 2008 2009 2010e 2011e 2012e 2013e

construction activity. Office and industrial buildings are not expected to show growth until 2012. Because of the economic crisis, the construction of warehouse facilities has also been on the decline, with only slight growth expected in 2011 and 2012. 0 % 5 %

Eastern Europe has a special status in the busy field of civil engineering, a sector that receives funding from the EU's structural funds. This is due to two factors: on the one hand, civil engineering accounts for the largest share of the overall construction industry in Eastern Europe; on the other hand, the segment is also showing significantly more dynamic growth here than in Western Europe. While the civil engineering volume in Western Europe has been steadily declining since 2009, Eastern Europe is showing constant growth. Growth of 13.3 % is again expected in 2012 as well, with a slight slowing of the growth rate in sight for 2013. -10 % 2008 2009 2010e 2011e 2012e 2013e -5 %

EASTERN EUROPE WESTERN EUROPE

Austria

After the crisis-induced decline of the previous year, Austria's economy again grew by 2.0 % in 2010, with renewed growth of 1.9 % currently forecast for 2011. The Austrian economy is benefiting from the positive impulses from the globally increasing demand and the favourable exchange rate development. In view of the tense situation regarding the state finances, however, the government has decided on a package of extensive austerity measures in the 2011 budget. 2008 2009 2010e 2011e 2012e 2013e -10 %

With fewer long-term investments being made, the Austrian construction industry continues to suffer from the effects of the economic crisis. Overall, the construction output volume fell by 3.0 % in 2010. Slight growth is again expected for 2011, driven mainly by building construction. The sharp rise in construction prices, however, is having a damping effect on the real growth rates.

While new residential construction once again dropped noticeably in 2010 in response to the low investment propensity among private households and construction contractors, and is likely to continue to shrink in 2011 as well, commercial building construction is again painting a more

Total construction output Non-residential construction

positive picture. Although a minus of 4.3 % was still recorded here in the past year, Euroconstruct is forecasting renewed growth of 2.3 % for 2011. The reasons for this lie in the growth of the GDP, the rise in exports and the increasing industrial production, all of which will lead to an overall more dynamic situation regarding property and plant investments.

This should also lead to a gradual increase in construction investments in this area. Especially affected should be industrial and warehouse buildings and, on a somewhat smaller scale, office buildings as well. The construction activity in the healthcare and education sectors, on the other hand, should benefit from several larger projects, for example in academia. Government subsidies and demographic change also have a favourable effect. In contrast, no significant impulses can be expected among commercial buildings despite stable growth in consume demand.

The area of civil engineering, which had recorded significant growth between 2000 and 2008, lost 3.1 % in the year under report. The future development here is strongly dependent on the government's infrastructure plans, which, however, have been partially scaled back in view of the budget restrictions. Nevertheless, several large projects were decided in the field of tunnelling towards year's end. As a result, only a minor decline of 0.3 % is expected here for 2011. 2008 2009 2010e 2011e 2012e 2013e

STRABAG generated a total of 15 % of the group output volume in its home market of Austria in 2010 (2009: 15 %). Alongside Germany and Poland, Austria thus continues to be one of the group's top 3 markets. With a share of 7.0 %3), STRABAG also remains the market leader here. The output volume reached a volume of € 1,906.54 million in 2010. The Building Construction & Civil Engineering segment contributed 51 % to the total, followed by Transportation Infrastructures with 38 % and the Special Divisions & Concessions segment with 9 %. In 2010, STRABAG won the tender for Austria's largest construction contract – the construction of the Koralm Tunnel.

1) Country output as percentage of group output volume

3) In the absence of current figures, the market shares stated in the entire country report refer to the year 2009 and to the total market, including all construction segments.

²⁾ All growth forecasts as well as the national construction volumes are taken from the Euroconstruct's winter 2010 reports.

Germany

Overall Country Construc tion Output		€ 251.1 billion
	40% 2010e	2011e
GDP growth in %	3.5	2.0
Construction growth in %	3.4	1.3

Following a sharp decline of the gross domestic product in the previous year, the German economy again recorded significant growth of 3.5 % in 2010. The losses suffered during the crisis were quickly overcome and the economic recovery was given a broader basis. The positive economic development was also reflected in the construction output volume, which again grew by 3.4 % in 2010 following the decline of the previous year. In addition to the economic upturn, the low unemployment, the stronger confidence in the economy and the government's stimulus programmes were also responsible for the positive development in all sectors of the construction industry.

Despite the fact that the economists at Euroconstruct see a continuation of the economic recovery for 2011, the growth of the global economy is expected to slow once more over the course of the year as the global trade is also significantly losing momentum. Additionally, the consolidation measures in the euro area, as well as the low level of competitiveness of the countries of Southern Europe, are dampening the further upswing. For the construction output volume in Germany, only moderate growth of 1.3 % is forecast for 2011.

The field of commercial building construction benefited from the government's stimulus programmes in 2010. Projects which had already been planned but were delayed because of the crisis could be continued in 2010. Furthermore, the strong economic recovery led to a higher willingness among businesses to invest, so that the field of building construction grew overall by 2.2 %.

In the area of civil engineering, the government's stimulus packages also had a positive effect on investments, leading to growth of 3.7 %. This field thus was – in addition to the significantly recovered field of private residential construction – the strongest driver of growth behind the overall construction output volume in Germany. The focus in the field of civil engineering lies on the expansion and modernisation of the road, rail and waterway networks.

Thanks to a market share of 2.1 %, STRABAG is market leader in Germany. With a value of € 5,051.24 million, some 40 % of STRABAG's overall output volume was generated in Germany. The Transportation Infrastructures segment contributed the most (46 %) to the output volume in Germany, reaching a market share of 9.4 % in the German road construction sector.

Poland

The Polish economy achieved renewed growth in 2010. Thanks to the strong industrial production and the increased export activity, the gross domestic product again grew by 2.9 % in the reporting period after the plus of 1.7 % in the previous year. Positive impulses also came from the increased private consumption, compensating for the only moderate development among enterprise investments resulting from the slow recovery of the financial markets.

For 2011, Euroconstruct again expects economic growth of 3.3 % for Poland. Against the backdrop of the low debt in the private sector, the largest drivers of growth will continue to be private consumption, EU funds for public investments in infrastructure and education, and company spending for inventory buildup.

After originally higher forecasts, the construction output volume in Poland grew by around 4 % in 2010. The lower-than-expected growth was the result of the reduced state financial budget as well as the delay of road construction projects. In 2011, the output volume should grow again by around 12.7 % due to the realisation of road construction projects and because of investments in sport venues ahead of the 2012 UEFA European Football Championship.

As was the case with residential construction, the field of commercial building construction also registered a slight recovery in 2010. This development was due to the increased production capacity utilisation and – analogous to the private sector – thanks to the improved financing possibilities. After the decline of 2009, this area again reached moderate growth of 0.8 %.

The forecasts for the field of civil engineering were significantly revised downwards. Due to drastic savings in road construction, expenditures were up by just 8.3 %. Additionally, the severe winter and the floods in southern and central Poland resulted in construction being halted on a number of infrastructure projects. For 2011 and 2012, however, renewed growth of 26.3 % and 21.7 % is expected, respectively.

STRABAG is the number two in the construction sector in Poland. With € 1,351.91 million, the country contributed 11 % to the group's overall output volume in 2010, remaining STRABAG's third-largest market. 80 % of the output volume came from the Transportation Infrastructures segment, which contributed the largest percentage of the revenue by far. With 13 %, Building Construction & Civil Engineering came in second place. STRABAG's share of the entire Polish construction market stood at 2.7 %, that of road construction at 8.8 %.

Czech Republic Hungary

After a worsening economic situation precipitated by the outbreak of the financial crisis in 2008, the Czech Republic returned to moderate growth in the second quarter of 2010. Overall, GDP growth in 2010 reached 0.8 %. Euroconstruct expects the growth to continue thanks to the favourable economic environment and to again reach around 1.2 % in 2011.

Due to the government's drastic austerity programmes, the construction output volume fell by 10.0 % in 2010. The new government that took office in the middle of the year moved to significantly cut funding for the public sector, which hit the areas of transport and infrastructure the hardest. The output volume will continue to sink against this backdrop, with no recovery in sight until 2013.

Analogous to the field of private residential construction, the area of commercial building construction also registered negative growth. The experts at Euroconstruct do not expect the situation to improve in the coming years. Negative trends can be seen above all among private investors. The situation is made worse by the high interest rates at Czech banks, which are not passing on the central bank's lower rates to their customers. Against the backdrop of the current budget cuts, however, the public sector is also failing to deliver any growth impulses.

The field of civil engineering had been the only area to record growth even in times of crisis. However, this growth came to an end in 2009. Public investments were cut immediately after the elections, so that a number of projects had to be suspended. This led to a 10.2 % decline in the field of civil engineering in 2010. In the coming years, the situation in this area is likely to get even worse.

STRABAG is the number four on the market in the Czech Republic. With an output volume of € 866.73 million, the group generated around 7 % of its overall output volume on the Czech market in 2010. The market share amounts to 3.9 %. 83 % of STRABAG's Czech construction output volume is generated by the Transportation Infrastructures segment, 13 % by Building Construction & Civil Engineering and 4 % by Special Divisions & Concessions.

The European economy began to recover in the spring of 2010. At the same time, international confidence in the Hungarian economy grew, above all due to the positive trade balance. As a result, the Hungarian forint gained in strength and stability and the country was able to reduce its state debt. Against this backdrop, the Hungarian economy grew by 1.0 %. Despite the continued difficult environment, Euroconstruct expects to see growth of 2.8 % in 2011.

After five negative years in a row, the Hungarian construction output volume experienced a record low of -3.8 % in 2010. The recovery of the construction sector that had been expected for the spring failed to materialise. The renewed worsening is to be blamed mainly on natural disasters and delays regarding large construction projects. For 2011, however, Euroconstruct expects a reversal of the trend, driven above all by the faster application of EU funds.

The declining demand in 2009 for commercial building construction that was triggered by the economic crisis continued unabated in 2010. Overall, the field registered a minus of 3.5 %. The strongest declines were recorded in the area of retail and trade. Commercial building construction is not expected to stabilise before the years 2011/2012.

The construction output volume in civil engineering remained stable in 2010. Heavy rains led to floods which caused damage to the country's infrastructure. This area has been largely financed from EU funds since 2009, with investments flowing mainly into the modernisation of roads and projects to protect the environment. Spending for infrastructure projects, however, is expected to double from 2011. With forecast growth of an average of 10 % for each of the years in the period 2011–2013, this area should continue to compensate for the restrained growth in building construction.

In 2010, STRABAG generated an output volume of € 579.64 million in Hungary. The share of the overall market stood at 8.4 %, with road construction even contributing 20.7 % to STRABAG's group output volume. This makes the company the market leader in Hungary. With 47 %, the Transportation Infrastructures segment accounted for the largest percentage of the output volume. Building Construction & Civil Engineering and Special Divisions & Concessions generated respectively about 40 % and 12 % of the output volume.

Slovakia

Due to its small size and its dependency on exports, the economy of Slovakia was especially hard hit by the crisis. Thanks to growing foreign demand, however, the economic performance again grew by a projected 4.0 % in 2010. Against the backdrop of the government's consolidation measures, Euroconstruct expects growth of 3.3 % for 2011, with even more dynamic growth forecast for 2012. Significant drivers of growth are exports and industrial production.

The development of the construction industry so far does not reflect the budding upswing, however. As a result of the economic crisis, the serious floods and the new government's austerity measures, the construction output volume again fell by 6.3 % in 2010. Euroconstruct expects to see recovery only towards the end of 2011.

The field of building construction, which accounts for nearly half of the construction output in Slovakia, registered a decline of 10.2 % influenced by the crisis of 2010. Funding in this area originates mainly from foreign investors, who were hard hit by the financial crisis. Euroconstruct, however, expects the situation to improve from 2012 and is forecasting renewed positive growth rates. Contributions towards this growth are likely to come from the government's expected measures for an investment-friendly climate. Overall, public spending will fall, but positive impulses are expected from the application of EU money. The necessary works to remedy and repair damages from the disastrous floods should also produce additional growth.

The field of civil engineering in 2010 registered renewed growth of 2.6 % for the first time in years. Declines in the areas of modernisation and renovations could be compensated by investments in transport infrastructure, above all in the construction of roads and motorways. Euroconstruct expects a growth spurt of 20.1 % for 2011 due mainly to higher government spending.

In Slovakia, STRABAG generated an output volume of € 426.55 million in 2010, giving it a share of 8.7 % of the Slovak market and 16.2 % of the Transportation Infrastructures business. The biggest contribution in 2010 was the 55 % made by the Building Construction & Civil Engineering segment, closely followed by Transportation Infrastructures with 43 %. The Special Divisions & Concessions segment contributed 2 % to the overall output volume.

Switzerland Russia

Overall Country Construc tion Output		€ 37.5 billion
	2010e	2011e
GDP growth in %	2.7	1.8
Construction growth in %	2.4	1.1

Following a decline of the economic performance in the previous year, Switzerland registered renewed GDP growth of 2.7 % in 2010, higher than the average rate of growth in Europe and the United States. Declining unemployment figures, the increase in disposable income in relation to consumer spending, and positive population growth contributed to the good economic performance. Due to the slower growth of the global economy, however, Euroconstruct also expects growth of only 1.8 % in Switzerland for 2011.

In line with the economic development, the construction industry also continues to paint a positive picture. The overall construction output volume grew by 2.4 % in 2010. The optimism is limited to the past financial year, however. A lower growth rate is already expected in 2011.

While residential construction continued to prove an engine driving growth in 2010, the field of building construction also returned to a growth path with a plus of 1.5 % following the negative development of the past few years. Overall, this sector accounts for around one third of the construction output volume in Switzerland. A further increase of 2.4 % is expected for 2011. More than half of the spending in the area of building construction is for renovation activities.

In the past few years, the field of civil engineering grew more strongly than the construction sector as a whole and it continued this path in 2010 with growth of 6.3 %. The highest contribution came from the infrastructure field, above all from the modernisation of roads. Due to the end of the Swiss government's economic stimulus package, however, Euroconstruct expects to see a significant decline in 2011.

The Swiss market contributed € 370.30 million or 3 % to the group's overall construction output volume in 2010. The output volume was generated mostly in the Building Construction & Civil Engineering segment (44 %), while Transportation Infrastructures and the Special Divisions & Concessions segment contributed 18 % and 37 % to the total output, respectively.

Like the majority of the countries of Central and Eastern Europe, Russia was hit especially hard by the global recession. With the rising price of oil and the consolidation of the finance system, however, slight recovery began to set in towards the end of 2009. But the main factor driving growth was private consumption, while the importance of exports remained lower than before the crisis. Against this backdrop, the GDP is projected to have again grown by 4.6 % in 2010. For the coming years, the experts at Euroconstruct expect to see continued growth in the country's economic performance.

Following a strong decline in the previous year, the Russian construction sector stabilised in 2010 with a slight 0.3 % increase of the overall output volume. For the years to come, significant growth is again expected for the construction output volume.

Similar to the situation in residential construction, a slight recovery also took hold in the field of building construction in the second half of 2010, despite the fact that expensive loans continued to make it difficult to finance projects. Significant drivers of growth here were the construction activities for the 2014 Winter Olympics in Sochi and for the APEC Summit in Vladivostok. Continued dynamic growth is expected here in the years to come.

With a plus of 6.6 %, the strongest growth by far was achieved in the field of civil engineering. The nuclear power plant in Rostov, the port of Ust-Luga and the construction activities in Sochi represent projects of high national interest which were carried out or promoted, respectively. Russia winning the right to host the 2018 FIFA World Cup will also bring further impulses to the sector, securing even more future growth. Additionally, significant investments are to be made in the field of road construction by 2015.

STRABAG has been active in Russia since 1991 and generated an output volume of € 251.08 million in the country in 2010. The contribution to the overall group output volume amounted to 2 % in the period under report. In Russia, STRABAG is active almost exclusively in the Building Construction & Civil Engineering segment (95 %) with projects such as hotels, shopping centres and industrial buildings.

Middle East, Africa, Americas, Asia – Rest of World

6%

In addition to its main markets in Europe, the STRABAG Group is also active in individual non-European regions in Asia, Canada, Africa and the Middle East. These markets will be of increased significance as STRABAG seeks to increase its presence in the non-European markets in order to become more independent from the economic conditions among the previous growth markets. In all, the group generated € 802.56 million in these regions in 2010, which corresponds to 6 % of the overall group output volume – the same as the year before.

In the non-European markets, STRABAG is usually active as a general contractor through direct export. The focus in these regions is on civil engineering, industrial and infrastructure projects and tunnelling – areas in which high technological expertise is required.

The most important projects include the construction and modernisation of two airports in Oman, the construction of the Rohtang Pass highway tunnels at 3,980 m above sea level in the western Himalaya region in India, as well as motorway orders in North Africa. STRABAG's activities in non-European countries in all areas of business are mostly included – with a few small exceptions – in the Special Divisions & Concessions segment.

Rest of Western and Northern Europe

Benelux

First signs of an economic recovery in the Benelux states could be seen in the first half of 2010. The recovery turned out to be stronger than originally expected: following the negative development of the previous year, the GDP in Belgium and the Netherlands again grew by 1.8 % in 2010. From 2012, growth rates are expected to top the 2 % mark.

While the construction output volume in Belgium fell by only 0.6 %, this figure dropped by 9.4 % in the Netherlands, which does not adequately reflect the higher economic performance. The decline was due mainly to the public spending cuts, affecting the areas of residential construction and building construction the hardest. The experts of Euroconstruct do not expect the industry to recover until 2012.

STRABAG generated an output volume of € 284.26 million in the Benelux countries in 2010. The region contributes 2 % to STRABAG's Group output volume, with around 80 % coming from the Building Construction & Civil Engineering segment. The trend, however, is shifting towards infrastructure projects. In 2010, STRABAG won a public private partnership project (PPP) in the region: the A15 motorway in the Netherlands.

Scandinavia

The construction economy in Scandinavia showed very strong country-specific differences in 2010. Both Sweden and Norway achieved positive GDP growth in the amount of 4.3 % and 1.0 %, respectively, but the construction output volume in Norway fell by 3.1 % while growing by 2.4 % in Sweden. Negative impulses came above all from the fields of building construction and civil engineering, while private residential construction registered a strong plus. In Sweden, growth rates were recorded in all areas, with the strongest growth impulses felt in the residential construction sector here, too. In 2011, all areas – with the exception of building construction in Norway – are expected to grow once more.

STRABAG's construction output volume in Scandinavia

in 2010 amounted to € 248.13 million. The main activities include infrastructure projects in the area of bridge building and tunnelling. With 66 %, the Transportation Infrastructures segment made the strongest contribution to the overall output volume in Scandinavia. In Denmark, STRABAG received the contract for the construction of the M51 PPP-motorway.

Italy

In 2010, the Italian economy recorded slightly positive GDP growth of 1.1 % for the first time in two years. Yet this stabilisation is not expected to have positive effects in the construction sector until the years to come: in 2010, the overall construction output volume fell by 4.8 %. With a minus of 7.5 %, commercial building construction was the hardest hit, while residential construction and civil engineering registered declines of 3.8 % and 3.3 %, respectively. As the expected decline of global trade activities will have a strong effect on the predominantly export-driven Italian economy, Euroconstruct expects only moderate growth of 0.9 % for 2011.

STRABAG's output volume in Italy amounted to € 127.89 million in 2010. Of this amount, 92 % was generated within the Special Divisions & Concession segment. The currently largest project involves the construction of state roads SS 77 and SS 78 (Quadrilatero).

Rest of CEE: Romania, Croatia, Serbia, Slovenia, Bulgaria

Romania

Romania's economic performance fell by a projected 1.6 % in 2010. A slight recovery in foreign trade and exports is responsible for the improvement over the previous year (-7.1 %) despite the fact that foreign investments remained at a low level in 2010.

Due to the lack of investments and a general decline in demand, the overall construction output volume fell by 21.6 % in 2010, whereby the field of residential construction was hardest hit with a minus of 35 %. With a share of more than 40 % of the overall output volume, commercial building construction is the driving force of the Romanian construction sector. In 2010, the market registered negative growth. A slightly lower decline than the previous year could be felt in the field of civil engineering, which lost just 1.1 % due to government investments in infrastructure and as a result of EU subsidies. This positive trend should strengthen significantly in the coming years.

STRABAG generated € 165.47 million in Romania in 2010, placing it in second place on the Romanian construction market. With 63 %, the Transportation Infrastructures segment contributed the highest percentage to the group's overall output volume in the country.

Croatia

Like other countries in the region, Croatia was also hard hit by the crisis. After a GDP decline of nearly 6 % in 2009, negative growth of 1.7 % is expected for 2010. Only in 2011 does Euroconstruct again expect to see positive economic development.

Against the backdrop of a lack of new projects, the overall construction output volume fell by more than 10 % in 2010, with a slight recovery expected only in 2012. Due to the low level of demand and the high financing costs, the field of residential construction again registered the strongest decline. Building construction was also harder hit by the crisis than had originally been expected, as larger projects were delayed or cancelled entirely. Declining demand and lower purchasing power also had a negative effect.

The field of civil engineering registered a decline of 7.7 % in 2010. Some 70 % of the infrastructure projects in this area are financed by EU money. No projects were cancelled because of the recession, but the dates for completion were postponed. For 2012, Euroconstruct expects a slight increase of 1.5 % in civil engineering.

In 2010, STRABAG achieved an output volume of € 91.93 million in Croatia. With 58 %, the company generated its highest percentage of the group output volume in the country in the Transportation Infrastructures segment.

Serbia

After a difficult 2009, Serbia again registered a slight increase in its economic performance in 2010. Following a plus of 0.5 % in the year under review, growth is even expected to reach 2.5 % in 2011. A significant engine driving growth is Serbia's WTO membership, which should help pave the way for new investors.

The overall construction output volume fell by 7 %, whereby the field of civil engineering was especially affected. An upswing of the market is expected in 2011 at the earliest. Positive trends can already be felt due to increased levels of demand and higher utilisation rates in building construction. The current situation of a low shopping centre density coupled with growing demand also has

a favourable effect in this area. Against the backdrop of financing commitments for road projects from the European Bank for Reconstruction and Development, the civil engineering business should also show significant renewed growth starting in 2011.

STRABAG's output volume in Serbia reached € 45.41 million in 2010. With 65 %, the Transportation Infrastructures segment contributed the greatest amount.

Slovenia

Against the backdrop of a noticeable recovery of the economy, the GDP again achieved slight growth of 1.1 % in 2010 after the strong decline the year before. Nevertheless, the overall construction output volume showed a minus of 27.2 %, again placing it significantly below the volume reached during the 2009 crisis year.

No recovery was in sight during 2010 in either residential construction or building construction, with continuing negative growth due to the lack of financing possibilities and delays affecting the completion of large projects. The experts of Euroconstruct expect slightly positive growth to set in no sooner than 2013. Civil engineering also saw a further decline of 28.4 %, mainly in response to the completion of several large construction projects that had been partially financed by EU funds. Additionally, the order value fell in this area as a result of the concentration on maintenance and upkeep. Based on the country's continuing difficult financing situation, Euroconstruct does not expect public investments to increase significantly until 2014.

In 2010, STRABAG achieved an output volume of € 43.25 million in Slovenia. With 59 %, the company generated the highest percentage of its group output volume in the country in the Building Construction & Civil Engineering segment.

Bulgaria

Due to the crisis-induced collapse of foreign investments, the Bulgarian economy again fell by around 0.6 % in 2010. Against this backdrop, the construction output volume also shrank by 9.2 % in 2010. While the experts at Euroconstruct are already forecasting moderate growth for the economy as a whole for 2011, the downward trend in the construction industry will probably return to positive territory in 2012 thanks to the realisation of some large infrastructure projects. The field of residential construction suffered the highest losses in response to the difficult access to loans, the rising interest rates and the dwindling purchasing power. Also hard hit was the field of building construction, while civil engineering is expecting a plus of 11.1 % for 2010. Driving growth in this field are the Bulgarian government's investment projects, in particular in the area of road construction.

STRABAG generated € 36.49 million on the Bulgarian market in 2010. With 49 %, the Building Construction & Civil Engineering segment contributed the highest percentage to STRABAG's total output volume in Bulgaria.

Order Backlog

Order Backlog of Strabag SE by Segment 2009–2010

31.12. € MLN.	total (incl other) 2010	building construc tion & civil engin ee ring	transpor tation in frastruc tures	special divisions & conc es sions	total (incl other) 2009	chang e group %	chang e group absolute
Germany	3,795	1,556	1,321	900	4,048	-6 %	-253
Poland	2,338	502	1,501	333	2,451	-5 %	-113
Austria	1,634	778	289	566	1,253	30 %	381
Russia	1,297	1,287	0	10	1,048	24 %	249
Benelux	778	385	70	324	326	139 %	452
Czech Republic	597	80	488	23	624	-4 %	-27
Scandinavia	568	51	386	132	251	126 %	317
Middle East	499	17	0	482	316	58 %	183
Italy	450	1	0	449	554	-19 %	-104
Africa	435	1	0	435	458	-5 %	-23
Slovakia	428	227	192	9	517	-17 %	-89
The Americas	377	89	0	288	514	-27 %	-137
Switzerland	354	206	23	126	325	9 %	29
Romania	301	59	221	21	174	73 %	127
Hungary	263	114	114	35	492	-47 %	-229
Asia	261	84	0	178	335	-22 %	-74
Croatia	155	113	41	1	74	110 %	81
Serbia	74	32	42	0	13	470 %	61
Rest of Europe	73	40	33	0	102	-28 %	-29
Slovenia	43	29	8	7	51	-15 %	-8
Bulgaria	17	10	7	0	29	-43 %	-12
Ireland	0	0	0	0	13	-100 %	-13
Order
backlog total	14,739	5,660	4,735	4,318	13,968	6 %	771
thereof CEE	5,513	2,453	2,614	439	5,473	1 %	40
Segment contribution to group order backlog		38 %	32 %	29 %

Development of Order Backlog 2006–2010

Construction Sites Included in the Order Backlog on 31 December 2010

Categories of order size

small: € 0 million to € 15 million medium: € 15 million to € 50 million large: over € 50 million

category	number of construc tion sites	order bac klog T€
Small orders	16,066	4,789,446
Medium-sized orders	216	2,317,906
Large orders	110	7,631,388
Total	16,392	14,738,740

The order backlog reached € 14.7 billion, which corresponds to a plus of 6 % on the year – another record high at year's end. The growth was carried by the expansion in northern European markets and the Middle East as well as by the acquisition of the largest construction order in Austria, the Koralm Tunnel, and the growing demand in Russia.

In the Building Construction & Civil Engineering segment, declines were registered in the order backlog in the established markets of Hungary and Germany due to the completion of several large projects in 2010. This dampened the order backlog in the short term, setting only slightly below the previous year's level at year's end. For 2011, however, STRABAG again expects to see rising demand in Germany. The significantly increased order backlog in the Transportation Infrastructures segment was due largely to the expansion in northern Europe and state investment programmes in Romania's infrastructure. The double digit growth in the Special Divisions & Concessions segment is thanks to the Koralm Tunnel project and the flourishing business with public private partnerships.

The overall order backlog is comprised of nearly 16,400 individual projects. Small projects with a volume of up to € 15 million each account for 32 % of the order backlog, a further 16 % are medium-sized projects with order volumes between € 15 million and € 50 million, while 52 % are large projects of € 50 million and more. The high number of individual contracts guarantees that the risk involved with one project does not threaten the group's success as a whole. The ten largest projects in the order backlog on 31 December 2010 added up to 24 % of the order backlog, compared to 25 % at the end of 2009.

Number of projects in progress on 31 December 2010

The ten largest projects currently in progress

Country	Project	Order Volume in € Mln	As % of Total Order Bac klog
Poland	A2 Segment II	855	5.8 %
Austria	Koralm Tunnel 2	497	3.4 %
Russia	Kautschuk residential complex	430	2.9 %
Russia	Olympic Village	310	2.1 %
Italy	Val di Chienti	307	2.1 %
Canada	Niagara Tunnel	286	1.9 %
Netherlands	A Lanes A15	271	1.8 %
Libya	Tajura Infrastructure	267	1.8 %
Poland	S7 Kalsk-Milomlyn	177	1.2 %
Romania	Motorway Deva-Orastie	153	1.0 %
Total		3,553	24.1 %

Impact of Changes to the Scope of Consolidation

In the 2010 financial year, 33 companies (thereof 12 mergers with fully consolidated companies) were included in the scope of consolidation for the first time. These companies contributed a total of € 324.23 million to the consolidated revenue and € 2.40 million to the net income after minorities. As a result of first-time inclusions, current and non-current assets increased by € 257.54 million, current and non-current liabilities by € 114.19 million.

Financial Performance

A number of factors influenced the business, resulting in development in opposing directions so that STRABAG registered only a slight decline in the 2010 financial year with an output volume of € 12,777.00 million. The construction boom in Poland had a positive effect on output and, above all in the Transportation Infrastructures segment, made up for the disadvantageous weather conditions in Europe at the beginning of the year. In comparison, considerable declines in output volume were seen in the Transportation Infrastructures segment in Germany and Hungary. Due to the weather, the output volume in the Building Construction & Civil Engineering segment in Germany was also considerably below the level of the previous year. These burdens, in combination with the lack of orders in tunnelling, had a greater effect than did the boost received from new large-scale projects in northern Europe and internationally.

The consolidated group revenue for the 2010 financial year stood at € 12,381.54 million, which – in line with the output volume – corresponds to a decline of 1 %. The ratio of revenue to construction output volume remained very high at 97 % (previous year: 96 %). The Building Construction & Civil Engineering segment contributed 32 %, Transportation Infrastructures 46 % and Special Divisions & Concessions 22 % to the revenue. These percentages were the same the year before, considering the changed segment organisation which took place at the beginning of 2010. The international business was grouped in the Special Divisions & Concessions segment, independent of the business unit.

The changes in inventories declined due to the sale of own real estate project developments, while the amount of own work capitalised grew thanks to the progress in the construction of the proprietary cement factory in Hungary.

With the low revenue, the raw materials, consumables and services used, as well as the employee benefits expense, fell by 3 % to € 8,218.36 million and by 1 % to € 2,800.93 million, respectively. The ratio of raw materials, consumables and services used as well as employee benefits expense versus revenue was reduced from 90 % in 2009 to 89 % in 2010.

Other operating expenses grew by 10 % to more than € 1 billion due in part to the higher provisions. At the same time, other operating income increased by 7 %, thanks in part to the sale of property, plant and equipment. This item also includes income from the fully consolidated concession company AKA.

	2010 € Mln	2009 € Mln	chang e %
Raw materials, consumables and services used	8,218	8,447	-3 %
Employee benefits expense	2,801	2,823	-1 %
Other operating expenses	1,030	933	10 %
Depreciation and amortisation	436	401	9 %

At € 32.39 million, the share of profit or loss of associates turned from negative back into positive territory in the 2010 financial year – the previous year's figure contained goodwill impairment of € 20 million for an associated company. A stimulating one-off effect resulted from the increased interest from 50 % to 100 % in railway con-struction subsidiary Viamont DSP a.s. in February 2010. In accordance with the new rule regarding step acquisitions as provided by IFRS 3 and IAS 27, measurement was made directly in profit or loss in the amount of € 24.60 million (Notes page 134). The net income from investments, at € 15.07 million, was higher than the year before and is made up of dividend payments from many smaller companies as well as financial investments.

It follows that the earnings before interest, taxes, depreciation and amortisation (EBITDA) grew by 7 % to € 734.69 million, resulting in a higher EBITDA margin, rising from 5.5 % to 5.9 %.

Development of EBITDA AND EBITDA MARGIN 2006–2010

A premium for control was considered in the purchase price for the additional 50 % interest in Viamont DSP a.s. As synergy effects in the group may only be used after organisational measures, these synergies are not yet included in the goodwill. This resulted in a charge for goodwill impairment in the amount of € 14.00 million. Altogether, the transaction resulted in a positive earnings effect of € 10.6 million at the level

of the EBIT. Depreciation and amortisation in the amount of € 435.74 million include, in addition to the above-mentioned goodwill impairment, further goodwill impairment of approx. € 36 million.

The earnings before interest and taxes (EBIT) grew by 6 % to € 298.95 million. This resulted in an EBIT margin of 2.4 %, after 2.3 % the previous year. At € -19.68 million, the negative net interest income remained largely unchanged on the previous year. This stable development affected both the interest on credit as well as the interest expense. The net interest income includes € 6.4 million in exchange losses.

As a result, the profit before tax grew by 6 % to € 279.27 million. Although STRABAG considers an average tax rate of 30 % to be realistic, the rate climbed from 29.8 % to 32.5 % during the 2010 financial year. This led to net income of € 188.38 million and a plus of 2 % over the previous year.

"Earnings per share € 1.53"

After a significant increase in 2009, minority interest fell back to € 13.52 million in the past financial year. The net income after minorities stood at

€ 174.86 million, 8 % above the level from the year before. The number of weighted outstanding shares remained unchanged at 114,000,000 shares, so that the earnings per share also grew by 8 % to € 1.53.

The return on capital employed (ROCE) was calculated at 5.4 % (previous year: 5.7 %).

92

Financial Position and Cash-Flows

	2010 € mln.	% of balanc e sheet total	2009 € Mln	% of balanc e sheet total
Non-current assets	4,345	42 %	4,300	44 %
Current assets	6,037	58 %	5,313	56 %
Equity	3,232	31 %	3,099	32 %
Non-current debt	2,364	23 %	2,305	24 %
Current debt	4,786	46 %	4,209	44 %
Balance sheet total	10,382	100 %	9,614	100 %

STRABAG SE's balance sheet total increased by more than € 700 million to € 10,382.16 million, due in large part to an advance payment for the A2 Segment 2 project in Poland in the triple-digit millions and thanks to higher non-current and current provisions. The former was responsible for the significantly larger cushion of cash and cash equivalents – a rather short-term effect – and at the same time drove up the trade payables.

IFRS requires the proprietary cement factory in Hungary, which will be organised in a cement holding company in 2011, to be shown separately in the balance sheet. The carrying value is therefore shown in the item Assets held for sale on the assets side of the balance sheet. STRABAG will hold 30 % of the cement holding company.

	2010	2009
Equity ratio %	31.1 %	32.2 %
Net debt € mln.	-669	-596
Gearing ratio %	-20.7 %	-19.2 %
Capital employed € mln.	5,236	5,043

Given the higher balance sheet total, the equity ratio fell slightly from 32.2 % to 31.1 %. The management board considers an equity ratio between 20 % and 25 % to be a realistic target in the medium-term.

As in the years before, STRABAG ended the year with a net cash position. Reaching € 669.04 million on 31 December 2010, this figure again grew in a year-on-year comparison. As reported above, this is due to an advance payment for a large-scale project in Poland. The net cash position does not include € 719.89 million in non-recourse financial liabilities related to the AKA and Kliplev Motorway Denmark concession companies. The interest expense of these non-recourse finance liabilities, as well as the interest income from receivables from concession arrangements, is presented in other operating income.

2010	2009
1,559	1,509
69	71
375	364
-720	-757
-1,952	-1,783
-669	-596

Calculation of net debt (€ mln.)

Development of equity, net debt and equity ratio

The cash-flow from operating activities fell significantly in the past financial year by 38 % to € 690.42 million. This decline is due to the extraordinarily high basis of the previous year, when a higher-than-average reduction of the working capital was achieved. The cash-flow from profits was 15 % lower in the 2010 financial year, but, as forecast, it was possible to further reduce the working capital. STRABAG does not expect to achieve a similar effect in the coming year.

The cash-flow from investing activities increased by onefifth to € -523.56 million. The company spent around 9 % more on the purchase of property, plant and equipment and intangible assets than the year before. Additionally, the advance payment for a 26 % stake in the Russian construction company Transstroy was registered with € 70.00 million in the cash-flow from investing activities.

The cash-flow from financing activities, at € -20.20 million, was far less negative than in the year before, as the company opted against a large-scale reduction of bank liabilities and instead decided to borrow more funds. STRABAG also issued a € 100 million bond in the 2010 financial year (while paying back a € 75 million bond), whereas in 2009 it had merely paid off outstanding bond.

Capital Expenditures

STRABAG had forecast capital expenditures (CAPEX) in the amount of approx. € 575 million for the 2010 financial year. This figure includes expenditures on intangible assets and on property, plant and equipment, as well as financial investments and enterprise acquisitions (changes to the scope of consolidation). The capital expenditures totalled € 610.95 million, slightly over the budget, but still significantly below the € 1 billion spent in 2008.

Expenditures on intangible assets and on property, plant and equipment – including the approx. € 70 million for the proprietary cement factory in Hungary – grew by 9 % to € 553.84 million, of which about three quarters were expansion expenditures and one quarter were maintenance expenditures. In the previous year, about half were maintenance expenditures and the other half expansion expenditures. The high proportion of expansion expenditures is due to STRABAG's focus of its capital expenditures: the company is expanding its activities in waterway construction and railway construction; a significant increase in demand can also be reported in Poland and in Germany so that the purchase of equipment in these countries is registered to a large degree as expansion expenditures.

Expenditures on intangible assets and on property, plant and equipment during the year under report must be seen against amortisation on intangible assets and depreciation on property, plant and equipment in the amount of € 435.74 million. This figure also includes goodwill impairment in a double-digit million-euro amount.

financing/TREASURY

The number one objective for the treasury management of STRABAG SE is assuring the continued existence of the company through the maintenance of constant solvency. This objective is to be reached through the provision of sufficient short-term, medium-term and long-term liquidity.

Liquidity for STRABAG SE means not only solvency in the strict sense but also the availability of guarantees. Building activities require the constant availability of bid, contract fulfilment, pre-payment and warranty guarantees and/or sureties. The financial scope of action is thus defined on the one hand by sufficient cash and cash credit lines, on the other hand by sufficient surety credit lines.

The management of liquidity risks has become a central element of the corporate management at STRABAG. In practice, liquidity risks come in various forms:

• In the short term, all daily payment obligations must be covered in time and/or in their entirety.
• In the medium term, liquidity levels must be sufficient so that no transaction (e.g. acquisitions, expenditures) or projects become impossible due to a lack of sufficient financial means or guarantees or that they cannot be executed at the desired pace.
• In the long term, the insufficient availability of financial means leads to potential impairment of the strategic development perspectives.

In the past, STRABAG has always oriented its financing decisions according to the risk aspects outlined above and has organised the maturity structure of the financial liabilities in such a way as to avoid a refinancing risk. In this way, the company has been able to maintain a great scope for action, which is of particular importance in a difficult market environment.

The necessary liquidity is determined by liquidity planning. Based on this, liquidity assurance measures are made and a liquidity reserve is defined for the entire group.

STRABAG SE has a total credit line for cash and surety loans in the amount of € 6.2 billion. The credit lines include a syndicated surety credit line in the amount of € 2.0 billion with a maturity until 2015.

The syndicated surety credit line was concluded in October 2010 with a consortium of 17 international banks led by Deutsche Bank and Raiffeisen Bank International (RBI). Further bookrunners and mandated lead arrangers are Baden-Württembergische Bank, Bayerische Landesbank, Commerzbank and UniCredit. The volume of the surety loan amounts to € 2.0 billion. The credit range replaces the previous line in the amount of € 1.5 billion.

The remaining cash and surety credit lines are managed bilaterally in cooperation with various banks. A high degree of diversification creates an adequate risk spread in the provision of the credit lines.

The medium- and long-term liquidity needs have so far also been covered by the issue of corporate bonds. STRABAG has regularly issued bonds on the Austrian market since 2004. Due to the market conditions, STRABAG opted against issuing a new bond in the 2009 financial year. In the 2010 financial year, STRABAG again successfully issued a € 100 million tranche with a five-year term to maturity. Currently, four bonds with a total volume of € 325 million are on the market.

The existing liquidity of € 2.0 billion and cash credit lines of € 0.4 billion assure the group's liquidity needs. Nevertheless, further bond issues are planned, depending on the market situation, in order to maintain a high level of liquidity reserves in the future as well.

In December 2010, S&P again confirmed its BBB- rating and stable outlook as STRABAG benefits from its good access to raw materials, the high order backlog and the solid capital structure in the otherwise cyclical, highly competitive and low-margin construction sector.

	2010	2009	2008	2007
Interest and other income (€ million)	79	78	90	50
Interest and other expense (€ million)	-98	-98	-131	-86
EBIT/net interest income	-15.2x	-14.2x	-6.7x	-8.6x

payment ob ligations	book value 31 december 2010 € Mln
Bonds	345
Bank Liabilities	1,147
Financial Leasing	63
Other Liabilities	5
Total	1,559

repayments incl. interest

• Bank Liabilities
• Financial Leasing
• Other Liabilities

96

Segment Overview

Overview of the Segments of STRABAG

The operating business of STRABAG SE is divided into three segments: Building Construction & Civil Engineering, Transportation Infrastructures and Special Divisions & Concessions. A further segment defined as "Other" encompasses expenditures, income and employees at the group's service companies and staff units as well as consolidation effects. Construction projects are assigned to one of the segments (see chart below). Certainly, projects may also be assigned to more than one segment. This is the case, for example, with PPP projects in which the construction part is assigned to its respective segment, but the concession part is assigned to the concessions unit of Special Divisions & Concessions. In projects which span more than one segment, the commercial and technical responsibility is assigned to that segment which has the higher share of the overall project value.

building construction transportation special divisions & civil engineering infrastructures & concessions

• Prefabricated Elements Paving Marketing of PPP Projects

• Housing Roads, Earthworks Tunnelling

• Industrial Facilities Waterways, Dyking Infrastructure
• Public Buildings Landscape Architecture Development ■ Production of and Development ■ Operation/Maintenance/
• Bridges Sports and Recreational Management ■ Power Plants Facilities ■ International Business,
• Railway Structures Sewer Systems units
• Production of Construction Specialty foundation Material engineering (until 31.12.2010)

• Railway Structures

• Commercial and Hydraulic Engineering, Real Estate Development

• Civil Engineering Large-Area Works Property and Facility
• Environmental Engineering Protective Structures across various business
• Bridges Offshore wind (until 31.12.2010)

Building Construction & Civil Engineering

The building construction half of the Building Construction & Civil Engineering segment includes the construction of commercial and industrial properties, airports, hotels, hospitals, office and administration buildings, residential real estate and the production of prefabricated elements. The field of civil engineering comprises complex infrastructure solutions, power plant construction, large-scale bridge building and environmental technology projects.

	2010 € MLN.	chang e 2009–2010 %	2009 € Mln	chang e 2008–2009 %	20081) € Mln
Output volume	4,279	-3 %	4,427	-24 %	5,822
Revenue	3,976	-2 %	4,059	-23 %	5,244
Order backlog	5,660	1 %	5,602	-17 %	6,774
EBIT	154	24 %	124	44 %	86
EBIT margin
as a % of revenue	3.9 %		3.1 %		1.6 %
Employees	18,253	-7 %	19,562	-32 %	28,802

Output Volume Building Construction & Civil Engineering

€ Mln	Output Volume 2010	Output Volume 2009	chang e %	Chang e absolute
Germany	1,548	1,674	-8 %	-126
Austria	967	938	3 %	29
Russia	237	273	-13 %	-36
Slovakia	235	298	-21 %	-63
Hungary	229	202	14 %	27
Benelux	228	194	17 %	34
Poland	173	177	-2 %	-4
Switzerland	164	126	31 %	38
Czech Republic	111	70	57 %	41
Americas	91	65	39 %	26
Rest of Europe	85	115	-26 %	-30
Romania	53	88	-40 %	-35
Asia	42	14	191 %	28
Croatia	36	59	-40 %	-23
Slovenia	25	43	-40 %	-18
Bulgaria	18	25	-29 %	-7
Serbia	15	4	262 %	11
Scandinavia	12	29	-58 %	-17
Italy	5	4	31 %	1
Middle East	2	12	-84 %	-10
Africa	2	3	-35 %	-1
Ireland	0	13	-100 %	-13
Output volume total	4,279	4,427	-3 %	-148
thereof CEE	1,133	1,239	-9 %	-106

Output Volume, Revenue and Result

The severe winter at the beginning of the year hindered the output growth in the Building Construction & Civil Engineering segment. The subsequent increases in the second half of the year only partly compensated the weaker business at the beginning of the year, resulting in an output volume for the full year 2010 of € 4,279.07 million – 3 % below the level of the year before. A significant decline was registered in particular on the German home market, while the remaining regions painted a very mixed picture.

Similar to the output volume, the revenue declined in the low single-digit percent range. In its earnings before interest and taxes (EBIT), in comparison, the Building Construction & Civil Engineering segment registered its highest level ever, € 153.77 million, which corresponds to growth of 24 % over the previous year. An especially positive yield development in Germany, Austria and Poland contributed to an increase of the EBIT margin from 3.1 % to 3.9 %.

Order Backlog

At € 5,659.60 million, the order backlog remained stable compared to the year before. Declines were registered in the core markets of Hungary and Germany. While STRABAG expects lower levels to persist in Hungary for the long term, the company is optimistic about its home market of Germany. A number of large projects, e.g. the ECE Rhein-Galerie in Ludwigshafen, were completed in 2010; this will dampen the order backlog in the short term, but STRABAG expects to see resurgent demand in the months to come. This can already be seen in a number of significant new orders, such as the Forum Mittelrhein shopping and cultural centre in Koblenz or the Vodafone headquarters in Düsseldorf.

STRABAG can also report of successful order acquisitions in Poland: three group subsidiaries were awarded the contract to build a new bridge complex in Toruń, and STRABAG will build the Galeria Kaskada shopping centre in Szczecin as well as the new shopping centre Galeria Katowicka in Katowice. Also positive is the order backlog in Russia, which grew by more than € 250 million. Russian orders, such as the construction of a mini rolling mill for the Balakovo steel works or the general contractor agreement for the Olympic village in Sochi – the agreement is still pending financing –, contributed to this increase after last year's order backlog had been negatively affected by project cancellations and delays.

Employees

In response to the declining output volume and expectations of a weaker order situation, employee numbers were reduced particularly in Germany, Austria, the Czech Republic, Slovakia and Russia, so that the Building Construction & Civil Engineering segment registered an average workforce level of 18,253 people in the full year. This corresponds to a decline of 7 %. In several markets, such as Slovakia and the Czech Republic, STRABAG expects the lower workforce to be structural and, as a result, long-lasting.

Outlook

The company only narrowly missed the 2010 target output of € 4.4 billion; however, it should be possible to meet the objective of raising the segment output to € 4.5 billion in the 2011 finan-

cial year. In the home markets of Germany and Austria, more than 70 % of the planned output for 2011 is already covered by existing orders. On the results side, however, high union wage demands in Germany as well as the increasing prices for subcontractors and construction materials, in particular steel, could have a negative effect.

"Niche Segment Environmental Technology as a Driver of Growth"

Price pressure reigns in Poland mainly among publicsector tenders. However, STRABAG gives itself good chances for environmental technology on this market. Hungary and Croatia remain difficult. In the Bulgarian construction sector, the low point in demand in Building Construction & Civil Engineering should be reached in 2011, while STRABAG sees signs of a slight improvement of the situation in Romania. In the Czech Republic and Slovakia, further postponements of contract awarding or even the withdrawal of already awarded tenders can be

observed.

Due to the declining price quality in several core markets, STRABAG is pursuing the strategy of increasingly offering services in niche markets. In the Building Construction & Civil Engineering segment, one such niche is the field of envi-

ronmental technology. In the past year, STRABAG therefore increased its stake in h s Energieanlagen GmbH, Vienna, (now: STRABAG Energietechnik GmbH & Co KG) a specialist in the field of sustainable power generation from biofuels from 43 % to 100 %. The group subsidiary Ed. Züblin AG, meanwhile, consolidated its presence in the niche market of fireproof construction through the acquisition of Germany's Behmann Group.

Selected Projects in the Building Construction & Civil Engineering Segment

Country	Project	Order Volume € Mln	Percentage of total group order bac klog %
Russia	Kautschuk residential complex	430	2.9 %
Russia	Balakovo steelworks	151	1.0 %
Poland	Galeria Katowicka	109	0.7 %
Germany	Vodafone Campus Düsseldorf	91	0.6 %
Poland	Torun bridge	90	0.6 %
Netherlands	Vertical City Rotterdam	85	0.6 %
Croatia	Zadar port, Lot II+IIIA	82	0.6 %
Germany	Forum Mittelrhein	80	0.5 %

Transportation Infrastructures

The Transportation Infrastructures segment covers asphalt and concrete road construction as well as any remaining construction activities associated with road construction, such as earth-moving, canalisation, railway construction, waterway construction, dyking, paving, the construction of sport and recreational facilities, safety and protective structures and the building of small bridges. The segment also includes the production of construction materials such as asphalt, concrete and aggregates.

	2010 € MLN.	chang e 2009–2010 %	2009 € Mln	chang e 2008–2009 %	20081) € Mln
Output volume	5,810	2 %	5,709	-9 %	6,274
Revenue	5,692	2 %	5,606	3 %	5,464
Order backlog	4,735	6 %	4,463	13 %	3,957
EBIT	184	28 %	143	-1 %	145
EBIT margin
as a % of revenue	3.2 %		2.6 %		2.7 %
Employees	30,059	0 %	29,920	-12 %	33,906

1) Presentation in accordance with the Annual Report 2009. Changes in segment structure starting from 2010 are not considered.

Output Volume Transportation Infrastructures

€ Mln	Output Volume 2010	Output Volume 2009	chang e %	Chang e absolute
Germany	2,340	2,461	-5 %	-121
Poland	1,078	725	49 %	353
Austria	730	787	-7 %	-57
Czech Republic	717	704	2 %	13
Hungary	270	416	-35 %	-146
Slovakia	183	172	7 %	11
Scandinavia	164	126	30 %	38
Romania	105	69	51 %	36
Switzerland	67	69	-3 %	-2
Croatia	53	85	-37 %	-32
Rest of Europe	32	22	45 %	10
Serbia	29	32	-9 %	-3
Slovenia	15	22	-31 %	-7
Benelux	9	2	394 %	7
Bulgaria	7	8	-12 %	-1
Italy	5	5	0 %	0
Asia	2	2	0 %	0
Africa	2	1	100 %	1
Middle East	2	0	n.a.	2
Russia	1	1	0 %	0
Output volume total	5,810	5,708	2 %	102
thereof CEE	2,459	2,235	10 %	224

Output Volume, Revenue and Result

With € 5,809.94 million, the output volume of the Transportation Infrastructures segment grew slightly in the 2010 financial year. The boom in the Polish construction sector compensated for declines due in part to inclement weather in Germany, Austria and Hungary.

The revenue showed a similar development to the output volume, while the earnings before interest and taxes (EBIT) grew by 28 % to € 183.58 million. This higherthan-average growth of results and of the EBIT margin from 2.6 % to 3.2 % was possible despite the pressure in the Hungarian transportation infrastructures segment and the high write-downs for newly acquired railway construction equipment. This is largely thanks to the positive business development in Poland.

Order Backlog

Appreciable growth was registered in the order backlog, which grew by 6 % to € 4,735.39 million. Two markets were mainly responsible for this growth. Firstly, STRABAG continued its expansion in northern European markets. Group subsidiaries were awarded the contract to plan, expand and renovate the Täby Centrum shopping centre in Stockholm, Sweden. The volume of the order is in the triple-digit million euros. Because of the organisational history, the project is being carried out in the Transportation Infrastructures segment despite its nature as a building project.

Secondly, first successes can be seen in Romania from the state infrastructure investment programmes, which the national government had previously delayed. A STRABAG consortium was awarded the contract for the rehabilitation of national road DN 67B with a total order volume of € 89 million. STRABAG's share amounts to € 62 million (70 %). In November, the company added a further Romanian road construction order to its books: the construction of 33 km of motorway between Deva and Orăştie. The volume of the order amounts to € 178 million, of which 85 % is STRABAG's share.

Further new orders were registered in Poland, although without the same dynamism as earlier. The STRABAG Group was awarded the € 260 million contract to build the 36.5 km section of the S7 Expressway between Kalsk and Miłomłyn and will also build a section of the bypass around the town of Pabianice for € 102 million.

The field of construction materials can also report a large order. While the construction of the Koralm Tunnel in Austria falls under the Special Divisions & Concessions segment, the concrete supplies for € 50 million are handled internally by the construction materials team.

Employees

With 30,059 persons, the employee levels of the segments remained nearly unchanged from the year before. The high order backlog in Poland required the hiring of over 1,000 additional staff in that country. In most other countries, with the exception of northern Europe, the employee levels were reduced.

Outlook

The STRABAG Group aims to increase its output in the Transportation Infrastructures segment by a few percent in the 2011 financial year. The forecast published by the company in November 2010 thus remains unchanged. The output volume and the result are influenced by the following developments and framework conditions:

As reported, French construction materials manufacturer Lafarge and STRABAG in May 2010 agreed to a strategic partnership to bundle their cement activities in several Central European countries. Operations were planned to begin on 1 January 2011, but the cartel authorities did not approve the transaction until February 2011.

In the area of mobile construction materials, STRABAG sees output growth for the group resulting from new large-scale projects. In the areas of asphalt, stone/gravel and concrete, however, the traditional country-wide business must still be classified as difficult. The price level remains largely low, despite a regional market recovery.

In road construction, STRABAG continues to focus on the expansion in northern European markets in response to the declining or already weak level of public-sector tenders in the core markets of Austria and Germany as well as the generally low prices. In the Czech Republic, an important market for transportation infrastructures, no larger tenders for construction lots are planned by the public sector in 2011, and projects which have already been awarded have been suspended. A further significant reduction in output and result can therefore be expected in this market.

In addition to the classic transportation infrastructures business, track and railway construction is becoming increasingly important too. In Hungary, STRABAG is participating in several tenders in this area. Even in the Czech Republic, railway contracts worth CZK 10-20 billion (€ 400-800 million) are expected to be tendered in 2011. In 2010, the company successfully entered this business field in Austria. Still, as was the case in Germany the year before, high start-up costs can be expected here for the procurement of large track construction equipment.

Selected Projects in the Transportation Infrastructures Segment

Country	Project	Order Volume € Mln	Percentage of total group order bac klog %
Sweden	Täby Centrum	150	1.0 %
Poland	S7 Kalsk-Milomlyn	149	1.0 %
Romania	Motorway Deva-Orastie	121	0.8 %
Poland	A2 Strykow-Konotopa	99	0.7 %
Czech Republic	D3 Tabor-Veseli	85	0.6 %
Denmark	M51 Kliplev-Sønderborg	65	0.4 %
Netherlands	A Lanes A15	62	0.4 %

Special Divisions & Concessions

The Special Divisions & Concessions segment includes, on the one hand, the field of tunnelling/specialty foundation engineering. On the other hand, the concessions business also represents a further important area of business, with global project development activities in Transportation Infrastructures in particular. The real estate business, which stretches from project development and planning to construction and operation and also includes the property and facility services business, completes the wide range of services of the segment and of the group. Finally, STRABAG bundles its services in non-European markets in this segment.

	2010 € MLN.	chang e 2009–2010 %	2009 € Mln	chang e 2008–2009 %	20081) € Mln
Output volume	2,518	-7 %	2,716	92 %	1,417
Revenue	2,672	-6 %	2,850	92 %	1,483
Order backlog	4,318	11 %	3,880	56 %	2,480
EBIT	-16	n.a.	34	-42 %	59
EBIT margin
as a % of revenue	-0.6 %		1.2 %		4.0 %
Employees	19,867	-4 %	20,678	300 %	5,174

Output Volume Special Divisions & Concessions

€ Mln	Output Volume 2010	Output Volume 2009	chang e %	Chang e absolute
Germany	1,100	1,188	-7 %	-88
Middle East	291	339	-14 %	-48
Austria	175	231	-24 %	-56
Americas	155	96	62 %	59
Switzerland	138	181	-24 %	-43
Africa	132	164	-20 %	-32
Italy	117	99	18 %	18
Asia	82	67	22 %	15
Scandinavia	72	44	64 %	28
Poland	70	46	54 %	24
Hungary	67	190	-65 %	-123
Benelux	46	24	89 %	22
Czech Republic	33	7	368 %	26
Rest of Europe	11	3	238 %	8
Slovakia	10	11	-7 %	-1
Russia	7	7	0 %	0
Romania	7	0	100 %	7
Croatia	2	3	-33 %	-1
Slovenia	2	1	100 %	1
Ireland	0	15	-100 %	-15
Output volume total	2,518	2,716	-7 %	-198
thereof CEE	199	265	-25 %	-66

Output Volume, Revenue and Result

The output volume of the segment in the 2010 financial year fell by 7 % to € 2,517.84 million. This decline is largely due to the lack of orders and the conclusion of largescale projects in tunnelling in the core markets of Austria, Germany, Switzerland and Hungary.

A significant reduction was registered in both the output volume and the revenue in this segment. At the same time, the earnings before interest and taxes (EBIT) moved from positive to negative territory. The negative EBIT of € -15.54 million was the result of high losses among projects in non-European markets as well as in tunnelling projects in Hungary and Sweden which could not be compensated for by the positive results in Poland and in the property and facility management business.

Order Backlog

The order backlog, by comparison, showed a clear plus of 11 % to € 4,318.36 million, thanks to a number of new large orders. STRABAG achieved significant results in the field of Public Private Partnerships (PPP): the company will build Denmark's first concession motorway, the M51 from Kliplev to Sønderborg, and will plan, build and operate the A15 motorway between Maasvlakte and Vaanplein in the Netherlands as part of a consortium.

In the field of PPP building construction, a STRABAG bidding consortium was awarded the contract to build and operate several schools in Mülheim, Germany. In this home market, STRABAG is also acting as project developer for the Donnersberger Höfe residential building project in Munich and the Forum Mittelrhein shopping centre in Koblenz.

STRABAG can also report of successful order acquisitions in non-European markets, which are bundled in the Special Divisions & Concessions segment regardless of the nature of the service, i.e. across all business units. In Abu Dhabi, one of the United Arab Emirates, a STRABAG subsidiary is expanding the Takreer Refinery in Ruwais. In Saudi Arabia, STRABAG was awarded the contract to build two warehouses at the industrial port of Jubail, a large industrial city on Saudi Arabia's Persian Gulf coast.

Two tunnelling orders top off the review of the segment. In October 2010, STRABAG signed a contract with client ÖBB Infrastruktur AG for Austria's largest construction order, Lot 2 of the Koralm Tunnel, with a volume of € 570 million. Of this amount, the STRABAG Group's share is 85 %. The company also landed a smaller order worth around € 59 million with the Küblis bypass tunnel in the Swiss canton of Grisons.

Employees

The workforce level fell by 4 % to 19,867 employees. A significant reduction of more than 1,200 people in the Middle East and a further reduction in Hungary and Austria must be mentioned in this regard. In the home market of Germany, in comparison, the employee level grew by more than 800 people as a result of acquisitions.

Outlook

The Special Divisions & Concessions segment would like to increase its output in the 2011 financial year by slightly more than 10 % to € 2.8 billion. As the segment furnishes quite diverse services, the outlook on results must be made differentiated according to the individual areas:

STRABAG's Project Development Building Construction business is seeing the first signs of a recovery of the real estate market in Germany. Last year, STRABAG sold several commercial properties at attractive conditions, allowing the business field to continue to focus on commercial real estate in the mid-double-digit million euro range. STRABAG Project Development has also been active in the development of apartment buildings, i.e. residential properties for global investors since 2010. This business is to be expanded geographically to the countries of Central and Eastern Europe.

The PPP Transportation Infrastructures business is developing in a satisfactory manner. Exceptions are Hungary and the countries of South-East Europe where the conditions for concession models and their financing are proving to be difficult.

The same is true for tunnelling, which, in response to the modest market situation in South-East Europe, but also in Austria and Switzerland, is shifting its contract acquisition efforts onto international large-scale projects both within as well as outside of the core markets. Bids are currently being prepared in northern Europe and in North Africa. In view of the unrest in the latter region, however, STRABAG is currently taking a wait-and-see approach and has temporarily suspended acquisitions for new projects.

The result in Property and Facility Services in the past financial year was above that of the previous year, thanks to increased productivity and savings in structural costs. A higher output is expected for 2011, although STRABAG is still fighting price pressure in Germany. The effect on the result can only partially be compensated by a higher volume of orders. To be able to offer clients a broader range of services, STRABAG Property and Facility Services acquired German building cleaning company Rimex in 2010 and expanded its portfolio with the addition of infrastructure facility management. The company succeeded in expanding geographically with the acquisition of the Czech Republic's ECM Facility a.s.

Country	Project	Order Volume € Mln	Percentage of total group order bac klog %
Austria	Koralm Tunnel 2	412	2.8 %
Poland	A2 Segment II, Tunnelling & Concession	310	2.1 %
Italy	Val di Chienti	307	2.1 %
Canada	Niagara Tunnel	233	1.6 %
India	Rohtang Pass Highway Tunnel Lot 1	133	0.9 %
Netherlands	A Lanes A15, Bridges	110	0.7 %
United Arab Emirates	Takreer Non Process Building Ruwais	75	0.5 %

selected projects in the special divisions & consessions segment

RISK MANAGEMENT

The STRABAG Group is subject to a number of risks in the course of its business activities. These risks are identified and assessed using an active risk management system and dealt with using an appropriate risk policy.

The group's goals are defined at all company levels. This was a prerequisite to setting up processes for the timely identification of potential risks standing in the way of the achievement of company objectives. The organisation of STRABAG's risk management builds on project-related jobsite and acquisitions controlling, supplemented by the higher-level assessment and steering management. The

External Risks

risk controlling process includes a certified quality management system, internal group guidelines for the workflow in the operating units, a central administration, controlling, auditing and contract management. Through the establishment of company-wide quality standards in quotation processing and supplemental services management, the centrally organised contract management department can better assert claims for outstanding debt.

The group's internal risk report defines the following central risk groups:

The entire construction industry is subject to cyclical fluctuations and reacts to varying degrees depending on region and sector. Overall economic growth, development of the construction markets, the competitive situation, the conditions on the capital markets and technological changes in construction can all result in risks. These risks are continually observed and monitored by the central departments and operating units. Changes in external risks lead to adjustments in STRABAG's organisation, market presence and range of services as well as the adaptati-

on of strategic and operating planning. STRABAG further responds to market risk with geographic and productrelated diversification in order to keep the influence on the company's success exerted by an individual market or by the demand for certain services as low as possible. To avoid bearing the entire risk of rising prices by itself, STRABAG makes efforts at signing cost escalation clauses and "cost-plus-fee" contracts in which the client pays a previously agreed margin on the costs of the project.

Operating Risks

The operating risks primarily include the complex risks of project selection and execution. STRABAG keeps acquisition lists in order to review the project choice. Business transactions requiring consent are reviewed and approved by business unit and sub-division managers or by division managers according to internal rules of procedure. Bids of € 2 million or more, depended on their risk profile, must be analysed by cross-segmental commissions and reviewed for their technical and economic

Financial Risks

feasibility. Cost accounting and expense allocation guidelines have been set up to assure a uniform process of job costing and to establish a performance profile at our construction sites. Project execution is managed by the construction team on site and controlled by monthly target/performance comparisons; at the same time, our central controlling provides constant commercial backing, ensuring that risks of individual projects do not endanger the continuance of the company.

Under financial risks, STRABAG understands risks in financial matters and in accounting, including instances of manipulation. Special attention is paid to our liquidity and accounting receivable management, which is secured through constant financial planning and daily status reports. Compliance with internal commercial guidelines is guaranteed by the central accounting and controlling departments, which are also responsible for internal reporting and the periodic planning process.

Risks from possible instances of manipulation (acceptance of advantages, fraud, deception or other infringements of the law) are monitored by all business areas in general and by the internal audit department in particular. STRABAG last commissioned PwC Wirtschaftsprüfung GmbH in 2007 to review and assess the group's compliance systems and the activities designed to combat corruption and unethical behaviour. The results were presented to the management board of STRABAG SE and the auditors' recommendations were passed on to the relevant departments for implementation.

In order to convey STRABAG's values and principles, the group drew up its Code of Ethics and internal Compliance Guidelines in 2007. The values and principles contained within these documents are reflected in the guidelines and instructions of the STRABAG companies and divisions. Compliance with these values and principles is expected not only from the members of the management and supervisory boards as well as from other managementlevel employees but from all group employees. The Compliance Guidelines and the Code of Ethics are designed to guarantee honest and ethical business practices. The Code of Ethics is available for download at www.strabag. com -> STRABAG SE -> Code of Ethics.

Organisational Risks

Risks concerning the design of personnel contracts are covered by the central human resource administration with the support of a specialised database. The design

Personnel risks

Past experience has shown that having a highly qualified and motivated workforce is an important factor in competition. In order to properly assess the potential of employees, STRABAG uses an IT-supported aptitude diagnostics process, the so-called behaviour profile analysis. and infrastructure of the IT landscape (hardware and software) is the responsibility of the central IT department, controlled by the international IT steering committee.

In subsequent feedback talks and employee appraisal interviews, employees and their supervisors analyse the results and agree on specific training and further education measures.

Investment risks

STRABAG can exert influence on the management of associated companies through its shareholder position and, if applicable, any existing advisory functions. The shares in asphalt and concrete mixing companies usually involve minority holdings, which is typical for the sector.

Political Risk

The group also operates in countries which are currently experiencing political instability. Interruptions of construction activity, restrictions on ownership interests of foreign With these companies, economies of scope are at the fore. Detailed information regarding interest risk, currency risk, credit risk and liquidity risk can be found in the Notes under point 26 Financial Instruments.

investors, and even dispossession or expropriations could be the consequence of political changes which could have an impact on the group's financial structure.

A review of the current risk situation reveals that the reporting period shows no risks which jeopardised the company's existence, nor were there any visible future risks.

Report on key features of the internal control and risk management systems in relation to the financial reporting process

Introduction

The control structure as defined by the Committee of Sponsoring Organisations of the Treadway Commission (COSO) provides the basis for the description of the key features of the internal control and risk management systems. The COSO framework consists of five related components: control environment, risk assessment, control activities, information and communication, and monitoring.

The aim of the internal control system is to support management in such a way that it is capable of assuring internal controls in relation to financial reporting which are effective and which are improved on an ongoing basis. The system is geared to the compliance with rules and regulations and to creating conditions which are conducive to performing specific controls in key accounting processes.

Control environment

The corporate culture determines the control environment in which management and employees operate.

STRABAG is constantly working to improve its communication and to convey its corporate values as defined in the STRABAG Code of Ethics in order to guarantee moral standards, ethics and integrity within the company and in our dealings with others.

The implementation of the internal control system in relation to the financial reporting process is done on the basis of internal rules and guidelines. Responsibilities for internal control were adapted to fit the corporate organisation.

The internal audit department carries out periodic, unannounced inspections of all relevant business units as part of its responsibility for monitoring compliance with the law and corporate guidelines in the technical and commercial areas. The internal audit department also monitors the effectiveness of the compliance organisation. During these inspections, the internal audit department analyses the legality and correctness of individual actions. The internal audit department also conducts regular, independent reviews of compliance with internal guidelines in the area of accounting. The head of the internal audit department reports directly to the CEO.

Risk assessment

The management identifies and monitors risks relating to the financial reporting process, with a focus on those risks that are typically considered to be material.

The preparation of the financial statements requires regular forecasts, with the inherent risk that the actual future development will deviate from the forecast. This especially affects the following matters/items of the consolidated financial statements: assessment of unfinished construction projects, recognition and measurement of provisions (including social capital), the outcome of legal disputes, the collectability of receivables as well as the recoverability of investments and goodwill. In individual cases, external experts are called in or publicly available sources are considered in order to minimise the risk of a false assessment.

Control Activities

All control activities are applied in the current business process to ensure that errors or deviations in financial reporting are prevented or detected and subsequently corrected. The control activities range from a management review of the period results to specific monitoring of accounts to the analysis of ongoing accounting processes.

It is the responsibility of the management to design the levels of hierarchy in such a way that an activity and the control of that activity are not performed by the same person ("four-eyes" principle).

IT security control activities represent a cornerstone of the internal control system. The separation of sensitive activities is supported by a restrictive approach to IT access authorisation. For its accounting and financial reporting, the company mainly uses self-developed software which reflects the unique features of the construction sector. The effectiveness of the financial reporting system is further assured through automated IT controls included in the system.

Information and Communication

The management regularly updates the rules and regulations for financial reporting and communicates them to all employees concerned. Regular discussions regarding the financial reporting and the rules and regulations in this context take place in various committees. These committees are composed of the corporate management as well as the department head and senior staff from the accounting department. The committee''s work aims, amongst others, at guaranteeing compliance with accounting rules and regulations and identifying and communicating weak points and potential areas for improvement in the financial reporting process. Accounting employees receive regular training regarding new methods of national and international financial reporting in order to identify risks of unintended misreporting at an early stage.

Monitoring

The management and supervisory boards bear responsibility for the ongoing company-wide monitoring. Additionally, the remaining management levels – all the way to the department heads – are responsible for the monitoring of their respective areas of responsibility. Controls and plausibility checks are carried out at regular intervals. The internal audit department is also involved in the monitoring process.

The top management receives monthly summary financial reports on the development of the output volume, the results of the respective segments and countries, and the liquidity. Financial statements to be published are submitted for final appraisal by the senior accounting staff and the commercial management board members before they are passed on to the audit committee of the supervisory board.

Employees

In the past financial year, STRABAG employed an average of 73,600 employees, of which 32,053 were whitecollar and 41,547 blue-collar workers. In the Transportation Infrastructures segment, the number of employees remained nearly stable at about 30,000; in the Building Construction & Civil Engineering segment, the employee level fell by 7 % to about 18,300; in the Special Divisions & Concessions segment, the number of employees shrank by 4 % to about 19,900.

To assure effective, long-term personnel development, STRABAG has at its disposal a number of centrally standardised programmes and IT-supported tools and manages and monitors their application (e.g. applicant database, training database, employee database, aptitude diagnostics analysis, group academy, trainee programme). The operating management employees, as human resource decision-makers, make use of these during the regular employee appraisal interview as a central management instrument to agree on employee objectives that are targeted to the employee's specific field and career and which are in line with their personal skills and qualifications. In the recruitment process, the management is assisted by personnel representatives in the individual countries using the same aforementioned tools and instruments.

Research and Development

For a long time, cost optimisation was seen as a strategic guiding principle for competitiveness in the building business. But building requires a broad spectrum of technologies and know-how in order to come up with technically convincing solutions. The group specifically promotes all those innovation activities which help projects to be executed more efficiently and with a higher level of quality. The aim is to implement research and development projects in cooperation with the operating divisions in order to more quickly bring additional knowhow to the construction site. Countless interdisciplinary development projects are ongoing every year.

Zentrale Technik (ZT), the group's central technical department, bundles the group's technical know-how and is in overall charge during the acquisition, planning and implementation of research and development projects. Organised as a central division with over 630 highly qualified employees at 15 locations, ZT reports directly to the CEO. The department provides services for the groupwide support of the operating units in the areas of tunnelling and civil engineering, construction engineering and turnkey construction. The range of services covers the entire construction process, from the early acquisitions phase and bids processing to execution planning and site management. Research and development activities include the areas of building and construction physics, software, information & communication technology, energy, construction materials technology, civil engineering and tunnelling, transportation infrastructures and safety. ZT also fosters international innovation networks.

As a technology leader in all areas of turnkey construction, STRABAG emphasises sustainable construction that requires comprehensive solutions, with a special focus on energy efficiency in the building life cycle. As a logical consequence of this development, the group management has decided to expand its life cycle assessment project to include all group products and processes. This will serve both to address increasing customer demands for sustainability and to better identify the efficiency potential as regards resource needs in general and energy needs in particular.

A central topic for the innovation activities is that of renewable energy. One goal is to offer the turnkey construction of offshore wind power facilities. The building application for the production sites has already been filed, the project schedule is currently in planning, and full-scale stability trials are currently underway on the behaviour of flat foundations under rough offshore conditions. Projects are also under development in the field of storage technologies to mitigate the natural fluctuations in electricity and heat generation from renewable sources. Other projects include pilot tidal power facilities or ways of capturing geothermal heat during machine tunnelling.

In traditional building construction, some of the highrises built in recent years show how optimisations in construction and building materials are giving planners and estimators a new sense of flexibility. Methods are also being developed to better understand material ageing using state-of-the-art sensor technologies.

A building's equipment and services are decisive factors for the efficiency of its operations and the quality of the indoor climate. Relevant projects carried out in the reporting year include thermally activated building systems which operate depending on weather forecasts, as well as building simulations and energy needs analyses. The aim and content of these projects is to achieve farreaching optimisations regarding the operational energy needs while maximising the comfort of the indoor climate and increasing planning security. Examples include the analysis of predictive controls for thermally activated building systems using weather forecast data and simulations to analyse the thermal behaviour of and light conditions in buildings.

A great deal of attention has recently been given to the development of "5D planning" in construction. 5D is the group's Building Information Model (BIM), which stands for the model-based, integrative work of all project participants across all project phases. This way of working is currently being integrated into the ARRIBA estimation software with the aim of expanding ARRIBA, which will then be called iTWO, through the addition of construction operation processes and graphic functions. In the year under report, this new generation of the estimation software was used to realise models for construction shells and to determine quantities in the Building Construction & Civil Engineering segment.

TPA Gesellschaft für Qualitätssicherung und Innovation (TPA Company for Quality Assurance and Innovation) is STRABAG's competence centre for quality management. Its activities include research and development related to building materials production, as well as materials inspections, job safety, and environment- and waste-related matters.

Together with the management of the operating units, ZT and TPA, as internal competence centres, have as their goal the extension of the group's competitive advantage through technical and high-quality solutions while sustaining the natural resources at the same time.

The STRABAG Group's EFKON AG subsidiary provides the group with expertise in the research and development of intelligent transportation systems in general and electronic toll collection solutions in particular. In recent years, EFKON has engaged in some very successful activities in the field of Car2Car communications, especially as a result of its cooperation in EU research projects. Based on the new global ISO standard known as CALM, EFKON developed a worldwide unique microchip for intelligent infrared communications between moving cars.

In the field of development, CEN microwave technology was further developed in addition to the key technologies

of the existing toll solutions (satellite and active infrared). Another focus of the activities is on toll enforcement. Developments include a new product to help the Austrian motorway authority ASFINAG automatically enforce toll stickers in Austria, as well as a portable DSRC-based toll monitoring unit to enforce the toll for trucks on German motorways.

EFKON's development activities also focused on the expansion and adaptation of tolling technologies and products in view of the upcoming European Electronic Toll System (EETS), which will be implemented stepwise from 2013 to allow continuous tolling with a single device from North Cape all the way to Sicily. Further developments in the field of high-performance video technology will also allow simple, mobile or stationary toll enforcement in moving traffic, thus directly and indirectly increasing toll income and fairness.

During the 2010 financial year, the STRABAG Group spent about € 14 million on research, development and innovation activities.

Environment

The STRABAG Group invests in the research and development of sustainable construction materials and innovative technologies in various areas of the company.

The group's building logistics and transport unit (BLT) sees to the reliable and economic provision of all operating areas and service companies with construction materials and equipment. Efficient planning processes and resource use helps to minimise waste, leading to cost reduction and lower emissions. The group's railway transport company allows STRABAG to shift the transport of construction material and equipment from the road onto rail. In this way, STRABAG reduced its CO2 emissions by around 33,900 tonnes in 2010.

In the area of procurement, we strive for the efficient and responsible management of the supply chain with respect to economic, environmental and social opportunities. Particularly in view of sustainable building, STRABAG has committed itself to following even stricter guidelines for the procurement of materials and is focusing on certified environmentally-friendly construction materials. It is important for us that suppliers fulfil certain pre-defined criteria. We want to ensure a resource-friendly use of energy and raw materials in the preparation and delivery of our services. It is our goal that the materials used and the services delivered by us impact the environment as little as possible.

Innovations were also made in the field of construction itself. As part of a sustainable building initiative, STRABAG is committed to promoting the implementation of new environmental building standards. These include the efficient, resource-friendly use of energy in buildings and sustainable construction methods.

Material Use	2009	2008	chang e %
Fuel total	€ 178.19 million	€ 145.44 million	23 %
Natural and liquid gas	€ 24.89 million	€ 24.82 million	0 %
Heating oil	€ 14.80 million	€ 15.69 million	-6 %
Electricity	€ 47.72 million	€ 48.12 million	-1 %
Stone/Gravel	61.53 million tonnes	65.72 million tonnes	-6 %
Asphalt	13.25 million tonnes	15.13 million tonnes	-12 %
Concrete	5.12 million m³	5.24 million m³	-3 %

Disclosures Pursuant to Section 243a Para 1 UGB

• The share capital of STRABAG SE amounts to € 114,000,000 and consists of 114,000,000 fully paid-in, no-par value shares with a pro-rata value of € 1 per share of the share capital. 113,999,997 shares are bearer shares and are traded on the Prime Market Segment of the Vienna Stock Exchange. Three shares are registered shares. Each bearer share and each registered share accounts for one vote (one share – one vote). The nomination rights associated with registered shares No. 1 and No. 2 are described in more detail under Item 4. 1.
• The Haselsteiner Group (Haselsteiner Familien-Privatstiftung, Dr. Hans Peter Haselsteiner), the Raiffeisen Group (RAIFFEISEN-HOLDING NIEDERÖSTERREICH-WIEN reg.Gen.m.b.H, BLR-Baubeteiligungs GmbH, "Octavia" Holding GmbH), the UNIQA Group (UNIQA Versicherungen AG, UNIQA Beteiligungs-Holding GmbH, UNIQA Personenversicherung AG, UNIQA Erwerb von Beteiligungen Gesellschaft m.b.H., UNIQA Sachversicherung AG, Raiffeisen Versicherung AG) and Rasperia Trading Limited (controlled by Oleg Deripaska), as shareholders of STRABAG SE, have signed a syndicate agreement governing (1) nomination rights regarding the supervisory board, (2) the coordination of voting during the Annual General Meeting, (3) restriction on the transfer of shares and (4) joint development of the Russian market as a core market. The Haselsteiner Group, the Raiffeisen Group together with the UNIQA Group, and Rasperia Trading Limited each have the right to nominate two members of the supervisory board. The syndicate agreement also requires the syndicate partners to exercise their voting rights from syndicated shares unanimously at the Annual General Meeting of STRABAG SE. The syndicate agreement further foresees restrictions on the transfer of shares in the form of mutual pre-emptive rights as well as a minimum shareholding on the part of the syndicate partners. 2.
• To the knowledge of STRABAG SE, the following shareholders held a direct or indirect interest of at least 10 % of the share capital of STRABAG SE on 31 December 2010: 3.

Haselsteiner Familien-Privatstiftung	29.5 %
Raiffeisen-Holding Niederösterreich-Wien reg.Gen.m.b.H. (Raiffeisen Group)	15.5 %
UNIQA Versicherungen AG (UNIQA Group)	15.0 %
Rasperia Trading Limited	17.0 %

The remaining shares of the share capital of STRABAG SE, amounting to 23 % of the share capital, are in free float. In addition to its 17 % interest, core shareholder Rasperia Trading Limited also holds an option, valid until 15 July 2014, to buy a further 8 % of STRABAG SE from the other core shareholders mentioned above.

• Three shares are as mentioned under Item 1 registered shares entered in the shareholder register. Registered shares No. 1 and No. 3 are held by the Haselsteiner Group and registered share No. 2 is held by Rasperia Trading Limited. Registered shares No. 1 and No. 2 allow their bearers to nominate a member each to the supervisory board of STRABAG SE. 4.
• No employee stock option programmes exist. 5.
• No further regulations exist beyond Items 2 and 4 regarding the nomination and recall of members of the management and supervisory boards or regarding changes to the Articles of Association which do not result directly from relevant law and legislation. 6.
• The management board of STRABAG SE was authorised by resolution of the 6th Annual General Meeting of 18 June 2010, in accordance with Sec 65 Para 1 No 8 and Para 1a and 1b of the Austrian Stock Corporation Act (AktG), to acquire bearer or registered no-par shares of the company on the stock market or over the counter to the extent of up to 10 % of the share capital during a period of twelve months from the day of the resolution at a minimum price per share of EUR 1 and a maximum price per share of EUR 34. The purpose of the acquisition may not be to trade with own shares. The authorisation can be exercised in full or in part or in several partial amounts for one or several purposes by the company, a subsidiary (Sec 228 Para 3 UGB) or third parties acting on behalf of the company. The management board can decide to acquire shares on the stock exchange but must inform the supervisory board following decision to do so. Over-the-counter purchases require prior approval by the supervisory board. The management board was further authorised, in accordance with Sec 65 Para 1b AktG, for a period of five years from this resolution, to sell or assign its own shares, with approval by the supervisory board, in a manner other than on the stock market or through a public tender, to the exclusion of the shareholders' buyback rights (subscription rights), and to determine the conditions of sale. The authorisation can be exercised in full or in part or in several partial amounts for one or several purposes by the company, a subsidiary (Sec 228 Para 3 UGB) or third parties acting on behalf of the company. At the same time, the existing authorisation to buy back own shares as per resolution by the Annual General Meeting of 19 June 2009 was cancelled. 7.
• There exist no significant agreements to which STRABAG SE is party and which would become effective, change or end due to a change of ownership in STRABAG SE following a takeover offer. 8.
• No compensation agreements exist between STRABAG SE and its management and supervisory board members or employees in the event of a public takeover offer. 9.

Supporting INFORMATION

At the beginning of March 2009, an accident occurred during underground construction at the South Lot for the North-South urban metro line in Cologne, resulting in the collapse of the Historical Archive of the City of Cologne and significant portions of two neighbouring buildings. Debris collapsed into a hole which opened next to the North-South construction site at the Waidmarkt crossover junction. Two people were trapped under the rubble, and rescuers were only able to recover their bodies.

Construction is being carried out by a joint venture (JV) of Bilfinger Berger AG, Wayss & Freytag Ingenieurbau AG and our company. The JV is led by Bilfinger Berger AG on the technical side and by Wayss & Freytag Ingenieurbau AG on the commercial side. Our company holds a 33.3 % interest in the JV.

The cause of the collapse remains unknown. The public prosecutor's office began an investigation against unknown perpetrators in March 2009. Independent proceedings for the taking of evidence are being conducted at the District Court in Cologne. The court-appointed expert is still in the investigation phase.

As a result of investigations at other construction sites for the North-South metro line, in particular involving Heumarkt station, the construction supervision of the JV and of the Cologne Transport Authority (KVB) have been the object of public criticism since the beginning of 2010. In response to certain irregularities, the public prosecutor's office is investigating against members of the JV. The prosecuting authorities have said that, at this time, there are no indications that these investigations are related to the accident of March 2009. An intensive investigation of the construction sites concerned by the JV and by experts has revealed no problems which could cast doubt on safety. At the end of 2010, the public prosecutor's office announced the finding that missing steel bars did not lead to the collapse.

We continue to believe that the incident will not result in significant damages for the company.

Related Parties

Business transactions with related parties are described in item 28 of the Notes

Outlook and Objectives

"DETAILS as to the

In contrast to the economy as a whole, a decline was registered once more in the European construction sector in 2010. As a result of the overall economic recovery, which was reflected in a positive gross domestic product (GDP) in 2010, slight growth is first expected in 2011, with accelerated growth in 2012. Both the GDP and the construction volume developed quite differently in the individual markets of Western and Eastern Europe. While the construction output volume in Western Europe is recovering only slowly and will not enter positive territory until 2012, the construction industry in Eastern Europe has fared better throughout the economic crisis thanks to the booming Polish market. Particularly the continued need to address infrastructure deficiencies is proving to be a factor driving further growth in the region.

In the past financial year, the European construction sector benefited from the state economic stimulus programmes that provided investments for public-sector infrastructure projects such as the construction of roads and educational facili-

ties. As the stimulus programmes were replaced by austerity packages at the end of the year, as was the case in STRABAG's home market of Germany, the Building Construction & Civil Engineering segment, which relies mainly on private clients, will be of greater importance in the future.

This again shows the advantages of the STRABAG strategy. The geographical diversification of the activities and the broad product portfolio help compensate for the slowdown in certain markets through stronger engagement in other, more successful markets. To further diversify the business and spread the risk, STRABAG is expanding its activities in property and facility management as well as in niche markets such as railway and waterway construction.

On the basis of the expected market development and the secured order backlog (€ 14.7 billion at the end of 2010), STRABAG set its financial objectives for the coming years and, at its Capital Markets Day in November 2010, announced its business guidance until the year

1. The company expected a slight decline in output volume for 2010 from € 13.0 billion to € 12.9 billion. The actual output volume in the amount of € 12.8 billion was very close to the forecast. The company expects to raise the output volume by 5 % to € 13.5 billion in 2011 and strategy on pages 20–43"

by 1.5 % to € 13.7 billion in 2012.

STRABAG SE expected the adjusted earnings before interest and taxes (EBIT) for 2010 to reach € 280 million (2009: € 283 million; unadjusted, the EBIT would include a positive one-off effect from the Viamont acquisition in the amount of € 10.6 million). The actual adjusted earnings – amounting to € 288.35 million – were slightly higher than forecast. The EBIT margin of 2.3 % – calculated based on the output volume – will decrease to 2.2 % in the years to come for an EBIT of € 295 million in 2011 and € 300 million in 2012.

STRABAG expects the net interest income and the minority interest in earnings in 2010 and 2011 to remain at € -20 million and € 20-25 million, respectively. STRABAG raised its forecast for the tax rate from 27-28 % to approx. 30 % due in part to the fact that no full tax relief could be carried out for losses through the capitalisation of tax loss carryforward.

Events After the Reporting Period

The material events after the reporting period are described in item 31 of the Notes.

Auditor's Report

Report on the Consolidated Financial Statements

We have audited the accompanying consolidated financial statements of

STRABAG SE, Villach,

for the year from 1 January to 31 December 2010. These consolidated financial statements comprise the consolidated balance sheet as of 31 December 2010, the consolidated income statement/consolidated statement of comprehensive income, the consolidated cash flow statement and the consolidated statement of changes in equity for the year ended 31 December 2010 and a summary of significant accounting policies and other explanatory notes.

Management's Responsibility for the Consolidated Financial Statements and for the Accounting System

The company's management is responsible for the group accounting system and for the preparation and fair presentation of these consolidated financial statements in accordance with International Financial Reporting Standards (IFRSs) as adopted by the EU. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of the consolidated financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor's Responsibility and Description of Type and Scope of the Statutory Audit

Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with laws and regulations applicable in Austria and Austrian Standards on Auditing, as well as in accordance with International Standards on Auditing, issued by the International Auditing and Assurance Standards Board (IAASB) of the International Federation of Accountants (IFAC). Those standards require that we comply with professional guidelines and that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the group's preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the group's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

Our audit did not give rise to any objections. In our opinion, which is based on the results of our audit, the consolidated financial statements comply with legal requirements and give a true and fair view of the financial position of the group as of 31 December 2010 and of its financial performance and its cash flows for the year from 1 January to 31 December 2010 in accordance with International Financial Reporting Standards (IFRSs) as adopted by the EU.

Report on the Management Report for the Group

Pursuant to statutory provisions, the management report for the group is to be audited as to whether it is consistent with the consolidated financial statements and as to whether the other disclosures are not misleading with respect to the company's position. The auditor's report also has to contain a statement as to whether the management report for the group is consistent with the consolidated financial statements and whether the disclosures pursuant to Section 243a UGB (Austrian Commercial Code) are appropriate.

In our opinion, the management report for the group is consistent with the consolidated financial statements. The disclosures pursuant to Section 243a UGB (Austrian Commercial Code) are appropriate.

Linz, 8 April 2011

KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft

Mag. Ernst Pichler Wirtschaftsprüfer

Mag. Peter Humer Wirtschaftsprüfer

(Austrian Chartered Accountants)

This report is a translation of the original report in German, which is solely valid.

Publication of the consolidated financial statements together with our auditor's opinion may only be made if the consolidated financial statements and the management report are identical with the audited version attached to this report. Section 281 paragraph 2 UGB (Austrian Commercial Code) applies.

individual financial statements

BALANCE SHEET FOR THE YEAR ENDING 31. DECEMBER 2010

Assets	31.12.2010 €	31.12.2009 T€
A. Non-current assets:
I. Property, plant and equipment:
Other facilities, furniture and fixtures and office equipment	985,285.26	991
II. Financial assets:
1. Investments in subsidiaries	2,098,719,002.20	1,769,859
2. Loans to subsidiaries	12,185,156.78	12,185
3. Investments in participation companies	24,004,165.69	22,089
4. Other loans	4,171,607.41	4,037
	2,139,079,932.08	1,808,170
	2,140,065,217.34	1,809,161
B. Current Assets: I. Accounts receivable and other assets: 1. Trade receivables	946,313.77
2. Receivables from subsidiaries
		721
	948,077,920.33	1,337,280
3. Receivables from participation companies	6,143,557.20	5,595
4. Other receivables and assets	100,432,809.41 1,055,600,600.71	26,466 1,370,063
II. Cash assets, including bank accounts	84,131.27	95
	1,055,684,731.98	1,370,158
C. Accruals and deferrals	3,485,784.00	139

equity and Liabili ties	31.12.2010 €	31.12.2009 T€
A. Equity:
I. Share capital	114,000,000.00	114,000
II. Capital reserves
1. Committed	2,148,047,129.96	2,148,047
2. Uncommitted	199,002,417.50	199,002
	2,347,049,547.46	2,347,050
III. Retained earnings
1. Legally required reserves	72,672.83	73
2. Voluntary reserves	128,770,613.65	124,457
	128,843,286.48	124,529
IV. Unappropriated net profit (thereof profit brought forward € 0;
previous year: T€ 0)	62,700,000.00	57,000
	2,652,592,833.94	2,642,579
B. Provisions: 1. Provisions for severance payments 2. Provisions for taxes 3. Other provisions	237,235.76 13,361,814.89 17,523,443.06	502 13,695 14,972
	31,122,493.71	29,169
C. Accounts payable:
1. Bonds	325,000,000.00	300,000
2. Bank borrowings	133,524,312.18	171,657
3. Trade payables
	1,892,347.87	1,545
4. Payables to subsidiaries	14,098,490.96	19,973
5. Payables to participation companies	0.00	9
6. Other payables (thereof taxes € 37,206.07; previous year: T€ 16;
thereof social security liabilities € 23,322.17; previous year: T€ 10)	41,005,254.66	14,525
	515,520,405.67	507,710
	3,199,235,733.32	3,179,458

INCOME STATEMTENT FOR THE 2010 FINANCIAL YEAR

	2010 €	2009 T€
1. Revenue (Sales)	56,315,773.17	48,333
2. Other operating income	8,895,299.81	2,474
3. Cost of materials and services:
a) Materials	-76,644.24	-39
b) Services	-18,249,015.00	-14,569
	-18,325,659.24	-14,609
4. Employee benefits (Personnel expense):
a) Salaries	-7,477,127.30	-7,648
b) Severance payments and contributions
to employee benefit plants	-548,496.81	-15
c) Statutory social security contributions, as well as
payroll-related and other mandatory contributions	-438,318.34	-295
d) Other social expenditure	-315,595.72	-250
	-8,779,538.17	-8,207
5. Depreciation	-5,677.76	-11
6. Other operating expenses:
a) Taxes other than those included in item 15	-158,533.29	-173
b) Miscellaneous	-27,268,913.47	-12,624
	-27,427,446.76	-12,797
7. Subtotal of items 1 through 6 (operating result)	10,672,751.05	15,183
8. Income from investments (thereof from subsidiaries
€ 92,593,259.80; previous year: T€ 199,417)	93,432,655.21	202,068
9. Other interest and similar income (thereof from
subsidiaries € 32,573,009.23; previous year: T€ 35,556)	33,124,294.74	36,776
10. Income from disposal and write-up of financial assets
and marketable securities	146,544.10	0
11. Expenses related to financial assets and marketable securities:
a) Depreciation of investments in subsidiaries	-35,190,543.55	-45,520
b) Depreciation (other)	-666,250.00	-3,112
c) Expenses from subsidiaries	-2,343,164.89	-548
d) Miscellaneous	-1,720,000.00	-3,289
	-39,919,958.44	-52,470
12. Interest and similar expenses (thereof from
subsidiaries € 3,192,309.61; previous year: T€ 2,191)	-26,723,599.82	-27,849
13. Subtotal of item 8 through 12 (financial result)	60,059,935.79	158,524
14. Results from ordinary business activities	70,732,686.84	173,707
15. Taxes on income and gains:
a) Income tax	-317,633.23	-1,560
b) Tax allocation	-3,401,034.13	-3,365
	-3,718,667.36	-4,925
16. Net income for the year	67,014,019.48	168,782
17. Changes in retained earnings (voluntary reserves)	-4,314,019.48	-111,782
18. Profit for the period	62,700,000.00	57,000

Notes to the 2010 Financial Statements of STRABAG SE, Villach

I. APPLICATION OF AUSTRIAN BUSINESS ENTERPRISE CODE

These 2010 financial statements were prepared in accordance with the Austrian Business Enterprise Code (UGB).

The income statement was prepared in report form using the nature of expense method.

Additional information was provided in the Notes as far as was necessary to ensure a true and fair presentation of the financial position, financial performance and cash-flows.

The company is the topmost parent company of the companies within the scope of consolidation of STRABAG SE, Villach. The consolidated financial statements are deposited with the Landes- als Handelsgericht Klagenfurt (District and Commercial Court Klagenfurt).

The company is governed by the legal framework which applies to a large corporation (Kapitalgesellschaft) as defined by Article 221 of the Austrian Business Enterprise Code (UGB).

II. ACCOUNTING POLICIES

The financial statements were prepared in accordance with the "principles of orderly accounting" and following the general norm of presenting a true and fair view of the financial position, financial performance and cash-flows.

The financial statements were prepared in conformity with the "principle of completeness".

The valuation premise adopted is that of a going concern.

Individual assets and liabilities were valued in accordance with the "principle of individual valuation".

The financial statements were prepared in accordance with the "principle of prudence" by only reporting profit which was realised on the balance sheet date.

All recognisable risks and impending losses which occurred in 2010 or an earlier financial year were taken into consideration.

The previously applied valuation method was kept.

Property, plant and equipment are valued at historical cost less accumulated depreciation.

Low-value assets are depreciated in full in the year in which they are acquired.

Extraordinary depreciation is undertaken where it is necessary to apply the lower value method.

Financial assets are valued at historical cost or a lesser value if one is attributable.

The company has not exercised its option to capitalise deferred taxes under Article 198 Paragraph 10 of the Austrian Business Enterprise Code.

Trade and other receivables are reported at nominal value. The valuation of foreign currency receivables follows the strict "lowest value principle".

Individual value adjustments are made for recognisable risks.

All recognisable risks and impending losses were taken into account during the calculation of provisions in accordance with the legal framework.

The provisions for severance payments were calculated using recognised actuarial principles, an interest rate of 4 % (Previous year: 4 %), and a retirement age of 62 for women (previous year: 62) and 62 for men (previous year: 62).

Liabilities are valued at the amount repayable. Foreign currency liabilities are valued in accordance with the "highest value principle".

III. NOTES TO THE BALANCE SHEET

NON-CURRENT ASSETS

The non-current assets are itemised and their changes in the year under report are recorded in the Statement of Changes in Non-current Assets. (Appendix 1 to the notes)

Due to long-term rentals, letting and leasing, the use of property, plant and equipment not shown in the balance sheet results in an obligation of € 6,073,244.28 (previous year: T€ 6,044) for the 2010 financial year. The sum of all obligations for the next five years is € 30,366,221.40 (previous year: T€ 30,222).

Information on investments can be found in the list of subsidiaries, associated companies and investments. (Appendix 2 to the notes)

TRADE AND OTHER RECEIVABLES

The following trade and other receivables have a remaining term of more than one year:

	31.12.2010 €	31.12.2009 T€
Receivables from subsidiaries	250,000,000.00	250,000
Other receivables and other assets	16,756,000.00	15,856
	266,756,000.00	265,856

All other reported trade and other receivables have a remaining term of up to one year.

Receivables from subsidiaries involve financing, routine clearing and the calculation of group and tax allocations.

The item "Other receivables and other assets" includes income of € 75,845.59 (previous year: T€ 66) not due to be received until after the balance sheet date.

EQUITY

The share capital amounts to € 114,000,000.00 (previous year: T€ 114,000) and is divided into 113,999,997 no-par bearer shares and three no-par registered shares.

Shares of STRABAG SE have traded in the Prime Market Segment of the Vienna Stock Exchange (Wiener Börse) since 19 October 2007 and were accepted for listing in the ATX on 22 October 2007.

The management board was authorised, with the approval of the supervisory board, to increase the share capital of the company by up to € 57,000,000 by 19 June 2014, in several tranches if necessary, by issuing up to 57,000,000 registered no-par bearer shares for cash or contributions in kind (approved capital).

The following resolutions were passed at the Annual General Meeting of 18 June 2010:

The existing authorisation to buy back own shares as per resolution by the Annual General Meeting of 19 June 2009 was cancelled.

The management board was authorised to acquire bearer or registered no-par shares of the company on the stock market or over the counter to the extent of up to 10 % of the share capital during a period of 12 months from the day of the resolution at a minimum price per share of € 1.00 and a maximum price per share of € 34.00. The purpose of the acquisition may not be to trade with own shares. The authorisation can be exercised in full or in part or in several partial amounts for one or several purposes by the company, a subsidiary or third parties acting on behalf of the company.

The management board can decide to acquire shares on the stock exchange but must inform the supervisory board following decision to do so. Over-the-counter purchases require prior approval by the supervisory board.

The management board was further authorised, for a period of five years from this resolution, to sell or assign its own shares, with approval by the supervisory board, in a manner other than on the stock market or through a public tender, to the exclusion of the shareholders' buyback rights (subscription rights), and to determine the conditions of sale. The authorisation can be exercised in full or in part or in several partial amounts for one or several purposes by the company, a subsidiary or third parties acting on behalf of the company.

PROVISIONS

Other provisions were made for profit sharing, investment risks, claims and legal and consulting fees.

ACCOUNTS PAYBLE

	Remaining term < one year €	Remaining term > one year €	Remaining term > five years €	book value €	Real Securities €
1. Bonds	75,00,000.00	250,000,000.00	0.00	325,000,000.00	0.00
Previous year in T€	75,000	225,000	0	300,000	0
2. Bank borrowings	43,524,312.18	90,000,000.00	0.00	133,524,312.18	0.00
Previous year in T€	46,657	125,000	0	171,657	0
3. Trade payables	1,892,347.87	0.00	0.00	1,892,347.87	0.00
Previous year in T€	1,545	0	0	1,545	0
4. Payables to subsidiaries	14,098,490.96	0.00	0.00	14,098,490.96	0.00
Previous year in T€	19,973	0	0	19,973	0
5. Payables to
participation companies	0.00	0.00	0.00	0.00	0.00
Previous year in T€	9	0	0	9	0
6. Other payables	36,484,333.92	4,520,920.74	0.00	41,005,254.66	0.00
Previous year in T€	10,182	4,344	0	14,525	0
		170,999,484.93 344,520,920.74		0.00 515,520,405.67	0.00
Previous year in T€	153,366	354,344	0	507,710	0

Payables to subsidiaries involve routine clearing, liabilities from cash-clearing as well as the clearing of tax allocation.

The item "Other payables" includes expenses of € 10,200,509.03 (previous year: T€ 9,114) which do not become due for payment until after the balance sheet date.

CONTINGENT LIABILITIES

The contingent liabilities which must be shown in the balance sheet in accordance with Article 199 of the Austrian Business Enterprise Code (UGB) involve exclusively guarantee and indemnity liabilities.

The contingent liabilities reported include € 89,105,460.68 (previous year: T€ 102,252) in contingent liabilities for affiliated companies.

OFF-BALANCE SHEET TRANSACTIONS

Performance bonds in the amount of € 217,804,964.52 (previous year: T€ 204,865) exist for construction projects of subsidiaries.

IV. NOTES TO THE INCOME STATEMENT

Revenue (Sales)

	2010 €	2009 T€
Domestic revenue	17,185,085.91	15,885
Foreign revenue	39,130,687.26	32,448
	56,315,773.17	48,333

EMPLOYEE BENEFITS (PERSONNEL EXPENSE)

The company employed on the average 7 employees during the year (previous year: 7 employees).

100% of the expenses for severance payments were recognised for management board members.

An amount of € 79,113.10 (previous year: T€ 8) for contributions to employee benefit plans is included in the severance payment expenses.

The salaries of the management board members in the 2010 financial year amounted to T€ 7,798 (previous year: T€ 8,669).

Supervisory board member salaries in the period under review amounted to € 135,000.00 (previous year: T€ 135).

OTHER OPERATING EXPENSE

The other operating expenses reported mainly include surety fees, legal and advisory costs, travel and advertising costs, insurance costs and other general administrative expenses.

TAXES ON INCOME AND GAINS

The amount for active deferred taxes pursuant to Article 198 Paragraph 10 of the Austrian Business Enterprise Code (UGB) which may be capitalised is € 0 (previous year: T€ 0) because there is no additional tax expense except the minimum tax due to the fiscal losses of the company.

The reported tax expenses involve tax allocations to group members and foreign tax expenses.

V. MISCELLANEOUS

The company is a group parent under Article 9 Paragraph 8 of the Austrian Corporate Income Tax Act (KStG) of 1988 as amended by BGB li180/2004. Tax adjustments (both positive and negative allocations) between the group parent and the company were arranged in the form of tax allocation agreements.

An agreement was concluded with BRVZ Bau- Rechen- u. Verwaltungszentrum Gesellschaft m.b.H., Spittal an der Drau, covering financial and management accounting, operating and cost accounting, payroll accounting, cash management, insurance management and facility management.

The members of the management and supervisory boards are listed separately. (Appendix 3 to the notes)

The expenses for the auditor, KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft, Linz, for the financial year amount to € 577,850.00 (previous year: T€ 582), of which € 55,000.00 (previous year: T€ 55) are for the audit of the financial statements, € 495,000.00 (previous year: T€ 490) for other audit services and € 27,850.00 (previous year: T€ 37) for miscellaneous services.

Villach, 8 April 2011

Board of Management

Dr. Hans Peter Haselsteiner Chairman of the Management Board Responsibilities for Central Staff Units, BMTI 01, BRVZ 02, TPA 04, BLT 05 Central Division and technical Responsibilities for Building Construction & Civil Engineering of Russia and Neighbouring Countries

Ing. Fritz Oberlerchner Vice Chairman Technical Responsibilities for Transportation Infrastructures

Dr. Thomas Birtel Commercial Responsibilities for Building Construction & Civil Engineering

Dr. Peter Krammer Technical Responsibilities for Building Construction & Civil Engineering (excluding Russia and Neighbouring Countries)

DI Siegfried Wanker Technical Responsibilities for Special Divisions & Concessions (since 1 January 2011)

Mag. Hannes Truntschnig Commercial Responsibilities for Transportation Infrastructures, Special Divisions & Concessions

STATEMENT OF CHANGES IN NON-CURRENT ASSETS AS OF 31 DECEMBER 2010

ACQUISITION AND PRODUCTION COSTS balance 1.1.2010 € Additions € Disposals € I. Tangible Assets: Other facilities, furniture and fixtures and office equipment 1,140,556.36 133.17 133.17 1,140,556.36 155,271.10 985,285.26 990,829.85 5,677.76 II. Financial Assets: 1. Investments in subsidiaries 1,869,113,044.23 365,420,031.67 1,369,201.30 2,233,163,874.60 134,444,872.40 2,098,719,002.20 1,769,858,715.38 35,190,543.55 2. Loans to subsidiaries 28,512,372.48 0.00 0.00 28,512,372.48 16,327,215.70 12,185,156.78 12,185,156.78 0.00 3. Investments in participation companies 30,055,435.99 2,580,988.70 0.00 32,636,424.69 8,632,259.00 24,004,165.69 22,089,426.99 666,250.00 4. Other loans 4,036,980.43 134,626.98 0.00 4,171,607.41 0.00 4,171,607.41 4,036,980.43 0.00 1,931,717,833.13 368,135,647.35 1,369,201.30 2,298,484,279.18 159,404,347.10 2,139,079,932.08 1,808,170,279.58 35,856,793.55 1,932,858,389.49 368,135,780.52 1,369,334.47 2,299,624,835.54 159,559,618.20 2,140,065,217.34 1,809,161,109.43 35,862,471.31

Deprecia tion for the period €	Carrying Val ues 31.12.2009 €	Carrying Val ues 31.12.2010 €	Acc umulated Deprecia tion €	balanc e 31.12.2010 €
5,677.76	990,829.85	985,285.26	155,271.10	1,140,556.36
35,190,543.55	1,769,858,715.38	2,098,719,002.20	134,444,872.40	2,233,163,874.60
0.00	12,185,156.78	12,185,156.78	16,327,215.70	28,512,372.48
666,250.00	22,089,426.99	24,004,165.69	8,632,259.00	32,636,424.69
0.00	4,036,980.43	4,171,607.41	0.00	4,171,607.41
35,856,793.55	1,808,170,279.58	2,139,079,932.08	159,404,347.10	2,298,484,279.18
35,862,471.31	1,809,161,109.43	2,140,065,217.34	159,559,618.20	2,299,624,835.54

LIST OF PARTICIPATIONS (20.00 % Interest Minimum)

		Equity/ Negative	Result of the last
	Interest	Equity	financial year
Name and residenc e of the compan y	%	T€1)	T€2)
Investments in subsidiaries:
Adanti S.p.A, Bologna	100.00	6,780	-186
AKA-FinCo Zrt., Budapest	100.00	174)	-24)
AKA-HoldCo Zrt., Budapest	100.00	174)	-24)
Asphalt & Beton GmbH, Spittal an der Drau	100.00	-504	-444
"A-WAY Infrastrukturprojektentwicklungs- und
-betriebs GmbH", Spittal an der Drau	100.00	36,484	-1,773
Bau Holding Beteiligungs AG, Spittal an der Drau	65.00	268,191	14,436
Baukontor Gaaden Gesellschaft m.b.H., Gaaden	100.00	1,064	192
BHG Bitumen d.o.o. Beograd, Belgrad	100.00	140	17
BHG Sp. z o.o., Warschau	100.00	1,016	389
Bitunova Sp.z o.o., Warschau	40.00	2,073	846
Center Communication Systems GmbH, Wien	100.00	6,472	-873
CESTAR d.o.o., Slavonski Brod	74.90	1,276	-85
Chustskij Karier, Zakarpatska	95.96	298	-194
CLS Construction Legal Services GmbH, Köln	100.00	82	21
CLS Construction Legal Services GmbH, Wien	100.00	-324)	-204)
CLS Construction Services s.r.o., Bratislava	100.00	3)
CLS CONSTRUCTION SERVICES s.r.o., Prag	100.00	3)
CLS Kft., Budapest	100.00	50	32
CLS Legal Sp. z o.o., Nowy Tomysl	100.00	267	181
CROATIA ASFALT d.o.o., Zagreb	100.00	5)
Diabaswerk Saalfelden Gesellschaft m.b.H., Saalfelden	100.00	-2,715	-428
DRP, d.o.o., Ljubljana	100.00	3	-6
Ed. Züblin AG, Stuttgart	57.26	60,348	19,973
EFKON AG, Raaba	75.59	-11,840	-25,247
Egolf AG Strassen- und Tiefbau, Weinfelden	100.00	20,586	12,990
Errichtungsgesellschaft Strabag Slovensko s.r.o.,
Bratislava-Ruzinov	100.00	279	108
Facility Management Holding RF GmbH, Wien	51.00	3)
Flogopit d.o.o., Novi Beograd	100.00	91	-18
Frey & Götschi AG, Affoltern am Albis	100.00	409	128
FRISCHBETON s r.o. (vormals: Ilbau spol s r.o.), Prag	100.00	21,629	-3,542
GRADBENO PODJETJE IN KAMNOLOM GRASTO d.o.o.,
Ljubljana	99.85	4,329	563
h s energieanlagen gmbh & co kg, Wien	100.00	35	-2,343
ILBAU GmbH, Wien	100.00	77,544	0
Ilbau Liegenschaftsverwaltung GmbH, Dahlwitz-Hoppegarten	99.99	58,731	-58,319
Kamen-Ingrad gradnja i rudarstvo d.o.o. u likvidaciji, Zagreb	51.00	5)
Kamen-Ingrad Niskogradnja d.o.o., Pozega	51.00	5)
KAMENOLOMY CR s.r.o., Ostrava - Svinov	100.00	26,795	5,410
KMG - KLIPLEV MOTORWAY GROUP A/S, Kopenhagen	100.00	-373	351
Karlovarske silnice, a. s., Budejovice	100.00	2,419	-37
Klinik für Psychosomatik und psychiatrische
Rehabilitation GmbH, Spittal an der Drau	100.00	5)
LPRD (LESZCZYNSKIE PRZEDSIEBIORSTWO ROBOT
DROGOWO)-MOSTOWYCH Sp.z o.o., Leszno	57.29	7,118	391
M.A. d.o.o., Split	100.00	88	-1
Mazowieckie Asfalty Sp. z o.o., Warschau	100.00	-54)	-34)
Mikrobiologische Abfallbehandlungs GmbH, Schwadorf	51.00	1,6234)	-784)
Mineral Abbau GmbH, Spittal an der Drau	100.00	213	-358
Mineral IGM d.o.o., Zapuzane	100.00	-808	-917

1) According to § 224 Abs 3 UGB

2) Net income / loss of the year 3) New foundation (no financial statement of 31.12.2010) 5) No statement according to § 241 Abs 2 UGB

⁴⁾ Financial statements as of 31.12.2009

		Equity/ Negative	Result of the last
	Interest	Equity	financial year
Name and residenc e of the compan y	%	T€1)	T€2)
Investments in subsidiaries:
Mineral Kop doo Beograd, Belgrad	100.00	-189	-353
MINERAL ROM S.R.L., Brasov	26.87	-1,596	-283
Mobil Baustoffe GmbH, Gemeinde Reichenfels	100.00	-2,451	-2,423
Norsk Standardselskap 154 AS, Oslo	100.00	5)
NOSTRA Cement Kft., Budapest	100.00	247,298	2,304
Oden Anläggningsentreprenad AB, Stockholm	100.00	10,147	-8,369
Onezhskaya Mining Company LLC, Petrozavodsk	59.00	5)
OOO CLS Construction Legal Services, Moskau	100.00	85	85
Polski Asfalt Sp.z o.o., Wroclaw	100.00	13,752	1,182
Prottelith Produktionsgesellschaft mbH, Liebenfels	52.00	-2,3354)	-814)
PRZEDSIEBIORSTWO ROBOT DROGOWYCH
Sp.z o.o., W LIKWIDACJI, Choszczno	100.00	5)
SAT OOO, Moskau	51.00	1,766	59
SAT REABILITARE RECICLARE S.R.L., Cluj Napoca	100.00	-28	-29
SAT SANIRANJE cesta d.o.o., Zagreb	100.00	-350	11
SAT SLOVENSKO s.r.o., Bratislava	100.00	649	308
SAT Ukraine, Brovary	100.00	5)
S.C. ECODEPOTECH S.R.L., Ploiesti	51.00	3)
"SBS Strabag Bau Holding Service GmbH",
Spittal an der Drau	100.00	313,220	48,984
SF Bau vier GmbH, Wien	100.00	22	-7
STRABAG AG, Köln	74.80	355,283	49,290
STRABAG AG, Zürich	100.00	33,663	10,407
"Strabag Azerbaijan" L.L.C., Baku	100.00	9,283	6,906
STRABAG DOOEL Skopje, Skopje	100.00	5)
STRABAG Energietechnik GmbH, Wien	100.00	424)	-44)
STRABAG-HIDROINZENJERING d.o.o., Split	54.65	3,469	-878
STRABAG Infrastruktur Development, Moskau	100.00	-102	0
STRABAG Installations pour l´Environenment SARL,
Champagne	100.00	5)
STRABAG Invest GmbH, Wien	100.00	-564)	-334)
STRABAG Kaliningrad OOO, Kaliningrad	99.00	3)
"STRABAG" d.o.o. Podgorica, Podgorica	100.00	941	535
STRABAG Property and Facility Services a.s., Prag	100.00	3,277	340
STRABAG Real Estate GmbH, Köln	84.50	22,386	-6,371
Strabag RS d.o.o., Banja Luka	100.00	5)
STRABAG Scandinavia AB, Stockholm	100.00	390	-173
Strabag S.R.L., Chisinau	100.00	5)
STR Irodaház Kft., Budapest	100.00	3074)	-2834)
TOO BI-Strabag, Astana	60.00	5)
Trema Engineering 2 sh p.k., Tirana	51.00	4,837	-507
		5)
Treuhandbeteiligung MO	100.00
Viamont DSP a.s., Usti nad Labem	50.00	54,780	6,707
Zezelivskij karier TOW, Zezelev	99.35	1,241	21
Investments in participation companies:		5)
A-Lanes A15 Holding B.V., Nieuwegein	24.00
ASAMER Baustoff Holding Wien GmbH, Wien	20.00	5)
Asamer & Hufnagel Baustoff
Holding Wien GmbH & Co. KEG, Wien	20.00	5)
"Baltic Business Centre" Sp.z o.o., Gdynia	38.00	5)
DYWIDAG Verwaltungsgesellschaft mbH, München	50.00	5)
KBG Krankenhaus Beteiligungs GmbH, Wien	25.00	5)
Moser & C. SRL, Bruneck	50.00	5)
OOO "STRATON-Infrastruktura", Sotschi	50.00	5)
SRK Kliniken Beteiligungs GmbH, Wien	25.00	5)

		Equity/ Negative	Result of the last
Name and residenc e of the compan y	Interest %	Equity T€1)	financial year T€2)
Investments in participation companies:
Straktor Bau Aktien Gesellschaft, Kifisia	50.00	3)
Syrena Immobilien Holding Aktiengesellschaft,
Spittal an der Drau	50.00	3)
Ucka Asfalt d.o.o., Zagreb	25.00	3)

MANAGEMENT AND SUPERVISORY BOARD

Board of Management:

Dr. Hans Peter H a s e l s t e i n e r (Chairman) Ing. Fritz O b e r l e r c h n e r (Vice Chairman) Dr. Thomas B i r t e l Dipl.-Ing. Roland J u r e c k a (until 31.12.2010) Dr. Peter K r a m m e r Mag. Wolfgang M e r k i n g e r (until 31.8.2010) Mag. Hannes T r u n t s c h n i g Dipl.-Ing. Siegfried W a n k e r (since 1.1.2011)

Supervisory board:

Dr. Alfred G u s e n b a u e r (Chairman since 18.6.2010) Univ. Prof. DDr. Waldemar J u d (Chairman until 18.6.2010) Mag. Erwin H a m e s e d e r (Vice Chairman) Andrey E l i n s o n Mag. Kerstin G e l b m a n n (since 18.6.2010) Dr. Gerhard G r i b k o w s k y (until 18.6.2010) Dr. Gottfried W a n i t s c h e k Ing. Siegfried W o l f

Dipl.-Ing. Andreas B a t k e (works council) Miroslav C e r v e n y (works council) Magdolna P. G y u l a i n é (works council) Wolfgang K r e i s (works council) Gerhard S p r i n g e r (works council)

Group management report

Important Events

January

The STRABAG consortium KMG - Kliplev Motorway Group was awarded the tender for Denmark's first PPPproject. The consortium will plan and build 26 km of the M51 motorway from Kliplev to Sønderborg as well as 18 km of side roads and seven interchanges and will operate the road over a period of 26 years from completion. The total investment volume amounts to € 148 million.

STRABAG AG, Cologne, was hired by Flughafen Berlin-Schönefeld GmbH as general contractor to expand the apron and taxiway system of the German capital's new airport Berlin Brandenburg International (BBI). The project total amounts to € 57 million. Construction is expected to last until the middle of 2011.

February

STRABAG was awarded the contract to build the 36.5 km section of the S7 Expressway between Kalsk and Miłomłyn approx. 100 km northwest of Warsaw. Construction for the € 260 million contract began in March 2010 and is expected to end in July 2012. Construction will be carried out by the STRABAG subsidiaries STRABAG Sp. z o.o. and Hermann Kirchner Polska Sp. z.o.o., Poland.

The 100 % STRABAG subsidiary DYWIDAG Saudi Arabia Co. Ltd. was awarded the contract to build two warehouses at the industrial port of Jubail, a large industrial city on Saudi Arabia's Persian Gulf coast. The € 18 million project comprises the turnkey construction of two warehouses with surface areas of 27,000 m² and 37,000 m², an administration building, guard houses and reinforced storage sites for containers. The project is scheduled for completion in mid-2011. Also in Jubail, STRABAG will build a coker unit with a contract value of € 23 million.

March

STRABAG signed the contract to build the new Galeria Kaskada shopping centre in Szczecin, Poland. The total value of investment for the project amounts to € 190 million. The construction works commenced in March 2010 and the project is due to be finished in the autumn of 2011.

Serbian motorway company Putevi Srbije hired STRABAG for the full rehabilitation of the Gazela Bridge, the main motorway bridge over the river Sava. The bridge, which connects Novi Belgrade with Belgrade, is one of Europe's most important along the Pan-European transport corridor 10. Construction works began in early April and are scheduled to end in May 2012.

STRABAG subsidiary Ed. Züblin AG won the construction contract to build the high-rise project "De Rotterdam" in Rotterdam, Netherlands, valued at around € 170 million. The Züblin subsidiaries Züblin Nederland BV and STRABAG Belgium N.V., who have formed a joint venture, will execute the project. Completion is planned for the end of 2013.

STRABAG was awarded the tender to build the Küblis bypass tunnel in the Swiss canton of Grisons with a total value of approx. € 59 million. The contract for the 2.2 km tunnel includes the construction of the safety gallery and the management of the Schanielatobel disposal site located on the route of the bypass. Construction should be completed in November 2015 (excl. roadway). STRABAG has responsibility for the entire project.

April

STRABAG was assigned for the modernisation of the Kaiserstuhl power plant in the Swiss canton of Obwalden. The order is worth a total of approx. € 17.5 million. Construction began in June 2010 and is to be completed in December 2012. STRABAG's share is 100 %.

On 21 April 2010, the Port Authority of Zadar and STRABAG signed a contract for phase II of the new Gaženica ferry terminal at Zadar, Croatia. The contract is worth € 93 million and covers maritime structures, access roads and basic infrastructure of the new terminal. STRABAG will cooperate with local suppliers – as was the case during phase I of construction, carried out by a STRABAG consortium as well. This phase will be completed within 30 months.

May

STRABAG SE issued a five-year, € 100 million fixed-interest corporate bond with a coupon of 4.25 %. The issue price has been set at 100.976 %.

Lafarge, a French building materials manufacturer, and STRABAG concluded a strategic partnership to combine their cement activities in several countries of Central Europe. The two companies signed an agreement on 25 May 2010 creating the holding company Lafarge Cement CE Holding GmbH. The new company will have its headquarters in Austria. Lafarge will bring its cement plants at Mannersdorf and Retznei in Austria, Cížkovice in the Czech Republic and Trbovlje in Slovenia into the holding, while STRABAG will contribute the plant it is currently building in Pécs in Hungary. Lafarge then will hold a 70 % interest in the new company, while STRABAG will hold 30 %. Lafarge Cement CE Holding GmbH will have a total annual production capacity of 4.8 million tonnes of cement. The approval by the relevant cartel authorities was granted in February 2011.

JunE

STRABAG signed an agreement for the rehabilitation of national road DN 67B in Romania. The client is Romania's national road construction agency CNADNR SA. In a joint venture with two Romanian road construction companies, STRABAG will modernise 188.2 km of the national road between Scoarţa and Piteşti over a period of 36 months. The total value of the order is € 89 million, with STRABAG's share amounting to € 62 million (70 %).

In Abu Dhabi, STRABAG subsidiary Ed. Züblin AG will build the non-process buildings for the Takreer Refinery in Ruwais. The turnkey project, commissioned by the Abu Dhabi Oil Refining Company, comprises 17 buildings as well as access roads and extensive outdoor facilities on a total space of 205,273 m². Construction is expected to last 38 months. The total value of the order is € 94 million. The group's share amounts to 100 %.

A consortium led by STRABAG Real Estate GmbH was awarded the contract for a PPP from the city of Mülheim an der Ruhr, Germany. The company was chosen in a multistage tender process to handle the redevelopment, partial new development and operation of the schools Karl-Ziegler-Gymnasium, Luisenschule and Willy-Brandt-Gesamtschule as well as the operation of the Gemeinschaftsgrundschule Styrum for a period of 25 years. The contract volume amounts to € 160 million, of which € 52 million is for the construction and modernisation of the buildings. Construction should be completed in December 2012.

Supervisory board elections took place on 18 June 2010 during the Annual General Meeting (AGM) of STRABAG SE. Alfred Gusenbauer and Kerstin Gelbmann were elected to the supervisory board. Alfred Gusenbauer replaced the former Chairman of the Supervisory Board Waldemar Jud. Gottfried Wanitschek and Siegfried Wolf were reelected to the supervisory board by the AGM. Gerhard Gribkowsky left the supervisory board.

Upon approval of majority shareholder STRABAG SE, Ed. Züblin AG and both of the minority shareholders amicably agreed on settling all pending law suits of the minority shareholders against the company.

JulY

With the acquisition of the majority interest in Rimex Group as at 1 July 2010, STRABAG Property and Facility Services (STRABAG PFS) GmbH continued on its growth course and expanded its service spectrum to include inhouse services in the infrastructural facility management segment. Rimex specialises in services in the cleaning and landscaping area. With a staff of about 2,000 employees, Rimex realised a turnover of about € 27 million in 2009. The previous owners will retain a 30-percent stake in the company and will continue to manage the company.

In Tyrol, Austria, STRABAG has been awarded the contract to plan and build the Brenner rest stop on the A13 including all necessary exterior facilities. STRABAG will operate the rest stop jointly with partners OMV and Rosenberger for a period of 30 years under a PPP model. The total investment volume for the project amounts to around € 11 million.

August

On 31 August 2010, Wolfgang Merkinger (58), the STRABAG SE member of the management board with commercial responsibility for the segment Transportation Infrastructures, resigned his management board mandate for health reasons. Mr Merkinger's management board seat was not filled and the STRABAG SE management board was reduced to six members.

September

The Directorate-General for Public Works and Water Management of the Netherlands Rijkswaterstaat authorised A-Lanes A15 – a joint venture between STRABAG AG, Ballast Nedam, John Laing and Strukton – with the construction of the PPP project A15 Maasvlakte-Vaanplein. John Laing participates for 28 % as shareholder in A-Lanes A15. Ballast Nedam, STRABAG and Strukton participate for 24 % each as shareholders in A-Lanes A15 and all three have a stake of one third in the design, building and maintainance phases. The concession has a term of 25 years and represents a total project value of approx. € 1.5 billion. Construction will last from mid-2011 to the end of 2015.

STRABAG acquired 100 % of ECM Facility a.s. – a provider of property and facility management services – located

in Prague, Czech Republic. With 220 employees the company achieved a turnover of approx. € 16 million in 2009. With this acquisition STRABAG enters the Czech market for Property & Facility Management as one of the Top 5 companies.

October

STRABAG's subsidiaries in Sweden received the contract to design and build the extension and renovation of Täby Centrum (shopping centre) in Stockholm, Sweden. The contract is worth a triple digit million-euro amount. Construction work started in October 2010 and will end in March 2015.

STRABAG SE has concluded the renewal of a syndicated surety loan (SynLoan) with a consortium of 17 international banks led by Deutsche Bank and Raiffeisen Bank International. The volume of the surety loan amounts to € 2.0 billion, the duration will be five years. The credit range replaces the previous line in the amount of € 1.5 billion.

STRABAG Sp. z o.o., STRABAG AG and Hermann Kirchner Polska Sp. z o.o., three subsidiaries of STRABAG SE, signed the contract to build a new bridge complex in Toruń, Poland. Construction began in autumn 2010 and is expected to be finished within 32 months. The project value amounts to about € 139 million.

STRABAG and ÖBB Infrastruktur AG signed the contract for the largest construction contract ever awarded in Austria, the Koralm Tunnel. The contract value amounts to € 570 million. Construction of the main lot started in early 2011 and is scheduled for completion in late 2018.

November

Rasperia Trading Ltd., a part of the diversified industrial group Basic Elements under sphere of influence of Russian industrialist Oleg Deripaska, exercised the call option to repurchase a 17 % stake in STRABAG SE. Rasperia repurchased 19,380,000 shares of the company for € 373,065,000, or € 19.25 per share. With it Rasperia remains a full-fledged member of the syndicate on the basis of the existing shareholder agreement with Haselsteiner Group and Raiffeisen/UNIQA Group. The call option for further 8 % was extended until 15 July 2014.

To strengthen the presence on the Russian market, STRABAG made an advance payment of € 70 million for a 26 % stake in the leading Russian road construction company Transstroy, part of the Basic Element group. STRABAG will take the time for a thorough due diligence of Transstroy, which posted a turnover of RUB 39 billion in 2009 (1 EUR = 42 RUB), before agreeing on a definitive purchase price.

STRABAG received the contract by a subsidiary of Basic Element to serve as general contractor regarding the construction of the Olympic village in Sochi, Russia. According to this, by September 2013 STRABAG will construct residences and hotels ahead of the Olympic winter games 2014. The contract is subject to the finalising of the financing for this approx. € 350 million project.

December

STRABAG Sp. z o.o. and Galeria Katowicka Sp. z o.o. signed a contract for the construction of a new shopping centre in Katowice in Poland. The contract comprises the construction of a 5-storey shopping centre, construction of the railway station, construction of a associated bus station with its commercial area and road passage under the railway station. The total project value amounts to € 240 million. The STRABAG share is worth a tripledigit million-euro amount.

COUNTRY REPORT

European Construction Sector Recovering More Slowly than Economy as a Whole

Output Volume of STRABAG SE by Country 2009–2010

€ Mln	2010	% of total output volume 2010	2009	chang e %	chang e absolute	% of total output volume 2009
Germany	5,051	40 %	5,380	-6 %	-329	41 %
Austria	1,907	15 %	1,981	-4 %	-74	15 %
Poland	1,352	11 %	993	36 %	359	8 %
Czech Republic	867	7 %	786	10 %	81	6 %
Hungary	580	5 %	832	-30 %	-252	6 %
Slovakia	427	3 %	480	-11 %	-53	4 %
Switzerland	370	3 %	378	-2 %	-8	3 %
Middle East	295	2 %	350	-16 %	-55	3 %
Benelux	284	2 %	221	29 %	63	2 %
Russia	251	2 %	282	-11 %	-31	2 %
Scandinavia	248	2 %	199	25 %	49	2 %
Americas	246	2 %	162	52 %	84	1 %
Romania	165	1 %	161	3 %	4	1 %
Africa	136	1 %	168	-19 %	-32	1 %
Italy	128	1 %	108	18 %	20	1 %
Rest of Europe	128	1 %	140	-9 %	-12	1 %
Asia	126	1 %	84	50 %	42	1 %
Croatia	92	1 %	149	-38 %	-57	1 %
Serbia	45	0 %	37	21 %	8	0 %
Slovenia	43	0 %	67	-35 %	-24	1 %
Bulgaria	36	0 %	35	4 %	1	0 %
Ireland	0	0 %	28	-100 %	-28	0 %
Output volume total	12,777	100 %	13,021	-2 %	-244	100 %
thereof CEE1)	3,858	30 %	3,822	1 %	36	29 %

Despite the strong presence in its home markets of Austria and Germany, STRABAG sees itself as a European company. The group has been active in Eastern Europe for decades in order to diversify the country risk and to profit from the market opportunities in the region. Business in these countries accounted for about 30 % of the total group output volume in 2010 as it did the year before. This gives STRABAG a unique position in comparison to the competition and makes it the market leader in the construction sector in Central and Eastern Europe.

STRABAG has for years pursued the strategy of expanding its market shares on the home and growth markets in order to achieve the necessary economies of scale to become a cost leader.

Growth Comparison Western and Eastern Europe

In contrast to the economy as a whole, a decline is again expected for the European construction sector in 2010. As a result of the overall economic recovery, which was reflected in a positive gross domestic product (GDP) in 2010, slight growth is first expected in 2011, with accelerated growth in 2012. Both the GDP and the construction volume developed quite differently in the individual markets of Western and Eastern Europe. While the construction output volume in Western Europe is recovering only slowly and will not enter positive territory until 2012, the construction industry in Eastern Europe has fared better throughout the economic crisis thanks to the booming Polish market. Particularly the continued need to address infrastructure deficiencies is proving to be a factor driving further growth in the region. 25 % 30 %

Development of the Construction Industry Segments in Western and Eastern Europe 10 % 15 %

In the countries of Western Europe, residential construction has been a driver of growth since the economic crisis. In Eastern Europe, by comparison, the construction industry's main activities are in civil engineering. The segment's contribution is expected to rise from around 45 % to 50 % from 2010 to 2012 due to continued infrastructure growth. While building construction – as in Western Europe – will then amount to some 30 % of the sector's overall output volume, residential construction carries much lower weight than in Western Europe.

The building construction segment shrank by 5.1 % across Europe in 2010, and a recovery is not expected until 2012. The development in Western and Eastern Europe is very similar, although recovery is expected somewhat sooner in Eastern Europe. Commercial buildings will continue to represent the highest percentage of new 2008 2009 2010e 2011e 2012e 2013e 2008 2009 2010e 2011e 2012e 2013e

construction activity. Office and industrial buildings are not expected to show growth until 2012. Because of the economic crisis, the construction of warehouse facilities has also been on the decline, with only slight growth expected in 2011 and 2012. 0 % 5 %

Eastern Europe has a special status in the busy field of civil engineering, a sector that receives funding from the EU's structural funds. This is due to two factors: on the one hand, civil engineering accounts for the largest share of the overall construction industry in Eastern Europe; on the other hand, the segment is also showing significantly more dynamic growth here than in Western Europe. While the civil engineering volume in Western Europe has been steadily declining since 2009, Eastern Europe is showing constant growth. Growth of 13.3 % is again expected in 2012 as well, with a slight slowing of the growth rate in sight for 2013. -10 % 2008 2009 2010e 2011e 2012e 2013e -5 %

EASTERN EUROPE WESTERN EUROPE

Austria

After the crisis-induced decline of the previous year, Austria's economy again grew by 2.0 % in 2010, with renewed growth of 1.9 % currently forecast for 2011. The Austrian economy is benefiting from the positive impulses from the globally increasing demand and the favourable exchange rate development. In view of the tense situation regarding the state finances, however, the government has decided on a package of extensive austerity measures in the 2011 budget. 2008 2009 2010e 2011e 2012e 2013e -10 %

With fewer long-term investments being made, the Austrian construction industry continues to suffer from the effects of the economic crisis. Overall, the construction output volume fell by 3.0 % in 2010. Slight growth is again expected for 2011, driven mainly by building construction. The sharp rise in construction prices, however, is having a damping effect on the real growth rates.

While new residential construction once again dropped noticeably in 2010 in response to the low investment propensity among private households and construction contractors, and is likely to continue to shrink in 2011 as well, commercial building construction is again painting a more

Total construction output Non-residential construction

positive picture. Although a minus of 4.3 % was still recorded here in the past year, Euroconstruct is forecasting renewed growth of 2.3 % for 2011. The reasons for this lie in the growth of the GDP, the rise in exports and the increasing industrial production, all of which will lead to an overall more dynamic situation regarding property and plant investments.

This should also lead to a gradual increase in construction investments in this area. Especially affected should be industrial and warehouse buildings and, on a somewhat smaller scale, office buildings as well. The construction activity in the healthcare and education sectors, on the other hand, should benefit from several larger projects, for example in academia. Government subsidies and demographic change also have a favourable effect. In contrast, no significant impulses can be expected among commercial buildings despite stable growth in consume demand.

The area of civil engineering, which had recorded significant growth between 2000 and 2008, lost 3.1 % in the year under report. The future development here is strongly dependent on the government's infrastructure plans, which, however, have been partially scaled back in view of the budget restrictions. Nevertheless, several large projects were decided in the field of tunnelling towards year's end. As a result, only a minor decline of 0.3 % is expected here for 2011. 2008 2009 2010e 2011e 2012e 2013e

STRABAG generated a total of 15 % of the group output volume in its home market of Austria in 2010 (2009: 15 %). Alongside Germany and Poland, Austria thus continues to be one of the group's top 3 markets. With a share of 7.0 %3), STRABAG also remains the market leader here. The output volume reached a volume of € 1,906.54 million in 2010. The Building Construction & Civil Engineering segment contributed 51 % to the total, followed by Transportation Infrastructures with 38 % and the Special Divisions & Concessions segment with 9 %. In 2010, STRABAG won the tender for Austria's largest construction contract – the construction of the Koralm Tunnel.

1) Country output as percentage of group output volume

3) In the absence of current figures, the market shares stated in the entire country report refer to the year 2009 and to the total market, including all construction segments.

²⁾ All growth forecasts as well as the national construction volumes are taken from the Euroconstruct's winter 2010 reports.

Germany

Overall Country Construc tion Output		€ 251.1 billion
	40% 2010e	2011e
GDP growth in %	3.5	2.0
Construction growth in %	3.4	1.3

Following a sharp decline of the gross domestic product in the previous year, the German economy again recorded significant growth of 3.5 % in 2010. The losses suffered during the crisis were quickly overcome and the economic recovery was given a broader basis. The positive economic development was also reflected in the construction output volume, which again grew by 3.4 % in 2010 following the decline of the previous year. In addition to the economic upturn, the low unemployment, the stronger confidence in the economy and the government's stimulus programmes were also responsible for the positive development in all sectors of the construction industry.

Despite the fact that the economists at Euroconstruct see a continuation of the economic recovery for 2011, the growth of the global economy is expected to slow once more over the course of the year as the global trade is also significantly losing momentum. Additionally, the consolidation measures in the euro area, as well as the low level of competitiveness of the countries of Southern Europe, are dampening the further upswing. For the construction output volume in Germany, only moderate growth of 1.3 % is forecast for 2011.

The field of commercial building construction benefited from the government's stimulus programmes in 2010. Projects which had already been planned but were delayed because of the crisis could be continued in 2010. Furthermore, the strong economic recovery led to a higher willingness among businesses to invest, so that the field of building construction grew overall by 2.2 %.

In the area of civil engineering, the government's stimulus packages also had a positive effect on investments, leading to growth of 3.7 %. This field thus was – in addition to the significantly recovered field of private residential construction – the strongest driver of growth behind the overall construction output volume in Germany. The focus in the field of civil engineering lies on the expansion and modernisation of the road, rail and waterway networks.

Thanks to a market share of 2.1 %, STRABAG is market leader in Germany. With a value of € 5,051.24 million, some 40 % of STRABAG's overall output volume was generated in Germany. The Transportation Infrastructures segment contributed the most (46 %) to the output volume in Germany, reaching a market share of 9.4 % in the German road construction sector.

Poland

The Polish economy achieved renewed growth in 2010. Thanks to the strong industrial production and the increased export activity, the gross domestic product again grew by 2.9 % in the reporting period after the plus of 1.7 % in the previous year. Positive impulses also came from the increased private consumption, compensating for the only moderate development among enterprise investments resulting from the slow recovery of the financial markets.

For 2011, Euroconstruct again expects economic growth of 3.3 % for Poland. Against the backdrop of the low debt in the private sector, the largest drivers of growth will continue to be private consumption, EU funds for public investments in infrastructure and education, and company spending for inventory buildup.

After originally higher forecasts, the construction output volume in Poland grew by around 4 % in 2010. The lower-than-expected growth was the result of the reduced state financial budget as well as the delay of road construction projects. In 2011, the output volume should grow again by around 12.7 % due to the realisation of road construction projects and because of investments in sport venues ahead of the 2012 UEFA European Football Championship.

As was the case with residential construction, the field of commercial building construction also registered a slight recovery in 2010. This development was due to the increased production capacity utilisation and – analogous to the private sector – thanks to the improved financing possibilities. After the decline of 2009, this area again reached moderate growth of 0.8 %.

The forecasts for the field of civil engineering were significantly revised downwards. Due to drastic savings in road construction, expenditures were up by just 8.3 %. Additionally, the severe winter and the floods in southern and central Poland resulted in construction being halted on a number of infrastructure projects. For 2011 and 2012, however, renewed growth of 26.3 % and 21.7 % is expected, respectively.

STRABAG is the number two in the construction sector in Poland. With € 1,351.91 million, the country contributed 11 % to the group's overall output volume in 2010, remaining STRABAG's third-largest market. 80 % of the output volume came from the Transportation Infrastructures segment, which contributed the largest percentage of the revenue by far. With 13 %, Building Construction & Civil Engineering came in second place. STRABAG's share of the entire Polish construction market stood at 2.7 %, that of road construction at 8.8 %.

Czech Republic Hungary

After a worsening economic situation precipitated by the outbreak of the financial crisis in 2008, the Czech Republic returned to moderate growth in the second quarter of 2010. Overall, GDP growth in 2010 reached 0.8 %. Euroconstruct expects the growth to continue thanks to the favourable economic environment and to again reach around 1.2 % in 2011.

Due to the government's drastic austerity programmes, the construction output volume fell by 10.0 % in 2010. The new government that took office in the middle of the year moved to significantly cut funding for the public sector, which hit the areas of transport and infrastructure the hardest. The output volume will continue to sink against this backdrop, with no recovery in sight until 2013.

Analogous to the field of private residential construction, the area of commercial building construction also registered negative growth. The experts at Euroconstruct do not expect the situation to improve in the coming years. Negative trends can be seen above all among private investors. The situation is made worse by the high interest rates at Czech banks, which are not passing on the central bank's lower rates to their customers. Against the backdrop of the current budget cuts, however, the public sector is also failing to deliver any growth impulses.

The field of civil engineering had been the only area to record growth even in times of crisis. However, this growth came to an end in 2009. Public investments were cut immediately after the elections, so that a number of projects had to be suspended. This led to a 10.2 % decline in the field of civil engineering in 2010. In the coming years, the situation in this area is likely to get even worse.

STRABAG is the number four on the market in the Czech Republic. With an output volume of € 866.73 million, the group generated around 7 % of its overall output volume on the Czech market in 2010. The market share amounts to 3.9 %. 83 % of STRABAG's Czech construction output volume is generated by the Transportation Infrastructures segment, 13 % by Building Construction & Civil Engineering and 4 % by Special Divisions & Concessions.

The European economy began to recover in the spring of 2010. At the same time, international confidence in the Hungarian economy grew, above all due to the positive trade balance. As a result, the Hungarian forint gained in strength and stability and the country was able to reduce its state debt. Against this backdrop, the Hungarian economy grew by 1.0 %. Despite the continued difficult environment, Euroconstruct expects to see growth of 2.8 % in 2011.

After five negative years in a row, the Hungarian construction output volume experienced a record low of -3.8 % in 2010. The recovery of the construction sector that had been expected for the spring failed to materialise. The renewed worsening is to be blamed mainly on natural disasters and delays regarding large construction projects. For 2011, however, Euroconstruct expects a reversal of the trend, driven above all by the faster application of EU funds.

The declining demand in 2009 for commercial building construction that was triggered by the economic crisis continued unabated in 2010. Overall, the field registered a minus of 3.5 %. The strongest declines were recorded in the area of retail and trade. Commercial building construction is not expected to stabilise before the years 2011/2012.

The construction output volume in civil engineering remained stable in 2010. Heavy rains led to floods which caused damage to the country's infrastructure. This area has been largely financed from EU funds since 2009, with investments flowing mainly into the modernisation of roads and projects to protect the environment. Spending for infrastructure projects, however, is expected to double from 2011. With forecast growth of an average of 10 % for each of the years in the period 2011–2013, this area should continue to compensate for the restrained growth in building construction.

In 2010, STRABAG generated an output volume of € 579.64 million in Hungary. The share of the overall market stood at 8.4 %, with road construction even contributing 20.7 % to STRABAG's group output volume. This makes the company the market leader in Hungary. With 47 %, the Transportation Infrastructures segment accounted for the largest percentage of the output volume. Building Construction & Civil Engineering and Special Divisions & Concessions generated respectively about 40 % and 12 % of the output volume.

Slovakia

Due to its small size and its dependency on exports, the economy of Slovakia was especially hard hit by the crisis. Thanks to growing foreign demand, however, the economic performance again grew by a projected 4.0 % in 2010. Against the backdrop of the government's consolidation measures, Euroconstruct expects growth of 3.3 % for 2011, with even more dynamic growth forecast for 2012. Significant drivers of growth are exports and industrial production.

The development of the construction industry so far does not reflect the budding upswing, however. As a result of the economic crisis, the serious floods and the new government's austerity measures, the construction output volume again fell by 6.3 % in 2010. Euroconstruct expects to see recovery only towards the end of 2011.

The field of building construction, which accounts for nearly half of the construction output in Slovakia, registered a decline of 10.2 % influenced by the crisis of 2010. Funding in this area originates mainly from foreign investors, who were hard hit by the financial crisis. Euroconstruct, however, expects the situation to improve from 2012 and is forecasting renewed positive growth rates. Contributions towards this growth are likely to come from the government's expected measures for an investment-friendly climate. Overall, public spending will fall, but positive impulses are expected from the application of EU money. The necessary works to remedy and repair damages from the disastrous floods should also produce additional growth.

The field of civil engineering in 2010 registered renewed growth of 2.6 % for the first time in years. Declines in the areas of modernisation and renovations could be compensated by investments in transport infrastructure, above all in the construction of roads and motorways. Euroconstruct expects a growth spurt of 20.1 % for 2011 due mainly to higher government spending.

In Slovakia, STRABAG generated an output volume of € 426.55 million in 2010, giving it a share of 8.7 % of the Slovak market and 16.2 % of the Transportation Infrastructures business. The biggest contribution in 2010 was the 55 % made by the Building Construction & Civil Engineering segment, closely followed by Transportation Infrastructures with 43 %. The Special Divisions & Concessions segment contributed 2 % to the overall output volume.

Switzerland Russia

Overall Country Construc tion Output		€ 37.5 billion
	2010e	2011e
GDP growth in %	2.7	1.8
Construction growth in %	2.4	1.1

Following a decline of the economic performance in the previous year, Switzerland registered renewed GDP growth of 2.7 % in 2010, higher than the average rate of growth in Europe and the United States. Declining unemployment figures, the increase in disposable income in relation to consumer spending, and positive population growth contributed to the good economic performance. Due to the slower growth of the global economy, however, Euroconstruct also expects growth of only 1.8 % in Switzerland for 2011.

In line with the economic development, the construction industry also continues to paint a positive picture. The overall construction output volume grew by 2.4 % in 2010. The optimism is limited to the past financial year, however. A lower growth rate is already expected in 2011.

While residential construction continued to prove an engine driving growth in 2010, the field of building construction also returned to a growth path with a plus of 1.5 % following the negative development of the past few years. Overall, this sector accounts for around one third of the construction output volume in Switzerland. A further increase of 2.4 % is expected for 2011. More than half of the spending in the area of building construction is for renovation activities.

In the past few years, the field of civil engineering grew more strongly than the construction sector as a whole and it continued this path in 2010 with growth of 6.3 %. The highest contribution came from the infrastructure field, above all from the modernisation of roads. Due to the end of the Swiss government's economic stimulus package, however, Euroconstruct expects to see a significant decline in 2011.

The Swiss market contributed € 370.30 million or 3 % to the group's overall construction output volume in 2010. The output volume was generated mostly in the Building Construction & Civil Engineering segment (44 %), while Transportation Infrastructures and the Special Divisions & Concessions segment contributed 18 % and 37 % to the total output, respectively.

Like the majority of the countries of Central and Eastern Europe, Russia was hit especially hard by the global recession. With the rising price of oil and the consolidation of the finance system, however, slight recovery began to set in towards the end of 2009. But the main factor driving growth was private consumption, while the importance of exports remained lower than before the crisis. Against this backdrop, the GDP is projected to have again grown by 4.6 % in 2010. For the coming years, the experts at Euroconstruct expect to see continued growth in the country's economic performance.

Following a strong decline in the previous year, the Russian construction sector stabilised in 2010 with a slight 0.3 % increase of the overall output volume. For the years to come, significant growth is again expected for the construction output volume.

Similar to the situation in residential construction, a slight recovery also took hold in the field of building construction in the second half of 2010, despite the fact that expensive loans continued to make it difficult to finance projects. Significant drivers of growth here were the construction activities for the 2014 Winter Olympics in Sochi and for the APEC Summit in Vladivostok. Continued dynamic growth is expected here in the years to come.

With a plus of 6.6 %, the strongest growth by far was achieved in the field of civil engineering. The nuclear power plant in Rostov, the port of Ust-Luga and the construction activities in Sochi represent projects of high national interest which were carried out or promoted, respectively. Russia winning the right to host the 2018 FIFA World Cup will also bring further impulses to the sector, securing even more future growth. Additionally, significant investments are to be made in the field of road construction by 2015.

STRABAG has been active in Russia since 1991 and generated an output volume of € 251.08 million in the country in 2010. The contribution to the overall group output volume amounted to 2 % in the period under report. In Russia, STRABAG is active almost exclusively in the Building Construction & Civil Engineering segment (95 %) with projects such as hotels, shopping centres and industrial buildings.

Middle East, Africa, Americas, Asia – Rest of World

6%

In addition to its main markets in Europe, the STRABAG Group is also active in individual non-European regions in Asia, Canada, Africa and the Middle East. These markets will be of increased significance as STRABAG seeks to increase its presence in the non-European markets in order to become more independent from the economic conditions among the previous growth markets. In all, the group generated € 802.56 million in these regions in 2010, which corresponds to 6 % of the overall group output volume – the same as the year before.

In the non-European markets, STRABAG is usually active as a general contractor through direct export. The focus in these regions is on civil engineering, industrial and infrastructure projects and tunnelling – areas in which high technological expertise is required.

The most important projects include the construction and modernisation of two airports in Oman, the construction of the Rohtang Pass highway tunnels at 3,980 m above sea level in the western Himalaya region in India, as well as motorway orders in North Africa. STRABAG's activities in non-European countries in all areas of business are mostly included – with a few small exceptions – in the Special Divisions & Concessions segment.

Rest of Western and Northern Europe

Benelux

First signs of an economic recovery in the Benelux states could be seen in the first half of 2010. The recovery turned out to be stronger than originally expected: following the negative development of the previous year, the GDP in Belgium and the Netherlands again grew by 1.8 % in 2010. From 2012, growth rates are expected to top the 2 % mark.

While the construction output volume in Belgium fell by only 0.6 %, this figure dropped by 9.4 % in the Netherlands, which does not adequately reflect the higher economic performance. The decline was due mainly to the public spending cuts, affecting the areas of residential construction and building construction the hardest. The experts of Euroconstruct do not expect the industry to recover until 2012.

STRABAG generated an output volume of € 284.26 million in the Benelux countries in 2010. The region contributes 2 % to STRABAG's Group output volume, with around 80 % coming from the Building Construction & Civil Engineering segment. The trend, however, is shifting towards infrastructure projects. In 2010, STRABAG won a public private partnership project (PPP) in the region: the A15 motorway in the Netherlands.

Scandinavia

The construction economy in Scandinavia showed very strong country-specific differences in 2010. Both Sweden and Norway achieved positive GDP growth in the amount of 4.3 % and 1.0 %, respectively, but the construction output volume in Norway fell by 3.1 % while growing by 2.4 % in Sweden. Negative impulses came above all from the fields of building construction and civil engineering, while private residential construction registered a strong plus. In Sweden, growth rates were recorded in all areas, with the strongest growth impulses felt in the residential construction sector here, too. In 2011, all areas – with the exception of building construction in Norway – are expected to grow once more.

STRABAG's construction output volume in Scandinavia

in 2010 amounted to € 248.13 million. The main activities include infrastructure projects in the area of bridge building and tunnelling. With 66 %, the Transportation Infrastructures segment made the strongest contribution to the overall output volume in Scandinavia. In Denmark, STRABAG received the contract for the construction of the M51 PPP-motorway.

Italy

In 2010, the Italian economy recorded slightly positive GDP growth of 1.1 % for the first time in two years. Yet this stabilisation is not expected to have positive effects in the construction sector until the years to come: in 2010, the overall construction output volume fell by 4.8 %. With a minus of 7.5 %, commercial building construction was the hardest hit, while residential construction and civil engineering registered declines of 3.8 % and 3.3 %, respectively. As the expected decline of global trade activities will have a strong effect on the predominantly export-driven Italian economy, Euroconstruct expects only moderate growth of 0.9 % for 2011.

STRABAG's output volume in Italy amounted to € 127.89 million in 2010. Of this amount, 92 % was generated within the Special Divisions & Concession segment. The currently largest project involves the construction of state roads SS 77 and SS 78 (Quadrilatero).

Rest of CEE: Romania, Croatia, Serbia, Slovenia, Bulgaria

Romania

Romania's economic performance fell by a projected 1.6 % in 2010. A slight recovery in foreign trade and exports is responsible for the improvement over the previous year (-7.1 %) despite the fact that foreign investments remained at a low level in 2010.

Due to the lack of investments and a general decline in demand, the overall construction output volume fell by 21.6 % in 2010, whereby the field of residential construction was hardest hit with a minus of 35 %. With a share of more than 40 % of the overall output volume, commercial building construction is the driving force of the Romanian construction sector. In 2010, the market registered negative growth. A slightly lower decline than the previous year could be felt in the field of civil engineering, which lost just 1.1 % due to government investments in infrastructure and as a result of EU subsidies. This positive trend should strengthen significantly in the coming years.

STRABAG generated € 165.47 million in Romania in 2010, placing it in second place on the Romanian construction market. With 63 %, the Transportation Infrastructures segment contributed the highest percentage to the group's overall output volume in the country.

Croatia

Like other countries in the region, Croatia was also hard hit by the crisis. After a GDP decline of nearly 6 % in 2009, negative growth of 1.7 % is expected for 2010. Only in 2011 does Euroconstruct again expect to see positive economic development.

Against the backdrop of a lack of new projects, the overall construction output volume fell by more than 10 % in 2010, with a slight recovery expected only in 2012. Due to the low level of demand and the high financing costs, the field of residential construction again registered the strongest decline. Building construction was also harder hit by the crisis than had originally been expected, as larger projects were delayed or cancelled entirely. Declining demand and lower purchasing power also had a negative effect.

The field of civil engineering registered a decline of 7.7 % in 2010. Some 70 % of the infrastructure projects in this area are financed by EU money. No projects were cancelled because of the recession, but the dates for completion were postponed. For 2012, Euroconstruct expects a slight increase of 1.5 % in civil engineering.

In 2010, STRABAG achieved an output volume of € 91.93 million in Croatia. With 58 %, the company generated its highest percentage of the group output volume in the country in the Transportation Infrastructures segment.

Serbia

After a difficult 2009, Serbia again registered a slight increase in its economic performance in 2010. Following a plus of 0.5 % in the year under review, growth is even expected to reach 2.5 % in 2011. A significant engine driving growth is Serbia's WTO membership, which should help pave the way for new investors.

The overall construction output volume fell by 7 %, whereby the field of civil engineering was especially affected. An upswing of the market is expected in 2011 at the earliest. Positive trends can already be felt due to increased levels of demand and higher utilisation rates in building construction. The current situation of a low shopping centre density coupled with growing demand also has

a favourable effect in this area. Against the backdrop of financing commitments for road projects from the European Bank for Reconstruction and Development, the civil engineering business should also show significant renewed growth starting in 2011.

STRABAG's output volume in Serbia reached € 45.41 million in 2010. With 65 %, the Transportation Infrastructures segment contributed the greatest amount.

Slovenia

Against the backdrop of a noticeable recovery of the economy, the GDP again achieved slight growth of 1.1 % in 2010 after the strong decline the year before. Nevertheless, the overall construction output volume showed a minus of 27.2 %, again placing it significantly below the volume reached during the 2009 crisis year.

No recovery was in sight during 2010 in either residential construction or building construction, with continuing negative growth due to the lack of financing possibilities and delays affecting the completion of large projects. The experts of Euroconstruct expect slightly positive growth to set in no sooner than 2013. Civil engineering also saw a further decline of 28.4 %, mainly in response to the completion of several large construction projects that had been partially financed by EU funds. Additionally, the order value fell in this area as a result of the concentration on maintenance and upkeep. Based on the country's continuing difficult financing situation, Euroconstruct does not expect public investments to increase significantly until 2014.

In 2010, STRABAG achieved an output volume of € 43.25 million in Slovenia. With 59 %, the company generated the highest percentage of its group output volume in the country in the Building Construction & Civil Engineering segment.

Bulgaria

Due to the crisis-induced collapse of foreign investments, the Bulgarian economy again fell by around 0.6 % in 2010. Against this backdrop, the construction output volume also shrank by 9.2 % in 2010. While the experts at Euroconstruct are already forecasting moderate growth for the economy as a whole for 2011, the downward trend in the construction industry will probably return to positive territory in 2012 thanks to the realisation of some large infrastructure projects. The field of residential construction suffered the highest losses in response to the difficult access to loans, the rising interest rates and the dwindling purchasing power. Also hard hit was the field of building construction, while civil engineering is expecting a plus of 11.1 % for 2010. Driving growth in this field are the Bulgarian government's investment projects, in particular in the area of road construction.

STRABAG generated € 36.49 million on the Bulgarian market in 2010. With 49 %, the Building Construction & Civil Engineering segment contributed the highest percentage to STRABAG's total output volume in Bulgaria.

Order Backlog

Order Backlog of Strabag SE by Segment 2009–2010

31.12. € MLN.	total (incl other) 2010	building construc tion & civil engin ee ring	transpor tation in frastruc tures	special divisions & conc es sions	total (incl other) 2009	chang e group %	chang e group absolute
Germany	3,795	1,556	1,321	900	4,048	-6 %	-253
Poland	2,338	502	1,501	333	2,451	-5 %	-113
Austria	1,634	778	289	566	1,253	30 %	381
Russia	1,297	1,287	0	10	1,048	24 %	249
Benelux	778	385	70	324	326	139 %	452
Czech Republic	597	80	488	23	624	-4 %	-27
Scandinavia	568	51	386	132	251	126 %	317
Middle East	499	17	0	482	316	58 %	183
Italy	450	1	0	449	554	-19 %	-104
Africa	435	1	0	435	458	-5 %	-23
Slovakia	428	227	192	9	517	-17 %	-89
The Americas	377	89	0	288	514	-27 %	-137
Switzerland	354	206	23	126	325	9 %	29
Romania	301	59	221	21	174	73 %	127
Hungary	263	114	114	35	492	-47 %	-229
Asia	261	84	0	178	335	-22 %	-74
Croatia	155	113	41	1	74	110 %	81
Serbia	74	32	42	0	13	470 %	61
Rest of Europe	73	40	33	0	102	-28 %	-29
Slovenia	43	29	8	7	51	-15 %	-8
Bulgaria	17	10	7	0	29	-43 %	-12
Ireland	0	0	0	0	13	-100 %	-13
Order
backlog total	14,739	5,660	4,735	4,318	13,968	6 %	771
thereof CEE	5,513	2,453	2,614	439	5,473	1 %	40
Segment contribution to group order backlog		38 %	32 %	29 %

Development of Order Backlog 2006–2010

Construction Sites Included in the Order Backlog on 31 December 2010

Categories of order size

small: € 0 million to € 15 million medium: € 15 million to € 50 million large: over € 50 million

category	number of construc tion sites	order bac klog T€
Small orders	16,066	4,789,446
Medium-sized orders	216	2,317,906
Large orders	110	7,631,388
Total	16,392	14,738,740

The order backlog reached € 14.7 billion, which corresponds to a plus of 6 % on the year – another record high at year's end. The growth was carried by the expansion in northern European markets and the Middle East as well as by the acquisition of the largest construction order in Austria, the Koralm Tunnel, and the growing demand in Russia.

In the Building Construction & Civil Engineering segment, declines were registered in the order backlog in the established markets of Hungary and Germany due to the completion of several large projects in 2010. This dampened the order backlog in the short term, setting only slightly below the previous year's level at year's end. For 2011, however, STRABAG again expects to see rising demand in Germany. The significantly increased order backlog in the Transportation Infrastructures segment was due largely to the expansion in northern Europe and state investment programmes in Romania's infrastructure. The double digit growth in the Special Divisions & Concessions segment is thanks to the Koralm Tunnel project and the flourishing business with public private partnerships.

The overall order backlog is comprised of nearly 16,400 individual projects. Small projects with a volume of up to € 15 million each account for 32 % of the order backlog, a further 16 % are medium-sized projects with order volumes between € 15 million and € 50 million, while 52 % are large projects of € 50 million and more. The high number of individual contracts guarantees that the risk involved with one project does not threaten the group's success as a whole. The ten largest projects in the order backlog on 31 December 2010 added up to 24 % of the order backlog, compared to 25 % at the end of 2009.

Number of projects in progress on 31 December 2010

The ten largest projects currently in progress

Country	Project	Order Volume in € Mln	As % of Total Order Bac klog
Poland	A2 Segment II	855	5.8 %
Austria	Koralm Tunnel 2	497	3.4 %
Russia	Kautschuk residential complex	430	2.9 %
Russia	Olympic Village	310	2.1 %
Italy	Val di Chienti	307	2.1 %
Canada	Niagara Tunnel	286	1.9 %
Netherlands	A Lanes A15	271	1.8 %
Libya	Tajura Infrastructure	267	1.8 %
Poland	S7 Kalsk-Milomlyn	177	1.2 %
Romania	Motorway Deva-Orastie	153	1.0 %
Total		3,553	24.1 %

Impact of Changes to the Scope of Consolidation

In the 2010 financial year, 33 companies (thereof 12 mergers with fully consolidated companies) were included in the scope of consolidation for the first time. These companies contributed a total of € 324.23 million to the consolidated revenue and € 2.40 million to the net income after minorities. As a result of first-time inclusions, current and non-current assets increased by € 257.54 million, current and non-current liabilities by € 114.19 million.

Financial Performance

A number of factors influenced the business, resulting in development in opposing directions so that STRABAG registered only a slight decline in the 2010 financial year with an output volume of € 12,777.00 million. The construction boom in Poland had a positive effect on output and, above all in the Transportation Infrastructures segment, made up for the disadvantageous weather conditions in Europe at the beginning of the year. In comparison, considerable declines in output volume were seen in the Transportation Infrastructures segment in Germany and Hungary. Due to the weather, the output volume in the Building Construction & Civil Engineering segment in Germany was also considerably below the level of the previous year. These burdens, in combination with the lack of orders in tunnelling, had a greater effect than did the boost received from new large-scale projects in northern Europe and internationally.

The consolidated group revenue for the 2010 financial year stood at € 12,381.54 million, which – in line with the output volume – corresponds to a decline of 1 %. The ratio of revenue to construction output volume remained very high at 97 % (previous year: 96 %). The Building Construction & Civil Engineering segment contributed 32 %, Transportation Infrastructures 46 % and Special Divisions & Concessions 22 % to the revenue. These percentages were the same the year before, considering the changed segment organisation which took place at the beginning of 2010. The international business was grouped in the Special Divisions & Concessions segment, independent of the business unit.

The changes in inventories declined due to the sale of own real estate project developments, while the amount of own work capitalised grew thanks to the progress in the construction of the proprietary cement factory in Hungary.

With the low revenue, the raw materials, consumables and services used, as well as the employee benefits expense, fell by 3 % to € 8,218.36 million and by 1 % to € 2,800.93 million, respectively. The ratio of raw materials, consumables and services used as well as employee benefits expense versus revenue was reduced from 90 % in 2009 to 89 % in 2010.

Other operating expenses grew by 10 % to more than € 1 billion due in part to the higher provisions. At the same time, other operating income increased by 7 %, thanks in part to the sale of property, plant and equipment. This item also includes income from the fully consolidated concession company AKA.

	2010 € Mln	2009 € Mln	chang e %
Raw materials, consumables and services used	8,218	8,447	-3 %
Employee benefits expense	2,801	2,823	-1 %
Other operating expenses	1,030	933	10 %
Depreciation and amortisation	436	401	9 %

At € 32.39 million, the share of profit or loss of associates turned from negative back into positive territory in the 2010 financial year – the previous year's figure contained goodwill impairment of € 20 million for an associated company. A stimulating one-off effect resulted from the increased interest from 50 % to 100 % in railway con-struction subsidiary Viamont DSP a.s. in February 2010. In accordance with the new rule regarding step acquisitions as provided by IFRS 3 and IAS 27, measurement was made directly in profit or loss in the amount of € 24.60 million (Notes page 134). The net income from investments, at € 15.07 million, was higher than the year before and is made up of dividend payments from many smaller companies as well as financial investments.

It follows that the earnings before interest, taxes, depreciation and amortisation (EBITDA) grew by 7 % to € 734.69 million, resulting in a higher EBITDA margin, rising from 5.5 % to 5.9 %.

Development of EBITDA AND EBITDA MARGIN 2006–2010

A premium for control was considered in the purchase price for the additional 50 % interest in Viamont DSP a.s. As synergy effects in the group may only be used after organisational measures, these synergies are not yet included in the goodwill. This resulted in a charge for goodwill impairment in the amount of € 14.00 million. Altogether, the transaction resulted in a positive earnings effect of € 10.6 million at the level of the EBIT. Depreciation and amortisation in the

amount of € 435.74 million include, in addition to the above-mentioned goodwill impairment, further goodwill impairment of approx. € 36 million.

The earnings before interest and taxes (EBIT) grew by 6 % to € 298.95 million. This resulted in an EBIT margin of 2.4 %, after 2.3 % the previous year. At € -19.68 million, the negative net interest income remained largely unchanged on the previous year. This stable development affected both the interest on credit as well as the interest expense. The net interest income includes € 6.4 million in exchange losses.

As a result, the profit before tax grew by 6 % to € 279.27 million. Although STRABAG considers an average tax rate of 30 % to be realistic, the rate climbed from 29.8 % to 32.5 % during the 2010 financial year. This led to net income of € 188.38 million and a plus of 2 % over the previous year.

"Earnings per share € 1.53"

After a significant increase in 2009, minority interest fell back to € 13.52 million in the past financial year. The net income after minorities stood at

€ 174.86 million, 8 % above the level from the year before. The number of weighted outstanding shares remained unchanged at 114,000,000 shares, so that the earnings per share also grew by 8 % to € 1.53.

The return on capital employed (ROCE) was calculated at 5.4 % (previous year: 5.7 %).

148

Financial Position and Cash-Flows

	2010 € mln.	% of balanc e sheet total	2009 € Mln	% of balanc e sheet total
Non-current assets	4,345	42 %	4,300	44 %
Current assets	6,037	58 %	5,313	56 %
Equity	3,232	31 %	3,099	32 %
Non-current debt	2,364	23 %	2,305	24 %
Current debt	4,786	46 %	4,209	44 %
Balance sheet total	10,382	100 %	9,614	100 %

STRABAG SE's balance sheet total increased by more than € 700 million to € 10,382.16 million, due in large part to an advance payment for the A2 Segment 2 project in Poland in the triple-digit millions and thanks to higher non-current and current provisions. The former was responsible for the significantly larger cushion of cash and cash equivalents – a rather short-term effect – and at the same time drove up the trade payables.

IFRS requires the proprietary cement factory in Hungary, which will be organised in a cement holding company in 2011, to be shown separately in the balance sheet. The carrying value is therefore shown in the item Assets held for sale on the assets side of the balance sheet. STRABAG will hold 30 % of the cement holding company.

	2010	2009
Equity ratio %	31.1 %	32.2 %
Net debt € mln.	-669	-596
Gearing ratio %	-20.7 %	-19.2 %
Capital employed € mln.	5,236	5,043

Given the higher balance sheet total, the equity ratio fell slightly from 32.2 % to 31.1 %. The management board considers an equity ratio between 20 % and 25 % to be a realistic target in the medium-term.

As in the years before, STRABAG ended the year with a net cash position. Reaching € 669.04 million on 31 December 2010, this figure again grew in a year-on-year comparison. As reported above, this is due to an advance payment for a large-scale project in Poland. The net cash position does not include € 719.89 million in non-recourse financial liabilities related to the AKA and Kliplev Motorway Denmark concession companies. The interest expense of these non-recourse finance liabilities, as well as the interest income from receivables from concession arrangements, is presented in other operating income.

	2010	2009
Financial liabilities	1,559	1,509
Severance provisions	69	71
Pension provisions	375	364
Non-recourse debt	-720	-757
Cash and cash equivalents	-1,952	-1,783
Net debt	-669	-596

Calculation of net debt (€ mln.)

Development of equity, net debt and equity ratio

The cash-flow from operating activities fell significantly in the past financial year by 38 % to € 690.42 million. This decline is due to the extraordinarily high basis of the previous year, when a higher-than-average reduction of the working capital was achieved. The cash-flow from profits was 15 % lower in the 2010 financial year, but, as forecast, it was possible to further reduce the working capital. STRABAG does not expect to achieve a similar effect in the coming year.

The cash-flow from investing activities increased by onefifth to € -523.56 million. The company spent around 9 % more on the purchase of property, plant and equipment and intangible assets than the year before. Additionally, the advance payment for a 26 % stake in the Russian construction company Transstroy was registered with € 70.00 million in the cash-flow from investing activities.

The cash-flow from financing activities, at € -20.20 million, was far less negative than in the year before, as the company opted against a large-scale reduction of bank liabilities and instead decided to borrow more funds. STRABAG also issued a € 100 million bond in the 2010 financial year (while paying back a € 75 million bond), whereas in 2009 it had merely paid off outstanding bond.

Capital Expenditures

STRABAG had forecast capital expenditures (CAPEX) in the amount of approx. € 575 million for the 2010 financial year. This figure includes expenditures on intangible assets and on property, plant and equipment, as well as financial investments and enterprise acquisitions (changes to the scope of consolidation). The capital expenditures totalled € 610.95 million, slightly over the budget, but still significantly below the € 1 billion spent in 2008.

Expenditures on intangible assets and on property, plant and equipment – including the approx. € 70 million for the proprietary cement factory in Hungary – grew by 9 % to € 553.84 million, of which about three quarters were expansion expenditures and one quarter were maintenance expenditures. In the previous year, about half were maintenance expenditures and the other half expansion expenditures. The high proportion of expansion expenditures is due to STRABAG's focus of its capital expenditures: the company is expanding its activities in waterway construction and railway construction; a significant increase in demand can also be reported in Poland and in Germany so that the purchase of equipment in these countries is registered to a large degree as expansion expenditures.

Expenditures on intangible assets and on property, plant and equipment during the year under report must be seen against amortisation on intangible assets and depreciation on property, plant and equipment in the amount of € 435.74 million. This figure also includes goodwill impairment in a double-digit million-euro amount.

financing/TREASURY

The number one objective for the treasury management of STRABAG SE is assuring the continued existence of the company through the maintenance of constant solvency. This objective is to be reached through the provision of sufficient short-term, medium-term and long-term liquidity.

Liquidity for STRABAG SE means not only solvency in the strict sense but also the availability of guarantees. Building activities require the constant availability of bid, contract fulfilment, pre-payment and warranty guarantees and/or sureties. The financial scope of action is thus defined on the one hand by sufficient cash and cash credit lines, on the other hand by sufficient surety credit lines.

The management of liquidity risks has become a central element of the corporate management at STRABAG. In practice, liquidity risks come in various forms:

• In the short term, all daily payment obligations must be covered in time and/or in their entirety.
• In the medium term, liquidity levels must be sufficient so that no transaction (e.g. acquisitions, expenditures) or projects become impossible due to a lack of sufficient financial means or guarantees or that they cannot be executed at the desired pace.
• In the long term, the insufficient availability of financial means leads to potential impairment of the strategic development perspectives.

In the past, STRABAG has always oriented its financing decisions according to the risk aspects outlined above and has organised the maturity structure of the financial liabilities in such a way as to avoid a refinancing risk. In this way, the company has been able to maintain a great scope for action, which is of particular importance in a difficult market environment.

The necessary liquidity is determined by liquidity planning. Based on this, liquidity assurance measures are made and a liquidity reserve is defined for the entire group.

STRABAG SE has a total credit line for cash and surety loans in the amount of € 6.2 billion. The credit lines include a syndicated surety credit line in the amount of € 2.0 billion with a maturity until 2015.

The syndicated surety credit line was concluded in October 2010 with a consortium of 17 international banks led by Deutsche Bank and Raiffeisen Bank International (RBI). Further bookrunners and mandated lead arrangers are Baden-Württembergische Bank, Bayerische Landesbank, Commerzbank and UniCredit. The volume of the surety loan amounts to € 2.0 billion. The credit range replaces the previous line in the amount of € 1.5 billion.

The remaining cash and surety credit lines are managed bilaterally in cooperation with various banks. A high degree of diversification creates an adequate risk spread in the provision of the credit lines.

The medium- and long-term liquidity needs have so far also been covered by the issue of corporate bonds. STRABAG has regularly issued bonds on the Austrian market since 2004. Due to the market conditions, STRABAG opted against issuing a new bond in the 2009 financial year. In the 2010 financial year, STRABAG again successfully issued a € 100 million tranche with a five-year term to maturity. Currently, four bonds with a total volume of € 325 million are on the market.

The existing liquidity of € 2.0 billion and cash credit lines of € 0.4 billion assure the group's liquidity needs. Nevertheless, further bond issues are planned, depending on the market situation, in order to maintain a high level of liquidity reserves in the future as well.

In December 2010, S&P again confirmed its BBB- rating and stable outlook as STRABAG benefits from its good access to raw materials, the high order backlog and the solid capital structure in the otherwise cyclical, highly competitive and low-margin construction sector.

	2010	2009	2008	2007
Interest and other income (€ million)	79	78	90	50
Interest and other expense (€ million)	-98	-98	-131	-86
EBIT/net interest income	-15.2x	-14.2x	-6.7x	-8.6x

payment ob ligations	book value 31 december 2010 € Mln
Bonds	345
Bank Liabilities	1,147
Financial Leasing	63
Other Liabilities	5
Total	1,559

repayments incl. interest

• Bank Liabilities
• Financial Leasing
• Other Liabilities

Report on the Financial Performance, Financial Position and Cash-Flows of STRABAG SE (Individual Financial Statement)

Financial Performance

The company's revenues grew significantly on the year, increasing by € 7.9 million from € 48.3 million to € 56.3 million due largely to the growth of revenue from group services.

	2010	2009
Revenues in T€ (Sales)	56,316	48,333
Earnings before interest and taxes in T€ (EBIT)	64,333	164,780
Return on sales in % (ROS)	114.24	340.93
Return on equity in % (ROE)	2.67	6.71
Return on investment in % (ROI)	2.02	5.22

The earnings before interest and taxes (EBIT) decreased by € 100.4 million year-on-year to € 64.3 million as the result of a strong decline of the net income from investments over the year before. The significantly lower expenses from financial assets could not compensate the drop in the earnings from investments.

The operating result decreased from € 15.2 million in the previous year to € 10.7 million, mainly as a result of the higher expenses for services used and because of foreign exchange difference.

The changed result led to a decline of the profitability figures compared to the previous year.

The interest income of € 8.9 million in the previous year fell by € 2.5 million to € 6.4 million in the 2010 financial year. This is due particularly to the reduction of interestbearing receivables and the related reduction of interest income. In exchange, the interest expense was reduced significantly from € 27.8 million to € 26.7 million due to the changes of the interest level.

Overall, the company generated a net profit of € 67.0 million, compared to € 168.8 million in the previous year.

Financial Position and Cash-Flows

The balance sheet total of STRABAG SE remained relatively stable, coming to rest at € 3,199.2 million in 2010 compared to € 3,179.5 million in the previous year with changes among only a few balance sheet items. Worth mentioning are the investments in non-current assets in the amount of € 368.1 million from enterprise acquisitions, capital increases and injections in subsidiaries at the expense of reducing the cash-pooling credit (receivable from subsidiaries).

	2010	2009
Net debt in T€ (Net cash)	53,741	-265,955
Working capital in T€	86,097	69,895
Equity ratio in %	82.91	83.11
Gearing ratio in %	2.03	-10.06

A net debt position in the amount of € 53.7 million was calculated on 31 December 2010. The changes result primarily from the reduction of the cash-pooling credit due to the above-mentioned investments in non-current assets. The reduction of the contingent liabilities of € 123.4 million in the previous year to € 104.8 million in the 2010 financial year positively influenced the net debt.

The change of the gearing ratio shows a slight debt in the amount of 2.03 % for the reporting year.

The working capital rose compared to the year before from € 69.9 million to € 86.1 million.

The equity ratio fell slightly on the year to 82.91 % because the moderately higher proportion of equity was overcompensated by the higher rise of the balance sheet total.

	2010	2009
Cash-flow from operating activities in T€	168,261	101,209
Cash-flow investing activities in T€	-410,887	-152,756
Cash-flow from financing activities in T€	-108,812	-120,632

The cash-flow from operating activities in the amount of € 168.3 million is largely the result of the cash-flow from earnings, with the reduction of receivables from subsidiaries and the growth of liabilities from subsidiaries making significant contributions to the higher cash-inflows in the financial year.

As was the case in the previous years, the cash-flow from investing activities results mainly from the growth in financial assets, whereby the year-on-year increase can be explained by the higher acquisition activity and equity contributions to subsidiaries in the past financial year.

The cash-flow from financing activities shows a use of funds in the amount of € 108.8 million. The cash-outflows were used mainly for the repayment of current and noncurrent financial liabilities, for the redemption of bond tranches which matured during the financial year, as well as for the payment of the dividend. The company generated cash inflows in the amount of € 100 million from the bond issued in the past financial year.

Segment Overview

Overview of the Segments of STRABAG

The operating business of STRABAG SE is divided into three segments: Building Construction & Civil Engineering, Transportation Infrastructures and Special Divisions & Concessions. A further segment defined as "Other" encompasses expenditures, income and employees at the group's service companies and staff units as well as consolidation effects. Construction projects are assigned to one of the segments (see chart below). Certainly, projects may also be assigned to more than one segment. This is the case, for example, with PPP projects in which the construction part is assigned to its respective segment, but the concession part is assigned to the concessions unit of Special Divisions & Concessions. In projects which span more than one segment, the commercial and technical responsibility is assigned to that segment which has the higher share of the overall project value.

building construction transportation special divisions & civil engineering infrastructures & concessions

• Prefabricated Elements Paving Marketing of PPP Projects

• Railway Structures Sewer Systems units

• Housing Roads, Earthworks Tunnelling

• Industrial Facilities Waterways, Dyking Infrastructure
• Public Buildings Landscape Architecture Development ■ Production of and Development ■ Operation/Maintenance/
• Bridges Sports and Recreational Management ■ Power Plants Facilities ■ International Business,
• Production of Construction Specialty foundation Material engineering (until 31.12.2010)

• Railway Structures

• Commercial and Hydraulic Engineering, Real Estate Development

• Civil Engineering Large-Area Works Property and Facility
• Environmental Engineering Protective Structures across various business
• Bridges Offshore wind (until 31.12.2010)

Building Construction & Civil Engineering

The building construction half of the Building Construction & Civil Engineering segment includes the construction of commercial and industrial properties, airports, hotels, hospitals, office and administration buildings, residential real estate and the production of prefabricated elements. The field of civil engineering comprises complex infrastructure solutions, power plant construction, large-scale bridge building and environmental technology projects.

	2010 € MLN.	chang e 2009–2010 %	2009 € Mln	chang e 2008–2009 %	20081) € Mln
Output volume	4,279	-3 %	4,427	-24 %	5,822
Revenue	3,976	-2 %	4,059	-23 %	5,244
Order backlog	5,660	1 %	5,602	-17 %	6,774
EBIT	154	24 %	124	44 %	86
EBIT margin
as a % of revenue	3.9 %		3.1 %		1.6 %
Employees	18,253	-7 %	19,562	-32 %	28,802

Output Volume Building Construction & Civil Engineering

€ Mln	Output Volume 2010	Output Volume 2009	chang e %	Chang e absolute
Germany	1,548	1,674	-8 %	-126
Austria	967	938	3 %	29
Russia	237	273	-13 %	-36
Slovakia	235	298	-21 %	-63
Hungary	229	202	14 %	27
Benelux	228	194	17 %	34
Poland	173	177	-2 %	-4
Switzerland	164	126	31 %	38
Czech Republic	111	70	57 %	41
Americas	91	65	39 %	26
Rest of Europe	85	115	-26 %	-30
Romania	53	88	-40 %	-35
Asia	42	14	191 %	28
Croatia	36	59	-40 %	-23
Slovenia	25	43	-40 %	-18
Bulgaria	18	25	-29 %	-7
Serbia	15	4	262 %	11
Scandinavia	12	29	-58 %	-17
Italy	5	4	31 %	1
Middle East	2	12	-84 %	-10
Africa	2	3	-35 %	-1
Ireland	0	13	-100 %	-13
Output volume total	4,279	4,427	-3 %	-148
thereof CEE	1,133	1,239	-9 %	-106

Output Volume, Revenue and Result

The severe winter at the beginning of the year hindered the output growth in the Building Construction & Civil Engineering segment. The subsequent increases in the second half of the year only partly compensated the weaker business at the beginning of the year, resulting in an output volume for the full year 2010 of € 4,279.07 million – 3 % below the level of the year before. A significant decline was registered in particular on the German home market, while the remaining regions painted a very mixed picture.

Similar to the output volume, the revenue declined in the low single-digit percent range. In its earnings before interest and taxes (EBIT), in comparison, the Building Construction & Civil Engineering segment registered its highest level ever, € 153.77 million, which corresponds to growth of 24 % over the previous year. An especially positive yield development in Germany, Austria and Poland contributed to an increase of the EBIT margin from 3.1 % to 3.9 %.

Order Backlog

At € 5,659.60 million, the order backlog remained stable compared to the year before. Declines were registered in the core markets of Hungary and Germany. While STRABAG expects lower levels to persist in Hungary for the long term, the company is optimistic about its home market of Germany. A number of large projects, e.g. the ECE Rhein-Galerie in Ludwigshafen, were completed in 2010; this will dampen the order backlog in the short term, but STRABAG expects to see resurgent demand in the months to come. This can already be seen in a number of significant new orders, such as the Forum Mittelrhein shopping and cultural centre in Koblenz or the Vodafone headquarters in Düsseldorf.

STRABAG can also report of successful order acquisitions in Poland: three group subsidiaries were awarded the contract to build a new bridge complex in Toruń, and STRABAG will build the Galeria Kaskada shopping centre in Szczecin as well as the new shopping centre Galeria Katowicka in Katowice. Also positive is the order backlog in Russia, which grew by more than € 250 million. Russian orders, such as the construction of a mini rolling mill for the Balakovo steel works or the general contractor agreement for the Olympic village in Sochi – the agreement is still pending financing –, contributed to this increase after last year's order backlog had been negatively affected by project cancellations and delays.

Employees

In response to the declining output volume and expectations of a weaker order situation, employee numbers were reduced particularly in Germany, Austria, the Czech Republic, Slovakia and Russia, so that the Building Construction & Civil Engineering segment registered an average workforce level of 18,253 people in the full year. This corresponds to a decline of 7 %. In several markets, such as Slovakia and the Czech Republic, STRABAG expects the lower workforce to be structural and, as a result, long-lasting.

Outlook

The company only narrowly missed the 2010 target output of € 4.4 billion; however, it should be possible to meet the objective of raising the segment output to € 4.5 billion in the 2011 finan-

cial year. In the home markets of Germany and Austria, more than 70 % of the planned output for 2011 is already covered by existing orders. On the results side, however, high union wage demands in Germany as well as the increasing prices for subcontractors and construction materials, in particular steel, could have a negative effect.

"Niche Segment Environmental Technology as a Driver of Growth"

Price pressure reigns in Poland mainly among publicsector tenders. However, STRABAG gives itself good chances for environmental technology on this market. Hungary and Croatia remain difficult. In the Bulgarian construction sector, the low point in demand in Building Construction & Civil Engineering should be reached in 2011, while STRABAG sees signs of a slight improvement of the situation in Romania. In the Czech Republic and Slovakia, further postponements of contract awarding or even the withdrawal of already awarded tenders can be observed.

Due to the declining price quality in several core

markets, STRABAG is pursuing the strategy of increasingly offering services in niche markets. In the Building Construction & Civil Engineering segment, one such niche is the field of envi-

ronmental technology. In the past year, STRABAG therefore increased its stake in h s Energieanlagen GmbH, Vienna, (now: STRABAG Energietechnik GmbH & Co KG) a specialist in the field of sustainable power generation from biofuels from 43 % to 100 %. The group subsidiary Ed. Züblin AG, meanwhile, consolidated its presence in the niche market of fireproof construction through the acquisition of Germany's Behmann Group.

Selected Projects in the Building Construction & Civil Engineering Segment

Country	Project	Order Volume € Mln	Percentage of total group order bac klog %
Russia	Kautschuk residential complex	430	2.9 %
Russia	Balakovo steelworks	151	1.0 %
Poland	Galeria Katowicka	109	0.7 %
Germany	Vodafone Campus Düsseldorf	91	0.6 %
Poland	Torun bridge	90	0.6 %
Netherlands	Vertical City Rotterdam	85	0.6 %
Croatia	Zadar port, Lot II+IIIA	82	0.6 %
Germany	Forum Mittelrhein	80	0.5 %

Transportation Infrastructures

The Transportation Infrastructures segment covers asphalt and concrete road construction as well as any remaining construction activities associated with road construction, such as earth-moving, canalisation, railway construction, waterway construction, dyking, paving, the construction of sport and recreational facilities, safety and protective structures and the building of small bridges. The segment also includes the production of construction materials such as asphalt, concrete and aggregates.

	2010 € MLN.	chang e 2009–2010 %	2009 € Mln	chang e 2008–2009 %	20081) € Mln
Output volume	5,810	2 %	5,709	-9 %	6,274
Revenue	5,692	2 %	5,606	3 %	5,464
Order backlog	4,735	6 %	4,463	13 %	3,957
EBIT	184	28 %	143	-1 %	145
EBIT margin
as a % of revenue	3.2 %		2.6 %		2.7 %
Employees	30,059	0 %	29,920	-12 %	33,906

1) Presentation in accordance with the Annual Report 2009. Changes in segment structure starting from 2010 are not considered.

Output Volume Transportation Infrastructures

€ Mln	Output Volume 2010	Output Volume 2009	chang e %	Chang e absolute
Germany	2,340	2,461	-5 %	-121
Poland	1,078	725	49 %	353
Austria	730	787	-7 %	-57
Czech Republic	717	704	2 %	13
Hungary	270	416	-35 %	-146
Slovakia	183	172	7 %	11
Scandinavia	164	126	30 %	38
Romania	105	69	51 %	36
Switzerland	67	69	-3 %	-2
Croatia	53	85	-37 %	-32
Rest of Europe	32	22	45 %	10
Serbia	29	32	-9 %	-3
Slovenia	15	22	-31 %	-7
Benelux	9	2	394 %	7
Bulgaria	7	8	-12 %	-1
Italy	5	5	0 %	0
Asia	2	2	0 %	0
Africa	2	1	100 %	1
Middle East	2	0	n.a.	2
Russia	1	1	0 %	0
Output volume total	5,810	5,708	2 %	102
thereof CEE	2,459	2,235	10 %	224

Output Volume, Revenue and Result

With € 5,809.94 million, the output volume of the Transportation Infrastructures segment grew slightly in the 2010 financial year. The boom in the Polish construction sector compensated for declines due in part to inclement weather in Germany, Austria and Hungary.

The revenue showed a similar development to the output volume, while the earnings before interest and taxes (EBIT) grew by 28 % to € 183.58 million. This higherthan-average growth of results and of the EBIT margin from 2.6 % to 3.2 % was possible despite the pressure in the Hungarian transportation infrastructures segment and the high write-downs for newly acquired railway construction equipment. This is largely thanks to the positive business development in Poland.

Order Backlog

Appreciable growth was registered in the order backlog, which grew by 6 % to € 4,735.39 million. Two markets were mainly responsible for this growth. Firstly, STRABAG continued its expansion in northern European markets. Group subsidiaries were awarded the contract to plan, expand and renovate the Täby Centrum shopping centre in Stockholm, Sweden. The volume of the order is in the triple-digit million euros. Because of the organisational history, the project is being carried out in the Transportation Infrastructures segment despite its nature as a building project.

Secondly, first successes can be seen in Romania from the state infrastructure investment programmes, which the national government had previously delayed. A STRABAG consortium was awarded the contract for the rehabilitation of national road DN 67B with a total order volume of € 89 million. STRABAG's share amounts to € 62 million (70 %). In November, the company added a further Romanian road construction order to its books: the construction of 33 km of motorway between Deva and Orăştie. The volume of the order amounts to € 178 million, of which 85 % is STRABAG's share.

Further new orders were registered in Poland, although without the same dynamism as earlier. The STRABAG Group was awarded the € 260 million contract to build the 36.5 km section of the S7 Expressway between Kalsk and Miłomłyn and will also build a section of the bypass around the town of Pabianice for € 102 million.

The field of construction materials can also report a large order. While the construction of the Koralm Tunnel in Austria falls under the Special Divisions & Concessions segment, the concrete supplies for € 50 million are handled internally by the construction materials team.

Employees

With 30,059 persons, the employee levels of the segments remained nearly unchanged from the year before. The high order backlog in Poland required the hiring of over 1,000 additional staff in that country. In most other countries, with the exception of northern Europe, the employee levels were reduced.

Outlook

The STRABAG Group aims to increase its output in the Transportation Infrastructures segment by a few percent in the 2011 financial year. The forecast published by the company in November 2010 thus remains unchanged. The output volume and the result are influenced by the following developments and framework conditions:

As reported, French construction materials manufacturer Lafarge and STRABAG in May 2010 agreed to a strategic partnership to bundle their cement activities in several Central European countries. Operations were planned to begin on 1 January 2011, but the cartel authorities did not approve the transaction until February 2011.

In the area of mobile construction materials, STRABAG sees output growth for the group resulting from new large-scale projects. In the areas of asphalt, stone/gravel and concrete, however, the traditional country-wide business must still be classified as difficult. The price level remains largely low, despite a regional market recovery.

In road construction, STRABAG continues to focus on the expansion in northern European markets in response to the declining or already weak level of public-sector tenders in the core markets of Austria and Germany as well as the generally low prices. In the Czech Republic, an important market for transportation infrastructures, no larger tenders for construction lots are planned by the public sector in 2011, and projects which have already been awarded have been suspended. A further significant reduction in output and result can therefore be expected in this market.

In addition to the classic transportation infrastructures business, track and railway construction is becoming increasingly important too. In Hungary, STRABAG is participating in several tenders in this area. Even in the Czech Republic, railway contracts worth CZK 10-20 billion (€ 400-800 million) are expected to be tendered in 2011. In 2010, the company successfully entered this business field in Austria. Still, as was the case in Germany the year before, high start-up costs can be expected here for the procurement of large track construction equipment.

Selected Projects in the Transportation Infrastructures Segment

Country	Project	Order Volume € Mln	Percentage of total group order bac klog %
Sweden	Täby Centrum	150	1.0 %
Poland	S7 Kalsk-Milomlyn	149	1.0 %
Romania	Motorway Deva-Orastie	121	0.8 %
Poland	A2 Strykow-Konotopa	99	0.7 %
Czech Republic	D3 Tabor-Veseli	85	0.6 %
Denmark	M51 Kliplev-Sønderborg	65	0.4 %
Netherlands	A Lanes A15	62	0.4 %

Special Divisions & Concessions

The Special Divisions & Concessions segment includes, on the one hand, the field of tunnelling/specialty foundation engineering. On the other hand, the concessions business also represents a further important area of business, with global project development activities in Transportation Infrastructures in particular. The real estate business, which stretches from project development and planning to construction and operation and also includes the property and facility services business, completes the wide range of services of the segment and of the group. Finally, STRABAG bundles its services in non-European markets in this segment.

	2010 € MLN.	chang e 2009–2010 %	2009 € Mln	chang e 2008–2009 %	20081) € Mln
Output volume	2,518	-7 %	2,716	92 %	1,417
Revenue	2,672	-6 %	2,850	92 %	1,483
Order backlog	4,318	11 %	3,880	56 %	2,480
EBIT	-16	n.a.	34	-42 %	59
EBIT margin
as a % of revenue	-0.6 %		1.2 %		4.0 %
Employees	19,867	-4 %	20,678	300 %	5,174

Output Volume Special Divisions & Concessions

€ Mln	Output Volume 2010	Output Volume 2009	chang e %	Chang e absolute
Germany	1,100	1,188	-7 %	-88
Middle East	291	339	-14 %	-48
Austria	175	231	-24 %	-56
Americas	155	96	62 %	59
Switzerland	138	181	-24 %	-43
Africa	132	164	-20 %	-32
Italy	117	99	18 %	18
Asia	82	67	22 %	15
Scandinavia	72	44	64 %	28
Poland	70	46	54 %	24
Hungary	67	190	-65 %	-123
Benelux	46	24	89 %	22
Czech Republic	33	7	368 %	26
Rest of Europe	11	3	238 %	8
Slovakia	10	11	-7 %	-1
Russia	7	7	0 %	0
Romania	7	0	100 %	7
Croatia	2	3	-33 %	-1
Slovenia	2	1	100 %	1
Ireland	0	15	-100 %	-15
Output volume total	2,518	2,716	-7 %	-198
thereof CEE	199	265	-25 %	-66

Output Volume, Revenue and Result

The output volume of the segment in the 2010 financial year fell by 7 % to € 2,517.84 million. This decline is largely due to the lack of orders and the conclusion of largescale projects in tunnelling in the core markets of Austria, Germany, Switzerland and Hungary.

A significant reduction was registered in both the output volume and the revenue in this segment. At the same time, the earnings before interest and taxes (EBIT) moved from positive to negative territory. The negative EBIT of € -15.54 million was the result of high losses among projects in non-European markets as well as in tunnelling projects in Hungary and Sweden which could not be compensated for by the positive results in Poland and in the property and facility management business.

Order Backlog

The order backlog, by comparison, showed a clear plus of 11 % to € 4,318.36 million, thanks to a number of new large orders. STRABAG achieved significant results in the field of Public Private Partnerships (PPP): the company will build Denmark's first concession motorway, the M51 from Kliplev to Sønderborg, and will plan, build and operate the A15 motorway between Maasvlakte and Vaanplein in the Netherlands as part of a consortium.

In the field of PPP building construction, a STRABAG bidding consortium was awarded the contract to build and operate several schools in Mülheim, Germany. In this home market, STRABAG is also acting as project developer for the Donnersberger Höfe residential building project in Munich and the Forum Mittelrhein shopping centre in Koblenz.

STRABAG can also report of successful order acquisitions in non-European markets, which are bundled in the Special Divisions & Concessions segment regardless of the nature of the service, i.e. across all business units. In Abu Dhabi, one of the United Arab Emirates, a STRABAG subsidiary is expanding the Takreer Refinery in Ruwais. In Saudi Arabia, STRABAG was awarded the contract to build two warehouses at the industrial port of Jubail, a large industrial city on Saudi Arabia's Persian Gulf coast.

Two tunnelling orders top off the review of the segment. In October 2010, STRABAG signed a contract with client ÖBB Infrastruktur AG for Austria's largest construction order, Lot 2 of the Koralm Tunnel, with a volume of € 570 million. Of this amount, the STRABAG Group's share is 85 %. The company also landed a smaller order worth around € 59 million with the Küblis bypass tunnel in the Swiss canton of Grisons.

Employees

The workforce level fell by 4 % to 19,867 employees. A significant reduction of more than 1,200 people in the Middle East and a further reduction in Hungary and Austria must be mentioned in this regard. In the home market of Germany, in comparison, the employee level grew by more than 800 people as a result of acquisitions.

Outlook

The Special Divisions & Concessions segment would like to increase its output in the 2011 financial year by slightly more than 10 % to € 2.8 billion. As the segment furnishes quite diverse services, the outlook on results must be made differentiated according to the individual areas:

STRABAG's Project Development Building Construction business is seeing the first signs of a recovery of the real estate market in Germany. Last year, STRABAG sold several commercial properties at attractive conditions, allowing the business field to continue to focus on commercial real estate in the mid-double-digit million euro range. STRABAG Project Development has also been active in the development of apartment buildings, i.e. residential properties for global investors since 2010. This business is to be expanded geographically to the countries of Central and Eastern Europe.

The PPP Transportation Infrastructures business is developing in a satisfactory manner. Exceptions are Hungary and the countries of South-East Europe where the conditions for concession models and their financing are proving to be difficult.

The same is true for tunnelling, which, in response to the modest market situation in South-East Europe, but also in Austria and Switzerland, is shifting its contract acquisition efforts onto international large-scale projects both within as well as outside of the core markets. Bids are currently being prepared in northern Europe and in North Africa. In view of the unrest in the latter region, however, STRABAG is currently taking a wait-and-see approach and has temporarily suspended acquisitions for new projects.

The result in Property and Facility Services in the past financial year was above that of the previous year, thanks to increased productivity and savings in structural costs. A higher output is expected for 2011, although STRABAG is still fighting price pressure in Germany. The effect on the result can only partially be compensated by a higher volume of orders. To be able to offer clients a broader range of services, STRABAG Property and Facility Services acquired German building cleaning company Rimex in 2010 and expanded its portfolio with the addition of infrastructure facility management. The company succeeded in expanding geographically with the acquisition of the Czech Republic's ECM Facility a.s.

Country	Project	Order Volume € Mln	Percentage of total group order bac klog %
Austria	Koralm Tunnel 2	412	2.8 %
Poland	A2 Segment II, Tunnelling & Concession	310	2.1 %
Italy	Val di Chienti	307	2.1 %
Canada	Niagara Tunnel	233	1.6 %
India	Rohtang Pass Highway Tunnel Lot 1	133	0.9 %
Netherlands	A Lanes A15, Bridges	110	0.7 %
United Arab Emirates	Takreer Non Process Building Ruwais	75	0.5 %

selected projects in the special divisions & consessions segment

RISK MANAGEMENT

The STRABAG Group is subject to a number of risks in the course of its business activities. These risks are identified and assessed using an active risk management system and dealt with using an appropriate risk policy.

The group's goals are defined at all company levels. This was a prerequisite to setting up processes for the timely identification of potential risks standing in the way of the achievement of company objectives. The organisation of STRABAG's risk management builds on project-related jobsite and acquisitions controlling, supplemented by the higher-level assessment and steering management. The

External Risks

risk controlling process includes a certified quality management system, internal group guidelines for the workflow in the operating units, a central administration, controlling, auditing and contract management. Through the establishment of company-wide quality standards in quotation processing and supplemental services management, the centrally organised contract management department can better assert claims for outstanding debt.

The group's internal risk report defines the following central risk groups:

The entire construction industry is subject to cyclical fluctuations and reacts to varying degrees depending on region and sector. Overall economic growth, development of the construction markets, the competitive situation, the conditions on the capital markets and technological changes in construction can all result in risks. These risks are continually observed and monitored by the central departments and operating units. Changes in external risks lead to adjustments in STRABAG's organisation, market presence and range of services as well as the adaptati-

on of strategic and operating planning. STRABAG further responds to market risk with geographic and productrelated diversification in order to keep the influence on the company's success exerted by an individual market or by the demand for certain services as low as possible. To avoid bearing the entire risk of rising prices by itself, STRABAG makes efforts at signing cost escalation clauses and "cost-plus-fee" contracts in which the client pays a previously agreed margin on the costs of the project.

Operating Risks

The operating risks primarily include the complex risks of project selection and execution. STRABAG keeps acquisition lists in order to review the project choice. Business transactions requiring consent are reviewed and approved by business unit and sub-division managers or by division managers according to internal rules of procedure. Bids of € 2 million or more, depended on their risk profile, must be analysed by cross-segmental commissions and reviewed for their technical and economic

Financial Risks

feasibility. Cost accounting and expense allocation guidelines have been set up to assure a uniform process of job costing and to establish a performance profile at our construction sites. Project execution is managed by the construction team on site and controlled by monthly target/performance comparisons; at the same time, our central controlling provides constant commercial backing, ensuring that risks of individual projects do not endanger the continuance of the company.

Under financial risks, STRABAG understands risks in financial matters and in accounting, including instances of manipulation. Special attention is paid to our liquidity and accounting receivable management, which is secured through constant financial planning and daily status reports. Compliance with internal commercial guidelines is guaranteed by the central accounting and controlling departments, which are also responsible for internal reporting and the periodic planning process.

Risks from possible instances of manipulation (acceptance of advantages, fraud, deception or other infringements of the law) are monitored by all business areas in general and by the internal audit department in particular. STRABAG last commissioned PwC Wirtschaftsprüfung GmbH in 2007 to review and assess the group's compliance systems and the activities designed to combat corruption and unethical behaviour. The results were presented to the management board of STRABAG SE and the auditors' recommendations were passed on to the relevant departments for implementation.

In order to convey STRABAG's values and principles, the group drew up its Code of Ethics and internal Compliance Guidelines in 2007. The values and principles contained within these documents are reflected in the guidelines and instructions of the STRABAG companies and divisions. Compliance with these values and principles is expected not only from the members of the management and supervisory boards as well as from other managementlevel employees but from all group employees. The Compliance Guidelines and the Code of Ethics are designed to guarantee honest and ethical business practices. The Code of Ethics is available for download at www.strabag. com -> STRABAG SE -> Code of Ethics.

Organisational Risks

Risks concerning the design of personnel contracts are covered by the central human resource administration with the support of a specialised database. The design

Personnel risks

Past experience has shown that having a highly qualified and motivated workforce is an important factor in competition. In order to properly assess the potential of employees, STRABAG uses an IT-supported aptitude diagnostics process, the so-called behaviour profile analysis. and infrastructure of the IT landscape (hardware and software) is the responsibility of the central IT department, controlled by the international IT steering committee.

In subsequent feedback talks and employee appraisal interviews, employees and their supervisors analyse the results and agree on specific training and further education measures.

Investment risks

STRABAG can exert influence on the management of associated companies through its shareholder position and, if applicable, any existing advisory functions. The shares in asphalt and concrete mixing companies usually involve minority holdings, which is typical for the sector.

Political Risk

The group also operates in countries which are currently experiencing political instability. Interruptions of construction activity, restrictions on ownership interests of foreign With these companies, economies of scope are at the fore. Detailed information regarding interest risk, currency risk, credit risk and liquidity risk can be found in the Notes under point 26 Financial Instruments.

investors, and even dispossession or expropriations could be the consequence of political changes which could have an impact on the group's financial structure.

A review of the current risk situation reveals that the reporting period shows no risks which jeopardised the company's existence, nor were there any visible future risks.

Report on key features of the internal control and risk management systems in relation to the financial reporting process

Introduction

The control structure as defined by the Committee of Sponsoring Organisations of the Treadway Commission (COSO) provides the basis for the description of the key features of the internal control and risk management systems. The COSO framework consists of five related components: control environment, risk assessment, control activities, information and communication, and monitoring.

The aim of the internal control system is to support management in such a way that it is capable of assuring internal controls in relation to financial reporting which are effective and which are improved on an ongoing basis. The system is geared to the compliance with rules and regulations and to creating conditions which are conducive to performing specific controls in key accounting processes.

Control environment

The corporate culture determines the control environment in which management and employees operate.

STRABAG is constantly working to improve its communication and to convey its corporate values as defined in the STRABAG Code of Ethics in order to guarantee moral standards, ethics and integrity within the company and in our dealings with others.

The implementation of the internal control system in relation to the financial reporting process is done on the basis of internal rules and guidelines. Responsibilities for internal control were adapted to fit the corporate organisation.

The internal audit department carries out periodic, unannounced inspections of all relevant business units as part of its responsibility for monitoring compliance with the law and corporate guidelines in the technical and commercial areas. The internal audit department also monitors the effectiveness of the compliance organisation. During these inspections, the internal audit department analyses the legality and correctness of individual actions. The internal audit department also conducts regular, independent reviews of compliance with internal guidelines in the area of accounting. The head of the internal audit department reports directly to the CEO.

Risk assessment

The management identifies and monitors risks relating to the financial reporting process, with a focus on those risks that are typically considered to be material.

The preparation of the financial statements requires regular forecasts, with the inherent risk that the actual future development will deviate from the forecast. This especially affects the following matters/items of the consolidated financial statements: assessment of unfinished construction projects, recognition and measurement of provisions (including social capital), the outcome of legal disputes, the collectability of receivables as well as the recoverability of investments and goodwill. In individual cases, external experts are called in or publicly available sources are considered in order to minimise the risk of a false assessment.

Control Activities

All control activities are applied in the current business process to ensure that errors or deviations in financial reporting are prevented or detected and subsequently corrected. The control activities range from a management review of the period results to specific monitoring of accounts to the analysis of ongoing accounting processes.

It is the responsibility of the management to design the levels of hierarchy in such a way that an activity and the control of that activity are not performed by the same person ("four-eyes" principle).

IT security control activities represent a cornerstone of the internal control system. The separation of sensitive activities is supported by a restrictive approach to IT access authorisation. For its accounting and financial reporting, the company mainly uses self-developed software which reflects the unique features of the construction sector. The effectiveness of the financial reporting system is further assured through automated IT controls included in the system.

Information and Communication

The management regularly updates the rules and regulations for financial reporting and communicates them to all employees concerned. Regular discussions regarding the financial reporting and the rules and regulations in this context take place in various committees. These committees are composed of the corporate management as well as the department head and senior staff from the accounting department. The committee''s work aims, amongst others, at guaranteeing compliance with accounting rules and regulations and identifying and communicating weak points and potential areas for improvement in the financial reporting process. Accounting employees receive regular training regarding new methods of national and international financial reporting in order to identify risks of unintended misreporting at an early stage.

Monitoring

The management and supervisory boards bear responsibility for the ongoing company-wide monitoring. Additionally, the remaining management levels – all the way to the department heads – are responsible for the monitoring of their respective areas of responsibility. Controls and plausibility checks are carried out at regular intervals. The internal audit department is also involved in the monitoring process.

The top management receives monthly summary financial reports on the development of the output volume, the results of the respective segments and countries, and the liquidity. Financial statements to be published are submitted for final appraisal by the senior accounting staff and the commercial management board members before they are passed on to the audit committee of the supervisory board.

Employees

In the past financial year, STRABAG employed an average of 73,600 employees, of which 32,053 were whitecollar and 41,547 blue-collar workers. In the Transportation Infrastructures segment, the number of employees remained nearly stable at about 30,000; in the Building Construction & Civil Engineering segment, the employee level fell by 7 % to about 18,300; in the Special Divisions & Concessions segment, the number of employees shrank by 4 % to about 19,900.

To assure effective, long-term personnel development, STRABAG has at its disposal a number of centrally standardised programmes and IT-supported tools and manages and monitors their application (e.g. applicant database, training database, employee database, aptitude diagnostics analysis, group academy, trainee programme). The operating management employees, as human resource decision-makers, make use of these during the regular employee appraisal interview as a central management instrument to agree on employee objectives that are targeted to the employee's specific field and career and which are in line with their personal skills and qualifications. In the recruitment process, the management is assisted by personnel representatives in the individual countries using the same aforementioned tools and instruments.

Research and Development

For a long time, cost optimisation was seen as a strategic guiding principle for competitiveness in the building business. But building requires a broad spectrum of technologies and know-how in order to come up with technically convincing solutions. The group specifically promotes all those innovation activities which help projects to be executed more efficiently and with a higher level of quality. The aim is to implement research and development projects in cooperation with the operating divisions in order to more quickly bring additional knowhow to the construction site. Countless interdisciplinary development projects are ongoing every year.

Zentrale Technik (ZT), the group's central technical department, bundles the group's technical know-how and is in overall charge during the acquisition, planning and implementation of research and development projects. Organised as a central division with over 630 highly qualified employees at 15 locations, ZT reports directly to the CEO. The department provides services for the groupwide support of the operating units in the areas of tunnelling and civil engineering, construction engineering and turnkey construction. The range of services covers the entire construction process, from the early acquisitions phase and bids processing to execution planning and site management. Research and development activities include the areas of building and construction physics, software, information & communication technology, energy, construction materials technology, civil engineering and tunnelling, transportation infrastructures and safety. ZT also fosters international innovation networks.

As a technology leader in all areas of turnkey construction, STRABAG emphasises sustainable construction that requires comprehensive solutions, with a special focus on energy efficiency in the building life cycle. As a logical consequence of this development, the group management has decided to expand its life cycle assessment project to include all group products and processes. This will serve both to address increasing customer demands for sustainability and to better identify the efficiency potential as regards resource needs in general and energy needs in particular.

A central topic for the innovation activities is that of renewable energy. One goal is to offer the turnkey construction of offshore wind power facilities. The building application for the production sites has already been filed, the project schedule is currently in planning, and full-scale stability trials are currently underway on the behaviour of flat foundations under rough offshore conditions. Projects are also under development in the field of storage technologies to mitigate the natural fluctuations in electricity and heat generation from renewable sources. Other projects include pilot tidal power facilities or ways of capturing geothermal heat during machine tunnelling.

In traditional building construction, some of the highrises built in recent years show how optimisations in construction and building materials are giving planners and estimators a new sense of flexibility. Methods are also being developed to better understand material ageing using state-of-the-art sensor technologies.

A building's equipment and services are decisive factors for the efficiency of its operations and the quality of the indoor climate. Relevant projects carried out in the reporting year include thermally activated building systems which operate depending on weather forecasts, as well as building simulations and energy needs analyses. The aim and content of these projects is to achieve farreaching optimisations regarding the operational energy needs while maximising the comfort of the indoor climate and increasing planning security. Examples include the analysis of predictive controls for thermally activated building systems using weather forecast data and simulations to analyse the thermal behaviour of and light conditions in buildings.

A great deal of attention has recently been given to the development of "5D planning" in construction. 5D is the group's Building Information Model (BIM), which stands for the model-based, integrative work of all project participants across all project phases. This way of working is currently being integrated into the ARRIBA estimation software with the aim of expanding ARRIBA, which will then be called iTWO, through the addition of construction operation processes and graphic functions. In the year under report, this new generation of the estimation software was used to realise models for construction shells and to determine quantities in the Building Construction & Civil Engineering segment.

TPA Gesellschaft für Qualitätssicherung und Innovation (TPA Company for Quality Assurance and Innovation) is STRABAG's competence centre for quality management. Its activities include research and development related to building materials production, as well as materials inspections, job safety, and environment- and waste-related matters.

Together with the management of the operating units, ZT and TPA, as internal competence centres, have as their goal the extension of the group's competitive advantage through technical and high-quality solutions while sustaining the natural resources at the same time.

The STRABAG Group's EFKON AG subsidiary provides the group with expertise in the research and development of intelligent transportation systems in general and electronic toll collection solutions in particular. In recent years, EFKON has engaged in some very successful activities in the field of Car2Car communications, especially as a result of its cooperation in EU research projects. Based on the new global ISO standard known as CALM, EFKON developed a worldwide unique microchip for intelligent infrared communications between moving cars.

In the field of development, CEN microwave technology was further developed in addition to the key technologies

of the existing toll solutions (satellite and active infrared). Another focus of the activities is on toll enforcement. Developments include a new product to help the Austrian motorway authority ASFINAG automatically enforce toll stickers in Austria, as well as a portable DSRC-based toll monitoring unit to enforce the toll for trucks on German motorways.

EFKON's development activities also focused on the expansion and adaptation of tolling technologies and products in view of the upcoming European Electronic Toll System (EETS), which will be implemented stepwise from 2013 to allow continuous tolling with a single device from North Cape all the way to Sicily. Further developments in the field of high-performance video technology will also allow simple, mobile or stationary toll enforcement in moving traffic, thus directly and indirectly increasing toll income and fairness.

During the 2010 financial year, the STRABAG Group spent about € 14 million on research, development and innovation activities.

Environment

The STRABAG Group invests in the research and development of sustainable construction materials and innovative technologies in various areas of the company.

The group's building logistics and transport unit (BLT) sees to the reliable and economic provision of all operating areas and service companies with construction materials and equipment. Efficient planning processes and resource use helps to minimise waste, leading to cost reduction and lower emissions. The group's railway transport company allows STRABAG to shift the transport of construction material and equipment from the road onto rail. In this way, STRABAG reduced its CO2 emissions by around 33,900 tonnes in 2010.

In the area of procurement, we strive for the efficient and responsible management of the supply chain with respect to economic, environmental and social opportunities. Particularly in view of sustainable building, STRABAG has committed itself to following even stricter guidelines for the procurement of materials and is focusing on certified environmentally-friendly construction materials. It is important for us that suppliers fulfil certain pre-defined criteria. We want to ensure a resource-friendly use of energy and raw materials in the preparation and delivery of our services. It is our goal that the materials used and the services delivered by us impact the environment as little as possible.

Innovations were also made in the field of construction itself. As part of a sustainable building initiative, STRABAG is committed to promoting the implementation of new environmental building standards. These include the efficient, resource-friendly use of energy in buildings and sustainable construction methods.

Material Use	2009	2008	chang e %
Fuel total	€ 178.19 million	€ 145.44 million	23 %
Natural and liquid gas	€ 24.89 million	€ 24.82 million	0 %
Heating oil	€ 14.80 million	€ 15.69 million	-6 %
Electricity	€ 47.72 million	€ 48.12 million	-1 %
Stone/Gravel	61.53 million tonnes	65.72 million tonnes	-6 %
Asphalt	13.25 million tonnes	15.13 million tonnes	-12 %
Concrete	5.12 million m³	5.24 million m³	-3 %

Disclosures Pursuant to Section 243a Para 1 UGB

• The share capital of STRABAG SE amounts to € 114,000,000 and consists of 114,000,000 fully paid-in, no-par value shares with a pro-rata value of € 1 per share of the share capital. 113,999,997 shares are bearer shares and are traded on the Prime Market Segment of the Vienna Stock Exchange. Three shares are registered shares. Each bearer share and each registered share accounts for one vote (one share – one vote). The nomination rights associated with registered shares No. 1 and No. 2 are described in more detail under Item 4. 1.
• The Haselsteiner Group (Haselsteiner Familien-Privatstiftung, Dr. Hans Peter Haselsteiner), the Raiffeisen Group (RAIFFEISEN-HOLDING NIEDERÖSTERREICH-WIEN reg.Gen.m.b.H, BLR-Baubeteiligungs GmbH, "Octavia" Holding GmbH), the UNIQA Group (UNIQA Versicherungen AG, UNIQA Beteiligungs-Holding GmbH, UNIQA Personenversicherung AG, UNIQA Erwerb von Beteiligungen Gesellschaft m.b.H., UNIQA Sachversicherung AG, Raiffeisen Versicherung AG) and Rasperia Trading Limited (controlled by Oleg Deripaska), as shareholders of STRABAG SE, have signed a syndicate agreement governing (1) nomination rights regarding the supervisory board, (2) the coordination of voting during the Annual General Meeting, (3) restriction on the transfer of shares and (4) joint development of the Russian market as a core market. The Haselsteiner Group, the Raiffeisen Group together with the UNIQA Group, and Rasperia Trading Limited each have the right to nominate two members of the supervisory board. The syndicate agreement also requires the syndicate partners to exercise their voting rights from syndicated shares unanimously at the Annual General Meeting of STRABAG SE. The syndicate agreement further foresees restrictions on the transfer of shares in the form of mutual pre-emptive rights as well as a minimum shareholding on the part of the syndicate partners. 2.
• To the knowledge of STRABAG SE, the following shareholders held a direct or indirect interest of at least 10 % of the share capital of STRABAG SE on 31 December 2010: 3.

Haselsteiner Familien-Privatstiftung	29.5 %
Raiffeisen-Holding Niederösterreich-Wien reg.Gen.m.b.H. (Raiffeisen Group)	15.5 %
UNIQA Versicherungen AG (UNIQA Group)	15.0 %
Rasperia Trading Limited	17.0 %

The remaining shares of the share capital of STRABAG SE, amounting to 23 % of the share capital, are in free float. In addition to its 17 % interest, core shareholder Rasperia Trading Limited also holds an option, valid until 15 July 2014, to buy a further 8 % of STRABAG SE from the other core shareholders mentioned above.

• Three shares are as mentioned under Item 1 registered shares entered in the shareholder register. Registered shares No. 1 and No. 3 are held by the Haselsteiner Group and registered share No. 2 is held by Rasperia Trading Limited. Registered shares No. 1 and No. 2 allow their bearers to nominate a member each to the supervisory board of STRABAG SE. 4.
• No employee stock option programmes exist. 5.
• No further regulations exist beyond Items 2 and 4 regarding the nomination and recall of members of the management and supervisory boards or regarding changes to the Articles of Association which do not result directly from relevant law and legislation. 6.
• The management board of STRABAG SE was authorised by resolution of the 6th Annual General Meeting of 18 June 2010, in accordance with Sec 65 Para 1 No 8 and Para 1a and 1b of the Austrian Stock Corporation Act (AktG), to acquire bearer or registered no-par shares of the company on the stock market or over the counter to the extent of up to 10 % of the share capital during a period of twelve months from the day of the resolution at a minimum price per share of EUR 1 and a maximum price per share of EUR 34. The purpose of the acquisition may not be to trade with own shares. The authorisation can be exercised in full or in part or in several partial amounts for one or several purposes by the company, a subsidiary (Sec 228 Para 3 UGB) or third parties acting on behalf of the company. The management board can decide to acquire shares on the stock exchange but must inform the supervisory board following decision to do so. Over-the-counter purchases require prior approval by the supervisory board. The management board was further authorised, in accordance with Sec 65 Para 1b AktG, for a period of five years from this resolution, to sell or assign its own shares, with approval by the supervisory board, in a manner other than on the stock market or through a public tender, to the exclusion of the shareholders' buyback rights (subscription rights), and to determine the conditions of sale. The authorisation can be exercised in full or in part or in several partial amounts for one or several purposes by the company, a subsidiary (Sec 228 Para 3 UGB) or third parties acting on behalf of the company. At the same time, the existing authorisation to buy back own shares as per resolution by the Annual General Meeting of 19 June 2009 was cancelled. 7.
• There exist no significant agreements to which STRABAG SE is party and which would become effective, change or end due to a change of ownership in STRABAG SE following a takeover offer. 8.
• No compensation agreements exist between STRABAG SE and its management and supervisory board members or employees in the event of a public takeover offer. 9.

Supporting INFORMATION

At the beginning of March 2009, an accident occurred during underground construction at the South Lot for the North-South urban metro line in Cologne, resulting in the collapse of the Historical Archive of the City of Cologne and significant portions of two neighbouring buildings. Debris collapsed into a hole which opened next to the North-South construction site at the Waidmarkt crossover junction. Two people were trapped under the rubble, and rescuers were only able to recover their bodies.

Construction is being carried out by a joint venture (JV) of Bilfinger Berger AG, Wayss & Freytag Ingenieurbau AG and our company. The JV is led by Bilfinger Berger AG on the technical side and by Wayss & Freytag Ingenieurbau AG on the commercial side. Our company holds a 33.3 % interest in the JV.

The cause of the collapse remains unknown. The public prosecutor's office began an investigation against unknown perpetrators in March 2009. Independent proceedings for the taking of evidence are being conducted at the District Court in Cologne. The court-appointed expert is still in the investigation phase.

As a result of investigations at other construction sites for the North-South metro line, in particular involving Heumarkt station, the construction supervision of the JV and of the Cologne Transport Authority (KVB) have been the object of public criticism since the beginning of 2010. In response to certain irregularities, the public prosecutor's office is investigating against members of the JV. The prosecuting authorities have said that, at this time, there are no indications that these investigations are related to the accident of March 2009. An intensive investigation of the construction sites concerned by the JV and by experts has revealed no problems which could cast doubt on safety. At the end of 2010, the public prosecutor's office announced the finding that missing steel bars did not lead to the collapse.

We continue to believe that the incident will not result in significant damages for the company.

Related Parties

Business transactions with related parties are described in item 28 of the Notes

Outlook and Objectives

In contrast to the economy as a whole, a decline was registered once more in the European construction sector in 2010. As a result of the overall economic recovery, which was reflected in a positive gross domestic product (GDP) in 2010, slight growth is first expected in 2011, with accelerated growth in 2012. Both the GDP and the construction volume developed quite differently in the individual markets of Western and Eastern Europe. While the construction output volume in Western Europe is recovering only slowly and will not enter positive territory until 2012, the construction industry in Eastern Europe has fared better throughout the economic crisis thanks to the booming Polish market. Particularly the continued need to address infrastructure deficiencies is proving to be a factor driving further growth in the region.

In the past financial year, the European construction sector benefited from the state economic stimulus programmes that provided investments for public-sector infrastructure projects such as the construction of roads and educational facilities. As the stimulus programmes were replaced by austerity packages at the end of the year, as was the case in STRABAG's home market of Germany, the Building Construction & Civil Engineering segment, which relies mainly on private clients, will be of greater importance in the future.

This again shows the advantages of the STRABAG strategy. The geographical diversification of the activities and the broad product portfolio help compensate for the slowdown in certain markets through stronger engagement in other, more successful markets. To further diversify the business and spread the risk, STRABAG is expanding its activities in property and facility management as well as in niche markets such as railway and waterway construction.

On the basis of the expected market development and the secured order backlog (€ 14.7 billion at the end of 2010), STRABAG set its financial objectives for the coming years and, at its Capital Markets Day in November 2010, announced its business guidance until the year 2012. The company expected a slight decline in output volume for 2010 from € 13.0 billion to € 12.9 billion. The actual output volume in the amount of € 12.8 billion was very close to the forecast. The company expects to raise the output volume by 5 % to € 13.5 billion in 2011 and by 1.5 % to € 13.7 billion in 2012.

STRABAG SE expected the adjusted earnings before interest and taxes (EBIT) for 2010 to reach € 280 million (2009: € 283 million; unadjusted, the EBIT would include a positive one-off effect from the Viamont acquisition in the amount of € 10.6 million). The actual adjusted earnings – amounting to € 288.35 million – were slightly higher than forecast. The EBIT margin of 2.3 % – calculated based on the output volume – will decrease to 2.2 % in the years to come for an EBIT of € 295 million in 2011 and € 300 million in 2012.

STRABAG expects the net interest income and the minority interest in earnings in 2010 and 2011 to remain at € -20 million and € 20-25 million, respectively. STRABAG raised its forecast for the tax rate from 27-28 % to approx. 30 % due in part to the fact that no full tax relief could be carried out for losses through the capitalisation of tax loss carryforward.

Events After the Reporting Period

The material events after the reporting period are described in item 31 of the Notes.

Auditor's Report

Report on the Financial Statements

We have audited the accompanying financial statements, including the accounting system, of

STRABAG SE, Villach,

for the fiscal year from 1 January 2010 to 31 December 2010. These financial statements comprise the balance sheet as of 31 December 2010, the income statement for the fiscal year ended 31 December 2010, and the notes.

Management's Responsibility for the Financial Statements and for the Accounting System

The Company's management is responsible for the accounting system and for the preparation and fair presentation of these financial statements in accordance with Austrian Generally Accepted Accounting Principles. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditors' Responsibility and Description of Type and Scope of the statutory audit

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with laws and regulations applicable in Austria and Austrian Standards on Auditing. Those standards require that we comply with professional guidelines and that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

Our audit did not give rise to any objections. In our opinion, which is based on the results of our audit, the financial statements comply with legal requirements and give a true and fair view of the financial position of the Company as of 31 December 2010 and of its financial performance for the year from 1 January 2010 to 31 December 2010 in accordance with Austrian Generally Accepted Accounting Principles.

Report on Other Legal Requirements (Management Report)

Pursuant to statutory provisions, the management report is to be audited as to whether it is consistent with the financial statements and as to whether the other disclosures are not misleading with respect to the Company's position. The auditor's report also has to contain a statement as to whether the management report is consistent with the financial statements and whether the disclosures pursuant to Section 243a UGB (Austrian Commercial Code) are appropriate.

In our opinion, the management report is consistent with the financial statements. The disclosures pursuant to Section 243a UGB (Austrian Commercial Code) are appropriate.

Linz, April 8th 2011

KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft

Mag. Ernst Pichler Wirtschaftsprüfer

Mag. Peter Humer Wirtschaftsprüfer

(Austrian Chartered Accountants)

This report is a translation of the original report in German, which is solely valid.

Publication of the financial statements together with our auditor's opinion may only be made if the financial statements and the management report are identical with the audited version attached to this report. Section 281 paragraph 2 UGB (Austrian Commercial Code) applies.

Statement of all Legal Representatives

Statement of all Legal Representatives

We confirm to the best of our knowledge that the consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the group as required by the applicable accounting standards and that the group management report gives a true and fair view of the development and performance of the business and the position of the group, together with a description of the principal risks and uncertainties the group faces.

We confirm to the best of our knowledge that the separate financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the parent company as required by the applicable accounting standards and that the management report gives a true and fair view of the development and performance of the business and the position of the company, together with a description of the principal risks and uncertainties the company faces.

Villach, 8 April 2011

Board of Management

Dr. Hans Peter Haselsteiner Chairman of the Management Board Responsibilities for Central Staff Units, BMTI 01, BRVZ 02, TPA 04, BLT 05 Central Division and technical Responsibilities for Building Construction & Civil Engineering of Russia and Neighbouring Countries

Ing. Fritz Oberlerchner Vice Chairman Technical Responsibilities for Transportation Infrastructures

Dr. Thomas Birtel Commercial Responsibilities for Building Construction & Civil Engineering

Dr. Peter Krammer Technical Responsibilities for Building Construction & Civil Engineering (excluding Russia and Neighbouring Countries)

DI Siegfried Wanker Technical Responsibilities for Special Divisions & Concessions (since 1 January 2011)

Mag. Hannes Truntschnig Commercial Responsibilities for Transportation Infrastructures, Special Divisions & Concessions