management report - PORR AG

THE MANY FACES 

OF SUCCESS: 

ANNUAL REPORT 

2005

_ Production output up 21.8% to 

record level of approx. €2.3 billion 

_ Foreign share of production 

output raised by 2.5 percentage 

points to 31.2% 

_ EBT improves by one third to 

€32.4 million 

_ Return on Capital Employed 

increases from 7.2% to 9.9% 

_ Equity ratio expanded from 

15.3% to 16.4% despite higher 

balance sheet total

KEY DATA 

Values in million € 2005 Change 2004 2003 

PORR GROUP 

Gross revenues 1,828.2 19.2% 1,533.1 1,478.8 

Production output 2,258.0 21.8% 1,854.1 1,927.2 

Of which domestic 1,553.5 17.6% 1,321.4 1,345.8 

Of which foreign 704.5 32.3% 532.7 581.4 

Foreign share of total production output (in %) 31.2 2.5 PP 28.7 30.2 

Order receipts 2,219.8 11.3% 1,994.8 1,945.4 

Orders on hand at year end 1,465.3 - 2.5% 1,503.4 1,362.7 

Average number of employees 10,241 8.9% 9,406 9,527 

Equity capital (including profits due to minorities) 251.0 13.2% 221.8 228.8 

Investments 66.7 - 53.2% 142.6 109.6 

Cashflow (from operating activities) 64.2 62.5% 39.5 82.6 

Balance sheet total 1,527.6 5.4% 1,449.8 1,697.9 

EBIT 49.3 12.3% 43.9 47.5 

EBIT margin (in %) 2.7 - 0.2 PP 2.9 3.2 

EBT 32.4 33.3% 24.3 23.3 

ROCE (in %) 9.9 2.7 PP 7.2 5.4 

ROE (in %) 12.8 1.2 PP 11.6 10.0 

Consolidated profits 25.2 22.9% 20.5 14.8 

PORR AG 

Price/earnings ratio (at end of year) 

Ordinary share 10.0 9.9% 9.1 12.8 

Preference share 9.0 20.0% 7.5 8.6 

Earnings per share (in €) 12.4 21.6% 10.2 7.4 

Dividend per share*,** 1.7 0.0% 1.7 1.7 

Payout ratio (as % of annual profit) 14.0 - 18.1% 17.1 23.7 

Market capitalisation (at end of year) 

Ordinary share 166.4 33.3% 124.8 126.1 

Preference share 72.2 48.0% 48.8 40.6 

* Value for 2005 to be proposed at the annual shareholders’ meeting on 29 th June 2006 

** Ordinary and preference shares

OUTPUT DISTRIBUTION BY SEGMENT 

IN MILLION € 

2,500 

REGIONAL OUTPUT DISTRIBUTION 


2,500 

DISTRIBUTION OF PRODUCTION OUTPUT 

2005 BY SEGMENT 


2,250 

2,000 

1,750 

107.7 

692.8 

711.3 

787.3 

2,250 

2,000 

1,750 

581.4 

532.7 

704.5 

S 3 787.3 

S 1 880.9 

1,500 

1,250 

1,000 

420.5 

465.0 

589.7 

1,500 

1,250 

1,000 

1,345.8 

1,321.4 

1.553.5 

750 

500 

706.2 

677.8 

880.9 

750 

500 

S 2 589.7 

250 

250 

0 

2003 2004 2005 

Civil Engineering / PTU Group 

Building Construction / PPH Group 

Road Construction / T-A Group 

Real Estate / UBM Group* 

0 

2003 2004 2005 

Domestic 

Foreign 

S 1 CIVIL ENGINEERING / PTU GROUP 

S 2 BUILDING CONSTRUCTION / 

PPH GROUP 

S 3 ROAD CONSTRUCTION / T-A GROUP 

* The Real estate/UBM Group segment has not 

been managed since the deconsolidation of 

the UBM Group in 2004. 

DEVELOPMENT OF 

KEY PROFITABILITY DATA 

IN % 

FOREIGN SHARE 

OF PRODUCTION OUTPUT 

IN % 

DIVIDEND AND EARNINGS PER SHARE 

IN € 

14 

12 

10 

10.0 

11.6 

12.8 

9.9 

35 

30 

25 

30.2 

28.7 

31.2 

14 

12 

10 

10.2 

12.4 

8 

6 

7.2 

20 

15 

8 

6 

7.4 

4 

2 

0 

3.2 

2.9 2.7 

5.4 

2003 2004 2005 

10 

5 

0 

2003 2004 2005 

4 

2 

0 

1.7 

1.7 

1.7 

2003 2004 2005 

EBIT margin 

ROE 

ROCE 

Earnings per share 

Dividend per share (ordinary and 

preference shares, value for 2005 

to be proposed at the annual shareholders’ 

meeting on 29 th June 2006

CONTENTS 

Letter to the shareholders 12 

Information on the management 15 

Supervisory board 17 

Overview of the PORR Group 18 

Corporate strategy 22 

Highlights and milestones 28 

Group structure 30 

BUSINESS AREAS OF THE PORR GROUP 

Porr Technobau und Umwelt AG 32 

Porr Projekt und Hochbau AG 38 

TEERAG-ASDAG AG 44 

Porr Solutions 

Immobilien und Infrastrukturprojekte GmbH 49 

PORR on the stock exchange 54 

Employees 58 

Research and development 60 

MANAGEMENT REPORT 

General economic environment 63 

Development of output 68 

Earnings situation 73 

Financial position 75 

PORR AG 77 

Risk management 78 

Forecast report 80 

SEGMENT REPORTS 

Civil Engineering / PTU Group 82 

Building Construction / PPH Group 84 

Road Construction / T-A Group 86 

CONSOLIDATED ACCOUNTS OF PORR AG 2005 90 

ANNUAL FINANCIAL STATEMENTS OF PORR AG 2005 130 

Glossary 136

WHICHEVER WAY 

YOU LOOK AT IT, 

PORR CONSTRUCTION 

HAS NO LIMITS. 

In an ever-changing world, you have to evolve to 

seize opportunities and generate growth. Over 

the decades, PORR has developed from a purely 

construction company into a multi-utility corporate 

group with many successful facets. The company 

units PPH, PTU, T-A and PS are now consolidated 

within the organisation of PORR. 

These days, business areas like financing, project 

development, infrastructure projects, real estate 

management and environmental technology are 

every bit as indispensable to our service portfolio 

as building construction. This comprehensive 

value chain enables us to maximise potential 

in diverse sectors and regions and open up new 

perspectives for the future. When you look at it 

from this angle, you will see there’s more to discover 

in PORR than ever before: we stand for 

construction unlimited.

THE SPORTING FACE OF PORR. 

THE 2008 EUROPEAN 

CHAMPIONSHIPS 

ALREADY HAS A WINNER. 

A SPECIALIST IN EVERY SENSE: Before you can claim to offer something special, you must 

have a perfect command of specialist areas. That’s because more and more construction 

projects for specific purposes demand specialist expertise, from planning to completion, 

facility management and utilisation. With our knack for implementing such a diversity of 

projects, we are a true specialist for every situation – and our experience and efficiency 

make us extremely competitive. 

The contract to upgrade the stadiums at Klagenfurt, Innsbruck and Salzburg provides an 

example of what we mean. Salzburg stadium is a multi-functional arena that needs to 

perform a number of functions: apart from the European football championships in 2008, 

it will also host rock concerts and motocross events. PORR triumphed in the bidding 

process partly because of its business proposal, and partly because of its ability to handle 

special constructional and technical requirements such as the covered stand, the 

artificial turf and the floodlighting. The 18,000-seater stadium opened in March 2003; 

by the time of the 2008 football tournament, further expansion will enable it to accommodate 

30,000 spectators.

THE FLEXIBLE FACE OF PORR.

WE BUILD STRUCTURES 

THAT HOUSE THE FUTURE. 

ACCELERATING DIVERSITY: Our wide-ranging service portfolio is 

extending the value chain; we are also making projects happen 

much faster thanks to the smooth coordination of all areas of 

the company. Given the networking of proficiency and expertise 

across the group, no challenge is too complex. 

The highly demanding Vienna Business & Science Park building 

construction project – conceived as a research and development 

centre – presented us with numerous technological and 

constructional obstacles to overcome. For example, the steel 

hall had to be built as a Faraday cage; powerful impedance 

coils needed to be housed in an 18-metre high wooden hall. 

Thanks to some faultless project development and planning, 

the general contractorship and the building construction of 

PORR, the halls – covering a total surface area of 13,000m 2 – 

were constructed in just 14 months. The specific needs of the 

client were met, to the letter and on schedule.

THE MOBILE FACE OF PORR. 

WHEN IT COMES TO RENOVATION, WE’RE ON THE RIGHT ROAD. 

FAST TRACK TO THE FUTURE: As a full-service supplier in the sectors of road construction, canal building and environmental 

protection as well as the field of sealing works, TEERAG-ASDAG AG ranks as a highly productive building block in the 

PORR Group alongside the areas of building construction and civil engineering. Given the rising requirement for maintenance 

and renovation and the urgent need to upgrade the motorway network in central and eastern Europe, this is a road that leads 

to massive business potential in the years ahead. 

In connection with the large-scale renovation of the A1 Westautobahn motorway, a 13.4km section of road surface was upgraded; 

19 bridges within this building section were also overhauled, with seven new ones being built. Five water pollution prevention 

systems were installed, and 23,000 metres of drainage pipelines were laid. Maintaining the flow of traffic throughout the 

construction period was a particular challenge; this was achieved by setting up diversion routes at certain points.

THE STYLISH FACE OF PORR. 

WE INVEST IN PLACES 

THAT ARE GOING PLACES. 

We also believe in the build-it-yourself approach. The development 

and marketing of real estate is a logical and lucrative 

step for a construction company – not least because this is a 

way to exploit fresh potential for expansion, particularly in 

booming markets. After all, who better to build a property 

than the company that planned it? 

Working with a local partner company, PORR SOLUTIONS has 

resurrected a jewel of yesteryear: the Villa Neretva in Mostar. 

A new section has also expanded the usage possibilities of the 

building: providing a total area of 3,950m 2 , luxury apartments, 

office space and catering premises are ready to be marketed. 

Doubly satisfying is the fact that the Villa Neretva stands as a 

symbol of the regeneration of Bosnia and Herzegovina.

COMMENT ORGANS STRATEGY BUSINESS AREAS STOCK EXCHANGE EMPLOYEES R&D MANAGEMENT REPORT SEGMENTS CONSOLIDATED ACCOUNTS INVESTMENTS SUPERVISORY BOARD REPORT AG ACCOUNTS GLOSSARY 

LETTER TO THE SHAREHOLDERS 

DEAR SHAREHOLDERS AND 

VALUED BUSINESS PARTNERS OF PORR, 

Development for our markets was highly encouraging in 2005, with the substantial public 

investment backlog steadily converting into concrete demand. 

Growth rates on the construction market in Austria are outpacing average levels; in Germany, 

where staffing levels halved following the short-lived post-reunification boom, the first signs of 

recovery are emerging; building production is running at over 5% p.a. in the new EU member 

states. The EU accession candidates are also raising their levels of public and private investment. 

In central Europe, a region in which we are active, growth is likely to remain above average 

on balance for the next 10 to 15 years. 

From a strategic and structural viewpoint, the PORR Group is ready to meet these exciting 

challenges. We are continually expanding our presence on these expanding markets. Thanks 

to an organisational structure adapted to the needs of the market, an effective cost and risk 

management system and a policy of selective acquisition, we will be in a position to raise our 

profitability. 

Our Group structure and organisational framework have also been enhanced as planned. Various 

elements have been permanently tightened or simplified with a view to improving results and 

cost monitoring; we have also invested significantly in grouping the operations centres of all 

subsidiaries within the Vienna district. This will facilitate and raise efficiency in terms of material 

planning, device management and logistics. 

Demand is set to rise in the area of infrastructure. Power plant construction is certain to undergo 

a renaissance in the years ahead, and private investors will be putting their money into offices 

and industrial plant. This means that we will have the opportunity to optimise our construction 

capacity whilst bringing to bear our 137 years of experience in project development. In both 

the public and private sectors, investors prefer to rent properties rather than act as owner; we 

will be well placed increasingly to play the role of investor, as we have always done on occasion 

in the past. 

12


LEFT TO RIGHT: WEBER, MAYER, HESOUN, PÖCHHACKER 

13


During 2005, we established the preconditions for this by enhancing our financial structure. 

Efforts continue to improve our equity ratio still further. 

Allgemeine Baugesellschaft – A. Porr AG issued two bonds in the first half of 2005. In April, 

an Asset Linked Porr Security (ALPS) bond was issued as a private placement with institutional 

investors at a nominal value of €72 million; the quoted corporate bond with a volume of 

€100 million was issued in June. This enabled us to shift a large part of the Group’s bank 

liabilities from the short-term to the long-term area and thereby guarantee financial backing for 

our long-term corporate strategy. At the end of 2005, the level of short-term bank liabilities 

(€187.4 million) was 55% below the previous year’s value. 

On the basis of the positive earnings situation, the equity ratio of the Group also improved 

from 15.3% to 16.4%. The PORR Group belongs to the top division of industrial construction 

companies with an EBIT margin of 2.7%. 

As of 31 st March 2006, our order balance stood at €1.93 billion. Our proficient and motivated 

industrial and salaried employees are working to high capacity at home and abroad in pursuit of 

their primary aim of customer satisfaction. We would like to thank our customers, many of whom 

are long-established, for their positive cooperation and their trust. 

We would also like to thank our shareholders. We will do everything in our power to repay their 

commitment by delivering outstanding performance in a challenging sector. 

Finally, we would like to express our appreciation of the highly cooperative relationship with the 

employee representatives, who consistently support our corporate objectives in a constructive 

manner. 

Director General 

Horst Pöchhacker 

Chairman of the Board of Management 

Deputy Director General 

Wolfgang Hesoun 

Vice Chairman of the Board of Management 

Helmut Mayer 

Member of the Board of Management 

Peter Weber 

Member of the Board of Management 

14


INFORMATION ON THE MANAGEMENT 

CHIEF EXECUTIVE OFFICER HORST PÖCHHACKER 

Born 1938, married with two children; studied at the Vienna University of Technology, second 

state examination 1962, joined PORR AG as an engineer in the same year, general power of 

attorney granted in 1975, appointed to Executive Board in 1976, Chairman of the Executive 

Board of PORR AG since 1982. 

Responsible for the departments of Strategy, Organisation, Human Resources, Public Relations 

and Auditing. 

Additional functions: Chairman of the Supervisory Board of Porr Projekt und Hochbau AG, Porr 

Technobau und Umwelt AG and Wibeba-Holding GmbH, Deputy Chairman of the Supervisory 

Board of UBM Realitätenentwicklung AG and TEERAG-ASDAG AG. 

President of the Federation of Austrian Industrial Building Contractors (Vereinigung Industrieller 

Bauunternehmungen Österreichs) since 1992, appointed member of the Executive Board of 

the Federation of Austrian Industry (Vereinigung der Österreichischen Industrie) in 1996, 

member of the Supervisory Board of Österreichische Industrieholding AG (ÖIAG) from 1986 to 

1996, Deputy Chairman of the Supervisory Board of ÖIAG from 1996 to 2000. 

DEPUTY CHIEF EXECUTIVE OFFICER WOLFGANG HESOUN 

Born 1960, married with one child; graduated from the Höhere Technische Lehranstalt für Feinwerktechnik, 

Mödling, in 1981, active in various power stations in Germany as commissioning 

engineer for the Siemens group from 1982 to 1987, joined PORR AG as technical employee in 

1988, joint power of attorney granted in 1993, member of the Executive Board of Porr Umwelttechnik 

AG from 1995 to 1999 (also Chairman of the Executive Board), member of the Executive 

Board of the restructured Porr Technobau und Umwelt AG (following the merger of Porr Umwelttechnik 

AG and Porr Technobau AG), appointed to Executive Board of PORR AG in March 2003. 

Nominated Deputy Executive Board Chairman of PORR AG in December 2004. 

Responsible for the departments of Project Development (Civil Engineering and Building Construction), 

Project Financing, Technology Management, Quality Management and Equipment 

and the business areas Porr Technobau und Umwelt AG, Porr Projekt und Hochbau AG and 

Porr Solutions Immobilien- und Infrastrukturprojekte GmbH. 

Additional functions: Deputy Chairman of the Supervisory Board of Porr Technobau und Umwelt 

AG and Porr Projekt und Hochbau AG, member of the Executive Board of the Federation of 

Austrian Industry in Vienna. 

15


MEMBER OF THE BOARD OF MANAGEMENT HELMUT MAYER, CFO 

Born 1953, married; graduated from the Academy of Commerce (Handelsakademie) in 1972, 

certified as company accountant and cost accountant in 1979, accountant at Loba-Chemie 

of Vienna from 1973 to 1974, joined TEERAG-ASDAG AG in 1974 as staff member in the 

accounting department, appointed head of commercial department in 1983, appointed head of 

finance and accounting in 1988, joint power of attorney granted in 1989, appointed to the 

Executive Board of TEERAG-ASDAG AG in 1996, member of the Executive Board of PORR AG 

since March 2003. 

Responsible for the departments of Financial Management and Capital Market, Accounting, IT, 

Insurance and Purchasing. 

Additional functions: Deputy Chairman of the Supervisory Board of Porr Aktiengesellschaft, 

Munich, Chairman of the Supervisory Board of Prazské silnicí a vodohospodárské stavby a.s., 

Prague, member of the Wirtschaftsparlament corporate assembly, Deputy Chairman of the 

industrial section of the Austrian Federal Economic Chamber. 

MEMBER OF THE BOARD OF MANAGEMENT PETER WEBER 

Born 1949, married with two children; completed doctorate in chemistry in 1975, supplementary 

Master of Science degree (Industrial Management) at the Polytechnic Institute of New York from 

1976 to 1977, joined CA-BV in 1977 in the investments/industry area, executive assistant with 

project management responsibility for large-scale projects at Semperit AG from 1978 to 1982, 

head of industrial paints and assistant to the Chairman of the Executive Board at Stolllack from 

1982 to 1987, responsible for investment management at Länderbank from 1987 to 1991; following 

the merger of Länderbank with Zentralsparkasse to form Bank Austria, head of investment 

management for the overall group and Managing Director of Bank-Austria Handelsholding GmbH, 

moved to real estate in 1995, Chairman of the Management Board of Immobilien Holding GmbH 

until start of 2003, appointed member of the Executive Board of PORR AG in March 2003. 

Responsible for the departments of Group Structure and Information Management, Real Estate 

Portfolio, Resources, Controlling and Law and the business area UBM Realitätenentwicklung AG. 

Additional functions: Member of the Supervisory Board of UBM Realitätenentwicklung AG, Deputy 

Chairman of the Supervisory Board of Wibeba-Holding GmbH. 

16


SUPERVISORY BOARD 

MEMBERS OF THE SUPERVISORY BOARD 

President Klaus Ortner*, Vienna, Chairman 

Director Karl Schmutzer*, Winzendorf, Deputy Chairman 

Georg Riedl*, Vienna, Deputy Chairman 

Günther W. Havranek*, Perchtoldsdorf 

Executive Director Martin Krajcsir*, Vienna 

Director Walter Lederer*, Vienna 

Heinz Mückstein*, Bad Vöslau 

Karl Samstag*, Mödling 

* The Supervisory Board of the company was re-elected at the 124 th ordinary shareholders’ meeting held on 24 th June 2004 

for the duration of the period up to the end of the annual shareholders’ meeting that passes resolutions on fiscal year 2008. 

Members delegated by works council 

Peter Grandits, Vienna 

Walter Huber, Wiesen 

Johann Karner, Mönchhof 

Walter Jenny, Vienna (from 1.9.2005) 

Albert Stranzl, Vienna (to 31.8.2005) 

17


OVERVIEW OF THE PORR GROUP 

ALLGEMEINE BAUGESELLSCHAFT – 

A. PORR AKTIENGESELLSCHAFT 

WIBEBA HOLDING GMBH 

100% 

41.27% 

UBM REALITÄTENENTWICKLUNG 

AKTIENGESELLSCHAFT 

100% 52% 

100% 

52.49% 

24% 24% 

PORR TECHNOBAU UND UMWELT 


PORR SOLUTIONS IMMOBILIEN- UND 

INFRASTRUKTURPROJEKTE GMBH 

PORR PROJEKT UND HOCHBAU 


TEERAG-ASDAG 


* * 

WIBEBA HOCHBAU GMBH & CO. NFG. KG 

WIENER BETRIEBS- UND BAU- 

GESELLSCHAFT M.B.H. & CO. NFG. KG 

Correct as of February 2006 

* Industrial management 

THE RIGHT CORPORATE STRUCTURE FOR THE MARKET 

The organisational alignment of the PORR Group is continually adapting to changing market 

conditions and the needs of our customers. The various company areas are coordinated through 

the holding company, Allgemeine Baugesellschaft – A. Porr Aktiengesellschaft. 

The founding of the two national sector-specific subsidiaries Porr Technobau und Umwelt AG (in 

1989) and Porr Projekt und Hochbau AG (in 1994) laid the foundation for the current structure 

of the PORR Group. Amalgamating domestic and foreign activities for a particular sector makes it 

possible to respond quickly and effectively to demand levels on a particular market. An alignment 

along sectoral lines also supports the attainment of high expertise: know-how is developed as a 

package rather than in parallel across several regions. The coordination of cross-sector subsidiary 

activity was further optimised by the establishment of Porr GmbH in 2004. 

The long-held Group tradition of real estate development was revived in 1992 through UBM, 

which until that point had only been responsible for administrative functions. In order to improve 

the structure of the consolidated balance sheet, the share in UBM was reduced to below 50% in 

2004, and this corporate area was subsequently deconsolidated. Despite this, the productive 

partnership between PORR and UBM will continue as before to the benefit of both parties. 

18


“I can only compare the 

current demand situation in our 

sector to that which existed after 

the second world war” 

DIRECTOR GENERAL HORST PÖCHHACKER ON THE OVERALL POTENTIAL 

IN THE CONSTRUCTION INDUSTRY AND HOW PORR CAN BENEFIT. 

Some years ago, the members of the 

European Union agreed a growth and 

stability pact, which later metamorphosed 

into merely a stability pact because of the 

reluctance of the public sector to invest. 

This was the start of a downward spiral 

which also discouraged companies from 

investing. The result of that trend is the 

massive investment backlog that we see 

today. In western Europe, it is mainly infrastructure 

and energy projects that urgently 

require completion; in the east of Europe, 

there is demand in virtually all sectors. 

Taking account of the usual regional and 

sector-specific fluctuations, I calculate 

that overall demand levels will remain high 

for the next 10 to 15 years. I can only 

compare the magnitude of the current 

demand situation to that which existed 

after the second world war. 

The PORR Group is ideally placed to maximise 

this market potential. In additional to 

our traditional field of construction, we 

have successfully positioned ourselves in 

recent years as an expert partner for complex 

projects, operator models and franchise 

models. This is where I perceive the main 

potential of PORR for the future. We have 

already carried out critical preparatory 

work in this regard by establishing PORR 

SOLUTIONS, which has provided the focal 

point for project development expertise 

across the Group. At the same time, of 

course, we remain active as a conventional 

construction company. By extending the 

value chain to include elements requiring 

high levels of know-how, we are setting 

ourselves apart from the competition whilst 

raising our profitability. It is therefore 

important to secure this know-how along 

with a differentiated system of risk management. 

The PORR Group has demonstrated 

a strong ability to cope with such 

challenges on many occasions in the past. 

We were, for example, one of the first 

organisations to identify the opportunities 

offered by the emerging economies of 

eastern Europe; today, this region is a firm 

part of our extended home market. Our 

corporate structures are also tracking the 

rapid development trends that characterise 

our markets and our customers. With our 

robust sectoral structure, the PORR Group 

today ranks as a flexible and versatile 

corporate group – one that pursues a 

consistent and considered path of expansion, 

and one that is quick to pinpoint 

and utilise the indicators and opportunities 

of the day. 

19


In 2000, PORR considerably expanded its production volume in road construction by gaining a 

shareholding in TEERAG-ASDAG AG. This participation since been expanded to around 52.5%, 

giving PORR the industrial management of the company. 

During fiscal year 2005, the integration of WIBEBA (acquired late in 2004) was completed. This 

company’s operational units have been gradually merged into the corresponding areas of the 

PORR Group. 

The PORR Group established a new and nationally active project development company known 

as Porr Solutions Immobilien- und Infrastrukturprojekte GmbH (PS) during the first half of 2005. 

Two companies which had been involved in project development for many years – Porr Immoprojekt 

GmbH and Porr Infrastruktur GmbH – were amalgamated to form this wholly-owned 

subsidiary, thereby merging their respective areas of expertise. The areas PT&S (26% shareholding 

of PS specialising in construction, planning and project management) and FMA (50% shareholding 

of PT&S specialising in total facility management) have also been assigned to project 

development. 

INTERNATIONAL PRESENCE 

The PORR Group has always operated well beyond the 

domestic borders of Austria. The countries of central, eastern 

and southern Europe are currently gaining in significance on 

account of their above-average rates of growth. The PORR 

Group has been represented in Hungary, the Czech Republic, 

Slovakia and Poland for many years. 

During fiscal year 2005, inroads were made into the markets 

of the constituent states of the former Yugoslavia, with 

subsidiaries established in Zagreb, Belgrade, Sarajevo and 

Banja Luka. Projects have also been successfully realised in 

Slovenia, Croatia, Lithuania, Romania and Bulgaria. Italy 

and Ukraine are currently under assessment. 

FR 

20


COUNTRIES IN WHICH PORR IS REPRESENTED 

COUNTRIES CURRENTLY UNDER ASSESSMENT BY PORR 

AT 

BA 

BG 

CH 

CZ 

DE 

FR 

HU 

Austria 

Bosnia and Herzegovina 

Bulgaria 

Switzerland 

Czech Republic 

Germany 

France 

Hungary 

HR 

LT 

PL 

RO 

SCG 

SL 

SK 

Croatia 

Lithuania 

Poland 

Romania 

Serbia and Montenegro 

Slovenia 

Slovakia 

IT 

UA 

Italy 

Ukraine 

Vienna head office 

Main subsidiaries 

LT 

PL 

DE 

CZ 

UA 

CH 

AT 

SK 

HU 

SI 

HR 

RO 

IT 

BA 

SCG 

BG 

21


CORPORATE STRATEGY 

OVERVIEW OF STRATEGIC PRIORITIES 

_ Place quality of production output before quantity 

_ Place long-term corporate governance ahead of short-term increases in earnings 

_ Develop the highest level of expertise 

_ Reduce simple construction business in favour of a greater share in complex 

projects that fewer competitors are able to realise 

_ Raise involvement in projects delivering a yield over many years in order 

to ensure a basic level of revenue in times of low demand 

_ Expand market presence to level out fluctuations in demand and ensure 

utilisation of specialist expertise 

_ Focus exclusively on European markets 

MARKET FOCUS 

The corporate structures of the PORR Group 

are specifically designed to reflect the 

requirements and conditions on our various 

geographical markets and sectors. The four 

company areas enable us to pool our knowhow 

and proficiency in the sectors of building 

construction, civil engineering, road construction 

and project development. Porr GmbH 

was set up to coordinate cross-sector subsidiary 

business; the Group’s project development 

expertise is concentrated in PORR 

SOLUTIONS (founded in 2005), in which the 

subsidiaries PPH and PTU hold shares. 

SERVICE PORTFOLIO 

The PORR Group has successfully positioned itself as a multi-utility group covering every need of 

the modern-day construction industry. In addition to the traditional field of building construction, 

the project development area (which includes stock maintenance, property development, planning 

and facility management) is becoming increasingly important. The seamless networking of 

subsidiaries organised according to sector enables us to implement complex projects from a single 

source. As a result, PORR is increasingly fulfilling the role of reliable partner in operator and 

franchise projects, more and more of which are being launched in response to brisk investment 

activity in the infrastructure/energy area at a time when public budgets are limited. 

CORPORATE MANAGEMENT 

As a strategic holding company, PORR AG is responsible for overall control of the subsidiaries. 

Agreement is reached with the management committees of the ancillary companies at regular 

coordination meetings. Members of the PORR AG executive board are also represented on the 

supervisory committees of the subsidiaries and majority holdings. To facilitate fast decisionmaking, 

the executive boards and managing directors of the respective companies take responsibility 

for operational corporate management; their decisions are informed by general Group 

guidelines. 

22


“We want to grow in terms 

of quality, not quantity” 

DEPUTY DIRECTOR GENERAL WOLFGANG HESOUN ON THE SELECTIVE 

EXPANSION POLICY AND THE HIGH-POTENTIAL BUSINESS AREAS OF PORR. 

Alongside the German-speaking region, 

which we define as our core market, the 

PORR Group has established a highly 

successful presence in central, eastern and 

southern Europe. In 2005, projects were 

launched and branch offices were founded 

in the constituent states of the former 

Yugoslavia for the first time. Although we 

are at a very early stage in Romania, 

Bulgaria and Ukraine, we are convinced of 

the long-term potential of these markets. 

However, our efforts to expand are not 

driven by a simple desire to grow in terms 

of size. We want to expand by selectively 

developing projects that allow us to apply 

our expertise in as many diverse – and, 

above all, profitable – ways as possible. This 

policy will require us to take stock of our 

situation at certain intervals and accept that 

periods of consolidation will be necessary. 

The huge potential of our existing markets 

means that we won’t need to experiment in 

exotic regions; we can already count on 

expansion during the years ahead. I believe 

there is a massive backlog in the infrastructure 

and energy area, even if the realisation 

of projects in these areas will vary 

from region to region. For example, in 

western Europe, where energy supply 

companies are in a position to make their 

own investments, we can continue to position 

ourselves as an expert partner for 

implementation. It is a different situation 

in the east and southeast of Europe, where 

there is simply a lack of funds. In this 

region, it is up to us to seize the opportunities 

and present ourselves as a reliable 

project manager. Needless to say, financial 

and planning aspects become critical given 

the long-term nature of such projects. 

On the other hand, from the viewpoint of 

long-term corporate management, an 

extended timeframe ensures long-term 

revenue, which can compensate for any 

fluctuations in the overall orders situation. 

On many past occasions, we have demonstrated 

beyond doubt that PORR possesses 

the expertise needed to run operator 

models and franchise models. To give just 

one example, we are currently realising a 

section of around 59km on the M6 motorway 

between Budapest and Dunaùjvaros in 

the form of a public-private partnership 

project. 

23


“We are doing everything possible to 

enhance our financing structure” 

EXECUTIVE DIRECTOR HELMUT MAYER ON THE 

ONGOING EFFORTS OF THE PORR GROUP TO IMPROVE THE BALANCE SHEET 

AND FINANCING STRUCTURES. 

Until fairly recently, it was easy for a 

construction group of our size and reputation 

to secure financing for projects and 

proposals with relatively favourable, shortterm 

borrowed funds. Now that the lending 

policy of the banks has changed in the 

wake of the Basel II agreement, the organisation 

and maturity profile of our financing 

structure has become increasingly important. 

With the instrument of raising capital 

no longer available, our first step was to 

deconsolidate UBM Realitätenentwicklung 

AG; by reducing our share to below 50%, 

we were able to cut the consolidated 

financial liabilities of the PORR Group 

significantly. The simultaneous reduction 

in bank liabilities that we accomplished 

through our own efforts – which included 

reassessing the real estate portfolio – 

improved the equity ratio, including minority 

shares, from 13.5% to the current level 

of 16.4% over the last two years. 

The next step was to issue two bonds: a 

structured bond followed in June 2005 by 

a corporate bond. These measures enabled 

us to optimise and amend our financing 

sources at a fundamental level whilst 

preparing the ground for further capital 

measures. 

Another strategic priority was to improve 

our profitability. At an operational level, we 

pursued this aim with a policy of selective 

order acquisition. Internally, we needed to 

bring about greater efficiency and resource 

planning. New software solutions have 

resulted in significant successes in the 

accounting and IT areas; the establishment 

of the Group Treasury has optimised 

the raising and application of financial 

resources. 

We are also proud of our successes in the 

field of personnel. In 2005, following years 

of preparatory work and intensive dialogue 

with employee representatives, we finalised 

a collective agreement between the management 

and the works council. This 

agreement not only bridges traditional 

disparities, but also defines the first uniform 

remuneration and social model for 

all employees of the PORR Group. The 

pension fund model that it creates accords 

with the Group strategy of sustainable 

development. 

24


“We need sound structures to 

achieve successful growth” 

EXECUTIVE DIRECTOR PETER WEBER ON 

EXPANSION PRECONDITIONS, INTEGRATION AND 

CONTROLLING MEASURES. 

The PORR Group is pursuing a strategy of 

measured expansion; we cannot grow faster 

than our own structures will allow, and nor 

would we wish to. We are highly cautious 

when it comes to developing new markets; 

we become familiar with these markets 

step by step, carrying out specific projects 

and keeping the associated risks manageable 

at all times. Only when we are sufficiently 

familiar with a market do we set up 

our own permanent structures and introduce 

a comprehensive marketing plan. As 

our sphere of action grows, personnel and 

resource management becomes critical. We 

cannot hope to complete projects successfully 

unless we have secured access to the 

necessary qualified personnel and a supply 

of raw materials – things that we cannot 

take for granted in some eastern European 

countries. During the year under review, we 

tightened the organisation of our resource 

management across the Group, and we are 

currently developing a strategy for widening 

these business areas. 

Owing to the geographical and sectoral 

expansion of our operating network, our 

operational reporting and control system 

is gaining in importance. During the reporting 

year, we implemented a value-based 

risk management system with a view to 

counteracting adverse developments as 

early as possible. Cost accounting, budgeting 

and financial accounting data is entered 

into a complex model, which utilises a 

sophisticated key data catalogue to provide 

an excellent early warning system. This is 

integrated into a standardised reporting 

system, which produces a monthly assessment 

of the company’s situation. 

Another key strategic focus of 2005 was 

the integration of WIBEBA, which was 

acquired at the end of 2004. The main 

areas have now been merged into the 

relevant areas of PORR, and the operational 

units have been relocated to their 

respective positions in the PORR Group. 

Subject to temporary provisions, the 

new collective agreement between the 

management and works council of the 

PORR Group will apply to all staff members 

of WIBEBA. The new standard service 

regulations came into force across the 

group following years of preparatory work. 

25


RISK MANAGEMENT ACROSS THE GROUP 

A group-wide risk management system – ideally matched to the specific needs of the PORR 

Group – was implemented in fiscal year 2005. Based on a value-oriented model, cost accounting, 

budgeting and financial accounting data is entered into a key data catalogue which acts as 

an early warning system. A specialist team known as Operational Controlling supports the various 

business areas; the same team is responsible for developing controlling know-how in the operational 

areas. Controlling tasks and measures for the construction sites and business areas are 

defined in a comprehensive set of guidelines; compliance with and performance of these is 

monitored within the framework of formalised advisory council reports and coordination meetings. 

The measures are backed up by a standardised reporting system, which produces a monthly 

assessment of the company’s situation based on business-related data and notes and enables 

adverse developments to be forestalled at an early stage. 

GEOGRAPHICAL EXPANSION 

The PORR Group has operated on the flourishing markets of central, eastern and southern 

Europe for decades. We generally move into new markets by carrying out small-scale projects at 

first; in this way we familiarise ourselves with local conditions and requirements whilst keeping 

risk to a minimum. Permanent company structures are only established when the general level of 

market potential justifies a longer-term commitment. The PORR Group is not currently considering 

a move into underdeveloped markets in Europe or markets outside of Europe. The only exceptions 

to this rule are low-risk deliveries and services in collaboration with our global partners. 

ACQUISITION POLICY 

The expansion strategy of the PORR Group does not involve raising production output at any 

cost. Corporate acquisitions are only made where these offer better-than-average opportunities 

for growth and yield; in other words, to buy in additional expertise, open up new sectoral or 

geographical markets or boost activity in specific business areas. Projects of this kind are carried 

out by the holding company itself or in close cooperation with the holding company; risk management 

is applied. 

In order to avoid the duplication of activities and deploy available resources as effectively as 

possible, contract and project acquisition is coordinated internally. Regional and national 

company units must act in full agreement and cooperation. 

26


UTILISING MARKET DEVELOPMENTS 

Allowing for the usual variations in different regions and sectors, years of insufficient investment 

have ensured that levels of demand on our central and eastern European markets will remain 

generally satisfactory for the next few years. The demand that exists in all sectors in the new and 

prospective EU member states will add to the infrastructure and energy-related backlog in the 

15 old member states. Given that there are no indications of any long-term change in the restrictive 

budgetary policies of public authorities, alternative sources of finance such as public-private 

partnerships and franchise models are becoming more important. We have already acquired the 

necessary know-how in relation to these financing models (and a contract awards process that is 

becoming ever more complicated) through PORR SOLUTIONS and the centrally managed finance 

department of the PORR Group. 

OPTIMISING THE FINANCE STRUCTURE 

Now that the lending policy of the banks has changed in the wake of the Basel II agreement, 

conditions for the external financing of projects have become less favourable owing to the poor 

equity capitalisation of the PORR Group. For this reason, a realignment of financing structures 

and sources has been a strategic priority of recent years. One milestone in this objective was the 

deconsolidation of UBM, whose balance sheet structure had been notable for high liabilities in 

connection with project development business. Our balance sheet structure and maturity profile 

were further enhanced during fiscal year 2005 by means of project sales and the issue of bonds. 

Compared to the previous year, payables to banks were cut by €211 million in 2005. The equity 

ratio (including minority shares) of the PORR Group rose from 15.3% to 16.4% by the end of 

2005. Recent capital procurement measures should improve the financing structure still further. 

These initiatives will also ensure that we can react flexibly (and, more importantly, quickly) to 

acquisition opportunities that may arise. 

27

HIGHLIGHTS OF 2005 

JAN FEB MAR APR MAY JUN 

PPH contracted to build 

Zagreb Tower in Croatia 

Acquisition of 

WIBEBA completed 

Contract concluded to build Euro 

2008 stadium at Klagenfurt; 

structured bond issued at nominal 

value of €72 million 

Final phase of residential development 

at Monte Laa commences 

(construction sites 10, 11.1 and 11.2) 

Corporate bond issued at 

nominal value of €100 million; 

Porr Solutions Immobilien- und 

Infrastrukturprojekte GmbH 

formed through merger of Porr 

Solutions Immobilien GmbH, 

Porr Infrastruktur GmbH and 

Porr Immoprojekt GmbH to 

maximise market focus 

Annual financial statements for 2004 

approved; consolidated profits up 

38.5% on previous year 

MILESTONES IN THE COMPANY HISTORY 

1869 1912 1927 1946 1955 1958 1971 1979 

Majority shareholding 

acquired in what is 

now UBM Realitätenentwicklung 

AG 

PORR comes under control 

of military authorities in the 

Russian-occupied zone; 

receiving company is formed 

in the western zones 

PORR East and PORR West 

merge as occupying forces 

withdraw 

Group turnover exceeds one billion 

Foundation of 

Allgemeine Österreichische 

Austrian schillings for first time 

Allgemeine 

Baugesellschaft merges with 

Österreichische 

A. Porr Betonbauunternehmung GmbH 

Baugesellschaft; 

(founded 1908); changes to 

Vienna State Opera 

UNO City completed under 

quoted on Vienna 

Allgemeine Baugesellschaft – 

opens, having been 

management of PORR; 

Stock Exchange 

A. Porr AG, which remains the 

reconstructed by 

start of activities in eastern 

on 8 th April 

company’s official name 

PORR 

Europe

JUN JUL AUG OCT NOV DEC 

Annual shareholders’ 

meeting at company 

headquarters 

Contract won for first project 

in Romania (Hella Timisoara) 

Final section of 

Lötschberg base 

tunnel handed over 

PORR ordinary shares hit yearly high 

after rising 40% 

140% 

Work resumes on additional 

130% 

sections of Chodov Business 

Technology Park in Prague 

120% 

110% 

Million € 

2,500 

Output hits record level of 

€2.3 billion 

100% 

01 

2005 

02 03 04 05 06 07 08 

2,000 

1,500 

1,000 

581.4 

1,345.8 

532.7 

1,321.4 

704.5 

1,553.5 

500 

0 

2003 2004 2005 

Domestic 

Foreign 

1987 1990 1992 2000 2001 2002 2004 2005 

Turnover at 

5 billion schillings 

Turnover at 


Majority holding acquired 

in TEERAG-ASDAG AG; 

Majority holding acquired in 

UBM Realitätenentwicklung AG 

Acquisition of Wiener Betriebs- und 

industrial management 

Turnover at 

Baugesellschaft m.b.H. (WIBEBA) 

assumed 


Share in Radmer Bau AG 

München acquired (now 

Corporate bond and structured bond 

issued to optimise financing structures 

Porr Deutschland GmbH); 

commencement of activities 

in Switzerland 

Foreign share of total 

turnover exceeds 25% 

for first time 

Production output exceeds €2 billion; 

geographical presence in 15 countries

PORR GROUP STRUCTURE 

THE FOUR STRATEGIC CORPORATE AREAS OF 

ALLGEMEINE BAUGESELLSCHAFT – A. PORR AKTIENGESELLSCHAFT 

TEERAG-ASDAG AG 

PORR SOLUTIONS IMMOBILIEN- UND 

INFRASTRUKTURPROJEKTE GMBH 

AUSTRIAN SUBSIDIARIES VIENNA, STYRIA, CARINTHIA, KREMS, 

UPPER AUSTRIA, SALZBURG, BURGENLAND, TYROL 

ALLGEMEINE STRASSENBAU GMBH 

SUBSIDIARIES IN ALL FEDERAL STATES 

BAUGESELLSCHAFT MBH ERHARD MÖRTL 

HANS BÖCHHEIMER HOCH- UND TIEFBAU GMBH 

AGES-BAU ASPHALT GMBH 

GESELLSCHAFT FÜR BAUWESEN GMBH 

BOSCH BAUGESELLSCHAFT MBH 

ASPHALTUNTERNEHMUNG DIPL. ING. O. SMEREKER & CO GMBH 

ASPHALTUNTERNEHMUNG RAIMUND GUCKLER 

BAUUNTERNEHMUNG GMBH 

TECHNISCHES BÜRO SEPP STEHRER BAUSTOFF-GROSSHANDEL GMBH 

EUPHALT-HANDELSGESELLSCHAFT MBH 

EISENSCHUTZGESELLSCHAFT MBH 

ING. OTTO RICHTER & CO STRASSENMARKIERUNGEN GMBH 

IAT GMBH 

ASPHALT-UNTERNEHMUNG CARL GÜNTHER GMBH 

WIENER BETRIEBS- UND BAUGESELLSCHAFT MBH & CO NFG KG* 

PRAZSKÉ SILNICNÍ A VODOHOSPODÁRSKÉ STAVBY A.S., PRAGUE 

TEERAG-ASDAG POLSKA SP. Z O.O., WARSAW 

TEERAG-ASDAG KFT., MOSONMAGYARÓVÁR 

ASDAG KAVISCBÁNYA ÉS ÉPITÖ KFT., JÁNOSSOMORJA 

PORR TECHNICS & SERVICES GMBH & CO KG 

FMA GEBÄUDEMANAGEMENT GMBH 

KÄRNTNER RESTMÜLLVERWERTUNGS GMBH 

LTE LOGISTIK- UND TRANSPORT-GMBH 

GREENPOWER ANLAGENERRICHTUNGS- UND BETRIEBS- GMBH 

AQUA PLUS WASSERVERSORGUNGS- UND 

ABWASSERENTSORGUNGS GMBH 

M-PARKING ERRICHTUNGS-, BETRIEBS- UND SERVICE GMBH 

ECRA EMISSION CERTIFICATE REGISTRY GMBH 

“HOSPITALS” PROJEKTENTWICKLUNGS GMBH 

ARIWA ABWASSERREINIGUNG IM WALDVIERTEL GMBH 

PORR SOLUTIONS IMMOBILIEN- UND INFRASTRUKTURPROJEKTE 

GMBH, BERLIN 

PORR SOLUTIONS SP. Z O.O., WARSAW 

PORR SOLUTIONS S.R.L., BUCHAREST 

PORR SOLUTIONS D.O.O., ZAGREB 

M6 DUNA AUTÓPÁLYA KONCESSZIÓS RT., BUDAPEST 

PORR INFRA BULGARIA E.O.O.D., SOFIA 

LTE LOGISTIK A TRANSPORT SLOVAKIA S.R.0., PRESSBURG 

AQUA PLUS CZ VODOHODPODARSKA S.R.O., BRNO 

AQUASYSTEMS GOSPODARJENJE Z VODAMI D.O.O., MARBURG 

FAB QUICKBORN GMBH & CO & KG, HAMBURG 

GUNIMPERM-BAUVEG SA, BELLINZONA 

BAUVEG-WINKLER D.O.O., ZAGREB 

Domestic 

Foreign 

* Industrial management

PORR TECHNOBAU UND UMWELT AG 

PORR PROJEKT UND HOCHBAU AG 

RAILWAY CONSTRUCTION 

FOUNDATIONS 

CIVIL ENGINEERING PROJECTS 

VIENNA SUBSIDIARY 

PORR GMBH SUBSIDIARIES IN LOWER AND UPPER AUSTRIA, 

SALZBURG, CARINTHIA, TYROL, STYRIA 

PORR TUNNELBAU GMBH 

PORR UMWELTTECHNIK GMBH 

PORR SOLUTIONS IMMOBILIEN- UND INFRASTRUKTURPROJEKTE GMBH 

VORSPANN-TECHNIK GMBH & CO KG 

SCHOTTER- UND BETONWERK KARL SCHWARZL BETRIEBSGMBH 

PORR DEUTSCHLAND GMBH SUBSIDIARIES IN MUNICH, BERLIN, 

HAMBURG, THURINGIA/SAXONY 

PORR TECHNOBAU UND UMWELT GMBH, MUNICH 

BETZOLD ROHRBAU GMBH & CO KG, NUREMBERG 

PORR SUISSE AG, ALTDORF 

PORR (BUDAPEST) ÉPÍTÉSI KFT. 

PORR TECHNOBUD POLSKA SP. Z O.O., WROCLAW 

PORR D.O.O., MARBURG 

GP PORR D.O.O., BELGRADE 

PORR CONSTRUCT S.R.L., BUCHAREST 

PORR HRVATSKA D.O.O, ZAGREB 

PORR BULGARIA E.O.O.D., SOFIA 

PORR D.O.O., SARAJEVO 

PORR D.O.O., BANJA LUKA 

TOV “PORR UKRAINA”, KIEV 

TOV “PORR INTERGAL-BUD”, KIEV 

PORR (MONTENEGRO) D.O.O., PODGORICA 

REGIONAL BUILDING CONSTRUCTION, VIENNA 

NATIONAL BUILDING CONSTRUCTION 

REVITALISATION, VIENNA SUBSIDIARY 

PORR GMBH SUBSIDIARIES IN LOWER AND UPPER AUSTRIA, 

SALZBURG, CARINTHIA, TYROL, STYRIA 

WIBEBA HOCHBAU GMBH & CO NFG KG* 

O.M. MEISSL & CO BAU GMBH 

ING. RADL-BAU GMBH* 

PORR TECHNICS & SERVICES GMBH & CO KG 

PORR SOLUTIONS IMMOBILIEN- UND INFRASTRUKTURPROJEKTE GMBH 

ALU-SOMMER GMBH* 

PORR DEUTSCHLAND GMBH SUBSIDIARIES IN MUNICH, BERLIN, 

HAMBURG, THURINGIA/SAXONY 

EMIL MAYR HOCH- UND TIEFBAU GMBH, ETTRINGEN, WERTACH 

PORR (ČESKO) A.S., PRAGUE 

PORR (SLOVENSKO) A.S., PRESSBURG 

PORR (POLSKA) S.A., WARSAW 

MODZELEWSKI & RODEK SP. Z O.O., WARSAW 

STAL-SERVICE SP. Z O.O., WARSAW 

PORR CONSTRUCT S.R.L., BUCHAREST 

PORR HRVATSKA D.O.O., ZAGREB 

PORR (HUNGÁRIA) MAGASÉPÍTÉSI KFT., BUDAPEST 

GP PORR D.O.O., BELGRADE 

PORR D.O.O., SARAJEVO 

PORR D.O.O. BANJA LUKA 

TOV “PORR UKRAINA”, KIEV 

TOV “PORR INTERGAL-BUD”, KIEV 

PORR (MONTENEGRO) D.O.O., PODGORICA


PORR TECHNOBAU 

UND UMWELT AG (PTU) 

STEPHAN GILLICH 

EXECUTIVE BOARD 

CHAIRMAN 

JOHANNES DOTTER 


MEMBER 

ALFRED JAHN 


MEMBER 

ALFRED SEBL-LITZLBAUER 


MEMBER 

HEINZ GSCHNITZER 


MEMBER 

(TO 28.3.2006) 

SPECIALIST IN CIVIL 

ENGINEERING AND 

ENVIRONMENTAL TECHNOLOGY 

COMPANY PROFILE 

Porr Technobau und Umwelt AG (PTU) is responsible for the civil engineering activities of the 

PORR Group in the fields of engineering construction, environmental technology and resource 

management; it also manages operator and franchise models for those sectors. The close 

cooperation between national departments and regional cross-sector subsidiaries ensures that 

our specialist know-how and regional presence are retained and expanded. This is our basis for 

business success, along with our highly qualified staff and the standards of quality we maintain. 

Specialist departments provide expertise predominantly in the sectors of foundations, tunnel 

construction, power plant construction, railway construction, bridge construction, environmental 

technology and prestressing technology. Both at home and abroad, we are offering more and 

more operator and franchise models in the areas of road construction and waste disposal and in 

connection with various industrial plant projects. Our rock, gravel and landfill resources guarantee 

long-term market opportunities and reduce our dependence on external sources of raw materials. 

STRONG AT HOME 

AND ABROAD 

32 


Engineering construction 

Civil engineering services are delivered nationally through the Civil Engineering Projects 

department, regionally (in Austria) through the Vienna office and Porr GmbH and internationally 

through the respective PTU companies abroad. 

The Civil Engineering Projects department operates in the fields of underground railway construction, 

motorway and expressway construction, bridge construction, energy engineering and power plant 

construction. In November 2005, the Bindermichl project unit on the A7 “Mühlkreis” motorway 

was handed over on schedule. Much of the construction work on project unit U 2/5 (Stadion) in 

connection with the Vienna underground railway project has been completed; contracts for the units 

U 2/6 (Donaumarina) and U2/10(Aspernstrasse) were secured in December 2005 following a lengthy 

awards procedure. Our Vienna office performs the full range of engineering construction and civil 

engineering tasks at regional and municipal level in Vienna and its environs. Its remit includes 

everything from bridges, car parks and industrial plant to sewer pipes and district heating pipelines.


KEY DATA, PTU GROUP 2005 CHANGE 2004 2003 

Turnover in million € 880.9 + 30.0% 677.8 706.2 

Foreign share of turnover 38.6% + 4.4 PP 34.2% 36.1% 

Orders on hand at year end 

in million € 663.8 - 8.6% 726.5 574.7 

Average number of employees 3,562 + 3.9% 3,428 3,509 

Railway construction 

The railway construction area fulfils contracts for rail-related constructions such as railway 

bridges, underpasses and stations as well as substructure works and track construction work. The 

“reinforced track” system developed by PORR in collaboration with Austrian Federal Railways 

continues to constitute a technologically significant specialist area. The focus of activity in 2005 

was on the four-track extension of the Westbahn line around the Linz–St. Pölten–Tullnerfeld 

areas. Wide-ranging construction work is also in progress in connection with the expansion and 

redevelopment of the underground rail station at Schwechat airport. Another major sales generator 

in 2005 was the “track construction for Bosnia” project involving the Bradina–Konjic and 

Josavka–Banja Luka lines. The “Jedrinje tunnel” contract has already been secured for 2006. 

FAST-TRACK TECHNOLOGY 

Specialist civil engineering 

The Foundations department delivers specialist civil engineering services such as bored piles, 

diaphragm walls, insulation walls, drilling and injection tasks and pile driving work. Through the 

PTU branch offices, contracts are also gained beyond the borders of Austria; the company is 

particularly active in Hungary. In future, we plan to develop the Hungarian market by establishing 

a separate foundations department within Porr Budapest Kft. In Sri Lanka, the bulk of the work 

on the pile foundations of Waagner Biró bridges was successfully concluded as a one-off project. 

SUCCESS IN BOTH 

AUSTRIA AND HUNGARY 

Tunnel construction 

The tunnel construction sector is now benefiting from significant growth impetus in Austria. Investment 

in the expansion of the rail and road network – and further investment on the part of energy 

suppliers – will ensure a steady stream of contracts over the coming years. Porr Tunnelbau GmbH is 

ideally placed to meet these challenges. In 2005, technically complex tunnel driving work involving 

artificial icing technology and injection engineering continued in Vienna on the underground railway 

U 2/1 project unit (Schottenring). Tunnel driving for the Wiental main sewer was brought to a highly 

successful conclusion in April; proceeding at 36 metres per day, we achieved a world first in tunnel 

driving with a large EPB shield. Two tunnelling machines were constructed for the “Wienerwald 

tunnel” project; these were put into operation in autumn 2005. The Lötschberg base tunnel project 

linked to the MaTrans joint venture, also neared completion in 2005. 

TUNNEL DRIVING 

AT RECORD LEVEL 

NASENBACHTAL, GERMANY 

WIENERWALD TUNNEL, AUSTRIA 

M6 MOTORWAY, HUNGARY 

33

THE HIDDEN FACE OF PORR.

SOME OF OUR TECHNICAL 

MASTERPIECES NEVER SEE THE 

LIGHT OF DAY. 

GROWING IN EVERY DIRECTION MEANS HEADING UNDERGROUND: 

PORR can also point to a long company tradition in the field of 

tunnel construction. For 137 years, we have been gaining the 

kind of invaluable experiences that make us such an innovative 

company today. No wonder our technical solutions are in such 

high demand. 

Built by PORR TUNNELBAU, the Wiental main sewer relief channel 

is a masterpiece of classical engineering, running for 2.6 kilometres 

at a depth of 30 metres below the heart of Vienna. For tunnel 

driving, we used a shield tunnel boring machine with an impressive 

diameter of 8.60 metres: a mere number to some, but an ideal 

solution at the cutting edge of technology to our customers.


EXTENDING THE VALUE 

CHAIN WITH ENVIRONMENTAL 

EXPERTISE 

SECURING THE SUPPLY 

OF RAW MATERIALS 

Environmental technology 

Within the framework of the Budgetbegleitgesetz legislation of 2003 (a series of legal measures 

aimed at supporting the labour market opportunities of older employees), an amendment was 

passed to the Contaminated Sites Clean-up Act. This introduced an increase in charges for contaminated 

sites and the liability to pay charges on incinerated waste. On the basis of the associated 

budgetary surplus of the federal government, we are working on the assumption that subsidies for 

hazardous site remediation will remain available. The strategy of Porr Umwelttechnik GmbH is to 

establish the longest possible value chain. For this reason, whilst developing resources for treating 

inorganic waste in particular, the company continues to pursue and acquire complex restoration 

projects. These include the restoration of the TEERAG-ASDAG Simmering site and the restoration 

of the Angeler pit in the Neustadt area of Vienna, which commenced in January 2006. 

Resources 

Thanks to Schotter- und Betonwerk Karl Schwarzl Betriebsgesellschaft m.b.H., a wholly-owned 

subsidiary of PORR under the industrial management of PTU, we can remain largely independent 

of external rock and concrete resources. Operating five quarries and three gravel pits in Austria, four 

gravel pits in Germany and a total of 15 concrete manufacturing plants in Austria, Hungary and 

Croatia, Schwarzl is a key player in this field. A major exploration for raw materials began in southeastern 

Europe in 2005 to ensure we are ready for the large-scale building projects of the future. 

PORR GMBH FOCUSES 

MARKET PRESENCE 

GEOGRAPHICAL PRESENCE 

Austria 

Porr GmbH – through which branch offices are managed in Lower Austria, Upper Austria, 

Salzburg, Tyrol, Styria and Carinthia – positioned itself effectively in 2005, its first year of 

business. Under the joint management of PTU and PPH, Porr GmbH functions as a cross-sector 

company in the fields of regional building construction and civil engineering. The company also 

performs a certain level of intensive construction-related project development. The contract to 

build the stadium in Klagenfurt – which attracted widespread media coverage – was secured in 

mid-2005. This led to follow-up orders for stadium redevelopments in Innsbruck and Salzburg. 

At the end of 2005, Vorspanntechnik GmbH & Co KG (VT) joined the new franchise company 

BBR-VT International AG. In addition to its globally recognised brands, BBR provides a licensee 

WIENTAL MAIN SEWER RELIEF CHANNEL 

36 

ZAGREB TOWER OFFICE BUILDING, ZAGREB 

BRIXLEGG TUNNEL, TYROL


network encompassing over 40 countries; VT can contribute the technology of the VT strand posttensioning 

system and CMM technology. 

Germany 

The situation on the German construction market is still uncertain. For this reason, Porr Technobau 

und Umwelt GmbH, which has offices in Berlin and Munich, limits itself to performing 

selected technically demanding engineering construction and power plant construction projects, 

accepting falls in turnover in favour of profitability. A similar policy is pursued by Betzold 

Rohrbau GmbH & Co KG, which operates in the fields of gas, water and district heating pipeline 

installation from its offices in Nuremberg. 

Switzerland 

Porr Suisse GmbH asserted itself well in a tough market environment in 2005. The main 

operational emphases in the central Switzerland region were on the Portaldach Hergiswil site and 

noise protection projects on the Zug–Gotthard railway line. A noise protection project for the 

Hardturm stadium in Zurich was completed, whilst the General Contractor department finished 

renovating the Embassy of Qatar in partnership with PPH. Measures to counter the occurrence 

of lifting tunnel invert in the Chiemberg tunnel were also completed by Porr Tunnelbau GmbH 

in 2005. 

Hungary 

During the main construction phase in 2005, output reached a peak on the project unit for 

the M6 Budapest–Dunaujvaros motorway, which extends for over 58.6km. Two thousand workers 

installed 80,000 cubic metres of imported fill every day; 550 trucks were deployed; seven asphalt 

mixing plants produced a total output of 760 tonnes per hour. 

MARKET REMAINS 

HESITANT 

STEADY DEVELOPMENT 

RECORD OUTPUT IN 

MOTORWAY CONSTRUCTION 

Porr Budapest Kft. has positioned itself well on the Hungarian market. Having supplied a wide 

range of road building, bridge construction and sound barrier installation services in connection 

with the M6 project, another motorway project unit – the M0 east sector, unit 2 – was acquired 

towards the end of the year. Porr was also contracted during the reporting year to carry out 

construction work on a station stop for the Budapest Metro (line 4). 

Southeastern Europe 

Business activity in eastern and southeastern Europe expanded steadily during 2005. A contract 

to erect a cable-stayed bridge over the River Drava in Ptuj, Slovenia, was signed in September. In 

Bosnia and Herzegovina, most of the work was completed in relation to two track construction 

orders in the Republic of Srpska. Structural shell work for the 21-storey Zagreb Tower proceeded 

according to plan in Croatia; a topping-out ceremony took place in April 2006. In Serbia, 

Romania and Bulgaria, tenders were submitted for projects in the fields of infrastructure (road 

and rail construction), environment (waste utilisation, waste disposal sites) and energy/hydraulic 

engineering (power stations). Negotiations have proved to be extremely complex and remain 

incomplete in some cases. 

BUILDING PRESENCE 

OUTLOOK 

Securing core business whilst prudently expanding the foreign markets are the strategic pillars of 

Porr Technobau und Umwelt AG. The further education and training of staff is a particular priority 

in terms of maintaining high quality standards. These strategic objectives are supported by 

continual adjustments to the organisation of the operational and commercial law framework. 

MEASURED EXPANSION 

CONTINUES 

37


PORR PROJEKT UND 

HOCHBAU AG (PPH) 

NIKOLAUS PERVULESKO 


CHAIRMAN 

JOHANN HÖDL 


MEMBER 

BERTOLD WILD 


MEMBER 

BERND GAISWINKLER 

EXECUTIVE BOARD MEMBER 

(SINCE 1.7.2005) 

SPECIALIST IN 

BUILDING CONSTRUCTION 


Within the PORR Group, Porr Projekt und Hochbau AG (PPH) is responsible for all building 

construction activities, and especially general contractor services, project planning and project 

development. The company performs highly complex tasks on site to the satisfaction of customers 

on the basis of meticulous preparation and the coordinated deployment of specialists. 

CORE EXPERTISE 

IN CONSTRUCTION 

FROM A TO Z 

FOCUSING DEVELOPMENT 

EXPERTISE 


Construction processing remains one of the central areas of PPH expertise. In the field of high-rise 

building construction in particular, PPH has developed into one of central Europe’s leading 

suppliers in recent years. However, the company also generates considerable volume in hotel 

and residential construction, office construction, industrial building projects and revitalisation 

measures. 

Project planning 

In a field that is closely related to building construction, we also deal with every aspect of the 

architectural and structural engineering planning of construction projects. We support our clients 

at every stage, from the design and economic assessment of a building project to assistance with 

running buildings. 

Project development 

The project development tasks of the PORR Group were brought together within Porr Solutions 

Immobilien- und Infrastrukturprojekte GmbH in fiscal year 2005. PPH cooperates closely with 

this company (in which it holds a participating interest) as a construction services provider at the 

design and performance stages. Projects in Vienna and Hamburg are currently in progress. 

38


KEY DATA, PPH GROUP 2005 CHANGE 2004 2003 

Turnover in million € 589.7 + 26.8% 465.0 420.5 

Foreign share of turnover 41.6% - 7.2 PP 48.8% 43.8% 


in million € 452.8 + 9.2% 414.7 340.1 

Average number of employees 1,867 + 33.6% 1,397 1,185 


At the end of 2005, PPH had established a presence on the markets of Austria, Germany, 

Poland, the Czech Republic, Slovakia, Hungary, Croatia and Romania. We also moved into the 

markets of the constituent states of the former Yugoslavia during the year under review; in 

partnership with sister company Porr Technobau und Umwelt AG (PTU), subsidiaries were set 

up in Zagreb, Belgrade, Sarajevo and Banja Luka. We are currently assessing and planning our 

entry onto the highly promising Ukrainian market. 

GROWING PRESENCE 

Austria 

Although our geographical presence is expanding, Austria continues to account for a large 

proportion of our business. The most notable of many projects in 2005 included the VIP and 

Aviation Center at Schwechat airport, the completion of new residential construction units for 

Monte Laa and a privately financed property for the Federal Ministry for Education, Science and 

Culture at Marchettigasse. 

PRESENCE IN AUSTRIA 

OPTIMISED BY PORR GMBH 

The Viennese branch office of PPH also operates successfully in the sector of revitalisation, 

renovation and refurbishment. A high level of expertise was required, for example, in the 

development and conversion of the “boiler house courtyard” at the Hofburg, the revitalisation 

of the listed Schloss Hof castle and the renovation of the Ehamgasse residential complex. 

The branch offices of Porr GmbH, the joint subsidiary of PPH and PTU founded in 2004, 

positioned themselves successfully on the market during the year under review. Porr GmbH 

brings together the branch offices of its parent organisations in the federal states of Lower 

Austria, Upper Austria, Salzburg, Tyrol, Styria and Carinthia. The growth in output achieved by 

the aforementioned corporate units underlines the success of the strategic merger. The respective 

specialists of PPH and PTU will continue to work on specific large-scale and specialist 

construction projects. 

EUROTOWER ZAGREB, CROATIA SIEMENSSTRASSE BUSINESS SCIENCE PARK, VIENNA EPSILON, ST. PÖLTEN 

39

THE INTERNATIONAL 

FACE OF PORR. 

WE THRIVE ON CHALLENGE. 

WE CAN SEE THE POSITIVE FACE OF EVERY COUNTRY: Alongside Austria, Germany and Switzerland, the 

PORR Group has been working successfully for many years in the fast-expanding countries of central 

and eastern Europe. When it comes to large-scale projects in particular, our service portfolio knows no 

boundaries. Wherever they are, our customers can count on a comprehensive range of high-level services. 

To give one example, the “Business Technology Park” office construction project at Chodov (near 

Prague) has demonstrated our effortless ability to realise highly complex projects beyond our own 

borders. Within twelve months of the contract signing in January 2002, the first tenants were taking 

up residence. This achievement was underlined by a series of follow-up orders: various constructions 

have since been realised (sometimes simultaneously), including the European data centre for logistics 

group DHL. This project will gradually expand over the coming years to encompass a final gross floor 

area of 200,000 square metres.


FOCUS ON RESIDENTIAL 

CONSTRUCTION 

Germany 

In fiscal year 2005, Munich-based Porr Aktiengesellschaft contended with a German construction 

market that remains in decline. In Munich, high vacancy rates in office buildings led to a 

shift in focus to residential construction. Turnkey projects are in progress in the new city development 

regions of Arnulfpark, Neue Messestadt Riem (on the site of the old airport) and the Unterbiberg 

district of Munich. In Hamburg, properties linked to the new Hafencity development were 

handed over on schedule; in a follow-up order, we have been contracted to build a new turnkey 

property at Neuer Wall, also in Hamburg. 

POLAND EMERGES AS 

KEY FOREIGN MARKET 

Northeastern Europe 

During the fiscal year, Poland accounted for around 16% of PPH construction output, making it 

the strongest foreign market. The turnaround that began in the previous year is now a fullyfledged 

trend: we have been responsible for realising complex large-scale properties in the residential, 

office construction and industrial construction fields. Having realised the first section of 

a major shopping centre in Posen to the satisfaction of the building owner, the contract to complete 

the second section is particularly significant. On the basis of a healthy orders situation, we 

expect Porr (Polska) S.A. to develop positively in 2006. 

Modzelewski & Rodek Sp. z o.o., our 50%-owned associated company based in Warsaw, maintained 

its encouraging business development in 2005. Measures taken to counteract capacity 

bottlenecks on the Polish labour market included the greater involvement of this company. 

Stal-Service Sp. z o.o., an 80%-owned associated company of Porr (Polska) S.A. that operates an 

iron forge in Warsaw, also enjoyed a satisfactory fiscal year. Although the steel market stabilised 

slightly during the reporting year, we fully expect prices to rise. 

ZAGREB TOWER, CROATIA 

42 

RAINER RESIDENTIAL ESTATE, ST. PÖLTEN


Porr (Česko) a.s. maintained its momentum of success in 2005. The large-scale Chodov Business 

Technology Park project generated several follow-up contracts for additional building sections. 

We are also constructing the Smirchov Gate office building in the centre of Prague. In terms of 

construction output and revenue development, the company is stable; a positive order balance 

guarantees that target figures for 2006 will be met. 

Porr (Slovensko) a.s. constructed and upgraded bank branches in 2005, and also built a 

production plant for an Austrian vehicle supply company. We expect our Slovakian subsidiary 

to consolidate its market position in 2006. 

Southeastern Europe 

During fiscal year 2005, our Hungarian company Porr (Hungária) Magasépítési Kft. was primarily 

concerned with the main construction phase of the large-scale Europe Tower project. 

FIELD OF ACTIVITY GROWS 

Having also commenced construction activity in Romania in this year, we are currently pursuing 

contracts from international investors. 

In Serbia and Montenegro, we are preparing our market strategy through a joint associated 

company in partnership with our sister company PTU. 

Porr (Hrvatska) d.o.o., another associated company set up with PTU, developed well during 

the fiscal year, achieving a high capacity level thanks to a number of major orders in Zagreb. 

The in-house project “Zagreb Tower” is scheduled for completion in 2006. 

OUTLOOK 

The steady revenue-based growth of PPH is set to continue in 2006 on the basis of the solid 

domestic market of Austria, which accounts for around half of total construction output. 

Encouraging developments in Poland, the Czech Republic and Croatia make us doubly confident 

of breaking into new markets. 

STILL ON COURSE 

FOR SUCCESS 

CHODOV BUSINESS TECHNOLOGY PARK, PRAGUE 

43


TEERAG-ASDAG AG (T-A) 

KARL PULZ 


CHAIRMAN 

JOSEF STEKOVICS 

EXECUTIVE BOARD MEMBER 

(SINCE 21.4.2005) 

SUCCESS THROUGH 

COVERAGE 


With a majority shareholding of over 52%, PORR AG also holds the industrial management of 

TEERAG-ASDAG AG, which specialises in road construction, canal building works, environmental 

protection activities and the full range of sealing works. The company’s success and high level of 

competitiveness are ensured by its widespread coverage of the Austrian market; its strong market 

position is further underpinned by a dense network of asphalt mixing plants and a secure supply 

of raw materials. 

In addition to large and complex projects in the infrastructure area, we also perform smaller, 

regional construction jobs for local authorities and private clients. Our main strengths within our 

business areas are reliability, adherence to schedules and innovative flair. 

FOREIGN MARKETS 

GROW IN IMPORTANCE 


Road construction 

Accounting for over 50% of output, the road construction sector constituted our most important 

business area. Given the rising demand for fast and safe transport networks across Europe (and 

particularly in central and eastern Europe), this segment is a key driver of growth. 

With an order volume of around €35.2 million, the renovation of the Böheimkirchen-Kirchstetten 

stretch of the A1 Westautobahn (performed as a joint venture) was a significant project. The construction 

of the Gnas link road on the B68 at Gniebing, Styria, also deserves special mention. 

With a volume of around €140.8 million, the construction of a new 4.2-kilometre section of the 

D47 motorway from Hrusov to Bohumin, including two bridges spanning the River Oder, ranks as 

a flagship project for our Prague subsidiary PSVS a.s. (realised as a joint venture). 

44


Environmental protection activities 

Another component of our service portfolio 

is environmental protection, which includes 

the construction of supply/disposal 

pipelines, sewage treatment plants and 

sound barriers. Activities during the year 

under review included a wastewater 

KEY DATA, T-A GROUP 

Turnover in million € 

Foreign share of turnover 


in million € 

Average number of employees 

2005 

787.3 

15.1% 

349.5 

4,812 

CHANGE 

+ 10.7% 

+ 4.7 PP 

- 3.5% 

+ 5.0% 

2004 

711.3 

10.4% 

362.1 

4,581 

2003 

692.8 

10.0% 

278.4 

4,702 

purification plant at Bad Gleichenberg, Styria, a sewage system and pumping station in Amlach, 

Carinthia, and a municipal sewage system at Pennewang in Upper Austria. 

Concrete construction and bridge building 

Once again, many characteristic construction projects were completed in this sector during 2005. 

In the concrete construction area, unit 3 of the Wörgl-Bruckhäusl by-pass project was particularly 

notable. Having completed units 1 and 2, we are pleased to report that TEERAG-ASDAG AG 

secured the final project unit as part of a joint venture. We were also contracted to build the 

Olympia Bridge, a 200-metre steel composite bridge at Innsbruck. The Milser Innbrücke project 

on the B174 in Tyrol was also realised. 

Sealing work 

Over recent years, the sealing sector has developed into a significant operational field in Austria 

and the neighbouring countries. In the year under review, we carried out a structural reorganisation 

aimed at reflecting the increasing importance of this area. With retroactive effect to 

1st January 2005, the companies BAUVEG-Baubetrieb GmbH, ISO-Bau Abdichtungstechnik 

GmbH and Polydicht Abdichtungstechnik GmbH were merged to form IAT GmbH. 

NEW FIELD DELIVERS 

DIVERSIFICATION 

We are one of Austria’s leading providers in the field of bituminous sealing and the sector of 

plastic insulation for tunnel, waste disposal site and storage reservoir construction. IAT GmbH 

carried out numerous technically complex sealing projects in tunnels during the year under 

review. The best example of our foreign activities was the sealing work for the Gotthard base 

tunnel in Switzerland. 

Road markings 

Road marking work was performed throughout Austria in fiscal year 2005 in connection with 

various large-scale motorway project units as well as major federal and regional routes. Thanks 

to our deployment of the latest technologies and the expertise of our staff members, we have 

become a specialist in this field and one of the leading providers in Austria. 

SOEDING WASTEWATER PURIFICATION PLANT KÜHHÖRNDLWEHR POWER STATION POYSDORF-WILFERSDORF WIND FARM 

45

THE PURE FACE OF PORR. 

THE TOUGHER THE CHALLENGE, 

THE BETTER THE SOLUTION. 

A MULTI-FACETED COMPANY CAN FACE EVERY SITUATION: With four 

business divisions, there’s really nothing that we can’t build. As our 

impressive list of references proves, we know how to link our fields 

of expertise to resolve even the most complex of tasks to the fullest 

satisfaction of the customer – whether that means a sophisticated 

office building in the city or a wastewater treatment plant in the 

mountains. 

In 1979, we constructed a sewage treatment plant to service the 

15,700 inhabitants of Sölden. However, given that the number of 

people in this popular winter sports destination rises sharply during 

the season, TEERAG-ASDAG AG – without interrupting the operation 

of the plant – has expanded the plant’s capacity to cope with an 

average of 90,000 inhabitants. Now that figure can be ramped up to 

120,000 whenever extra capacity is needed. All components of the 

plant with an overall height of up to 9.6 metres have been embedded, 

making them virtually invisible. Although the lack of space and 

challenging physical location made for tough working conditions, the 

new plant was delivered right on schedule.


FOREIGN MARKETS 

GROW IN IMPORTANCE 


Outside of Austria, TEERAG-ASDAG AG 2005 concentrated on the Czech Republic, Poland, 

Hungary, Switzerland and Croatia. 

With nine branch offices and a number of subsidiary companies, the company is represented 

throughout Austria, guaranteeing optimum customer support. We are pursuing the same strategy 

on all of our markets. 

TEERAG-ASDAG AG also runs PSVS a.s. (Prazské Silnicní a vodohospodárské stavby a.s.), a 

wholly-owned subsidiary since the end of 2005 and now the leading company in Greater Prague 

for road construction and civil engineering. Branch offices have been established in Bohemia and 

Moravia. 

The Warsaw-based subsidiary TEERAG-ASDAG POLSKA Sp. z o.o., founded in 2004, successfully 

acquired and completed a number of road construction projects. 

Our plastic insulation technology company GUNIMPERM-BAUVEG SA, which operates on the 

Swiss market, mainly handles localised special orders linked to tunnel sealing. Through our sealing 

group companies, we are also represented on a project-related basis in Germany, the Czech 

Republic and Croatia. 

We have positioned ourselves effectively in western Hungary with the subsidiary Teerag-Asdag 

Kft. in Mosonmagyaróvár and its branch office in Szombathely, which focuses on road construction 

and canal building projects. Moreover, the participation in the ASDAG Kavicsbanya gravel 

works in Jánossomorja ensures our supply of raw materials. 


EXPANDED 

OUTLOOK 

Our strategic objective in Austria is to keep our market share at least stable and steadily improve 

our earnings situation. We are aiming to build market share in Hungary and Poland and maintain 

this at a high level over the long term. Given the excellent market prospects in Slovakia, we are 

planning to open a subsidiary in the Greater Bratislava area. During 2006, we also hope to gain a 

foothold in Slovenia, Croatia, Bosnia and Herzegovina and Serbia and Montenegro in partnership 

with our sister company PTU. 

NASSFELD GFÄLL TUNNEL JOINT VENTURE WÖRGL-BRUCKHÄUSL JOINT VENTURE 

48


PORR SOLUTIONS 

IMMOBILIEN- UND INFRASTRUKTURPROJEKTE 

GMBH (PS) 

FRIEDRICH GRUBER 

MANAGEMENT BOARD 

MEMBER 

RUDOLF KRUMPECK 


MEMBER 

GEORG PAMMER 


MEMBER 


The PORR Group established a new, national project development company in the first half of 

2005: Porr Solutions Immobilien- und Infrastrukturprojekte GmbH. This wholly-owned subsidiary 

brought together Porr Immoprojekt GmbH and Porr Infrastructure GmbH, two companies that 

have been active in project development for many years, thereby pooling their expertise in 

this field. The areas PT&S GmbH (construction, planning and project management) and FMA 

(specialising in total facility management) were also assigned to project development. 

POOLING SOLUTIONS AND 

DEVELOPMENT EXPERTISE 

These strategic measures have enabled the PORR Group to hone its reactions to the European 

market whilst consolidating its position as a supplier of complex, customer-specific solutions. 

MONTE LAA DEVELOPMENT DISTRICT, VIENNA 

TERMINAL TOWER OFFICE BUILDING, LINZ 

(GENERATED IMPRESSION) 

LTE, TRANSPORT BY RAIL 

49

THE CLEVER FACE OF PORR.

WE FINANCE THE FAST ROADS TO 

THE FUTURE. 

INNOVATION MEANS FINDING NEW FACES TO EXISTING MARKETS: 

Over the coming years, major infrastructure projects will increasingly 

be financed by means of public-private partnerships and franchise 

models. This will ease the financial burden on public budgets. We 

have already built up a highly impressive stock of references for 

this high-potential new business model on the basis of small-scale 

projects at home and abroad. 

In the PPP project concerning the M6 motorway between Budapest 

and Dunaùjvaros, the PORR Group defeated strong international 

competition to be awarded the first section of 58.6 kilometres. The 

€500 million project will be completed in just 18 months under the 

terms of a joint venture; the consortium will be responsible for upkeep 

over the subsequent 20 years and six months. Refinancing from 

the Hungarian state will take the form of a fixed annual payment. 

A complex bonus-penalty system will ensure a high operational 

standard is maintained.


KEY DATA, PS GROUP 2005 CHANGE 2004 

Invested project volume 

in million € 206.0 243.3% 60.0 

of which domestic 30% - 30 PP 60% 

of which foreign 70% + 30 PP 40% 

Average number of employees 41 24.2% 33 

CORE BUSINESS EXPANDED TO 

INCLUDE OPERATOR MODELS 


The development, planning, construction, financing, operation and marketing of real estate and 

infrastructure-related properties in Austria and abroad makes up the core business of PORR 

SOLUTIONS. 

In the real estate area, the PORR SOLUTIONS portfolio centres on office and corporate properties, 

industrial and commercial real estate, public properties and the development of municipal 

districts. 

In the field of infrastructure, various public-private partnerships and services are provided and 

performed in connection with waste and wastewater disposal, the traffic sector (road and rail) 

and public health alongside in-house investments in the energy sector. 

PORR SOLUTIONS is therefore represented in many future-oriented sectors within the construction 

and service sphere. The company’s success is rooted in its expertise, performance capability 

and its well-established network. All services are provided from a single source; processes and 

interfaces are subject to continual enhancement, and synergies arising between PORR Group 

subsidiaries are utilised to the maximum advantage. 

GREATER PRESENCE 

IN EASTERN EUROPE 


PORR SOLUTIONS has subsidiaries in Germany, Poland, Croatia and Romania; a cooperative 

agreement has been established with local partners in Bosnia; project/associated companies have 

been set up in Hungary, Slovenia and Serbia. 

SKYLINE DEVELOPMENT – OFFICE AND MORE, VIENNA 

52 (GENERATED IMPRESSION) 

FORD OFFICES AND DEALERSHIP – 

AUSTRIAN HEADQUARTERS, VIENNA 

CARLOFT RESIDENTIAL PROJECT, BERLIN


OUTLOOK 

The project development area is regarded as having high potential, especially in the real estate 

and infrastructure sectors in eastern Europe. For this reason, we are expanding the company’s 

presence in the region. 

In future, PORR SOLUTIONS will be able to offer a greater range of services, particularly in the 

fields of planning and project management and total facility management. With a comprehensive 

service portfolio, it will be possible to offer customers a “lifecycle model” in the real estate and 

infrastructure areas: in order words, to provide maximum support throughout the lifecycle of a 

project, from the initial idea onwards. Services like financing concepts and franchise/operator 

models will also be extended. 

As an efficient partner within central Europe, PORR SOLUTIONS raises the project development 

profile of the PORR Group in an internationally competitive environment. The stated aim is a 

significant increase in market share and a major contribution to Group profits over the long term. 

VILA NERETVA RESIDENTIAL, OFFICE AND 

COMMERCIAL BUILDING, MOSTAR, BOSNIA 

SECTION OF M6 MOTORWAY, HUNGARY 

FORUM AM BAHNHOF OFFICE AND COMMERCIAL CENTRE, 

QUICKBORN (HAMBURG) 

53


PORR ON THE STOCK EXCHANGE 

UNEVEN DEVELOPMENT FOR 

CAPITAL MARKETS IN 2005 

DEVELOPMENT OF INTERNATIONAL CAPITAL MARKETS 

Fortunes varied for the international share markets in 2005. Although most European indices 

developed positively on the back of encouraging company reports and the Japanese Nikkei index 

hit a five-year high, the Dow Jones index in America barely moved from the previous year’s level. 

In Vienna, the ATX leading index tracked the development of share indices in eastern Europe, 

comfortably outperforming the main international indices with a recent rise of 50.8% and closing 

the year 2005 on 3,667.03 points. In contrast to other international stock exchanges, the 

Austrian shares market sustained a record-breaking mood throughout the period, achieving new 

all-time highs on over 50 separate trading days. This development was assisted mainly by the 

business profits of companies listed in Vienna (which exceeded the international average) and 

the proximity to the rapidly expanding economies of central, eastern and southern Europe. The 

accession of ten countries to the European Union in 2004, four of which are neighbours of 

Austria, further focused the attention of international investors on the favourable economic and 

geographical conditions enjoyed by companies listed in Vienna. 

MARKET CAPITALISATION 

OF VIENNA STOCK EXCHANGE 

HITS RECORD HIGH 

As of the end of 2005, domestic market capitalisation (domestic shares, including jouissance 

and participation shares in official trading, OTC market and third market) on the Vienna Stock 

Exchange amounted to €107.1 billion, 65.8% above the comparable value of the previous year 

(€64.6 billion). The key figure for market capitalisation as a percentage of gross domestic 

product – used for international comparison purposes – thereby increased to over 40%. The 

Vienna Stock Exchange has thus achieved, faster than expected, a market position that bears 

comparison with other stock exchanges in western Europe. 

MARKET CAPITALISATION OF 

PORR SHARES UP BY 37.4% 

PORR SHARES 

In 2005, the development of PORR shares was characterised by a rapid rate increase early in 

the year. By year end, the stock market price of PORR ordinary shares had risen by 33.3%. 

With a rise of 48.0%, the widely dispersed preference shares mirrored the extremely positive 

development of the overall market. Owing to the very low liquidity of ordinary shares, these have 

been traded on the Standard Auction Market of the Vienna Stock Exchange since the start of 

the second quarter of 2006 rather than the Standard Continuous Market. 

The sharp rate rise in the company’s ordinary and preference shares produced a significant 

increase in market capitalisation from €173.6 million at the end of 2004 to €238.6 million 

at the end of 2005. 

54


SHAREHOLDING STRUCTURE OF PORR AG 

BY EQUITY SHARE 

CORRECT AS OF 31.12.2005 

K 5 29.71% 

K 1 41.54% 

SHARE SALE PROGRAMME COMPLETED IN APRIL 2005 

In fiscal year 2005, the decision was taken to sell own shares in the possession 

of the company since 1991 through the stock exchange. Between 6 th April and 

27 th April 2005, all 19,438 ordinary bearer shares – equivalent to 0.98% of the 

total number of shares or 1.45% of ordinary shares – were sold through the 

Vienna Stock Exchange at an average price of €112.36 per share. The aim of the 

sale programme was to increase the portfolio investment and the trading volume; 

total revenue amounted to €2,184,091.00. 

ORTNER GROUP 

K 4 WIENER STÄDTISCHE VERSICHERUNG 

ISSUE OF ALPS BOND 

An Asset Linked Porr Security (ALPS) bond was placed with a view to improving 

K 5 B&C GROUP 

the financing and liquidity structure. In April 2005, Porr Financial Services AG (PFS), 

a 100%-owned subsidiary of PORR based in Altdorf, Switzerland, issued the bonds as a private 

placement with a nominal value of €72 million, a term of seven years and an interest rate of 

3.9675%. The bonds were securitised with receivables from public clients and customers with 

high creditworthiness. 

K 1 

K 2 

K 3 

K 4 6.64% 

K 3 19.42% 

PORTFOLIO INVESTMENT 

WIENER STADTWERKE 

K 2 2.69% 

RATE DEVELOPMENT FOR PORR SHARES FROM JANUARY 2005 TO APRIL 2006 

(INDEXED ON 1.1.2005) 

170% 

160% 

150% 

140% 

130% 

120% 

110% 

100% 

01 

2005 

02 03 04 05 06 07 08 09 10 11 12 01 

2006 

02 03 04 

PORR ordinary shares 

PORR preference shares 

Vienna Stock Exchange Index 

ATX Austrian Traded Index 

55


CORPORATE BOND ISSUED 

PORR CORPORATE BOND 

In June 2005, PORR issued a corporate bond of €100 million in a further measure aimed at 

improving the capital and financing structure. The bond, with a denomination of €500 and a 

term of five years, has a bond coupon of 4.5%. Based on an issue price of 100.827%, the yield 

upon issue stood at 4.313%. PORR raised the net proceeds from the issue of the debentures 

mainly to bring stabilisation and structural improvement to the financing structure and thereby 

facilitate a rescheduling from short-term to long-term payables. 

PORR CAPITAL SHARE CERTIFICATES 

Although PORR capital share certificates were traded to a very limited degree during the year 

under review, at the end of 2005 they were quoted at 102.6% above the closing rate of the 

previous year. 

KEY DATA ON PORR SHARES 

2005 2005 2004 2004 2003 2003 

IN € ORDINARY PREFERENCE ORDINARY PREFERENCE ORDINARY PREFERENCE 

Rate as of 31.12. 124 112.5 93.0 76.0 94.0 63.3 

Highest rate 133.12 133 95.0 78.96 96.5 69.0 

Lowest rate 94 70.51 85.5 60.0 90.39 54.33 

Earnings per share 12.44 12.44 10.19 10.19 7.35 7.35 

Dividend per share 1.74 1) 1.74 1) 1.74 1.74 1.74 1.74 

Price/earnings ratio as of 31.12. 2) 10.0 9.0 9.1 7.5 12.8 8.6 

Dividend yield as of 31.12. in % 1.4 1.5 1.9 2.3 1.9 2.7 

Market capitalisation at end of year 

in million € 166.4 72.2 124.8 48.8 126.1 40.6 

Payout ratio in % 3) 14.0 14.0 17.1 17.1 23.7 23.7 

1) Proposal to annual shareholders’ meeting 

2) Price/earnings ratio: rate as of 31.12. / earnings per share 

3) Payout ratio: Dividend per share / earnings per share in % 

MEETING THE AUSTRIAN COMPLIANCE GUIDELINES 

In order to prevent the misuse of insider information, the “issuer compliance regulations” of the 

financial market supervisory authority came into force on 1 st April 2002. These were revised 

owing to an amendment to the Stock Exchange Act in 2005. 

In line with the stipulations of the Stock Exchange Act and the issuer compliance regulations, 

PORR enacted a new set of compliance guidelines; these came into force in June 2005. These 

guidelines regulate the exchange of information within the company and define measures to 

monitor all internal and external flows of information with a view to preventing their misuse. The 

aim is to make employees, company organs, consultants and other persons active on behalf of 

PORR aware of the legal prohibition of the abuse of insider information. 

CORPORATE GOVERNANCE 

PORR has not so far made any declaration of commitment to observe the Austrian Code of 

Corporate Governance. Nonetheless, PORR complies with all of the legal provisions and many 

of the “comply or explain” regulations. 

56


M6 MOTORWAY, HUNGARY 

Length of section: 58.6 km 

Total project volume: €500 million 

Implementation term: 18 months 

Under the terms of a public-private partnership, the PORR Group cooperated 

with international partners to defeat strong competition and secure the 

contract to build a 58.6-kilometre section of the motorway between Budapest 

and Dunaùjvaros. The road will be opened to traffic following a construction 

period of just 18 months. Refinancing for the project will take the form of 

a fixed annual payment from the Hungarian state. To ensure a higher-thanaverage 

operational standard, a complex bonus-penalty system has been 

agreed; the project company will also be responsible for maintaining and 

renovating the section for a period of 22 years. 

INVESTOR RELATIONS 

As one of the oldest listed companies in Austria, PORR believes it is duty-bound to provide open 

and regular communication. For all company-related information and to view our quarterly and 

annual reports, visit our home page www.porr.at. Please address any questions to Director Rolf 

Petersen (rolf.petersen@porr.at). 

PORR ON THE VIENNA STOCK EXCHANGE 

NUMBER OF 

FIRST 

ISIN-CODE SHARES QUOTED QUOTING 

PORR ordinary shares AT 000 060 960 7 1,341,750 8.4.1869 

PORR preference shares AT 000 060 963 1 642,000 3.11.1986 

PORR capital share certificates AT 000 060 966 4 49,800 22.10.1990 

FINANCIAL CALENDAR 

Financial results press conference 13.6.2006 

126 th annual shareholders’ meeting, 1pm, 

Absberggasse 47, 1103 Vienna 29.6.2006 

Ex-dividend day 3.7.2006 

Dividend payment day 4.7.2006 

Results for 1 st quarter 2006 Week 25 

Six-monthly results 2006 Week 38 

Results for 1 st to 3 rd quarter 2006 Week 50 

57


EMPLOYEES 

Given our strategy of focusing on complex, know-how-intensive projects as well as straightforward 

construction activities, the basic qualification levels and – more importantly – the ongoing personal 

development of all staff are key priorities. We understand that our employees are our main 

competitive advantage. The PORR Group therefore wishes to present itself as a reliable employer 

offering attractive conditions and a work environment that nurtures the skills of individuals and 

provides interesting challenges. 

ALLOCATION OF EMPLOYEES 

TO COMPANY AREAS 

U 3 47.0% 

U 1 18.2% 

RISING EMPLOYEE NUMBERS LINKED TO GROWTH 

During the reporting year, the average staffing level rose by 8.9% to stand at 10,241 

employees. This figure includes all staff members in operational Group companies and 

those involved in joint ventures (to the extent of respective participation). The initial 

consolidation of WIBEBA accounted for 744 staff members. 

U 1 

U 2 

U 3 

PPH GROUP 

PTU GROUP 

T-A GROUP 

U 2 34.8% 

EFFICIENT ALLOCATION OF PERSONNEL 

The operational structure of the PORR Group is designed to reflect the needs of different 

markets; it enables all company areas to collaborate on specific projects across sectors. 

Against this background, an internal job market was set up to ensure the flexible 

allocation of staff according to needs. The coordinated allocation of personnel helps to 

balance out fluctuating demands and ensure the most effective possible deployment of 

commercial staff. The system also handles external applications, which are passed to 

the relevant departments after initial processing. 

CHANGE 

2005 IN % 2004 2003 

Domestic Blue-collar workers 5,639 + 11.4 5,064 5,192 

Salaried employees 2,396 + 9.5 2,188 2,236 

Total 8,035 + 10.8 7,252 7,428 

Abroad Blue-collar workers 1,208 - 2.0 1,233 1,230 

Salaried employees 998 + 8.4 921 869 

Total 2,206 + 2.4 2,154 2,099 

Overall Blue-collar workers 6,847 + 8.7 6,297 6,422 

Salaried employees 3,394 + 9.2 3,109 3,105 

Total 10,241 + 8.9 9,406 9,527 

58


DEVELOPMENT OF AVERAGE 

STAFFING LEVEL 

10,000 

9,000 

2,099 

2,154 

2,206 

8,000 

8,035 

7,000 

7,428 

7,252 

6,000 

FURTHER EDUCATION AND TRAINING 

The continual further education and training of our staff is carried out in accordance 

with a clearly defined training concept. Every salaried employee of the PORR Group 

complies with an individual training plan, defined in a yearly training agreement 

between the employee and their superior. The training programme is organised by 

the Personnel department with the cooperation and agreement of the Quality Management 

department. The main focus of training for managerial staff, who also take part 

in the programme, is on general and sector-specific management issues; these range 

from company law and planning and building law to staff management. 

5,000 

4,000 

3,000 

2,000 

1,000 

0 

2003 2004 2005 

Domestic 

Abroad 

For many years, the PORR Group has been recognised for its commitment to the education and 

training of young people. Many apprentices gain their vocational grounding in the various skilled 

trades with us. In order to eliminate the training costs of commercial apprentices for the various 

construction centres, a national cost allocation regulation has been introduced for the companies 

in Austria: according to the respective year of an apprenticeship, training costs are progressively 

assigned to a collective cost centre at the higher-level corporate organisation. Those responsible 

hope that this cost-easing model will provide a further incentive to raise the number of apprentices. 

COST ALLOCATION MODEL 

EASES BURDEN ON COST 

CENTRES 

EQUAL RIGHTS FOR ALL 

Following lengthy negotiations, a standard collective agreement between the management and 

the works council that applies to all PORR Group employees in Austria came into force in early 

2005. Differences that related mainly to historically-developed structures and the operational 

integration of TEERAG-ASDAG have now been ironed out. A uniform model now defines the 

rights and duties of staff as well as the structure of benefits such as seniority bonuses and 

long-service payments; the various regulations on pension provision have been standardised. The 

collective agreement also provided a basis for the implementation in 2005 of combined software 

for wage and salary payments, thereby minimising costs in this area. 

STANDARD COLLECTIVE 

AGREEMENT FINALISED 

59


RESEARCH AND DEVELOPMENT 

The focus of structural engineering research activity is on rationalising construction processes, 

improving the performance of materials and structures and developing long-term construction 

projects. 

R&D COOPERATION AT 

NATIONAL AND 

INTERNATIONAL LEVEL 

INTERNAL COORDINATION OF R&D ACTIVITY AT PORR 

The diverse research activities of the PORR Group are coordinated by the Technology Development 

department. Amongst other things, this department is responsible for the organisation of the 

information network between the various corporate areas and technological competence centres of 

the Group. The networking of knowledge supports an interdisciplinary approach and takes account 

of the broad dispersion of the technologies utilised at PORR. In order to address the future needs 

of customers as effectively as possible, international development trends are also continuously 

monitored. Internal R&D activities involve cooperation in Austrian and European committees that 

aim to promote and coordinate research in the field of construction technology. 

STRONG TECHNOLOGICAL 

EXPERTISE IN TUNNEL 

CONSTRUCTION 

DEFINING PRIORITIES IN CIVIL ENGINEERING 

The rationalisation of the construction process by utilising new interdisciplinary technologies is 

being accelerated in civil engineering areas in which the deployment of mechanical construction 

procedures has proved successful in recent years. In the area of tunnel construction, for example, 

we are seeking to bring about constant enhancements to mechanised tunnel driving methods. At 

the same time, we are developing methods and equipment that can raise the level of automation 

in the generation and maintenance of tunnel inner shells. Porr Tunnelbau GmbH is pursuing 

projects of this nature in cooperation with Schotter- und Betonwerk Karl Schwarzl BetriebsgmbH, 

respected machinery manufacturers, experts in the fields of information and communications 

technology and an internal working group for building materials technology, development and 

inspection. Research projects in the foundations area provide a further focus for bringing about 

PANTUCEKGASSE PASSIVE HOUSE RESIDENTIAL COMPLEX, VIENNA 11 

60


“OFFICE AND MORE” SKYLINE DEVELOPMENT, VIENNA 

Total effective area: Approx. 13,000m 2 

Utilised for: Office, catering, commercial 

Constructed on Vienna’s historic Stadtbahnbögen, this 

project – implemented under the direction of Porr Solutions 

Immobilien- und Infrastrukturprojekte GmbH and Porr 

Projekt und Hochbau AG – combines a futuristic-looking 

office design with efficient and flexible floor space solutions 

on seven levels. Its location on a main axis for public and 

private transport maximises the appeal of this project. 

improvements in the production of sealing and foundation elements. In this field, PORR is 

cooperating with the Vienna University of Technology, which is developing a procedure for 

modelling the geometry of foundation elements on the basis of temperature readings during 

and after manufacture. 

R&D FOCUS ON BUILDING CONSTRUCTION 

Research activities in the area of building construction revolve around the development of 

procedures and materials that enhance building insulation, equipment and appliances and 

consequently reduce the construction costs and running costs of buildings. PORR is thereby 

preparing the early ground for a development that – significantly for the medium term – will take 

account of European climate protection targets as well as rising energy prices. In the long term, 

we expect these issues to determine the attractiveness of construction projects to a greater degree. 

ENERGY ASPECTS 

BECOMING MORE 

IMPORTANT 

ELEMENTS OF SUSTAINABILITY AND ENVIRONMENTAL PROTECTION 

For many years, the general business policy of PORR has been to utilise natural resources as 

sparingly as possible. Our specialist service company Porr Umwelttechnik GmbH has also 

established a highly successful business area that deals with the treatment, utilisation and 

disposal of waste material as well as hazardous sites remediation. 

ENVIRONMENTAL 

PROTECTION: 

A KEY AREA OF EXPERTISE 

61


PATENTS FOR 

ENVIRONMENTAL 

TECHNOLOGY 

CONTINUAL ENHANCEMENT OF 

WASTE TREATMENT METHODS 

According to recent studies by the Austrian Federal Economic Chamber, the Austrian environmental 

technology sector has an R&D quota of around 5.6% (material goods production, by 

contrast, only has a quota of around 2%). The high priority assigned to research and development 

activity is shared by Porr Umwelttechnik GmbH, as numerous successfully applied environmental 

technology patents demonstrate. Innovative projects include the utilisation and treatment 

of waste by means of chemical/physical wet processing, the stabilisation of waste using latent 

hydraulic bonding agents and a device for the in-situ purification of contaminated groundwater 

streams using a filter reaction wall. 

Most research activity in this area takes place in connection with projects; this is the best way to 

respond to highly specific and often widely diverse challenges. At the same time, we monitor 

medium-term market trends so that we can define our priorities as appropriate in good time (in 

future, for example, waste will increasingly be used as a substitute raw material or as substitute 

fuel). The current trend in the waste management sector at national and European level is to 

conserve natural resources whilst increasing the degree of utilisation and recycling. Porr Umwelttechnik 

GmbH is responding to this development by improving waste treatment methods and 

utilisation strategies. 

In 2005, Porr Umwelttechnik GmbH introduced an environmental management system in 

compliance with EN ISO 14001. The company consistently pursues the objectives and measures 

that this defines, which are aimed at improving all environmentally-relevant processes on a 

sustainable basis. 

A system that utilises terrestrial heat (for heating and cooling) in combination with a co-generation 

plant will be installed for the first time as part of an office construction project in Vienna. Under 

the project, terrestrial heat exchange systems will be integrated in the diaphragm walls and base 

plates used in the construction of the underground car parks. In summer, these systems will 

channel thermal energy from the building’s cooling system into the ground and store it there. In 

winter, it will then be possible to draw this energy from the ground for heating purposes, thereby 

cutting energy costs substantially. 

ELEMENT OF A FILTER REACTION WALL, T-A SIMMERING 

62 

TUNNEL BORING MACHINE, WIENERWALD TUNNEL SITE


MANAGEMENT REPORT 

GENERAL ECONOMIC ENVIRONMENT 

THE GLOBAL ECONOMY IN 2005 

The global economy continued to expand strongly in 2005 despite sharp rises in raw material 

and crude oil prices. The development was driven by Asia, and in particular China, where the 

pace of growth showed no signs of abating. By contrast, production slowed down in other regions. 

One major factor shaping the overall economic picture in 2005 was the steep increase in the 

price of oil. In the wake of lost production linked to Hurricane Katrina, listings for Brent crude 

oil reached an all-time high of US$70 per barrel in early September. The effects of this on the 

economies of industrialised nations were less dramatic than in the past; low interest rates in particular 

provided an important counterbalance. 

PRICE OF CRUDE OIL 

HITS RECORD HIGH 

During 2005, the USA maintained the economic upturn of the previous year. In spite of devastating 

natural disasters, gross domestic product expanded by 3.5%, only marginally short of the 

previous year’s level. The economic situation was boosted by strong private consumption and an 

acceleration in government spending. Although monetary conditions deteriorated due to the gradual 

increase in key interest rates by the US Federal Reserve Bank, they remain relatively 

favourable. Apart from the interest rate effect, the dollar – revalued in real and effective terms 

despite the rising foreign trade deficit – also had an adverse effect. 

The economies of China and India expanded rapidly in 2005, influencing supply and demand 

throughout the global economy. This led to substantial increases in quotations on commodities 

exchanges for energy and industrial raw materials in particular. The economy in Japan continued 

to pick up, returning real-terms GDP growth of 1.7%; this was mainly due to higher domestic 

demand, the devaluation of the yen and a constant interest rate. 

ECONOMIC DEVELOPMENT IN EUROPE 

In the European Union, economic output was hampered by the increase in oil prices and the 

upward course of the euro and gained momentum only slowly in the first half of 2005. With 

activity picking up in the second half of 2005, GDP for the EU-25 expanded by 1.6% for the 

year as a whole. The main factor behind this development was the surge in non-domestic 

demand. Corporate investment activity also increased thanks to brighter revenue prospects and 

consistently favourable financing conditions. However, private consumption was once again a 

weak link in economic development during 2005. With unemployment remaining high (at 8.7% 

in the EU-25), the steep rise in energy prices restricted net disposable income. At the end of 

2005, the European Central Bank abandoned its hesitant interest rate policy and raised the 

interest rate level, thereby deflating inflation expectations. 

GDP FOR EU-25 

RISES 1.6% 

63


TAXHAM SUBURBAN RAILWAY, SALZBURG 

Project term: February 2005 to May 2006 

Joint venture by PTU, Porr GmbH, T-A, Hinteregger 

A number of business areas within the PORR Group pooled their expertise in 

this project. Working with an external partner company, they were responsible 

for wide-ranging conversion and expansion work on a suburban railway line in 

the vicinity of Taxham station. The project, which involved overcoming technical 

issues linked to vibration as well as substructure works and bridge 

building activities, was handed over on schedule at the end of May 2006. 

MOST CEE COUNTRIES 

ABOVE EU AVERAGE 

Despite difficult macro-economic conditions, economic growth in the countries of central and 

eastern Europe comfortably outperformed the eurozone once again. Foreign trade expanded 

rapidly in the Czech Republic, Slovakia, Hungary and Slovenia (GDP of 6.0%, 6.0%, 4.1% and 

3.9% respectively), while private consumption escalated in Poland (GDP 3.2%). Considerable 

progress was made in terms of the consumer price index (down from 7.5% to 2.8% in Slovakia, 

from 6.8% to 3.5% in Hungary and from 2.6% to 1.6% in the Czech Republic) and the unemployment 

rate (down from 8.3% to 7.9% in the Czech Republic, from 19.0% to 17.7% in 

Poland and from 18.2% to 16.4% in Slovakia). With growth forecasts improving as a result and 

interest and inflation rates levelling out, this had a stabilising effect on exchange rates. 

GROWTH OF REAL-TERMS GROSS DOMESTIC PRODUCT 

IN % 

6 

5 

4 

3 

2 

1 

0 

- 1 

2003 2004 2005 2006e 

EU-15 

Hungary 

Austria 


Germany 

Poland 

Source: OECD 

Economic development in Austria in 2005 was again 

influenced by the country’s location between the 

heavyweight economies of Germany and Italy (albeit 

contending with structural growth problems) and the 

economically prospering CEE countries. Following a 

period of poor performance in the first half of 2005, 

the industrial economy revived thanks to rising export 

demand; overall growth for the year amounted to 1.7%. 

Low levels of private consumption picked up slightly at 

the end of 2005 thanks to a steady inflation rate of 

2.1%. The unemployment rate, however, rose from 

4.8% to 5.2%. Compared to other countries in Europe, 

Austria ranked sixth in terms of unemployment behind 

Ireland (4.3%), Norway (4.6%), the Netherlands and 

Great Britain (both on 4.7%) and Denmark (4.9%), and 

well below the EU-25 average of 8.7%. 

64


DEVELOPMENT OF THE CONSTRUCTION MARKET 

The European construction industry is a patchwork of extremely diverse national circumstances. 

The major western European countries remain in a recessionary phase, but their substantial 

market volume enables them to dominate overall development of the sector in Europe. Although 

central and eastern European markets have achieved healthy growth rates, their influence on the 

general trend will be limited for as long as their market volume is small in absolute terms. 

WESTERN EUROPE: THE EU-15 

During 2005, production value for the construction industry of the EU-15 expanded by 1.8%, 

below the growth rate of the previous year. This reduction was the result of a diminishing readiness 

to invest on the part of the public sector and private investors. Investment in infrastructure 

expansion and the European transport network was too sluggish to compensate for low levels of 

residential construction. Given that the development of civil engineering is heavily influenced by 

the strategies and fiscal policy of the public sector, more and more private finance initiatives 

such as public-private partnerships and franchise models are being developed in order to overcome 

budget restrictions and develop infrastructure in particular. 

LITTLE APPETITE 

FOR INVESTMENT 

Real-terms construction investment in Germany – an important foreign market for the PORR 

Group – declined by 1.0% compared to the previous year despite an economic upturn. Even 

positive prospects for production and turnover in industrial companies led to job creation and 

thus greater investment in development (including construction measures) only in isolated 

instances. With levels of new borrowing by regional and local authorities remaining substantial 

and national debt at extremely high levels, the scope for making decisions on building projects 

was greatly restricted. Moreover, the general picture in Germany is still affected by the varying 

pace of development on the eastern and western German markets. 

CENTRAL AND EASTERN EUROPE 

Construction output continued to rise in 2005 for the new EU states of central and eastern 

Europe. The infrastructure sector in particular benefited from the EU Cohesion Fund, which 

aims to accelerate the process of economic recovery. Apart from the transport infrastructure, 

investment in environmental civil engineering projects such as the development of renewable 

sources of energy (hydroelectric, solar and wind power) has become more significant. In the 

water management sector in particular, the backlog and need for modernisation (as regards water 

and sewage pipelines) remains very high in some countries. This trend raised the profile of the 

region’s construction industry (and especially its civil engineering sectors) during 2005. By 

contrast, building construction was characterised by a temporary stagnation in residential 

construction. In the wake of some high (preliminary) growth rates for 2005 (16.9% in Hungary, 

9.4% in Poland, 7.8% in Slovakia and 4.8% in the Czech Republic), average increases of up to 

7% are anticipated for the years ahead. 

TECHNOLOGY FOR 

INFRASTRUCTURE AND 

THE ENVIRONMENT 

GAINS GROUND 

65


CIVIL ENGINEERING PROSPERS 

AS BUILDING CONSTRUCTION 

STAGNATES 

AUSTRIA 

During 2005, the construction industry in Austria benefited mainly from a 6.6% increase in 

demand for civil engineering which was driven by investment in the transport infrastructure area. 

Non-budgetary financing and a national promotion programme have widened the scope for 

accelerated expansion of the road and railway infrastructure. Orders on hand have been rising 

sharply since early 2005, with strong (preliminary) production growth achieved in the areas of 

tunnel construction (83.1%) and overground railway construction (19.1%). In overall terms, 

the positive trend in civil engineering more than made up for stagnating production output in 

building construction. 

The decline in production value seen over recent years in residential construction continued in 

2005. By contrast, demand for modernisation services and thermal redevelopment almost matched 

the volume of the previous year, with investment in energy-efficient residential construction 

boosted by favourable bank and building society conditions and targeted housing construction 

subsidies. The orders situation at the end of 2005 for companies in the field of industrial plant 

construction was an improvement on previous years, even if the starting level was relatively low. 

In the healthcare sector (hospital building, fitness and leisure sector), the level of private 

investment increased. 

GROWTH OF REAL-TERMS CONSTRUCTION INVESTMENT FOR 2004 AND 2005 

IN % 

25 

20 

15 

10 

5 

0 

The uneven distribution of construction output across 

Austria matched the irregular pattern of regional demand 

levels: over 70% of total construction output was 

realised in the states of Upper Austria, Vienna, Lower 

Austria and Styria. Although Lower Austria and Tyrol 

declined in comparison with the previous year (-4.3% 

and -1.5% respectively), Carinthia and Burgenland 

recorded respective rises of 13.0% and 12.2% (starting 

from a lower base). 

-5 

-10 

EU-15 

2004 

2005 

Austria 

Hungary Czech Republic Poland 

The production value commissioned by public authorities 

exceeded the previous year’s level by 5.4%, with civil 

engineering accounting for 67% of this investment. 

Source: Statistik Austria, Eurostat 

Substantial growth rates of 78.3% in tunnel construction 

and 19.6% in railway construction were achieved. With 

the exception of underground utility mains and cable 

network construction (-6.3%) and specialist/other civil engineering (-3.5%), increases were 

recorded in all fields of civil engineering. Building construction contributed a further 30% of 

public construction investment; in line with the overall situation in Austria, industrial plant 

construction returned the highest growth rate (up by 118.3%) and refurbishment work in building 

construction declined sharply (-14.1%). 

Germany 

Despite an increase in production output compared to 2004, the average number of construction 

employees across the year fell by around 1.3% to stand at 169,487 (according to the Austrian 

Central Statistical Office); there was a parallel 1.4% rise in unemployed construction workers 

(according to AMS, the Austrian employment office) to an average for the year of 42,652. 

66


DEVELOPMENT OF THE REAL ESTATE SECTOR IN EUROPE 

Investment and transaction activity on the European real estate market reached record levels in 

2005; never before had so much been invested. This extraordinary growth was achieved in spite 

of declining yield prospects in all sectors. The investment market is internationally oriented, with 

American, German and British investors dominating the scene. As investment opportunities 

diminish in the key regions, these investors are starting to increase their focus on smaller and 

medium-sized provincial cities and the expanding economies of eastern Europe. The office market 

emerged as the most active sector in 2005, accounting for nearly half of all investment. 

Commercial real estate was responsible for a quarter of investment, with over half of this made 

in shopping centres. As the year progressed, the industrial construction sector attracted ever 

greater interest. Rates of growth were marginal in the other categories (especially multifunctional 

centres). 

INVESTMENT VOLUME 

HITS RECORD LEVEL 

The top 10 real estate markets accounted for around 55% of total volume: London, Paris and 

Stockholm represented more than one third (37.7%). Four German cities (Frankfurt, Berlin, 

Hamburg and Munich) also featured in the top 10 for 2005 despite the sluggish economic 

environment. 

Development by sector varied greatly across the EU-15. In the United Kingdom, France, Sweden 

and Ireland in particular, extremely high growth rates were achieved in the office construction, 

multifunctional centres and residential construction sectors. Owing to a below-average price 

level, Germany constituted the fourth largest investment market of the EU15 in 2005, an 

improvement on previous years. 

TERMINAL TOWER, LINZ, UPPER AUSTRIA 

Total floor space: 30,000m 2 on 24 levels 

Completion: End of 2007 

Working with high-profile partner companies, Porr Solutions Immobilienund 

Infrastrukturprojekte GmbH is developing an office tower on the site 

of the main railway station in Linz. The 98-metre height of the tower is 

not its only impressive feature: the prism-shaped profile of the structure 

and the section extending over the station forecourt give the tower an air 

of lightness that belies its size. It is already clear that the tower, which 

is scheduled for completion in late 2007, will become a new landmark 

in this district of the city. 

67


Record investment was also made in central and eastern Europe, with Poland, the Czech 

Republic and Hungary claiming the lion’s share of around 87%. The first significant investments 

were made in the industrial sectors of Slovakia and Russia and the office sectors of Romania 

and Bulgaria, predominantly by German and Austrian investors. Although office and commercial 

real estate were the dominant sectors in the CEE region, other sectors such as industrial construction, 

multifunctional centres and hotels achieved moderate growth rates. 

OFFICE MARKET 

REVIVES IN VIENNA 

REAL ESTATE MARKET IN AUSTRIA 

With a stable macro-economic environment and quantifiable framework conditions, the demand 

for lucrative investment properties in Austria remained high throughout 2005. Although investors 

from Germany had accounted for more than 50% of total investment in previous years, it was 

Austrian investors who dominated the reporting period. Vienna provided the focus on account of 

its bridging function between eastern and western Europe and its international reputation. On the 

back of the successful relocation of many international companies, the demand for modern office 

space has been increasing for many years: in 2005, floor space totalling around 340,000m 2 was 

rented. The price level for top properties is constant at €22 per square metre/month and remains 

attractive by international comparison (London €112, Paris €53, Dublin and Moscow €44). The 

vacancy rate, which rose sharply from 2.5% in 2000 to 6.5% in 2004, declined marginally to 

6.1% during the reporting period; this corresponds to vacant space of around 600,000m 2 . A 

significant proportion of the investment volume relates to residential space and mixed-use 

properties. The demand for high-quality logistical real estate, which can be rented for an average 

of €4.50 per square metre of storage space, also increased. 

DEVELOPMENT OF OUTPUT 

CONSOLIDATION OF WIBEBA 

DEFINITION OF PRODUCTION OUTPUT 

Within the PORR Group, production output is determined from the annual construction output of 

all operational Group companies according to certain economic criteria. As opposed to the gross 

revenues reported in the Group profit and loss account, the output of joint ventures involving 

PORR AG or one of its subsidiaries is included proportionately in the calculation of production 

output. 

Only the TEERAG-ASDAG Group, in which PORR has a stake of 52.49% and thus holds industrial 

management control, deviates from this rule in that 100% of its output is included. The 

main addition to the consolidated entity was the 100% acquisition of the WIBEBA Group early in 

2005. The comments below as well as the consolidated financial statements for 2005 take 

account of all financial figures of WIBEBA. 

68


DEVELOPMENT OF PRODUCTION OUTPUT 

The PORR Group succeeded in increasing its output volume considerably in 2005. 

Production output of €2,258.0 million exceeded the previous year’s value by around 

21.8% or €403.9 million. Part of this increase in output (€122.8 million) was due 

to domestic organic growth of €1,444.2 million; however, it was mainly due to a 

32.3% (€171.8 million) expansion in foreign activities to €704.5 million. Around 

one quarter of the rise in production output (€109.3 million) resulted from the 

acquisition of WIBEBA. 

For detailed information on the breakdown of production output within the PORR 

Group and explanatory notes on the individual segments, please refer to the diagram 

opposite, the segment reports and the notes to the consolidated financial statements. 

DEVELOPMENT OF FOREIGN MARKETS 

During 2005, the dynamic development of foreign markets contributed significantly 

to the increase in overall production output for the PORR Group. Production output 

rose by 32.3% on the previous year’s value to €704.5 million, with the foreign share 

of total production output up from 28.7% in 2004 year to around 31.2% in 2005. 

The corporate strategy of the PORR Group is to establish the broadest possible 

geographical presence, especially in central and eastern Europe. In this way, we can 

compensate for developments on the sluggish market of Germany, formerly our 

strongest foreign market. There is a huge backlog in the infrastructure, energy and 

building construction sectors, particularly in the new EU member states but also in 

the other constituent states of the former Yugoslavia. Thanks to its early market entry, 

the PORR Group is poised to maximise this potential. 

In Hungary, output volume increased almost eightfold in 2005 to stand at €172.1 

million; this market accounted for 7.6% of total production output. The second most 

productive foreign market was the Czech Republic with 7.3% (€165.1 million) of 

consolidated production output. In Germany, where output volume decreased deliberately 

by about one third compared to the previous year owing to the general economic 

situation, the proportion stood at 6.7% (€151.5 million). The doubling of production 

output in Poland to €103.2 million (4.6% of consolidated production output) helped 

to overcome the slump of the previous year. Switzerland accounted for 1.9% 

(€42.2 million), marginally short of the previous year’s level. By contrast, Croatia 

(1.2%/€27.5 million) and Bosnia and Herzegovina (1.1%/€25.5 million) delivered 

their first significant output contributions. While Slovakia (0.6% or €13.0 million) 

already ranks as one of the PORR Group’s established foreign markets, carefully 

selected launch projects were carried out in Slovenia, Romania and Serbia and 

Montenegro. These initial experiences will help us to maximise existing market 

potential in the future. 

OUTPUT DISTRIBUTION BY SEGMENT 


2,500 

2,250 

2,000 

1,750 

1,500 

1,250 

1,000 

750 

500 

250 

0 

107.7 

692.8 

420.5 

706.2 

711.3 

465.0 

677.8 

787.3 

589.7 

880.9 

2003 2004 2005 

Civil Engineering / PTU Group 

Building Construction / PPH Group 

Road Construction / T-A Group 

Real Estate / UBM Group * 

* The Real estate/UBM Group segment has not 

been managed since the deconsolidation of the 

UBM Group in 2004. 

REGIONAL OUTPUT DISTRIBUTION 


2,500 

2,250 

2,000 

1,750 

1,500 

1,250 

1,000 

750 

500 

250 

0 

581.4 

1,345.8 

532.7 

1,321.4 

704.5 

1,553.5 

2003 2004 2005 

Domestic 

Foreign 

69


DISTRIBUTION OF OPERATING PERFORMANCE 

BY COUNTRY IN % 

L 7 1.2% 

L 6 1.9% L 8 1.9% 

L 5 4.6% 

L 4 6.7% 

L 3 7.3% 

L 2 7.6% 

L 1 68.8% 

DEVELOPMENT OF PRODUCTION OUTPUT BY SECTOR 

Although investment accelerated during 2005 in the infrastructure sector (road and 

rail construction), the PORR Group achieved its strongest growth rates in the building 

construction sectors. With production output of approximately €856 million (up 

€194.2 million), the proportion of building construction in relation to total production 

output increased by 2.2 percentage point to 37.9%. Counter to the general market 

trend, significant growth rates were achieved both at home and abroad in residential 

construction (up 39.0%) and industrial plant construction (up 121.2%). Driven by the 

office and commercial buildings sector, other building construction expanded by a 

considerable 36.9% in Austria, more than compensating for the downturn abroad. The 

proportion of refurbishment work in building construction increased by 9.8% domestically, 

in contrast to a downward trend abroad, albeit on a very low level (-63.9%). 

L 1 

L 2 

L 3 

L 4 

L 5 

L 6 

L 7 

L 8 

AUSTRIA 

HUNGARY 

CZECH REPUBLIC 

GERMANY 

POLAND 

SWITZERLAND 

CROATIA 

OTHER COUNTRIES 

The volume of the civil engineering sectors remained virtually unchanged from 2004 at 

49.9% or €1,125.7 million. Output volume was up in all sectors (except underground 

utility mains and cable network construction), although regional differences were evident. 

The construction of a section of the M6 motorway in Hungary and the increase in 

output at PSVS (a wholly-owned subsidiary of TEERAG-ASDAG in the Czech Republic) 

provided the basis for considerable output growth abroad in road construction (up 

223.4%) and bridge/elevated road construction (up 80.7%). In contrast, output in 

bridge/elevated road construction in Austria expanded by just 13.5%; in road construction, 

output volume fell marginally short of the previous year’s level (-1.1%). The 

OUTPUT BY SECTOR AS % OF 

OPERATING PERFORMANCE 

DISTRIBUTION OF TOTAL PRODUCTION OUTPUT 

BY SECTOR IN % 2005 2004 2003 

S 3 49.9% 

S 4 10.1% 

S 2 37.9% 

S 1 2.1% 

Preparatory site work 2.1 2.0 1.3 

Housing construction 7.2 6.3 5.2 

Industrial plant construction 5.3 2.9 2.6 

Other building construction 24.6 25.4 28.4 

Refurbishment work in building construction 0.8 1.0 1.3 

Building construction 37.9 35.7 37.5 

S 1 

S 2 

S 3 

S 4 

PREPARATORY SITE WORK 


CIVIL ENGINEERING 

OTHER ACTIVITIES 

Bridge/elevated road construction 3.4 2.9 3.0 

Tunnel construction 3.0 2.9 3.8 

Underground utility 

mains and cable network construction 9.0 11.1 10.2 

Road construction 23.5 20.9 19.1 

Railway construction 4.8 4.5 3.2 

Specialist/other civil engineering 6.2 7.4 8.6 

Civil engineering 49.9 49.7 47.9 

Construction activity 89.9 87.4 86.7 

Other activities 10.1 12.6 13.3 

Group 100.0 100.0 100.0 

70


picture was reversed for tunnel construction: the “Wienerwald tunnel” and “Arlberg tunnel” 

projects ensured an increase of 148.8% compared to 2004 in Austria, but a 33.5% decline was 

sustained abroad. 

Preparatory work on construction sites was broadly stable with a proportion of 2.1% (equivalent 

to €48.2 million). In contrast, the volume of output recorded as “other activities” – waste 

disposal site operation, sealing work, insulation, trade in products and real estate utilisation – 

fell by 12.6% compared to 2004 to 10.1% (€228.3 million) 

ORDER BALANCE 

At the end of 2005, the order balance for the 

PORR Group stood at €1,465.3 million, 

2.5% short of the excellent figure of the 

previous year. Although domestic orders on 

hand increased by around 2.7% at year 

end to €923.9 million, the balance abroad 

fell by approximately 10.3% to €541.4 

million. The main reasons behind this 

development were greater service provision 

in Hungary linked to the M6 motorway 

project, the situation in Germany and 

follow-up projects that had not materialised 

at that point. By the end of 2005, a number 

of high-profile projects were due to be 

awarded (and have since been secured). An 

examination of orders on hand by country 

ORDERS ON HAND AT YEAR END 


Austria 

Hungary 


Germany 

Poland 

Switzerland 

Croatia 

Other countries* 

Group 

of which for 2006 (2005) 

of which for subsequent years 

2005 

923.9 

87.6 

149.8 

135.0 

92.0 

41.5 

25.8 

9.7 

1,465.3 

1,127.0 

338.3 

CHANGE 

+ 2.7% 

- 46.0% 

+ 16.5% 

+ 16.5% 

+ 0.2% 

- 11.7% 

- 19.4% 

- 63.3% 

- 2.5% 

- 0.2% 

- 9.7% 

2004 

899.6 

162.1 

128.6 

115.9 

91.8 

47.0 

32.0 

26.4 

1,503.4 

1,128.8 

374.6 

* 2005: Romania €3.8 million, Slovakia €3.1 million, Netherlands €1.0 million, Bosnia €0.9 million, 

at the end of 2005 reveals order balance 

Sri Lanka €0.7 million, France €0.1 million, Latvia €0.1 million 

increases only for the Czech Republic with 2004: Bosnia €25.2 million, Slovenia €1.2 million 

€149.8 million (16.5%), Germany with 

€135.0 million (16.5%) and Poland with 

€92.0 million (0.2%). Compared to the same time in 2004, the other foreign markets 

returned values that were considerably lower in some cases. (For more information, 

DEVELOPMENT OF ORDERS ON HAND 

AT YEAR END IN MILLION € 

please see “Current orders situation” in the forecast report.) 

The overall order balance of the PORR Group for 2005 was €2,219.8 million, 11.3% 

above the previous year’s value. In addition to various small and medium-sized orders, 

several large-scale orders were acquired; these will ensure basic capacity utilisation in 

nearly all of our markets for some time to come. 

1,600 

1,400 

1,200 

1,000 

800 

600 

400 

200 

0 

481.5 

881.2 

603.8 

899.6 

541.4 

923.9 

Domestic 

Foreign 

71

MAJOR ORDERS IN 2005 

AUSTRIA 

Construction of Klagenfurt stadium 

Extension and redevelopment of Salzburg stadium 

Extension and redevelopment of Innsbruck stadium 

Skyline Spittelau office building, Vienna 

Extension of A1 Westautobahn, Böheimkirchen–Kirchstetten 

Kabelwerk residential complex, Vienna 

Gebr. Weiss transport and logistics centre, Maria Lanzendorf 

VIP-GAC building, Vienna airport 

Second section of Ganzstein tunnel, Mürzzuschlag 

Gfäll tunnel by-pass, Pians 

Hard shoulder reconstruction and sound barrier for A23, Vienna 

POLAND 

Domna Skarpie residential building including office/business premises, Piaseczno 

Arkadia Wroclawska office building, Wroclaw 

Salzburg Center office building, Warsaw 

Ostroleka by-pass, Ostroleka 

CZECH REPUBLIC 

Smichov Gate office building, Prague 

BTP Chodov office building, Prague 

GERMANY 

WA 14 residential complex, Munich (Neuriem) 

CROATIA 

Zagreb Tower high-rise office block, Zagreb 

SLOVAKIA 

Miba Steeltec production hall and administration building, Vrable 

SWITZERLAND 

Renovation of Chienberg tunnel, Sissach


EARNINGS SITUATION 

For the year 2005, the PORR Group reports gross revenues of €1,828.2 million in the 

profit and loss account, which includes invoiced construction work on own construction 

sites, goods and services to joint ventures, profit transfers from joint ventures and 

other ancillary revenue. We therefore succeeded in raising gross revenues by 19.2% 

or €295.1 million compared to the previous year’s level of €1,533.1 million. The 

disparity in production output from the gross revenues stated in the profit and loss 

account results from changes in the consolidated entity as well as the differing 

treatment of joint ventures (the reporting of sales only shows output actually invoiced 

and profit transfers). 

The rise in expenditure is mainly due to an above-average increase in expenditure for 

materials (30.7% up on the previous year). This development resulted from the 

increased use of subcontractors, mainly abroad. 

DEVELOPMENT OF PERSONNEL COSTS 


550 

500 

512.3 

450 

400 

350 

300 

250 

200 

150 

443.4 

457.1 

By contrast, personnel expenditure was below par with a rise of 12.1% compared to the 

previous year, thereby counterbalancing the increased material costs. Total personnel 

expenditure also includes the additional outgoings for severance payments and pensions 

linked to adjustment of the actuarial calculation interest rate from 5.5% to 4.7%. 

100 

50 

0 

2003 2004 2005 

Compared to 2004, other operating expenses fell by €2.2 million to €139.6 million. This item 

basically comprises office running costs, accommodation and travel expenses, taxes and duties, 

legal, audit and consultancy costs, transfers to provisions, advertising expenditure, other third 

party services, general administrative costs and loss transfers from joint ventures. 

The EBIT for 2005 amounted to €49.3 million, an increase of 12.3% (€5.4 million) on 2004. 

This produced an EBIT margin of 2.7%, compared to 2.9% in 2004. Earnings from shareholdings 

rose by €3.0 million to €13.5 million, which includes revenue from the divestment of financial 

assets. Net interest income for the year under review moved little from the level of the previous 

year and stands at 1.7% of gross revenues. The measures introduced in 2005 aimed at improving 

the financial structure have improved the liquidity of 

the PORR Group; however, since they were introduced DEVELOPMENT OF KEY PROFITABILITY DATA IN % 

midway through the year, they have not yet made any 

discernible difference to net interest income. The 

14 

long-term positive effects are likely to be noted in 

12 

11.6 

fiscal year 2006. 

10 

8 

10.0 

12.8 

9.9 

6 

7.2 

4 

5.4 

2 

3.2 

2.9 

2.7 

0 

2003 2004 2005 

EBIT margin 

ROE 

ROCE 

73


GFÄLL TUNNEL, TYROL 

Length of tunnel: 454 metres 

Construction period: 55 days 

The flood damage of August 2005 almost completely 

destroyed the road into the Paznaun valley in north Tyrol. 

In order to by-pass this dangerous spot at the entrance to 

the valley, a joint venture involving Porr Tunnelbau GmbH 

and TEERAG-ASDAG AG was contracted to build a 

454-metre tunnel. Completed in less than three months, 

the tunnel was opened to traffic on 22 nd December – just 

in time for the start of the winter season. 

The EBT (earnings before tax) increased by €8.1 million (33.3%) to €32.4 million, with the 

ratio to gross revenues (EBT margin) rising to 1.8% (1.6% in 2004). Compared to the previous 

year, consolidated profits after profits due to minorities displayed an increase of almost 23% to 

€25.2 million; this produced earnings per share of €12.44. 

GROUP PROFIT AND LOSS ACCOUNT SUMMARY 

IN MILLION € 2005 CHANGE 2004 

Gross revenues 1,828.2 + 19.3% 1,533.1 

EBITA 49.3 + 12.1% 44.0 

EBIT 49.3 + 12.3% 43.9 

Earnings from shareholdings 13.5 + 28.6% 10.5 

Net interest income - 30.4 - 0.7% - 30.2 

EBT 32.4 + 33.3% 24.3 

Consolidated result after profits 

due to minorities 25.2 + 22.9% 20.5 

Earnings per share in € 12.44 + 22.1% 10.19 

DIVIDEND 

On the basis of the results for 2005, the 

Executive Board intends to propose payment 

of a dividend of €1.74 to bearers of ordinary 

and preference shares and capital share 

certificates at the 126 th annual shareholders’ 

meeting taking place on 29 th June 2006. 

The dividend for the previous year was also 

€1.74 per share. 

74


FINANCIAL POSITION 

INITIAL CONSOLIDATION OF THE WIBEBA GROUP 

On 1 st January 2005, the WIBEBA Group was fully integrated into the annual statements of the 

PORR Group for the first time. The effect on earnings of the initial consolidation amounted to 

€2.6 million and is shown under other operating income. The change in the consolidated entity 

resulted in a €76.8 million increase in the balance sheet total. The cash flow statement details 

the effects of the initial consolidation of the WIBEBA Group on the investment area. 

INITIAL CONSOLIDATION 

OF WIBEBA 

CHANGE IN THE BALANCE SHEET PRESENTATION 

Since fiscal year 2002, Allgemeine Baugesellschaft - A. Porr AG has applied the provisions of 

§ 245a of the Commercial Code and prepares the consolidated financial statements according to 

the International Financial Reporting Standards (IFRS). Accordingly, the consolidated balance 

sheet as of 31 st December 2005 is for the first time divided into long-term and short-term assets. 

LONG-TERM ASSETS 

As of 31 st December 2005, the long-term assets of the PORR Group had fallen by just €1.8 million 

to €720.3 million. The main reason for the decline was a cut in investment activity compared to 

the previous year, despite the initial consolidation of WIBEBA. Reductions in tangible fixed assets 

(from €347.9 million to €335.7 million) and in financial real estate (from €159.9 million 

to €148.3 million) were balanced out by an increase in shares in associated companies (from 

€59.3 million to €64.4 million) and a rise in accounts receivable (from €11.8 million to €21.3 

million). Of the total investments made in 2005 (€66.7 million), €42.9 million was allocated to 

fixed assets and €21.1 million to financial assets. The main proportion constituted replacement 

or new investment in the areas of technical equipment and machinery and business and office 

equipment items. 

LITTLE CHANGE 

IN LONG-TERM ASSETS 

SHORT-TERM ASSETS 

Compared to 2004, the short-term assets of the PORR Group increased by €79.6 million to 

€807.3 million. Although inventories decreased slightly compared to the previous year, rising 

output produced an increase in accounts receivable and other assets in 2005. On the key date, 

the PORR Group had accounts receivable and other assets of €648.5 million, up by €48.1 million. 

The improvement in liquidity is apparent in the figure for liquid assets (€101.6 million at the 

end of 2005, €32.8 million above the previous year’s figure). 

IMPROVEMENTS 

TO LIQUIDITY 

Compared to 2004, the balance sheet total of the PORR Group increased by €77.8 million to 

€1,527.6 million; this was mainly due to the initial consolidation of WIBEBA. 

75


EQUITY RATIO IMPROVES 

FROM 11.7% TO 12.7% 

CONSOLIDATED PROFITS 

UP 22.9% 

FINANCING STRUCTURE 

By the end of 2005, the equity capital excluding profits due to minorities had increased compared 

to 2004 by €23.8 million to €193.5 million, taking into account consolidated profits of 

€25.2 million, dividend payments of around €3.5 million and the transfer of revenue from the 

sale of own shares (€2.0 million) to retained earnings. The equity ratio thereby increased from 

11.7% in the previous year to 12.7% despite a rise in the balance sheet total of around 5.4%. 

Taking account of profits due to minority shareholders, the equity capital increased to €251.0 

million and the equity ratio increased by 1.1% to 16.4% compared to 2004. 

The bond issues of the reporting year totalling €172.0 million together with the change in the 

provisions for pensions and similar obligations by reducing the actuarial calculation interest rate 

from 5.5% to 4.7% led to an increase in long-term borrowed capital from €278.4 million to 

€479.5 million. These capital market transactions were used exclusively to convert short-term 

payables to banks into long-term liabilities. The €229.5 million reduction in short-term bank 

liabilities to €187.4 million was counterbalanced by a €65.6 million output-related increase in 

other liabilities (trade creditors) to €482.0 million, whereby short-term borrowed capital was 

reduced in total by €152.5 million to €797.1 million. 

On the basis of significantly improved consolidated profits of €25.2 million (up €4.7 million 

or 22.9% compared to 2004), cash earnings according to ÖVFA (the Austrian Association for 

Financial Analysis and Investment Advisory Services) amounted to €77.0 million. An increase 

of €24.6 million or 46.9% heralded a return to 2003 levels following a temporary downturn in 

2004. Supported by a slight increase in accounts receivable, cash flow from operating activities 

increased by €24.7 million in 2005 to €64.2 million. Cash flow from investing activities 

increased by €51.2 million, from minus €40.6 million in 2004 to €10.6. This change was 

mainly due to higher revenues from disposals of financial assets, lower investments in tangible 

fixed assets and the effects of the acquisition of WIBEBA. 

Massive repayment of bank liabilities – at €211.2 million, much higher than the volume of the 

bonds of €172.0 million – led to a change in the cash flow from financing activity to minus 

€41.9 million, compared to minus €9.3 million at the same time last year. 

76



TURNOVER DEVELOPMENT AND ORDER BALANCE 

Since the parent company PORR AG acts only as the provider of services and has transferred all 

operational activities to its subsidiaries, its gross revenues compared to 2004 fell by 20.2% 

(€20.8 million) to €82.0 million. These revenues resulted from the completion of outstanding 

long-term contracts granted to PORR AG. 

Since PORR AG will no longer be responsible for the operational performance of orders in future, 

the outstanding order balance of €3.8 million as of 31 st December 2005 (down by 71.2% or 

€9.4 million on 2004) will be worked off during the current fiscal year. 

BALANCE SHEET SUMMARY 


Fixed assets 313.1 + 13.8% 275.1 

Current assets (including accrued incomes) 208.9 - 33.1% 312.4 

Of which liquid funds 10.0 163.2% 3.8 

Assets 521.9 - 11.2% 587.5 

Equity capital (including untaxed reserves) 137.9 - 0.1% 138.1 

Borrowed capital 384.0 - 14.6% 449.4 

Liabilities 521.9 - 11.2% 587.5 

GROUP PROFIT AND LOSS ACCOUNT SUMMARY 


Turnover 82.0 - 20.2% 102.8 

Operating income - 3.8 - 160.3% 6.3 

Financial result 12.1 + 404.2% 2.4 

Results from ordinary activities 8.3 - 4.6% 8.7 

Annual net income 3.3 - 59.3% 8.1 

Concerning the information required on finance instruments under § 243 section 2 line 5 of the 

Commercial Code, we refer to the notes to the consolidated accounts of PORR AG. 

77


RISK MANAGEMENT 

DIVERSIFICATION 

MINIMISES RISK 

The PORR Group operates in a very wide range of sectors and countries. This broad geographical 

and sectoral diversification goes a long way towards balancing the risks that an international 

company can expect to face. 

Nevertheless, success depends on real-time monitoring and the minimisation of the risk factors 

that can affect all corporate areas. 

RISK MANAGEMENT 


CONSTRUCTION SITE 

OPERATIONAL CONTROLLING 

EARLY WARNING SYSTEM 

IMPLEMENTED 

IMPLEMENTATION OF A VALUE-BASED RISK SYSTEM 

In order to establish a comprehensive risk management system that is independent of year-end 

data (and therefore operates closer to real time), a new value-based system was installed across 

the company in 2005. The tool, tailored to the actual situation of the company, takes account of 

cost accounting and budgeting aspects as well as results-oriented and asset-based data from 

financial accounting. 

The central element of the risk management system is an early warning system based on key 

data. With clearly defined risk classes, the various companies can be fully allocated to specific 

risk categories; the relevant corporate areas are then responsible for a detailed analysis of the 

companies. The findings are summarised into a risk report which forms part of a “management 

letter” to the Executive Board. Timely countermeasures which are monitored for effectiveness 

complete the process. 

78


INTEGRATED DIAGRAM SHOWING ASSETS AND REVENUE FLOW DURING THE YEAR 

DataWareHouse 

Cost accounting 

Operating income 

Cost accounting (including accrual/deferral) 

= 

Manual data 

Assets overview (balance sheet) 

Asset accounts 

= 

Key data 

Traffic light function 

Financial accounting 

Profit and loss account 

Income accounts 

= 

In addition to this risk control, an internal inspection department regularly monitors the appropriateness, 

security, profitability and efficiency of business practices and organisational procedures. 

RISK SITUATION 

CONTINUOUSLY ASSESSED 

The “Operational Controlling” team supports central risk management in the specific business 

areas. Its task is to draw together and develop controlling expertise in the operational areas. The 

controlling tasks and activities that apply to the construction sites and business areas are 

defined in a set of generally applicable guidelines; performance of these is tracked within the 

framework of formalised advisory council reports and coordination meetings. These planning, 

implementation, accountability and supervision measures are backed up by a uniform reporting 

system that uses business-related data and notes to produce regular (monthly) evaluations of the 

situation. 

For descriptions of the various risk factors, please see the notes to the consolidated accounts 

under “Notes on Financial Instruments”. 

79


FORECAST REPORT 

ECONOMIC DEVELOPMENT 

The economic revival in Europe is expected to continue in 2006, with an upturn in exports providing 

the momentum. The positive earnings situation of the companies, brighter sales prospects 

and the relatively low (although climbing) interest rate level are likely to exert a positive influence 

on the investment climate. Industrial production in the eurozone should start to pick up from the 

beginning of 2006. However, private consumption demand will also need to increase to sustain a 

self-supporting economic upswing over the long term. Developments on raw materials markets 

will continue to represent a significant risk to economic expansion. 


TO REMAIN WEAK; CIVIL 

ENGINEERING TO BENEFIT FROM 

INFRASTRUCTURE SECTOR 

THE CONSTRUCTION MARKET 

Compared to the economy as a whole, construction investment in Europe will probably struggle to 

gain momentum. The increase in building construction is likely to fall short of GDP growth once 

again, largely as a result of inadequate investment in new residential construction. By contrast, 

strong growth rates are expected in civil engineering thanks to greater investment in infrastructure 

expansion and the trans-European transport network. 

The rapid construction sector growth in the new EU member states is likely to be maintained, 

with the expansion of the traffic network and environmental projects afforded a high priority. 

EU subsidies will spur investment, with double-digit growth rates forecast for the infrastructure 

sector in particular. 

In Austria, a number of indicators point to a continuation of the recovery that began in mid-2005. 

Although the price level remains low, the orders and business situation has improved. Investments 

in the infrastructure sector (for example, in technical aspects of the transport networks of neighbouring 

regions to the east) coupled with rising demand for industrial, commercial and residential 

construction should enable construction investment to grow by more than 2% per annum for the 

foreseeable future, above the average level for western Europe. In line with the general trend 

across Europe, civil engineering will provide the growth engine for the Austrian construction 

industry over the medium term. Financing models that do not directly impact on public budgets 

have created new opportunities for boosting the expansion of the road and railway infrastructure; 

a 3% rise in real-terms civil engineering output is expected in 2006. 

PRODUCTION OUTPUT UP 6% 

OUTPUT DEVELOPMENT IN FIRST QUARTER 2006 

In spite of some very difficult weather conditions during the first quarter of 2006, the PORR Group 

succeeded in raising production output to €312.0 million (around 6% up on the same period of 

the previous year). The building construction sectors raised their output by around 35% to 

€159.7 million and accounted for around 51% of total production output. The main contributing 

sectors to this dramatic expansion in Austria were residential construction (up 59%) and other 

building construction (industrial and commercial plant, up 58%). Significant volumes have been 

worked off abroad, especially in the Czech Republic (office and commercial buildings, with an 

increase rate of 111%) and in Poland (office and commercial buildings, with a rise of 36%). 

Domestic growth of 19% in the first quarter of 2006 contrasted with a decline of 12% abroad; 

for the year as a whole, however, foreign activity is expected to increase. 

80


OUTPUT FORECAST AND EARNINGS SITUATION IN 2006 

During 2006, the PORR Group will aim to repeat, and hopefully improve on, the production 

output achieved in 2005 (approximately €2,250 million). In accordance with the strategy of the 

PORR Group, foreign activities will grow by around €80 million to stand at roughly €783 million 

(a share of 35%). Given the current healthy orders situation, building construction is likely to 

expand moderately; civil engineering and road construction will stabilise at around the previous 

year’s levels. 

AIMING FOR ANOTHER 

EARNINGS INCREASE 

Although the price level will remain unsatisfactory, the positive orders situation and brightening 

economic prospects will facilitate a further slight improvement in the earnings situation. 

CURRENT ORDERS SITUATION 

As of 31 st March 2006, the order balance for the PORR Group stood at €1,928.7 million, a 

figure exceeding the comparable value of the previous year by 10.2%. Increases were achieved 

in all sub-areas: in Austria, for example, orders secured in the first quarter related to the northeast 

apron extension at Schwechat airport, the construction of an office/commercial building with 

underground parking in Vienna (Simmering), a corporate building for the Pfaffenau incinerating 

plant in Vienna (Simmering), the feeder line for the Brenner rail axis (northern section, Kundl/ 

Radfeld – Baumkirchen) and the Terminal Tower high-rise office block with underground parking 

at the main Linz railway station. Following works on the M6 motorway in Hungary, the PORR 

Group has won a follow-up contract to build the east section of the M0 motorway. In Poland, an 

order concerning the extension of the Stary Browar II shopping centre in Poznan has been 

obtained. 

BRANCH OFFICES OF PORR AG 

As of the balance sheet date, PORR AG managed branch offices in Vienna, Lower Austria, 

Burgenland, Upper Austria, Styria, Salzburg, Carinthia, Tyrol and Vorarlberg (with the company 

form “Branch Office”) as well as Maribor in Slovenia. 

SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE 

The issue of a further bond is planned for the second quarter of 2006 with a view to maintaining 

successful liquidity improvements and financing expansion measures. 

81


SEGMENT REPORTS 

CIVIL ENGINEERING / PTU GROUP SEGMENT 

The PORR Group concentrates all of its civil engineering activities as regards engineering construction, 

environmental technology and resource management as well as its expertise in operator 

and franchise models within the Civil Engineering/PTU Group (Porr Technobau und Umwelt) 

segment. 

The service portfolio for this segment includes engineering construction (underground railway 

construction, motorway/expressway construction, bridge construction, energy engineering and 

power plant construction), railway construction (railway bridges, subways and railways stations as 

well as substructure works and track construction work), specialist civil engineering (including 

bored piles, diaphragm walls, insulation walls, drilling and injection engineering and pile driving 

technology), tunnel construction, environmental technology and resource management (operation 

of quarries and gravel pits in Austria and Germany as well as concrete manufacturing plants in 

Austria, Hungary and Croatia). 

A detailed breakdown of the segment can be found in the notes to the consolidated accounts. 

DEVELOPMENT DURING THE FISCAL YEAR 

During 2005, the Civil Engineering/PTU Group segment achieved a 30% rise in production 

output to €880.9 million. Porr GmbH, which performed extremely well in its first year of business, 

was responsible for a significant share of this output expansion in Austria. On the Hungarian 

market, Porr Budapest Kft. positioned itself successfully, delivering comprehensive services in 

road, bridge and sound barrier construction in connection with the M6 project. Business activities 

in the countries of eastern and southeastern Europe were expanded steadily in 2005. In Bosnia 

HARD SHOULDER ON THE 

A23 CIRCULAR ROAD IN VIENNA 

WIENERWALD TUNNEL WEST 

FEDERAL ECONOMIC CHAMBER 

FOR LOWER AUSTRIA 

NEW ENNS BRIDGE, ENNS BY-PASS, 

UPPER AUSTRIA 

82


KEY FINANCIAL DATA IN MILLION € 2005 CHANGE 2004 

and Herzegovina, for example, most of the 

building work was completed on two track 

construction orders. The above-average 

EBIT for the civil engineering segment in 

the previous year was almost matched in 

the reporting period despite the challenging 

situation in some countries and above-average rises in materials costs; at €14.4 million, 

the decline was limited to 2.7%. Compared to 2004, investments in tangible 

fixed assets fell by 55.5% to €17.5 million. 

Production output 880.9 + 30.0% 677.8 

Of which foreign 339.8 + 46.7% 231.7 

EBIT 14.4 - 2.7% 14.8 

Investments 17.5 - 55.5% 39.3 

Segment assets 1,291.5 + 3.9% 1,243.0 

Segment liabilities 999.5 - 4.8% 1,050.1 

Orders on hand 663.8 - 8.6% 726.5 

Employees 3,562 + 3.9% 3,428 

DOMESTIC AND FOREIGN PRODUCTION 

OUTPUT IN MILLION € 

1,000 

The assets allocated to the segment increased by 3.9% to €1,291.5 million whilst 

segment liabilities decreased by 4.8% to €999.5 million. The rise in foreign activities 

for this segment produced a 3.9% increase in the staffing level to 3,562 employees. 

900 

800 

700 

600 

254.8 

231.7 

339.8 

ORDER BALANCE AND OUTLOOK 

By the end of 2005, the order balance for the Civil Engineering/PTU Group segment 

was down by 8.6% to €663.8 million. This reduction can be explained by the inclusion 

of the M6 project in Hungary, which was assigned to the previous year’s order balance 

shortly before the year end. The upward order trend in the first quarter of 2006, 

the further deliberate expansion of geographical presence and the optimistic industry 

expectations suggest that the satisfactory development of output and earnings will 

continue over the years ahead. 

500 

400 

300 

200 

100 

0 

541.1 

451.4 446.1 

2003 2004 2005 

Domestic 

Foreign 

TRACK CONSTRUCTION IN BOSNIA NASENBACHTAL BRIDGE, GERMANY U2/5 “STADION” STATION, VIENNA CONSTRUCTION OF ARTERIAL DRAINAGE 

CHANNEL F, LINZ 

83


BUILDING CONSTRUCTION / PPH GROUP SEGMENT 

In the Building Construction/PPH Group segment, the PORR Group has drawn together its building 

construction expertise in the fields of high-rise building construction, hotel/residential 

construction, office construction and industrial construction along with adaptation, revitalisation 

and renovation measures; the segment also includes project planning and project development. 

A detailed breakdown of this segment can be found in the notes to the consolidated accounts. 


During 2005, the activities of the Building Construction/PPH Group (Porr Projekt- und Hochbau) 

segment continued to centre on the consolidation of market presence in Austria, Germany, 

Poland, the Czech Republic, Slovakia, Hungary, Croatia and Romania as well as the operational 

development of the constituent states of the former Yugoslavia and an assessment of the Ukrainian 

market. This orientation, along with the allocation of the building construction capacity of 

WIBEBA, which was acquired early in 2005, led to a 26.8% rise in production output for the 

segment to €589.7 million. Since the WIBEBA building construction group only operates on 

the domestic market, the foreign share for this segment fell from 48.8% in the previous year to 

41.6% (€245.5 million) despite a satisfactory increase in foreign output. 

Increases in material costs – often substantial – were counterbalanced by personnel expenses 

that rose at a below-average rate. This resulted in an EBIT of €9.6 million, 37.1% up on 2004. 

Changes to assets and liabilities items allocated to this segment were reasonably balanced, with 

the assets allocated to this segment increasing by 40.3% to €664.4 million and segment 

liabilities rising by 48.4% to €609.0 million. Investments in this segment totalled €6.5 million. 

The allocation of WIBEBA building construction personnel and increased foreign activity have 

contributed to an overall 33.6% increase in the average staffing level to 1,867 employees. 

CHODOV BUSINESS TECHNOLOGY PARK 

CHODOV BUSINESS TECHNOLOGY PARK, 

CONSERVATORY FACING THE MOTORWAY 

SIEMENSSTRASSE BUSINESS SCIENCE 

PARK, VIENNA 

“BOILER HOUSE COURTYARD”, 

VIENNA HOFBURG 

84





EBIT 9.6 + 37.1% 7.0 

Investments 6.5 - 8.5% 7.1 

Segment assets 664.4 + 40.3% 473.6 

Segment liabilities 609.0 + 48.4% 410.3 

Orders on hand 452.8 + 9.2% 414.7 

Employees 1,867 + 33.6% 1,397 


The 9.2% increase in the order balance to €452.8 million at the end of 2005 points 

to a continuation of the steady, revenue-oriented growth of the PPH Group in 2006. 



The domestic market of Austria will continue to provide a stable basis and generate 

around half of production output. Given the upward trends and our wide range of 

experience in Poland, the Czech Republic and Croatia, we expect to maintain our 

successful activities in these newly developed markets. 

700 

600 

500 

400 

184.2 

226.9 

245.5 

300 

344.2 

200 

236.3 

238.1 

100 

0 

2003 2004 2005 

Domestic 

Foreign 

WEST FAÇADE OF EPSILON OFFICE, 

LOWER AUSTRIA 

TAUBENSTRASSE, BERLIN 

VIEW OF MONTE LAA FROM 

PORR HEADQUARTERS, VIENNA 

RAINER RESIDENTIAL ESTATE FACING ONTO 

DEFREGGERSTRASSE, UPPER AUSTRIA 

85


ROAD CONSTRUCTION / T-A GROUP SEGMENT 

The core skills of the PORR Group in road construction, canal building and environmental protection 

technology together with all sealing services are pooled within the Road Construction/T-A 

Group (TEERAG-ASDAG) segment. A market presence throughout Austria is backed up by a 

tight network of asphalt mixing facilities and a reliable supply of raw materials. Following the 

successful activities of PSVS a.s. in the Czech Republic, the Group’s foreign presence will be 

carefully developed through market entries in Poland, Hungary, Switzerland and Croatia. 

The road construction sector accounts for over half of the service portfolio of this segment. Given 

the growing demand for fast and secure traffic connections throughout Europe, the growth 

dynamic of this area is secure. The second pillar of the segment is environmental protection, 

which involves the construction of supply and waste disposal pipelines, sewage treatment plants 

and sound barriers. In both Austria and its neighbouring countries, the sealing services sector 

has become a mainstay of operational activity. The company IAT GmbH, which is part of the 

corporate group, is one of Austria’s leading providers in the field of plastic insulation for tunnel, 

waste disposal site and storage reservoir construction. 

A detailed breakdown of the segment can be found in the notes to the consolidated accounts. 


In 2005, the Road Construction/T-A Group segment succeeded in raising the production output 

of the previous year by 10.7% to €787.3 million, mainly as a result of the positive development 

of foreign activities. With a 60.9% rise in output to €119.2 million, the foreign share for this 

segment stood at 15.1% in 2005 (compared to 10.4% in the previous year). Since material 

and personnel costs rose only moderately in 2005, the Group succeeded in raising the EBIT by 

129.1% to €25.2 million. 

EXTENSION TO TRAMLINE AT SOLAR CITY, 

UPPER AUSTRIA 

INSTALLING FOILS AT H2 

BRIXLEGG TUNNEL, TYROL 

WELDING CONCRETE GUARD PLATES AT 

DÜSSELDORF PORT DRAINAGE CHANNEL 

RECONSTRUCTION OF CESKOMORAVSKÀ 

ROAD, PRAGUE 

86





EBIT 25.2 + 129.1% 11.0 

Investments 18.9 - 34.1% 28.7 

Segment assets 514.0 - 10.9% 577.0 

Segment liabilities 345.6 - 11.0% 388.5 

Orders on hand 349.5 - 3.5% 362.1 

Employees 4,812 + 5.0% 4,581 

Investments in tangible fixed assets fell by 34.1% to €18.9 million. Compared to 

the previous year, segment assets dropped by 10.9% to €514.0 million; segment 

liabilities fell by 11.0% to €345.6 million. These changes were the result of the 

organisational blurring of individual segment boundaries. Owing to the allocation of 

personnel from the municipal services group WIBEBA (acquired early in 2005) and 

increased market activity abroad, the average staffing level rose by 5% to 4,812 

employees. 


The Road Construction/T-A Group segment had an order balance of €349.5 million at 

the end of 2005, just 3.5% below the outstanding value of the previous year. The 

strategic aim of the segment is to maintain its high market share in Austria, expand its 

presence in Hungary and Poland and, in particular, gain a foothold on the markets of 

Slovenia, Croatia, Bosnia and Herzegovina and Serbia and Montenegro. However, 

bringing about further improvements to the healthy earnings situation will remain the 

highest priority. 



1,000 

900 

800 

700 

600 

500 

400 

300 

200 

100 

0 

119.2 

69.1 

74.1 

668.1 

623.7 637.2 

2003 2004 2005 

Domestic 

Foreign 

MAJOR RENOVATION OF A1, 

ST. GEORGEN-WANGAUER ACHE 

A1 JOINT VENTURE WOLFSGRABEN- 

BRENTENMAIS, LOWER AUSTRIA 

SÖDING WASTEWATER PURIFICATION 

PLANT, STYRIA 

WALDENSTEIN POWER PLANT, CARINTHIA 

87


CONSOLIDATED 

ACCOUNTS 

OF PORR AG 2005 

AND ANNUAL FINANCIAL STATEMENTS OF PORR AG 2005 

CONTENTS 

CONSOLIDATED ACCOUNTS FOR PORR AG 2005 

Group profit and loss account for 2005 90 

Group balance sheet as of 31.12.2005 91 

Development of Group equity capital 92 

Group cash flow 93 

Development of Group assets 94 

Segment reporting 96 

Notes on segment reporting 98 

Notes to the consolidated accounts 2005 100 

Auditors’ report 121 

Shareholdings of PORR AG 122 

Supervisory board report 129 

ANNUAL FINANCIAL STATEMENTS FOR PORR AG 2005 

Balance sheet as of 31.12.2005 130 

Profit and loss account for 2005 132 

Appropriation of earnings 134 

Auditors’ report 135 

89


GROUP PROFIT AND LOSS ACCOUNT 

FOR FISCAL YEAR 2005 

IN EUR THOUSAND NOTES 2005 2004 

1. Gross revenues (1) 1,828,220.2 1,533,122.6 

2. Other own work capitalised (2) 4,386.3 2,209.9 

3. Operating performance 1,832,606.5 1,535,332.5 

4. Other operating income (3) 78,174.9 47,896.9 

5. Cost of materials (4) - 1,161,786.1 - 889,101.0 

6. Personnel costs (5) - 512,318.3 - 457,063.2 

7. Depreciation of tangible assets (6) - 47,799.9 - 51,323.2 

8. Other operating expenses (7) - 139,568.2 - 141,742.6 

9. EBITA (result before interest, taxes and goodwill depreciation) 49,308.9 43,999.4 

10. Goodwill depreciation (8) — - 53.0 

11. EBIT (result before interest and taxes on earnings) 49,308.9 43,946.4 

12. Earnings from shareholdings (9) 13,493.6 10,482.7 

13. Net interest income (10) - 30,367.9 - 30,177.9 

14. EBT (result before taxes on earnings) 32,434.6 24,251.2 

15. Taxes on income (11) - 460.3 1,592.3 

16. Consolidated profits 31,974.3 25,843.5 

for shareholders of the parent company 25,167.1 20,524.4 

for shares of external shareholders (12) 6,807.2 5,319.1 

17. Earnings per share (in €) (13) 12.44 10.19 

90


GROUP BALANCE SHEET 

AS OF 31 ST DECEMBER 2005 

IN EUR THOUSAND NOTES 2005 2004 

ASSETS 

Long-term assets (14) 

I. Intangible assets 50,096.4 49,968.2 

II. Tangible assets 335,735.4 347,938.6 

III. Financial real estate 148,295.0 159,852.5 

IV. Shareholdings in associated companies 64,389.2 59,317.2 

V. Other financial assets 65,583.9 67,170.2 

VI. Receivables and other assets 21,282.7 11,837.4 

VII.Deferred taxes (16) 34,902.5 26,048.0 

720,285.1 722,132.1 

Short-term assets (15) 

I. Inventories 57,249.8 58,442.5 

II. Receivables and other assets 648,470.1 600,441.5 

III. Liquid funds 101,615.1 68,770.2 

807,335.0 727,654.2 

1,527,620.1 1,449,786.3 

LIABILITIES 

Equity capital (17, 18) 

I. Subscribed capital 14,778.4 14,778.4 

II. Reserves 175,109.8 151,044.2 

III. Unappropriated retained earnings 3,580.2 3,839.0 

IV. Shares of external shareholders 57,546.3 52,122.3 

251,014.7 221,783.9 

Long-term borrowed capital (19, 20, 21) 

I. Bonds 172,000.0 — 

II. Provisions for pensions and similar obligations 101,931.2 85,944.2 

III. Bank loans and overdrafts 95,507.8 76,875.2 

IV. Other payables 65,419.4 69,148.1 

V. Deferred taxes 44,656.8 46,393.2 

479,515.2 278,360.7 

Short-term borrowed capital (19, 21) 

I. Bank loans and overdrafts 187,358.5 416,948.9 

II. Other payables 482,026.5 416,426.1 

III. Other provisions 127,705.2 116,266.7 

797,090.2 949,641.7 

1,527,620.1 1,449,786.3 

91


DEVELOPMENT OF GROUP EQUITY CAPITAL 

SUBSCRIBED REVALUATION SHARES OF EXTERNAL 

IN EUR THOUSAND CAPITAL CAPITAL RESERVES RESERVE RETAINED EARNINGS SHAREHOLDERS TOTAL 

Balance at 1.1.2004 14,778.4 33,689.3 5,887.6 98,824.7 75,665.4 228,845.4 

Dividend payments — — — - 3,504.6 — - 3,504.6 

Consolidated profits — — — 20,524.4 5,319.1 25,843.5 

Currency differences — — — - 146.2 — - 146.2 

Changes to consolidated entity — — — — - 28,862.2 - 28,862.2 

Other changes — 0.2 - 392.2 — — - 392.0 

Balance at 31.12.2004 14,778.4 33,689.5 5,495.4 115,698.3 52,122.3 221,783.9 

SUBSCRIBED REVALUATION SHARES OF EXTERNAL 

IN EUR THOUSAND CAPITAL CAPITAL RESERVES RESERVE RETAINED EARNINGS SHAREHOLDERS TOTAL 

Balance at 1.1.2005 14,778.4 33,689.5 5,495.4 115,698.3 52,122.3 221,783.9 

Dividend payments — — — - 3,538.4 — - 3,538.4 

Consolidated profits — — — 25,167.1 6,807.2 31,974.3 

Changes to consolidated entity — — — - 608.4 - 1,383.2 - 1,991.6 

Sale of own shares — — — 2,015.6 — 2,015.6 

Currency differences — — — 507.0 — 507.0 

Other changes — — — 263.9 — 263.9 

Balance at 31.12.2005 14,778.4 33,689.5 5,495.4 139,505.1 57,546.3 251,014.7 

92


GROUP CASH FLOW 2005 

IN EUR THOUSAND 2005 2004 

Consolidated profits for shareholders of parent company 25,167.1 20,524.4 

Profits due to minorities 6,807.2 5,319.1 

Depreciation/appreciation of fixed assets 43,227.7 27,342.1 

Increase in long-term provisions 7,720.9 3,538.1 

Deferred tax income/expenditure - 5,933.3 - 4,321.0 

Cash earnings according to ÖVFA 76,989.6 52,402.7 

Decrease/increase in short-term provisions - 3,003.7 24,810.9 

Profit from fixed asset divestment - 21,167.1 - 16,280.5 

Decrease in inventories 4,960.1 9,377.6 

Increase in receivables - 22,224.3 - 84,184.1 

Increase in payables (excluding payables to bank) 28,639.1 53,408.5 

Cash flow from operating activities (1) 64,193.7 39,535.1 

Proceeds from sale of tangible assets 48,432.4 40,178.5 

Proceeds from sale of financial assets 24,905.1 2,062.5 

Investments in intangible assets - 2,658.0 - 4,466.1 

Investments in tangible fixed assets - 42,918.7 - 86,881.7 

Investments in financial assets - 21,111.7 - 9,493.2 

Proceeds from sale of consolidated companies — 19,781.3 

Proceeds/expenditure resulting from changes to the consolidated entity 4,314.2 - 232.2 

Other transactions not affecting payment - 363.8 - 1,516.5 

Cash flow from investing activities (2) 10,599.5 - 40,567.4 

Dividends of AG - 3,538.4 - 3,504.6 

Repayment of loans - 211,204.8 - 5,260.3 

Loan take-out 172,000.0 — 

Other transactions not affecting payment 794.9 - 538.5 

Cash flow from financing activities (3) - 41,948.3 - 9,303.4 

Total cash flow from operating activities (1) 64,193.7 39,535.1 

Total cash flow from investing activities (2) 10,599.5 - 40,567.4 

Total cash flow from financing activities (3) - 41,948.3 - 9,303.4 

Payment-relevant changes to securities and liquid funds (4) = (1)+(2)+(3) 32,844.9 - 10,335.7 

Securities and liquid funds as of 1.1. 68,770.2 83,067.4 

Deconsolidation — - 3,961.5 

Securities and liquid funds as of 31.12. 101,615.1 68,770.2 

93


DEVELOPMENT OF GROUP ASSETS 

BALANCE ON 

CHANGE TO 

IN EUR THOUSAND 1.1.2005 CONSOLIDATED ENTITY ADDITIONS DISPOSALS 

I. Intangible fixed assets 

1. Concessions, licenses and similar rights 50,367.8 2,673.1 2,446.1 892.7 

2. Start-up and business expansion of a plant 872.7 — 211.9 — 

3. Derived goodwill 20,604.2 — — — 

4. Goodwill 11,901.3 — — — 

83,746.0 2,673.1 2,658.0 892.7 

II. Tangible fixed assets 

1. Land, land rights and buildings, 

including buildings on land owned by others 451,788.0 9,527.6 8,265.6 33,670.2 

2. Technical equipment and machinery 337,193.7 9,878.3 11,609.3 24,997.0 

3. Other plants, factory and business equipment 76,898.8 8,110.3 10,328.1 9,044.5 

4. Low-value items 2,198.7 - 27.8 5,109.5 4,810.3 

5. Payments on account and assets in course of construction 16,182.2 — 7,606.3 5,186.3 

884,261.4 27,488.4 42,918.8 77,708.3 

III. 

Financial assets 

1. Shares in affiliated companies 10,286.7 43.8 941.1 3,242.3 

2. Loans to affiliated companies — 0.1 — 0.1 

3. Shares in associated companies 33,403.8 — 299.4 58.8 

4. Other shareholdings 23,124.9 44.5 2,878.1 201.5 

5. Loans to companies in which the company 

has a participating interest 2,390.1 — 47.6 123.0 

6. Securities (book-entry securities) held 

as long-term investments 29,688.7 1,854.2 16,771.5 21,708.0 

7. Other loans 5,956.9 — 174.0 271.4 

104,851.1 1,942.6 21,111.7 25,605.1 

1,072,858.5 32,104.1 66,688.5 104,206.1 

94


DEPRECIATION/ 

BALANCE ON CUMULATIVE BOOK VALUE ON BOOK VALUE ON APPRECIATION DURING 

BOOK TRANSFERS 31.12.2005 DEPRECIATION 31.12.2005 31.12.2004 FISCAL YEAR 

14.8 54,609.1 17,628.7 36,980.4 35,740.9 2,623.9 

— 1,084.6 — 1,084.6 872.7 — 

— 20,604.2 19,032.4 1,571.8 2,895.0 1,323.3 

— 11,901.3 1,441.7 10,459.6 10,459.6 — 

14.8 88,199.2 38,102.8 50,096.4 49,968.2 3,947.2 

1,166.9 437,077.9 73,790.7 363,287.2 379,473.8 8,803.8 

602.9 334,287.2 253,632.9 80,654.3 90,742.1 21,109.3 

105.7 86,398.4 63,061.6 23,336.8 21,563.4 8,968.1 

— 2,470.1 2,421.0 49.1 17.8 4,971.5 

- 1,890.3 16,711.9 8.9 16,703.0 15,994.0 — 

- 14.8 876,945.5 392,915.1 484,030.4 507,791.1 43,852.7 

- 1,027.8 7,001.5 2,721.9 4,279.6 6,512.2 0.3 

— — — — — — 

259.0 33,903.4 - 30,485.8 64,389.2 59,317.2 - 4,572.4 

768.8 26,614.8 90.8 26,524.0 23,040.6 — 

840.9 3,155.6 — 3,155.6 2,390.1 — 

— 26,606.4 0.3 26,606.1 29,270.4 — 

- 840.9 5,018.6 — 5,018.6 5,956.9 — 

— 102,300.3 - 27,672.8 129,973.1 126,487.4 - 4,572.1 

— 1,067,445.0 403,345.1 664,099.9 684,246.7 43,227.8 

95


SEGMENT REPORTING 

ROAD CONSTRUCTION / T-A GROUP 

CIVIL ENGINEERING / PTU GROUP 

IN EUR THOUSAND 2005 2004 2005 2004 

Production output (Group) 787,288.2 711,330.8 880,925.8 677,831.8 

Segmental income 830,893.4 745,669.6 852,418.4 658,149.8 

Cost of materials - 517,989.1 - 460,475.6 - 540,784.5 - 372,347.6 

Personnel costs - 224,328.3 - 212,780.3 - 196,511.8 - 174,796.1 

Depreciation - 16,584.7 - 18,498.2 - 23,659.7 - 23,425.2 

Other operating expenses - 46,745.8 - 42,913.1 - 77,038.7 - 72,772.1 

EBITA (result before interest, taxes and goodwill depreciation) 25,245.5 11,002.4 14,423.7 14,808.8 

Goodwill depreciation — — — — 

EBIT (result before interest and taxes on earnings) 25,245.5 11,002.4 14,423.7 14,808.8 

Earnings from shareholdings 

Net interest income 

EBT (result before taxes on earnings) 

Taxes on income 

Consolidated profits before profits due to minorities 

Profits due to minorities 

Consolidated profits 

Segment assets as of 31.12. 513,994.9 577,004.6 1,291,477.7 1,242,954.5 

Segment liabilities as of 31.12. 345,595.7 388,491.6 999,455.8 1,050,110.0 

Investments in tangible assets 18,881.6 28,675.2 17,504.3 39,310.4 

Employees as of 31.12. 4,812 4,581 3,562 3,428 

Group-internal expenditure and earnings, as well as intercompany profit and loss, are eliminated in the transfer to the data of the consolidated accounts; the transfer includes consolidation items. 

96


BUILDING CONSTRUCTION / PPH GROUP TOTAL FOR SEGMENTS RECONCILIATION GROUP 

2005 2004 2005 2004 2005 2004 2005 2004 

589,749.6 464,966.2 2,257,963.6 1,854,128.8 — — 2,257,963.6 1,854,128.8 

568,586.6 370,849.6 2,251,898.4 1,774,669.0 - 341,117.0 - 191,439.6 1,910,781.4 1,583,229.4 

- 434,119.1 - 269,340.1 - 1,492,892.7 - 1,102,163.3 331,106.6 213,062.3 - 1,161,786.1 - 889,101.0 

- 91,478.2 - 64,831.7 - 512,318.3 - 452,408.1 — - 4,655.1 - 512,318.3 - 457,063.2 

- 5,828.3 - 5,596.6 - 46,072.7 - 47,520.0 - 1,727.2 - 3,803.2 - 47,799.9 - 51,323.2 

- 27,542.4 - 24,041.3 - 151,326.9 - 139,726.5 11,758.7 - 2,016.1 - 139,568.2 - 141,742.6 

9,618.6 7,039.9 49,287.8 32,851.1 21.1 11,148.3 49,308.9 43,999.4 

— — — — — - 53.0 — - 53.0 

9,618.6 7,039.9 49,287.8 32,851.1 21.1 11,095.3 49,308.9 43,946.4 

13,493.6 10,482.7 

- 30,367.9 - 30,177.9 

32,434.6 24,251.2 

- 460.3 1,592.3 

31,974.3 25,843.5 

- 6,807.2 - 5,319.1 

25,167.1 20,524.4 

664,430.5 473,551.7 2,469,903.1 2,293,510.8 - 942,283.0 - 843,724.5 1,527,620.1 1,449,786.3 

609,042.9 410,252.9 1,954,094.4 1,848,854.5 - 677,489.0 - 620,852.1 1,276,605.4 1,228,002.4 

6,532.8 7,113.5 42,918.7 75,099.1 — 11,782.6 42,918.7 86,881.7 

1,867 1,397 10,241 9,406 — — 10,241 9,406 

97


NOTES ON SEGMENT REPORTING 

Main full/equity consolidated companies of the PORR Group (turnover > €1 million) 

ROAD CONSTRUCTION / T-A GROUP 

Allgemeine Straßenbau GmbH 

Asphalt-Unternehmung Carl Günther Gesellschaft m.b.H. 

Lieferasphalt Gesellschaft m.b.H. & Co, Viecht 

Lieferasphalt Gesellschaft m.b.H. & Co. OHG, Villach 

Gunimperm-Bauveg AG 

Asphaltmischwerk Betriebsgesellschaft m.b.H. & Co KG 

MSO Mischanlagen Süd-Ost Betriebsgesellschaft m.b.H. und Co KG Pinkafeld 

TEERAG-ASDAG Aktiengesellschaft 

Spolecne obalovny, s.r.o. 

Gesellschaft für Bauwesen GmbH 

ASF Frästechnik GmbH & Co KG 

Asphaltmischwerk Greinsfurth GmbH & Co 

Asphaltunternehmung Dipl.Ing. O. Smereker & Co. Gesellschaft m.b.H. 

Baugesellschaft m.b.H. Erhard Mörtl 

Bitu-Bau Gesellschaft m.b.H. 

Bosch Baugesellschaft m.b.H. 

Eisenschutzgesellschaft m.b.H. 

Panitzky Gesellschaft m.b.H. 

Lavanttaler Asphaltliefergesellschaft m.b.H. 

Prazské silnicí a vodohospodárské stavby, a.s. 

Technisches Büro Sepp Stehrer Baustoff-Großhandlung Gesellschaft m.b.H. 

TAL Betonchemie Handel GmbH 

Euphalt-Handelsgesellschaft m.b.H. 

Asphaltunternehmung Raimund Guckler Bauunternehmung Gesellschaft m.b.H. 

AGes-Bau Asphalt-Ges.m.b.H. 

Ing. Otto Richter & Co Straßenmarkierungen GmbH 

Tancsos und Binder Gesellschaft m.b.H. 

ASTRA - BAU Gesellschaft m.b.H. Nfg. OHG 

LISAG Linzer Splitt- und Asphaltwerk GmbH. & Co KG 

Vereinigte Asphaltmischwerke Gesellschaft m.b.H. & Co KG 

TEERAG-ASDAG POLSKA SPÓLKA Z OGRANICZONA ODPOWIEDZIALNOSCIA 

Werner Winkler Gesellschaft m.b.H. 

Schatzl & Jungmayr Garten- und Landschaftsbau GmbH 

IAT GmbH 

Wiener Betriebs- und Baugesellschaft m.b.H. & Co. Nfg. KG 

ASCHAUER Zimmerei GmbH 

Gamper Baugesellschaft m.b.H. & Co. KG 

Kraft & Wärme Rohr- und Anlagentechnik GmbH 

Pfeiffer & Schmidt Baugesellschaft m.b.H. 

Franz Böck’s Nachf. Ing. Eva & Karl Schindler Gesellschaft m.b.H. & Co.Nfg.KG 

Wibeba Holding GmbH 

98


CIVIL ENGINEERING / PTU GROUP 

Allgemeine Baugesellschaft-A. PORR AG 

Altlastensanierung und Abraumdeponie Langes Feld Gesellschaft m.b.H. 

Schotter- und Betonwerk Karl Schwarzl Betriebsgesellschaft m.b.H. 

Porr Tunnelbau GmbH 

Porr Technobau und Umwelt Aktiengesellschaft 

Porr Umwelttechnik GmbH 

PR - Rohrleitungs- und Anlagenbau Gesellschaft m.b.H. 

“DIKE” Liegenschaftsverwertung Gesellschaft m.b.H. 

Porr (Budapest) Épitési Kft. 

RBA - Recycling- und Betonanlagen Ges.m.b.H. & Co. Nfg. KG 

Vorspann-Technik GmbH & Co.KG 

Porr Technobau und Umwelt GmbH, Munich 

Vorspann-Technik GmbH 

Jandl Baugesellschaft m.b.H. 

Porr Aktiengesellschaft 

Betzold Rohrbau GmbH & Co. KG 

Thorn Abwassertechnik GmbH 

Radmer Kiesvertriebs GmbH & Co. KG Aschheim 

PORR Hrvatska d.o.o. za graditeljstvo 

ABW Abbruch, Boden- und Wasserreinigungs-Gesellschaft m.b.H. 

Kratochwill Schotter & Beton GmbH 

SFZ Freizeitbetriebs-GmbH & Co KG 

Schwarzl Beton d.o.o. 

Schotterwerk GRADENBERG Gesellschaft m.b.H. 

LD Recycling GmbH 

LTE Logistik- und Transport- GmbH 

PRONAT Steinbruch Preg GmbH 

Porr GmbH 

Salzburger Reststoffverwertung GmbH 

PORR SUISSE AG 

BUILDING CONSTRUCTION / PPH GROUP 

Porr Projekt und Hochbau Aktiengesellschaft 

UBM Realitätenentwicklung Aktiengesellschaft 

Porr (Česko) a.s. 

W 3 Errichtungs- und Betriebs-Aktiengesellschaft 

Porr (Polska) Spólka Akcyjna 

Stal-Service Spólka z ograniczona odpowiedzialnoscia 

Modzelewski & Rodek Sp. z o.o. 

Porr GmbH & Co. KG Berlin 

Emil Mayr Hoch- und Tiefbau GmbH 

Porr Hungaria Magasepitesi Kft. 

Porr & Swietelsky stavebni, v. o. s. 

Porr (Slovensko) a.s. 

Hans Böchheimer Hoch- und Tiefbau Gesellschaft m.b.H. 

Wibeba Hochbau GmbH & Co. Nfg. KG 

O.M. Meissl & Co. Bau GmbH 

Ing. RADL-BAU GmbH 

99


NOTES TO THE CONSOLIDATED ACCOUNTS 2005 

ALLGEMEINE BAUGESELLSCHAFT – 


GENERAL EXPLANATORY NOTES 

The consolidated accounts of Allgemeine Baugesellschaft – A. Porr Aktiengesellschaft (PORR 

Group) have been prepared pursuant to § 245a of the Commercial Code in accordance with the 

International Financial Reporting Standards (IFRS) issued by the International Accounting 

Standards Board (IASB) and accepted by the European Union and in accordance with the interpretations 

issued by the International Financial Reporting Interpretations Committee (IFRIC). 

Allgemeine Baugesellschaft – A. Porr Aktiengesellschaft (PORR Group) has previously conformed 

with the provisions of § 245a of the Commercial Code (old version); since fiscal year 2002, it 

has prepared its consolidated accounts solely on the basis of the International Financial Reporting 

Standards (IFRS). 

1. CONSOLIDATED ENTITY 

In addition to PORR AG, 77 (previous year: 68) domestic companies and 38 (previous year: 42) 

foreign companies are included in the consolidated accounts. During the year under review, 

14 (previous year: 6) domestic companies and one (previous year: 3) foreign company were consolidated 

for the first time. Additionally, 28 (previous year: 31) domestic and 5 (previous year: 7) 

foreign associated companies were valued under the equity method. During the year under 

review, 7 companies were amalgamated with Group companies and 3 were deconsolidated. The 

effects of the most significant initial consolidations in 2005 are dealt with separately in point 2. 

The list of shareholdings shows the affiliated and associated companies that are included. 

Companies are not included where the subsidiary is of minor relevance to the consolidated 

accounts; a total of 88 (previous year: 81) companies were not included in the consolidation. 

2. INITIAL CONSOLIDATION OF THE WIBEBA GROUP 

The WIBEBA Group was fully integrated in the consolidated accounts for the first time on 

1 st January 2005. This group comprises the following companies: 

100


Wibeba Holding GmbH 

WIPEG – Bauträger- und Projektentwicklungsgesellschaft m.b.H. 

Aschauer Zimmerei GmbH 

Ing. RADL-Bau GmbH 

Kraft & Wärme Rohr- und Anlagentechnik GmbH 

O.M. Meissl & Co Bau GmbH 

Pfeiffer & Schmidt Baugesellschaft m.b.H. 

Wibeba Hochbau GmbH & Co. Nfg. KG 

Wiener Betriebs- und Baugesellschaft m.b.H. & Co. Nfg. KG 

Franz Böck’s Nachf. Ing. Eva & Karl Schindler Gesellschaft m.b.H. & Co. Nfg. KG 

Gamper Baugesellschaft m.b.H. & Co. KG 

The passive debit difference due to the initial consolidation amounts to TEUR 2,553.0. This 

amount was immediately regarded as profit and is shown as other operating income. The change 

in the consolidated entity (without taking consolidation postings into account) produces a change 

in the balance sheet total of TEUR 76,753.0. The WIBEBA Group is predominantly reflected in 

the road construction segment. The cash flow statement of the PORR Group for 2005 records 

the effects of the initial consolidation of the WIBEBA Group as cash flow from investing activities. 

3. CONSOLIDATION PRINCIPLES 

The capital consolidation of subsidiaries included in the consolidated accounts is performed 

with the purchase method, under which acquisition costs are offset against the pro rata equity 

capital of the subsidiaries at the time of the purchase. Goodwill arising on initial consolidation 

is capitalised and subjected to an annual test for impairment. 

Untaxed reserves are allocated to the retained earnings in the consolidated balance sheet after 

deducting any deferred tax. Valuation takes place at equity in the case of significant shareholdings 

using the revaluation method. At-equity companies were valued on the date of initial inclusion 

in the consolidated accounts. The share of annual profit for the companies consolidated by this 

method is declared in the Group profit and loss account as earnings from shareholdings. 

All accounts receivable and payable between companies included in consolidation are eliminated 

during debt consolidation. Currency differences are posted to income as other operating expenses 

or income. 

101


Group-internal income and expenditure is offset within the framework of consolidation of 

income and expenditure. Intercompany profit and loss from Group-internal deliveries is eliminated 

(affecting income) in accordance with the principle of materiality. 

Deferred taxes from consolidation procedures affecting income are amortised. 

4. FORMAL PRESENTATION 

To improve the clarity of presentation, individual items have been combined within the balance 

sheet and profit and loss account; these are itemised and explained in the notes to the accounts. 

The profit and loss account is prepared with type-of-expenditure format. 

5. CURRENCY TRANSLATION 

Subsidiaries’ balance sheets and profit and loss accounts prepared in foreign currencies are 

translated according to the modified current rate method. Balance sheet items of companies 

included in the consolidated accounts are translated at the mean rate of exchange on the balance 

sheet date; profit and loss accounts are generally translated at the annual mean rate of exchange 

for the fiscal year (as an arithmetic mean of all end-of-month quotations). Depreciation and 

annual net profit/loss are also translated at mean rates of exchange on the balance sheet date. 

Differences in translation on key dates arising from balance sheets are offset against retained 

earnings; those arising from profit and loss accounts are stated under other operating income. 

Movements on the fixed asset movement schedule as well as depreciation are translated at the 

mean rates of exchange on the balance sheet date. 

6. ACCOUNTING AND VALUATION METHODS 

The annual financial statements of all domestic companies included in the consolidated 

accounts are prepared according to standard accounting and valuation methods. The accounts of 

foreign Group companies are adjusted accordingly; minor deviating valuations or disclosures are 

retained. 

Intangible fixed assets are capitalised at acquisition cost and written down on a straight-line 

basis over the probable useful life. 

Rates of depreciation: 

Building rights 1.7% to 5.9% 

Rental rights 2.0% to 50.0% 

Licences 1.0% to 50.0% 

Concessions 5.0% to 50.0% 

102


Tangible assets are valued at cost, including incidental costs and deducting reductions in the 

acquisition costs, or at manufacturing costs and the previously accumulated and regularly 

amortised straight-line depreciation during the year under review, the following rates of depreciation 

being applied: 

Developed land and buildings on non-owned land 1.0% to 50.0% 

Technical equipment and machinery 5.0% to 50.0% 

Other plants, factory and business equipment 2.0% to 50.0% 

The useful life for machines and mechanical plant or factory and business equipment is normally 

determined using the “Österreichische Baugeräteliste” produced by the Association of Austrian 

Industrial Building Contractors (VIBÖ). In the case of large machinery, the useful life can be 

extended on the basis of technical service life. 

Low-value items are largely written off in full during the year of acquisition. 

The option of revaluation in accordance with IAS 16.37 is used in the case of real estate used for 

operational purposes. Opinions from independent experts were used as the basis for determining 

fair value. The book value was adjusted for market or fair value with neutral effect on income 

by means of a revaluation reserve in the equity capital. The revaluation reserve was reduced by 

the applicable passive deferred tax liability. Revaluations in the case of fully consolidated subsidiaries 

were taken into account pro rata. 

Real estate held as a financial investment is accounted for at the attributable value in accordance 

with IAS 40. This real estate comprises largely: 

- Offices and commercial buildings 

- Residential housing 

- Land 

The basis for the valuation was largely derived from the market value opinions of independent 

experts; in the absence of such expert opinions, the values in use were determined on the 

respective balance sheet date. The value in use is the present value of the estimated future cash 

flows expected to arise from the use of the assets. 

REVALUATION AMOUNT BEFORE 

IN EUR THOUSAND BOOK VALUE FAIR VALUE DEDUCTION OF DEFERRED TAXES 

Land IAS 16 21,813.6 39,641.5 17,827.9 

Buildings IAS 16 61,178.7 61,178.7 — 

Land IAS 40 42,294.6 93,897.1 51,602.5 

Buildings IAS 40 47,735.9 54,397.9 6,662.0 

Total 173,022.8 249,115.2 76,092.4 

In the case of leasing agreements, where economic ownership is assigned to the leased object 

of a PORR Group company (finance leasing), capitalisation is performed at the attributable fair 

value or the present value of the lease instalments, whichever is the lower. 

103


The financial assets are basically valued at cost or, if a lower value is attributable, at that value. 

Shares in associated companies are valued at equity in accordance with IAS 28, provided they 

are not shares of minor significance. The same valuation methods as those for fully consolidated 

companies are generally used. 

Non-consolidated subsidiaries and other shareholdings, unless valued at equity, are valued at 

cost or fair value, whichever is the lower. 

Raw materials and supplies were valued at cost price or on the basis of the VIBÖ price list for 

2002. 

For manufacturing contracts, profit is realised by the percentage of completion method. The 

recalculated amounts realised are stated as sales revenue. 

If work is done on manufacturing contracts which exceeds the amount of the payments on 

account, this is stated in the item for future receivables from manufacturing contracts. If the 

amount of the payments on account is greater than the service provided, the amount is stated 

in the liabilities from percentage of completion. 

Impending losses are accounted for on the date they become apparent. 

The service actually performed by the balance sheet date provides the measure of the level of 

completion. 

In the case of manufacturing contracts executed in joint ventures, the realisation of profit is 

performed taking account of the percentage of completion method in accordance with the service 

actually provided as of the balance sheet date. Impending losses from the further course of 

construction are accounted for by means of corresponding decreases in value. In addition to 

capital contributions, receipts and expenditure and transfer pricing, the accounts receivable 

and payable with respect to joint ventures also include pro rata profit on contracts. 

Accounts receivable and other assets are basically accounted for at nominal value. Where risks 

existed regarding recovery, value adjustments have been formed. Accounts receivable in foreign 

currency are entered at the rate applicable on the balance sheet date. 

104


Deferred tax items are formed in the case of deviations between the valuations of assets and 

liabilities under IFRS and the tax valuations at the level of the probable future tax debt or relief. 

In addition, a deferred tax asset for future assets resulting from tax loss carry-forwards is recognised 

if there is sufficient certainty of realisation. Deferred tax assets and liabilities arising from 

valuation differences are set off if the option of legal offsetting is available. Differences arising 

from goodwill that cannot be deducted for tax purposes constitute exceptions to this comprehensive 

tax deferment. 

The calculation of the deferred tax amount is based on the rate of income tax valid in the country 

concerned; for Austrian companies the tax rate of 25% (which came into force in 2005) is 

applied. 

The provisions for severance payments, anniversary bonuses and pensions were determined by 

the projected unit credit method in accordance with IAS 19. In the valuation of these provisions, 

an interest rate for accounting purposes of 4.7% (previous year: 5.5%) was applied with performance-related 

increments of 2% p.a. In the determination of provisions for severance payments 

and anniversary bonuses, deductions were made for fluctuation based on statistical data. 

The other provisions take into account all discernible risks and contingent liabilities. They are 

entered on the balance sheet date at the level required by commercial assessment in order to be 

able to meet the Group’s future payment obligations. The amount stated is always that which 

appears the most probable on prudent examination of the facts. 

Liabilities are stated at the nominal value or the higher repayment amount. 

In the case of finance leasing agreements, the amount stated for liabilities is at the level of the 

present value of the lease instalments. 

To a certain degree, estimates and assumptions are inevitably made in the consolidated accounts 

which affect the assets and liabilities, the statement of other liabilities on the balance sheet 

date and the statement of income and expenditure during the reporting period. The amounts that 

actually result in future may deviate from these estimates. 

105


EXPLANATORY NOTES ON THE PROFIT AND LOSS ACCOUNT 

1. GROSS REVENUES 

The gross revenues include the invoiced construction work of own construction sites, goods 

and services to joint ventures, profit pooling from joint ventures and other ancillary revenue. 

Application of the percentage of completion method results in a change in the gross revenues 

of TEUR 9,157.5 (previous year: TEUR 6,867.5). 

To illustrate the overall performance of contracted work according to business management 

criteria in the Group, in particular while taking into account the pro rata services in joint ventures, 

the output of the individual business areas and regions is summarised as follows: 


Business areas 

Road Construction / T-A Group 787,288.2 711,330.8 

Civil Engineering / PTU Group 880,925.8 677,831.8 

Building Construction / PPH Group 589,749.6 464,966.2 

Total 2,257,963.6 1,854,128.8 

Regions 

Domestic 1,553,424.6 1,321,372.7 

Hungary 172,133.2 21,934.2 

Czech Republic 165,111.4 152,492.0 

Germany 151,537.9 232,387.1 

Poland 103,195.6 52,314.0 

Switzerland 42,243.7 47,465.0 

Croatia 27,514.6 14,657.6 

Bosnia and Herzegovina 25,490.3 - 

Other foreign countries 17,312.3 11,466.2 

Foreign 704,539.0 532,716.1 

Total 2,257,963.6 1,854,128.8 

2. OTHER OWN WORK CAPITALISED 

Other own work capitalised during the year under review totals TEUR 4,386.3 (previous year: 

TEUR 2,209.9). 

106


3. OTHER OPERATING INCOME 


Income from the sale of tangible assets 19,101.7 17,629.1 

Income from the reversal of provisions 20,302.4 115.0 

Other income 38,770.8 30,152.8 

Total 78,174.9 47,896.9 

Profits from the disposal of financial assets are stated in the earnings from shareholdings. 

4. COST OF MATERIALS 


Expenditure on raw materials and supplies and for purchased goods - 389,456.7 - 346,483.9 

Expenditure on purchased goods and services - 772,329.4 - 542,617.1 

Total - 1,161,786.1 - 889,101.0 

5. PERSONNEL COSTS 


Wages and salaries - 396,476.5 - 355,971.9 

Social welfare expenses - 100,012.1 - 88,274.2 

Expenditure on severance payments and pensions - 15,829.7 - 12,817.1 

Total - 512,318.3 - 457,063.2 

Expenditure on severance payments and pensions includes the prior service costs and actuarial 

gains/losses. The interest portions are stated as net interest income. 

6. DEPRECIATION 

Depreciation of TEUR 3,947.2 (previous year: TEUR 4,583.2) was applied to intangible assets 

and of TEUR 43,852.7 (previous year: TEUR 46,740.0) to tangible assets. 

7. OTHER OPERATING EXPENSES 

Other operating expenses essentially comprise office running costs, accommodation and travel 

expenses, taxes and duties, legal, audit and consultancy costs, transfers to provisions, advertising 

expenditure, other third party services, general administrative costs and loss transfers from 

joint ventures. 

107


8. GOODWILL DEPRECIATION 

Since 1 st January 2004, goodwill according to IFRS 3 has been subject to a regular impairment 

test rather than regular depreciation. 

9. EARNINGS FROM SHAREHOLDINGS 


Result from shareholdings 2,451.6 3,184.1 

(of which from affiliated companies) (- 134.6) (1,389.5) 

Result from at-equity valuation of associated companies 8,335.3 6,945.9 

Income from shareholdings/depreciation thereon 2,706.7 352.7 

Total 13,493.6 10,482.7 

The income from at-equity valuation of associated companies includes the pro rata annual results 

of companies. 

10. NET INTEREST INCOME 


Interest and similar income 8,521.2 9,592.0 

(of which from affiliated companies) (1,981.8) (1,507.1) 

Other interest and similar expenditure - 38,889.1 - 39,769.9 

(of which from affiliated companies) (- 2,424.3) (- 626.1) 

(of which for interest portions from allocation to provisions for severance payments and pensions) (- 5,244.2) (- 4,912.2) 

Total - 30,367.9 - 30,177.9 

11. TAXES ON INCOME AND EARNINGS 

Taxes on earnings are the taxes on income and earnings paid or owed in the individual countries 

and the deferred tax items. The calculation is based on the anticipated rates of taxation in the 

individual countries at the time of realisation. These are based in principle on the valid or 

adopted legal regulations as of the balance sheet date. 


Actual tax 6,393.6 4,204.1 

Deferred tax - 5,933.3 - 5,796.4 

Tax expenditure (+) / income (-) 460.3 - 1,592.3 

108


The tax expenditure resulting on application of the tax rate used by the PORR Group can be 

transferred as follows at the actual tax expenditure: 


Result before income tax 32,434.6 24,251.2 

Theoretical tax expenditure (+) / income (-) 8,108.6 7,485.5 

Differences in rates of taxation - 2,664.6 - 1,574.5 

Effects of changes in tax rate from 34% to 25% — - 2,655.9 

Tax effect of the non-deductible expenditure and tax-exempt income - 3,847.6 - 2,856.1 

Taxation effects of the after-tax reporting of the results of associated companies - 1,479.5 - 92.5 

Effects of changes and utilisation of changes in loss carry-forwards 753.0 - 2,047.3 

Other - 409.6 148.5 

Taxes on income and earnings 460.3 - 1,592.3 

12. PROFITS DUE TO MINORITIES 

The profit accruing to shareholders outside the Group amounts to TEUR 6,807.2 (previous year: 

TEUR 5,319.1) in the year under review. 

13. EARNINGS PER SHARE 

The earnings per share are calculated by dividing the Group profit by the weighted average 

number of shares in issue. The capital share certificates are included when calculating the 

weighted average number of shares. 

Own shares held by the Group were deducted when calculating the number of shares. 


Consolidated profits 25,167.1 20,524.4 

Weighted average number of shares in issue 2,023,831 2,014,112 

Earnings per share in € 12.44 10.19 

109


NOTES ON THE BALANCE SHEET 

14. FIXED ASSETS 

For information on the development of the fixed assets, please refer to the Group fixed asset 

movement schedule. 

Tangible assets and intangible fixed assets 

The following book values are included in the tangible assets as of the balance sheet date owing 

to existing financial leasing agreements: 


Real estate leasing 38,129.0 40,431.6 

Equipment leasing 954.4 1,246.9 

Total 39,083.4 41,678.5 

In contrast, liabilities of TEUR 39,549.5 resulting from the present value of the lease obligations 

(previous year: TEUR 42,699.6) are reported. 

The durations of the financial leasing agreements for real estate are between five and 23 years; 

those of the equipment leasing agreements are between two and four years. 

Financial assets 

The loans include loans of TEUR 3,155.6 to companies in which the company has a participating 

interest (previous year: TEUR 2,390.1), of which loans with a remaining term of up to one year 

amount to TEUR 3,155.6 (previous year: TEUR 0). 

15. CURRENT ASSETS 

The inventories comprise the following: 


Land intended for sale 8,520.7 12,322.5 

Finished and unfinished products and merchandise 1,223.4 1,489.9 

Raw materials and supplies 41,776.8 41,582.8 

Payments on account 5,728.9 3,047.3 

Total 57,249.8 58,442.5 

Manufacturing contracts 

The manufacturing contracts valued by the percentage of completion method as of the balance 

sheet date but not yet finally settled, are stated as follows: 


Costs incurred plus results of projects not yet billed 762,250.1 669,826.2 

Less payments on account - 610,636.7 - 539,801.2 

Total 151,613.4 130,025.0 

110


The future payables from manufacturing contracts arising from application of the percentage of 

completion method amount to TEUR 52,881.0 (previous year: TEUR 43,399.2). 

In the case of buildings which are unfinished, appropriate portions of the administrative costs are 

stated where a contract takes more than 12 months to complete; from 2004 onwards no interest 

on borrowed capital is applied. 


Administrative costs 16,242.5 19,028.1 

Of which for the fiscal year 6,612.3 5,212.9 

Composition and terms to maturity of accounts receivable and other assets: 

REMAINING TERM 


IN EUR THOUSAND 31.12.2005 > 1 YEAR 31.12.2004 > 1 YEAR 

Trade debtors, including receivables from percentage of completion 404,138.0 11,301.7 341,121.1 2,181.0 

Receivables from joint ventures 67,108.8 — 68,042.5 3.4 

Receivables from affilated companies 58,783.7 1,350.8 53,398.6 150.8 

Receivables from companies in which the company has a participating interest 59,959.3 — 93,209.2 581.5 

Other assets 79,763.0 8,630.2 56,507.5 8,920.7 

Total 669,752.8 21,282.7 612,278.9 11,837.4 

The item other assets relates mainly to receivables and assets unrelated to transactions in goods 

and services. This item also contains prepaid expenses amounting to TEUR 4,032.3 (previous 

year: TEUR 3,314.9). 

Liquid funds 

The liquid funds include cash at banks amounting to TEUR 96,073.7 (previous year: 

TEUR 68,215.9) as well as cash in hand of TEUR 5,541.4 (previous year: TEUR 554.3). 

111


16. DEFERRED TAXES 

Temporary differences between the valuations in the IFRS consolidated accounts and the respective 

valuation for tax purposes have the following effects on the tax deferments stated on the 

balance sheet: 

Deferred taxes from tax loss carry-forwards have been capitalised to the extent that they can 

probably be offset against future tax gains. 

2005 2004 

CORPORATE TAX RATE 25% CORPORATE TAX RATE 25% 

IN EUR THOUSAND ASSETS LIABILITIES ASSETS LIABILITIES 

Tangible assets, other valuation differences — 27,093.3 — 27,150.3 

Percentage of completion — 14,466.9 — 11,712.2 

Untaxed reserves — 7,710.1 — 9,803.2 

Social overhead capital — - 4,613.5 — - 2,272.5 

Tax loss carry-forwards 34,902.5 — 26,048.0 — 

Deferred taxes 34,902.5 44,656.8 26,048.0 46,393.2 

Net deferred taxes 9,754.3 20,345.2 

17. EQUITY CAPITAL 

SHARE CAPITAL NUMBER OF SHARES € 

Ordinary bearer shares 1,341,750 9,750,877.53 

7% bearer preference shares (without voting rights) 642,000 4,665,595.95 

Total share capital 1,983,750 14,416,473.48 

The shares are no par value shares which are fully paid in. The amount of share capital for each 

bearer share is approximately €7.27. 

PARTICIPATORY RIGHTS IN ACC. WITH § 174 STOCK CORPORATION ACT NUMBER OF SHARES € 

Capital share certificates 49,800 361,910.71 

The participatory rights are no par value capital share certificates. They grant a share in the profit 

(minimum percentage as with preference shares), offer protection from dilution and are made 

out to bearer. On liquidation of the company, primarily the holders of capital share certificates 

receive any remaining shares in the profit from the remaining liquidation proceeds and the pro 

rata amount of the capital apportioned to capital share certificates. However, these certificates 

do not confer any shareholder rights such as voting rights, subscription rights or rights of appeal. 

112


SHARE IN SHARE CAPITAL 

OWN SHARES NUMBER OF SHARES VALUE IN € % 

As of 31.12.2004 19,438 141,261.46 0.98 

As of 31.12.2005 — — — 

Acquisition took place in 1991 in order to prevent a serious, imminent loss. During the year 

under review, own shares were disposed of through a share purchase programme; this produced 

capital gains of TEUR 578.0. 

18. RESERVES 

IN EUR THOUSAND 31.12.2005 31.12.2004 

I. Capital reserves 33,689.5 33,689.5 

II. Retained earnings 141,420.3 117,354.7 

Total 175,109.8 151,044.2 

The capital reserves result largely from the capital increases, adjustments and statute barred 

dividend claims arising from previous years. 

Retained earnings comprise foreign exchange translation differences and statutory and free 

retained earnings, the profit for the period as well as profits carried forward from previous periods 

of PORR AG and of consolidated subsidiaries provided they have not been eliminated through 

capital consolidation. 

Details concerning the equity capital of the PORR Group are shown in the development of equity 

capital. 

The shares of the equity capital not belonging to PORR AG or to a company within the Group are 

reported in the equity capital as shares of minority shareholders. 

19. PROVISIONS 

BALANCE CHANGE TO LIQUIDATION/ BALANCE 

IN EUR THOUSAND 1.1.2005 CONSOLIDATED ENTITY TRANSFER APPROPRIATION 31.12.2005 

Severance payments 38,872.1 4,906.8 13,326.8 - 8,238.1 48,867.6 

Pensions 47,072.0 3,409.7 5,284.1 - 2,702.2 53,063.6 

Taxes 2,676.3 122.7 2,379.7 - 2,262.2 2,916.5 

Others 

Buildings 50,150.8 9,718.6 37,443.5 - 32,789.6 64,523.3 

Employees 48,129.4 2,964.1 34,590.1 - 33,122.0 52,561.6 

Various 15,310.3 1,717.7 2,911.1 - 12,235.3 7,703.8 

Total 202,210.9 22,839.6 95,935.3 - 91,349.4 229,636.4 

113


BALANCE CHANGE TO LIQUIDATION/ BALANCE 

IN EUR THOUSAND 1.1.2004 CONSOLIDATED ENTITY TRANSFER APPROPRIATION 31.12.2004 

Severance payments 37,926.7 - 947.2 4,411.4 - 2,518.8 38,872.1 

Pensions 44,482.3 - 847.1 3,699.0 - 262.2 47,072.0 

Taxes 2,064.6 - 2,105.9 3,569.1 - 851.5 2,676.3 

Others 

Buildings 30,433.2 - 5,957.5 49,813.2 - 24,138.1 50,150.8 

Employees 41,614.9 - 1,818.6 36,783.7 - 28,450.6 48,129.4 

Various 23,628.2 - 5,428.5 5,085.2 - 7,974.6 15,310.3 

Total 180,149.9 - 17,104.8 103,361.6 - 64,195.8 202,210.9 

Provisions for severance payments were formed for employees (blue collar and salaried) with 

claims to severance payments under a collective agreement. The Construction Workers’ Leave 

and Severance Pay Act 1987 applies to the majority of blue collar workers; for this reason, no 

provisions for severance payments need to be provided for these employees. 

In the PORR Group, only a small number of management employees have pension commitments 

from the employer. Such pension commitments are not normally fund-linked performance-related 

commitments. The pension plans are based on years of service. 

The provisions for buildings contain provisions for impending losses from contract backlogs, 

foreign risks, damage to buildings and guarantees. 

The provisions for employees consist in particular of holidays not taken, bonuses, anniversary 

bonuses, disability compensation payments and employee time credits stemming from the 

annual working hours regulations. 

The provisions for severance payments developed as follows: 


Present value of severance obligations (DBO) as of 1.1. 38,872.1 37,926.0 

Change to consolidated entity 4,906.8 — 

Prior service cost (CSC) 2,408.3 2,083.7 

Interest paid (IC) 2,159.0 2,133.6 

Severance payments - 4,204.8 - 6,871.9 

Actuarial gains/losses 4,726.2 3,600.7 

Present value of severance obligations (DBO) as of 31.12. 48,867.6 38,872.1 

114


The provisions for pensions developed as follows: 


Present value of pension obligations (DBO) as of 1.1. 47,072.0 44,482.3 

Change to consolidated entity 3,409.7 — 

Prior service cost (CSC) 646.4 546.6 

Interest paid (IC) 2,631.3 2,584.2 

Pension payments - 4,626.6 - 2,836.5 

Actuarial gains/losses 3,930.8 2,295.4 

Present value of pension obligations (DBO) as of 31.12. 53,063.6 47,072.0 

20. BONDS 

As of the value date 29 th April 2005, Porr Financial Services AG, Altdorf, Switzerland (a fully 

consolidated, 100% subsidiary of Allgemeine Baugesellschaft – A. Porr AG) issued ABS bonds as 

follows: 

Nominal amount €72,000,000.00 

Tenor 2005–2012 

Denomination €50,000.00 

Nominal interest rate 3.9675% p.a. 

Coupon 

30 th April/31 st October semi-annually 

Redemption 30 th April 2012 at 100% 

The bonds were issued on the Austrian capital market for subscription by institutional investors. 

Debt claims against customers with a first-class credit standing serve as security. 

As of the value date 29 th June 2005, Allgemeine Baugesellschaft – A. Porr AG issued bonds 

under the following conditions: 

Nominal amount €100,000,000.00 

Tenor 2005–2010 

Denomination €500.00 

Nominal interest rate 4.5% p.a. 

Coupon 

29 th June annually 

Redemption 29 th June 2010 at 100% 

ISIN 

AT0000492707 

The bonds were issued for subscription on the Austrian capital market. 

115


21. LIABILITIES 


OF WHICH 

> 1 YEAR SECURED BY 

IN EUR THOUSAND 31.12.2005 < 1 YEAR < 5 YEARS > 5 YEARS COLLATERAL 

Mortgage obligations 3,105.1 1,334.2 58.5 1,712.4 3,105.1 

Bank loans and overdrafts 279,761.2 186,024.3 53,287.0 40,449.9 98,534.4 

Trade creditors 266,172.2 255,465.0 10,057.5 649.7 — 

Payables to joint ventures 53,268.6 53,268.6 — — — 

Payables to affiliated companies 2,165.2 1,851.6 119.0 194.6 — 

Payables to companies in which the company has a participating interest 8,579.2 8,517.6 61.6 — — 

Other liabilities 217,260.7 162,923.7 16,973.4 37,363.6 — 

(leasing) (39,549.5) (3,340.7) (5,997.5) (30,211.3) — 

(from taxes) (57,246.2) (57,246.2) — — — 

(in the framework of social welfare) (11,522.3) (11,522.3) — — — 

Total 830,312.2 669,385.0 80,557.0 80,370.2 101,639.5 


OF WHICH 

> 1 YEAR SECURED BY 

IN EUR THOUSAND 31.12.2004 < 1 YEAR < 5 YEARS > 5 YEARS COLLATERAL 

Mortgage obligations 3,414.5 132.7 396.2 2,885.6 3,414.5 

Bank loans and overdrafts 490,409.6 416,816.2 37,694.4 35,899.0 133,966.0 

Trade creditors 221,356.4 212,045.6 7,778.6 1,532.2 — 

Payables to joint ventures 52,449.7 52,449.7 — — — 

Payables to affiliated companies 6,894.5 5,350.2 1,544.3 — — 

Payables to companies in which the company has a participating interest 10,733.1 10,733.1 — — — 

Other liabilities 194,140.5 135,847.5 23,544.6 34,748.4 — 

(leasing) (42,699.6) (1,698.1) (6,146.1) (34,855.4) — 

(from taxes) (46,477.9) (46,477.9) — — — 

(in the framework of social welfare) (9,928.1) (9,928.1) — — — 

Total 979,398.3 833,375.0 70,958.1 75,065.2 137,380.5 

22. CONTINGENT LIABILITIES 


Contingencies 22,612.6 18,875.2 

(of which for affiliated companies) (10,140.2) (1,425.5) 

Total 22,612.6 18,875.2 

The contingent liabilities relate largely to loan guarantees and surety bonds. 

116


23. NOTES ON THE CASH FLOW STATEMENT 

The cash flow is shown by the indirect method with separate cash flows resulting from operating, 

investing and financing activities. The financial fund comprises exclusively cash on hand/at bank 

and short-term investments. Effects of changes in the consolidated entity were eliminated and 

largely reported in the cash flow from investing activities. 

The financial fund is composed as follows: 


Cash on hand and at bank 101,615.1 68,770.2 

24. NOTES ON THE FINANCIAL INSTRUMENTS 

The original financial instruments on the asset side essentially comprise financial assets, trade 

debtors and liquid funds; on the liabilities side they comprise financial liabilities and trade 

creditors. 

The PORR Group does not hold any derivative financial instruments. 

Interest rate risk 

Since the securities held are mainly investment fund units, it is not possible to provide details of 

the average rate of interest on the securities with fixed interest rates. The rates of interest for 

bonds, bank loans and overdrafts and for lease liabilities are as follows: 

Bonds: 3.9675 – 4.5% 

Bank loans and overdrafts: 1.7 – 6.5% 

Leasing: 2.6 – 5.9% 

Credit risk 

The risk in the case of accounts receivable from customers may be classified as low because of 

the broad dispersion and continual checks for creditworthiness. 

The risk of default in the case of other original financial instruments stated on the assets side of 

the balance sheet is also regarded as low because all contracting parties are financial institutions 

with prime credit standing. The level of financial assets represents the maximum risk of default. 

Currency risk 

Loan finance and assessment are mainly denominated in euros within the PORR Group. 

The currency risk to the PORR Group is only of minor significance. 

117


OTHER INFORMATION 

25. AVERAGE NUMBER OF EMPLOYEES 

2005 2004 

Salaried 

Domestic 2,396 2,188 

Abroad 998 921 

Industrial employees 

Domestic 5,639 5,064 

Abroad 1,208 1,233 

Total employees 10,241 9,406 

26. BUSINESS CONNECTIONS TO RELATED PARTIES 

Related persons and companies as defined by IAS 24 are B&C Holding GmbH, Wiener Städtische 

Versicherungs AG, the companies of the Ortner Group and companies associated with these 

shareholders. 

Insurance transactions were entered into with Wiener Städtische Versicherungs AG at conditions 

meeting the arm’s length test; with companies of the Ortner Group there are relationships meeting 

the arm’s length test. 

27. REGISTERED OFFICE OF THE COMPANY 

Allgemeine Baugesellschaft – A. Porr Aktiengesellschaft 

Absberggasse 47, 1103 Vienna, Austria 

Company register FN 34853 f, Commercial Court of Vienna 

118


28. ORGANS OF THE COMPANY 

Members of the Executive Board: 

Director General Horst Pöchhacker, Vienna, Chairman 

Deputy Director General Wolfgang Hesoun, Brunn/Gebirge, Deputy Chairman 

Director Helmut Mayer, Vienna 

Director Peter Weber, Deutsch-Wagram 

Members of the Supervisory Board: 

President Klaus Ortner, Vienna, Chairman 

Director Karl Schmutzer, Winzendorf, Deputy Chairman 

Georg Riedl, Vienna, Deputy Chairman 

Günther W. Havranek, Perchtoldsdorf 

Executive Director Martin Krajcsir, Vienna 

Director Walter Lederer, Vienna 

Heinz Mückstein, Bad Vöslau 

Karl Samstag, Mödling 

Members delegated by works council: 

Peter Grandits, Vienna 

Walter Huber, Wiesen 

Johann Karner, Mönchhof 

Walter Jenny, Vienna (from 1.9.2005) 

Albert Stranzl, Vienna (to 31.8.2005) 

The emoluments of the Executive Board totalled TEUR 1,679.0 (previous year: TEUR 1,771.4); 

the emoluments of former members of the Executive Board including their dependants amounted 

to TEUR 677.3 (previous year: TEUR 729.4). 

The members of the Supervisory Board were paid emoluments (including attendance fees and 

profit-based supervisory board bonuses) of TEUR 122.8 (previous year: TEUR 56.4). 

119


28. APPROPRIATION OF RETAINED EARNINGS 

The fiscal year of PORR AG closes with unappropriated retained earnings of 

€3,580,215.65. 

The Executive Board proposes the following appropriation of earnings: 

Distribution of a dividend of €1.74 per share to shares with dividend rights 

SHARES € 

Shares of share capital 1,983,750 3,451,725.00 


Carried forward to new account 41,838.65 

Vienna, 22 nd May 2006 

The Executive Board 

Horst Pöchhacker (*) Wolfgang Hesoun (*) 

Helmut Mayer (*) Peter Weber (*) 

(*) manu propria 

120


AUDITORS’ REPORT 

TO THE CONSOLIDATED ACCOUNTS DATED 31 ST DECEMBER 2005 FOR 

ALLGEMEINE BAUGESELLSCHAFT – A. PORR AKTIENGESELLSCHAFT 

We have audited the consolidated accounts prepared by Allgemeine Baugesellschaft – 

A. Porr Aktiengesellschaft, Vienna, for the fiscal year from 1 st January 2005 to 31 st December 

2005. The legal representatives of the parent company are responsible for the preparation 

and content of these consolidated accounts in accordance with the International 

Financial Reporting Standards (IFRS), as applicable in the EU, and of the group management 

report drafted in accordance with the Austrian commercial law statutes. Our task is 

to express an opinion on the consolidated accounts on the basis of our audit and to state 

whether the group management report is consistent with the consolidated accounts. 

Our audit was conducted in accordance with legal and professional auditing principles 

generally accepted in Austria and in compliance with the International Standards on 

Auditing (ISA) issued by the International Federation of Accountants (IFAC). These standards 

require that we plan and perform our audit in such a way as to provide a reasonable 

basis for an opinion as to whether the consolidated accounts are free of material errors 

and whether the group management report is consistent with the consolidated accounts. 

When determining the auditing procedure, information on the business activities and the 

economic and legal environment of the group was taken into account along with the likelihood 

of potential errors. The audit involved a mainly sample-based examination of the 

supporting documentation for the figures and information in the consolidated accounts; 

it also included an assessment of the accounting principles applied and the material 

estimates carried out by the legal representatives, together with an evaluation of the overall 

presentation of the consolidated accounts. We believe that our audit provides a reasonable 

basis for our opinion. 

Our audit did not give rise to any objections. On the basis of the facts obtained during the 

course of the audit, the consolidated accounts correspond in our opinion to the statutory 

provisions and to the supplementary provisions in the statutes and reflect a true representation 

of the financial position of the group as of 31 st December 2005 as well as the earnings 

situation and cash flows of the group for the fiscal year from 1 st January 2005 to 

31 st December 2005 in accordance with the International Financial Reporting Standards 

(IFRS) as applicable in the EU. The group management report accords with the consolidated 

accounts. 


Deloitte Wirtschaftsprüfungs GmbH 

Nikolaus Schaffer (*) Michael Heller (*) 

Auditor and Tax Consultant 


BDO Auxilia Treuhand GmbH 

Auditors and Tax Consultants 

Karl Bruckner (*) Johann Seidl (*) 




121


SHAREHOLDINGS 

HOLDING OF HOLDING OF TYPE OF 

COUNTRY PORR AG PORR GROUP CONSOLI- NOMINAL 

COMPANY CODE IN % IN % DATION CURRENCY CAPITAL 

AFFILIATED COMPANIES 

Affiliated companies limited by shares 

“DIKE” Liegenschaftsverwertung Gesellschaft m.b.H. AUT 0.00% 100.00% A EUR 36,336.42 

“EAVG Enzersdorfer Abfallverwertungsgesellschaft m.b.H.” AUT 37.50% 100.00% N EUR — 

“HELIOS” Immobilien Verwaltungs- und Verwertungsgesellschaft m.b.H. AUT 50.00% 100.00% A EUR 36,336.42 

“PET” Deponieerrichtungs- und Betriebsgesellschaft m.b.H. AUT 50.00% 76.24% N EUR — 

“pulmetall” Bodenmarkierungen Gesellschaft m.b.H.* AUT 0.00% 52.49% A EUR 36,336.42 

“Zentrum am Stadtpark” Errichtungs- und Betriebs-Aktiengesellschaft AUT 66.67% 66.67% A EUR 87,207.40 

AGes-Bau Asphalt-Ges.m.b.H.* AUT 0.00% 52.49% A EUR 36,336.42 

Allgemeine Straßenbau GmbH* AUT 0.00% 52.49% A EUR 3,633,641.71 

Alois Felser Gesellschaft m.b.H.* AUT 0.00% 52.49% A EUR 36,400.00 

ASCHAUER Zimmerei GmbH* AUT 0.00% 100.00% A EUR 75,000.00 

ASDAG Baugesellschaft m.b.H.* AUT 0.00% 52.49% A EUR 726,728.34 

Asphalt-Unternehmung Carl Günther Gesellschaft m.b.H.* AUT 0.00% 52.49% A EUR 218,018.50 

Asphaltunternehmung Dipl.Ing. O. Smereker & Co. Gesellschaft m.b.H.* AUT 0.00% 52.49% A EUR 36,336.42 

Asphaltunternehmung Raimund Guckler Bauunternehmung Gesellschaft m.b.H.* AUT 0.00% 52.49% A EUR 36,400.00 

ASW-Asphalt- und Schotterwerk Neustift GmbH AUT 0.00% 76.24% N EUR — 

Bahnhofcenter Entwicklungs-, Errichtungs- und Betriebs GmbH* AUT 0.00% 100.00% N EUR — 

Baugesellschaft m.b.H. Erhard Mörtl* AUT 0.00% 52.49% A EUR 50,870.98 

Bitu - Bau Gesellschaft m.b.H.* AUT 0.00% 52.49% A EUR 36,336.42 

Bosch Baugesellschaft m.b.H.* AUT 0.00% 52.49% A EUR 51,000.00 

Carnuntum Bauvorbereitung Gesellschaft m.b.H. AUT 100.00% 100.00% N EUR — 

Edos Beteiligungsverwaltungs GmbH AUT 0.00% 100.00% A EUR 35,000.00 

Eisenschutzgesellschaft m.b.H.* AUT 0.00% 52.49% A EUR 43,603.70 

Ekona Beteiligungsverwaltungs GmbH AUT 100.00% 100.00% N EUR — 

Enola Beteiligungsverwaltungs GmbH AUT 0.00% 100.00% N EUR — 

Esikas Beteiligungsverwaltungs GmbH AUT 100.00% 100.00% N EUR — 

Euphalt-Handelsgesellschaft m.b.H.* AUT 0.00% 52.49% A EUR 36,336.42 

Franz Greiner Gesellschaft m.b.H.* AUT 0.00% 52.49% A EUR 36,336.42 

Gebor Beteiligungsverwaltungs GmbH AUT 0.00% 100.00% N EUR — 

Gepal Beteiligungsverwaltungs GmbH AUT 0.00% 100.00% N EUR — 

Gerhard Wagner Bodenmarkierungsgesellschaft m.b.H.* AUT 0.00% 52.49% A EUR 37,000.00 

Gesellschaft für Bauwesen GmbH* AUT 0.00% 52.49% A EUR 36,336.42 

Gesellschaft zur Schaffung von Wohnungseigentum Gesellschaft m.b.H.* AUT 99.00% 100.00% A EUR 290,691.34 

Gevas Beteiligungsverwaltungs GmbH AUT 0.00% 100.00% N EUR — 

Gilamo Beteiligungsverwaltungs GmbH AUT 0.00% 100.00% N EUR — 

Giral Beteiligungsverwaltungs GmbH AUT 0.00% 100.00% N EUR — 

Gismana Beteiligungsverwaltungs GmbH AUT 0.00% 100.00% N EUR — 

Glamas Beteiligungsverwaltungs GmbH AUT 0.00% 100.00% N EUR — 

Golera Beteiligungsverwaltungs GmbH AUT 0.00% 100.00% N EUR — 

Grazer Transportbeton Gesellschaft m.b.H. AUT 0.00% 74.72% A EUR 37,000.00 

Hans Böchheimer Hoch- und Tiefbau Gesellschaft m.b.H.* AUT 0.00% 52.49% A EUR 363,364.17 

hospitals Projektentwicklungsges.m.b.H. AUT 0.00% 55.00% N EUR — 

IATGmbH* AUT 0.00% 52.49% A EUR 290,691.34 

IBC Business Center Entwicklungs- und Errichtungs-GmbH AUT 75.00% 100.00% A EUR 364,000.00 

Ing. Otto Richter & Co Straßenmarkierungen GmbH* AUT 0.00% 52.49% A EUR 37,000.00 

Ing. RADL-BAU GmbH* AUT 0.00% 100.00% A EUR 40,000.00 

122





Jandl Baugesellschaft m.b.H.* AUT 0.00% 100.00% A EUR 36,336.42 

Joiser Hoch- und Tiefbau GmbH AUT 100.00% 100.00% A EUR 36,336.42 

Juvavum Liegenschaftsverwertung GmbH AUT 0.00% 100.00% N EUR — 

Kraft & Wärme Rohr- und Anlagentechnik GmbH AUT 0.00% 100.00% A EUR 40,000.00 

Kratochwill Schotter & Beton GmbH* AUT 0.00% 99.99% A EUR 1,199,101.76 

KSD Kommunale Sicherheitsdienste GmbH AUT 0.00% 66.66% N EUR — 

Lavanttaler Asphaltliefergesellschaft m.b.H. AUT 0.00% 38.84% A EUR 36,336.42 

LD Recycling GmbH* AUT 0.00% 100.00% A EUR 875,000.00 

Mobile ParkingGmbH* AUT 0.00% 100.00% N EUR — 

m-parking Errichtungs-, Betriebs- und Service GmbH* AUT 0.00% 100.00% N EUR — 

O.M. Meissl &Co. Bau GmbH AUT 0.00% 100.00% A EUR 85,000.00 

Panitzky Gesellschaft m.b.H.* AUT 0.00% 52.49% A EUR 36,336.42 

Pfeiffer & Schmidt Baugesellschaft m.b.H. AUT 0.00% 100.00% A EUR 75,000.00 

Porr (Bulgarien) Holding GmbH AUT 0.00% 51.00% N EUR — 

Porr alpha Baugesellschaft mbH AUT 0.00% 100.00% A EUR 35,000.00 

Porr Beteiligungsverwaltungs GmbH* AUT 100.00% 100.00% A EUR 35,000.00 

Porr Financial Services GmbH AUT 0.00% 100.00% A EUR 500,000.00 

Porr GmbH AUT 0.00% 100.00% A EUR 1,000,000.00 

Porr Infrastruktur GmbH* AUT 0.00% 100.00% A EUR 218,018.50 

Porr International Aktiengesellschaft* AUT 100.00% 100.00% A EUR 3,997,005.88 

Porr Projekt und Hochbau Aktiengesellschaft* AUT 100.00% 100.00% A EUR 9,700,000.00 

Porr Solutions Immobilien- und Infrastrukturprojekte GmbH AUT 52.00% 100.00% A EUR 535,000.00 

Porr Technics & Services GmbH AUT 0.00% 90.00% N EUR — 

Porr Technobau und Umwelt Aktiengesellschaft* AUT 100.00% 100.00% A EUR 10,000,000.00 

Porr Tunnelbau GmbH* AUT 0.00% 100.00% A EUR 1,200,000.00 

Porr Umwelttechnik GmbH* AUT 0.00% 100.00% A EUR 1,000,000.00 

PR - Rohrleitungs- und Anlagenbau Gesellschaft m.b.H.* AUT 0.00% 100.00% A EUR 218,018.50 

PRONAT Liegenschaftsgesellschaft mbH AUT 0.00% 68.77% N EUR — 

PRONAT Steinbruch Preg GmbH AUT 0.00% 68.77% A EUR 370,631.45 

Rizzi Plaza Errichtungs- und Verwertungs GmbH AUT 0.00% 100.00% N EUR — 

Sabelo Beteiligungsverwaltungs GmbH AUT 100.00% 100.00% N EUR — 

Sakela Beteiligungsverwaltungs GmbH AUT 0.00% 100.00% N EUR — 

Schatzl & Jungmayr Garten- und Landschaftsbau GmbH* AUT 0.00% 52.49% A EUR 35,000.00 

Schotter- und Betonwerk Karl Schwarzl Betriebsgesellschaft m.b.H.* AUT 100.00% 100.00% A EUR 3,633,641.71 

Schotterwerk GRADENBERG Gesellschaft m.b.H.* AUT 0.00% 100.00% A EUR 36,336.42 

Sekis Beteiligungsverwaltungs GmbH AUT 0.00% 100.00% N EUR — 

Senuin Beteiligungsverwaltungs GmbH AUT 0.00% 100.00% N EUR — 

SFZ Freizeitbetriebs-GmbH AUT 0.00% 100.00% N EUR — 

SFZ Immobilien GmbH AUT 0.00% 100.00% N EUR — 

Sofex Beteiligungsverwaltungs GmbH AUT 0.00% 60.00% N EUR — 

Soleta Beteiligungsverwaltungs GmbH AUT 0.00% 100.00% N EUR — 

Somax Beteiligungsverwaltungs GmbH AUT 0.00% 100.00% N EUR — 

Soreg Beteiligungsverwaltungs GmbH AUT 0.00% 60.00% N EUR — 

Sovelis Beteiligungsverwaltungs GmbH AUT 0.00% 100.00% N EUR — 

Tancsos und Binder Gesellschaft m.b.H.* AUT 0.00% 52.49% A EUR 37,000.00 

Technisches Büro Sepp Stehrer Baustoff-Großhandlung Gesellschaft m.b.H.* AUT 0.00% 52.49% A EUR 72,672.84 

TEERAG-ASDAG Aktiengesellschaft AUT 52.49% 52.49% A EUR 12,478,560.00 

Unterstützungskasse von Porr-Betrieben Gesellschaft m.b.H. AUT 95.00% 99.50% N EUR — 

Vorspann-Technik GmbH AUT 97.00% 100.00% N EUR — 

Werner Winkler Gesellschaft m.b.H. AUT 0.00% 52.49% A EUR 36,336.42 

Wibeba Holding GmbH* AUT 100.00% 100.00% A EUR 7,300,000.00 

WIPEG - Bauträger- und Projektentwicklungsgesellschaft m.b.H. AUT 0.00% 100.00% A EUR 1,000,000.00 

WLB Projekt Laaer Berg Liegenschaftsverwertungs- und Beteiligungs-GmbH AUT 0.00% 75.00% A EUR 36,336.42 

Wohlfahrtseinrichtung für die Arbeiter und Angestellten der 

Teerag-Asdag Aktiengesellschaft, Gesellschaft m.b.H. AUT 0.00% 52.49% N EUR — 

123





Wohlfahrtseinrichtung von Porr-Betrieben Gesellschaft m.b.H. AUT 60.00% 92.25% N EUR — 

Wohnpark Laaer Berg Verwertungs- und Beteiligungs-GmbH AUT 75.00% 75.00% A EUR 218,018.50 

“PORR Bulgaria” EOOD BGR 0.00% 51.00% N BGN — 

“Porr Infra Bulgaria” EOOD BGR 0.00% 100.00% N BGN — 

PORR d.o.o. Sarajevo Privredúo drustvo za gradenje i usluge BIH 0.00% 100.00% N BAM — 

PORR Visokogradnja i niskogradnja d.o.o., Laktasi BIH 0.00% 100.00% N BAM — 

Gunimperm-Bauveg SA CHE 0.00% 52.49% A SFR 150,000.00 

PORR Financial Services AG CHE 100.00% 100.00% A SFR 7,800,000.00 

PORR SUISSEAG CHE 0.00% 100.00% A SFR 3,000,000.00 

PORR SUISSE S.A. Romandie en liquidation CHE 0.00% 100.00% A SFR 250,000.00 

BAUVEG, hydroizolacní systémy, s.r.o. CZE 0.00% 52.49% N CZK — 

CONSULTING-PLAN-Prague spol. s r.o. CZE 100.00% 100.00% N CZK — 

NORTHEAST TRADING AND DEVELOPMENT, s.r.o. CZE 100.00% 100.00% N CZK — 

OBALOVNA PRíBRAM, s.r.o. CZE 0.00% 39.37% A CZK 100,000.00 

Porr (Česko) a.s. CZE 0.00% 100.00% A CZK 30,000,000.00 

Prazské silnicí a vodohospodárské stavby, a.s. CZE 0.00% 52.49% A CZK 430,000,000.00 

“WR” Bau-GmbH DEU 0.00% 100.00% A EUR 25,564.59 

Allbau GmbH DEU 0.00% 100.00% A EUR 2,050,500.00 

Betzold Rohrbau Verwaltungs-GmbH DEU 0.00% 100.00% N EUR — 

City Tower Vienna Grundstücksentwicklungs- und Beteiligungs-GmbH DEU 0.00% 100.00% N EUR — 

Emil Mayr Hoch- und Tiefbau GmbH DEU 0.00% 93.94% A EUR 250,000.00 

FAB Beteiligungsgesellschaft mbH DEU 0.00% 93.94% N EUR — 

GeMoBau Gesellschaft für modernes Bauen mbH DEU 0.00% 100.00% N EUR — 

HABE - Leitungsbau Gesellschaft mit beschränkter Haftung DEU 0.00% 100.00% N EUR — 

Mast Bau GmbH DEU 0.00% 93.94% A EUR 512,000.00 

Mast Bau GmbH in Liquidation DEU 0.00% 93.94% A EUR 357,904.32 

Mast Bau GmbH, Hamburg DEU 0.00% 93.94% A EUR 1,022,550.00 

Porr (Berlin) GmbH DEU 0.00% 100.00% A EUR 511,291.88 

Porr Aktiengesellschaft DEU 0.00% 93.94% A EUR 20,249,714.94 

Porr Hochbau GmbH DEU 0.00% 100.00% A EUR 204,516.75 

Porr International GmbH DEU 100.00% 100.00% A EUR 1,022,583.76 

Porr Solutions Immobilien- und Infrastrukturprojekte GmbH DEU 0.00% 100.00% A EUR 25,564.59 

Porr Technobau und Umwelt GmbH, Munich DEU 0.00% 100.00% A EUR 525,000.00 

Porr Verwaltung GmbH DEU 0.00% 93.94% N EUR — 

Projektierungsteam München GmbH DEU 0.00% 90.00% A EUR 153,387.56 

Radmer Bau GmbH in Liquidation DEU 0.00% 93.94% N EUR — 

Radmer Hochbau GmbH DEU 0.00% 100.00% A EUR 26,000.00 

Radmer Kiesvertrieb Verwaltungs GmbH Aschheim DEU 0.00% 93.94% N EUR — 

Radmer Kiesvertrieb Verwaltungs GmbH Großmehring DEU 0.00% 93.94% N EUR — 

Siebke Bau GmbH in Liquidation DEU 0.00% 93.94% N EUR — 

TGB TechnoGrundbau GmbH, Munich DEU 0.00% 93.94% N EUR — 

Thorn Abwassertechnik GmbH DEU 0.00% 100.00% A EUR 511,291.88 

TRB Tief-, Rohrleitungs- und Brunnenbau Verwaltungs GmbH DEU 0.00% 69.74% N EUR — 

Vorspann-Technik GmbH DEU 0.00% 100.00% A EUR 51,129.19 

Werner Winkler GmbH Spezial unternehmen für Abdichtungen im Tiefbau, Munich DEU 0.00% 39.42% N EUR — 

Impertunel S.L. ESP 0.00% 47.27% N EUR — 

BAUVEG-WINKLER drustvo s ogranicenom odgovornoscu za projektiranje, izgradnju i nadzor HRV 0.00% 52.49% N HRK — 

PORR Hrvatska d.o.o. za graditeljstvo HRV 0.00% 100.00% A HRK 4,000,000.00 

Porr Solutions drustvo s ogranicenom odgovornoscu za usluge i graditeljstvo HRV 0.00% 100.00% N HRK — 

SCHWARZL BETON d.o.o. za proizvodnju i trgovinu gradevnim materijalom HRV 0.00% 100.00% A HRK 5,900,000.00 

Földgép Duna Építö Kft. HUN 0.00% 100.00% A HUF 3,000,000.00 

Porr (Budapest) Épitési Kft. HUN 0.00% 100.00% A HUF 66,000,000.00 

Porr (Hungária) Magasépítési Kft. HUN 0.00% 100.00% A HUF 100,000.00 

Teerag-Asdag Építöipari és Kereskedelmi Korlátolt Felelösségü Társaság HUN 0.00% 52.49% N HUF — 

UAB “Porr” LTU 0.00% 100.00% N LTL — 

124





“Porr Solutions” Spólka z ograniczona odpowiedzialnoscia POL 0.00% 100.00% N PLN — 

Stal-Service Spólka z ograniczona odpowiedzialnoscia POL 0.00% 80.00% A PLN 500,000.00 

DSC Spólka z ograniczona odpowiedzialnoscia POL 0.00% 100.00% N PLN — 

Porr (Polska) Spólka Akcyjna POL 0.00% 100.00% A PLN 7,000,000.00 

Porr Technobud Polska Spólka z organiczona odpowiedzialnoscia POL 0.00% 100.00% N PLN — 

TEERAG-ASDAG POLSKA SPÓLKA Z OGRANICZONA ODPOWIEDZIALNOSCIA POL 0.00% 52.49% A PLN 500,000.00 

RADMER BAU PORTUGAL - CONSTRUCOES, LDA PRT 0.00% 93.00% N EUR — 

Porr Construct S.R.L. ROM 0.00% 100.00% N ROL — 

Porr Solutions S.R.L. ROM 0.00% 100.00% N ROL — 

Porr Iran Construction Company Ltd. STL 95.00% 95.00% N IRR — 

PORR (Slovensko) a.s. SVK 0.00% 100.00% A SKK 3,000,000.00 

PORR gradbenistvo, trgovina in druge storitve d.o.o. SVN 100.00% 100.00% N SIT — 

Gradevinsko preduzece Porr d.o.o. SCG 0.00% 100.00% N CSD — 

Porr Stambena izgradnja d.o.o. Belgrade SCG 0.00% 100.00% N CSD — 

Affiliated partnerships 

AG für Bauwesen Nfg. KG AUT 50.00% 76.24% A EUR 7,267.28 

Asphaltmischwerk LEOPOLDAU - TEERAG-ASDAG + Mayreder-Bau GmbH & Co. KG AUT 0.00% 41.99% A EUR 70,000.00 

ASW-Asphalt- und Schotterwerk Neustift GmbH & Co. KG AUT 0.00% 76.24% A EUR 741,262.92 

Floridsdorf Am Spitz Wohnungseigentumsgesellschaft m.b.H. & Co. KG. AUT 0.00% 95.18% A EUR 150,719.24 

Franz Böck´s Nachf. Ing. Eva & Karl Schindler Gesellschaft m.b.H. &Co.Nfg.KG AUT 0.00% 100.00% A EUR 100,000.00 

Gamper Baugesellschaft m.b.H. & Co. KG AUT 0.00% 100.00% A EUR 15,000.00 

Gilamo Beteiligungsverwaltungs GmbH & Co. KEG AUT 0.00% 100.00% N EUR — 

Giral Beteiligungsverwaltungs GmbH & Co. KEG AUT 0.00% 100.00% N EUR — 

Glamas Beteiligungsverwaltungs GmbH & Co “Alpha” KEG AUT 0.00% 100.00% N EUR — 

Glamas Beteiligungsverwaltungs GmbH & Co “Beta” KEG AUT 0.00% 100.00% N EUR — 

Glamas Beteiligungsverwaltungs GmbH & Co “Delta” KEG AUT 0.00% 100.00% N EUR — 

Glamas Beteiligungsverwaltungs GmbH & Co “Epsilon” KEG AUT 0.00% 100.00% N EUR — 

Glamas Beteiligungsverwaltungs GmbH & Co “Gamma” KEG AUT 0.00% 100.00% N EUR — 

Hotelbetrieb SFZ Immobilien GmbH & Co KG AUT 0.00% 100.00% N EUR — 

Porr Technics & Services GmbH & Co KG AUT 0.00% 90.00% A EUR 436,037.01 

Projekt Ost - IBC Business Center Entwicklungs- und Errichtungs-GmbH & Co KG AUT 75.00% 100.00% A EUR 290,691.34 

Projekt West - IBC Business Center Entwicklungs- und Errichtungs-GmbH & Co KG AUT 75.00% 100.00% A EUR 290,691.34 

Rizzi Plaza Errichtungs- und Verwertungs GmbH & Co KEG AUT 0.00% 100.00% N EUR — 

SFZ Freizeitbetriebs-GmbH & Co KG AUT 0.00% 100.00% A EUR 100,000.00 

SFZ Immobilien GmbH & Co KG AUT 0.00% 100.00% A EUR 363,364.17 

Vorspann-Technik GmbH & Co.KG AUT 97.00% 100.00% A EUR 1,417,120.27 

Wibeba Hochbau GmbH & Co. Nfg. KG AUT 100.00% 100.00% A EUR 35,000.00 

Wiener Betriebs- und Baugesellschaft m.b.H. & Co. Nfg. KG AUT 100.00% 100.00% A EUR 35,000.00 

Wohnpark Laaer Berg Verwertungs- und Beteiligungs-GmbH & Co. 

Bauplatz 3 “türkis” Projekt-OEG AUT 0.00% 75.00% A EUR 1,162.76 


Bauplatz 4 “blau” Projekt-OEG AUT 0.00% 75.00% N EUR — 


Bauplatz 5 “rosa” Projekt-OEG AUT 0.00% 75.00% A EUR 1,162.76 

Porr Projekt v.o.s. CZE 0.00% 52.25% N CZK — 

Betzold Rohrbau GmbH & Co. KG DEU 0.00% 100.00% A EUR 3,374,526.41 

Forum am Bahnhof Quickborn GmbH & Co. KG DEU 0.00% 100.00% N EUR — 

Porr GmbH & Co. KG Berlin DEU 0.00% 93.94% A EUR 511,291.88 

Porr GmbH & Co. KG Schkeuditz DEU 0.00% 93.94% A EUR 3,067,751.29 

Radmer Kiesvertriebs GmbH & Co. KG DEU 0.00% 93.94% A EUR 3,655,736.95 

Radmer Kiesvertriebs GmbH & Co. KG DEU 0.00% 93.94% A EUR 1,907,118.72 

Siebke Bau GmbH & Co. Wasserbau KG in Liquidation DEU 0.00% 93.94% N EUR — 

TRB Tief-, Rohrleitungs- und Brunnenbau GmbH & Co. KG DEU 0.00% 69.74% A EUR 255,645.94 

125





ASSOCIATED COMPANIES 

Associated companies limited by shares 

“Internationale Projektfinanz” Warenverkehrs- & Creditvermittlungs-Aktiengesellschaft AUT 40.00% 40.00% E EUR 726,728.34 

ABW Abbruch, Boden- und Wasserreinigungs-Gesellschaft m.b.H. AUT 0.00% 36.22% E EUR 218,018.50 

Altlastensanierung und Abraumdeponie Langes Feld Gesellschaft m.b.H. AUT 0.00% 41.50% E EUR 363,364.17 

BIOVERSAL Trade und Technologies GmbH in Liquidation AUT 0.00% 26.24% E EUR 36,336.42 

FMA Gebäudemanagement GmbH AUT 0.00% 45.00% E EUR 36,336.42 

Impulszentrum Telekom Betriebs GmbH AUT 0.00% 49.00% E EUR 727,000.00 

LTE Logistik- und Transport- GmbH AUT 0.00% 50.00% E EUR 300,000.00 

Ropa Liegenschaftsverwertung Gesellschaft m.b.H. AUT 50.00% 50.00% E EUR 36,336.42 

Salzburger Reststoffverwertung GmbH AUT 0.00% 50.00% E EUR 100,000.00 

Stöckl Schotter- und Splitterzeugung GmbH AUT 0.00% 21.00% E EUR 36,336.42 

TAL Betonchemie Handel GmbH AUT 0.00% 26.24% E EUR 145,345.67 

Tauernkies GmbH AUT 0.00% 26.24% E EUR 35,000.00 

UBM Realitätenentwicklung Aktiengesellschaft AUT 41.27% 41.27% E EUR 5,450,462.56 

W 3 Errichtungs- und Betriebs-Aktiengesellschaft AUT 53.33% 53.33% E EUR 74,126.29 

Porr & Swietelsky stavebni, v. o. s. CZE 0.00% 50.00% E CZK 200,000.00 

“Spolecné obalovny s.r.o.” CZE 0.00% 26.24% E CZK 5,000,000.00 

Modzelewski & Rodek Spólka z ograniczona odpowiedzialnoscia POL 0.00% 50.00% E PLN 510,000.00 

Associated partnerships 

Allgemeine Baugesellschaft - A. Porr Aktiengesellschaft & UNIVERSALE-BAU 

Aktiengesellschaft, offene Handelsgesellschaft zur Errichtung von Eigentumswohnungen AUT 50.00% 50.00% E EUR 7,267.28 

ASF Frästechnik GmbH & Co KG AUT 0.00% 26.24% E EUR 72,674.00 

Asphaltmischwerk Betriebsgesellschaft m.b.H. & Co KG AUT 0.00% 21.00% E EUR 726,728.34 

Asphaltmischwerk Greinsfurth GmbH & Co AUT 0.00% 26.24% E EUR 600,000.00 

Asphaltmischwerk Weißbach GmbH & Co. Nfg.KG AUT 0.00% 23.62% E EUR 72,672.83 

ASTRA- BAU Gesellschaft m.b.H. Nfg. OHG AUT 0.00% 26.24% E EUR 1,451,570.76 

Lieferasphalt Gesellschaft m.b.H. & Co, Viecht AUT 0.00% 17.58% E EUR 29,069.13 

Lieferasphalt Gesellschaft m.b.H. & Co. OHG AUT 0.00% 21.00% E EUR 36,336.41 

Lieferasphalt Gesellschaft m.b.H. & Co. OHG. AUT 0.00% 26.24% E EUR 14,243.88 

LISAG Linzer Splitt- und Asphaltwerk GmbH. & Co KG AUT 0.00% 26.24% E EUR 861,900.00 

MSO Mischanlagen Süd-Ost Betriebsgesellschaft m.b.H. & Co.KG. AUT 0.00% 24.84% E EUR 87,207.40 

MSO Mischanlagen Süd-Ost Betriebsgesellschaft m.b.H. und Co KG AUT 0.00% 22.05% E EUR 3,270,277.54 

RBA - Recycling- und Betonanlagen Ges.m.b.H. & Co. Nfg. KG AUT 24.00% 24.00% E EUR 581,382.67 

Vereinigte Asphaltmischwerke Gesellschaft m.b.H. & Co KG AUT 0.00% 26.24% E EUR 263,296.74 

Neustädter Baustoff - GmbH & Co. KG, Kieswerk Schwaig DEU 0.00% 46.97% E EUR 76,693.79 

Radmer Bau Kieswerke GmbH & Co. Sand und Kies KG DEU 0.00% 46.97% E EUR 1,022,583.76 

OTHER COMPANIES 

Other companies limited by shares 

“Athos” Bauplanungs- und Errichtungsgesellschaft m.b.H. AUT 10.00% 10.00% N EUR — 

“hospitals” Projektentwicklungsges.m.b.H. AUT 0.00% 41.38% N EUR — 

“terminal tower” Immobilien GmbH AUT 0.00% 33.33% N EUR — 

“Turm und Riegel” Gebäude Projektentwicklungs und -verwertungsgesellschaft m.b.H. AUT 0.00% 50.00% N EUR — 

ABO Asphalt-Bau Oeynhausen GmbH. AUT 0.00% 15.75% N EUR — 

ALU-SOMMER GmbH AUT 24.50% 24.84% N EUR — 

AMB Asphalt-Mischanlagen Betriebsgesellschaft m.b.H. AUT 0.00% 10.50% N EUR — 

AMG - Asphaltmischwerk Gunskirchen Gesellschaft m.b.H. AUT 0.00% 17.50% N EUR — 

AMW Asphaltmischwerk Betriebsges.m.b.H., Rauchenwarth AUT 0.00% 21.00% N EUR — 

AMW Asphalt-Mischwerk GmbH AUT 0.00% 17.50% N EUR — 

aqua plus Wasserversorgungs- und Abwasserentsorgungs-GmbH AUT 0.00% 33.33% N EUR — 

ARIWA Abwasserreinigung im Waldviertel GmbH AUT 0.00% 16.67% N EUR — 

ASF Frästechnik GmbH AUT 0.00% 26.24% N EUR — 

Asphaltlieferwerk Leibnitz Baugesellschaft m.b.H. AUT 0.00% 15.75% N EUR — 

126





Asphaltmischwerk Greinsfurth GmbH AUT 0.00% 26.24% N EUR — 

Asphaltmischwerk LEOPOLDAU - TEERAG-ASDAG + Mayreder-Bau GmbH AUT 0.00% 26.24% N EUR — 

Asphaltmischwerk Steyregg GmbH AUT 0.00% 10.50% N EUR — 

A-WAYToll Systems GmbH AUT 0.00% 20.00% N EUR — 

AWB Asphaltmischwerk Weißbach Betriebs-GmbH AUT 0.00% 23.62% N EUR — 

Betonexpress FH Vertriebs-GMBH AUT 0.00% 10.50% N EUR — 

BMU Beta Liegenschaftsverwertung GmbH AUT 0.00% 50.00% N EUR — 

BRG Baustoffrecycling GmbH AUT 0.00% 10.50% N EUR — 

CCG Immobilien GmbH AUT 0.00% 36.00% N EUR — 

ECRA Emission Certificate Registry GmbH AUT 0.00% 5.00% N EUR — 

EDO Entsorgungsdienst Ost GmbH AUT 0.00% 17.50% N EUR — 

Esoro Beteiligungsverwaltungs GmbH AUT 0.00% 50.00% N EUR — 

FBG Fertigbetonwerk Großpetersorf Ges.m.b.H. AUT 0.00% 17.50% N EUR — 

FMA alpha Gebäudemanagement & -services GmbH AUT 0.00% 45.00% N EUR — 

FMA Asphaltwerk GmbH AUT 0.00% 15.75% N EUR — 

Gapos Beteiligungsverwaltungs GmbH AUT 0.00% 50.00% N EUR — 

Gaspix Beteiligungsverwaltungs GmbH AUT 24.00% 24.00% N EUR — 

GREENPOWER Anlagenerrichtungs- und Betriebs-GmbH AUT 0.00% 47.00% N EUR — 

GREENPOWER Projektentwicklungs-GmbH AUT 0.00% 47.00% N EUR — 

Handwerkerzentrum Hitzendorf GmbH AUT 0.00% 12.86% N EUR — 

ILC-Beteiligungsgesellschaft m.b.H. AUT 33.34% 33.34% N EUR — 

Infrastruktur Planungs- und Entwicklungs GmbH AUT 0.00% 45.00% N EUR — 

KAB Straßensanierung GmbH AUT 0.00% 10.49% N EUR — 

Kärntner Restmüllverwertungs GmbH AUT 0.00% 13.55% N EUR — 

Kraftwerk Tegesbach Errichtungs- und Betriebsgesellschaft m.b.H. AUT 0.00% 50.00% N EUR — 

Lavanttaler Bauschutt - Recycling GmbH AUT 0.00% 11.81% N EUR — 

Lieferasphalt Gesellschaft m.b.H. AUT 0.00% 26.24% N EUR — 

Linzer Schlackenaufbereitungs- und vertriebsgesellschaft m.b.H. AUT 0.00% 17.50% N EUR — 

LISAG Linzer Splitt- und Asphaltwerk GmbH. AUT 0.00% 26.24% N EUR — 

M.E.G. Mikrobiologische Erddekontamination GmbH AUT 0.00% 50.00% N EUR — 

MBU Liegenschaftsverwertung Gesellschaft m.b.H. AUT 0.00% 9.00% N EUR — 

MMU Gleisbaugerätevermietung GmbH AUT 50.00% 50.00% N EUR — 

MSO Mischanlagen Süd-Ost Betriebsgesellschaft m.b.H. AUT 0.00% 34.99% N EUR — 

Murgalerien Errichtungs- und Verwertungs-GmbH AUT 0.00% 50.00% N EUR — 

PKM - Muldenzentrale GmbH AUT 0.00% 34.93% N EUR — 

PM2 Bauträger GesmbH AUT 0.00% 20.00% N EUR — 

REHAMED Beteiligungsges.m.b.H. AUT 0.00% 20.69% N EUR — 

RFM Asphaltmischwerk GmbH. AUT 0.00% 17.50% N EUR — 

RFPB Kieswerk GmbH AUT 0.00% 8.75% N EUR — 

Rudolf u. Walter Schweder Gesellschaft m.b.H. AUT 10.00% 10.00% N EUR — 

Schotter- und Betonwerk Donnersdorf GmbH AUT 0.00% 10.50% N EUR — 

SOWI - Investor - Bauträger GmbH AUT 33.33% 33.33% N EUR — 

St. Peter-Straße 14-16 Liegenschaftsverwertung Ges.m.b.H. AUT 0.00% 26.24% N EUR — 

TAM Traisental Asphaltmischwerk Ges.m.b.H. AUT 0.00% 17.50% N EUR — 

TBG MiksitsGmbH AUT 0.00% 10.50% N EUR — 

TORO Bausanierungs- und HandelsgesmbH AUT 0.00% 13.11% N EUR — 

UWT Umwelttechnik GmbH AUT 0.00% 7.00% N EUR — 

Vereinigte Asphaltmischwerke Gesellschaft m.b.H. AUT 0.00% 26.24% N EUR — 

Wiental-Sammelkanal Gesellschaft m.b.H. AUT 0.00% 16.67% N EUR — 

WIG - Transportbeton Ges.m.b.H. AUT 0.00% 10.50% N EUR — 

WM Hotel Schladming GmbH AUT 0.00% 45.00% N EUR — 

WMW Weinviertler Mischwerk Gesellschaft m.b.H. AUT 0.00% 8.75% N EUR — 

Zenit Bauplanungs- und Errichtungsgesellschaft m.b.H. AUT 0.00% 50.00% N EUR — 

BBR VT International AG CHE 0.00% 22.50% N CHF — 

aqua plus CZ vodohospodárská s.r.o. CZE 0.00% 33.33% N CZK — 

127





Eko-Sber Brno spol. s.r.o. CZE 0.00% 20.00% N CZK — 

TORO sanace staveb s.r.o. CZE 0.00% 11.80% N CZK — 

VaK plus vodohospodarska s.r.o. CZE 0.00% 13.00% N CZK — 

Vystavba hotelu PRAHA - ZVONARKA, spol. s.r.o. CZE 0.00% 11.11% N CZK — 

Bayernfonds Immobilienentwicklungsgesellschaft Wohnen plus GmbH DEU 0.00% 1.81% N EUR — 

BFS Florido Tower GmbH DEU 0.00% 2.79% N EUR — 

Blitz 04-247 GmbH DEU 0.00% 5.64% N EUR — 

Bürohaus Leuchtenbergring Verwaltungs GmbH DEU 0.00% 0.93% N EUR — 

Florido Tower Management GmbH DEU 0.00% 1.40% N EUR — 

Münchner Grund Immobilien Bauträger Aktiengesellschaft DEU 0.00% 5.64% N EUR — 

Münchner Grund Riem GmbH DEU 0.00% 3.61% N EUR — 

Neustädter Baustoff - Gesellschaft mit beschränkter Haftung DEU 0.00% 46.97% N EUR — 

Radmer Bau Kieswerke GmbH DEU 0.00% 46.97% N EUR — 

REAL I.S. Project GmbH DEU 0.00% 2.79% N EUR — 

TMG GmbH (Tiefbaumaterial GmbH) DEU 0.00% 33.33% N EUR — 

Transportbetonwerk Kelheim-Abensberg-Neustadt GmbH DEU 0.00% 10.33% N EUR — 

Adriaplus projektiranja, gradenje i nadzor nad gradnjom d.o.o. HRV 0.00% 11.33% N HRK — 

Vile Jordanovac drustvo s ogranicenom odgovornoscu za usluge i graditeljstvo HRV 0.00% 50.00% N HRK — 

zagrebtower drustvo s ogranicenom odgovornoscu za usluge i graditeljstovo HRV 0.00% 49.00% N HRK — 

ASDAG Kavicsbánya és Épitö Korlátolt Felegösségü Társaság HUN 0.00% 13.30% N HUF — 

ASDEKA Epitöanyagipari Kereskedelmi Kft. HUN 0.00% 6.65% N HUF — 

Duna Beton és Kavics Korlátolt Felegösségü Társaság HUN 0.00% 50.00% N HUF — 

M6 Duna Autópálya Koncessziós Részvénytársaság HUN 0.00% 40.00% N HUF — 

PORR Malaysia Sendirian Berhad MAL 50.00% 50.00% N MYR — 

Mlynska Development Spólka z ograniczona odpowiedzialnoscia POL 0.00% 40.00% N PLN — 

AQUASYSTEMS, gospodarjenje z vodami, d.o.o. SVN 0.00% 10.00% N SIT — 

LTE Logistik- und Transport Slovakia s.r.o. SVK 0.00% 50.00% N SKK — 

Other partnerships 

“terminal tower” Immobilien GmbH & Co KEG AUT 0.00% 33.33% N EUR — 

AMB Asphalt-Mischanlagen Betriebsgesellschaft m.b.H & Co KG AUT 0.00% 10.50% N EUR — 

AMG - Asphaltmischwerk Gunskirchen Gesellschaft m.b.H. & Co. KG AUT 0.00% 17.50% N EUR — 

Asphaltmischwerk Steyregg GmbH & Co KG AUT 0.00% 10.50% N EUR — 

EDO Entsorgungsdienst Ost GmbH & CO KG AUT 0.00% 17.50% N EUR — 

Esoro Beteiligungsverwaltungs GmbH & Co KEG AUT 0.00% 50.00% N EUR — 

FMA Asphaltwerk GmbH & Co KG AUT 0.00% 15.75% N EUR — 

KAB Straßensanierung GmbH & Co KG AUT 0.00% 10.49% N EUR — 

RegioZ Regionale Zukunftsmanagement und Projektentwicklung 

Ausseerland Salzkammergut GmbH & Co KEG AUT 0.00% 4.27% N EUR — 

RFM Asphaltmischwerk GmbH & Co KG AUT 0.00% 17.50% N EUR — 

RFPB Kieswerk GmbH & Co KG AUT 0.00% 8.75% N EUR — 

Salzburger Lieferasphalt OHG AUT 0.00% 10.50% N EUR — 

TAM Traisental Asphaltmischwerk Ges.m.b.H. & Co KG AUT 0.00% 17.50% N EUR — 

WMW Weinviertler Mischwerk Gesellschaft m.b.H. & Co KG AUT 0.00% 8.75% N EUR — 

Bayernfonds Immobiliengesellschaft mbH & Co. Florido Tower KG DEU 0.00% 1.40% N EUR — 

Bürohaus Leuchtenbergring GmbH & Co. Besitz KG DEU 0.00% 0.93% N EUR — 

Bürohaus Leuchtenbergring GmbH & Co. KG DEU 0.00% 0.86% N EUR — 

Immobilien- und Baumanagement Stark GmbH & Co. Stockholmstraße KG DEU 0.00% 3.61% N EUR — 

MG Grundbesitz Objekt Wolfratshauserstraße 50-56 KG DEU 0.00% 5.64% N EUR — 

Transportbetonwerk Kelheim-Abensberg-Neustadt GmbH Vertriebsgesellschaft KG DEU 0.00% 10.33% N EUR — 

M6-Autópálya Èpitèsi Közkereseti Társaság HUN 0.00% 33.33% N HUF — 

Porr-Habau Kkt. HUN 0.00% 50.00% N HUF — 

Key: 

A = Affiliated company 

E = Equity consolidated company 

N = Non-consolidated affiliated company under § 249 section 2 / § 263 section 2 of the Commercial Code 

* = Profit and loss transfer agreement 

A statement of share ownership according to § 238 section 2 of the Commercial Code is lodged with the company register at Vienna Commercial Court 

128


SUPERVISORY BOARD REPORT 

FOR THE ANNUAL FINANCIAL STATEMENTS 2005 

At its meetings, the Supervisory Board has been kept constantly informed of the development 

of business and all important matters concerning the company through spoken and 

written reports from the Executive Board. 

The annual financial statements prepared by the Executive Board as of 31 st December 

2005, including the notes to the accounts and the management report, were jointly 

audited by Deloitte Wirtschaftsprüfungs GmbH of Vienna and BDO Auxilia Treuhand 

GmbH of Vienna. The audit based on the bookkeeping and documentation of the company 

as well as the explanations and documentation provided by the Executive Board revealed 

that the bookkeeping records and the annual financial statements complied with the legal 

requirements and provided no cause for complaint. The management report accords with 

the annual financial statements. The aforementioned audit companies have therefore 

issued an unqualified audit certificate. 

The Supervisory Board has audited, approved and certified the annual financial statements 

for 2005 and the management report for the fiscal year 2005, in particular through the 

advice provided at the financial audit committee in the presence of the auditors. The 

Supervisory Board agrees with the proposal of the Executive Board regarding the appropriation 

of profit. 

Vienna, June 2006 

Klaus Ortner (*) 

Chairman of the Supervisory Board 


129


BALANCE SHEET FOR PORR AG 

AS OF 31 ST DECEMBER 2005 

ASSETS 31.12.2005 31.12.2004 

€ € IN EUR THOUSAND 

A. Fixed assets 

I. Intangible assets 

Concessions, licences and similar rights 4,889,412.00 4,662 

II. Tangible assets 

1. Properties, similar property rights and buildings, 

including buildings on non-owned land 64,560,921.48 71,121 

2. Technical equipment and machinery 752,796.00 1,843 

3. Other plants, factory and business equipment 4,309,850.07 4,753 

4. Payments on account and plants under construction 13,312,941.54 13,213 

82,936,509.09 90,930 

III. Financial assets 

1. Shares in affiliated companies 184,454,764.49 136,091 

2. Shareholdings 21,838,075.60 21,948 

3. Securities held as long-term investments 14,582,021.08 17,166 

4. Other loans 4,367,088.87 4,285 

225,241,950.04 179,490 

313,067,871.13 275,082 

B. Current assets 

I. Inventories 

1. Construction in progress 3,426,844.00 3,166 

less advance payments from customers - 2,176,587.50 - 1,193 

1,250,256.50 1,973 

2. Raw materials and supplies 532,915.02 7,814 

3. Real estate designated for development 6,699,862.19 12,822 

8,483,033.71 22,609 

II. Accounts receivable and other assets 

1. Trade debtors 6,590,081.96 12,137 

2. Receivables from affiliated companies 154,809,223.95 220,852 

3. Receivables from companies 

in which the company has a participating interest 6,632,988.78 15,048 

4. Receivables from joint ventures 4,190,363.32 7,235 

5. Other accounts receivable and assets 17,112,026.52 28,812 

189,334,684.53 284,084 

III. Securities and shares 

Own shares 0.00 1,582 

IV. Cash on hand, cash at banks 10,043,960.99 3,757 

207,861,679.23 312,032 

C. Prepaid expenses 996,811.06 385 

521,926,361.42 587,499 

130


SHAREHOLDERS’ EQUITY AND LIABILITIES 31.12.2005 31.12.2004 


A. Equity capital 

I. Share capital 

1. Ordinary shares 9,750,877.53 9,751 

2. Preference shares 4,665,595.95 4,666 

14,416,473.48 14,417 

II. Capital share certificates 361,910.71 362 

III. Capital reserves 

1. Appropriated 33,682,676.83 33,682 

2. Unappropriated 6,807.12 7 

IV. Retained earnings 

33,689,483.95 33,689 

1. Statutory reserve 457,838.86 458 

2. Other (free) reserves 56,066,024.62 45,200 

3. Reserve for own shares 0.00 1,582 

V. Unappropriated retained earnings 

56,523,863.48 47,240 

1. Unappropriated profits brought forward 300,655.45 552 

2. Annual profit 3,279,560.20 3,288 

B. Untaxed reserves 

3,580,215.65 3,840 

108,571,947.27 99,548 

1. Valuation reserve due to extraordinary depreciation 29,299,047.64 31,552 

2. Other untaxed reserves 0.00 7,015 

C. Provisions 

29,299,047.64 38,567 

1. Provisions for severance payments 25,716,243.00 17,394 

2. Provisions for pensions 11,152,532.00 10,467 

3. Tax provisions 2,285,223.00 1,059 

4. Other provisions 20,407,557.52 29,071 

D. Accounts payable 

59,561,555.52 57,991 

1. Bonds 100,000,000.00 0 

2. Mortgage payables 1,319,841.75 1,469 

3. Bank loans and overdrafts 138,895,060.63 233,230 

4. Trade creditors 5,896,310.47 8,050 

5. Payables to affiliated companies 18,182,788.47 85,983 

6. Payables to companies in which the company has a participating interest 172,375.32 7 

7. Payables to joint ventures 1,726,158.75 1,696 

8. Other payables 58,186,815.88 60,818 

(Of which taxes €15,394,777.05; previous year: TEUR 20,243 

Of which relating to social security €574,544.61; previous year: TEUR 917) 

324,379,351.27 391,253 

E. Deferred income 114,459.72 140 

521,926,361.42 587,499 

Contingent liabilities 48,781,038.97 76,388 

131


PROFIT AND LOSS ACCOUNT FOR PORR AG 

FOR FISCAL YEAR 2005 

2005 2004 


1. Gross revenues 82,295,099.42 194,986 

2. Change in inventory of construction in progress 261,408.11 - 92,166 

3. Other own work capitalised 578,814.60 152 

4. Other operating income 

a) Income from the sale of fixed assets, excluding financial assets 6,107,593.75 4,036 

b) Income from the reversal of provisions 2,070,685.91 0 

c) Other 9,662,480.27 3,070 

17,840,759.93 7,106 

Operating performance 100,976,082.06 110,078 

5. Cost of materials and purchased services 

a) Cost of materials - 13,597,652.54 - 6,510 

b) Cost of purchased services - 22,522,021.09 - 29,271 

6. Personnel costs 

- 36,119,673.63 - 35,781 

a) Wages - 3,938,250.74 - 8,352 

b) Salaries - 18,154,521.65 - 17,904 

c) Expenditure for severance payments and contributions 

to statutory employee welfare funds - 3,999,204.33 - 2,453 

d) Expenditure for retirements - 3,226,227.90 - 2,619 

e) Expenditure for statutory social security charges, 

payroll-related taxes and mandatory contributions - 5,067,052.14 - 6,057 

f) Other social costs - 105,104.15 - 388 

- 34,490,360.91 - 37,773 

7. Depreciation of intangible fixed assets and tangible assets -7,659,236.26 -7,914 

8. Other operating expenses 

a) Taxes other than taxes on income - 146,742.17 - 147 

b) Other - 26,408,931.70 - 22,155 

- 26,555,673.87 - 22,302 

9. Subtotal of items 1 to 8 (operating result) - 3,848,862.61 6,308 

132


2005 2004 


10. Income from shareholdings 26,324,853.22 7,574 

(Of which from affiliated companies €25,019,398.70; previous year: TEUR 6,104) 

11. Income from other long-term securities and loans 272,315.59 525 

12. Other interest receivables and similar income 5,826,018.73 9,149 


13. Income from sales of financial assets 2,154,773.58 7,015 

14. Expenditure from financial assets and current securities - 3,009,336.28 - 2,679 


15. Interest payable and other similar charges - 19,419,055.68 - 19,177 

(Of which relating to affiliated companies €6,066,431.93; previous year: TEUR 6,018) 

16. Subtotal of items 10 to 15 (financial result) 12,149,569.16 2,407 

17. Results from ordinary activities 8,300,706.55 8,715 

18. Extraordinary charges = - 2,183,375.09 - 400 

19. Extraordinary profit (loss) - 2,183,375.09 - 400 

20. Taxes on income - 2,822,222.41 - 220 

21. Annual net income 3,295,109.05 8,095 

22. Release of untaxed reserves 

a) Valuation reserve due to special depreciation 2,253,186.15 2,206 

b) Other untaxed reserves 7,014,820.35 482 

23. Allocation to untaxed reserves 

9,268,006.50 2,688 

Other untaxed reserves 0.00 - 7,015 

24. Transfer to retained earnings - 9,283,555.35 - 480 

25. Unappropriated profits brought forward 300,655.45 551 

26. Unappropriated retained earnings 3,580,215.65 3,839 

133


APPROPRIATION OF EARNINGS 

€ 

In fiscal year 2005 the profit earned amounted to 3,279,560.20 

When unappropriated profit brought forward for 2004 of 300,655.45 

is added to this, the unappropriated retained earnings available to the annual shareholders’ meeting stand at 3,580,215.65 

The Executive Board proposes the following appropriation of earnings: 

Payment of a dividend equalling €1.74 to each dividend-entitled share 

QUANTITY € 

Share capital shares 1,983,750 3,451,725.00 


Balance brought forward to new account 41,838.65 

In the event that the proposal is accepted, the dividend of €1.74 per share will be paid out 

from 4 th July 2006 in accordance with the legal provisions at Bank Austria Creditanstalt AG, 

Raiffeisen Zentralbank Österreich Aktiengesellschaft, Erste Bank der oesterreichischen 

Sparkassen AG and Schoellerbank Aktiengesellschaft and the branches thereof upon 

redemption of dividend coupon no. 58 (ordinary shares) and dividend coupon no. 59 

(preference shares). Payment of the dividend in respect of capital share certificates 

of €1.74 per certificate also takes place from 4 th July 2006 in accordance with legal 

provisions through the relevant custodian bank. 


The Executive Board 

Horst Pöchhacker (*) Wolfgang Hesoun (*) 

Helmut Mayer (*) Peter Weber (*) 


134


AUDITORS’ REPORT 

TO THE ANNUAL FINANCIAL STATEMENTS 

FOR 31 ST DECEMBER 2005 FOR ALLGEMEINE BAUGESELLSCHAFT – 


We have audited the annual financial statements prepared by Allgemeine Baugesellschaft – 

A. Porr Aktiengesellschaft, Vienna, including the bookkeeping records, for the fiscal year 

from 1 st January 2005 to 31 st December 2005. The legal representatives of the parent company 

are responsible for bookkeeping, preparation and content in respect of these annual 

financial statements and of the management report in accordance with Austrian commercial 

law statutes and supplementary provisions in the statutes. Our task is to express an opinion 

on the annual financial statements on the basis of our audit and to state whether the management 

report is consistent with the annual financial statements. 

Our audit was conducted in accordance with legal and professional auditing standards generally 

accepted in Austria. These standards require that we plan and perform our audit in such 

a way as to provide a reasonable basis for an opinion as to whether the annual financial 

statements are free of material errors and whether the management report is consistent with 

the annual financial statements. When determining the auditing procedure, information on 

the business activities and the economic and legal environment of the company was taken 

into account along with the likelihood of potential errors. The audit involved a mainly samplebased 

examination of the supporting documentation for the figures and information in the 

bookkeeping records and the annual financial statements; it also included an assessment 

of the accounting principles applied and the material estimates carried out by the legal 

representatives, together with an evaluation of the overall presentation of the annual financial 

statements. We believe that our audit provides a reasonable basis for our opinion. 

Our audit did not give rise to any objections. On the basis of the facts obtained during the 

course of the audit, the annual financial statements correspond in our opinion to the statutory 

provisions and to the supplementary provisions in the statutes and reflect a true representation 

of the financial position of the company as of 31 st December 2005 as well as the earnings 

situation of the company for the fiscal year from 1 st January 2005 to 31 st December 2005 in 

accordance with generally accepted accounting standards in Austria. The management report 

accords with the annual financial statements. 


Deloitte Wirtschaftsprüfungs GmbH 

Nikolaus Schaffer (*) Michael Heller (*) 



BDO Auxilia Treuhand GmbH 

Auditors and Tax Consultants 

Karl Bruckner (*) Johann Seidl (*) 




135


GLOSSARY 

ARGE A joint venture combining expertise in several sectors for the realisation of construction projects 

Associated company A company which is not majority-owned but over which significant influence is 

exerted 

ATX Austrian Traded Index; key index of the Vienna Stock Exchange 

Cash earnings according to ÖVFA Definition of result which was developed by the Österreichische 

Gesellschaft für Finanzanalyse und Anlageberatung and is used as a basis for representing cash flow 

DAX German Share Index 

Deconsolidation Companies that have been included in the consolidated accounts so far are no longer 

included or are included only in proportion to the level of the holding (refer also to equity method) 

EBIT Earnings before interest and taxes; operating performance 

EBIT margin EBIT in relation to sales revenue 

EBT Earnings before tax; pre-tax result 

ECV Compliance regulations for issuers designed to prevent abuse of insider information 

EGT Result from ordinary activities; a performance indicator calculated in accordance with Austrian 

Commercial Law (the comparable figure under IFRS would be EBT) 

Equity method A method for valuing shares in companies over whose business or financial policy significant 

influence can be exerted. The pro rata net income (net loss) of the associated company serves to 

increase (reduce) the book value of the investment and is stated in the profit and loss account 

Equity ratio Share of equity in the balance sheet total 

IFRS International Financial Reporting Standards 

Inventory change The billing and recognition of a building contract as sales revenue results in a change 

in the inventories item of the profit and loss account. Manufacturing costs not yet billed for building 

work are included in this item if the work was accomplished during the business year, but has not been 

completed and billed. 

Market capitalisation Stock market value of a public limited company (share price x number of shares 

in issue) 

Operating output Output of corporate units including proportionate sales of joint ventures and 

proportionate services of companies that are still capable of full consolidation (= production output) 

Order balance Total of all orders or contracts which have not been executed by the key date in question 

P/E ratio Price/earnings ratio; measure for valuing a share on the capital market 

Payout ratio Proportion of the dividend payment in the annual profit 

Performance The movements in the price of a share 

Public-private partnership (PPP) Cooperation between the public sector and private enterprise 

ROCE Return on Capital Employed; EBIT in relation to the average equity capital employed plus net 

interest-bearing borrowed capital; figure for measuring the all-in equity return 

ROE Return on equity; result before minority interests through equity including minority interests; 

figure for measuring return on equity 

Sales revenue Sales as shown in the profit and loss account 

Shares of minority shareholders Shares of other companies in companies which are included in the 

Group accounts 

WBI Vienna Stock Exchange Index 

136

IMPRINT 

Media proprietor 


A-1103 Vienna, Absberggasse 47 

Tel. nat. 050 626-0, Fax: -1111 

Tel. int. +43 50 626-0 

www.porr.at 

e-mail: zentrale@porr.at 

Concept and consultancy 

BCA Mensalia 

Design and Illustration 

Büro X Wien 

Photography 

Robert Deopito · PORR archive · Klaus Vyhnalek 

Further information 


Public Relations 

Absberggasse 47, A-1103 Vienna 

e-mail: renee.meisinger@porr.at 

This annual report is also available in English. In cases of dispute, the German version 

shall take precedence. German and English versions of the report may be downloaded 

from www.porr.at.

ABAP Ref. 1002 / 06.06 / 2,2M

management report - PORR AG

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