Group Management Report

Bilfinger Berger continued its successful development in 2006. Our business volume grew significantly once again. Operating profit and net profit increased substantially, while the return on capital employed surpassed our target by far.

In the Civil business segment, the growth in orders received was the result of strong demand in our international markets.

• In Australia, we secured several important large-scale projects for the expansion of the country’s transport infrastructure.
• Our construction expertise and our concessions know-how ideally complement each other. This is a major strategic advantage with large infrastructure projects.
• Demand is also lively in Europe outside Germany, especially in Scandinavia, where we have established a good market position in a comparatively short time.
• In Germany, price levels in public-sector construction are still unsatisfactory, despite the economic upturn, so we are continuing with our selective approach in this market.

In the Building and Industrial business segment, we have an excellent position in our core markets of Germany, Australia and Nigeria.

• In Germany, demand for commercial building construction has revived and led to increased orders received. Our comprehensive approach combining consulting, construction and services over the whole life cycle of a building gives us important competitive advantages.
• Our building-construction business in Germany is also benefiting from growing acceptance for private-sector concession models.
• In Australia, we have successfully consolidated our activities in the field of building construction. This business now offers good prospects once again.
• In Nigeria, our associated company Julius Berger Nigeria is profiting from ongoing strong demand from private clients in the oil and gas industry.