Foreword

Dear Shareholders and Business Associates,
Ladies and Gentlemen,

The products and services provided by Bilfinger Berger are well-established in the market and ensured that we enjoyed another successful year in 2006. Output volume, orders received and earnings exceeded our expectations. Our share price rose by 38% in the course of the year and our market capitalization surpassed the €2 billion mark.

The Services business segment continued to grow and thus further improved the Group's income and risk exposure. Whether in real estate, transport infrastructure, industrial plants, power plants or oil rigs - the Multi Service Group stands ready as a competent partner.

Our traditional business segments, Civil and Building and Industrial, also made contributions to the positive overall picture. Our Building division in Germany had a very strong year. Numerous projects were gained through i.volution, our comprehensive business model which offers substantial benefits to our customers. Developments were also positive in Australia, Bilfinger Berger’s second most important market for building construction: Now, once again we have an order backlog with good earnings potential in this market.

The development of Germany's still-young market for public-private partnerships (PPP) in building construction started to accelerate: Schools, prisons and administrative buildings are good examples of successful cooperation between the public and private sectors. Bilfinger Berger was able to successfully establish itself in this future market despite strong competition.

We generated two thirds of our total output volume outside Germany in 2006. In the Civil business segment, the proportion was actually 80%. This was a result of both the dynamism of our international markets and our high technical expertise, which has made us one of the leading suppliers of infrastructure projects worldwide. In the Civil segment, we intend to further strengthen our market position in Europe, Australia, Canada and the Persian Gulf region. Our international focus allows us to compensate for fluctuations in regional markets.

In the Civil segment, we intend to further strengthen our market position in Europe, Australia, Canada and the Persian Gulf region. Our international focus allows us to compensate for fluctuations in regional markets.