Ladies and Gentlemen,
Dear Shareholders and Business Associates,

Bilfinger Berger has evolved dynamically over the past year. Visible progress has been made with the drive initiated two years ago to develop into a multi-service group. A significantly broader range of services is now available. As well as belonging to the leading group of international construction companies, Bilfinger Berger is now one of Germany's top real-estate and industrial services companies.

The integration of the companies Rheinhold & Mahla, HSG and Wolfferts, all acquired in 2002, is progressing successfully. We are thus establishing the basis on which to extend our portfolio of industrial and real-estate service activities further. The new business-segment structure introduced at the start of 2003 comes in response to the changes that have taken place within our company. The new structure of our segments paves the way for transparent reporting – not least of the progress of service business, which will account for one-fifth of the Group’s output volume in the current year, and contribute over one-third of our operating profit.

Our privately-financed BOT activities, too, enjoyed a higher profile during the past year. In clinching the Cross City Tunnel project in Sydney, we have been able to take on a much acclaimed project in an interesting market. We are in addition pursuing further attractive projects for public-sector buildings and transport infrastructure which are to be financed and run by the private sector. We have trimmed back our project development activities in view of the highly recessive German real-estate market and are concentrating increasingly on project development on behalf of our clients which can be handled without the need to employ our own capital. Setting up provisions for real estate held for sale,we have improved the prospects of slimming down our property development portfolio more rapidly as part of the reorganization of real estate development activities.

We will remain committed to expanding our strong international position. We have successfully entered new market segments in the United States and Australia by exploiting scope for synergy within the Group. The contracts we won there last year have strengthened our position as a leading player for challenging infrastructure projects also in those markets. We moreover aim to generate further growth in other regions where we possess thorough experience. Any acquisition candidates which might expand our international business are scrutinized with the utmost rigorousness. Activities that are not guaranteed to contribute towards Bilfinger Berger's corporate success are out of the question.