Annual Report 2005
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5 200 T REPOR ANNUAL – SE STRABAG STRABAG SE A–1220 Vienna,Donau-City-Straße 9 Tel. +43 (0)1 / 224 22 - 0 www.strabag.at ANNUAL REPORT 2005 Partner of TIROLER FESTSPIELE ERL CONSOLIDATED PROFIT AND LOSS ACCOUNT KEY FIGURES (consolidated) CONSOLIDATED BALANCE SHEET OF FIMAG FINANZ INDUSTRIE MANAGEMENT AG CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE 2005BUSINESS YEAR Notes 20052004 T d T d 2003 2004 2005 Revenue(1) 6,955,7975,222,905 Changes in inventories34,38738,884 A Own workcapitalized 16,56411,727 Output incl.specialpartnerships (in million ) Other operating income (2)149,901136,967 Germany2,115 1,970 3,523 Cost of materialand services(3)-5,019,607 -3,609,458 Austria1,545 1,5681,924 Personnel expenditure(4) -1,401,876 -1,185,509 Hungary 548 678938 Depreciation on tangible and intangible assets (5) -178,677 -208,889 CzechRepublic384 504714 Other operating expenses(6)-400,981 -311,496 Poland 297276 433 Earnings beforededucting financing costs and taxes155,50895,131 Switzerland 115 183295 Shareofprofit of associates(7)5,4247,897 Slovakia59 219 253 Earnings from investments (8) 2,1978,673 Croatia15698 241 Other financial results (9) -28,414 -20,351 Benelux 205196209 Financial result-20,793-3,781 Other Countries213272 785 Earnings before taxes134,715 91,350 Total5,637 5,9649,315 Income tax(10)-40,149 -25,602 Earnings after taxes94,566 65,748 Average level of employment Minority interest -8,8171) -30,249 Germany10,9649,988 14,668 Consolidated results85,749 35,499 Austria8,970 8,789 9,731 Hungary 3,8873,849 4,013 CzechRepublic2,8083,222 3,742 CONSOLIDATED BALANCE SHEET ON 31DECEMBER 2005 Poland 1,5611,366 2,408 Assets Switzerland 781 9611,591 Slovakia514 2,059 2,149 Notes 31.12.200531.12.2004 Croatia754 534692 d d T T Benelux 579528550 Non-current assets Other Countries1,881 1,991 4,969 Intangible assets (11) 67,085 32,550 Total32,699 33,28744,513 Tangible assets (11) 1,135,867 955,907 Investments in associates(12)64,84245,495 A Other financialassets (12)305,770 264,016 Order backlog (in million ) Trade receivables and receivables for services rendered (15) 43,618 99,563 Germany1,100 1,2212,475 Other accounts receivable and other assets (15) 33,169110,670 Austria798 955 1,558 Deferred taxes(13)86,45792,161 1,736,8081,600,362 Hungary 186731458 Current assets CzechRepublic358 438641 Inventories(14) 618,717540,856 Poland 139368464 Trade receivables and receivables for services rendered (15) 1,948,5781,157,146 Switzerland 444 363 331 Other accounts receivable and other assets (15) 266,967 142,494 Cashand cashequivalents (16)555,857212,399 Slovakia118 158 151 3,390,119 2,052,895 Croatia42204162 5,126,927 3,653,257 Benelux 123 152251 Equity and Liabilities Other Countries3693901,436 Notes 31.12.200531.12.2004 Total3,677 4,9807,927 T d T d A Groupequity Key figures in accordance withIFRS (in million ) Sharecapital53,93853,938 Investments in fixed assets 244 207 305 Capital reserves163,800 163,800 Depreciation on fixed assets 173 209179 Retained earnings541,264237,380 Minority interest 146,4681) 347,138 (17) 905,470 802,256 Key balance sheet figures Non-current liabilities Equity incl. minority interest (in million d )760 802 905 Provisions(18) 556,617358,737 Equity ratio (in %) 23 22 18 Financialliabilities(19) 602,630 561,161 EBITDA (in million d ) 1) 2 56304334 Liabilities from trade payables and payables for services rendered (19) 25,077 55,944 d 2) Other liabilities(19) 11,148 8,599 EBIT (in million ) 8295 156 Deferred taxes(13)3,5171,847 Earnings before taxes (in million d )8391 135 1,198,989 986,288 Earnings after taxes (net income) (in million d )536695 Current liabilities Provisions(18) 299,525246,960 Financialliabilities(19) 339,234141,791 Liabilities from trade payables and payables for services rendered (19) 1,922,399 1,165,266 Other liabilities(19) 461,310310,696 3,022,4681,864,713 5,126,927 3,653,257 1) Divergent from the 2005certified consolidated financial statement of FIMAG Finanz Industrie Management AG (see Page 52 ff) the planned 2006 1) Earnings beforedepreciation, deducting financing costs and taxes merger of FIMAG Finanz Industrie Management AG withSTRABAG SE was already taken intoaccount in the determination of minority interest. 2)Earnings beforededucting financing costs and taxes CONTENTS MANAGEMENT 2 FOREWORD BY THE BOARD OF MANAGEMENT 4 SUPERVISORYBOARD 6 SUPERVISORYBOARD REPORT 7 CORPORATE GOVERNANCE 8 MANAGEMENT REPORT Development of the Construction Industry10 Company Development14 Important Acquisitions15 TotalOutput and Order Volume 16 Investments 20 Finances21 Profit Situation 21 Employees23 Researchand Development25 EnvironmentalPolicies25 RiskReporting 26 Outlook 28 Significant Events after BalanceSheet Date 30 GROUP STRUCTURE 31 SEGMENT REPORT RoadConstruction 32 Building Construction 38 Other Construction Fields44 STRABAG KUNSTFORUM 50 2005FINANCIAL STATEMENT Consolidated Profit and Loss Account54 Consolidated BalanceSheet55 Consolidated CashFlow Statement56 Development of GroupEquity 57 Statement of Recognized Income and Expense57 Consolidated Statement of Changes in Fixed Assets 58 STRABAG SE,its subsidiaries and associated companies canbefound at NOTES 60 over 500 locations across Europe. STRABAG SE is activeinternationally in UNQUALIFIED AUDIT CERTIFICATE 103 the project development business. ADDRESSES 104 Agreat number of the projects contained in this financial report werecarried out in specialpartnerships. Many thanks toall our partners. MANAGEMENT BOARD OF MANAGEMENT Dr. Hans Peter Prof.Dr. Ing.e.h.Manfred Ing.Fritz Dr. Thomas Dipl.-Ing.Nematollah Dipl.-Ing.Roland Mag.Wolfgang Mag.Hannes HASELSTEINER NUSSBAUMER OBERLERCHNER BIRTEL FARROKHNIA JURECKA MERKINGER TRUNTSCHNIG Chairman of the Board Vice-Chairman Vice-Chairman Technical Responsibilities Technical Responsibilities Commercial Technical Responsibilities Technical Responsibilities Commercial Commercial Building Construction and Road Construction Responsibilities Building Construction and Services Responsibilities Responsibilities Civil Engineering Building Construction and Civil Engineering Road Construction Services and Service Civil Engineering Operations 2 I STRABAG SE - 2005STRABAG SE - 2005 I 3 MANAGEMENT FOREWORD BY THE BOARD OF MANAGEMENT We are Number 1 in four of our regional core markets: Our long-term strategy of risk diversification truly Germany,Austria,Poland and Hungary.We are among came to fruition in the 2005 financial results. Profits the Top 3 in Switzerland, the Benelux countries, the are good in all segments and in all core markets. Czech Republic and Slovakia, and in Croatia, Romania The members of our management distinguish and Bulgaria we are among the Top 5. In Moscow we themselves through their many years of service to the are Number 1 in Building Construction. company. As a result, the entire management serves as a backbone for further growth and the long-term We have also been able to post great successes in positive development of the company. the direct export business outside of our core markets. Projects include the construction over the next four In preparation of our planned public offering, we years of a 14.4-metre-wide power plant tunnel near have changed our name from BAUHOLDING Niagara Falls for e 440 m. In Innsbruck, the con- STRABAG SE to STRABAG SE. The next step will be struction works on the Hungerburgbahn are sure to the merger with FIMAG Finanz Industrie Management result in an architectonic marvel. STRABAG has also AG to make STRABAG SE the new parent of the been chosen to operate the funicular railway upon its entire group. completion. In the first quarter of 2006 we were awarded our largest project in company history – the In the year under report, the STRABAG Group grew construction of a four-lane highway in Italy’s Marche to become one of the five largest construction groups region. The project, which will be carried out jointly in Europe. We particularly thank our clients and our with partner companies, is worth a total of e 1.15 bn. employees for this achievement. Dear shareholders, associates and friends of STRABAG SE Board of ManagementVienna, May 2006 With this annual report, we are pleased to be able Surely the most important event last business year to present our most successful year in the history was the takeover of significant portions of the of the company. insolvent Walter-Bau Group and Ed. Züblin AG. These acquisitions gave us not only an additional With revenue of e 9.3 bn and a profit before tax 9,000 employees and an added e 2.3 bn in revenue of e 135 m, a new dimension has opened up for but also allowed us to strengthen the group with three STRABAG. Output has nearly doubled in the past first-rate brand names: DYWIDAG, three years and in 2005 our growth reached 56.2%, HEILIT+WOERNER and ZÜBLIN. Their integration is with 17.6% due to organic growth and the rest largely complete so that we can now expect rising HANS PETER HASELSTEINER MANFRED NUSSBAUMER FRITZ OBERLERCHNER THOMAS BIRTEL through acquisitions. synergies from these highly important acquisitions in the next few years. We are particularly proud of the fact that our profit before tax grew by 48.4% despite the acquisitions and the related costs of integrating these acquisitions. In 2005, we provided jobs for over 44,500 employees. NEMATOLLAH FARROKHNIA ROLAND JURECKA WOLFGANG MERKINGER HANNES TRUNTSCHNIG 4 I STRABAG SE - 2005 STRABAG SE - 2005 l 5 SUPERVISORYBOARD SUPERVISORY BOARD REPORT Dr. Christian KONRAD Chairman The financial statement and management report of FIMAG Finanz Industrie Management AG for the Komm.Rat Herbert SCHIMETSCHEK Vice-Chairman 2005 business year have been audited by T & A Wirtschaftsprüfungs- und Steuerberatungs- gesellschaft mbH of Vienna. Mag.arch.Julius EBERHARDT Pursuant to the final result of the audit, the auditors Mag.Erwin HAMESEDER had no cause for complaint and awarded their unqualified stamp of confirmation on 26 April 2006. Dr. Gottfried WANITSCHEK The consolidated financial statement and the group Dr.