TRUst opens DOORS TO THE FUTURE. Annual Report 2009 KEY figures Trust, at a glance. Key profit and loss figures in EUR million 2009 Change in % 2008 2007 Annual construction output 275.4 –10.4 307.3 263.0 of which: international in % 87.9 +2.3PP 85.6 63.5 Earnings before interest and taxes (EBIT) 24.4 –31.9 35.8 32.2 Earnings before taxes (EBT) 14.2 –15.6 16.8 16.6 Profit after tax 14.1 –13.0 16.2 12.0 Retained profit 3.0 –9.1 3.3 3.3 Return on capital employed % 4.7 –2.2PP 6.9 6.8 Return onSind equity % 11.0 separate–3.0PP 14.0 11.4 Dateien Balance sheet figures in EUR million 2009 Change in % 2008 2007 Total assets 485.7 –13.2 559.4 477.9 Equity ratio as % of total assets as at 31.12. 27.3 +5.3PP 22.0 22.7 Investments 18.2 –58.8 44.2 93.0 Amortisation and depreciation 3.6 28.6 2.8 2.4 Stock market figures 2009 Change in % 2008 2007 Earnings per share in EUR 4.71 –12.1 5.36 4.00 Dividend per share in EUR 1) 1.00 –9.1 1.10 1.10 Pay-out ratio in % 21.2 3.9 20.4 27.5 1) Proposal to general meeting of shareholders KEY figures Reconciliation of total output (annual construction figure also includes the proportional revenues from joint ven- output) of the Group to revenues in consolidated in- tures as well as from subsidiaries consolidated using the equity come statement for 2009 fiscal year method and other subsidiaries. In addition, it includes changes in inventories relating to own projects as well as own work At UBM we define annual construction output as being the capitalised in the reporting year. The following table shows most significant factor in describing revenues. Unlike the total the calculation of the annual construction output for the fiscal Sind separateoutput included in the consolidatedDateien income statement, this years 2007 to 2009. Revenues in T E 2009 2008 2007 Total output of Group 275,414 307,342 262,960 Revenue in consolidated income statement 197,634 216,399 133,655 Difference 77,780 90,943 129,305 Revenues from real estate acquisitions 19,525 34,770 3,690 Changes in inventory of own projects in prior year –26 16,089 16,372 Revenues from participations consolidated using equity method or which are of minor importance 48,386 39,868 108,845 Joint ventures 9,819 – – Own work capitalised 76 216 398 77,780 90,943 129,305 SUCCEss UBM-Group 01 factors n Extensive experience and thus market and sector know-how in CEE since the 1990s n Outstanding track record with large-scale projects in CEE n Recognised quality of buildings at attractive prices n UBM deploys the entire value-added chain in real estate projects to generate potential for increasing value n Risks are mitigated by means of regional and sector diversification of projects This makes UBM an all-round service provider in the field of real estate development. History of company 1873 – 1915 1916 – 1990 1991 – 2009 Market entries n Founded: 3 March 1873 n Withdrawal from brick n Consolidation of n 1992: Czech Republic production (business activities in fields of n Second largest brick- sold to present-day project development n 1993: Poland maker in the Austrian Wienerberger Baustoff and project management n 1994: Hungary monarchy industrie AG) n Internationalisation n 1999: Germany n 10 brick factories with over 2,000 employees n Focus on real estate of UBM development in Austria, n 2001: France n Market share of roughly primarily metropolitan n 1997: Name changed to n 2004: Slovakia 30% on the Viennese Vienna UBM Realitätenentwick- brick market lung AG n 2005: Switzerland n 1912: Porr acquires n 2006: Bulgaria, Croatia, majority shareholding Romania, Ukraine in UBM n 2007: Russia TABLE OF contents 01 / Our Company 05 Foreword from the Managing Board 06 Statutory bodies of the company 07 Company profile 08 Strategy and success factors 11 UBM shares 13 Corporate Governance Report 14 Corporate calendar 17 Our projects – international 34 Our projects – national 02 / Business Report 40 Business developments, results and position of company 49 Planned development and risks of the company 03 / Annual financial statements of UBM AG 56 Balance sheet 58 Income statement 60 Non-current assets 62 2009 notes 70 Responsibility statement 04 / Consolidated financial statements of UBM Group 73 Consolidated statement of comprehensive income 73 Consolidated income statement 74 Consolidated balance sheet 75 Consolidated cash flow 76 Changes in consolidated equity 78 Notes to consolidated financial statements 2009 100 Notes to segment reporting 108 Equity investments 111 Responsibility statement 113 Supervisory Board report 114 Appropriation of profits InhaltsverzeichnisTable of contents 0303 01 / Our Company 05 Foreword from the Managing Board 06 Statutory bodies of the company 07 Company profile 08 Strategy and success factors 11 UBM shares 13 Corporate Governance Report 14 Corporate calendar 17 Our projects – international 34 Our projects – national 03 / Annual financial statements of UBM AG 56 Balance sheet 58 Income statement 60 Non-current assets 62 2009 notes 70 Responsibility statement FOREword VorwortForeword 05 Dear Reader, Given the adverse impacts of the economic crisis, 2009 was an In the coming years we intend to exploit the opportunities altogether successful year for UBM. Although it is still prema- presented by the recovering real estate markets. We endeavour ture to talk of an upswing – we are definitely witnessing initial to develop properties on the office market that are both cost- signs of a slow recovery. In 2009 the UBM Group achieved a effective for tenants and have excellent transport links. In the total output of €275.4 million. This figure is down by €31.9 hotel sector the emphasis is placed on cost-conscious business million in comparison to the previous year, which is attributa- travellers and tourists. In terms of residential buildings we ble to the lower volume of project sales. This is why it pleases target the medium to upper segment of customers. Throughout us all the more to have an EBT figure (earnings before tax) the countries of Central and Eastern Europe there is massive of €14.2 million, which once again is one of the best annual potential on the market, particularly with commercial real results in the history of the company. The main contributors to estate (retail parks). For 2010 this means we shall be focusing this result in 2009 were the countries of Germany and Poland, on Poland (completion of hotel project in Katowice, completi- similarly to the previous year. The key factors in Germany first on of first phase of Poleczki Business Park, launch of residen- and foremost were the sale of an office building, a hotel and a tial projects in Wroclaw and Krakow as well as retail parks in retail park in Munich, construction work on a hotel in Berlin Gdynia, Lublin and Sosnowitz) and on Germany (residential and sales of apartments in Munich. In Poland the success was project in Schwabing and Cosimastraße project in Munich). We driven by construction work on the Poleczki Park project in also have projects in the pipeline on our key markets which we Warsaw, hotel projects in Lodz, Krakow and Katowice, as well can implement depending on how the market climate chan- as the sale of a hotel in Krakow. But many other projects stood ges. We would like to take this opportunity to thank you, our out as well, in addition to these building projects. The Salzburg shareholders, business partners and staff, for your trust, your Lehen project deserves a special mention after winning the loyalty and your cooperation. We hope that next year we will „European Steel Design Award“. once again be able to conquer the great challenges facing UBM In terms of our regional profile we stepped up our activities in together, and continue down our successful path. Poland just at the right time, as Poland was the only country in the European Economic Area to generate positive economic growth of 1.8%. Karl Bier Peter Maitz Heribert Smolé Martin Löcker (Chairman) Statutory bodies OF THE COMPANY Managing Board Karl Bier Peter Maitz Heribert Smolé Martin Löcker Chairman of the Managing Board Degree in law, tax specialist; Studied construction engi- Joined the Porr Group in Studied industrial enginee- general manager of several neering in Graz; joined Porr 1973, head of department for ring and construction at project companies, member in 1972, management of many commercial administration of the Technical University in of UBM AG Managing Board projects in Austria, Hungary, investments from 1985; joint Graz; postgraduate studies in since 1992. Iran and Algeria 1972 to 1986. signatory (Gesamtprokurist) real estate economics at the Responsible for the develop- Technical manager of various of UBM AG from1990, general European Business School ment and expansion of project project companies in Austria manager of various companies in Munich; joined the Porr development in Austria as well and abroad since 1985. Mem- of UBM Group. Member of Group in 2001. Responsible as in the Czech Republic (since ber of Managing Board at UBM Managing Board at UBM AG for the technical management 1993), Hungary (since 1994), AG since 1992. since 1997. of commercial real estate in Poland (since 1995), Germany Germany, managing director and Slovakia (since 2003) as of project companies abroad. well as Croatia (since 2005) and Romania (since 2006). UnternehmensprofilCompany 0707 Supervisory Board Horst Pöchhacker, Chairman Dr. Peter Weber, Deputy-Chairman Dr. Bruno Ettenauer Wolfhard Fromwald Wolfgang Hesoun Dr.