Yearly Financial Report 2018 CONTENT CONSOLIDATED FINANCIAL STATEMENTS 2018 .................................................. 3 CONSOLIDATED FINANCIAL STATEMENTS AS AT 31 DECEMBER 2018 ............................................ 4 Consolidated income statement ..................................................................................................... 4 Statement of total comprehensive income .................................................................................... 4 Consolidated balance sheet ........................................................................................................... 5 Consolidated cash flow statement ................................................................................................ 6 Statement of changes in equity ...................................................................................................... 7 Consolidated statement of fixed assets as at 31 December 2018 ................................................. 8 Consolidated statement of fixed assets as at 31 December 2017 ................................................. 8 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ............................................................ 10 Basic principles ............................................................................................................................ 10 Changes in accounting policies .................................................................................................... 10 Consolidation ................................................................................................................................ 16 Scope of consolidation ................................................................................................................. 18 Currency translation ...................................................................................................................... 22 Consolidated companies and associates ..................................................................................... 23 Accounting policies ....................................................................................................................... 30 Notes on the items of the consolidated income statement .......................................................... 44 Notes on the items in the consolidated balance sheet ................................................................. 49 Notes on finacial instruments ....................................................................................................... 65 Segment report ............................................................................................................................. 74 Other Notes ................................................................................................................................... 76 List of subsidiaries, equity-accounted investments and investee companies as at 31 December 2018 ............................................................................................................ 80 GROUP MANAGEMENT REPORT ...................................................................................................... 95 Important events ........................................................................................................................... 95 Country report ............................................................................................................................. 103 Order backlog ............................................................................................................................. 119 Financial performance ................................................................................................................ 120 Financial position and cash flows ............................................................................................... 122 Capital expenditures ................................................................................................................... 124 Financing/Treasury ...................................................................................................................... 124 Segment report ........................................................................................................................... 127 Risk management ....................................................................................................................... 135 Research and development ........................................................................................................ 141 Website Corporate Governance Report...................................................................................... 142 Disclosures pursuant to Sec 243a Para 1 UGB .......................................................................... 142 Related parties ............................................................................................................................ 143 Outlook ....................................................................................................................................... 144 Events after the reporting period ................................................................................................ 144 AUDITOR’S REPORT ....................................................................................................................... 145 INDIVIDUAL FINANCIAL STATEMENTS 2018 .....................................................150 STATEMENT OF ALL LEGAL REPRESENTATIVES ..............................................223 Consolidated Financial Statements 2018 4 CONSOLIDATED FINANCIAL STATEMENTS AS AT 31 DECEMBER 2018 Consolidated income statement T€ Notes 2018 2017 Revenue (1) 15,221,832 13,508,725 Changes in inventories -66,328 -61,656 Own work capitalised 33,268 13,570 Other operating income (2) 222,977 282,992 Construction materials, consumables and services used (3) -10,125,771 -8,839,874 Employee benefits expenses (4) -3,618,941 -3,367,173 Other operating expenses (5) -854,892 -842,790 Share of profit or loss of equity-accounted investments (6) 83,176 123,985 Net income from investments (7) 57,282 16,800 EBITDA 952,603 834,579 Depreciation and amortisation expense (8) -394,388 -386,222 EBIT 558,215 448,357 Interest and similar income 38,617 46,900 Interest expense and similar charges -66,049 -74,048 Net interest income (9) -27,432 -27,148 EBT 530,783 421,209 Income tax expense (10) -167,999 -128,845 Net income 362,784 292,364 attributable to: non-controlling interests 9,249 13,451 attributable to: equity holders of the parent company 353,535 278,913 Earnings per share (€) (11) 3.45 2.72 Statement of total comprehensive income T€ Notes 2018 2017 Net income 362,784 292,364 Differences arising from currency translation -2,205 12,275 Recycling of differences arising from currency translation 779 78 Change of interest rate swaps -3,902 -476 Recycling of interest rate swaps 12,896 22,849 Change in cost-of-hedging reserves 72 0 Change in fair value of currency hedging instruments -10,600 0 Change in fair value of financial instruments under IAS 39 0 238 Deferred taxes on neutral change in equity (10) 3,349 -2,632 Other income from equity-accounted investments -3,174 1,048 Total of items which are later recognised (“recycled”) in the income statement -2,785 33,380 Change in actuarial gains or losses 1,478 493 Deferred taxes on neutral change in equity (10) 1,285 252 Other income from equity-accounted investments 78 -25 Total of items which are not later recognised (“recycled”) in the income statement 2,841 720 Other income 56 34,100 Total comprehensive income 362,840 326,464 attributable to: non-controlling interests 9,389 14,137 attributable to: equity holders of the parent company 353,451 312,327 CONSOLIDATED FINANCIAL STATEMENTS AS AT 31 DECEMBER 2018 5 Consolidated balance sheet T€ Notes 31.12.2018 31.12.2017 Intangible assets (12) 493,407 498,827 Rights from concession arrangements (13) 601,080 0 Property, plant and equipment (14) 2,144,015 1,942,276 Equity-accounted investments (15) 378,617 350,013 Other investments (16) 185,297 182,698 Receivables from concession arrangements (19) 630,262 662,311 Other financial assets (22) 250,137 270,648 Deferred taxes (17) 146,940 188,968 Non-current assets 4,829,755 4,095,741 Inventories (18) 890,157 1,137,805 Receivables from concession arrangements (19) 36,268 33,724 Contract assets (20) 1,282,907 0 Trade receivables (21) 1,735,944 2,532,919 Non-financial assets 127,008 122,948 Income tax receivables 40,200 63,879 Other financial assets (22) 293,381 276,660 Cash and cash equivalents (23) 2,385,828 2,790,447 Current assets 6,791,693 6,958,382 Assets 11,621,448 11,054,123 Share capital 110,000 110,000 Capital reserves 2,315,384 2,315,384 Retained earnings and other reserves 1,195,301 945,089 Non-controlling interests 33,088 27,246 Total equity (24) 3,653,773 3,397,719 Provisions (25) 1,116,592 1,160,536 Financial liabilities1 (26) 1,087,621 882,879 Other financial liabilities (28) 78,755 77,716 Deferred taxes (17) 97,059 24,230 Non-current liabilities 2,380,027 2,145,361 Provisions (25) 734,481 747,318 Financial liabilities2 (26) 275,709 411,098 Contract liabilities (20) 974,566 0 Trade payables (27) 2,615,255 3,402,367 Non-financial liabilities 520,227 476,593 Income tax liabilities 74,609 78,424 Other financial liabilities (28) 392,801 395,243 Current liabilities 5,587,648 5,511,043 Equity and liabilities 11,621,448 11,054,123 1 Thereof T€ 665,861 concerning non-recourse