ALPINE Jahresfinanzbericht2 2010 En

TO BE SUCCESSFUL YOU HAVE TO ABLE TO STAND SOME rOUgH CLiMATE. Annual Financial Report of ALPINE Holding GmbH for the Year 2010

* Annual average

kEY FigUrES in TEUR 2004 2005 2006 2007 2008 2009 2010

ConstruCtion output 1,911,587 2,009,724 2,266,472 2,595,002 3,506,385 3,364,920 3,201,142

in Austria 1,221,075 1,251,038 1,408,785 1,472,057 1,805,410 1,601,695 1,521,038

in Germany 412,395 365,436 305,532 371,943 577,524 661,580 695,843

in remaining countries abroad 278,117 393,250 552,155 751,002 1,123,451 1,101,645 984,261

Orders in hand 1,645,166 2,052,622 2,175,574 3,054,091 3,099,065 3,371,801 3,322,657

Operating income 64,433 54,087 20,888 67,441 105,543 56,859 47,914

Profit before tax 43,089 49,759 8,371 44,457 55,095 22,617 23,673

Profit after tax 33,882 36,325 3,236 30,557 36,164 16,428 17,199

Operating cash flow 83,310 96,186 65,698 121,624 174,514 127,510 100,435

Total equity and liabilities 947,085 1,151,169 1,408,311 1,757,704 2,134,541 2,064,350 2,301,039

Equity 219,446 248,177 256,801 304,227 377,571 397,197 411,704

Equity ratio 23.2% 21.6% 18.2% 17.3% 17.7% 19.2% 17.9%

Return on sales (ROS) 3.4% 2.7% 0.9% 2.6% 3.0% 1.7% 1.5%

Return on equity (ROE) 21.3% 21.3% 3.3% 15.8% 16.2% 5.8% 5.9%

EmployEEs * 8,146 10,750 12,748 13,648 15,530 15,234 15,057

in Austria 6,445 6,301 7,174 7,321 7,873 7,588 7,670

in Germany 825 1,065 1,248 1,542 1,893 2,094 2,431

in remaining countries abroad 876 3,384 4,326 4,785 5,764 5,552 4,955

Construction output / employee 235 187 178 190 226 221 213

grOUP STrUCTUrE Simplified presentation

Alpine Holding GmbH

Hoch- & tiefbau BeteiligungsgmbH

AlpinE Bau GmbH

subsidiaries and holdings

D. Aluta-oltyan FCC Construcción s.A.

83 %17 %

94 %

81.544 %

6 %

17.632 %

sincler s.A. 0.824 %

in: Albania, Bosnia-Herzegovina, Bulgaria, China, Germany,United Kingdom, India, Italy, Croatia, Luxembourg, Macedonia, Montenegro, Netherlands, Austria, Poland, Romania, Russia, Switzerland, Serbia, Slovakia,Slovenia, Czech Republic, Ukraine, Hungary

03

007 Group Management Report 2010 ALPINE Group031 Consolidated Financial Statements for the Year 2010 ALPINE Group037 Notes to the Consolidated Financial Statements for the Year 2010 ALPINE Group085 Statement of All Legal Representatives ALPINE Group 086 Audit Opinion ALPINE Group088 List of Investments

093 Management Report for the Fiscal Year 2010 ALPINE Holding GmbH099 Annual financial statements as per 31 December 2010 ALPINE Holding GmbH103 Notes for the Financial Year 2010 ALPINE Holding GmbH109 Statement of all Legal Representatives ALPINE Holding GmbH110 Audit Opinion ALPINE Holding GmbH

112 Imprint

CONTENT

1 grOUP MANAgEMENT rEPOrT 2010ALPiNE grOUP

1 DEVELOPMENT OF THE CONSTrUCTiON iNDUSTrY iN 2011 – SELECTED rEgiONS AND AUSTriA

The construction industry is expected to gradually and globally resume a growth path in 2011. In 2011, the building sector expects a global 4.9 % increase over the previous year in gross value added after it had suffered from a severe performance decline during the economic crisis 2008/2009 and only had a very conservative growth in 2010. However, the industry’s growth dynamic will show quite differently in individual regions - particularly in individual countries. For instance, construction volumes in 2011 will mainly be influenced by governmental budget consolidation measures, particularly in Europe, and con-sequential cuts in public construction investments. Another decisive factor will be whether the private sector in countries severely affected by the economic crisis recovers and returns to making long-term investments.

In Europe, differentiation is necessary between old and new EU countries. While a 6.6 % growth of the construction industry is expected in 2011 in Central Eastern European EU countries (measured by gross value added), Western Europe experts (EU 15) are more skeptical: They expect a mere 1.0 % increase over 2010. The comparatively lower rate of growth in Western Europe is reflected in the forecasts for the industry’s development on ALPINE home markets: In 2011, the most significant increase in construc-tion volume is expected for Germany at 1.3 % and the increase in Switzerland and Austria will most likely be at 1.1 % or 0.7 % respectively (always compared with the previous year).

To a large extent the predicted development in Poland is responsible for the fact that the 2011 Central Eastern European construction industry is expected to grow faster than its West European counterpart: In Poland, the construction output is expected to grow at 12.7 % far beyond the Central Eastern Euro-pean average (compared to the previous year) aided by stable domestic demand and preparations for the European Soccer Championship 2012. In 2011, the construction industry will not grow in all Central Eastern Europe countries such as the Czech Republic, where a decrease of 3.2 % is expected.

Even though no exact forecasts are available yet, 2011 will be a difficult year for the construction indus-try in Southeastern Europe. The construction volume in Southeastern Europe will rather decline or - at the best - remain stable due to declining governmental investments and a flagging private demand.

Particularly high 2011 growth rates in the building industry are expected for the Emerging Markets (par-ticularly for the BRIC countries): Compared with 2010, gross value added in the construction industry is expected to grow in India by 11.8 %, in Russia by 9.5 % and in China by 9.4 %. 2011 will hold many challenges for the Austrian construction industry. Due to a tight budget, the gov-ernment is expected to award contracts very conservatively. Whether private construction investment projects will be able to compensate a fall in demand on the part of national, regional and local govern-ments depends on the macroeconomic development in Austria. For 2011, Euroconstruct experts expect an increase of the construction volume in Austria versus 2010 by 0.7 %.

2 gENErAL ECONOMiC ENVirONMENT iN OUr MAjOr MArkETS

rECOVErY FrOM THE ECONOMiC CriSiS

In 2010, the economic performance of more or less all countries moved back into a positive growth range. Of those, countries such as Austria, Germany or Poland show very pleasing growth rates.

Currently, many countries pursue an economy drive to consolidate their budgets concurrent with ending governmental economic recovery measures initiated in 2009 and 2010. In 2011 and subsequent years, a decline is expected in the infrastructure sector as it depends on public orders. In this, Poland is an exception because of measures taken for the European Soccer Championship 2012. Private commercial and industrial construction investments will partially compensate this decline.

This new growth will also increase prices, driven by energy and raw materials. Analysts expect the current low interest level to be raised only once the national debt crisis has been mastered in some eurozone countries.

AUSTriA

Austria has quickly recovered from the crisis with an economic growth of 1.9 % in 2010. The growth prospect for 2011 and beyond is at or slightly below 2 %. Inflation also picks up again while the increase is more pronounced in building prices. Austria is well positioned in the eurozone with moderate national debts and a national budget for 2011 that may, depending on GDP growth, even meet the Maastrich limit. As a consequence, the Austrian government retains a certain room for investments despite the austerity package. Extension plans for railways (ÖBB) and roads (ASFINAG) are currently being evaluated. A delay or cancellation of larger projects would have direct repercussions for the Austrian infrastructure industry. Investment project are also immediately affected by increasing municipal indebtedness. A slight decrease in transport infrastructure construction of up to -0.5 % is forecast for the coming years fol-lowing a 3 % decrease in this area in 2010. At the end of the third quarter, the volume of orders for the entire construction division was about 8 % below the previous-year value while civil engineering was particularly badly affected with an order volume of -15.7 %.

At the onset of the crisis, non-residential building construction has suffered pro-cyclically from severe market breaks. However, as the economic situation improves, an increase in investments from the private sector is expected from 2011 onward, e.g. industrial buildings and warehouses. The health and education sector also offers opportunities. The forecast for general building construction is +1.0 % and for non-residential construction +2.3 %.

At the beginning of 2010 and after a construction period of only 37 months, we have completed the first Austrian road construction PPP project (Project Y, PPP Eastern Region Package 1) in the North of Vienna. The project was handled by the Bonaventura Consortium, with ALPINE having an equity interest of 44.4 %. It is valid for 30 years.

The new Danube Bridge Traismauer connects the S33 in the South to the S5 in the North. By the end of October 2010, the 1,129 meter long bridge was opened for traffic. By mid 2011, construction works will be fully completed.

Group ManaGeMent report 009

In the first half-year, we have completed the contract for the construction of a new harbour gate includ-ing pump station at the harbour Freudenau.

The project BEG H3 Stans and the reconstruction of the railway station Matzleinsdorf I and II have been completed.

The complete overhaul of the A1 between Regau – Seewalchen has been completed and Auhof – Wolfsgraben has been completed in October 2010.

In November, TAUERN SPA Zell am See – Kaprun – has been completed including a hotel and the Spa World.

In December, the Mulitversum Schwechat, a new development of a multifunctional building complex, has been completed.

We are involved as a partner in the Unterinntaltrasse; we construct the BEG original equipment LOT A1 Kundl/Radfeld-Baumkirchen and the BEG H1 branch line of the Brenner railway line Kundl-Radfeld.

At the beginning of this year, construction works for the 5.5 km long Bosruck Tunnel began while com-pletion and commissioning will occur in 2013.

Currently, the project Central Railway Station Vienna is the most important infrastructure measure of the Austrian capital and covers a total area of 109 ha (270 acres). Significant parts are constructed as part of a consortium on the area of the former Southern Railway Station. A completely new city district will be developed in addition to an ultra-modern railway station and an important junction of the Trans-European railroad network. In December 2012, this transport depot will see its partial commissioning. The entire project is to be completed by 2015.

We have newly acquired the construction project harbour gate Albern Section 2 shore renaturalisation and the landscaped lake Aspern.

In September, ALPINE has been appointed as full service general contractor for the construction of the new Salzburg convention and exhibition centre and will construct a multifunctional hall to be used for trade fairs, exhibitions and large events. The main construction period will be only seven months.

As part of a consortium (annex and modification) ALPINE constructs the regional hospital Mistelbach. The peculiarity of this project is that the entire new building will be constructed at a hillside situation adjacent to existing buildings while maintaining all hospital functions. The new building will be handed over at the beginning of 2015. Modifications are part of the second construction phase. The entire construction output is expected to be completed by mid 2017.

ALPINE is the full service general contractor for the “Niederösterreich Arena” in St. Pölten and thus constructs the most modern single-tier stadium in all of Austria. This monofunctional earth wall stadium with a circular wooden roof structure will feature modern architecture. Construction began at the end of January 2011 and will be completed by summer 2012.

gErMANY

In 2010, Germany has achieved the highest economic growth since the reunification with a plus of 3.6 %. As Germany depends on exports and thus on the development of world economics a normalised GDP growth of 2 % is expected for the coming years. Economic-stimulus-package measures also end as part of budget consolidation measures. From 2011 through 2014, Germany intends to save a total of

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80 billion Euro. In other words, public civil engineering reported positive growth rates in 2009 and 2010 because of economic stimulus packages but expects a slight decrease in the coming years of about 1 % to 1.5 % (traffic infrastructure). In contrast, the building construction sector offers opportunities to compensate a decrease in civil engineering. Residential construction deserves special mention with a 9.5 % increase in orders for 2010. In the coming years, the overall construction industry in Germany is expected to once again reside in the positive growth range.

ALPINE Bau Deutschland AG also benefits from the noticeable recovery; it is the leading partner in a consortium that performs extensive shell construction and tunnelling works for the new construction of a metropolitan railway tunnel in Karlsruhe. Other partners in this consortium are the ALPINE Group subsidiaries ALPINE BeMo Tunnelling and Grund- und Sonderbau as well as FCC Construcción. The com-pletion is planned for 2016.

The City Tunnel Leipzig was completed by the end of 2010 and runs under the centre of the exhibition centre from the railway station Bayerischer Bahnhof to the central railway station.

In 2010, several hydraulic engineering projects were undertaken such as the extension of the Rhine-Herne-Channel or dredging works at the Köhlfleet Harbour in Hamburg.

We participate in the creation of a new large-scale airport in Berlin: In 2010, we have performed the building site management for the airport access. As part of consortia we have constructed airport termi-nal buildings and performed special foundation works.

In Berlin, we have constructed the 118 m high building “Zoofenster” as a turnkey project. The construc-tion of the residential and office building “Kö-Blick” in Düsseldorf was also started in 2010.

Works for the second largest railway bridge in Germany across the Unstrut Valley and the new construc-tion of the hybrid cooling tower at the power station Moorburg are in full swing.

We will also construct the new Kaiser Wilhelm Tunnel slanted for completion by the end of 2011 along the railway line between Koblenz and Perl. These projects demonstrate our acknowledged expertise in tunnelling.

SOUTHEASTErN EUrOPE

BULgAriA

After a slump in 2009, the Bulgarian economy was able to settle at zero growth in 2010. This is mainly due to the boom in the exporting industry that compensated a weak domestic demand. Positive eco-nomic growth can be expected again from 2011 on.

In 2010 and concurrent with the general economic development, the construction industry reported a slight plus of 0.7 %. This will continue in 2011 thanks to the continuation of several transportation and infrastructure projects. An increase of growth rates is expected in 2012.

Despite the difficult environment, the power station Tsankov Kamak (in the Rhodope Mountains at the border to Greece) – one of the largest hydropower stations in Europe – was completed by the end of 2010.

We expect to obtain future contracts in the further development of hydropower.

Group ManaGeMent report

In 2010, we have turned over turnkey sewage treatment plants in the cities of Bourgas Meden Rudnik, Sevlievo and Popovo.

In the city of Bourgas, 13.5 km of water supply mains and a 6.5 km sewer network with pump station were turned over to the Ministry of Construction and the commune.

grEECE

In 2010, the Greek economy was also affected by a severe GDP decline. Rigorous saving measures and a reduction of public investments had significant effects on the country’s macroeconomic development.

The construction industry was an inevitable part of this negative development and was significantly retrogressive in 2009. Due to the lack of economic recovery and the rigorous consolidation measures taken by the Greek government, this trend continued in 2010 but with a little less intensity. Thus the construction industry again reported a significant decline in 2010. According to forecasts, the first signs of recovery are expected to manifest only in the course of the coming years.

CrOATiA

Croatia was unable to halt the 2010 economic downtrend and had to accept a negative growth of -1.5 %. However, completion of EU accession talks expected for 2011 are believed to provide Croatia with an incentive for an additional investment cycle.

Not unlike the overall economy, the 2010 Croatian construction industry reported a decline of -4.7 % and did not show any signs of recovery for either building construction or civil engineering. Planned governmental investments in the infrastructure and energy sector are meant to stimulate the stagnant industry and give raise to positive forecasts for 2011.

The focus of Alpine clearly lies in the scope of infrastructures. For instance, we are building the junction from Velika Gorica to Busevec and the motorway from Zagreb to Sisak. We are also active in Rijeka where we are building the new shopping centre.

rOMANiA

The stringent economy drive by the Romanian government and a consequential worsening of domestic demand resulted in 2010 in a continuation of the economic decline at -1.9 %. A stabilisation is expected for 2011 due to a strengthening of the export industry and a slow increase in domestic demand.

In 2010, a weak overall economic situation in Romania also resulted in a weak performance of the con-struction industry; both building construction and civil engineering were retrogressive. The industry’s outlook is more optimistic and the infrastructure sector in particular will benefit from the government’s and the EU’s investment plans.

The East European OMV centre Petrom City was handed over in August 2010. This large-scale project was an impressive demonstration of ALPINE’s competence in international building construction and as a general contractor in construction.

In July 2010, the landfill project Titu Aninoasa was completed.

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Work is still in progress for the motorway section “Bypass Arad” (Design & Build Project).

During the first half-year, we were able to acquire a number of interesting contracts. For instance, ALPINE has won the contract for the construction of three controlled landfills in the district of Suceava, the construction of a sewage treatment plant in Hoghiz and finally, the construction of the stadium in Ploiesti.

The construction of a motorway section in the centre of Bucharest was also begun.

SErBiA

In 2010, the Serbian economy reported a moderate growth of 1.5 % over the previous year that was mainly caused by an increase in foreign demand. Expectations for 2011 are more robust as domestic demand will increase again due to an increase in investments and higher payments for public sector pensions and wages.

Serbia intends to invest first and foremost into the building industry that again had suffered from nega-tive growth in 2010. Positive effects for the industry are expected to come from planned infrastructure modernisations, subsidies for a crippled building construction sector and investments into the energy sector.

The currently longest bridge across the river Danube will be completed in 2011 - the 2.2 km long bridge at the city of Beska in Serbia.

The motorway system toward Bulgaria will be extended in Southern Serbia. ALPINE submitted the best offers for two out of three contract sections put out for tender. The respective contract was signed in April. The main parts of this contract are an about 5.8 km long bypass of the city of Dimitrovgrad as well as another 8.6 km long section up to the Bulgarian border. The contract section 1 concerns road con-struction of about 15 km length and contract section 2 concerns bridge construction with 7 bridges and a length between 50 and 500 m. The construction period is estimated at two years.

OTHEr BALkAN STATES (Albania, Bosnia and Herzegovina, Kosovo, Macedonia, Montenegro, Slovenia)

As a member of the eurozone, Slovenia had to deal with a crisis-related 7.8 % economic performance decrease but is currently in a moderate growth range again. The government plans savings in public spending to meet the Maastricht criteria. However, these savings are counteracted by EU fundings (e.g. cohesion funds).

In 2009 and 2010, the Slovenian building industry has severely shrunk. From 2012 on it may again set-tle at an annual growth rate from 4 % to 4.5 %. The focus will be on the extension of the railway system.

In 2010 and with the exception of Montenegro, the non-EU members Albania, Bosnia, Kosovo, Mac-edonia and Montenegro managed to move their countries back into the GDP growth range. However, forecasts for these countries indicate that the growth rates in the coming years will be from 3.9 % to 4.8 % and thus behind the years prior to the economic crisis.

The construction industry as set up in these countries depends rather strongly on large-scale projects in the infrastructure sector that are co-financed my multinational institutions like EU, EBRD, World Bank or EIB. A continuing high demand to catch up and the extension of the trans-European traffic routes provide medium-term potential. Another focus is on energy production through power station projects


in the thermal or hydropower sector. Another factor in this region is a gradual approach toward the Eu-ropean Union, first and foremost Montenegro and Macedonia which both have the status of a candidate country.

NOrTHEASTErN EUrOPE

POLAND

Even during the economic crisis, Poland had a positive economic growth - this development continued in 2010 as well with a plus of 3.4 %. A further increase in GDP growth is expected for 2011 because of an increase in private investment demand and a further recovery of consumption as well as an exchange rate development that is positive for exporters.

Extensive EU fundings, e.g. in preparation for the European Soccer Championship 2012, have particu-lar effects on the country’s construction industry in addition to macroeconomic effects. While the civil engineering sector in 2010 did not improve as originally expected due to a strong winter and the flood disaster in spring, above-average growth rates are still expected because of necessary infrastructure projects.

We have completed extensive rehabilitation works at the Hala Ludowa hall while preserving its “World Heritage Site” status.

ALPINE constructs three stadiums in Poland for the European Soccer Championship 2012 and in September turned over the newly designed stadium in Poznań on schedule. For the European Soccer Championship, ALPINE currently also constructs the National Stadium of Warsaw with approximately 55,000 seatings and the PGE Arena in Gdansk for approximately 44,000 visitors. Additionally, ALPINE constructed the MKS stadium in Cracovia in Krakow holding approximately 15,000 visitors. It was turned over in 2010.

Additionally, we have further interesting construction projects lined up. In Gdansk, for example, we are building the chemical faculty of the University of Gdansk.

In autumn 2007, ALPINE won the tender procedure for an 18.3 km A1 route segment in Poland. The construction was to complete by beginning of 2010. However, the construction could only begin with a delay of seven months in April 2008 as numerous explosives have been discovered on the construction site after awarding the contract which had to be removed first. An additional delay was caused by the fact that a central structure in this section, a customer-planned 450-m-long cable-stayed bridge, would have been severely in danger of collapse if built according to customer-provided plans. Both parties cancelled the contract. ALPINE has filed suit to cover the outstanding part of the capitalised costs. On the other hand, the customer has also filed a suit. In any case, three advisory opinions of well-known experts form a very good basis for an outcome favourable to ALPINE. ALPINE was again the winner in the new tender proceeding performed in the meantime. A competitor’s objection was rejected and on 1 Oct. 2010 the customer GDDKiA (Generaldirektion für Bundesstraßen und Autobahnen - Directorate General for Federal Roads and Motorways) and ALPINE signed the contract. The Motorway A1 road sec-tion has an overall length of 18.3 km and includes 32 bridge constructions; this is the section in Silesia between the junction Swierklany and the border crossing of Czech Republic. This road section is to be completed within a construction period of 18 months.

ALPINE, as the leader of a consortium, also won the construction of another significant road section, i.e. the construction of the 29 km long dual carriageway S5 between Poznań and Wroclaw including a bypass road.

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rUSSiA

The country’s economic development stabilised in 2010 because world trade has recovered and caused Russia’s exports to again be in a positive growth range and because private investments and consumer spending revived. This positive development is expected to continue throughout the current year, fore-casting a GDP growth of 4.3 %.

It is expected that the construction industry will stabilise in 2011 with the impetus towards expansion mainly found in the civil engineering sector. A significant factor currently stimulating the construction industry are investments necessary as part of preparations for the Winter Olympics 2014 in Sochi and the APEC summit in 2012.

We have created the necessary local structures to thoroughly cultivate the market. In this context, “OOO ALPINE” already won various contracts for Western European industrial customers.

Additionally, the Russian government is currently prioritising infrastructure projects related to the export of raw materials which is why high growth rates can be expected e.g. in pipe line and harbour en-gineering as well as in general traffic infrastructure. After a retrogressive development in infrastructure projects in the past years, growth is expected in this sector from 2011 on.

In January 2010, ALPINE founded a joint venture called “Alpine-RZDstroy GmbH” with RZDstroy, a sub-sidiary company of the Russian state railroad. A first success was the signing of a contract for prepara-tory works for the construction of tunnel 6 and 7 along the railway line from Sochi to Matsesta.

SLOVAkiA

Due to its economic openness, Slovakia strongly depends on world trade. Thanks to the global recovery and an increasing export demand, economic growth of 3.9 % was achieved in 2010 after a recessive development in the previous year. However, the country’s very high unemployment rate, when compared to the EU, will have a slowing effect on private consumption and thus on the overall economy. It is also expected that the government’s planned austerity policy will have a certain restraining effect. In spite of it all, an economic growth of 3.1 % is forecast for Slovakia in 2011.

The country’s construction industry was still marked by the crisis in 2010. A decrease in construction output of -6.3 % was recorded that was intensified by floods in large parts of the country in spring and summer. However, it is expected that in 2011 the construction industry will achieve a growth of 6 % through a stabilisation in building construction and high growth rates in civil engineering. In addition to governmental financing of several large-scale projects in the road and railway construction sector, the Slovakian government is also intent on better utilising available EU means to realise infrastructure projects.

So-called “Early Works” for four Motorway D1 sections in Slovakia have been completed by the end of Oc-tober. The customer gave up on the original D1 PPP Project with about 30 km motorway and 28 bridges between the villages Hričovské Podhradie and Dubná Skala – the contract was not renewed.

The railway of Slovakia - Železnice Slovenskej republiky (ZSR) – upgrades the railway line Nové Mesto nad Váhom - Púchov for speeds up to 160 km/h. This line is a part of the TEN-T network and the V. Euro-pean railway passageway. ALPINE, as part of a consortium, will upgrade a section of this line (section IV and V of this project) within this overall modernization.


The new gas and thermal power station Malzenice was constructed in the environmental engineering sector.

CzECH rEPUBLiC

In 2010, the Czech Republic became more dynamic again after it had suffered from a decline in eco-nomic performance and reported a positive GDP growth rate of 2.0 %. At this time it is hard to assess the consequences of planned governmental measures to reduce national debts while continued positive impulses are expected from private investments and particularly from export activities.

Cuts in public investments and revaluation of imminent construction projects planned as part of saving measures by the government newly elected in 2010 will mainly effect traffic infrastructure engineer-ing in the coming years. On the other hand, a more positive outlook exists for non-residential building construction which again expects an increase of 2.0 % from 2011 on after it had suffered severe crisis-related market breaks.

The Southern part of the Prager Ring was ceremonially opened in September. ALPINE constructed the 23 km long section as part of a consortium.

In the Czech Republic, the construction of the motorway D47, a significant infrastructure project in this country, is being handled as part of a consortium. The motorway runs from Ostrava to the Polish border and connects to the motorway A1 which is also being constructed by ALPINE. The overall length is circa 6 km.

HUNgArY

Hungary was severely hit by the global economic crisis, suffered a decrease of its economic performance in 2009 and only stabilised in 2010. In the coming years, a further economic recovery is expected that is driven by export, an increase in investment activities and by a slowly recovering domestic demand. Driven by the increasing pressure of high national debts, the newly elected government tries to reorgan-ise national finances through a series of consolidation measures.

The country’s construction industry continued its negative trend also in 2010 which was caused, among other things, by the slow progress of several large-scale projects. A reversal of this development is expected from 2011 on when EU funds are planned to be better utilised for public building construc-tion projects and transport infrastructure projects. In the coming years, the main driving force in the construction industry is expected to again be the civil engineering sector for both, the road and railway construction sector as well as the energy and water supply sector.

WESTErN AND NOrTHErN EUrOPE

LUxEMBOUrg

The macroeconomic development of Luxembourg shows a definite recovery trend after severe GDP slumps in 2009. This development was confirmed by solid growth in 2010 and is expected, according to forecasts, to continue at a similar level in the coming years. While 2010 and previously 2009 were characterised by an increase in unemployment rates, this trend is expected to gradually level out.

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The construction industry in Luxembourg is significantly more resistant to a crisis than the construction industry in neighbouring states. The Luxembourg construction industry reported initial growth rates in private residential construction as early as 2010. During the crisis, also the development on the real estate market was stable.

SWEDEN

The Swedish economy reported economic slumps in 2008 and 2009 as it depends very much on the global economic situation through its relatively high export share. The economic growth in 2010 once again shows a definitely positive development caused by a revival of foreign trade and resuming public and private consumer demand. The Swedish government shows a relatively low indebtedness and in the coming years plans to increasingly invest into the improvement of its infrastructure.

The Swedish construction industry seems to have recovered from the crisis in the past year after it had slumped in 2009. In 2010, a growth of 2.4 % was reported for the entire construction industry which, according to forecasts, will further gain in dynamic in the coming years. It is expected that many projects, particularly new residential building projects stopped in 2009, will be realised in the coming years due to improved general conditions. The energy sector also provides great potential as huge sums are planned to be invested in the next ten years into the expansion of production capacities and also into the distri-bution grid.

SWiTzErLAND

In comparison, Switzerland was affected rather little by the 2009 crisis and achieved an economic growth of 2.7 % in 2010 already. A stable growth of about 2 % is forecast for the coming years. The inflation will be around 1 % and building prices are expected to only rise moderately.

While the traffic infrastructure sector was able to strongly increase in the past years and is expected to level out now, the construction volume in railway construction strongly depends on the schedules of large-scale projects. Assessments for 2011 speak of a growth of 8.5 % while slumps of about 3 % are forecast for the following two years. The factual implementation of the expansion plan “Bahn 2030 (Railway 2030)” will have a decisive medium-term effect.

As a partner in the largest infrastructure project of Switzerland, we participate in the construction and development of the road engineering of the Gotthard railway tunnel. Once completed as expected in 2017, it will be the longest tunnel in the world with 57 km and will shorten the travel time from Zurich to Milan by one hour.

Installation of the slab track - the core part - was begun in autumn 2010.

By mid October, the tunnel boring machine in the East tunnel drilled through the last yard in the con-struction of the St. Gotthard base tunnel and directly connected Erstfeld and Bodio for the first time.


ASiA

CHiNA

The People’s Republic of China continues its expansion and increased its 2010 economic performance by 10.5 %. This growth is mainly driven by continued investments and an ever increasing domestic de-mand. Long-term stable growth is planned to be achieved through a more balanced economic structure and intended to be implemented by the Chinese government in the twelfth five-year plan (2011-2015). One area focused on is the stimulation of a still weak domestic consumption to counteract a possible loss in the export economy.

The construction industry in China still benefited in 2010 from the economic 2009 stimulus package aimed at infrastructure and reported of corresponding growth.

As part of the twelfth five-year plan, further massive investments in the infrastructure sector are im-minent; first and foremost in the underdeveloped regions of Western and Central China. The focus is on the expansion of airports, rail-bound traffic and urban infrastructures. Thus, a stable medium-term development of the construction industry can be expected.

We are particularly proud to have built the Austria-Pavilion for the world exhibition in Shanghai. In ad-dition to the construction works, we also have been responsible for interior fitting and the multimedia system.

The cut-through of the 25 km long Pinglu Tunnel (up to now the longest ALPINE tunnel) occurred in November 2010.

iNDiA

In 2010, India was one of the globally most dynamic national economies and was able to impressively increase its growth at 9.7 % to a pre-crisis level.

The economy’s most important impulse provider was and is the high domestic demand that will continue to ensure a stable growth.

The Indian construction industry was slowed down by the global financial crisis but picked up momen-tum in 2010 again and will be able to show high medium-term growth rates. This development is driven by a series of imminent projects, particularly from the infrastructure sector (transportation and energy). The strong growth of population and the rapid economic development in India promises future demand in the infrastructure sector and good investment opportunities.

ALPINE is a major contributor to the extension of the New Delhi underground railway. In 2010, two sec-tions of the underground railway were turned over on schedule for the Commonwealth Games. Those responsible plan a total network of almost 250 km by 2021; we expect to have good chances in this as a partner.

019

SiNgAPOrE

After a slight economic performance slump in the previous year, Singapore’s 2010 GDP reached a record growth. This peak value is mainly based on the strong export orientation of the core industries, namely consumer electronics and information technology, which particularly benefited from the global recovery. In unison with the normalisation of foreign demand, medium-term growth figures of this city state will settle on a lower average level of 4.2 %.

The main factors in the solid economic growth forecast for Singapore are a sound economic policy, highly qualified employees, excellent economic general conditions, a stable financial services industry and an excellent strategic location in Asia.

In 2010, Singapore’s construction industry had to report a slight decrease in the industry as it had to battle with low activity and a lack of projects. The ending of the governmental economic stimulus package initiated in 2009 as part of the financial crisis and aimed at the infrastructure sector aided this situation. In order to stimulate the construction industry, Singapore’s government now plans further investments into the infrastructure sector; a number of projects are in the pipeline already. Stable medium-term growth can therefore be expected.

ALPINE was able to use its tunnelling expertise to acquire two new large projects: We have been award-ed the contract for the construction of two Metro sections as part of the extension of the Singapore Downtown Line construction phase 2.

UAE / OMAN

Although the UAE GDP slumped in 2009 due to the crisis, the economic performance stabilised again in 2010 because of a global increase in demand on the oil and gas sector. Even though it is expected that the export sector will continue to strongly grow in the coming years and even though the Emirate attempts to reduce its dependency on raw materials by diversifying into other areas such as tourism, forecasts for GDP growth are on a rather low level when compared with pre-crisis years.

The development in the construction industry is regionally quite different whereby the Emirate’s overall growth for 2011 is expected to be 2.8 %. While the options for Dubai, hit particularly hard by the crisis, will be rather limited in the coming years and while the Emirate plans to be quite conservative about expenditures, the situation in Abu Dhabi presents itself much more positive. The Emirate continues to heavily invest into construction projects of all kinds even though many projects have been reduced in size or stretched in time. All in all the UEA will continue to be the market on the Arabic peninsula with the most attractive large-scale projects.

ALPINE supports the expansion of the health care sector in Abu Dhabi by newly construction 5 day hospitals and by additionally constructing a two-storey office building in Ruwais City.

A composting plant is constructed in Oman for the local waste management authorities.


Breakdown of construction output by fields of operation in thousand Euro

2010 2009 Change in %

Building- and Power Station Construction 1,133,989 1,221,152 -7.14

Civil Engineering 1,523,655 1,704,265 -10.60

Communication / Energy 381,746 301,467 26.63

Other 161,752 138,036 17.18

Group 3,201,142 3,364,920 -4.87

Breakdown of construction output by regions in thousand Euro

2010 2009 Change in %

part attribut-able to

construction output 2010

in %

order value31 Dec. 2010

Austria 1,521,038 1,601,695 -5.04 47.52 944,480

Germany 695,843 661,580 5.18 21.74 838,503

Southeastern Europe

396,950 601,622 -34.02 12.40 462,706

Northeastern Europe

347,097 278,377 24.69 10.84 435,003

Rest of Western and Northern Europe

131,335 115,995 13.22 4.10 334,138

Asia 108,879 105,651 3.06 3.40 307,827

Group 3,201,142 3,364,920 -4.87 100.00 3,322,657

3 BUSiNESS TrEND In a macroeconomically tense year 2010, the consolidated construction output (i.e. the commercially deferred annual construction output including the proportionate construction output of consortia and asphalt mixing plants) decreased in the reporting year by 4.87 % to 3,201 million Euro (previous year: 3,365 million Euro) while 87 million Euro have been allocated to construction output for the first time. About half of the services were delivered abroad, just like in the previous year.

PrOFiTABiLiTY

The total profit and loss result for the year under report reduced by 3.38 % to 2,749 million Euro. The balanced net expenditure from other operating income and expenses increased from 167.8 million Euro to 216.6 million Euro, representing 7.9 % (previous year: 5.9 %) of the total profit and loss output. Expenses for materials and delivered services reduced by 6.8 % to 1,728.0 million Euro (previous year: 1,853.7 million Euro) while personnel costs increased by 2.8 % to 737.5 million Euro. Depreciation fell by 15.0 % when compared with the previous year and amount to 56.8 million Euro.

Interest income including differences in exchange rates reduced considerably, ending at a balanced expenditure of 25.1 million Euro (previous year: 35.0 million Euro). This is mainly caused by lower differ-ences in exchange rates when compared with the previous year. Other financial income increased from 0.7 million Euro in the previous year to 0.9 million Euro.

021

FiNANCiAL POSiTiON

In the year under report, 57.7 million Euro (previous year: 81.6 million Euro) were invested into tangible fixed assets. An increasing change-over to operational leases, quite in addition to adjusting the invest-ment strategy to the current economic environment, has contributed to a decrease in investments. Bank deposits balanced with financial liabilities increased from 211.9 million Euro in the previous year to 246.8 million Euro. Bank loans are made available at commercially available and money-market-oriented interest rates. Derivatives are only used to secure the underlying operational transactions.

Accounts receivable and other assets have increased during the year under report by 195.9 million Euro to 1,342.2 million Euro while debts to suppliers and other accounts payable have increased by 128.4 million Euro to 1,200.3 million Euro.

Equity has increased by 14.5 million Euro to 411.7 million Euro. Considering the increase of the amount in total assets by 236.7 million Euro, the equity ratio has decreased from 19.2 % to 17.9 %.

NOTES ON THE CASH FLOW STATEMENT

Due to the difficult economic environment, the cash flow on the result decreased from 127.5 million Euro to 100.4 million Euro in comparison with the previous year. Changes in working capital of -77.9 million Euro (previous year: 83.9 million Euro) have been mainly influenced by the increase of receivables by preliminary financing of individual construction projects and longer due dates for payment in the case of international projects. The allocation of resources to investments of 96.9 mil-lion Euro (previous year: 122.1 million Euro) was mainly a result of purchases of machines and devices.

FUNDiNg

The financing of the ALPINE Group is centrally coordinated and the decision in regards to individual loan creditors depends on and is optimised on the basis of various criteria such as the strength of currencies, foreign exchange regulations and tax considerations. Currently, about 46 % of the entire allowed fund-ing is made out to ALPINE Bau GmbH and the rest is made out to various, mainly foreign, subsidiaries.

The prolongation of financing due date profiles was begun two years ago and was systematically continued in 2010. The first highlight was in July with the initial emission of 5-year corporate bonds at a volume of 100 million Euro. In December, a 3-year syndicate credit over 160 million Euro was concluded. This resulted in a further and considerable improvement of the maturity profile of the limits granted:


in MEUR< 1 year

500

400

300

200

100

439

2007 2008 2009 2010

402

316 320

in MEUR1-3 years

2007 2008 2009 2010

500

400

300

200

100

338 355

78

232

in MEUR> 3 years

2007 2008 2009 2010

500

400

300

200

10074 95

171 192

Calculation of Net debt in thousand Euro

31 Dec. 2010 31 Dec. 2009

Total credit line 726,838 787,785

Credit used 371,631 374,417

Bond 2010-2015 (nominal 100 million EUR) 101,968 0

Loan FCC 38,827 37,673

Cash on bank 265,638 200,206

net debt 246,788 211,884

As far as liquidity is concerned, the 2010 markets appear quite relaxed. Loan and bond markets provided good opportunities for raising capital at considerably lower margins when compared with 2009. Signifi-cantly reduced long-term interests offered good opportunities to fix interest rates, particularly around mid year. ALPINE has made good use of this through the emission of the bond and by concluding an interest rate swap.

When compared with 2009, the slightly higher total interest expense is explained by the prolongation of maturity mentioned above and a slightly increased net debt. However, net debts at 247 million Euro are still at a pleasantly low level. This allowed to keep the committed and uncommitted credit limit granted by banks below a usage level of 52 %.

023

4 riSk MANAgEMENT

Risks are inherent to business management. The objective of ALPINE’s group-wide risk management system is to detect such risks early, to monitor them and to take measures to minimise such risks. Risk management functions are clearly structured and are the responsibility of both, operational units and central staff units. Control systems installed in operational units and the central MIS develop and promote cost and risk awareness in employees. The central staff units Group Controlling, Construction Business Management, Legal Department, Finance and Business-/Corporate Development take care of group-wide control functions in close coordination with management and advise in specialist matters.

Additionally, central staff units take care of overriding controlling function and regularly and comprehen-sively report directly to management on possible risks.

Defined processes and approval procedures issued by management or central staff units are contained in the ALPINE Management Manual; these comply with the requirements of ISO 9001 certification and are available to all employees group-wide via Intranet. The management and controlling tools defined in this manual and in controlling mechanisms in general are continuously improved.

MANAgEMENT OF FiNANCiAL riSkS

Currency risks, interest rate risks and liquidity risks are managed by the central finance unit. Additionally, this unit continuously monitors credit limits and debt guarantee lines. If necessary, derivative hedging in-struments are used (futures and swaps). This is limited exclusively to hedge the operational underlying transactions. Speculative objectives are explicitly forbidden.

CUrrENCY riSk

The focus in centrally monitoring the group-wide currency structure is the optimum financing of foreign subsidiaries and branches (from the viewpoint of currencies used) and the currency structure employed in large-scale, international projects. The objective is to minimise risks in matching existing assets due to a high degree (about 50 %) of foreign assets. Hedging instruments are being employed if an optimised currency structure cannot be obtained by designing operational flows alone. For this reason, hedging activities were contracted in 2010 in US Dollars, Polish Zloty, Czech Crowns, Swiss Franks and Singapore Dollars.

iNTErEST rATE riSk

The objective in structuring a financing portfolio is to adjust fixed interest periods to the terms of financed assets. Changes in interest balance because of financial positions with variable interests can often be compensated by operational business transactions by including changed interest rates into the project calculations. In 2010, an interest rate swap was concluded for the first time as a means of long-term securing a low interest level.


LiqUiDiTY riSk

In order to control the liquidity risk (i.e. the risk that a group company may not be able to pay operational and financial liabilities) ALPINE Group sets up a monthly, rolling liquidity planning with a six- to twelve-month horizon. All planning data of all group companies are added by means of a bottom-up approach and operational money flows are continuously adjusted against the financing portfolio. Monthly non-conformance analyses ensure the required planning quality.

CrEDiT riSk

Credit risks are managed by operational units as they have a faster and more direct access to informa-tion on debtors. They are assisted by the central debtor department that also takes care of coordina-tion. In order to avoid bad debts, a contracting party’s credibility is checked by independent credit rating companies prior to entering into business relations. In case a bad debt is determined as being sufficiently certain and/or likely to occur, it is taken into account by way of value adjustments.

PrOCUrEMENT riSk

The risks due to changes in prices of raw materials are managed by the operational division due to the inherent interrelation with the respective underlying transactions. Central units provide advice. A natural hedge results for a large part of the projects through tying prices to various construction price indices. If contracts with fixed prices are entered into, prices for raw materials are attempted to be secured in ad-vance and/or fixed price agreements are signed with subcontractors. There were no derivative hedging contracts for raw materials entered into in 2010.

MArkET AND COMPETiTiVE riSkS

Sales of the construction industry are closely connected to the national economy as well as specific developments in the construction industry (including developments in the subconstruction industry, salaries and prices for construction material). Thus, there is a certain market risk. About half of ALPINE’s construction output occurs abroad. Thus, risk analyses in the current economic situation are focussed on foreign target markets. The department “Business-/Corporate Development” monitors and analyses all corporate, market and competitive aspects and uses these accordingly for strategic decisions.

PrOjECT riSk

All risks in providing services are continuously observed and monitored, such as legal risks, scheduling risks, financial risks, technical risks, environmental and management risks. This occurs through manda-tory routine evaluations of all project risks by operational units as part of on-site self controlling. This is continuously followed and supported by central staff units.

Large-scale projects or projects with special risks may only be offered and accepted with explicit ap-proval of management. Additionally, large-scale projects are supported from tender to completion by the central staff unit Construction Business Management and individual areas are being spot checked. The objective is to critically analyse the development of a project or area independently from the responsi-ble, operational unit.

025

rEPOrTiNg ON THE MAjOr CHArACTEriSTiCS OF THE iNTErNAL CONTrOL AND riSk MANAgEMENT SYSTEM AS rELATED TO THE ACCOUNTiNg PrOCESS

The accounting process is also integrated into the group wide ALPINE risk management system.

Control environment: The basis of the internal control system are group policies applicable to the entire group. Supervision occurs in operative units but also in central units.

Risk assessment: When preparing balance sheets it is inevitable that assumptions and estimations have to be made at the risk that expected future developments will deviate from actual developments. This applies in particular to these subjects: valuation of production orders, collectability of receivables, outcome of legal disputes, valuation of social overhead capital commitments and the intrinsic value of holdings and goodwill.

Control measures: Control is executed in different inspection steps that depend on the organisational level. These are intended to ensure that errors in financial reporting are avoided and/or discovered and corrected.

Information and communication: Financial information is sent in a structured format to all levels of responsibility at regular intervals so that supervisory and controlling functions can be performed. Group policies are updated as needed and communicated to the responsible units.

Supervision: The supervision of the accounting process is performed by the responsible persons at dif-ferent levels of detail which depends on the organisational level. Inspections and plausibility checks are performed at regular intervals.


5 EMPLOYEES

During the year under report, ALPINE Group on average employed 15,057 employees. This is about 200 employees less than in the previous year.

Due to the increasing internationalisation of ALPINE, the support of international business was again further increased by the Department of Personnel and Services in 2010 (expatriates, public services law, tax matters) and personnel has been added.

The Department of Recruiting was newly structured and personnel added. It has contributed to success-fully fill a large number of open positions.

Despite difficult economic conditions, personnel development and training has been consistently contin-ued. More than 2,500 employees in Austria attended in-house training.

In addition to intensive further-training programs for engineers, construction site managers and execu-tives, the cooperation with the university of applied sciences Leipzig has been continued in regards to obtaining the degree “state-licensed engineer with M.S. degree” – Diplomingenieur (FH). A new collabo-ration with the Vienna University (Universität Wien) was added through preparation of a post graduate course on “International Construction Law” that will begin in the summer term 2011. Collaboration with recognised educational institutes (Universities, Universities of Applied Sciences, Higher Technical Insti-tutes (HTL)) has been generally extended, enabling us to offer more advanced internships. Additionally, seventeen graduates from technical universities in several countries had the opportunity to start their career at ALPINE as part of two international trainee programmes.

To ensure a sufficient number of new industrial personnel support of trainees was continued intensively and with high quality. By October 2010 we employed 197 trainees (7 of which are female) (previous year: 196).

The leadership programme initiated in 2007 was successfully continued in 2010 and extended by another programme held in English.

Other training and further training activities in foreign subsidiaries have also been pushed forward dur-ing the year under report.

The English “Site Manager Development Program” was initiated in 2009 and continued in 2010; in autumn, it received the prestigious “International German Training Award (Internationaler Deutscher Trainingspreis)“ in silver.

027

6 ENVirONMENT

Key factors of the success of ALPINE are the principles of resource-conserving construction methods and perfect construction-site logistics. Thus, protection of the environment is an indispensable part of the daily work at ALPINE. To continuously improve its environmental performance, ALPINE in Austria, Germany, Czech Republic, Slovakia, Serbia, Poland, Hungary and Romania observes environmental as-pects as part of an ISO 14001 compliant environmental management system.

Environmental targets and measures are derived and implemented on the basis of environmentally rele-vant activities recorded across the entire group. This results in a considerable contribution to the protec-tion of the environment. In projects, ALPINE pays particular attention to ecological methods of construc-tion. In case of the construction of new office buildings and building yards, ALPINE uses geothermal and solar energies to minimise the CO2 emission. The ALPINE location Wien (Vienna)-Oberlaa was awarded for the second time for its high environmental standards as part of the Vienna City’s “ÖkoBusinessPlan”. Best Practices developed at this location are already being implemented at all ALPINE locations.

Internal environmental audits ensured compliance with all environmentally relevant laws on every location and building site. To meet all requirements from standards, all Austrian branches use a legal compliance tool to ensure that all legal and governmental requirements are met in full and on time. An increased number of construction-site audits with a focus on environmental issues and the good order and cleanliness of construction sites enables ALPINE to separately collect and dispose of waste. Envi-ronmentally harmful material is stored according to legal requirements and used sensitively. ALPINE’s specialist subsidiary, OEKOTECHNA Entsorgungs- und Umwelttechnik Gesellschaft m.b.H., provides the environmentally friendly disposal of construction-site waste.


7 rESEArCH AND DEVELOPMENT

The restructuring of ALPINE’s subsidiary Bautechnische Prüf- und Versuchsanstalt Gesellschaft m.b.H. resulted in the creation of several specialist departments. This includes the “Specialist Department III Research, Technology, Consulting” and deals in particular with research and development, standardiza-tion, training, further education and engineering.

The focus in research is on the further development of building material and the development of new and innovative test and construction methods. During the year under report, the following projects of the Österreichische Forschungsförderungsgesellschaft (a national research funding agency) have been co-sponsored substantially: “Prestressed concrete bridges without sealing and roadbed”, “Controlling consistency of soft concrete”, “Recycling of material excavated in tunnelling”, “Mounting by plain bearing of concrete slabs”, „2-component reactive bitumen in asphalt” and “Modification of highly stable, defor-mation resistant binder course asphalts using natural asphalt”. Knowledge gained in research projects is passed on to all employees in seminars and lectures.

Close cooperation with renowned national and international universities and research institutes is of central importance. In addition to cooperation in matters of research, highly qualified ALPINE employ-ees teach at these institutes. To finish it off, add the close and long-time cooperation in standards and guideline committees. This many-faceted commitment of ALPINE serves to present the company as an innovative and quality-conscious company to building owners, government offices, potential staff and competitors.

029

8 OUTLOOk

A global recovery of the economic situation is forecasted for the construction industry in 2011. How-ever, this development requires a very differentiated and detailed evaluation. For instance, the situa-tion in Europe will continue to be dominated by budget consolidation and investment cuts of individual countries and end up considerably more restrictive than in countries assigned to the emerging markets such as Russia, India or China. In those countries, a growth of up to 11 % is currently assumed. Austria remains the most important market for ALPINE even though the situation will continue to be difficult because of the hesitant implementation of large-scale projects, particularly in the infrastructure sector.

Numerous implications of this development will additionally complicate the current situation. For instance, a definite worsening of payment practices is noticeable and the economic conditions are char-acterised by high long-term receivables and difficult financing conditions.

These repercussions can be softened for ALPINE by consolidation measures already initiated and a restructuring process already well advanced. This course will be maintained in the years to come in order to make profitability even more efficient. In this context, the group’s organisational structure will be reviewed and newly aligned. In coordination with the parent company FCC, standards are being imple-mented to make processes more efficient and to facilitate coordination. Centralisation is the strategic objective. This will allow the utilisation of additional organisational potentials.

Development opportunities in markets we are already active in are being reviewed and newly assessed. Due to low growth, Austria will lose shares in the group’s overall construction output. In contrast, great potential is envisioned in Germany, Poland and Asian countries in which we are already active. An impor-tant role for ALPINE plays the expansion into particularly Arabian markets.

The ALPINE-ENERGIE business areas continue to provide great potential. The markets develop in our favour, particularly in the area of sustainable energy generation. Thus we assume a continued sound growth of the company that will increasingly strengthen the group’s economic performance.

An order value of 3.3 billion Euro is a solid basis for the successful implementation of these objectives and a continued positive development. In comparison with 2010, we expect unchanged results for 2011 and the same level of construction output. We therefore assume a stable progress in the coming years and will continue to strengthen the company.


9 EVENTS AFTEr THE BALANCE SHEET DATE

In January 2011, the lower ranking loan versus FCC Construcción S.A. of 38,827 TEUR that was disclosed as a short-term loan was refinanced as a long-term loan.

In a project in Germany, ALPINE has filed a suit for outstanding payments on set-off construction output. In 2011, the client in turn has filed a suit for damages. Management considers this counterclaim to be without merit.

After the balance sheet date, a client’s lending bank has filed for redhibitory action in connection with a power station project in Austria. Alpine has already responded to this claim. Management believes that the claim’s arguments can be refuted. Therefore it does not see a risk in this case either.

Wals bei Salzburg, 30 March 2011

Alpine Holding GmbHThe Management Board

Werner Watznauer m.p.

031

2 CONSOLiDATED FiNANCiAL STATEMENTS FOr THE YEAr 2010 ALPiNE grOUP

in thousand Euro note 2010 2009

1 Construction output 3,201,142 3,364,920

less joint venture output 6 -452,587 -520,093

Sales net of joint venture output 2,748,555 2,844,827

2 Income from associated companies 7 24,656 2,527

3 Work performed by the enterprise and capitalised 13,602 15,164

4 Other operating income 8 74,852 99,100

5 Raw material and consumables used -616,392 -633,917

6 Expenses for services -1,111,575 -1,219,761

7 Staff cost 9 -737,533 -717,377

8 Depreciation and amortisation 10 -56,820 -66,823

9 Other operating expenses 11 -291,431 -266,881

profit from operating activities 47,914 56,859

10 Net interest expenses 12 -25,321 -20,905

11 Exchange differences 13 223 -14,057

12 Other financial results 14 857 720

net finance cost -24,241 -34,242

profit before tax 23,673 22,617

13 Income taxes 15 -6,474 -6,189

net profit for the period 17,199 16,428

thereof attributable to equity holders of the parent company 16,416 11,606

thereof attributable to non controlling interest 783 4,822

CONSOLiDATED iNCOME STATEMENT FOr THE YEAr 2010

The notes on pages 37 to 92 form an integral part of the consolidated financial statements.

in thousand Euro 2010 2009

net profit for the period 17,199 16,428

Revaluation IAS 16

Gains/losses arising during the year 0 41

Revaluation IAS 39

Gains/losses arising during the year

Reclassification adjustments for amounts recognised in profit or loss 0 -87

Unrealised revenues/losses from the valuation of Hedges

Revenue/loss before income taxes

Gains/losses arising during the year 1,243

Reclassification adjustments for amounts recognised in profit or loss 10,008

Income taxes

Gains/losses arising during the year -315

Reclassification adjustments for amounts recognised in profit or loss -1,902

Change of equity of an equity-consolidated company without effects on net income 117 0

Net investment

Revenue/loss before income taxes

Gains/losses arising during the year -4,761 -949

Income taxes

Gains/losses arising during the year -180 180

Currency translation differences

Exchange differences arising during the year 4,583 -1,301

total comprehensive income 17,886 22,418

thereof attributable to equity holders of the parent company 16,392 16,852

thereof attributable to non controlling interest 1,494 5,566

CONSOLiDATED STATEMENT OF COMPrEHENSiVE iNCOME 2010


033consolidated financial stateMents

in thousand Euro note 2010 2009 01.01.2009

AssEts

non current assets

I Property, plant and equipment 16 426,116 463,858 454,182

II Investment property 17 30,769 18,563 23,976

III Intangible assets 18 25,286 23,654 15,508

IV Financial assets 19 69,706 54,776 53,381

V Associated companies 20 15,724 15,639 14,327

VI Other financial receivables 25 1,149 0 0

VII Other long-term assets 22 4,070 13,082 46,770

VIII Deferred tax assets 15 3,581 4,789 6,186

576,401 594,361 614,330

Current assets

I Inventories 21 120,175 136,290 129,947

II Other financial receivables 25 685 309 0

III Trade receivables and other receivables and assets 22 1,338,140 1,133,184 1,133,165

IV Cash and cash equivalents 26 265,638 200,206 257,099

1,724,638 1,469,989 1,520,211

total assets 2,301,039 2,064,350 2,134,541

Equity AnD liABilitiEs

Equity 27

I Share capital 109 109 109

II Reserves 315,025 297,733 282,887

Equity attributable to equity holders of the parent company 315,134 297,842 282,996

non controlling interest 96,570 99,355 94,575

411,704 397,197 377,571

non-current liabilities

I Employee benefits 28 51,091 47,800 45,141

II Other provisions 29 18,391 18,540 13,108

III Deferred tax liabilities 15 37,003 37,207 34,712

IV Financial liabilities 30 370,812 284,040 324,816

V Other financial liabilities 31 0 0 6,512

VI Trade and other liabilities 33 840 971 974

478,137 388,558 425,263

Current liabilities

I Other provisions 29 61,532 64,883 55,557

II Tax liabilities 32 8,592 8,711 13,525

III Financial liabilities 30 141,614 128,051 252,979

IV Other financial liabilities 31 11 6,050 6,761

V Trade and other payables 33 1,199,449 1,070,900 1,002,885

1,411,198 1,278,595 1,331,707

total equity and liabilities 2,301,039 2,064,350 2,134,541

CONSOLiDATED BALANCE SHEET AS OF 31 DECEMBEr 2010


in thousand Euro 2010 2009

Cash flows from operating activities

Net profit for the period 17,199 16,428

Depreciation and amortisation 57,129 68,399

Results from disposal of intangible assets and property, plant and equipment 505 -1,444

Changes in long-term provisions -322 6,001

Net interest expenses 25,321 34,961

Income taxes 6,475 6,188

Results from non-current financial assets -1,355 -1,682

Results from associated companies 204 -1,341

Other non-cash transactions -4,721 0

100,435 127,510

Changes in working capital

Inventories 15,158 -1,239

Trade receivables and other receivables -196,398 28,071

Short-term provisions -3,548 6,536

Short-term payables 106,869 50,548

Cash generated from operating activities 22,517 211,426

Interest paid -12,357 -15,191

Income taxes paid -6,501 -9,847

net cash from operating activities 3,659 186,388

investing activities

Interest received 637 257

Dividends received 718 1,425

Proceeds from the sale of financial assets 7,353 6,395

Proceeds from the sale of intangible assets and property, plant and equipment 35,264 25,190

Investments in financial assets -19,276 -8,245

Acquisitions of subsidiaries net of cash acquired -798 -17,150

Investments in intangible assets and property, plant and equipment -76,824 -96,744

net cash from investing activities -52,927 -88,872

Financing activities

Repayment/proceeds from long-term borrowings 98,475 -27,685

Repayment from short-term borrowings 14,398 -125,919

Dividends paid -361 -20

Payment of partial interest acquisition of already controlled companies -2,525 0

net cash from financing activities 109,987 -153,624

net increase in cash and cash equivalents 60,719 -56,108

Effect of exchange rate changes on cash and cash equivalents 4,713 -785

Cash and cash equivalents at beginning of year 200,206 257,099

Cash and cash equivalents at end of year 265,638 200,206

CONSOLiDATED STATEMENT OF CASH FLOWS FOr THE YEAr 2010


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037

3 NOTES TO THE CONSOLiDATED FiNANCiAL STATEMENTS FOr THE YEAr 2010 ALPiNE grOUP

1 THE COMPANY

Alpine Holding GmbH, headquartered in 5071 Wals bei Salzburg and registered in the commercial reg-ister at the Salzburg regional court under the registration number FN 36605g, forms the ALPINE con-struction group (“Company”, “Group”) together with its subsidiaries. Its business activities focus on the handling of construction projects of all kinds (civil engineering, building construction, the construction of power stations and tunnelling). The Group also acts as a building contractor in the areas of residential construction and other project areas and does business in the fields of communication technology and energy. Furthermore, gravel works, brick works and asphalt mixing plants are operated.

2 BASiS OF ACCOUNTiNg

The consolidated financial statements of Alpine Holding GmbH were prepared in accordance with the International Financial Reporting Standards (IFRS) published by the International Accounting Standards Board (IASB), and with the Interpretations issued by the International Financial Reporting Interpreta-tions Committee (IFRIC), required to be applied in the EU.

The accounting policies of the companies included in the consolidated financial statements are based on the standard accounting methods of Alpine Holding GmbH. The balance sheet date is in principle 31 December for all companies included.

The income statement is prepared in accordance with the nature of expense method.

Figures in the consolidated financial statements are shown in thousand euro (TEUR). During the process of summing up rounded amounts and percentages, the use of automatic calculation methods may result in discrepancies.

3 CONSOLiDATiON METHODS

3.1 CONSOLiDATED grOUP AND CONSOLiDATiON METHOD

The consolidated financial statements include both Alpine Holding GmbH and all of its subsidiaries over which Alpine Holding GmbH has direct or indirect control (Group). Control is said to exist if the company is entitled to govern the financial and operating policies of a company so as to obtain economic benefit.

Companies that are controlled jointly with other companies (joint ventures), as well as companies over which the parent company exercises significant direct or indirect influence (associates) are accounted for using the equity method.

The assets and liabilities of companies included in the consolidated group for the first time are measured at fair value on the date of acquisition. The acquisition costs of the investments purchased are as-signed to the identifiable assets and liabilities, including contingent liabilities, belonging to the company acquired. The sum of the acquisition costs exceeding the fair value of the net worth is presented as goodwill. Any negative difference between the cost of acquisition of the company and the acquired identifiable assets and liabilities is recognised in the acquisition period in profit or loss.

039

If necessary, the financial statements of the subsidiaries are adjusted in order to align the accounting policies with those used within the Group.

Intragroup transactions, receivables, liabilities and considerable profits (intercompany profits) are elimi-nated. Unrealised losses are only eliminated insofar as the unrealised loss is not the consequence of an impairment.

The companies included in the consolidated financial statements can be seen from the list of invest-ments. Individually affiliated companies are not included due to possible commercial disadvantage. Those affiliated companies not included in the consolidated financial statements only have a negligible influence on the consolidated financial statements.

In the financial year 2010, the following companies, which have hitherto not been consolidated owing to their insignificance, were included in the consolidated financial statements for the first time: Full consolidation:— 3 G Netzwerk - Errichtungs GmbH— Alpine Green Energia Sp.z.o.o.— ALPINE Liegenschaftsverwertungs GmbH— Grados d.o.o.

Using equity method:— AMF - Asphaltmischanlage Feistritz GmbH & Co KG— D1 Construction s.r.o.

The following companies were newly founded and are included in the consolidated financial statement: Full consolidation:— ALPINE GREEN ENERGY ITALY S.R.L.— ALPINE-ENERGIE Cesko spol.s.r.o.— ALPINE-ENERGIE Polska Sp.z.o.o.— SOLAR PARK SERENA S.R.L.

Furthermore, owing to acquisitions, the consolidated group was enlarged by the following companies:

Ingenieurbüro für Energie- und Haustechnik Andreas Duba GmbH is considered to enlarge the scope of competence of ALPINE group in performing engineer services in the field of building services. OKTAL PLUS d.o.o. was acquired to realize a building contractor project.

notes to the consolidated financial stateMents

Acquisition date share Acquiring company

Full consolidation:Ingenieurbüro für Energie- und Haustechnik Andreas Duba GmbH

1 January 2010 90% Alpine Bau Deutschland AG

OKTAL PLUS d.o.o. 13 April 2010 100% OSIJEK-KOTEKS d.o.o.

3 G Netzwerk - Errichtungs GmbH & Co KG has been merged with 3 G Netzwerk - Errichtungs GmbH per 22 October 2010.

ALPINE PZPB d.o.o. has been merged with Alpine d.o.o. Beograd per 2 August 2010.

In February 2010, the remaining 40.29 % of Strazevica Kamenolom d.o.o. have been acquired so that Alpine d.o.o. Beograd holds 100 % of the shares. In accordance with IAS 27.30 this process was recog-nized as equity transition.

On 8 April 2010, a separable business operation of Siemens VAI Technologies GmbH & Co was bought and thereafter merged with ALPINE Bau GmbH.

The acquisition cost of all mentioned acquisitions of the financial year 2010 that caused a change in the scope of consolidated financial statements is TEUR 1,346. A merger was influenced by the favorable development of the carrying amount of the net assets, as their value was below market value on due date of the merger. The difference in the amount of 4,292 TEUR is shown as other operating income.

Goodwill arose from the business combination with Ingenieurbüro für Energie- und Haustechnik And-reas Duba GmbH. The purchase price contains advantages from the expected synergies, the growth in returns, the future market development and the staff which have been taken over. These advantages are not recognized separately from the position goodwill as the resulting economic benefits are not reliably measurable. It is assumed that the recorded goodwill is not tax deductible.

Acquisitions and the initial accounting for business combinations in the consolidated financial state-ments have had the following impact on the consolidated financial statements:

The transaction costs of 224 TEUR were expensed and are reported under other operating expenses.

On the date of initial-consolidation the fair value of the receivables amounts to 9,045 TEUR and corre-sponds to the gross contractual amounts receivable. None of the receivables was impaired and the total contractual amounts are expected to be recoverable.

The non-controlling interests in the mergers have been recognized at the acquisition date with the share of the market value of acquired net assets in an amount of 366 TEUR.

on the date of initial consolidation in TEUR

Non-current assets 1,370

Current assets 11,730

Non-current liabilities 3,473

Current liabilities 4,485

From the date of initial consolidation in TEUR

Revenue 46,515

Operating result -264

je EUR Closing rate 31 Dec. 2010 mid point rate 2010

Albania All 138.888889 137.931034

Bosnia-Herzegovina BAm 1.955830 1.955830

Bulgaria BGn 1.955830 1.955830

China Cny 8.756567 8.931230

Croatia HrK 7,412898 7.281112

Czech Republic CZK 25.060000 25.231062

Hungary HuF 277.777778 274.599542

India inr 59.523810 60.544904

Macedonia mKD 61.728395 61.443932

Poland pln 4.020909 3.991219

Romania ron 4.304778 4.205915

Russia ruB 40.485830 40.254948

Serbia CsD 107.526882 102.827763

Singapore sGD 1.725923 1.798561

Sweden sEK 8.976661 9.525321

Switzerland CHF 1.261352 1.376036

Turkey try 2.048341 1.999134

United Arab Emirates AED 4.830918 4.847897

041

3.2 CUrrENCY TrANSLATiON

3.2.1 FOrEigN CUrrENCY TrANSACTiONS

Foreign currency transactions are converted to EUR at the transaction rate. Monetary assets and liabili-ties in foreign currency are measured at the balance sheet date according to the effective average rate. Exchange differences resulting from this translation are recognised in profit or loss.

3.2.2 TrANSLATiON OF FiNANCiAL STATEMENTS iN FOrEigN CUrrENCY

The financial statements of foreign entities are translated to EUR in line with the functional currency concept. For all companies, this is the respective national currency. All affiliated companies included in the consolidated financial statements are financially, economically and organisationally independent.

According to the modified closing rate method, all balance sheet items, with the exception of equity, are translated at the bid price on the balance sheet date. Expenses and income are translated at the average rate of the financial year. Differences resulting from income statement items translated at average rates are taken directly to equity and reported in currency translation reserves.

Currency translation was based on the following exchange rates:


4 CHANgES

4.1 CHANgES iN ACCOUNTiNg POLiCiES

So far the determination of provisions for anniversary bonuses has resulted from financial mathematical principles. In accordance with IFRS this was changed to actuarial calculation, this year. An adjustment of previous year‘s figures did not take place due to materiality.

4.2 CHANgES iN COMPAriSON iNFOrMATiON

Following the principles defined in IAS 1, this year the classification between long term and short term assets and liabilities was revised. Among others, an asset or liability is shown as short term, if the reali-zation will be expected during the entity‘s normal operating cycle. The operating cycle of a company is the period between the purchase of an asset, that is included to a process, and its transformation in cash or cash equivalents. Receivables and liabilities from construction contracts are shown as short term if the construction contract until the receipt and outflow of cash or cash equivalents - which under certain conditions can be influenced by legal matters - lasts more than 12 months. This is the reason why the previous year‘s figures for trade receivables TEUR 59,268 (1 January 2009: TEUR 57,754), receivables from construction contracts TEUR 42,170 (1 January 2009: TEUR 434) , receivables from other taxes TEUR 6,037 (1 January 2009: TEUR 6,138), advances received TEUR 6 (1 January 2009: TEUR 3,345) and trade payables TEUR 9,854 (1 January 2009: TEUR 6,852) were transferred from long term to short term.

In coordination with the segment information, that is available for the first time in this annual closure, the notation and the previous year’s figures of the construction segments under point 6 – construc-tion output – were adjusted. Furthermore in 2010 there was an adaptation of the representation of construction output in the amount of MEUR 87 and a transfer from other operating incomes to sales in the amount of MEUR 27.

5 ACCOUNTiNg POLiCiES

In the reporting year, the standards revised by the International Accounting Standards Board (IASB) and adopted by the EU - which apply to financial years beginning on or after - were applied to the prepara-tion of consolidated financial statements. The underlying accounting policies applied to the preparation of these consolidated financial statements are set out below.

043

5.1 rEVENUE rECOgNiTiON

Revenues are measured at fair value of the consideration received or to be received and represent those amounts which are to be received for goods and services during the normal course of business. Profits (losses) are generally considered as realised with the transfer of risk (at the time of transfer of risk and the possibility of utilisation) or, respectively, once the service has been rendered.

Interest income is realised while taking into account the effective yield.

In order to reflect the progress of contract works for the period correctly, the percentage of completion method in accordance with IAS 11 is used for construction contracts, on the basis of a reliable deter-mination of the stage of completion, the total costs, and the total revenue. The stage of completion is determined by the actual work performed in relation to the expected total performance. If total contract costs are likely to exceed total contract revenue, the expected losses are recognised immediately in profit or loss. Insofar as accumulated performance exceeds prepayments in individual cases, construc-tion contracts are presented under receivables from construction contracts. If after deduction of prepayments a negative balance remains, the originated liabilities from construction contracts will be presented under advances received.

5.2 SErViCE CONCESSiON ArrANgEMENTS

IFRIC 12 – Service concession arrangements: This interpretation governs the way Public Private Part-nership projects, in the course of which public entities appoint private companies as service providors for services of public interest, are presented in accounts. Assets resulting from services provided by a company within the scope of such a concession arrangement are not regularily recognized as property, plant and equipment of the company but their recognition depends on the type of service conces-sion arrangement. When a company receives an unconditional contractual right to collect payments in exchange for their services provided, the company shall recognize a financial asset. When the company instead receives a right to charge for use of the public service provided, the company shall recognize an intangible asset.

In 2010 these regulations only applied to one company consolidated at equity.

5.3 PrOPErTY, PLANT AND EqUiPMENT

Land and buildings held for use in the production or supply of goods or services or for administrative pur-poses are carried at their revalued amounts in the balance sheet. These correspond to the fair value less subsequent accumulated depreciation and impairment losses. The fair value is determined from market-based estimates through measurement by both external independent experts and knowledgeable Group employees. Revaluations are performed regularly to prevent the carrying amount from deviating significantly from the value determined on the basis of the fair value at the balance sheet date.

If an asset’s carrying amount is increased as a result of revaluation of land and buildings, the increase is credited directly to the revaluation reserve. Increases are recognised in the income statement to the extent that they reverse an impairment previously entered as an expense. A decrease in the carrying amount resulting from the revaluation is recognised as an expense to the extent that it exceeds the amount held in the revaluation reserve in the course of previous revaluations.


Depreciations on revalued buildings are recognised in profit and loss. If revalued tangible assets are later sold or retired, the assignable revaluation surplus recognised in the revaluation reserve is transferred to retained earnings.

Technical equipment and machinery as well as office equipment are presented at cost less accumulated amortisation and recognised impairment expense.

Assets under construction are carried at cost less recognised impairment.

Assets are normally depreciated on a straight-line basis over their expected useful life. Scheduled depreciation of technical equipment and machinery, and of plant and operating and office equipment is for the most part based on the depreciation process of the fair value table of the Austrian national list of construction equipment (ÖBGL) 2009 published by the Austrian Association of Industrial Construction Companies.

Usually, the following periods of useful life are assumed:

Borrowing costs are part of production costs in the capital assets. The average cost of debt is used for the calculation of the borrowing costs to be capitalised.

5.4 iNVESTMENT PrOPErTY

Investment property is property held to earn rental income or for capital appreciation or both. It is initially measured at cost. For the purpose of measurement subsequent to initial recognition, the Group has chosen the cost model.

The assets are amortised on a straight-line basis over their expected useful life. The useful life is as-sumed to be 50 years.

years

Own buildings 8 – 50

Buildings on land owned by others 3 – 50

Technical equipment and machinery 3 – 20

Other plant and equipment, operating and office equipment 3 – 15

045

5.5 LEASES

Assets held under finance leases are recognised as Group assets with their fair values or with the cash value of the minimum lease payments at the commencement of the lease term, if the latter are lower. They are depreciated over their useful life in the same way as own assets.

Any corresponding liability towards the lessor is recognised under financial liabilities. Lease payments are apportioned between the finance charge and the reduction of the liability in such a way as to pro-duce a constant periodic rate of interest on the remaining balance of the liability. Interest expenses are recognised directly in profit and loss.

Rent payments in respect of operating leases are recognised as an expense in the income statement.

5.6 iNTANgiBLE ASSETS AND gOODWiLL

5.6.1 gOODWiLL

The goodwill acquired during consolidation represents the excess of the cost of the business combina-tion over the Group’s share of the net fair value of the identifiable assets and debts of a subsidiary, asso-ciate or jointly controlled company at the acquisition date. In the case of associates and jointly controlled companies, goodwill is included in the carrying amount of the non-current financial assets accounted for using the equity method. Goodwill is recognised as an asset and is tested for impairment at least annually. Any impairment is recognised immediately in profit or loss. No subsequent reversal takes place.

5.6.2 OTHEr iNTANgiBLE ASSETS

Mineral rights and landfill rights are subject to the production-method of depreciation according to the extent of use.

Building rights and software are carried at cost less accumulated amortisation and impairment. The following periods of useful life were assumed:

years

Building rights 50

Software 3 – 5


5.7 iMPAirMENT OF PrOPErTY, PLANT AND EqUiPMENT AND iNTANgiBLE ASSETS ExCEPT gOODWiLL

At each balance sheet date, the Group reviews the carrying amounts of its PPE and intangible assets for any indication that they may be impaired. If there is an indication that an asset may be impaired, the recoverable amount of the asset will be estimated in order to determine the extent of any possible im-pairment. If it is not possible to determine the recoverable amount for the individual asset, the recover-able amount for the cash-generating unit (CGU) to which the asset belongs is used to determine it. The recoverable amount is the higher of an asset’s fair value and its value in use; a cash-generating unit is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflow from other assets or groups of assets. If the estimated recoverable amount of an asset or cash-generating unit falls short of the carrying amount, the carrying amount is reduced to the recoverable value and immediately recognised in profit or loss. In the case of land and buildings which do not constitute financial investments and which are car-ried at revalued amounts, the impairment loss is regarded as an impairment due to a revaluation. A reversal of the impairment loss is recognised in profit or loss, unless the relevant asset is carried at the revalued amount, in which case the reversal of the impairment loss is regarded as an enhancement due to a revaluation.

5.8 FiNANCiAL ASSETS

5.8.1 SECUriTiES

Securities are classified as financial assets available for sale in accordance with IAS 39. The sole excep-tion to this is the participation right in UKH Linz (accounted for as securities with a book value of TEUR 2,242). This is assigned to Loans and Receivables.

5.8.2 iNVESTMENTS

All other investments and not consolidated affiliated companies are classified as financial assets avail-able for sale in accordance with IAS 39 and are therefore measured at fair value in equity.

In line with IFRS 7.29(b) and in the absence of a market present, no fair values were calculated for the other investments and not consolidated affiliated companies which differed from their acquisition costs.

5.8.3 LONg-TErM rECEiVABLES

Long-term, interest-bearing receivables are carried at cost, unless value discounts are required. Non-interest-bearing or low-interest-bearing long-term receivables are discounted to their present value. Loans are assigned to Loans and Receivables in the meaning of IAS 39. As such they are valued at amor-tised cost.

5.8.4. FiNANCiAL LiABiLiTiES

Financial liabilities are valued at amortised cost in line with IAS 39.

047

5.9 FiNANCiAL ASSETS ACCOUNTED FOr USiNg THE EqUiTY METHOD

Investments in associates are included “at equity”, unless they are of minor importance, and are carried at cost in the balance sheet, with the cost being adjusted by changes of the Group’s share in the net worth at the acquisition date.

Losses are recognised by means of impairment. If the losses exceed the Group’s share in the net invest-ment of the associate, they are not recognised, unless there is an obligation to cover losses.

Joint ventures are legal agreements consisting of two or several parties which undertake economic activity whereby the joint ventures underlie a shared leadership. Investments in joint ventures are capi-talized analogically to the equity method and are shown under receivables or liabilities against associ-ated companies. Results from joint ventures are shown as profit or loss from associated companies after recognition of central allocations.

5.10 iNVENTOriES

Inventories are carried at cost or at the lower net realisable value. Production cost comprises all expenses that are directly attributable to the item, as well as any variable and fixed overhead that arises in connection with the production. The cost of inventories is assigned by using the weighted average cost formula. Borrowing costs are part of production costs in the capital assets. The average cost of debt is used for the calculation of the borrowing costs to be capitalised.

5.11 rECEiVABLES

Receivables and other current assets are carried at nominal values. Valuation allowances are performed in case of identifiable specific risks. Foreign currency receivables are measured at the middle rate at the balance sheet date. Receivables are assigned to Loans and Receivables in the sense of IAS 39. As such they are valued at amortised cost.

Other receivables include securities classified as held for trading purposes and therefore valued at fair value in the income statement.


5.12 DEriVATiVE iNSTrUMENTS

Derivative instruments are used to hedge against interest rate and foreign currency exchange risks. De-rivative instruments are measured at fair value, whereas the official exchange and interest rates of the Austrian National Bank are used for measurement as well as quotations from banks. Derivative instru-ments that are designated as hedging instruments in an effective cash flow hedge relationship are rec-ognized directly in equity, otherwise they are recognized as income or expense. Derivative instruments that are designated as hedging instruments in an effective fair value hedge relationship are recognized as income or expense contrarily to the underlying transaction.

5.13 CASH AND CASH EqUiVALENTS

Cash and cash equivalents comprise cash and bank balances.

5.14 EMPLOYEE BENEFiTS

5.14.1 DEFiNED BENEFiT PLANS

Due to legal regulations and obligations under the collective agreement, employees of Austrian group companies who entered into an employment relationship before 31 December 2002 will receive a one-off severance payment from the employer in case of a termination or upon commencement of their retirement. The amount of the severance payment is based on the number of years employed and the employee’s remuneration. The retirement benefits in our Swiss companies are defined benefit plans. Basically all obligations are outsourced to insurance companies. Thus, the according provision is backed up with plan assets. Furthermore, pension commitments have been made to former managing directors and, in some Group companies, the company has an obligation to grant pension contributions to employees. The severance and pension obligations are valued using the Projected Unit Credit Method and dis-counted to their present value. Future salary increases are taken into account in the valuation. Actuarial gains and losses which exceeded the greater of ten percent of the present value of the defined benefit obligation and ten percent of the fair value of any plan asset at that date are recognised in profit and loss, while the determined excess is divided by the expected average remaining working lives of the employees participating in that plan.

5.14.2 DEFiNED CONTriBUTiON PLANS

For all employees who entered into an employment relationship with an Austrian company after 31 December 2002, the company is obliged to pay 1.53 % of the employees’ monthly remuneration into a staff provision fund. No additional obligations exist in addition to the contributions made.

5.14.3 PrOViSiONS FOr ANNiVErSArY BONUSES

The provision for anniversary bonuses granted in Austria is calculated according to actuarial principles, based on retirement ages for men and women as set out in existing pension scheme regulations, an interest rate for accounting purposes of 4.5%, a fluctuation deduction of 5 % for salaried workers and equated fluctuation of 0-20 % for wage workers.

049

5.15 PrOViSiONS

Provisions are established if the company has a legal or constructive obligation towards a third party on the basis of a past event that will lead to payment obligations in the future. In this context and after careful examination of the facts, the amount carried is the one most probable.

5.16 FiNANCiAL LiABiLiTiES

Interest-bearing bank loans and overdraft facilities are carried at the amount paid out less directly attrib-utable loan charges. Financing costs, including premiums payable at repayment, are recognised in profit or loss in the period in which they accrue, using the effective interest method, and increase the liability’s carrying amount inasmuch as they are not paid at the time they arose.

5.17 TrADE PAYABLES

Trade payables are recognised at the nominal value or the higher repayment amount. Foreign currency debt is measured at the average rate at the balance sheet date. Trade payables are classified as financial liabilities to be valued at amortised cost in the sense of IAS 39.

5.18 iNCOME TAxES

The income tax expenses comprise overall current taxes and deferred taxes. Deferred taxes are recog-nised in the income statement only inasmuch as they do not relate to business cases which are booked directly via equity. Current tax expenses are calculated on the basis of taxable income for the year and according to the applicable tax rates. Deferred taxes are the expected tax liabilities or tax benefits arising from the differences between the carrying amount of assets and liabilities in the consolidated financial statements and its tax base, using the balance-sheet oriented liability method. Deferred tax liabilities are usually recognised for all taxable temporary differences. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences can be utilised. The carrying amount of deferred tax assets will be reviewed every year at the balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow the utilisation of an unused tax loss carryforward or unused deferred tax assets.

Deferred tax assets and liabilities are to be measured at the tax rates currently applicable in the period in which an asset is recovered or a liability is settled.


5.19 CONTiNgENT LiABiLiTiES

A contingent liability is a possible or present obligation resulting from past events where payment is not probable. They are explained separately and not recognised in the balance sheet, unless they arise from a takeover in the context of an acquisition of a company. The obligation amount given corresponds to the extent of the liability existing at the balance sheet date.

5.20 jUDgEMENTS AND kEY ASSUMPTiONS CONCErNiNg THE FUTUrE

When compiling the consolidated financial statements in accordance with IFRS, management is required to make certain estimates in the process of applying the accounting policies and must also determine key assumptions concerning future developments that may influence the given amounts of the assets, liabilities and other financial obligations at the balance sheet date as well as income and expenses dur-ing the period under review. Particularly in the case of the following assumptions and estimates, there is a sizeable risk that a signifi-cant adjustment of assets and liabilities may have to be carried out in future financial years:

The assumptions and estimates regarding construction contracts essentially relate to the determination of the project results and the collectability of receivables.

The measurement of the existing defined benefit obligations is based on assumptions relating to the discount rate, the retirement age, life expectancy and future salary and pension increases.

The consideration of a conclusion of civil dispute, as well as recoverability of participations and goodwill is subjected to certain acceptances and appraisals.

Risks in connection with projects under dispute in Poland and Turkey:

Poland: In December 2009, the contract for a highway project in Poland was rescinded by both sides. In this regard legal proceedings have been filed by both parties. ALPINE claims the open amount of the construction contract while the employer claims a penalty of MEUR 14. Management is convinced that a future payment is not probable. Therefore no possible penalty obligations were provided for in accordance with IAS 37. Although these legal proceedings are currently ongoing, ALPINE - after a new tender - has been awarded to complete the project and has been awarded another material project by the same employer. The consolidated financial statements as of 31 December 2010, contain receivables from the project in the amount of MEUR 121. Management is convinced that these receivables are fully recov-erable and therefore no allowances were set up. The receivables are classified as current receivables. The final enforceability of the receivables depends on a potential settlement or the outcome of a lawsuit respectively. The probable expenses of the legal proceedings were accounted for in the financial statements. Turkey: During 2010 an arbitral tribunal decided on a claim. In the opinion of Alpine main arguments were not considered. Both parties appealed to a court of justice. The consolidated financial state-ments contain receivables from the project in the amount of MEUR 15.8. Management is convinced that these receivables are fully recoverable and therefore no allowances were set up. The receiva-bles are classified as current receivables.The final enforceability of the receivables depends on a potential settlement or the outcome of a lawsuit or a new arbitration respectively.

051

5.21 NEW ACCOUNTiNg STANDArDS

5.21.1 APPLiCABLE ACCOUNTiNg STANDArDS iN THE CUrrENT FiNANCiAL YEAr

The following substantially adjusted or new accounting standards and interpretations are for the first time applicable to the financial statements on hand:

IAS 27 Consolidated and Separate Financial StatementsIAS 39 Financial Instruments: Recognition and MeasurementIFRS 1 Additional Exemptions for First-time Adopters: Amendments to IFRS 1IFRS 2 Share-based PaymentIFRS 3 Business CombinationsIFRIC 17 Distributions of Non-cash Assets to OwnersIFRIC 18 Transfers of Assets from CustomersMiscellaneous Annual Improvement Project 2009

iAs 27 Consolidated and separate Financial statements: The new regulations of IAS 27 request the obligatory application of the “economic entity approach” in case of acquisition and sale of shares after obtaining or maintaining the control of an entity. Following IAS 27 transactions with minority share-holders have to be recognized with no affect on income directly in equity. Concerning successive share purchases which result in obtaining the control of an entity or sales of shares with the consequence of loosing the control of an entity, a revaluation at fair value through profit and loss of the shares already held respectively of the remaining ones has to be effected.

iFrs 3 Business Combinations: Changes of IFRS 3 effect an extension on the scope of application and provides the option to recognize non-controlling-interest in case of every entity purchase. the annual improvements for iFrs 2009 (Annual Improvement Project 2009) are focussed on ad-justments of following standards and interpretations: IFRS 2 Share-based payment, IFRS 5 Non-current assets held for sale and discontinued operations, IFRS 8 Operating segments, IAS 1 Presentation of Fi-nancial Statements, IAS 7 Statements of Cash Flows, IAS 17 Leases, IAS 36 Impairment of assets, IAS 38 Intangible assets, IAS 39 Financial instruments: Recognition and Measurement, IFRIC 9 Reassessment of Embedded Derivatives, IFRIC 16 Hedges of a Net Invest ment in a Foreign Operation. These improve-ments caused adjustments in accounting policies but did not have any material impact on the group’s financial performance or financial position.

Additionally, the following standard has been applied for the first time in the course of the consolidated financial statements per 31 December 2010: iFrs 8 operating segments: This standard sets the rules for reportable information concerning operating segments of capital market oriented entitites. Because of the issue of a bond by Alpine Holding GmbH in July 2010, the ALPINE group is in the scope of this standard and is obliged to disclose information concerning its operating segments according to IFRS 8. These obligatory information is presented for the first time in the consolidated financial statements on hand.


The following adjusted and disclosed standards and interpretations - relevant for the current period - that were transferred in European law by the European Union did not have any impact on the Group’s accounting policies, financial performance or financial position. IAS 39 Financial Instruments: Recognition and MeasurementIFRS 1 Additional Exemptions for First-time Adopters: Amendments to IFRS 1IFRS 2 Share-based PaymentIFRIC 17 Distributions of Non-Cash Assets to OwnersIFRIC 18 Transfers of Assets from Customers

The group has not applied any early adoption of further standards or interpretations which have already been published but do not have to be applied mandatorily.

5.21.2 FirST-TiME APPLiCABLE ACCOUNTiNg STANDArDS ANDiNTErPrETATiONS FOr THE FiNANCiAL YEAr 2011 The following changed accounting standards and new interpretations, that were put into European law by the EU, have to be applied for the first time in the financial year 2011:

IAS 24 Related Party Disclosures IAS 32 Financial Instruments: Classification of Rights IssuesIFRS 1 Limited Exemption from IFRS 7 Comparative Disclosures for First-time AdoptersIFRIC 14 Prepayments of a Minimum Funding RequirementIFRIC 19 Extinguishing Financial Liabilities with Equity InstrumentsMiscellaneous Annual Improvement Project 2010

There are no significant impacts expected to the consolidated financial statement of the Group.

5.21.3 ACCOUNTiNg STANDArDS ENFOrCED iN 2011 BUT NOT YET ENDOrSED

The following accounting standards will come into force in the financial year 2011 but have not yet been endorsed: IFRS 7 Amendments to IFRS 7, Disclosures about Financial InstrumentsIFRS 1 Severe Hyperinflation and Removal of Fixed Dates for First-Time Adopters

There are no significant impacts expected to the consolidated financial statement of the Group.

053

6 CONSTrUCTiON OUTPUT

In addition to turnover from our own projects, construction output also includes pro-rated construction output from joint ventures and asphalt mixing plants at an amount of TEUR 452,587 (2009: TEUR 520,093). It can be divided by construction segments as follows:

The profit (loss) of associates primarily includes in particular pro-rated profits and losses of joint ven-tures and asphalt production sites after central allocations.

7 iNCOME FrOM ASSOCiATED COMPANiES

in TEUR 2010 2009

AustriA

Building and power plant construction 547,780 561,783

Civil engineering 719,767 840,057

Communications / Energy 139,662 132,545

Others 113,829 67,310

total 1,521,038 1,601,695

ForEiGn CountriEs

Building and power plant construction 586,209 659,369

Civil engineering 803,888 864,208


Others 47,923 70,726

total 1,680,104 1,763,225

Group As A wHolE

Building and power plant construction 1,133,989 1,221,152

Civil engineering 1,523,655 1,704,265


Others 161,752 138,036

total incl. joint ventures 3,201,142 3,364,920

total joint ventures 452,587 520,093

total excl. joint ventures 2,748,555 2,844,827

in TEUR 2010 2009

Income of associates 46,234 38,019

Expenses of associates -21,578 -35,492

total 24,656 2,527


8 OTHEr OPErATiNg iNCOME

9 STAFF COSTS

in TEUR 2010 2009

Income from the disposal of non-current assets 2,956 2,475

Revenue from insurance compensations 6,620 6,769

Rental income 9,641 7,948

Other income related to staff 2,596 1,815

Charges for staff, equipment and building site installations 21,567 59,855

Exchange profit 6,936 685

Other 24,536 19,553

total 74,852 99,100

in TEUR 2010 2009

Salaries and wages 587,749 565,234

Expenses for severance payments including contributions to staff provision funds 4,028 5,603

Pension cost 2,418 2,927

Cost of statutory social security, payroll-related taxes and mandatory contributions 132,221 131,765

Other social security cost 11,117 11,848

total 737,533 717,377

Average number of employees 15,057 15,234

in TEUR 2010 2009

Service cost for severance payments incl. actuarial gains and losses 2,628 4,275

Payments to staff provision funds 1,400 1,328

total 4,028 5,603

The remaining other operating income includes in particular amounts passed on and releases of valuati-on allowances.

Expenses for pensions and severance payments are presented without the cost of interest.

Expenses for severance payments are broken down as follows:

in TEUR 2010 2009

Service cost for pensions incl. actuarial gains and losses 1,070 -56

Defined contribution plans 1,348 2,983

total 2,418 2,927

Expenses arising from pensions are broken down as follows:

055

10 DEPrECiATiON AND AMOrTiSATiON

11 OTHEr OPErATiNg ExPENSES

in TEUR 2010 2009

Property, plant and equipment 54,711 64,963

Investment property 223 193

Intangible assets 1,886 1,667

total 56,820 66,823

in TEUR 2010 2009

Rental and leasing expenses 76,823 70,588

Legal and consulting expenses 29,120 30,376

Administrative expenses 40,647 35,644

Maintenance and repair 16,712 14,469

Insurance premiums 15,964 16,692

Advertising expenses 9,075 8,532

Taxes, except income taxes 3,651 2,036

Exchange loss 4,566 1,522

Other 94,873 87,022

total 291,431 266,881

Interest income includes income from affiliated companies in the amount of TEUR 38 (2009: TEUR 103).

Interest expenses include expenses from affiliated companies in the amount of TEUR 1,159 (2009: TEUR 1,273).

12 NET iNTErEST iNCOME

in TEUR 2010 2009

Interest and similar income 6,884 7,163

Interest expense and similar charges -32,205 -28,068

total -25,321 -20,905

of which classified as financial instruments as per iAs 39

Loans and receivables 6,884 7,163

Financial liabilities valued at amortised cost -27,055 -24,900


13 ExCHANgE DiFFErENCES

in TEUR 2010 2009

Exchange differences 223 -14,057


Financial assets or liabilities at fair value through profit or loss 580 -5,744

Income from hedged items in fair value hedges 580 138

Expenses from adjustments of the carrying amount of the designated hedged items in fair value hedges -580 -138

Investment income includes income from affiliated companies in the amount of TEUR 574 (2009: TEUR 75). The position ‚Income/expenses from the disposal of non-current financial assets‘ includes a carrying amount profit or loss from the disposal of an affiliated company in the amount of TEUR -17 (2009: TEUR 417).

The position ‚Expenses from affiliated companies‘ and ‚Impairment losses on financial assets‘ are classified as financial instruments ‚Financial assets available for sale‘.

14 OTHEr FiNANCiAL rESULTS

in TEUR 2010 2009

Investment income 718 1,425

Income from securities and financial assets 637 257

Income/expenses from the disposal of non-current financial assets -7 655

Expenses from affiliated companies -31 -308

Impairment losses on financial assets -405 -1,299

Other -55 -10

total 857 720


Loans and receivables 391 0

Held for trading purposes 31 32

Financial assets available for sale 435 688

057

in TEUR 2010 2009

Profit before income taxes 23,673 22,617

Taxes at domestic rate of 25% 5,918 5,654

Effects of other tax rates of subsidiaries operating abroad 3,569 297

Tax-free gains -1,114 -1,936

Expenses not deductible for tax purposes 1,216 1,511

Changes of loss carryforwards for which no deferred taxes were recognised 4,715 3,658

Tax rate change of deferred taxes 0 296

Utilisation of unused loss carryforward -5,835 0

Tax expenses from prior periods -1,274 -2,611

Other -721 -680

Effective tax expense 6,474 6,189

Effective tax rate 27.35% 27.36%

Tax expenses for the financial year can be reconciled with the profit according to the income statement as follows:

15 iNCOME TAxES

in TEUR 2010 2009

Current income taxes 6,278 3,433

Deferred taxes 196 2,756

total 6,474 6,189


In addition to the amount recognised in the income statement, deferred taxes relating to the revaluati-on of the Group’s land and buildings that are not investment property in the amount of TEUR 0 (2009: TEUR 155; 1 January 2009: TEUR -145) were recognised directly in equity. Moreover neutral deferred taxes in an amount of TEUR 495 (2009: TEUR -180; 1 January 2009: TEUR 1,901) were recognised directly in equity in the course of hedge accounting activities/net investments. Furthermore, deferred taxes increased by TEUR 312 (2009: TEUR 430; 1 January 2009: TEUR 166) as a result of changes to the consolidated group.

Deferred taxes for loss carryforwards of subsidiaries, in the amount of TEUR 15,749 (2009: TEUR 16,869; 1 January 2009: TEUR 12,985) were not capitalised, as it is not sufficiently probable that they can be utilised. Deferred taxes for the remaining loss carryforwards were recognised, as given the existing management accounting it is probable that they will be utilised by offsetting them with future tax gains.

Deferred tax assets and deferred tax liabilities are offset on the balance sheet, provided they are levied by the same taxing authority.

in TEUR 31 Dec. 2010 31 Dec. 2009 1 Jan. 2009

AssEts liABilitiEs AssEts liABilitiEs AssEts liABilitiEs

Property, plant and equipment 1,218 -37,278 1,027 -38,465 583 -38,668

Intangible assets 54 -434 208 -537 108 -412

Financial assets 1,745 -5,856 2,245 -4,606 1,198 -79

Receivables and other current assets 5,737 -31,020 6,658 -36,318 4,427 -28,645

8,754 -74,588 10,138 -79,926 6,316 -67,804

Untaxed reserves 0 -1,395 0 -1,395 0 -1,452

Provisions 7,021 -1,276 6,452 -909 6,420 -1,112

Liabilities 13,061 -4,651 14,216 -8,963 18,009 -4,038

20,082 -7,322 20,668 -11,267 24,429 -6,602

Tax loss carryforwards 35,401 44,838 28,120

Deferred taxes (gross) 64,237 -81,910 75,644 -91,193 58,865 -74,406

Valuation allowance for tax loss carryforwards -15,749 -16,869 -12,985

Less offsetting with deferred tax liabilities -44,907 44,907 -53,986 53,986 -39,694 39,694

Deferred taxes (net) 3,581 -37,003 4,789 -37,207 6,186 -34,712

Temporary differences between the carrying amounts in the consolidated financial statements and the respective carrying amount for tax purposes have the following effect on the deferred taxes shown in the balance sheet:

059

16 PrOPErTY, PLANT AND EqUiPMENT

in TEURland and buildings

technical equipment

and machinery

operating and office

equipment

prepay-ments and

assets under construc-

tion total

Cost oF ACquisition

As at 1 Jan. 2009 214,132 372,359 145,705 17,174 749,370

Exchange differences -1,865 -4,846 -272 -256 -7,239

Changes consolidated group 5,914 22,999 5,799 -2,219 32,493

Additions 12,867 26,281 20,643 21,829 81,620

Transfers 6,935 4,912 -623 -9,436 1,788

Disposals -7,307 -28,279 -15,555 -2,086 -53,227

As at 31 Dec. 2009 230,676 393,426 155,697 25,006 804,805

Exchange differences -1,192 -165 1,108 -377 -626

Changes consolidated group 0 1,309 31 1 1,341

Additions 9,586 17,916 17,257 12,964 57,723

Transfers -1,743 2,090 220 -6,530 -5,963

Disposals -22,442 -31,098 -25,016 -1,745 -80,301

As at 31 Dec. 2010 214,885 383,478 149,297 29,319 776,979

ACCumulAtED DEprECiAtion

As at 1 Jan. 2009 41,822 182,067 71,299 0 295,188

Exchange differences -299 -2,125 -173 0 -2,597

Changes consolidated group 1,498 8,644 2,637 0 12,779

Annual depreciation 5,087 41,038 18,838 0 64,963

Impairment loss 0 0 0 0 0

Transfers 510 825 -825 0 510

Disposals -1,680 -18,144 -10,072 0 -29,896

As at 31 Dec. 2009 46,938 212,305 81,704 0 340,947

Exchange differences -162 -23 704 0 519

Changes consolidated group 0 2 1 0 3

Annual depreciation 4,848 33,512 16,351 0 54,711

Impairment loss 0 0 0 0 0

Transfers 2 -125 44 0 -79

Disposals -5,656 -21,665 -17,917 0 -45,238

As at 31 Dec. 2010 45,970 224,006 80,887 0 350,863

Carrying amount on 1 Jan. 2009 172,310 190,292 74,406 17,174 454,182

Carrying amount on 31 Dec. 2009 183,738 181,121 73,993 25,006 463,858

Carrying amount on 31 Dec. 2010 168,915 159,472 68,410 29,319 426,116

Selected land and buildings were measured in the year of 2010 by independent experts and, in some cases, by knowledgeable Group employees. The measurement is based on recent market transactions for comparable land and buildings which stand up to the “dealing-at-arm’s-length” test. As there were no reasons for impairment, there was no accounting booking for properties depreciation.


As on 31 December 2010, the carrying amount would have been around TEUR 145,975 (2009: TEUR 151,710; 1 January 2009: TEUR 140,518), if the Group’s land and buildings (without investment property) were carried at historical cost less accumulated depreciation and impairment.

Borrowing costs were capitalised in the amount of TEUR 476 (2009: TEUR 1,272; 1 January 2009: TEUR 487).

Carrying amounts of finance leases:

The Group has secured its credit lines by means of real estate collateral in the amount of TEUR 64,553 (2009: TEUR 89,865; 1 January 2009: TEUR 118,316).


Buildings 12,312 12,600 11,936

Technical equipment and machinery 39,368 52,061 58,734

Operating and office equipment 1,844 6,020 9,154

061

in TEUR land and buildings

Cost oF ACquisition

As at 1 Jan. 2009 26,551

Exchange differences -76

Changes consolidated group -4,188

Additions 252

Transfers -794

Disposals -460

As at 31 Dec. 2009 21,285

Exchange differences -90

Changes consolidated group 0

Additions 5,497

Transfers 7,243

Disposals -247

As at 31 Dec. 2010 33,688


As at 1 Jan. 2009 2,575

Exchange differences 0


Annual depreciation 193

Impairment loss 0

Transfers 0

Disposals -46

Reversals 0

As at 31 Dec. 2009 2,722

Exchange differences 0


Annual depreciation 223

Impairment loss 0

Transfers 0

Disposals -26

Reversals 0

As at 31 Dec. 2010 2,919

Carrying amount on 1 Jan. 2009 23,976

Carrying amount on 31 Dec. 2009 18,563

Carrying amount on 31 Dec. 2010 30,769

17 iNVESTMENT PrOPErTY

The additions to investment property include subsequent cost of acquisition amounting to TEUR 2,803 (2009: TEUR 252; 1 January 2009: TEUR 17).

Land and buildings were measured by independent experts and, in some instances, by knowledgeable Group employees. The measurement is based on recent market transactions for comparable land and buidlings which stand up to the „dealing-at-arm‘s-length“ test. As of 31 December the fair value of investment property is in the amount of TEUR 53,740.


18 iNTANgiBLE ASSETS AND gOODWiLL

in TEURDevelop-

ment expenses

rights Goodwill total

Cost oF ACquisition

As at 1 Jan. 2009 0 11,631 12,596 24,227

Exchange differences 0 5 19 24

Changes consolidated group 0 221 7,428 7,649

Additions 0 2,364 0 2,364

Transfers 0 0 0 0

Disposals 0 -313 0 -313

As at 31 Dec. 2009 0 13,908 20,043 33,951


Changes consolidated group 0 27 171 198

Additions 627 3,103 0 3,730

Transfers 0 1 0 1

Disposals 0 -782 0 -782

As at 31 Dec. 2010 627 16,374 20,340 37,341


As at 1 Jan. 2009 0 8,051 668 8,719



Annual depreciation 0 1,427 0 1,427

Impairment loss 0 0 240 240

Transfers 0 0 0 0

Disposals 0 -311 0 -311

As at 31 Dec. 2009 0 9,389 908 10,297



Annual depreciation 11 1,635 0 1,646

Impairment loss 0 0 240 240

Transfers 0 0 0 0

Disposals 0 -295 0 -295

As at 31 Dec. 2010 11 10,885 1,159 12,055

Carrying amount on 1 Jan. 2009 0 3,580 11,928 15,508

Carrying amount on 31 Dec. 2009 0 4,519 19,135 23,654

Carrying amount on 31 Dec. 2010 616 5,489 19,181 25,286

063

in TEURinvestmentin affiliatedcompanies

other investment

other exposure securities total

Cost oF ACquisition

As at 1 Jan. 2009 5,283 17,534 24,167 12,747 59,731

(+) Additions; (-) Disposals -186 513 4,932 -4,227 1,032

Changes consolidated group -213 68 0 121 -24

As at 31 Dec. 2009 4,884 18,115 29,099 8,641 60,739

(+) Additions; (-) Disposals 508 -635 18,536 -2,795 15,614

Changes consolidated group -745 0 0 0 -745

As at 31 Dec. 2010 4,647 17,480 47,635 5,846 75,608

BV 1 Jan. 2009 870 16,890 24,167 11,454 53,381

BV 31 Dec. 2009 1,408 17,126 29,099 7,143 54,776

BV 31 Dec. 2010 1,232 16,646 47,635 4,193 69,706

19 FiNANCiAL ASSETS

20 iNVESTMENTS iN ASSOCiATES

All private and public limited companies presented as associates in the consolidated financial state-ments, including their domiciles and equity interest, can be found in the list of investments. The ap-proximately 480 joint ventures are not shown in the list of investments, as they are solely non-trading under civil law without domicile, and were each set up on a temporary basis in order to manage one construction project.

The date of the financial statements of Ziegelwerk Freital Eder GmbH is 28 February and of Schaberre-iter GmbH 31 March in the current business year, and not 31 December as with all other companies.

Below is a summary of financial information refers to the associated companies of the Group (excluding joint ventures):


Assets total 1,091,228 1,006,898 733,873

Liabilities total 1,110,965 1,001,224 741,855

net assets -19,737 5,674 -7,982

Group share of net assets of associated companies 15,724 15,639 14,327

Revenue total 268,838 178,445 142,004

Net income total 5,948 8,431 9,954

Group share of net income of associated companies 1,341 2,385 3,002


21 iNVENTOriES


Land held for sale 53,948 63,814 61,190

Raw materials, consumables and supplies 42,868 44,019 46,744

Work in progress 3,366 6,144 8,164

Finished goods and goods purchased and held for resale 7,888 10,437 5,399

Prepayments 12,105 11,876 8,450

total 120,175 136,290 129,947

The change in unrecognized shares in negative net assets of associated companies in fiscal year 2010 amounts to TEUR 12,580 (2009: TEUR -5,411) and accumulated per 31 December 2010 to TEUR 27,436 (2009: TEUR 14,856; 1 January 2009: TEUR 20,267), thereof TEUR 24,471 (2009: TEUR 13,495; 1 January 2009: TEUR 19,143) on other comprehensive income positions from equity consolidated companies.

Of the land held for sale, TEUR 568 (2009: TEUR 2,060; 1 January 2009: TEUR 4,475) are carried at fair value less costs to sell.

The Group has secured lines of credit available to it with land charges totalling TEUR 41,920 (2009: TEUR 40,171; 1 January 2009: TEUR 19,371).

Borrowing costs were capitalised in the amount of TEUR 274 (2009: TEUR 415).


non-current Current total non-current Current total non-current Current total

Trade receivables 0 402,373 402,373 0 354,156 354,156 0 355,733 355,733

Receivables from construction contracts

0 631,084 631,084 0 553,474 553,474 0 546,137 546,137

Receivables from affiliated companies

0 1,966 1,966 0 3,277 3,277 7,122 3,400 10,522

Receivables from associates 0 151,356 151,356 5,573 137,377 142,950 23,985 120,179 144,164

Other receivables and assets 4,070 151,361 155,431 7,509 84,900 92,409 15,663 107,716 123,379

total 4,070 1,338,140 1,342,210 13,082 1,133,184 1,146,266 46,770 1,133,165 1,179,935

22 TrADE rECEiVABLES AND OTHEr ASSETS

065

Trade receivables and other assets classified as current, of TEUR 227,425 (2009: TEUR 107,475; 1 January 2009: TEUR 64,326), are expected to be recovered after more than twelve months.

Trade receivables relate primarily to receivables from completed construction projects, whereas receivables from construction contracts present projects in progress.

For a receivable on 31 December 2010 a guarantee from Fomento de Construcciones y Contratas, S.A. in the amount of TEUR 5,100 exists.

Of the trade receivables, valuation allowances in the amount of TEUR 27,571 (2009: TEUR 19,857; 1 January 2009: TEUR 13,376), were deducted.

Trade receivables, receivables from construction contracts and receivables from associates give the following picture with regard to due date:

No value adjustment was made for trade receivables which were overdue on the reporting date if there was no material change in the creditworthiness of the debtor and repayment of the overdue amount was expected.


Trade receivables/receivables from construction contracts and associates 1,172,936 1,036,582 1,030,651

Of which: neither overdue nor value adjustment made on the financial statement date 849,750 713,726 789,560

Of which: no value adjustment as of the financial statement date and due within the following time bands:

less than 90 days 141,122 139,097 144,086

91 - 180 days 29,276 34,185 30,771

181 - 360 days 34,146 38,328 23,661

more than 360 days 113,252 97,048 25,440

in TEUR 31 Dec. 2010 31 Dec. 2009

Value adjustments on 1 Jan. 19,857 13,376

Allocation to reserves 13,530 8,825

Utilisation/release 5,816 2,344

Value adjustments on 31 Dec. 27,571 19,857


23 rECEiVABLES FrOM CONSTrUCTiON CONTrACTS


Receivables from construction contracts (gross) 3,484,116 2,847,178 2,372,833

Advances received -2,853,032 -2,293,704 -1,826,696

receivables from construction contracts (net) 631,084 553,474 546,137

Costs incurred to date (of all contracts not completed as at cut-off date) 3,464,175 2,821,186 2,373,353

Profits incurred to date (of all contracts not settled as at cut-off date) 110,258 101,871 69,346

Accumulated losses (of all contracts not settled as at cut-off date) -90,317 -75,879 -69,866

receivables from construction contracts (gross) 3,484,116 2,847,178 2,372,833

retentions by customers 37,291 29,861 36,191

24 OTHEr rECEiVABLES AND CUrrENT ASSETS



Receivables from other taxes 0 50,297 50,297 0 31,474 31,474 0 20,259 20,259

Accruals 0 9,425 9,425 0 7,559 7,559 0 19,804 19,804

Insurance settlements 0 740 740 0 1,467 1,467 0 477 477

Pension plan reinsurance 0 690 690 0 841 841 0 906 906

Securities held for trading 0 1,012 1,012 0 1,005 1,005 0 969 969

Other 4,070 89,197 93,267 7,509 42,554 50,063 15,663 65,301 80,964

total 4,070 151,361 155,431 7,509 84,900 92,409 15,663 107,716 123,379

The remaining other receivables on 31 December 2010 include among others a reclaim from a guarantee drawn by the employer of a construction project mentioned in point 5.20 which amounts to MEUR 27.

067

25 OTHEr FiNANCiAL rECEiVABLES



Derivatives designated as hedging instruments measured at fair value

Forward exchange transactions 0 94 94 0 138 138 0 0 0

interest swap 1,149 0 1,149 0 0 0 0 0 0

Derivatives at fair value through profit or loss

Forward exchange tran-sactions 0 591 591 0 171 171 0 0 0

26 CASH AND BANk BALANCES


Bank balances 264,026 199,226 256,174

Cash 1,612 980 925

total as per balance sheet 265,638 200,206 257,099

Cash and cash equivalents in the cash flow statement 265,638 200,206 257,099

27 EqUiTY

The share capital of Alpine Holding GmbH is presented as the share capital, unchanged from the previous year.

The other retained earnings are the result of the profits and losses generated within the Group. The currency translation differences comprise all exchange differences that arose from the translation of subsidiaries’ financial statements drawn up in a foreign currency. Changes in value as a consequence of the revaluation of land and buildings are included in the item revaluation reserve.

The non-realised earnings from the valuation of hedges arose through a group company consolidated by the equity method. These are interest swap transactions which are treated as cash flow hedges in the balance sheet, in accordance with IAS 39. The position Net Investment concerns exchange rate fluctuations from a payable to a foreign operation, for which settlement is neither planned nor likely to occur in the foreseeable future. The minority interests in equity represented primarily the 6 % share in Hoch- und Tiefbau Beteiligungs GmbH and the 17.63 % share in ALPINE Bau GmbH held by FCC Construcción S.A..


28 EMPLOYEE BENEFiTS


Provisions for severance payments 41,215 37,832 35,365

Provisions for pensions 9,876 9,968 9,776

total 51,091 47,800 45,141

The calculation of the provisions for severance payments as at 31 December 2010, 31 December 2009 and 1 January 2009 is based on the following assumptions:

The changes in present value of defined benefit obligations in the financial years 2010 and 2009 are as follows:

31 Dec. 2010 31 Dec. 2009 1 Jan. 2009

Interest rate 4.5% 5.0% 5.0%

Salary and wage increases 2.5% 2.5% 2.5%

Fluctuation rate 0 - 5% 0 - 5% 0 - 5%

Retirement age women in years 56.5 - 60 56.5 - 60 56.5 - 60

Retirement age men in years 61.5 - 65 61.5 - 65 61.5 - 65

Life expectancy AVÖ 2008-P AVÖ 2008-P AVÖ 2008-P

28.1 PrOViSiONS FOr SEVErANCE PAYMENTS


rEConCiliAtion oF proVision rECoGnisED in tHE BAlAnCE sHEEt

present value of defined benefit obligations 42,140 37,819 35,365

Accumulated actuarial profit (+) / loss (-) -925 13 0

provision 41,215 37,832 35,365

in TEUR 2009 2008

Defined benefit obligations on 1 Jan. 37,819 35,365

Service cost 2,641 4,275

Interest expense 1,684 1,608

Actuarial profit/loss 925 -13

Payments in the financial year -3,568 -5,183

Changes consolidated group 2,639 1,767

Defined benefit obligations on 31 Dec. 42,140 37,819

ExpEnsE rECoGnisED in tHE inComE stAtEmEnt


Interest expense 1,684 1,608

Realised actuarial profit (-), loss (+) -13 0

Expense in the income statement 4,312 5,883

069

31 Dec. 2010 31 Dec. 2009 1 Jan. 2009

Interest rate 2.5 - 4.5 % 3.3 - 5.0 % 2.85 - 5.0 %

Pension, salary and wage increases 1.0 - 4.0% 1.0 - 4.0% 1.0 - 4.0%

Fluctuation rate 0 – 22.5% 0 – 22.5% 0 – 22.5%

Retirement age women in years 56.5 - 64 56.5 - 64 56.5 - 64

Retirement age men in years 61.5 - 65 61.5 - 65 61.5 - 65

Life expectancy Austria AVÖ 2008-P AVÖ 2008-P AVÖ 2008-P

Germany Heubeck mortality tables 2005 G

Heubeck mortality tables 2005 G

Heubeck mortality tables 2005 G

Switzerland BVG 2005 BVG 2005 BVG 2005


Present value of covered defined benefit obligations 21,490 16,157 14,493

Fair value of plan assets -16,842 -12,632 -11,952

total 4,648 3,525 2,541

Present value of uncovered defined benefit obligations 7,471 7,256 7,235

present value of defined benefit obligations 12,119 10,781 9,776

rEConCiliAtion oF proVision rECoGnisED in tHE BAlAnCE sHEEt

present value of defined benefit obligation 12,119 10,781 9,776

Accumulated actuarial profit (+) / loss (-) -2,243 -836 0

Amount not recognised as an asset because of the limit in paragraph 58(b) 0 23 0

provision 9,876 9,968 9,776

in TEUR 2010 2009

Defined benefit obligations on 1 Jan. 23,413 21,728


Employee contributions 1,153 0

Interest expense 868 883

Actuarial profit/loss 1,673 550

Currency translation differences 2,962 424


Changes consolidated group 0 322

Gains/Losses from plan curtailments -539 0

Defined benefit obligations on 31 Dec. 28,961 23,413

The calculation of the provisions for pensions as at 31 December 2010, 31 December 2009 and 1 Janu-ary 2009 is based on the following assumptions:

The changes in present value of defined benefit obligations in the financial years 2010 and 2009 are as follows:

28.2 PrOViSiONS FOr PENSiONS


in TEUR 2010 2009

plan assets on 1 Jan. 12,632 11,952

Expected income from plan assets 324 381

Actuarial profit/loss 254 -286

Currency translation differences 2,508 350

Employer contributions 1,158 2,126

Employee contributions 1,153 0


net assets on 31 Dec. 16,842 12,632

in TEUR 2010 2009

ExpEnsE rECoGnisED in tHE inComE stAtEmEnt

Service cost 1,081 -56

Interest expense 868 883

Realised actuarial profit (-), loss (+) -11 0

Expected income from plan assets -324 -381

Gains/Losses from plan curtailments and settlements -539 0

Expense in the income statement 1,075 446

The changes to the present value of plan assets in the financial years 2010 and 2009 are as follows:

The principal asset classes of the plan assets together with their expected returns on the date of the financial statement are as follows:

The total expected income results from the weighted average of the expected returns from the asset categories held through the plan assets. The estimation of the expected returns made by the manage-ment board is based on historical rates of return and market forecasts for the respective asset values for the next twelve months.

In the financial year just ended the actual income from plan assets amounted to TEUR 578 (2009: TEUR 95).

in TEUR 2010 2009

expected income fair value expected

income fair value

Bonds 1.60% 6,527 2.10% 6,043

Stockholdings 6.50% 304 6.25% 253

Property 3.50% 1,540 3.90% 1,349

Other 2.18% 8,471 2.69% 4,987

weighted average of expected income 2.15% 16,842 2.61% 12,632

071

The development of the experience adjustments is illustrated as follows:

For the annual period beginning after the reporting period, estimated contributions to defined benefit plans are expected in the amount of TEUR 1,258 (2009: TEUR 1,010).

in TEUR 31 Dec. 2010 31 Dec. 2009 31 Dec. 2008 31 Dec. 2007

Present value of defined benefit obligations 28,961 23,413 21,728 18,134

Fair value of plan assets -16,842 -12,632 -11,952 -8,072

Deficit in the plan 12,119 10,781 9,776 10,062

Experience adjustments of plan debts 1,673 550 -1,242 -1,065

Experience adjustments of plan assets 254 -286 -175 -19

29 OTHEr PrOViSiONS

in TEUR 31 Dec. 2010 31 Dec. 2009

non-current Current total non-current Current total

As at 1 Jan. 18,540 64,883 83,423 13,108 55,557 68,665

Changes consolidated group

826 198 1,024 1,180 1,610 2,790

Exchange differences 39 465 504 6 -489 -483

Reclassification -230 230 0 603 -603 0

Additions 5,656 31,306 36,962 5,627 45,703 51,330

Utilisation -5,264 -19,724 -24,988 -1,732 -25,078 -26,810

Release -1,176 -15,826 -17,002 -252 -11,817 -12,069

provision on 31 Dec. 18,391 61,532 79,923 18,540 64,883 83,423



Legal disputes 171 3,248 3,419 378 4,385 4,763 188 5,652 5,840

Anniversary bonuses 9,789 0 9,789 11,139 0 11,139 7,437 3,480 10,917

Provision for losses 0 43,285 43,285 0 41,925 41,925 0 30,713 30,713

Other 8,431 14,999 23,430 7,023 18,573 25,596 5,483 15,712 21,195

total 18,391 61,532 79,923 18,540 64,883 83,423 13,108 55,557 68,665


30 FiNANCiAL LiABiLiTiES



Bonds 99,343 2,625 101,968 0 0 0 0 0 0

Mortgage loans 65,289 15,496 80,785 60,771 17,350 78,121 86,832 21,819 108,651

Revolving credits 172,034 45,957 217,991 125,122 66,248 191,370 134,455 172,098 306,553

Finance leases 28,541 12,299 40,840 40,251 14,859 55,110 53,343 17,273 70,616

Loans from affilia-ted companies 0 38,827 38,827 35,500 2,173 37,673 36,400 0 36,400

Other 5,605 26,410 32,015 22,396 27,421 49,817 13,786 41,789 55,575

total 370,812 141,614 512,426 284,040 128,051 412,091 324,816 252,979 577,795

in TEUR 31 Dec. 2010

type of financing Currency maturity Effective yield

interest rate fixed/

variable maturity

Mortgage loans, current ALL, CHF, EUR, HRK, PLN 15,496 2.1%-8.5% fix, variable 2011

Mortgage loans, non-current

BAM, CHF, EUR, HRK, PLN 65,289 2.6%-8.5% fix, variable 2012-2029

Revolving credits, current

CHF, CZK, EUR, PLN, RSD 45,957 0.9%-18.4% fix, variable 2011

Revolving credits, non-current EUR 172,034 3.8%-4.3% variable 2012-2018

Other, current EUR, HRK, RSD 26,410 1.5%-11.8% fix, variable 2011

Other, non-current EUR, HRK 5,605 1.5%-6.9% variable 2012-2015

330,791

Alpine Holding GmbH issued a bond with valuta 1 July 2010 under following conditions: Issuer Alpine Holding GmbHVolume in EUR 100,000,000 Denomination in EUR 1,000Tenor 2010-2015Repayment final maturity at 100 % of nominal valueNominal interest 5.25% p.a.Coupon 01.07. anuallyInitial public offering Vienna Stock Exchange, over the counter market (organized stock market)Joint Lead UniCredit Bank Austria and BAWAG PSKISIN AT0000A0JDG2

The Loans from affiliated companies in the amount of TEUR 38,827 (2009: TEUR 37,673; 1 January 2009: TEUR 36,400) concern a subordinated loan from FCC Construcción S.A.

The carrying amounts and main terms of the bank loans and overdrafts are as follows:

As the interest rate is usually variable, the fair values correspond with the carrying amounts.

073

The liabilities from finance leases and their maturities are as follows:

The leases do not include any agreements on conditional lease payments.

in TEUR 1 Jan. 2009

present value interest payment amount

Maturity 2009 17,273 2,616 19,889

2010 - 2013 40,923 5,580 46,503

After 2013 12,420 3,271 15,691

total 70,616 11,467 82,083



Maturity 2010 14,931 2,090 17,021

2011 - 2014 30,516 3,503 34,019

After 2014 9,663 2,479 12,142

total 55,110 8,072 63,182



Maturity 2011 12,299 1,495 13,794

2012 – 2015 19,191 2,367 21,558

After 2015 9,350 2,147 11,497

total 40,840 6,009 46,849

31 OTHEr FiNANCiAL LiABiLiTiES


non-current Current total



Derivatives designated as hedging instruments measured at fair value

Forward exchange transactions 0 0 0 0 0 0 6,512 6,761 13,273

Derivatives at fair value through profit or loss

Forward exchange transactions 0 11 11 0 6,050 6,050 0 0 0


33 TrADE PAYABLES AND OTHEr LiABiLiTiES





Advances received 0 123,577 123,577 0 89,488 89,488 0 102,053 102,053

Trade payables 0 685,770 685,770 0 652,509 652,509 0 591,966 591,966

Liabilities towards affiliated companies

0 2,688 2,688 0 3,615 3,615 0 1,481 1,481

Liabilities towards associates 0 150,008 150,008 0 81,905 81,905 0 75,170 75,170

Other liabilities 840 237,406 238,246 971 243,383 244,354 974 232,215 233,189

total 840 1,199,449 1,200,289 971 1,070,900 1,071,871 974 1,002,885 1,003,859

Trade payables and other liabilities classified as current, of TEUR 28,452 (2009: TEUR 9,860; 1 January 2009: TEUR 10,197), are expected to be settled after more than twelve months.

To the extent that advances received exceed the accumulated services, they are shown as advances received.

Provisions for construction contracts totalling TEUR 47,572 (2009: TEUR 51,756; 1 January 2009: TEUR 50,814), are included in trade payables.

32 TAx LiABiLiTiES

in TEUR 2010 2009

As at 1 Jan. 8,711 13,525

Changes consolidated group 0 690

Change in exchange rate 120 -4

Additions 4,796 5,973

Used -5,035 -11,473

Released 0 0

As at 31 Dec. 8,592 8,711

075

34 OTHEr LiABiLiTiES





Tax liabilities (without income taxes) 0 103,900 103,900 0 105,037 105,037 0 87,315 87,315

Liabilities relating to social security 0 24,566 24,566 0 25,381 25,381 0 26,140 26,140

Liabilities towards employees 0 41,774 41,774 0 38,452 38,452 0 38,919 38,919

Unused leave liabilities 0 26,364 26,364 0 24,716 24,716 0 22,766 22,766

Hours in lieu liabilities 0 4,683 4,683 0 5,509 5,509 0 5,061 5,061

Liabilities from legal and consulting expenses

0 6,484 6,484 0 5,198 5,198 0 6,587 6,587

Other 840 29,635 30,475 971 39,090 40,061 974 45,427 46,401

total 840 237,406 238,246 971 243,383 244,354 974 232,215 233,189

35 OPErATiNg SEgMENT iNFOrMATiON

The ALPINE group is busy across-the-board in the building industry. The definition of the segments follows the internal reporting system of the ALPINE group, it complies with the constructional and sec-ondary activities of the Group and covers the following reportable segments: Building and Power Plant Construction, Civil Engineering, Communication / Energy and Others.

35.1 BUSiNESS ArEA BUiLDiNg AND POWEr PLANT CONSTrUCTiON

The business area Building and Power Plant Construction comprises all business activities that are in conjunction with residential, commercial and industry construction, sports facilitiy and stadium con-struction, special building construction (for example airports, train stations or historic buildings), office and public building construction, as well as all spade- and rework of secondary contract work. As the main contractor ALPINE group executes all activities, starting with project development, planning and financing right up to the disposal.

35.2 BUSiNESS ArEA CiViL ENgiNEEriNg

The business area Civil Engineering is the largest one within ALPINE group. The range of performance of this business area reaches from road and railway construction over other underground construction (for example sports facilities, controlled dumps), bridge construction and underground construction up to foundation engineering (for example piles, melioration, construction trench solutions etc.).


35.3 BUSiNESS ArEA COMMUNiCATiON/ENErgY

ALPINE Energie focusses on activities in the fields of overhead contact line and overhead power line construction, communication technology, building and industry technology, intelligent transportation systems, recoverable energy sources and engineering.

35.4 BUSiNESS ArEA OTHErS

The Business area Others comprises the departments Concession Projects, Extraction of Raw materials and Manufacturing of Building Materials, the ALPINE Technology Management, the Machines - Technical Department (MTA), the Group Administration, the central Finance Department as well as other centra-lized activities.

The depreciation shown in the segment Others comprises the depreciation for machinery and equip-ment of the Machines - Technical Department, which are leased to companies belonging to other seg-ments of the ALPINE group. According to the liquidity need or surplus, interests are internally allocated and credited or debited to projects by the central Finance Department, which is reflected in the business area Others.

Information about segment assets for the Group‘s operating segments and about inter-segment revenues are not indicated because this information is not part of and is not disclosed separately in the internal reporting system. As the result of internal reporting of ALPINE group corresponds with the result of external reporting, a transition from segment result to group result is left undone.

35.5 SEgMENT iNFOrMATiON

in TEURBuilding and power plant

Construction

Civil Engi-

neering

Communi-cation / Energy

others Group

opErAtinG sEGmEnt inFormAtion pEr 31 DEC. 2010

Segment Construction Output 1,133,989 1,523,655 381,746 161,752 3,201,142

Segment Revenue 1,051,598 1,198,557 381,746 116,654 2,748,555

segment result Earnings before taxes (EBT) 8,989 13,139 12,729 -11,184 23,673

thereof result from companies consolidated at equity 4,918 18,965 0 773 24,656

thereof depreciation 631 8,893 6,297 40,999 56,820

thereof impairment losses 0 0 124 116 240

thereof net interest expenses -3,346 -13,582 -2,052 -6,341 -25,321

interest expenses -8,310 -16,761 -3,306 -26,395 -54,772

interest income 4,964 3,179 1,254 20,054 29,451

opErAtinG sEGmEnt inFormAtion pEr 31 DEC. 2009

Segment Construction Output 1,221,152 1,704,265 301,467 138,036 3,364,920

Segment Revenue 1,127,873 1,320,050 301,467 95,437 2,844,827

segment result Earnings before taxes (EBT) -6,792 21,776 13,926 -6,293 22,617

thereof result from companies consolidated at equity 956 606 0 965 2,527

thereof depreciation 872 14,871 6,324 44,756 66,823

thereof impairment losses 0 0 0 240 240

thereof net interest expenses -1,189 -8,961 -397 -10,358 -20,905

interest expenses -7,712 -13,590 -1,388 -24,561 -47,251

interest income 6,523 4,629 991 14,203 26,346

077

35.6 SEgMENT iNFOrMATiON ABOUT gEOgrAPHiCAL ArEAS

Based on the location of the construction sites, the activities of the Group can be attributed to the following geographical areas:

Geographical information on non-current assets is not indicated, as the cost-benefit ratio would not allow to provide this information with reasonable effort.

in TEUR 2010 2009

Austria 1,521,038 1,601,695

Germany 695,843 661,580

Southeastern Europe 396,950 601,622

Northeastern Europe 347,097 278,377

Rest of Western and Northern Europe 131,335 115,995

Asia 108,879 105,651

total 3,201,142 3,364,920

36 FiNANCiAL iNSTrUMENTS

36.1 CAPiTAL riSk MANAgEMENT

Capital is managed with the objective of achieving the optimal relationship between liabilities and equity. This should have the effect of all Group companies being able to operate under the premise of business continuity.

The capital structure is composed of the current and non-current liabilities less cash and cash equiva-lents as net liabilities and the equity shown on the balance sheet.The capital structure is reviewed on a regular basis by the responsible authorities.

36.2 TYPES OF FiNANCiAL iNSTrUMENTS

The principle and original financial instruments at the Group’s disposal are the financial assets, trade receivables, bank balances, and financial and trade liabilities. The actual balances of each of the original financial instruments can be seen in the balance sheet. Derivative financial instruments are used in the Group.



FinAnCiAl AssEts

Held for trading purposes 1,012 1,005 969

Derivatives at fair value through profit or loss 591 171 0

Derivatives designated as hedging instruments in fair value hedge accounting relationships 1,243 138 0

Loans and receivables 1,391,075 1,179,445 1,208,219

Financial assets available for sale 19,829 20,591 23,260

FinAnCiAl liABilitiEs

Derivatives at fair value through profit or loss 11 6,050 0

Derivatives designated as hedging instruments in fair value hedge accounting relationships 0 0 13,273

Financial liabilities valued at amortised cost 1,712,715 1,483,962 1,581,654

36.4 CUrrENCY riSk

The decentralized organizational structure of the Group with its numerous national subsidiaries and branch offices causes a majority of closed currency positions. Receivables and liabilities from operating activities prevailingly originate in the respective local currencies. When companies in countries with a local currency other than Euro are financed by shareholder‘s loans, valuation effects can be caused in the case of changes in currency exchange rates. These risks can primarily be balanced through significant interest reserves and moreover generally concern book earnings without a direct cash flow effect.

According to IFRS 7, foreign currency risks are analyzed using the method of sensitivity analysis. This method illustrates the impact of changes in currency exchange rates on the profit or loss as well as on the equity position of the company. If the exchange rate of the currencies on 31 December 2010 had been 5 % higher (lower) than it actually was, the result would have increased (decreased) by MEUR 11.5 (2009: MEUR 9.3). This is primarily a result of intercompany financing transactions. The fair value to be recorded directly in the equity position would have increased (decreased) by MEUR 4.7 (2009: MEUR 0.2). This effect mainly results from changes in the evaluation of the Net investment.

Significant currency discrepancies in the course of a project are analysed and hedged on a transaction-orientated basis. Therefore, at the end of 2010 the following hedging transactions existed:

In the business year of 2010 the changes in the fair value of forward exchange contracts recognized as cash flow hedges of fully consolidated companies totalized aproximately MEUR 0.06 in equity (reserves for cash flow hedges). The amounts recognized in equity are expected to fall due in January 2011 and will have an impact on the result.

36.3 CATEgOriES OF FiNANCiAL iNSTrUMENTS

Buy Currency nominal value 2010 in tEur nominal Value 2009 in tEur

USD 12,043 0

079

On 31 December 2010 forward exchange transactions existed in SGD, CHF, PLN and CZK to hedge intra-group-currency-liabilities. The fair value is hedged and the corresponding results of both, the underlying transaction and the hedging instrument, are recognised through profit and loss. The principal terms of the forward exchange contract comply with those of the hedged liability. At the end of 2010 the following hedging activities existed:

Buy Currency nominal value 2010 in tEur nominal Value 2009 in tEur

SGD 6,668 13,904

CHF 50,332 16,415

PLN 398 0

sell Currency nominal value 2010 in tEur nominal Value 2009 in tEur

CZK 1,664 0

type nominal Value 2010 in tEur nominal Value 2009 in tEur

Interest rate SWAP 85,714 0

36.5 iNTErEST riSk

Interest risks mainly result from increasing interest expenses of loans and credits with variable interest rates when market interest rates tend to rise. The interest risk can be balanced in the average-term by considering the higher interest rates when calculating offers.

Changes in interest rates are analyzed by using the sensitivity analysis in accordance with IFRS 7. The ef-fects of changes in market interest rates on interest payments, interest income and expenses as well as on profit or loss and equity are illustrated. If the market interest rate in 2010 had been 100 basis points higher (lower), the result would have decreased (increased) by MEUR 3.0 (2009: MEUR 2.9). This can primarily be seen as a result from taking out credits and loans with variable interest rates. The additional time value to be added directly to equity would have been MEUR 0.2 (2009: MEUR 0.0) higher (lower). This is mainly caused by the changes in interest rate swaps valuation.

On 31 December 2010 interest rate hedging transactions in the form of interest rate swaps existed. In the course of this transaction the Group exchanges fixed and variable interest payments, which were calculated on the basis of contracted nominal values. At the end of this reporting period the following interest rate hedges existed:

In the business year of 2010 MEUR 0.9 were recorded in equity from changes of the fair value of inte-rest rate swaps, recognized as cash flow hedges of fully consolidated companies (reserve for cash flow hedges). The amounts recognized in equity are expected to fall due in October 2014 and will have an impact on the result.


36.6 CrEDiT riSk

By credit risk there is meant the risk of the Group sustaining a loss as a result of a contractual partner not fulfilling its contractual obligations. Within the Group there is constant monitoring and assessment of creditworthiness with regard to the status of the receivables. All contractual partners are credit-checked prior to entering into a business relationship. The information is obtained from independent credit rating organisations. Default risks are taken account of using value adjustments.

Trade receivables are drawn from a large number of different sectors and geographical regions.

There are no significant agreements in place to reduce the maximum risk of default on receivables. The book value of the financial assets reduced by value adjustments as appropriate gives the maximum risk of default to the Group. Any securities received are not taken into account.

The credit risk arising from the investment of cash, cash equivalents and securities is limited by the fact that the securities available for sale are mostly domestic investment certificates with excellent credit ratings.

36.7 LiqUiDiTY riSk

Liquidity risk is the risk that a group company has difficulties in completing its operational or financial liabilities.

The central Finance Department has the responsibility of managing solvency risk within the ALPINE Group. Solvency planning is a part of the regular financial planning process. Solvency is, furthermore, managed through the holding of appropriate cash balances and lines of credit at banking institutions.

The tables below show the maturity on contracts concerning financial liabilities. The tables are based on non-discounted cash flows for the financial liabilities. They contain both interest and amortisation payments.

in TEUR up to 1 year 1-5 years over 5 years total

stAtus 31 DEC. 2010

Trade liabilities and other liabilities 1,199,449 840 0 1,200,289

Bank liabilities 99,732 257,380 3,960 361,072

Liabilities due to loans 5,250 121,000 0 126,250

Liabilities due to finance leases 13,794 21,558 11,497 46,849

total 1,318,225 400,778 15,457 1,734,460

081

According to the current financial plan the company will be able to follow its obligations from operational cash-flows and from due falling financial liabilities in 2011.

Purchase obligations only exist within the framework of normal business activity.


stAtus 31 DEC. 2009

Trade liabilities and other liabilities 1,061,040 10,831 0 1,071,871

Bank liabilities 118,200 196,447 19,682 334,329

Liabilities due to loans 0 0 0 0

Liabilities due to finance leases 17,021 34,019 12,142 63,182

total 1,196,261 241,297 31,824 1,469,382


stAtus 31 DEC. 2009

Status 1 Jan. 2009 992,668 11,171 0 1,003,859

Trade liabilities and other liabilities 259,163 134,335 165,831 559,329

Bank liabilities 0 0 0 0

Liabilities due to loans 19,889 46,503 15,691 82,083

liabilities due to finance leases 1,271,740 192,009 181,522 1,645,271

total

36.8 rAW MATEriAL riSk

Due to the fixation of a large number of projects to building price indexes or fixed price agreements with sub-contractors, the risk from changes in raw material prices can be regarded as insignificant. Therefore, no derivative hedging activities for raw materials were carried out in 2010.

37 OTHEr iNFOrMATiON

37.1 OTHEr OBLigATiONS AND PrOViSiONS

Individual companies within the ALPINE Group have entered into operating rental and leasing agree-ments with various contractual partners. The agreements cover building, construction equipment and office equipment. The minimum payments resulting from existing agreements to be met in the future are as follows:

in TEUR 31 Dec. 2010 31 Dec. 2009

Due within 1 year 25,576 21,935

Due in 1-5 years 63,351 51,576

Due in more than 5 years 4,648 5,119

total 93,575 78,630


37.2 CONTiNgENT LiABiLiTiES

The company is jointly and severally liable for all joint ventures in which it has interests. The part of the liability which is expected to be borne by other partners is recognised as contingent liability worth TEUR 134,582 (2009: TEUR 110,260).

37.3 ExPENSES FOr AUDiT OF THE CONSOLiDATED FiNANCiAL STATEMENTS

37.4 PENDiNg LiTigATiON

Within the scope of their business activities, companies of the ALPINE Group are involved in litigation. However, the Group does not expect this to have any major detrimental effects on its economic and financial situation.

37.5 rELATED PArTiES

Mr. Dietmar Aluta-Oltyan is a partner in Gewerbepark Urstein GmbH & Co. KG. Endorsed receivables aris-ing from bills of exchange in respect of this company in the amount of TEUR 6,000 were prolonged in December 2010. There is a risk of recourse claim through the endorser up until the bills mature 31 May 2011.

Receivables against Mr. Dietmar Aluta-Oltyan amount to TEUR 532.

Mr. Dietmar Aluta-Oltyan is investor in a quarry. In the year 2010 sales in the amount of TEUR 645 (2009: TEUR 0) and purchases in the amount of TEUR 1,859 (2009: TEUR 0) were made with this quarry. On 31 December 2010 receivables in the amount of TEUR 0 (2009: TEUR 0) and payables of TEUR 682 (2009: TEUR 0) existed.

Mrs. Helena Aluta-Oltyan, the wife of the partner and managing director Dietmar Aluta Oltyan, is manag-ing director/supervisory board member of several subsidiaries.

The remuneration of the management board members of Alpine Holding GmbH and ALPINE Bau GmbH in the financial year amounted to TEUR 3,689 (2009: TEUR 3,591).

The supervisory board members of Alpine Holding GmbH did not receive any remuneration in 2010.

Transactions between the Group and its subsidiaries which are related companies and which were elimi-nated in the course of consolidation are not disclosed in these notes.

in TEUR 2010 2009

Audit 708 484

Other assurance services 391 213

Tax advisory services 6 4

Other services 83 19

total 1,188 720

083

There are no major transactions between Group companies and subsidiaries that are not consolidated.

In the year 2010 sales to FCC Construcción S.A. in the amount of TEUR 3,719 (2009: TEUR 661)and purchases of TEUR 4,634 (2009: TEUR 2,074) were made. On 31 December 2010 receivables in the amount of TEUR 4,625 (31 December 2009: TEUR 1,472), payables of TEUR 5,226 (31 December 2009: TEUR 1,754) and a subordinated loan in the amount of TEUR 38,827 (31 December 2009: 37,673) existed.

In the year 2010 sales to A.S.A Abfall Service AG, also a subsidiary of FCC Group, in the amount of TEUR 1,763 (2009: TEUR 300) and purchases of TEUR 949 (2009: TEUR 640) were made. On 31 December 2010 receivables in the amount of TEUR 350 (31 December 2009: TEUR 9) andpayables of TEUR 104 (31 December 2009: TEUR 111) existed.

The ALPINE Group is part of the FCC Group, which has its domicile in Spain.

37.6 MEMBErS OF THE SUPErViSOrY BOArD

Mr. Dietmar Aluta-Oltyan chairmanMr. Alejandro Tuya Garcia deputy chairmanMrs. Esther Koplowitz Romero de Juseu memberMrs. Esther Alcocer Koplowitz memberMr. Jose Mayor Oreja memberMr. Robert Peugeot member (to 1 March 2011)Mr. Jose Aguinaga memberMr. Willy Böck memberMrs. Alicia Alcocer Koplowitz memberMr. Alfred Gusenbauer member (to 7 May 2010)Mr. Jose Manuel Burgos memberMr. Francisco Martin Monteagudo member (from 22 May 2010)Mrs. Benita Ferrero-Waldner member (from 1 March 2011)

37.7 MANAgEMENT

Mr. Werner Watznauer


38 SigNiFiCANT EVENTS AFTEr THE BALANCE SHEET DATE

In January 2011, the subordinated loan from FCC Construcción S.A., classified as current liability in the amount of TEUR 38.827 was reclassified as non-current liability.

For a project in Germany Alpine has enforced a claim by legal action for allocated construction output. In 2011 damages were claimed at court from the building contractor. Management does not see any legal foundation for this counter-claim.

In connection with a power plant project in Austria, a contractee‘s loaning bank brought in a redhibitory action. Alpine has already conveyed a riposte to the lawsuit. From the management point of view the arguments of the lawsuit can be invalidated. Therefore, no risk is expected in this case, either.




085

We confirm to the best of our knowledge that the consolidated financial statementsgive a true and fair view of the assets, liabilities, financial position and profit or loss ofthe group as required by the applicable accounting standards and that the groupmanagement report gives a true and fair view of the development and performanceof the business and the position of the group, together with a description of theprincipal risks and uncertainties the group faces.



Werner Watznauer m.p.Sole managing director

STATEMENT OF ALL LEgAL rEPrESENTATiVES ALPiNE grOUP


report on the Consolidated Financial statements

We have audited the accompanying consolidated financial statements of Alpine Holding GmbH, Wals-Siezenheim, for the fiscal year from 1 January 2010 to 31 December 2010. These consolidated financial statements comprise the consolidated balance sheet as of 31 December 2010, the consolidated income statement, the consolidated statement of comprehensive income, the statement of changes in equity and the consolidated cash flow statement for the year ended 31 December 2010 and a summary of significant accounting policies and other explanatory notes.

Management’s Responsibility for the Consolidated Financial Statements and for the Accounting System

The Company’s management is responsible for the group accounting system and for the preparation and fair presentation of these consolidated financial statements in accordance with International Financial Reporting Standards (IFRSs) as adopted by the EU. This responsibility includes: designing, implemen-ting and maintaining internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor’s Responsibility and Description of Type and Scope of the Audit

Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with laws and regulations applicable in Austria and Austrian Standards on Auditing, as well as in accordance with International Standards on Auditing (ISAs) issued by the International Auditing and Assurance Standards Board (IAASB) of the International Federation of Ac-countants (IFAC). Those standards require that we comply with professional guidelines and that we plan and perform the audit to obtain reasonable assurance whether the consolidated financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Group’s preparation and fair presentation of the consolidated financial statements in or-der to design audit procedures that are appropriate in the circumstances, but not for the purpose of ex-pressing an opinion on the effectiveness of the Group’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

AUDiT OPiNiON ALPiNE grOUP

087notes to the consolidated financial stateMents

Opinion

Our audit did not give rise to any objections. In our opinion, which is based on the results of our audit, the consolidated financial statements comply with legal requirements and give a true and fair view of the financial position of the Group as of 31 December 2010 and of its financial performance and its cash flows for the fiscal year from 1 January 2010 to 31 December 2010 in accordance with International Financial Reporting Standards (IFRSs) as adopted by the EU.

Without qualifying our opinion we draw attention to paragraph 5.20. of the notes to the consolidated financial statements, describing the uncertainties related to the outcome of lawsuits and the recovera-bility of current receivables in connection with substantial projects under dispute in Poland and Turkey.

Comments on the management report for the Group

Pursuant to statutory provisions, the management report for the Group is to be audited as to whether it is consistent with the consolidated financial statements and as to whether the other disclosures are not misleading with respect to the Company’s position. The auditor’s report also has to contain a state-ment as to whether the management report for the Group is consistent with the consolidated financial statements.

In our opinion, the management report for the Group is consistent with the consolidated financial statements.

Vienna, 11 April 2011

Deloitte Audit Wirtschaftsprüfungs GmbH

Michael Schober m.p. ppa Nikolaus Müller m.p.Certified Public Accountant Certified Public Accountant

LiST OF iNVESTMENTS

Company Domicilenominal capital

in 1,000 Cu

Effective percentage of

ownership

type of consoli-

dation

AustriA

3 G Netzwerk - Errichtungs GmbH *) Vienna EUR 35 76.65% C

ABO Asphalt-Bau Oeynhausen GmbH Oeynhausen EUR 73 17.25% AE

ACOTON - IMM Projektrealisierung GmbH Salzburg EUR 35 36.42% N

ACOTON Projektmanagement & Bauträger GmbH Salzburg EUR 37 76.65% C

Ahrental Abbau- und Aufbereitungsgesellschaft m.b.H. Innsbruck EUR 35 15.71% N

AJS ACOTON Projektm. & Bautr. GmbH & Co KG Salzburg EUR 1 76.65% C

Alpine - Energie Österreich GmbH Linz EUR 750 76.65% C

Alpine - RZDstroy GmbH Vienna EUR 35 38.33% N

ALPINE Bau GmbH Salzburg EUR 5,852 76.65% C

ALPINE BeMo Tunnelling GmbH Innsbruck EUR 2,500 75.88% C

ALPINE Liegenschaftsverwertungs GmbH *) Salzburg EUR 37 76.65% C

Alpine-Rossiskaya GmbH Vienna EUR 35 39.09% N

ALTEC Umwelttechnik GmbH Vienna EUR 614 76.65% C

AMF - Asphaltmischanlage Feistritz GmbH Graz EUR 35 38.33% N

AMF - Asphaltmischanlage Feistritz GmbH & Co KG *) Graz EUR 3 38.33% AE

AMW Asphaltwerk GmbH Weitendorf EUR 727 16.86% AE

Annaberger Zwieselalmbahnen Gesellschaft m.b.H. Annaberg EUR 36 19.16% N

APT Alpine Project Technology GmbH Linz EUR 1,000 76.65% C

Asphaltlieferwerk Leibnitz Baugesellschaft m.b.H. Leibnitz EUR 73 17.25% N

Asphaltmischwerk Betriebsgesellschaft m.b.H. Rauchenwarth EUR 36 15.33% N

Asphaltmischwerk Betriebsgesellschaft m.b.H. & Co KG Rauchenwarth EUR 727 15.33% AE

Asphaltmischwerk Greinsfurth GmbH Amstetten EUR 40 19.16% N

Asphaltmischwerk Greinsfurth GmbH & Co OG Amstetten EUR 600 19.16% AE

Asphaltmischwerk LEOPOLDAU - TEERAG-ASDAG + Mayreder-Bau GmbH Vienna EUR 70 38.33% AE

Asphaltmischwerk LEOPOLDAU - TEERAG-ASDAG + Mayreder-Bau GmbH & Co. KG Vienna EUR 70 15.33% AE

Asphaltmischwerk Steyregg GmbH Linz EUR 35 15.33% N

Asphaltmischwerk Steyregg GmbH & Co KG Linz EUR 454 15.33% AE

Asphaltwerk Sierning GmbH Linz EUR 35 30.66% AE

AWT Asphaltwerk GmbH Stadtschlaining EUR 700 25.30% AE

AWW Asphaltmischwerk Wölbling GmbH Linz EUR 36 38.33% AE

Bautechnische Prüf- und Versuchsanstalt Gesellschaft m.b.H. Himberg EUR 36 76.65% C

Bewehrungszentrum Linz GmbH Linz EUR 35 76.65% C

Blumauerplatz Immobilien Projektentwicklungs GmbH Linz EUR 35 76.65% N

Bonaventura Straßenerhaltungs-GmbH Vienna EUR 35 19.16% AE

Bonaventura Strassenerrichtungs-GmbH Vienna EUR 1,800 34.03% AE

Bürozentrum U 3 ProjektgesmbH Vienna EUR 35 76.65% C

Dolomit-Beton Lieferbetonwerk GmbH Lienz EUR 36 36.80% AE

Draubeton GesmbH Villach EUR 35 26.83% AE

Emberger & Essl GmbH Salzburg EUR 40 68.99% C

Emberger & Heuberger Bau GmbH Salzburg EUR 99 68.99% C

EVG Energieversorgung GmbH Zwettl EUR 35 30.66% N

EVU Energieversorgung GmbH Zwettl EUR 35 18.40% N

EVW Energieversorgung GmbH Zwettl EUR 35 24.91% N

Fels- und Sprengtechnik Gesellschaft m.b.H. Linz EUR 145 76.65% N

Ferro-Betonit-Werke Immobilien Gesellschaft m.b.H. Linz EUR 36 76.65% N

089


in 1,000 Cu


ownership

type of consoli-

dation

FMA Asphaltwerk GmbH & Co KG Feldbach EUR 44 7.67% AE

Fröhlich, Bau- und Zimmereiunternehmen, Gesellschaft m.b.H. Kapfenberg EUR 36 76.65% C

Gaspix Beteiligungsverwaltungs GmbH Zirl EUR 35 19.55% N

Gasteiner Badesee Errichtungs- und Betriebsgesellschaft m.b.H. & Co. KG. Badgastein EUR 182 19.91% N

Geotechnik Systems GmbH Vienna EUR 36 76.65% C

Grund- Pfahl- und Sonderbau GmbH Vienna EUR 365 76.65% C

Grund- und Sonderbau GmbH Himberg EUR 218 76.65% C

HAZET Bauunternehmung GmbH Vienna EUR 1,300 76.65% C

Hemmelmair Frästechnik GmbH Linz EUR 73 19.16% AE

Hoch & Tief Bau Beteiligungs GmbH Salzburg EUR 73 94.00% C

Ing. Arnulf Haderer GmbH Vienna EUR 73 76.65% C

KAI - CENTER Errichtungs- und VermietungsgmbH Graz EUR 36 76.65% C

Kieswerk - Betriebs - Gesellschaft m.b.H. Zams EUR 40 19.16% N

Kieswerk - Betriebs - Gesellschaft m.b.H. & Co. Kommanditgesell-schaft Zams EUR 80 17.25% AE

Klöcher Baugesellschaft m.b.H. Klöch EUR 100 76.65% C

Konrad Beyer & Co Spezialbau GmbH Linz EUR 40 76.65% C

Lieferasphaltgesellschaft JAUNTAL GmbH Klagenfurt EUR 36 18.40% AE

MAS Bau-Projekt und Handelsgesellschaft m.b.H. Vienna EUR 36 76.65% N

Mayreder Hoch- und Tiefbau GmbH Salzburg EUR 35 76.65% N

MLA Beteiligungen GmbH Salzburg EUR 40 76.65% C

MSO Mischanlagen Ilz GmbH & Co KG Ilz EUR 3,270 8.43% AE

Murgalerien Errichtungs- und Verwertungs-GmbH Unterpremstätten EUR 35 38.33% N

MWG Wohnbaugesellschaft m.b.H. Graz EUR 1,090 76.65% C

OEKOTECHNA Entsorgungs- und Umwelttechnik Gesellschaft m.b.H. Perchtoldsdorf EUR 727 76.65% C

Paltentaler Beton Erzeugungs GesmbH Rottenmann EUR 365 18.40% AE

PEM Projektentwicklung Murgalerien GmbH Unterpremstätten EUR 35 38.33% N

PEM Projektentwicklung Murgalerien GmbH & Co KG Unterpremstätten EUR 1 38.33% N

PORR ALPINE Austriarail GmbH Salzburg EUR 37 38.33% AE

Pro Part in Austria Handels GmbH Hohenems EUR 35 76.65% C

Project Development GmbH Salzburg EUR 37 76.65% C

Raststätten Betriebs GmbH Vienna EUR 300 38.33% AE

RBA - Recycling u. Betonanlagen GmbH & Co KG Zirl EUR 581 18.40% AE

RFM Asphaltmischwerk GmbH Wienersdorf-Oeynhausen EUR 73 25.55% N

RFM Asphaltmischwerk GmbH & Co KG Wienersdorf-Oeynhausen EUR 363 25.55% AE

Rußbacher Schilift Gesellschaft mit beschränkter Haftung & Co. KG Rußbach EUR 2,281 16.70% N

Schaberreiter GmbH Kindberg EUR 38 8.43% AE

STRAKA Bau GmbH Neutal EUR 35 39.09% AE

Thalia Errichtungs- und VermietungsgmbH Graz EUR 35 76.65% C

Transportbeton und Asphaltgesellschaft m.b.H. Zams EUR 36 38.33% AE

Transportbeton und Asphaltgesellschaft m.b.H. & Co KG Zams EUR 73 34.50% AE

Transportbetongesellschaft m.b.H. Nussdorf EUR 37 12.26% N

UKH-Linz Errichtungs- und Vermietungs-GmbH Linz EUR 1,497 25.55% N

Universale Bau GmbH Salzburg EUR 50 76.65% C

Waldviertler Lieferasphalt GmbH Horn EUR 40 38.33% N

Waldviertler Lieferasphalt GmbH & Co KG Horn EUR 150 38.33% AE

Weinfried Bauträger GmbH Vienna EUR 36 76.65% C

GErmAny

AD Grundbesitzverwaltung GmbH Eching EUR 60 78.05% C

AE StadtLand GmbH Dresden EUR 256 39.03% AE

Alpine Bau Deutschland AG Eching EUR 10,000 78.05% C



in 1,000 Cu


ownership

type of consoli-

dation

Alpine Building Services GmbH Eching EUR 25 78.05% C

Alpine Project Finance and Consulting GmbH Eching EUR 1,250 76.65% C

Alpine Untertagebau GmbH Eching EUR 26 75.88% C

Alpine-Energie Deutschland GmbH Biberach EUR 3,070 76.65% C

Alpine-Energie Holding AG Biberach EUR 6,000 76.65% C

CSS - City Service Solution GmbH Biberach EUR 103 76.65% C

E. Gottschall & Co GmbH Eching EUR 26 100.00% C

Ferro-Betonit Baugesellschaft mbH Munich EUR 26 76.65% N

Ingenieurbüro für Energie- und Haustechnik Andreas Duba GmbH *) Tröbnitz EUR 25 70.25% C

Stump Spezialtiefbau GmbH Ismaning EUR 4,000 76.65% C

TSK Sand und Kies GmbH Trostberg EUR 153 25.55% N

W+M Wohn- und Gewerbebau GmbH Munich EUR 51 45.99% N

Walter Hamann Hoch-, Tief- und Stahlbetonbau GmbH Berlin EUR 26 78.05% C

WaTI Patentverwertungs GmbH Eching EUR 25 78.05% N

Ziegelwerk Freital Eder GmbH Freital EUR 511 31.22% AE

AlBAniA

Alpine Tirana Sh.p.k. Tirana ALL 615 76.65% N

ALPINE Bau GmbH, Filiali Tirane Sh.p.k. Tirana ALL 100 76.65% C

BosniA-HErZEGoVinA

ALPINE BH doo Travnik Travnik BAM 10 53.66% N

Alpine d.o.o. Banja Luka Banja Luka BAM 2 76.65% C

Alpine Investment d.o.o. Sarajevo BAM 5 39.09% C

Alpine Rudnik Krecnjaka Lapisnica d.o.o. Sarajevo BAM 2 39.09% C

Cesting d.o.o. Žepče BAM 2 32.04% N

OSIJEK-KOTEKS d.o.o. Sarajevo BAM 2 53.40% N

RMG d.o.o. Sarajevo BAM 5 39.09% C

SWIETELSKY - ALPINE d.o.o. Banja Luka BAM 2 32.58% N

BulGAriA

ALPINE - PONS GmbH Sofia BGN 5 39.09% N

Alpine Bulgaria A.D. Sofia BGN 3,855 39.09% C

Alpine Green Energy Bulgaria OOD Sofia BGN 5 38.33% N

Strojinvest - ALPINE GmbH Sofia BGN 5 38.33% N

CHinA

Alpine Mayreder Construction Co. Ltd. AMCC Beijing CNY 30,000 57.49% C

CroAtiA

Asfaltna Cesta d.o.o. Split HRK 20 53.40% C

AUTOBUSNI KOLODVOR OSIJEK d.o.o. Osijek HRK 20 53.40% N

Kappa d.o.o. Osijek HRK 20 53.40% C

OKTAL PLUS d.o.o. *) Zagreb HRK 20 53.40% C

Osijek Koteks d.d. Osijek HRK 44,790 53.40% C

OSIJEK-KOTEKS d.o.o. Zagreb HRK 4,570 53.40% C

Vela Borovica koncern d.o.o. Zagreb HRK 20 76.65% C

VELICKI KAMEN d.o.o. Velika HRK 18,382 53.40% C

091


in 1,000 Cu


ownership

type of consoli-

dation

CZECH rEpuBliC

ALPINE Bau CZ s.r.o. Valašské Meziříčí CZK 135,000 76.65% C

ALPINE-ENERGIE Cesko spol.s.r.o. *) Prague CZK 1,300 76.65% C

MAYREDER BOHEMIA stavebni spolecnost spol. s. r.o. Prague CZK 100 76.65% N

Silasfalt s.r.o. Ostrava-Kuncice CZK 64,000 38.33% AE

Stump - Geospol s.r.o. Prague CZK 3,500 76.65% C

ZNOJMO - CITY a.s. Brno CZK 1,000 38.33% N

GrEAt BritAin

Morgan Beton and Monierbau Limited Edinburgh GBP 25 37.94% N

HunGAry

Alpine Hungária Épitö Kft. Budapest HUF 118,060 76.65% C

BA-ÉP Balaton Aszfalt - és Épitö Kft. Keszthely HUF 9,300 38.33% N

Wellnesshotel Építö Kft. Budapest HUF 3,000 76.65% C

inDiA

Alpine Bau India Private Limited New Delhi INR 100 76.65% C

itAly

ALPINE GREEN ENERGY ITALY S.R.L. *) Misterbianco EUR 10 76.65% C

ALPINE-ENERGIE Solar Italia S.R.L. Bozen EUR 10 76.65% C

SOLAR PARK SERENA S.R.L. *) Manciano EUR 10 53.66% C

luxEmBourG

Alpine Energie Luxembourg S.a r.l. Foetz EUR 750 76.65% C

mACEDoniA

ALPINE MINERALNI SUROVINI DOOEL Skopje MKD 306 76.65% N

Alpine Skopje DOOEL Skopje MKD 306 76.65% C

Alpine-Aleksandar d.o.o. Skopje MKD 310 73.58% C

OSIJEK-KOTEKS SUROVINI DOOEL SKOPJE Skopje MKD 5 53.40% N

montEnEGro

Alpine-Podgorica d.o.o. Podgorica EUR 1 76.65% C

niEDErlAnDE

Stump - Fundierungstechnik B.V. Amsterdam EUR 25 76.65% N

polAnD

ALPINE Bau GmbH A-1 spólka jawna Warsaw PLN 15 76.65% C

ALPINE Construction Polska Sp.z o.o. Cracow PLN 196 78.05% C

Alpine Green Energia Sp.z.o.o. *) Piotrków Trybunalski PLN 199 57.39% C

ALPINE PRO 1 Sp. z o.o Piotrków Trybunalski PLN 5 34.43% N

ALPINE PRO 2 Sp. z o.o. Piotrków Trybunalski PLN 50 57.39% N

ALPINE-ENERGIE Polska Sp.z.o.o. *) Swidnica PLN 200 76.65% C

Alpine-Slask Budowa Sp.z.o.o. Myslowitz PLN 50 76.65% C

Stump Hydrobudowa Sp.z.o.o. Warsaw PLN 330 76.65% C



in 1,000 Cu


ownership

type of consoli-

dation

romAniA

Alpine S.A. Judetul Ilfov RON 3,747 76.65% C

ANDEZIT STANCENI S.R.L. Judetul Mureş RON 1 76.65% C

DDHVENT Bravo S.R.L. Bucharest RON 1 38.33% N

DONAU INVESTMENT S.R.L. Bucharest RON 1 38.33% N

GRANITUL S.A. Bucharest RON 12,256 32.14% N

russiA

OOO "Alpine Mayreder" Moscow RUB 10 76.65% C

SAO Alpine Gaz Moscow RUB 1,500 30.66% N

sErBiA

Alpine d.o.o. Beograd Belgrade CSD 831,496 76.65% C

Alpine Dolomit d.o.o. Petrovac na Mlavi CSD 29,701 76.65% C

Alpine Granit d.o.o. Ljubovija CSD 93,614 76.65% C

Alpine-Porr Constructions d.o.o. Belgrade CSD 835 76.65% N

Grados d.o.o. *) Novi Sad CSD 45 53.40% C

SEVER-JUG AUTOPUT d.o.o. Belgrade CSD 159,553 38.33% N

Strazevica Kamenolom d.o.o. Batocina CSD 263,971 76.65% C

sloVAKiA

Alpine Slovakia spol. s r.o. Bratislava EUR 23,850 76.65% C

D1 Construction s.r.o. *) Bratislava EUR 10 38.33% AE

PPE Malzenice s.r.o. Bratislava EUR 20 38.33% AE

sloVEniA

Alpine Consulting d.o.o. Celje EUR 9 76.65% C

Ecoenergetika d.o.o. Celje EUR 41 76.65% C

switZErlAnD

Alpine-Bau GmbH Hergiswil CHF 100 76.65% C

Alpine-Energie Schweiz AG Oftringen CHF 1,500 76.65% C

PRO-PART AG Oberschan CHF 100 76.65% C

PRO-PART Energie GmbH Oberschan CHF 30 76.65% C

uKrAinE

TOV Alpine Ukraine Kiev UAH 175 76.65% N

Caption for classification of the companies

C = Consolidated

AE = Accounted for at equity

N = Not consolidated companies

*) New companies within the consolidation range

093

4 MANAgEMENT rEPOrT FOr THE FiSCAL YEAr 2010 ALPiNEHOLDiNg gMBH

1 DEVELOPMENT OF THE CONSTrUCTiON iNDUSTrY iN 2011

The construction industry is expected to gradually and globally resume a growth path in 2011. In 2011, the building sector expects a global 4.9 % increase over the previous year in gross value added after it had suffered from a severe performance decline during the economic crisis 2008/2009 and only had a very conservative growth in 2010. However, the industry’s growth dynamic will show quite differently in individual regions - particularly in individual countries. For instance, construction volumes in 2011 will mainly be influenced by governmental budget consolidation measures, particularly in Europe, and con-sequential cuts in public construction investments. Another decisive factor will be whether the private sector in countries severely affected by the economic crisis recovers and returns to making long-term investments.

In Europe, differentiation is necessary between old and new EU countries. While a 6.6 % growth of the construction industry is expected in 2011 in Central Eastern European EU countries (measured by gross value added), Western Europe experts (EU 15) are more skeptical: They expect a mere 1.0 % increase over 2010. The comparatively lower rate of growth in Western Europe is reflected in the forecasts for the industry’s development on ALPINE home markets: In 2011, the most significant increase in construc-tion volume is expected for Germany at 1.3 % and the increase in Switzerland and Austria will most likely be at 1.1 % or 0.7 % respectively (always compared with the previous year).

To a large extent the predicted development in Poland is responsible for the fact that the 2011 Central Eastern European construction industry is expected to grow faster than its West European counterpart: In Poland, the construction output is expected to grow at +12.7 % far beyond the Central Eastern Eu-ropean average (compared to the previous year) aided by stable domestic demand and preparations for the European Soccer Championship 2012. In 2011, the construction industry will not grow in all Central Eastern Europe countries such as the Czech Republic, where a decrease of 3.2 % is expected.

Even though no exact forecasts are available yet, 2011 will be a difficult year for the construction indus-try in Southeastern Europe. The construction volume in Southeastern Europe will rather decline or - at the best - remain stable due to declining governmental investments and a flagging private demand.

Particularly high 2011 growth rates in the building industry are expected for the Emerging Markets (par-ticularly for the BRIC countries): Compared with 2010, gross value added in the construction industry is expected to grow in India by 11.8 %, in Russia by 9.5 % and in China by 9.4 %.

2011 will hold many challenges for the Austrian construction industry. Due to a tight budget, the gov-ernment is expected to award contracts very conservatively. Whether private construction investment projects will be able to compensate a fall in demand on the part of national, regional and local govern-ments depends on the macroeconomic development in Austria. For 2011, Euroconstruct experts expect an increase of the construction volume in Austria versus 2010 by 0.7 %.

095

2 BUSiNESS TrEND

Alpine Holding GmbH itself is not involved in operative business. In addition to maintain the holding in the Alpine group its main purpose is ensuring the financing of operative group companies. During this business year, this has been achieved on the one hand through the emission of corporate bonds and on the other hand by assuming corporate liabilities to collateralize long-dated credit agreements entered into by the Alpine group companies as part of the Corporate Liquidity Strengthening Act (Unterneh-mensliquiditätsstärkungsgesetz - ULSG).

PrOFiTABiLiTY

Balanced net expenses from other operating income and expenses in this economic year is 591.9 TEUR (previous year: net earnings 1.1 TEUR).

Earnings from investments are composed of in-phase dividend payouts of Hoch & Tief Bau Beteiligungs GmbH, Salzburg in the amount of 1,175.0 TEUR and of E. Gottschall & Co Bauunternehmung GmbH, Ech-ing in the amount of 2,767.6 TEUR.

The interest income accounts for balanced net earnings in the amount of 104.5 TEUR (previous year: -10.2 TEUR).

FiNANCiAL POSiTiON

The balance sheet total as of 31 Dec. 2010 of Alpine Holding GmbH increased due to the issuance of corporate bonds to 112,091 TEUR (previous year: 5,970 TEUR).

Financial investments remained at 5,966 TEUR and did not change compared to 2009.

During the business year, receivables from affiliated companies increased to 105,834 TEUR (previous year: 0 TEUR). Other receivables decreased to 0.05 TEUR (previous year: 0.2 TEUR).

Equity has increased by 3,453 TEUR to 9,170 TEUR. Considering the increase of the amount in total assets by 106.1 million Euro, the equity ratio has decreased to 8.2 %.

ManaGeMent report for the fiscal Year 2010

3 riSk MANAgEMENT

Risks are inherent to business management. The objective of ALPINE’s group-wide risk management system is to detect such risks early, to monitor them and to take measures to minimize such risks. Man-agement and central staff units at Alpine Bau GmbH are responsible for the risk management functions of Alpine Holding GmbH.

Procurement risks, market and competitive risks and project risks do not exist at the Alpine Holding GmbH and are being dealt with by the operative group companies.

MANAgEMENT OF FiNANCiAL riSkS

Currency risks, interest rate risks and liquidity risks are managed by the central finance unit in the group. Additionally, this unit continuously monitors credit limits and debt guarantee lines.

CUrrENCY riSk

Currency risks are being dealt with by operative group companies. There is no currency risk at Alpine Holding GmbH.

iNTErEST rATE riSk

The objective in structuring a financing portfolio is to adjust fixed interest periods to the terms of financed assets.

Currently, there is no interest rate risk at Alpine Holding GmbH because the corporate bonds have a fixed interest rate for their total currency.

LiqUiDiTY riSk

In order to control the liquidity risk (i.e. the risk that a group company may not be able to pay operational and financial liabilities) ALPINE Group sets up a monthly, rolling liquidity planning with a six- to twelve-month horizon. All planning data of all group companies are added by means of a bottom-up approach and operational money flows are continuously adjusted against the financing portfolio. Monthly non-conformance analyses ensure the required planning quality.

097

rEPOrTiNg ON THE MAjOr CHArACTEriSTiCS OF THE iNTErNAL CONTrOL AND riSk MANAgEMENT SYSTEM AS rELATED TO THE ACCOUNTiNg PrOCESS

The accounting process is also integrated into the group wide ALPINE risk management system.

Control environment: The basis of the internal control system are group policies applicable to the entire group. The supervision is performed on behalf of Alpine Holding GmbH by the responsible central staff units and management.

Risk assessment: When preparing balance sheets it is inevitable that assumptions and estimations have to be made at the risk that expected future developments will deviate from actual developments. In regards to Alpine Holding GmbH, this applies to the collectability of receivables and the intrinsic value of investments.

Control measures: Supervision is performed responsible central staff units and management. These are intended to ensure that errors in financial reporting are avoided and/or discovered and corrected. Information and communication: Financial information is sent in a structured format to all levels of responsibility at regular intervals so that supervisory and controlling functions can be performed. Group policies are updated as needed and communicated to the responsible units.

Supervision: The supervision of the accounting process is performed by the responsible persons at different levels of detail which depends on the organisational level. Inspections and plausibility checks are performed at regular intervals.

ManaGeMent report for the fiscal Year 2010

4 OUTLOOk As the holding company within the group, we predict the following future development of the ALPINE Group:

A global recovery of the economic situation is forecast for the construction industry in 2011. However, this deve-lopment requires a very differentiated and detailed evaluation. For instance, the situation in Europe will continue to be dominated by budget consolidation and investment cuts of individual countries and end up considerably more restrictive than in countries assigned to the emerging markets such as Russia, India or China. In those countries, a growth of up to 11 % is currently assumed. Austria remains the most important market for ALPINE even though the situation will continue to be difficult because of the hesitant implementation of large-scale projects, particular-ly in the infrastructure sector.

Numerous implications of this development will additionally complicate the current situation. For instance, a defini-te worsening of payment practices is noticeable and the economic conditions are characterised by high long-term receivables and difficult financing conditions. These repercussions can be softened for ALPINE by consolidation measures already initiated and a restructuring process already well advanced. This course will be maintained in the years to come in order to make profitability even more efficient. In this context, the group’s organisational structure will be reviewed and newly aligned. In coordination with the parent company FCC, standards are being implemented to make processes more efficient and to facilitate coordination. Centralisation is the strategic objective. This will allow the utilisation of additional organisational potentials.

Development opportunities in markets we are already active in are being reviewed and newly assessed. Due to low growth, Austria will lose shares in the group’s overall construction output. In contrast, great potential is envisioned in Germany, Poland and Asian countries in which we are already active. An important role for ALPINE plays the expansion into particularly Arabian markets.

The ALPINE-ENERGIE business areas continue to provide great potential. The markets develop in our favour, parti-cularly in the area of sustainable energy generation. Thus we assume a continued sound growth of the company that will increasingly strengthen the group’s economic performance.

A group order value of 3.3 billion Euro is a solid basis for the successful implementation of these objectives and a continued positive development. In comparison with 2010, we expect unchanged results for 2011 and the same level of construction output. We therefore assume a stable progress in the coming years and will continue to strengthen the company.

No events occurred after the balance sheet date for Alpine Holding GmbH that would lead to changes in the pre-sentation of the consolidated financial statements.

Wals bei Salzburg, March 30th 2011



099

5 ANNUAL FiNANCiAL STATEMENTS AS PEr 31 DECEMBEr 2010 ALPiNE HOLDiNg gMBH

31 Dec. 2010 in EUR 31 Dec. 2009 in TEUR

AssEts

A Fixed Assets

I Financial Assets

1. Shares in affiliated companies 5,965,692.74 5,965.7

B Current Assets

I Receivables and other assets

1. Receivables from affiliated companies 105,834,105.19 0.0

2. Other receivables and assets 49.21 0.2

II Cash on hand and at bank 147,742.25 3.7

105,981,896.65 3.9

C Deffered charges

1. Disagio bond 143,100.00 0.0

112,090,689.39 5,969.6

Equity AnD liABilitiEs

A Equity

I Share capital 109,009.25 109.0

II Capital reserves

1. Unappropriated 91,754.08 91.8

III Revenue reserves 10,998.67 0.1

1. Statutory reserves 10,900.93 0.0

2. Other reserves (free reserves) 97.74 0.1

IV Total Profit 8,958,606.55 5,516.1

1. Profit carried forward 5,516,105.19 5,527.0

2. Profit for the year 3,442,501.36 -10.9

9,170,368.55 5,717.0

B provisions

1. Other provisions 71,919.24 0.9

C liabilities

1. Liabilities due to banks 100,000,000.00 0.0

2. Liabilities of trade 223,401.60 0.0

3. Liabilities to affiliated companies 0.00 251.7

4. Other liabilities 2,625,000.00 0,0

102,848,401.60 251.7

112,090,689.39 5,969.6

Contingent liabilities 294,697,864.39 16,418.0

BALANCE SHEET AS OF 31 DECEMBEr 2010

101

2010 in EUR 2009 in TEUR

1 Other operating income

a. Income from the reversal of provisions 120.00 2.3

b. Other 293,755.27 240.8

2 Other operating expenses

a. Other -885,805.33 -242.0

3 opertating results (subtotal from line 1 to 2) -591,930.06 1.1

4 Income from shares 3,942,580.00 0.0

(thereof affiliated companies EUR 3,942,580.00; prior year. TEUR 0.00)

5 Interest received and similar income 2,751,029.33 0.2

(thereof affiliated companies EUR 2,750,746.71; prior year. TEUR 0.00)

6 Interest and similar expenses -2,646,526.98 -10.4

(therof affiliated companies EUR 5,626.98; prior year TEUR 10.4)

7 Financial result (subtotal from line 4 to 6) 4,047,082.35 -10.2

8 income from ordinary business activities 3,455,152.29 -9.1

9 Taxes on income -1,750.00 -1.8

10 net profit/loss for the year 3,453,402.29 -10.9

11 Allocation to statutory reserves -10,900.93 0.0

12 profit/loss for the year 3,442,501.36 -10.9

13 Profit carried forward 5,516,105.19 5,527.0

14 total profit 8,958,606.55 5,516.1

iNCOME STATEMENT FOr THE YEAr 2010

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103

6 NOTES FOr THE FiNANCiAL YEAr 2010 ALPiNE HOLDiNg gMBH

i PrEFACE

The financial statements have been drawn up in accordance with the provisions of the Austrian Com-pany Code (ACC) in the most recent version obeying generally accepted accounting principles in Austria and in order to present a true and fair view of the company’s assets, liabilities, financial position and profitability

The income statement expenses have been classified by nature.

ii ACCOUNTiNg AND VALUATiON POLiCiES

In preparing the financial statements the principle of completeness has been observed. In evaluating the individual assets and liabilities, the principle of individual valuation has been observed and the company has been assumed to be a going concern. The principle of prudence has been taken into account by only recognizing profits realized on the cut-off-date. All identifiable risks and imminent losses have been taken into account.

The accounting policies have in principle been applied consistently.

FixED ASSETS

Financial assets are carried at lower of cost or market at balance sheet date. Non-scheduled depreciation is undertaken, if impairment has occurred, which is likely to be permanent.

Reversals are undertaken if value recovery of non-scheduled depreciation has taken place.

CUrrENT ASSETS

rECEiVABLES AND OTHEr ASSETS

Receivables and other assets are recognized at the nominal amount. Identifiable risks are recognized by means of individual valuation allowances.

PrOViSiONS

Provisions are accounted for all risk identifiable on the date on which the financial statements were prepared with the amount of the probable outflow of resources, taking into consideration the principle of prudence.

LiABiLiTiES

Liabilities are recognized at the repayment amount taking into consideration the principle of prudence.


Share capital 109,009.25 109.0

Capital reserves 91,754.08 91.8

Revenue reserves 10,998.67 0.1

Total profit 8,958,606.55 5,516.1

Equity 9,170,368.55 5,717.0

in EUR

Total profit 31 Dec. 2009 5,516,105.19

Distribution referred to decision 0.00

Profit carried forward 5,516,105.19

Net income for the year 2010 3,442,501.36

total profit 31 Dec. 2010 8,958,606.55

The total profit that is shown in the balance sheet per 31 December 2010 is derived from the previous year’s balance sheet as follows:

iii ExPLANATOrY NOTES ON THE BALANCE SHEET

ASSETS

FixED ASSETS

The development of the fixed assets is represented in the fixed assets schedule.

The shares of the affiliated companies can be broken down as follows.

Hoch & Tief Bau Beteiligungs GmbH Share 94% EUR 3,341,257.33E. Gottschall & Co. Bauunternehmung GmbH Share 100% EUR 2,624,435.41

rECEiVABLES AND OTHEr ASSETS

The receivables have the following terms:

EqUiTY AND LiABiLiTiES

EqUiTY

notes for the financial Year 2010

in EUR yearres. term

< 1 yearres. term

> 1 year total

Receivables from affiliated companies

2010 105,834,105.19 0.00 105,834,105.19

2009 0.00 0.00 0.00

Other receivables andassets

2010 49.21 0.00 49.21

2009 177.40 0.00 177.40

2010 105,834,154.40 0.00 105,834,154.40

2009 177.40 0.00 177.40

105

PrOViSiONS

The other provisions were formed according to the expecting impositions.

LiABiLiTiES

The liabilities have the following terms:

BONDS

By the Alpine Holding GmbH a company bond with the valuta of 1 July 2010 was emitted. The conditions are:

Issuer Alpine Holding GmbHVolume in EUR 100,000,000.00Denomination in EUR 1,000.00Maturity 2010-2015Repayment final maturity at 100 % of the nominal valueNominal interest rate 5.25 % p.a.Coupon 1 July annuallyPublic offering Vienna Stock Exchange, organized regulated marketJoint Lead UniCredit Bank Austria and BAWAG PSKISIN AT0000A0JDG2

The emission of the bond was used to finance the capital expenditures and the working capital, as well as to optimize the pattern of finance.

in EUR year res. term < 1 year res. term > 1 year res. term > 5 year total

Bonds2010 0.00 100,000,000.00 0.00 100,000,000.00

2009 0.00 0.00 0.00 0.00

Liabilities from trade2010 223,401.60 0.00 0.00 223,401.60

2009 0.00 0.00 0.00 0.00

Liabilities to affiliated companies

2010 0.00 0.00 0.00 0.00

2009 251,672.50 0.00 0.00 251,672.50

Other liabilities2010 2,625,000.00 0.00 0.00 2,625,000.00

2009 0.00 0.00 0.00 0.00

2010 2,848,401.60 100,000,000.00 0.00 102,848,401.60

2009 251,672.50 0.00 0.00 251,672.50


Guarantees for affiliated companiesAlpine Bau GmbH, letter of comfort Porsche Bank AG 294,697,864.38 16,418

CONTiNgENT LiABiLiTiES

The contingencies result from credit guarantees in the form of guarantees and collaterals for ALPINE Bau GmbH and affiliated companies.

In 2009 ALPINE Bau GmbH has already signed a loan agreement within the frame of the Austrian Com-panies Liquidity Strengthening Act (ULSG) of the amount of EUR 200,000.00 and Alpine Holding GmbH assumed liability up to the full amount. The utilisation of the amount available was only made beginning with the year 2010. Therefore, Alpine Holding GmbH shows the amount for the first time in the financial statement of 2010.

In December 2010 another credit agreement within the frame of the ULSG, from Alpine Bau Hergiswil, Switzerland, was signed and Alpine Holding GmbH assumed liability up to the full amount of EUR 160,000,000.00. The utilisation of the amount available was only made beginning with the year 2011. Therefore, Alpine Holding GmbH shows the amount for the first time in the financial statement of 2011.

The ULSG was passed because of the tense situation on capital markets and economic situation in 2009. On this legal basis the Republic of Austria can assume liabilities for economically healthy big Austrian enterprises to alleviate them the access to credit instruments.

Furthermore a note of exchange and a note of exchange dedication declaration are existing to the amount of EUR 30,000,000.00, for a guarantee credit agreement taken out on 1 April 2010.

At the request of ALPINE-Group the Republic of Austria, represented by “Österreichische Kontrollbank (OeKB)”, assumed liabilities for the mentioned loans at the total amount of EUR 180 Mio. (This equals in each case 50% of the credit amount). A basic requirement for this assumption of liability was a collater-alization of the loan from the parent company of ALPINE-group, Alpine Holding GmbH.

The subsidiary ALPINE Bau GmbH, that is the owner of all operative affiliated companies of ALPINE-Group, is either debtor or another guarantor and therefore represents the essential economic basis for granting and repaying the loans. Having this background in mind the management of Alpine Holding GmbH assesses these loan arrangements directly associated with the economic and financial perfor-mance of ALPINE Bau GmbH and its affiliated companies. As a consequence the management sees no disproportion between the assumed liabilities and the capitalization of Alpine Holding GmbH.

notes for the financial Year 2010 107

iV OTHEr DiSCLOSUrES iNFOrMATiON CONCErNiNg THE PArENT COMPANY

The consolidated financial statements for the smallest group of companies is drawn up by Alpine Holding GmbH (FN 36605g) with registered office in Wals-Siezenheim and can be obtained from the commercial register at the Regional Court of Salzburg.

The consolidated financial statements for the largest group of companies are drawn up by Fomento de Construcciones Y Contratas S.A. and can be viewed on the website www.fcc.es.

iNFOrMATiON ACCOrDiNg TO § 238 z 2 ACC

iNFOrMATiON CONCErNiNg THE ExECUTiVE BODiES OF THE COMPANY AND THE EMPLOYEES

NUMBEr OF EMPLOYEES

The company doesn’t have employees.

ExECUTiVE BODiES OF THE COMPANY

Werner Watznauer is the exclusive managing director.

MEMBErS OF THE SUPErViSOrY BOArD

Mr. Dietmar Aluta-Oltyan chairmanMr. Alejandro Tuya Garcia deputy chairmanMrs. Esther Koplowitz Romero de Juseu memberMrs. Esther Alcocer Koplowitz memberMr. Jose Mayor Oreja memberMr. Robert Peugeot member (to 1 March 2011)Mr. Jose Aguinaga memberMr. Willy Böck memberMrs. Alicia Alcocer Koplowitz memberMr. Alfred Gusenbauer member (to 7 May 2010)Mr. Jose Manuel Burgos memberMr. Francisco Martin Monteagudo member (from 22 May 2010)Mrs. Benita Ferrero-Waldner member (from 1 March 2011)

Wals bei Salzburg, 30 March 2011 The management


in EUR share in % Equitylast stated annual net profit or

annual deficit stated year

Hoch & Tief Bau Beteiligungs GmbH, Salzburg 94% 2,102,044.11* -3,683.84 2010

E. Gottschall & Co Bauunternehmung GmbH, Eching 100% 37,633.35* 6,976.00 2010

* after in-phase dividend payout

We confirm to the best of our knowledge that the separate financial statements give atrue and fair view of the assets, liabilities, financial position and profit or loss of theparent company as required by the applicable accounting standards and that themanagement report gives a true and fair view of the development and performanceof the business and the position of the company, together with a description of theprincipal risks and uncertainties the company faces.



Werner Watznauer m.p.Sole managing director

notes for the financial Year 2010 109

STATEMENT OF ALL LEgAL rEPrESENTATiVES ALPiNE HOLDiNg gMBH

report on the Financial statements

We have audited the accompanying financial statements of Alpine Holding GmbH, Wals-Siezenheim, for the fiscal year from 1 January 2010 to 31 December 2010. These financial statements comprise the balance sheet as of 31 December 2010, the income statement for the year ended 31 December 2010 and the notes.

Management’s Responsibility for the Financial Statements and for the Accounting System

The Company’s management is responsible for the accounting system and for the preparation and fair presentation of financial statements in accordance with Austrian Generally Accepted Accounting Prin-ciples. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making ac-counting estimates that are reasonable in the circumstances.

Auditor’s Responsibility and Description of Type and Scope of the Audit

Our responsibility is to express an opinion on these financial statements based on our audit. We con-ducted our audit in accordance with laws and regulations applicable in Austria and Austrian Standards on Auditing. Those standards require that we comply with professional guidelines and that we plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evalua-ting the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

Our audit did not give rise to any objections. In our opinion, which is based on the results of our audit, the financial statements comply with legal requirements and give a true and fair view of the financial position of the Company as of 31 December 2010 and of its financial performance for the fiscal year from 1 January 2010 to 31 December 2010 in accordance with Austrian Generally Accepted Accounting Principles.

AUDiT OPiNiON ALPiNE HOLDiNg gMBH

111notes for the financial Year 2010

Comments on the management report

Pursuant to statutory provisions, the management report is to be audited as to whether it is consistent with the financial statements and as to whether the other disclosures are not misleading with respect to the Company’s position. The auditor’s report also has to contain a statement as to whether the manage-ment report is consistent with the financial statements.

In our opinion, the management report is consistent with the financial statements.

Vienna, 11 April 2011

Deloitte Audit Wirtschaftsprüfungs GmbH

Michael Schober m.p. ppa Nikolaus Müller m.p.Certified Public Accountant Certified Public Accountant

puBlisHErAlpinE Holding GmbH · Marketing & Corporate CommunicationAlte Bundesstraße 10 · 5071 Wals/Salzburg · Austria · Telephone +43 662 8582-0 · Fax -9900 [email protected] · www.alpine.at

ConCEpt & rEAlisAtionspielplatz.cc // Concept AlpinE // Text: Andreas Eder, Marina Pollhammer // Design: Florian Frandl

pHotoGrApHyAndreas Hofer // Concept photo galleryAlexander Vorderleitner // Portrait ALPINE ManagementAlpinE photo archive // Remaining photos

notiCEquestions: Please contact Andreas Eder, E-Mail: [email protected] / Telephone +43 662 8582-280Gender neutral wording: To make reading easier we did not differentiate between the genders. Terms apply equally to both genders within the meaning of equal treatment.safety: All safety regulations have been complied with during the shooting of pictures displayed.notice concerning the rounding of figures: The use of rounded amounts and percentages may lead to slight deviations because of financial rounding.

© 2011 AlpinE Holding GmbH The German version applies in case of any differences. Typographical and printing errors subject to change.

iMPriNT

113

AlpinE Holding GmbHAlte Bundesstraße 10 · 5071 Wals/Salzburg · Austria · Telephone +43 662 8582-0 · Fax [email protected] · www.alpine.at

ALPINE Jahresfinanzbericht2 2010 En

Documents

alpine group031

alpine holding gmbh103

financial year

alpine group085 statement

alpine group037 notes

fiscal year

previous year

construction industry