TO BE SUCCESSFUL YOU HAVE TO ABLE TO STAND SOME rough climate.

Annual Financial Report of ALPINE Holding GmbH for the Year 2010

key figures
in TEUR Construction output in Austria in Germany in remaining countries abroad Orders in hand Operating income Profit before tax Profit after tax Operating cash flow 2004 1,911,587 1,221,075 412,395 278,117 1,645,166 64,433 43,089 33,882 83,310 2005 2,009,724 1,251,038 365,436 393,250 2,052,622 54,087 49,759 36,325 96,186 2006 2,266,472 1,408,785 305,532 552,155 2,175,574 20,888 8,371 3,236 65,698 2007 2,595,002 1,472,057 371,943 751,002 3,054,091 67,441 44,457 30,557 121,624 2008 3,506,385 1,805,410 577,524 1,123,451 3,099,065 105,543 55,095 36,164 174,514 2009 3,364,920 1,601,695 661,580 1,101,645 3,371,801 56,859 22,617 16,428 127,510 2010 3,201,142 1,521,038 695,843 984,261 3,322,657 47,914 23,673 17,199 100,435

Total equity and liabilities Equity Equity ratio Return on sales (ROS) Return on equity (ROE) Employees * in Austria in Germany in remaining countries abroad Construction output / employee * Annual average

947,085 219,446 23.2% 3.4% 21.3% 8,146 6,445 825 876 235

1,151,169 248,177 21.6% 2.7% 21.3% 10,750 6,301 1,065 3,384 187

1,408,311 256,801 18.2% 0.9% 3.3% 12,748 7,174 1,248 4,326 178

1,757,704 304,227 17.3% 2.6% 15.8% 13,648 7,321 1,542 4,785 190

2,134,541 377,571 17.7% 3.0% 16.2% 15,530 7,873 1,893 5,764 226

2,064,350 397,197 19.2% 1.7% 5.8% 15,234 7,588 2,094 5,552 221

2,301,039 411,704 17.9% 1.5% 5.9% 15,057 7,670 2,431 4,955 213

GROUP STRUCTURE
Simplified presentation

D. AlutaOltyan
17 %

FCC Construccin S.A.

83 %

Alpine Holding GmbH

94 %

Hoch- & Tiefbau BeteiligungsgmbH

81.544 %

6%

ALPINE Bau GmbH

17.632 %

Subsidiaries and holdings

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

Sincler S.A.

0.824 %

03

content
007 031 037 085 086 088 093 099 103 109 110 Group Management Report 2010 alpine Group Consolidated Financial Statements for the Year 2010 alpine Group Notes to the Consolidated Financial Statements for the Year 2010 alpine Group Statement of All Legal Representatives alpine Group Audit Opinion ALPINE Group List of Investments Management Report for the Fiscal Year 2010 ALPINE Holding GmbH Annual financial statements as per 31 December 2010 ALPINE Holding GmbH Notes for the Financial Year 2010 ALPINE Holding GmbH Statement of all Legal Representatives alpine Holding GmbH Audit Opinion ALPINE Holding GmbH

112 Imprint

1 Group Management Report 2010 alpine 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 industrys 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 consequential 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 industrys development on ALPINE home markets: In 2011, the most significant increase in construction 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 European 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 industry 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 (particularly 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 government 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 governments 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 %.

Group Management Report 009

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 (BB) 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 following 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.

In the first half-year, we have completed the contract for the construction of a new harbour gate including 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 completion 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 TransEuropean 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 Niedersterreich Arena in St. Plten 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

Group Management Report 011

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 Construccin. The completion 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 RhineHerne-Channel or dredging works at the Khlfleet 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 terminal buildings and performed special foundation works. In Berlin, we have constructed the 118 m high building Zoofenster as a turnkey project. The construction of the residential and office building K-Blick in Dsseldorf was also started in 2010. Works for the second largest railway bridge in Germany across the Unstrut Valley and the new construction 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 economic 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.

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 countrys 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 construction industry; both building construction and civil engineering were retrogressive. The industrys outlook is more optimistic and the infrastructure sector in particular will benefit from the governments and the EUs investment plans. The East European OMV centre Petrom City was handed over in August 2010. This large-scale project was an impressive demonstration of ALPINEs competence in international building construction and as a general contractor in construction. In July 2010, the landfill project Titu Aninoasa was completed.

Group Management Report 013

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 negative 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 construction 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 settle 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, Macedonia 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 European 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 particular effects on the countrys 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 Pozna 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 competitors objection was rejected and on 1 Oct. 2010 the customer GDDKiA (Generaldirektion fr Bundesstraen und Autobahnen - Directorate General for Federal Roads and Motorways) and ALPINE signed the contract. The Motorway A1 road section 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 Pozna and Wroclaw including a bypass road.

Group Management Report 015

Russia
The countrys economic development stabilised in 2010 because world trade has recovered and caused Russias 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, forecasting 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 engineering 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 subsidiary company of the Russian state railroad. A first success was the signing of a contract for preparatory 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 countrys 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 governments 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 countrys 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 October. The customer gave up on the original D1 PPP Project with about 30 km motorway and 28 bridges between the villages Hriovsk Podhradie and Dubn Skala the contract was not renewed. The railway of Slovakia - eleznice Slovenskej republiky (ZSR) upgrades the railway line Nov Mesto nad Vhom - Pchov for speeds up to 160 km/h. This line is a part of the TEN-T network and the V. European 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 economic 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 engineering 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 crisisrelated 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 reorganise national finances through a series of consolidation measures. The countrys 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 construction 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.

Group Management Report 017

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 distribution 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 construction of the St. Gotthard base tunnel and directly connected Erstfeld and Bodio for the first time.

Asia China
The Peoples 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 demand. 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 imminent; 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 addition 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 economys 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 momentum 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 sections 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.

Group Management Report 019

Singapore
After a slight economic performance slump in the previous year, Singapores 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, Singapores 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, Singapores 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 awarded 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 Emirates 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.

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 differences 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.

Breakdown of construction output by fields of operation

2010

in thousand Euro
Change in % -7.14 -10.60 26.63 17.18 -4.87

2009

Building- and Power Station Construction Civil Engineering Communication / Energy Other Group

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

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

Breakdown of construction output by regions

2010 2009

in thousand Euro
Part attributable to construction output 2010 in %

Change in %

Order value 31 Dec. 2010

Austria Germany Southeastern Europe Northeastern Europe Rest of Western and Northern Europe Asia Group

1,521,038 695,843 396,950 347,097

1,601,695 661,580 601,622 278,377

-5.04 5.18 -34.02 24.69

47.52 21.74 12.40 10.84

944,480 838,503 462,706 435,003

131,335 108,879 3,201,142

115,995 105,651 3,364,920

13.22 3.06 -4.87

4.10 3.40 100.00

334,138 307,827 3,322,657

Group Management Report 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 investment 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 million 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 funding 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 500 400 300 200 100 2007 439

< 1 year

in MEUR 500

1-3 years

in MEUR 500 400

> 3 years

402 316 320

400 300 200 100 78 2007 2008 2009 2010 232 338 355

300 200 100 95 2008 2009 2010

171 74 2007

192

2008

2009

2010

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. Significantly 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 %.

Calculation of Net debt

in thousand Euro
31 Dec. 2010 31 Dec. 2009 787,785 374,417 0 37,673 200,206 211,884

Total credit line Credit used Bond 2010-2015 (nominal 100 million EUR) Loan FCC Cash on bank Net debt

726,838 371,631 101,968 38,827 265,638 246,788

Group Management Report 023

4 Risk Management
Risks are inherent to business management. The objective of ALPINEs 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 comprehensively 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 instruments 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 longterm 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 twelvemonth 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 nonconformance 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 information on debtors. They are assisted by the central debtor department that also takes care of coordination. In order to avoid bad debts, a contracting partys 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 advance 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 ALPINEs 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 mandatory 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 approval 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 responsible, operational unit.

Group Management Report 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 different 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 successfully fill a large number of open positions. Despite difficult economic conditions, personnel development and training has been consistently continued. More than 2,500 employees in Austria attended in-house training. In addition to intensive further-training programs for engineers, construction site managers and executives, 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 collaboration with the Vienna University (Universitt 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 Institutes (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 during 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.

Group Management Report 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 aspects as part of an ISO 14001 compliant environmental management system. Environmental targets and measures are derived and implemented on the basis of environmentally relevant activities recorded across the entire group. This results in a considerable contribution to the protection of the environment. In projects, ALPINE pays particular attention to ecological methods of construction. 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 Citys koBusinessPlan. 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. Environmentally harmful material is stored according to legal requirements and used sensitively. ALPINEs 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 ALPINEs subsidiary Bautechnische Prf- 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, standardization, 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 sterreichische Forschungsfrderungsgesellschaft (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, deformation 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 employees 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.

Group Management Report 029

8 Outlook
A global recovery of the economic situation is forecasted for the construction industry in 2011. However, this development 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, 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 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 groups 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 groups 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, particularly in the area of sustainable energy generation. Thus we assume a continued sound growth of the company that will increasingly strengthen the groups 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 Construccin 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 clients 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 claims arguments can be refuted. Therefore it does not see a risk in this case either. Wals bei Salzburg, 30 March 2011 Alpine Holding GmbH The Management Board

Werner Watznauer m.p.

031

2 consolidated financial statements for the year 2010 alpine group

Consolidated Income Statement for the year 2010

in thousand Euro 1 Construction output less joint venture output Sales net of joint venture output 2 Income from associated companies Work performed by the enterprise and 3 capitalised 4 Other operating income 5 Raw material and consumables used 6 Expenses for services 7 Staff cost 8 Depreciation and amortisation 9 Other operating expenses Profit from operating activities 10 Net interest expenses 11 Exchange differences 12 Other financial results Net finance cost Profit before tax 13 Income taxes Net profit for the period Thereof attributable to equity holders of the parent company Thereof attributable to non controlling interest The notes on pages 37 to 92 form an integral part of the consolidated financial statements. 15 12 13 14 9 10 11 8 7 6 Note 2010 3,201,142 -452,587 2,748,555 24,656 13,602 74,852 -616,392 -1,111,575 -737,533 -56,820 -291,431 47,914 -25,321 223 857 -24,241 23,673 -6,474 17,199 16,416 783 2009 3,364,920 -520,093 2,844,827 2,527 15,164 99,100 -633,917 -1,219,761 -717,377 -66,823 -266,881 56,859 -20,905 -14,057 720 -34,242 22,617 -6,189 16,428 11,606 4,822

consolidated financial statements 033

Consolidated statement of comprehensive income 2010

in thousand Euro Net profit for the period Revaluation IAS 16 Gains/losses arising during the year Revaluation IAS 39 Gains/losses arising during the year Reclassification adjustments for amounts recognised in profit or loss Unrealised revenues/losses from the valuation of Hedges Revenue/loss before income taxes Gains/losses arising during the year Reclassification adjustments for amounts recognised in profit or loss Income taxes Gains/losses arising during the year Reclassification adjustments for amounts recognised in profit or loss Change of equity of an equity-consolidated company without effects on net income Net investment Revenue/loss before income taxes Gains/losses arising during the year Income taxes Gains/losses arising during the year Currency translation differences Exchange differences arising during the year Total comprehensive income Thereof attributable to equity holders of the parent company Thereof attributable to non controlling interest The notes on pages 37 to 92 form an integral part of the consolidated financial statements. 4,583 17,886 16,392 1,494 -1,301 22,418 16,852 5,566 -180 180 -4,761 -949 117 -315 -1,902 0 1,243 10,008 0 -87 0 41 2010 17,199 2009 16,428

Consolidated balance sheet as of 31 December 2010

in thousand Euro Assets Non current assets I II III V Property, plant and equipment Investment property Intangible assets Associated companies 16 17 18 19 20 25 22 15 426,116 30,769 25,286 69,706 15,724 1,149 4,070 3,581 576,401 Current assets I II III Inventories Other financial receivables Trade receivables and other receivables and assets 21 25 22 26 120,175 685 1,338,140 265,638 1,724,638 Total assets Equity and liabilities Equity I II Share capital Reserves Equity attributable to equity holders of the parent company Non controlling interest Non-current liabilities I II III V Employee benefits Other provisions Deferred tax liabilities Other financial liabilities 28 29 15 30 31 33 51,091 18,391 37,003 370,812 0 840 478,137 Current liabilities I II III V Other provisions Tax liabilities Financial liabilities Trade and other payables Total equity and liabilities The notes on pages 37 to 92 form an integral part of the consolidated financial statements. 29 32 30 31 33 61,532 8,592 141,614 11 1,199,449 1,411,198 2,301,039 64,883 8,711 128,051 6,050 1,070,900 1,278,595 2,064,350 55,557 13,525 252,979 6,761 1,002,885 1,331,707 2,134,541 47,800 18,540 37,207 284,040 0 971 388,558 45,141 13,108 34,712 324,816 6,512 974 425,263 27 109 315,025 315,134 96,570 411,704 109 297,733 297,842 99,355 397,197 109 282,887 282,996 94,575 377,571 2,301,039 136,290 309 1,133,184 200,206 1,469,989 2,064,350 129,947 0 1,133,165 257,099 1,520,211 2,134,541 463,858 18,563 23,654 54,776 15,639 0 13,082 4,789 594,361 454,182 23,976 15,508 53,381 14,327 0 46,770 6,186 614,330 Note 2010 2009 01.01.2009

IV Financial assets VI Other financial receivables VII Other long-term assets VIII Deferred tax assets

IV Cash and cash equivalents

IV Financial liabilities VI Trade and other liabilities

IV Other financial liabilities

consolidated financial statements 035

Consolidated Statement of Cash Flows for the year 2010

in thousand Euro Cash flows from operating activities Net profit for the period Depreciation and amortisation Results from disposal of intangible assets and property, plant and equipment Changes in long-term provisions Net interest expenses Income taxes Results from non-current financial assets Results from associated companies Other non-cash transactions Changes in working capital Inventories Trade receivables and other receivables Short-term provisions Short-term payables Cash generated from operating activities Interest paid Income taxes paid Net cash from operating activities Investing activities Interest received Dividends received Proceeds from the sale of financial assets Proceeds from the sale of intangible assets and property, plant and equipment Investments in financial assets Acquisitions of subsidiaries net of cash acquired Investments in intangible assets and property, plant and equipment Net cash from investing activities Financing activities Repayment/proceeds from long-term borrowings Repayment from short-term borrowings Dividends paid Payment of partial interest acquisition of already controlled companies Net cash from financing activities Net increase in cash and cash equivalents Effect of exchange rate changes on cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year The notes on pages 37 to 92 form an integral part of the consolidated financial statements. 98,475 14,398 -361 -2,525 109,987 60,719 4,713 200,206 265,638 -27,685 -125,919 -20 0 -153,624 -56,108 -785 257,099 200,206 637 718 7,353 35,264 -19,276 -798 -76,824 -52,927 257 1,425 6,395 25,190 -8,245 -17,150 -96,744 -88,872 15,158 -196,398 -3,548 106,869 22,517 -12,357 -6,501 3,659 -1,239 28,071 6,536 50,548 211,426 -15,191 -9,847 186,388 17,199 57,129 505 -322 25,321 6,475 -1,355 204 -4,721 100,435 16,428 68,399 -1,444 6,001 34,961 6,188 -1,682 -1,341 0 127,510 2010 2009

Consolidated Statement of Changes in Equity

Measurement of financial instruments at fair value Capital reserves Additionally paid in capital Net investment Retained earnings Currency translation reserve Unrealised revenues/losses from the valuation of Hedges Equity attributable to equity holders of the parent company Non controlling interests Total equity

in thousand Euro

Share capital

Revaluation surplus

Balance at 1 Jan. 2009 33 -67 11,606 6,213 -589 -344

109

17,160

67

92

49,325

224,779

-6,819

-1,717

282,996 16,852 0 0

94,575 5,566

377,571 22,418 0 -20 -20

Total comprehensive income 2009

Capital increase -2,006 0 16,416 4,101 801 -3,788 92 49,325 234,379 -606 -589 -2,061 2,963

Dividends to shareholders

Other changes

-2,006 297,842 16,392 0 0

-766 99,355 1,494

-2,772 397,197 17,886 0 -361 1,604 -704 -4,130 212 -361 -2,526 -492

Balance at 31 Dec. 2009

109

17,193

Total comprehensive income 2010

Transfer revaluation surplus 1,604 -704 0 92 49,325 255,796 195

-4,101

Dividends to shareholders

Interest acquisition

Other changes

Balance at 31 Dec. 2010

109

13,092

-4,377

902

315,134

96,570

411,704

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

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 register at the Salzburg regional court under the registration number FN 36605g, forms the ALPINE construction 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 Interpretations 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 assigned 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.

Notes to the consolidated financial statements 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 eliminated. 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 investments. 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:
Acquisition date Share Acquiring company

Full consolidation: Ingenieurbro fr Energie- und Haustechnik Andreas Duba GmbH OKTAL PLUS d.o.o.

1 January 2010 13 April 2010

90% 100%

Alpine Bau Deutschland AG OSIJEK-KOTEKS d.o.o.

Ingenieurbro fr 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.

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 recognized 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 Ingenieurbro fr Energie- und Haustechnik Andreas 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 statements have had the following impact on the consolidated financial statements: On the date of initial consolidation
Non-current assets Current assets Non-current liabilities Current liabilities From the date of initial consolidation Revenue Operating result in TEUR 1,370 11,730 3,473 4,485 in TEUR 46,515 -264

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 corresponds 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.

Notes to the consolidated financial statements 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 liabilities 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:
je EUR Albania Bosnia-Herzegovina Bulgaria China Croatia Czech Republic Hungary India Macedonia Poland Romania Russia Serbia Singapore Sweden Switzerland Turkey United Arab Emirates ALL BAM BGN CNY HRK CZK HUF INR MKD PLN RON RUB CSD SGD SEK CHF TRY AED Closing rate 31 Dec. 2010 138.888889 1.955830 1.955830 8.756567 7,412898 25.060000 277.777778 59.523810 61.728395 4.020909 4.304778 40.485830 107.526882 1.725923 8.976661 1.261352 2.048341 4.830918 Mid point rate 2010 137.931034 1.955830 1.955830 8.931230 7.281112 25.231062 274.599542 60.544904 61.443932 3.991219 4.205915 40.254948 102.827763 1.798561 9.525321 1.376036 1.999134 4.847897

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 years 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 realization will be expected during the entitys 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 years 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 years figures of the construction segments under point 6 construction 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 preparation of consolidated financial statements. The underlying accounting policies applied to the preparation of these consolidated financial statements are set out below.

Notes to the consolidated financial statements 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 determination 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, construction 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 Partnership 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 concession 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 purposes 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 marketbased 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 assets 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 (BGL) 2009 published by the Austrian Association of Industrial Construction Companies. Usually, the following periods of useful life are assumed:
Own buildings Buildings on land owned by others Technical equipment and machinery Other plant and equipment, operating and office equipment years 8 50 3 50 3 20 3 15

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 assumed to be 50 years.

Notes to the consolidated financial statements 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 produce 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 combination over the Groups share of the net fair value of the identifiable assets and debts of a subsidiary, associate 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:
Building rights Software years 50 35

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 impairment. If it is not possible to determine the recoverable amount for the individual asset, the recoverable 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 assets 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 carried 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 exception 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 available 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. Noninterest-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 amortised cost.

5.8.4. Financial liabilities

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

Notes to the consolidated financial statements 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 Groups share in the net worth at the acquisition date. Losses are recognised by means of impairment. If the losses exceed the Groups share in the net investment 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 capitalized analogically to the equity method and are shown under receivables or liabilities against associated 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. Derivative 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 instruments that are designated as hedging instruments in an effective cash flow hedge relationship are recognized 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 employees 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 discounted 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.

Notes to the consolidated financial statements 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 attributable 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 liabilitys 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 recognised 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 during the period under review. Particularly in the case of the following assumptions and estimates, there is a sizeable risk that a significant 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 recoverable 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 statements 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 receivables 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.

Notes to the consolidated financial statements 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 IAS 39 IFRS 1 IFRS 2 IFRS 3 IFRIC 17 IFRIC 18 Miscellaneous Consolidated and Separate Financial Statements Financial Instruments: Recognition and Measurement Additional Exemptions for First-time Adopters: Amendments to IFRS 1 Share-based Payment Business Combinations Distributions of Non-cash Assets to Owners Transfers of Assets from Customers 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 shareholders 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 adjustments 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 Financial 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 improvements caused adjustments in accounting policies but did not have any material impact on the groups 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 Groups accounting policies, financial performance or financial position. IAS 39 IFRS 1 IFRS 2 IFRIC 17 IFRIC 18 Financial Instruments: Recognition and Measurement Additional Exemptions for First-time Adopters: Amendments to IFRS 1 Share-based Payment Distributions of Non-Cash Assets to Owners 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 and interpretations 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 IAS 32 IFRS 1 IFRIC 14 IFRIC 19 Miscellaneous Related Party Disclosures Financial Instruments: Classification of Rights Issues Limited Exemption from IFRS 7 Comparative Disclosures for First-time Adopters Prepayments of a Minimum Funding Requirement Extinguishing Financial Liabilities with Equity Instruments 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 IFRS 1 Amendments to IFRS 7, Disclosures about Financial Instruments 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.

Notes to the consolidated financial statements 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:

in TEUR Austria Building and power plant construction Civil engineering Communications / Energy Others Total Foreign countries Building and power plant construction Civil engineering Communications / Energy Others Total Group as a whole Building and power plant construction Civil engineering Communications / Energy Others Total incl. joint ventures Total joint ventures Total excl. joint ventures

2010

2009

547,780 719,767 139,662 113,829 1,521,038

561,783 840,057 132,545 67,310 1,601,695

586,209 803,888 242,084 47,923 1,680,104

659,369 864,208 168,922 70,726 1,763,225

1,133,989 1,523,655 381,746 161,752 3,201,142 452,587 2,748,555

1,221,152 1,704,265 301,467 138,036 3,364,920 520,093 2,844,827

7 Income from associated companies

in TEUR 2010 2009

Income of associates Expenses of associates Total

46,234 -21,578 24,656

38,019 -35,492 2,527

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

8 Other operating income

in TEUR 2010 2009

Income from the disposal of non-current assets Revenue from insurance compensations Rental income Other income related to staff Charges for staff, equipment and building site installations Exchange profit Other Total

2,956 6,620 9,641 2,596 21,567 6,936 24,536 74,852

2,475 6,769 7,948 1,815 59,855 685 19,553 99,100

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

9 Staff costs
in TEUR 2010 2009

Salaries and wages Expenses for severance payments including contributions to staff provision funds Pension cost Cost of statutory social security, payroll-related taxes and mandatory contributions Other social security cost Total Average number of employees

587,749 4,028 2,418 132,221 11,117 737,533 15,057

565,234 5,603 2,927 131,765 11,848 717,377 15,234

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 severance payments incl. actuarial gains and losses Payments to staff provision funds Total

2,628 1,400 4,028

4,275 1,328 5,603

Expenses arising from pensions are broken down as follows:

in TEUR 2010 2009

Service cost for pensions incl. actuarial gains and losses Defined contribution plans Total

1,070 1,348 2,418

-56 2,983 2,927

Notes to the consolidated financial statements 055

10 Depreciation and amortisation

in TEUR 2010 2009

Property, plant and equipment Investment property Intangible assets Total

54,711 223 1,886 56,820

64,963 193 1,667 66,823

11 Other operating expenses

in TEUR 2010 2009

Rental and leasing expenses Legal and consulting expenses Administrative expenses Maintenance and repair Insurance premiums Advertising expenses Taxes, except income taxes Exchange loss Other Total

76,823 29,120 40,647 16,712 15,964 9,075 3,651 4,566 94,873 291,431

70,588 30,376 35,644 14,469 16,692 8,532 2,036 1,522 87,022 266,881

12 Net interest income

in TEUR 2010 2009

Interest and similar income Interest expense and similar charges Total of which classified as financial instruments as per IAS 39 Loans and receivables Financial liabilities valued at amortised cost

6,884 -32,205 -25,321

7,163 -28,068 -20,905

6,884 -27,055

7,163 -24,900

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).

13 Exchange differences
in TEUR 2010 2009

Exchange differences of which classified as financial instruments as per IAS 39 Financial assets or liabilities at fair value through profit or loss Income from hedged items in fair value hedges Expenses from adjustments of the carrying amount of the designated hedged items in fair value hedges

223 580 580 -580

-14,057 -5,744 138 -138

14 Other financial results

in TEUR 2010 2009

Investment income Income from securities and financial assets Income/expenses from the disposal of non-current financial assets Expenses from affiliated companies Impairment losses on financial assets Other Total of which classified as financial instruments as per IAS 39 Loans and receivables Held for trading purposes Financial assets available for sale

718 637 -7 -31 -405 -55 857

1,425 257 655 -308 -1,299 -10 720

391 31 435

0 32 688

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.

Notes to the consolidated financial statements 057

15 Income taxes
in TEUR 2010 2009

Current income taxes Deferred taxes Total

6,278 196 6,474

3,433 2,756 6,189

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

in TEUR

2010

2009

Profit before income taxes Taxes at domestic rate of 25% Effects of other tax rates of subsidiaries operating abroad Tax-free gains Expenses not deductible for tax purposes Changes of loss carryforwards for which no deferred taxes were recognised Tax rate change of deferred taxes Utilisation of unused loss carryforward Tax expenses from prior periods Other Effective tax expense Effective tax rate

23,673 5,918 3,569 -1,114 1,216 4,715 0 -5,835 -1,274 -721 6,474 27.35%

22,617 5,654 297 -1,936 1,511 3,658 296 0 -2,611 -680 6,189 27.36%

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:
in TEUR 31 Dec. 2010
Assets Liabilities

31 Dec. 2009
Assets Liabilities Assets

1 Jan. 2009
Liabilities

Property, plant and equipment Intangible assets Financial assets Receivables and other current assets

1,218 54 1,745 5,737 8,754

-37,278 -434 -5,856 -31,020 -74,588 -1,395 -1,276 -4,651 -7,322

1,027 208 2,245 6,658 10,138 0 6,452 14,216 20,668 44,838

-38,465 -537 -4,606 -36,318 -79,926 -1,395 -909 -8,963 -11,267

583 108 1,198 4,427 6,316 0 6,420 18,009 24,429 28,120

-38,668 -412 -79 -28,645 -67,804 -1,452 -1,112 -4,038 -6,602

Untaxed reserves Provisions Liabilities

0 7,021 13,061 20,082

Tax loss carryforwards Deferred taxes (gross) Valuation allowance for tax loss carryforwards Less offsetting with deferred tax liabilities Deferred taxes (net)

35,401 64,237 -15,749 -44,907 3,581 44,907 -37,003 -81,910

75,644 -16,869 -53,986 4,789

-91,193

58,865 -12,985

-74,406

53,986 -37,207

-39,694 6,186

39,694 -34,712

In addition to the amount recognised in the income statement, deferred taxes relating to the revaluation of the Groups 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.

Notes to the consolidated financial statements 059

16 Property, plant and equipment

Technical equipment and machinery Prepayments and assets under construction

in TEUR Cost of acquisition As at 1 Jan. 2009 Exchange differences Changes consolidated group Additions Transfers Disposals As at 31 Dec. 2009 Exchange differences Changes consolidated group Additions Transfers Disposals As at 31 Dec. 2010

Land and buildings

Operating and office equipment

Total

214,132 -1,865 5,914 12,867 6,935 -7,307 230,676 -1,192 0 9,586 -1,743 -22,442 214,885

372,359 -4,846 22,999 26,281 4,912 -28,279 393,426 -165 1,309 17,916 2,090 -31,098 383,478

145,705 -272 5,799 20,643 -623 -15,555 155,697 1,108 31 17,257 220 -25,016 149,297

17,174 -256 -2,219 21,829 -9,436 -2,086 25,006 -377 1 12,964 -6,530 -1,745 29,319

749,370 -7,239 32,493 81,620 1,788 -53,227 804,805 -626 1,341 57,723 -5,963 -80,301 776,979

Accumulated depreciation As at 1 Jan. 2009 Exchange differences Changes consolidated group Annual depreciation Impairment loss Transfers Disposals As at 31 Dec. 2009 Exchange differences Changes consolidated group Annual depreciation Impairment loss Transfers Disposals As at 31 Dec. 2010 41,822 -299 1,498 5,087 0 510 -1,680 46,938 -162 0 4,848 0 2 -5,656 45,970 182,067 -2,125 8,644 41,038 0 825 -18,144 212,305 -23 2 33,512 0 -125 -21,665 224,006 71,299 -173 2,637 18,838 0 -825 -10,072 81,704 704 1 16,351 0 44 -17,917 80,887 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 295,188 -2,597 12,779 64,963 0 510 -29,896 340,947 519 3 54,711 0 -79 -45,238 350,863

Carrying amount on 1 Jan. 2009 Carrying amount on 31 Dec. 2009 Carrying amount on 31 Dec. 2010

172,310 183,738 168,915

190,292 181,121 159,472

74,406 73,993 68,410

17,174 25,006 29,319

454,182 463,858 426,116

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-arms-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 Groups 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:
in TEUR Buildings Technical equipment and machinery Operating and office equipment 31 Dec. 2010 12,312 39,368 1,844 31 Dec. 2009 12,600 52,061 6,020 1 Jan. 2009 11,936 58,734 9,154

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).

Notes to the consolidated financial statements 061

17 Investment property
in TEUR Cost of acquisition As at 1 Jan. 2009 Exchange differences Changes consolidated group Additions Transfers Disposals As at 31 Dec. 2009 Exchange differences Changes consolidated group Additions Transfers Disposals As at 31 Dec. 2010 Accumulated depreciation As at 1 Jan. 2009 Exchange differences Changes consolidated group Annual depreciation Impairment loss Transfers Disposals Reversals As at 31 Dec. 2009 Exchange differences Changes consolidated group Annual depreciation Impairment loss Transfers Disposals Reversals As at 31 Dec. 2010 Carrying amount on 1 Jan. 2009 Carrying amount on 31 Dec. 2009 Carrying amount on 31 Dec. 2010 2,575 0 0 193 0 0 -46 0 2,722 0 0 223 0 0 -26 0 2,919 23,976 18,563 30,769 26,551 -76 -4,188 252 -794 -460 21,285 -90 0 5,497 7,243 -247 33,688 Land and buildings

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-arms-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

Development expenses

in TEUR

Rights

Goodwill

Total

Cost of acquisition As at 1 Jan. 2009 Exchange differences Changes consolidated group Additions Transfers Disposals As at 31 Dec. 2009 Exchange differences Changes consolidated group Additions Transfers Disposals As at 31 Dec. 2010 Accumulated depreciation As at 1 Jan. 2009 Exchange differences Changes consolidated group Annual depreciation Impairment loss Transfers Disposals As at 31 Dec. 2009 Exchange differences Changes consolidated group Annual depreciation Impairment loss Transfers Disposals As at 31 Dec. 2010 Carrying amount on 1 Jan. 2009 Carrying amount on 31 Dec. 2009 Carrying amount on 31 Dec. 2010 0 0 0 0 0 0 0 0 0 0 11 0 0 0 11 0 0 616 8,051 9 213 1,427 0 0 -311 9,389 150 6 1,635 0 0 -295 10,885 3,580 4,519 5,489 668 0 0 0 240 0 0 908 11 0 0 240 0 0 1,159 11,928 19,135 19,181 8,719 9 213 1,427 240 0 -311 10,297 161 6 1,646 240 0 -295 12,055 15,508 23,654 25,286 0 0 0 0 0 0 0 0 0 627 0 0 627 11,631 5 221 2,364 0 -313 13,908 117 27 3,103 1 -782 16,374 12,596 19 7,428 0 0 0 20,043 126 171 0 0 0 20,340 24,227 24 7,649 2,364 0 -313 33,951 243 198 3,730 1 -782 37,341

Notes to the consolidated financial statements 063

19 Financial assets
in TEUR
Investment in affiliated companies Other investment Other exposure Securities Total

Cost of acquisition As at 1 Jan. 2009 (+) Additions; (-) Disposals Changes consolidated group As at 31 Dec. 2009 (+) Additions; (-) Disposals Changes consolidated group As at 31 Dec. 2010 BV 1 Jan. 2009 BV 31 Dec. 2009 BV 31 Dec. 2010 5,283 -186 -213 4,884 508 -745 4,647 870 1,408 1,232 17,534 513 68 18,115 -635 0 17,480 16,890 17,126 16,646 24,167 4,932 0 29,099 18,536 0 47,635 24,167 29,099 47,635 12,747 -4,227 121 8,641 -2,795 0 5,846 11,454 7,143 4,193 59,731 1,032 -24 60,739 15,614 -745 75,608 53,381 54,776 69,706

20 Investments in associates
All private and public limited companies presented as associates in the consolidated financial statements, including their domiciles and equity interest, can be found in the list of investments. The approximately 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 Schaberreiter 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):
in TEUR Assets total Liabilities total Net assets Group share of net assets of associated companies Revenue total Net income total Group share of net income of associated companies 31 Dec. 2010 1,091,228 1,110,965 -19,737 15,724 268,838 5,948 1,341 31 Dec. 2009 1,006,898 1,001,224 5,674 15,639 178,445 8,431 2,385 1 Jan. 2009 733,873 741,855 -7,982 14,327 142,004 9,954 3,002

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.

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

Land held for sale Raw materials, consumables and supplies Work in progress Finished goods and goods purchased and held for resale Prepayments Total

53,948 42,868 3,366 7,888 12,105 120,175

63,814 44,019 6,144 10,437 11,876 136,290

61,190 46,744 8,164 5,399 8,450 129,947

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).

22 Trade receivables and other assets

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

Non-current

Current

Total

Non-current

Current

Total

Non-current

Current

Total

Trade receivables Receivables from construction contracts Receivables from affiliated companies Receivables from associates Other receivables and assets Total

0 0

402,373 631,084

402,373 631,084

0 0

354,156 553,474

354,156 553,474

0 0

355,733 546,137

355,733 546,137

1,966

1,966

3,277

3,277

7,122

3,400

10,522

0 4,070 4,070

151,356 151,361 1,338,140

151,356 155,431 1,342,210

5,573 7,509 13,082

137,377 84,900 1,133,184

142,950 92,409 1,146,266

23,985 15,663 46,770

120,179 107,716 1,133,165

144,164 123,379 1,179,935

Notes to the consolidated financial statements 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:
in TEUR 31 Dec. 2010 31 Dec. 2009 1 Jan. 2009

Trade receivables/receivables from construction contracts and associates Of which: neither overdue nor value adjustment made on the financial statement date Of which: no value adjustment as of the financial statement date and due within the following time bands: less than 90 days 91 - 180 days 181 - 360 days more than 360 days

1,172,936 849,750

1,036,582 713,726

1,030,651 789,560

141,122 29,276 34,146 113,252

139,097 34,185 38,328 97,048

144,086 30,771 23,661 25,440

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.
in TEUR Value adjustments on 1 Jan. Allocation to reserves Utilisation/release Value adjustments on 31 Dec. 31 Dec. 2010 19,857 13,530 5,816 27,571 31 Dec. 2009 13,376 8,825 2,344 19,857

23 Receivables from construction contracts

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

Receivables from construction contracts (gross) Advances received Receivables from construction contracts (net) Costs incurred to date (of all contracts not completed as at cut-off date) Profits incurred to date (of all contracts not settled as at cut-off date) Accumulated losses (of all contracts not settled as at cut-off date) Receivables from construction contracts (gross) Retentions by customers

3,484,116 -2,853,032 631,084 3,464,175 110,258 -90,317 3,484,116 37,291

2,847,178 -2,293,704 553,474 2,821,186 101,871 -75,879 2,847,178 29,861

2,372,833 -1,826,696 546,137 2,373,353 69,346 -69,866 2,372,833 36,191

24 Other receivables and current assets

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

Non-current

Current

Total

Non-current

Current

Total

Non-current

Current

Total

Receivables from other taxes Accruals Insurance settlements Pension plan reinsurance Securities held for trading Other Total

0 0 0 0 0 4,070 4,070

50,297 9,425 740 690 1,012 89,197 151,361

50,297 9,425 740 690 1,012 93,267 155,431

0 0 0 0 0 7,509 7,509

31,474 7,559 1,467 841 1,005 42,554 84,900

31,474 7,559 1,467 841 1,005 50,063 92,409

0 0 0 0 0 15,663 15,663

20,259 19,804 477 906 969 65,301 107,716

20,259 19,804 477 906 969 80,964 123,379

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.

Notes to the consolidated financial statements 067

25 Other Financial Receivables

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

Non-current

Current

Total

Non-current

Current

Total

Non-current

Current

Total

Derivatives designated as hedging instruments measured at fair value Forward exchange transactions interest swap Derivatives at fair value through profit or loss Forward exchange transactions 0 591 591 0 171 171 0 0 0 0 1,149 94 0 94 1,149 0 0 138 0 138 0 0 0 0 0 0 0

26 Cash and bank balances

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

Bank balances Cash Total as per balance sheet Cash and cash equivalents in the cash flow statement

264,026 1,612 265,638 265,638

199,226 980 200,206 200,206

256,174 925 257,099 257,099

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 Construccin S.A..

28 Employee benefits
in TEUR 31 Dec. 2010 31 Dec. 2009 1 Jan. 2009

Provisions for severance payments Provisions for pensions Total

41,215 9,876 51,091

37,832 9,968 47,800

35,365 9,776 45,141

28.1 Provisions for severance payments

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

Interest rate Salary and wage increases Fluctuation rate Retirement age women in years Retirement age men in years Life expectancy in TEUR Reconciliation of provision recognised in the balance sheet Present value of defined benefit obligations Accumulated actuarial profit (+) / loss (-) Provision

4.5% 2.5% 0 - 5% 56.5 - 60 61.5 - 65 AV 2008-P 31 Dec. 2010

5.0% 2.5% 0 - 5% 56.5 - 60 61.5 - 65 AV 2008-P 31 Dec. 2009

5.0% 2.5% 0 - 5% 56.5 - 60 61.5 - 65 AV 2008-P 1 Jan. 2009

42,140 -925 41,215

37,819 13 37,832

35,365 0 35,365

The changes in present value of defined benefit obligations in the financial years 2010 and 2009 are as follows:
in TEUR Defined benefit obligations on 1 Jan. Service cost Interest expense Actuarial profit/loss Payments in the financial year Changes consolidated group Defined benefit obligations on 31 Dec. Expense recognised in the income statement Service cost Interest expense Realised actuarial profit (-), loss (+) Expense in the income statement 2,641 1,684 -13 4,312 4,275 1,608 0 5,883 2009 37,819 2,641 1,684 925 -3,568 2,639 42,140 2008 35,365 4,275 1,608 -13 -5,183 1,767 37,819

Notes to the consolidated financial statements 069

28.2 Provisions for pensions

The calculation of the provisions for pensions as at 31 December 2010, 31 December 2009 and 1 January 2009 is based on the following assumptions:
31 Dec. 2010 31 Dec. 2009 1 Jan. 2009

Interest rate Pension, salary and wage increases Fluctuation rate Retirement age women in years Retirement age men in years Life expectancy Austria Germany Switzerland

2.5 - 4.5 % 1.0 - 4.0% 0 22.5% 56.5 - 64 61.5 - 65 AV 2008-P Heubeck mortality tables 2005 G BVG 2005

3.3 - 5.0 % 1.0 - 4.0% 0 22.5% 56.5 - 64 61.5 - 65 AV 2008-P Heubeck mortality tables 2005 G BVG 2005

2.85 - 5.0 % 1.0 - 4.0% 0 22.5% 56.5 - 64 61.5 - 65 AV 2008-P Heubeck mortality tables 2005 G BVG 2005

in TEUR

31 Dec. 2010

31 Dec. 2009

1 Jan. 2009

Present value of covered defined benefit obligations Fair value of plan assets Total Present value of uncovered defined benefit obligations Present value of defined benefit obligations Reconciliation of provision recognised in the balance sheet Present value of defined benefit obligation Accumulated actuarial profit (+) / loss (-) Amount not recognised as an asset because of the limit in paragraph 58(b) Provision

21,490 -16,842 4,648 7,471 12,119

16,157 -12,632 3,525 7,256 10,781

14,493 -11,952 2,541 7,235 9,776

12,119 -2,243 0 9,876

10,781 -836 23 9,968

9,776 0 0 9,776

The changes in present value of defined benefit obligations in the financial years 2010 and 2009 are as follows:
in TEUR Defined benefit obligations on 1 Jan. Service cost Employee contributions Interest expense Actuarial profit/loss Currency translation differences Payments in the financial year Changes consolidated group Gains/Losses from plan curtailments 2010 23,413 1,081 1,153 868 1,673 2,962 -1,650 0 -539 28,961 2009 21,728 2,070 0 883 550 424 -2,564 322 0 23,413

Defined benefit obligations on 31 Dec.

The changes to the present value of plan assets in the financial years 2010 and 2009 are as follows:
in TEUR 2010 12,632 324 254 2,508 1,158 1,153 -1,187 16,842 2010 2009 11,952 381 -286 350 2,126 0 -1,891 12,632 2009

Plan assets on 1 Jan. Expected income from plan assets Actuarial profit/loss Currency translation differences Employer contributions Employee contributions Payments in the financial year Net assets on 31 Dec. in TEUR Expense recognised in the income statement Service cost Interest expense Realised actuarial profit (-), loss (+) Expected income from plan assets Gains/Losses from plan curtailments and settlements Expense in the income statement

1,081 868 -11 -324 -539 1,075

-56 883 0 -381 0 446

The principal asset classes of the plan assets together with their expected returns on the date of the financial statement are as follows:
in TEUR 2010 expected income fair value 2009 expected income fair value

Bonds Stockholdings Property Other Weighted average of expected income

1.60% 6.50% 3.50% 2.18% 2.15%

6,527 304 1,540 8,471 16,842

2.10% 6.25% 3.90% 2.69% 2.61%

6,043 253 1,349 4,987 12,632

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 management 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).

Notes to the consolidated financial statements 071

The development of the experience adjustments is illustrated as follows:

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

Present value of defined benefit obligations Fair value of plan assets Deficit in the plan Experience adjustments of plan debts Experience adjustments of plan assets

28,961 -16,842 12,119 1,673 254

23,413 -12,632 10,781 550 -286

21,728 -11,952 9,776 -1,242 -175

18,134 -8,072 10,062 -1,065 -19

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).

29 Other provisions
in TEUR 31 Dec. 2010 31 Dec. 2009

Non-current

Current

Total

Non-current

Current

Total

As at 1 Jan. Changes consolidated group Exchange differences Reclassification Additions Utilisation Release Provision on 31 Dec.

18,540 826 39 -230 5,656 -5,264 -1,176 18,391

64,883 198 465 230 31,306 -19,724 -15,826 61,532

83,423 1,024 504 0 36,962 -24,988 -17,002 79,923

13,108 1,180 6 603 5,627 -1,732 -252 18,540

55,557 1,610 -489 -603 45,703 -25,078 -11,817 64,883

68,665 2,790 -483 0 51,330 -26,810 -12,069 83,423

in TEUR

31 Dec. 2010

31 Dec. 2009

1 Jan. 2009

Non-current

Current

Total

Non-current

Current

Total

Non-current

Current

Total

Legal disputes Anniversary bonuses Provision for losses Other Total

171 9,789 0 8,431 18,391

3,248 0 43,285 14,999 61,532

3,419 9,789 43,285 23,430 79,923

378 11,139 0 7,023 18,540

4,385 0 41,925 18,573 64,883

4,763 11,139 41,925 25,596 83,423

188 7,437 0 5,483 13,108

5,652 3,480 30,713 15,712 55,557

5,840 10,917 30,713 21,195 68,665

30 Financial liabilities
in TEUR 31 Dec. 2010 31 Dec. 2009 1 Jan. 2009

Non-current

Current

Total

Non-current

Current

Total

Non-current

Current

Total

Bonds Mortgage loans Revolving credits Finance leases Loans from affiliated companies Other Total

99,343 65,289 172,034 28,541 0 5,605 370,812

2,625 15,496 45,957 12,299 38,827 26,410 141,614

101,968 80,785 217,991 40,840 38,827 32,015 512,426

0 60,771 125,122 40,251 35,500 22,396 284,040

0 17,350 66,248 14,859 2,173 27,421 128,051

0 78,121 191,370 55,110 37,673 49,817 412,091

0 86,832 134,455 53,343 36,400 13,786 324,816

0 21,819 172,098 17,273 0 41,789 252,979

0 108,651 306,553 70,616 36,400 55,575 577,795

Alpine Holding GmbH issued a bond with valuta 1 July 2010 under following conditions: Issuer Volume in EUR Alpine Holding GmbH 100,000,000

Denomination in EUR 1,000 Tenor 2010-2015 Repayment Nominal interest Coupon Joint Lead final maturity at 100 % of nominal value 5.25% p.a. 01.07. anually UniCredit Bank Austria and BAWAG PSK

Initial public offering Vienna Stock Exchange, over the counter market (organized stock market) ISIN 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 Construccin S.A. The carrying amounts and main terms of the bank loans and overdrafts are as follows:
in TEUR 31 Dec. 2010

Type of financing

Currency

Maturity

Effective yield

Interest rate fixed/ variable

Maturity

Mortgage loans, current Mortgage loans, non-current Revolving credits, current Revolving credits, non-current Other, current Other, noncurrent

ALL, CHF, EUR, HRK, PLN BAM, CHF, EUR, HRK, PLN CHF, CZK, EUR, PLN, RSD EUR EUR, HRK, RSD EUR, HRK

15,496 65,289 45,957 172,034 26,410 5,605 330,791

2.1%-8.5% 2.6%-8.5% 0.9%-18.4% 3.8%-4.3% 1.5%-11.8% 1.5%-6.9%

fix, variable fix, variable fix, variable variable fix, variable variable

2011 2012-2029 2011 2012-2018 2011 2012-2015

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

Notes to the consolidated financial statements 073

The liabilities from finance leases and their maturities are as follows:
in TEUR 31 Dec. 2010

Present value

Interest

Payment amount

Maturity

2011 2012 2015 After 2015

12,299 19,191 9,350 40,840

1,495 2,367 2,147 6,009

13,794 21,558 11,497 46,849

Total

in TEUR

31 Dec. 2009

Present value

Interest

Payment amount

Maturity

2010 2011 - 2014 After 2014

14,931 30,516 9,663 55,110

2,090 3,503 2,479 8,072

17,021 34,019 12,142 63,182

Total

in TEUR

1 Jan. 2009

Present value

Interest

Payment amount

Maturity

2009 2010 - 2013 After 2013

17,273 40,923 12,420 70,616

2,616 5,580 3,271 11,467

19,889 46,503 15,691 82,083

Total

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

31 Other financial liabilities

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

Noncurrent

Current

Total

Noncurrent

Current

Total

Noncurrent

Current

Total

Derivatives designated as hedging instruments measured at fair value Forward exchange transactions Derivatives at fair value through profit or loss Forward exchange transactions 0 11 11 0 6,050 6,050 0 0 0 0 0 0 0 0 0 6,512 6,761 13,273

32 Tax liabilities
in TEUR As at 1 Jan. Changes consolidated group Change in exchange rate Additions Used Released As at 31 Dec. 2010 8,711 0 120 4,796 -5,035 0 8,592 2009 13,525 690 -4 5,973 -11,473 0 8,711

33 Trade payables and other liabilities

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

Noncurrent

Current

Total

Noncurrent

Current

Total

Noncurrent

Current

Total

Advances received Trade payables Liabilities towards affiliated companies Liabilities towards associates Other liabilities Total

0 0 0 0 840 840

123,577 685,770 2,688 150,008 237,406 1,199,449

123,577 685,770 2,688 150,008 238,246 1,200,289

0 0 0 0 971 971

89,488 652,509 3,615 81,905 243,383 1,070,900

89,488 652,509 3,615 81,905 244,354 1,071,871

0 0 0 0 974 974

102,053 591,966 1,481 75,170 232,215 1,002,885

102,053 591,966 1,481 75,170 233,189 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.

Notes to the consolidated financial statements 075

34 Other liabilities
in TEUR 31 Dec. 2010 31 Dec. 2009 1 Jan. 2009

Noncurrent

Current

Total

Noncurrent

Current

Total

Noncurrent

Current

Total

Tax liabilities (without income taxes) Liabilities relating to social security Liabilities towards employees Unused leave liabilities Hours in lieu liabilities Liabilities from legal and consulting expenses Other Total

0 0 0 0 0 0 840 840

103,900 24,566 41,774 26,364 4,683 6,484 29,635 237,406

103,900 24,566 41,774 26,364 4,683 6,484 30,475 238,246

0 0 0 0 0 0 971 971

105,037 25,381 38,452 24,716 5,509 5,198 39,090 243,383

105,037 25,381 38,452 24,716 5,509 5,198 40,061 244,354

0 0 0 0 0 0 974 974

87,315 26,140 38,919 22,766 5,061 6,587 45,427 232,215

87,315 26,140 38,919 22,766 5,061 6,587 46,401 233,189

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 secondary 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 construction, 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 centralized activities.

35.5 Segment information

in TEUR Building and Power Plant Construction Civil Engineering Communication / Energy Others Group

Operating segment information per 31 Dec. 2010 Segment Construction Output Segment Revenue Segment Result Earnings before taxes (EBT) thereof result from companies consolidated at equity thereof depreciation thereof impairment losses thereof net interest expenses interest expenses interest income Operating segment information per 31 Dec. 2009 Segment Construction Output Segment Revenue Segment Result Earnings before taxes (EBT) thereof result from companies consolidated at equity thereof depreciation thereof impairment losses thereof net interest expenses interest expenses interest income 1,221,152 1,127,873 -6,792 956 872 0 -1,189 -7,712 6,523 1,704,265 1,320,050 21,776 606 14,871 0 -8,961 -13,590 4,629 301,467 301,467 13,926 0 6,324 0 -397 -1,388 991 138,036 95,437 -6,293 965 44,756 240 -10,358 -24,561 14,203 3,364,920 2,844,827 22,617 2,527 66,823 240 -20,905 -47,251 26,346 1,133,989 1,051,598 8,989 4,918 631 0 -3,346 -8,310 4,964 1,523,655 1,198,557 13,139 18,965 8,893 0 -13,582 -16,761 3,179 381,746 381,746 12,729 0 6,297 124 -2,052 -3,306 1,254 161,752 116,654 -11,184 773 40,999 116 -6,341 -26,395 20,054 3,201,142 2,748,555 23,673 24,656 56,820 240 -25,321 -54,772 29,451

The depreciation shown in the segment Others comprises the depreciation for machinery and equipment of the Machines - Technical Department, which are leased to companies belonging to other segments 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 Groups 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.

Notes to the consolidated financial statements 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:
in TEUR 2010 2009

Austria Germany Southeastern Europe Northeastern Europe Rest of Western and Northern Europe Asia Total

1,521,038 695,843 396,950 347,097 131,335 108,879 3,201,142

1,601,695 661,580 601,622 278,377 115,995 105,651 3,364,920

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

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 equivalents 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 Groups 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.

36.3 Categories of financial instruments

in TEUR Financial assets Held for trading purposes Derivatives at fair value through profit or loss Derivatives designated as hedging instruments in fair value hedge accounting relationships Loans and receivables Financial assets available for sale Financial liabilities Derivatives at fair value through profit or loss Derivatives designated as hedging instruments in fair value hedge accounting relationships Financial liabilities valued at amortised cost 11 0 1,712,715 6,050 0 1,483,962 0 13,273 1,581,654 1,012 591 1,243 1,391,075 19,829 1,005 171 138 1,179,445 20,591 969 0 0 1,208,219 23,260 31 Dec. 2010 31 Dec. 2009 1 Jan. 2009

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 shareholders 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 transactionorientated basis. Therefore, at the end of 2010 the following hedging transactions existed:

Buy Currency

Nominal value 2010 in TEUR

Nominal Value 2009 in TEUR

USD

12,043

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.

Notes to the consolidated financial statements 079

On 31 December 2010 forward exchange transactions existed in SGD, CHF, PLN and CZK to hedge intragroup-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 CHF PLN Sell Currency

6,668 50,332 398 Nominal value 2010 in TEUR

13,904 16,415 0 Nominal Value 2009 in TEUR

CZK

1,664

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 effects 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:

Type

Nominal Value 2010 in TEUR

Nominal Value 2009 in TEUR

Interest rate SWAP

85,714

In the business year of 2010 MEUR 0.9 were recorded in equity from changes of the fair value of interest 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 Status 31 Dec. 2010 Trade liabilities and other liabilities Bank liabilities Liabilities due to loans Liabilities due to finance leases Total 1,199,449 99,732 5,250 13,794 1,318,225 840 257,380 121,000 21,558 400,778 0 3,960 0 11,497 15,457 1,200,289 361,072 126,250 46,849 1,734,460 Up to 1 year 1-5 years Over 5 years Total

Notes to the consolidated financial statements 081

in TEUR Status 31 Dec. 2009 Trade liabilities and other liabilities Bank liabilities Liabilities due to loans Liabilities due to finance leases Total

Up to 1 year

1-5 years

Over 5 years

Total

1,061,040 118,200 0 17,021 1,196,261

10,831 196,447 0 34,019 241,297

0 19,682 0 12,142 31,824

1,071,871 334,329 0 63,182 1,469,382

in TEUR Status 31 Dec. 2009 Status 1 Jan. 2009 Trade liabilities and other liabilities Bank liabilities Liabilities due to loans Liabilities due to finance leases Total

Up to 1 year

1-5 years

Over 5 years

Total

992,668 259,163 0 19,889 1,271,740

11,171 134,335 0 46,503 192,009

0 165,831 0 15,691 181,522

1,003,859 559,329 0 82,083 1,645,271

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.

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 agreements 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 Due in 1-5 years Due in more than 5 years Total

25,576 63,351 4,648 93,575

21,935 51,576 5,119 78,630

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

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

in TEUR 2010 2009

Audit Other assurance services Tax advisory services Other services Total

708 391 6 83 1,188

484 213 4 19 720

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 arising 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 managing 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 eliminated in the course of consolidation are not disclosed in these notes.

Notes to the consolidated financial statements 083

There are no major transactions between Group companies and subsidiaries that are not consolidated. In the year 2010 sales to FCC Construccin 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) and payables 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 Mr. Alejandro Tuya Garcia Mrs. Esther Koplowitz Romero de Juseu Mrs. Esther Alcocer Koplowitz Mr. Jose Mayor Oreja Mr. Robert Peugeot Mr. Jose Aguinaga Mr. Willy Bck Mrs. Alicia Alcocer Koplowitz Mr. Alfred Gusenbauer Mr. Jose Manuel Burgos Mr. Francisco Martin Monteagudo Mrs. Benita Ferrero-Waldner chairman deputy chairman member member member member (to 1 March 2011) member member member member (to 7 May 2010) member member (from 22 May 2010) 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 Construccin 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 contractees 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. Wals bei Salzburg, 30 March 2010 Alpine Holding GmbH The Management Board

Werner Watznauer m.p.

Notes to the consolidated financial statements 085

Statement of all Legal Representatives alpine group

We confirm to the best of our knowledge that the consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the group as required by the applicable accounting standards and that the group management report gives a true and fair view of the development and performance of the business and the position of the group, together with a description of the principal risks and uncertainties the group faces. Wals bei Salzburg, 30 March 2011 Alpine Holding GmbH The Management Board

Werner Watznauer m.p. Sole managing director

Audit Opinion ALPINE GROUP

Report on the Consolidated Financial Statements We have audited the accompanying consolidated financial statements of Alpine Holding GmbH, WalsSiezenheim, 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. Managements Responsibility for the Consolidated Financial Statements and for the Accounting System The Companys 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, implementing 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. Auditors 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 Accountants (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 auditors 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 Groups preparation and fair presentation of the consolidated 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 Groups 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.

Notes to the consolidated financial statements 087

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 recoverability 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 Companys position. The auditors report also has to contain a statement 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 Wirtschaftsprfungs GmbH Michael Schober m.p. Certified Public Accountant ppa Nikolaus Mller m.p. Certified Public Accountant

List of investments
Company Domicile Nominal capital in 1,000 CU Effective percentage of ownership Type of consolidation

AUSTRIA 3 G Netzwerk - Errichtungs GmbH *) ABO Asphalt-Bau Oeynhausen GmbH ACOTON - IMM Projektrealisierung GmbH ACOTON Projektmanagement & Bautrger GmbH Ahrental Abbau- und Aufbereitungsgesellschaft m.b.H. AJS ACOTON Projektm. & Bautr. GmbH & Co KG Alpine - Energie sterreich GmbH Alpine - RZDstroy GmbH ALPINE Bau GmbH ALPINE BeMo Tunnelling GmbH ALPINE Liegenschaftsverwertungs GmbH *) Alpine-Rossiskaya GmbH ALTEC Umwelttechnik GmbH AMF - Asphaltmischanlage Feistritz GmbH AMF - Asphaltmischanlage Feistritz GmbH & Co KG *) AMW Asphaltwerk GmbH Annaberger Zwieselalmbahnen Gesellschaft m.b.H. APT Alpine Project Technology GmbH Asphaltlieferwerk Leibnitz Baugesellschaft m.b.H. Asphaltmischwerk Betriebsgesellschaft m.b.H. Asphaltmischwerk Betriebsgesellschaft m.b.H. & Co KG Asphaltmischwerk Greinsfurth GmbH Asphaltmischwerk Greinsfurth GmbH & Co OG Asphaltmischwerk LEOPOLDAU - TEERAG-ASDAG + Mayreder-Bau GmbH Asphaltmischwerk LEOPOLDAU - TEERAG-ASDAG + Mayreder-Bau GmbH & Co. KG Asphaltmischwerk Steyregg GmbH Asphaltmischwerk Steyregg GmbH & Co KG Asphaltwerk Sierning GmbH AWT Asphaltwerk GmbH AWW Asphaltmischwerk Wlbling GmbH Bautechnische Prf- und Versuchsanstalt Gesellschaft m.b.H. Bewehrungszentrum Linz GmbH Blumauerplatz Immobilien Projektentwicklungs GmbH Bonaventura Straenerhaltungs-GmbH Bonaventura Strassenerrichtungs-GmbH Brozentrum U 3 ProjektgesmbH Dolomit-Beton Lieferbetonwerk GmbH Draubeton GesmbH Emberger & Essl GmbH Emberger & Heuberger Bau GmbH EVG Energieversorgung GmbH EVU Energieversorgung GmbH EVW Energieversorgung GmbH Fels- und Sprengtechnik Gesellschaft m.b.H. Ferro-Betonit-Werke Immobilien Gesellschaft m.b.H. Vienna Oeynhausen Salzburg Salzburg Innsbruck Salzburg Linz Vienna Salzburg Innsbruck Salzburg Vienna Vienna Graz Graz Weitendorf Annaberg Linz Leibnitz Rauchenwarth Rauchenwarth Amstetten Amstetten Vienna Vienna Linz Linz Linz Stadtschlaining Linz Himberg Linz Linz Vienna Vienna Vienna Lienz Villach Salzburg Salzburg Zwettl Zwettl Zwettl Linz Linz EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR 35 73 35 37 35 1 750 35 5,852 2,500 37 35 614 35 3 727 36 1,000 73 36 727 40 600 70 70 35 454 35 700 36 36 35 35 35 1,800 35 36 35 40 99 35 35 35 145 36 76.65% 17.25% 36.42% 76.65% 15.71% 76.65% 76.65% 38.33% 76.65% 75.88% 76.65% 39.09% 76.65% 38.33% 38.33% 16.86% 19.16% 76.65% 17.25% 15.33% 15.33% 19.16% 19.16% 38.33% 15.33% 15.33% 15.33% 30.66% 25.30% 38.33% 76.65% 76.65% 76.65% 19.16% 34.03% 76.65% 36.80% 26.83% 68.99% 68.99% 30.66% 18.40% 24.91% 76.65% 76.65% C AE N C N C C N C C C N C N AE AE N C N N AE N AE AE AE N AE AE AE AE C C N AE AE C AE AE C C N N N N N

Notes to the consolidated financial statements 089

Effective percentage of ownership Type of consolidation

Company

Domicile

Nominal capital in 1,000 CU

FMA Asphaltwerk GmbH & Co KG Frhlich, Bau- und Zimmereiunternehmen, Gesellschaft m.b.H. Gaspix Beteiligungsverwaltungs GmbH Gasteiner Badesee Errichtungs- und Betriebsgesellschaft m.b.H. & Co. KG. Geotechnik Systems GmbH Grund- Pfahl- und Sonderbau GmbH Grund- und Sonderbau GmbH HAZET Bauunternehmung GmbH Hemmelmair Frstechnik GmbH Hoch & Tief Bau Beteiligungs GmbH Ing. Arnulf Haderer GmbH KAI - CENTER Errichtungs- und VermietungsgmbH Kieswerk - Betriebs - Gesellschaft m.b.H. Kieswerk - Betriebs - Gesellschaft m.b.H. & Co. Kommanditgesellschaft Klcher Baugesellschaft m.b.H. Konrad Beyer & Co Spezialbau GmbH Lieferasphaltgesellschaft JAUNTAL GmbH MAS Bau-Projekt und Handelsgesellschaft m.b.H. Mayreder Hoch- und Tiefbau GmbH MLA Beteiligungen GmbH MSO Mischanlagen Ilz GmbH & Co KG Murgalerien Errichtungs- und Verwertungs-GmbH MWG Wohnbaugesellschaft m.b.H. OEKOTECHNA Entsorgungs- und Umwelttechnik Gesellschaft m.b.H. Paltentaler Beton Erzeugungs GesmbH PEM Projektentwicklung Murgalerien GmbH PEM Projektentwicklung Murgalerien GmbH & Co KG PORR ALPINE Austriarail GmbH Pro Part in Austria Handels GmbH Project Development GmbH Raststtten Betriebs GmbH RBA - Recycling u. Betonanlagen GmbH & Co KG RFM Asphaltmischwerk GmbH RFM Asphaltmischwerk GmbH & Co KG Rubacher Schilift Gesellschaft mit beschrnkter Haftung & Co. KG Schaberreiter GmbH STRAKA Bau GmbH Thalia Errichtungs- und VermietungsgmbH Transportbeton und Asphaltgesellschaft m.b.H. Transportbeton und Asphaltgesellschaft m.b.H. & Co KG Transportbetongesellschaft m.b.H. UKH-Linz Errichtungs- und Vermietungs-GmbH Universale Bau GmbH Waldviertler Lieferasphalt GmbH Waldviertler Lieferasphalt GmbH & Co KG Weinfried Bautrger GmbH GERMANY AD Grundbesitzverwaltung GmbH AE StadtLand GmbH Alpine Bau Deutschland AG

Feldbach Kapfenberg Zirl Badgastein Vienna Vienna Himberg Vienna Linz Salzburg Vienna Graz Zams Zams Klch Linz Klagenfurt Vienna Salzburg Salzburg Ilz Unterpremsttten Graz Perchtoldsdorf Rottenmann Unterpremsttten Unterpremsttten Salzburg Hohenems Salzburg Vienna Zirl Wienersdorf-Oeynhausen Wienersdorf-Oeynhausen Rubach Kindberg Neutal Graz Zams Zams Nussdorf Linz Salzburg Horn Horn Vienna

EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR

44 36 35 182 36 365 218 1,300 73 73 73 36 40 80 100 40 36 36 35 40 3,270 35 1,090 727 365 35 1 37 35 37 300 581 73 363 2,281 38 35 35 36 73 37 1,497 50 40 150 36

7.67% 76.65% 19.55% 19.91% 76.65% 76.65% 76.65% 76.65% 19.16% 94.00% 76.65% 76.65% 19.16% 17.25% 76.65% 76.65% 18.40% 76.65% 76.65% 76.65% 8.43% 38.33% 76.65% 76.65% 18.40% 38.33% 38.33% 38.33% 76.65% 76.65% 38.33% 18.40% 25.55% 25.55% 16.70% 8.43% 39.09% 76.65% 38.33% 34.50% 12.26% 25.55% 76.65% 38.33% 38.33% 76.65%

AE C N N C C C C AE C C C N AE C C AE N N C AE N C C AE N N AE C C AE AE N AE N AE AE C AE AE N N C N AE C

Eching Dresden Eching

EUR EUR EUR

60 256 10,000

78.05% 39.03% 78.05%

C AE C

Company

Domicile

Nominal capital in 1,000 CU

Effective percentage of ownership

Type of consolidation

Alpine Building Services GmbH Alpine Project Finance and Consulting GmbH Alpine Untertagebau GmbH Alpine-Energie Deutschland GmbH Alpine-Energie Holding AG CSS - City Service Solution GmbH E. Gottschall & Co GmbH Ferro-Betonit Baugesellschaft mbH Ingenieurbro fr Energie- und Haustechnik Andreas Duba GmbH *) Stump Spezialtiefbau GmbH TSK Sand und Kies GmbH W+M Wohn- und Gewerbebau GmbH Walter Hamann Hoch-, Tief- und Stahlbetonbau GmbH WaTI Patentverwertungs GmbH Ziegelwerk Freital Eder GmbH ALBANIA Alpine Tirana Sh.p.k. ALPINE Bau GmbH, Filiali Tirane Sh.p.k. BOSNIA-HERZEGOVINA ALPINE BH doo Travnik Alpine d.o.o. Banja Luka Alpine Investment d.o.o. Alpine Rudnik Krecnjaka Lapisnica d.o.o. Cesting d.o.o. OSIJEK-KOTEKS d.o.o. RMG d.o.o. SWIETELSKY - ALPINE d.o.o. BULGARIA ALPINE - PONS GmbH Alpine Bulgaria A.D. Alpine Green Energy Bulgaria OOD Strojinvest - ALPINE GmbH CHINA Alpine Mayreder Construction Co. Ltd. AMCC CROATIA Asfaltna Cesta d.o.o. AUTOBUSNI KOLODVOR OSIJEK d.o.o. Kappa d.o.o. OKTAL PLUS d.o.o. *) Osijek Koteks d.d. OSIJEK-KOTEKS d.o.o. Vela Borovica koncern d.o.o. VELICKI KAMEN d.o.o.

Eching Eching Eching Biberach Biberach Biberach Eching Munich Trbnitz Ismaning Trostberg Munich Berlin Eching Freital

EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR

25 1,250 26 3,070 6,000 103 26 26 25 4,000 153 51 26 25 511

78.05% 76.65% 75.88% 76.65% 76.65% 76.65% 100.00% 76.65% 70.25% 76.65% 25.55% 45.99% 78.05% 78.05% 31.22%

C C C C C C C N C C N N C N AE

Tirana Tirana

ALL ALL

615 100

76.65% 76.65%

N C

Travnik Banja Luka Sarajevo Sarajevo epe Sarajevo Sarajevo Banja Luka

BAM BAM BAM BAM BAM BAM BAM BAM

10 2 5 2 2 2 5 2

53.66% 76.65% 39.09% 39.09% 32.04% 53.40% 39.09% 32.58%

N C C C N N C N

Sofia Sofia Sofia Sofia

BGN BGN BGN BGN

5 3,855 5 5

39.09% 39.09% 38.33% 38.33%

N C N N

Beijing

CNY

30,000

57.49%

Split Osijek Osijek Zagreb Osijek Zagreb Zagreb Velika

HRK HRK HRK HRK HRK HRK HRK HRK

20 20 20 20 44,790 4,570 20 18,382

53.40% 53.40% 53.40% 53.40% 53.40% 53.40% 76.65% 53.40%

C N C C C C C C

Notes to the consolidated financial statements 091

Effective percentage of ownership Type of consolidation

Company

Domicile

Nominal capital in 1,000 CU

CZECH REPUBLIC ALPINE Bau CZ s.r.o. ALPINE-ENERGIE Cesko spol.s.r.o. *) MAYREDER BOHEMIA stavebni spolecnost spol. s. r.o. Silasfalt s.r.o. Stump - Geospol s.r.o. ZNOJMO - CITY a.s. GREAT BRITAIN Morgan Beton and Monierbau Limited HUNGARY Alpine Hungria pit Kft. BA-P Balaton Aszfalt - s pit Kft. Wellnesshotel pt Kft. INDIA Alpine Bau India Private Limited ITALY ALPINE GREEN ENERGY ITALY S.R.L. *) ALPINE-ENERGIE Solar Italia S.R.L. SOLAR PARK SERENA S.R.L. *) LUXEMBOURG Alpine Energie Luxembourg S.a r.l. MACEDONIA ALPINE MINERALNI SUROVINI DOOEL Alpine Skopje DOOEL Alpine-Aleksandar d.o.o. OSIJEK-KOTEKS SUROVINI DOOEL SKOPJE MONTENEGRO Alpine-Podgorica d.o.o. NIEDERLANDE Stump - Fundierungstechnik B.V. POLAND ALPINE Bau GmbH A-1 splka jawna ALPINE Construction Polska Sp.z o.o. Alpine Green Energia Sp.z.o.o. *) ALPINE PRO 1 Sp. z o.o ALPINE PRO 2 Sp. z o.o. ALPINE-ENERGIE Polska Sp.z.o.o. *) Alpine-Slask Budowa Sp.z.o.o. Stump Hydrobudowa Sp.z.o.o. Warsaw Cracow Piotrkw Trybunalski Piotrkw Trybunalski Piotrkw Trybunalski Swidnica Myslowitz Warsaw PLN PLN PLN PLN PLN PLN PLN PLN 15 196 199 5 50 200 50 330 76.65% 78.05% 57.39% 34.43% 57.39% 76.65% 76.65% 76.65% C C C N N C C C Amsterdam EUR 25 76.65% N Podgorica EUR 1 76.65% C Skopje Skopje Skopje Skopje MKD MKD MKD MKD 306 306 310 5 76.65% 76.65% 73.58% 53.40% N C C N Foetz EUR 750 76.65% C Misterbianco Bozen Manciano EUR EUR EUR 10 10 10 76.65% 76.65% 53.66% C C C New Delhi INR 100 76.65% C Budapest Keszthely Budapest HUF HUF HUF 118,060 9,300 3,000 76.65% 38.33% 76.65% C N C Edinburgh GBP 25 37.94% N Valask Mezi Prague Prague Ostrava-Kuncice Prague Brno CZK CZK CZK CZK CZK CZK 135,000 1,300 100 64,000 3,500 1,000 76.65% 76.65% 76.65% 38.33% 76.65% 38.33% C C N AE C N

Company

Domicile

Nominal capital in 1,000 CU

Effective percentage of ownership

Type of consolidation

ROMANIA Alpine S.A. ANDEZIT STANCENI S.R.L. DDHVENT Bravo S.R.L. DONAU INVESTMENT S.R.L. GRANITUL S.A. RUSSIA OOO "Alpine Mayreder" SAO Alpine Gaz SERBIA Alpine d.o.o. Beograd Alpine Dolomit d.o.o. Alpine Granit d.o.o. Alpine-Porr Constructions d.o.o. Grados d.o.o. *) SEVER-JUG AUTOPUT d.o.o. Strazevica Kamenolom d.o.o. SLOVAKIA Alpine Slovakia spol. s r.o. D1 Construction s.r.o. *) PPE Malzenice s.r.o. SLOVENIA Alpine Consulting d.o.o. Ecoenergetika d.o.o. SWITZERLAND Alpine-Bau GmbH Alpine-Energie Schweiz AG PRO-PART AG PRO-PART Energie GmbH UKRAINE TOV Alpine Ukraine Kiev UAH 175 76.65% N Hergiswil Oftringen Oberschan Oberschan CHF CHF CHF CHF 100 1,500 100 30 76.65% 76.65% 76.65% 76.65% C C C C Celje Celje EUR EUR 9 41 76.65% 76.65% C C Bratislava Bratislava Bratislava EUR EUR EUR 23,850 10 20 76.65% 38.33% 38.33% C AE AE Belgrade Petrovac na Mlavi Ljubovija Belgrade Novi Sad Belgrade Batocina CSD CSD CSD CSD CSD CSD CSD 831,496 29,701 93,614 835 45 159,553 263,971 76.65% 76.65% 76.65% 76.65% 53.40% 38.33% 76.65% C C C N C N C Moscow Moscow RUB RUB 10 1,500 76.65% 30.66% C N Judetul Ilfov Judetul Mure Bucharest Bucharest Bucharest RON RON RON RON RON 3,747 1 1 1 12,256 76.65% 76.65% 38.33% 38.33% 32.14% C C N N 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 ALPINE holding 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 industrys 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 consequential 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 industrys development on ALPINE home markets: In 2011, the most significant increase in construction 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 European 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 industry 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 (particularly 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 government 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 governments 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 %.

Management Report for the Fiscal Year 2010 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 (Unternehmensliquidittsstrkungsgesetz - 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, Eching 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 %.

3 Risk Management
Risks are inherent to business management. The objective of ALPINEs group-wide risk management system is to detect such risks early, to monitor them and to take measures to minimize such risks. Management 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 twelvemonth 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 nonconformance analyses ensure the required planning quality.

Management Report for the Fiscal Year 2010 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.

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 development 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, 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 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 groups 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 groups 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, particularly in the area of sustainable energy generation. Thus we assume a continued sound growth of the company that will increasingly strengthen the groups 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 presentation of the consolidated financial statements. Wals bei Salzburg, March 30th 2011 Alpine Holding GmbH The Management Board

Werner Watznauer m.p.

099

5 Annual financial statements as per 31 december 2010 ALPINE holding gmbH

Balance sheet as OF 31 December 2010

31 Dec. 2010 in EUR Assets A I B I Fixed Assets Financial Assets 1. Shares in affiliated companies Current Assets Receivables and other assets 1. Receivables from affiliated companies 2. Other receivables and assets II C Cash on hand and at bank Deffered charges 1. Disagio bond 143,100.00 112,090,689.39 EQUITY AND LIABILITIES A I II III Equity Share capital Capital reserves 1. Unappropriated Revenue reserves 1. Statutory reserves 2. Other reserves (free reserves) IV Total Profit 1. Profit carried forward 2. Profit for the year B C Provisions 1. Other provisions Liabilities 1. Liabilities due to banks 2. Liabilities of trade 3. Liabilities to affiliated companies 4. Other liabilities 100,000,000.00 223,401.60 0.00 2,625,000.00 102,848,401.60 112,090,689.39 Contingent liabilities 294,697,864.39 0.0 0.0 251.7 0,0 251.7 5,969.6 16,418.0 71,919.24 0.9 5,516,105.19 3,442,501.36 9,170,368.55 10,900.93 97.74 8,958,606.55 91,754.08 10,998.67 91.8 0.1 0.0 0.1 5,516.1 5,527.0 -10.9 5,717.0 109,009.25 109.0 0.0 5,969.6 105,834,105.19 49.21 147,742.25 105,981,896.65 0.0 0.2 3.7 3.9 5,965,692.74 5,965.7 31 Dec. 2009 in TEUR

Annual financial statements 101

Income statement for the year 2010

2010 in EUR 1 Other operating income a. Income from the reversal of provisions b. Other 2 Other operating expenses a. Other 3 Opertating results (subtotal from line 1 to 2) 4 Income from shares (thereof affiliated companies EUR 3,942,580.00; prior year. TEUR 0.00) 5 Interest received and similar income (thereof affiliated companies EUR 2,750,746.71; prior year. TEUR 0.00) 6 Interest and similar expenses (therof affiliated companies EUR 5,626.98; prior year TEUR 10.4) 7 Financial result (subtotal from line 4 to 6) 8 Income from ordinary business activities 9 Taxes on income 10 Net profit/loss for the year 11 Allocation to statutory reserves 12 Profit/loss for the year 13 Profit carried forward 14 Total profit 4,047,082.35 3,455,152.29 -1,750.00 3,453,402.29 -10,900.93 3,442,501.36 5,516,105.19 8,958,606.55 -10.2 -9.1 -1.8 -10.9 0.0 -10.9 5,527.0 5,516.1 -2,646,526.98 -10.4 2,751,029.33 0.2 -885,805.33 -591,930.06 3,942,580.00 -242.0 1.1 0.0 120.00 293,755.27 2.3 240.8 2009 in TEUR

Fixed assets schedule

Costs of aquisition Depreciations Carrying amount

in EUR

A Assets Disposals Disposals

Costs of aquisition 01.01.2010 Transfer in the books depr. / amort. 2010

Additions

Costs of aquistion 31.12.2010

Acc. depr./ amort. 01.01.2010

Acc. epr./ amort. 31.12.2010

31.12.2010

31.12.2009

Financal assets

1. Shares in affiliated companies 0.00 0.00 0.00 5,965,692.74 0.00 0.00 0.00 0.00 5,965,692.74 0.00 0.00 0.00

5,965,692.74

0.00

0.00 0.00

5,965,692.74 5,965,692.74

5,965,692.74 5,965,692.74

Amount Assets

5,965,692.74

0.00

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 Company 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 companys 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.

Notes for the financial year 2010 105

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 E. Gottschall & Co. Bauunternehmung GmbH Share 94% EUR 3,341,257.33 EUR 2,624,435.41

Share 100%

Receivables and other assets

The receivables have the following terms:
res. term < 1 year 105,834,105.19 0.00 49.21 177.40 105,834,154.40 177.40 res. term > 1 year 0.00 0.00 0.00 0.00 0.00 0.00

in EUR

Year 2010 2009 2010 2009 2010 2009

Total 105,834,105.19 0.00 49.21 177.40 105,834,154.40 177.40

Receivables from affiliated companies Other receivables and assets

EQUITY AND LIABILITIES

Equity
31 Dec. 2010 in EUR Share capital Capital reserves Revenue reserves Total profit Equity 109,009.25 91,754.08 10,998.67 8,958,606.55 9,170,368.55 31 Dec. 2009 in TEUR 109.0 91.8 0.1 5,516.1 5,717.0

The total profit that is shown in the balance sheet per 31 December 2010 is derived from the previous years balance sheet as follows:
in EUR Total profit 31 Dec. 2009 Distribution referred to decision Profit carried forward Net income for the year 2010 Total profit 31 Dec. 2010 5,516,105.19 0.00 5,516,105.19 3,442,501.36 8,958,606.55

Provisions
The other provisions were formed according to the expecting impositions.

Liabilities
The liabilities have the following terms:
in EUR year 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 res. term < 1 year 0.00 0.00 223,401.60 0.00 0.00 251,672.50 2,625,000.00 0.00 2,848,401.60 251,672.50 res. term > 1 year 100,000,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 100,000,000.00 0.00 res. term > 5 year 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Total 100,000,000.00 0.00 223,401.60 0.00 0.00 251,672.50 2,625,000.00 0.00 102,848,401.60 251,672.50

Bonds Liabilities from trade Liabilities to affiliated companies Other liabilities

Bonds
By the Alpine Holding GmbH a company bond with the valuta of 1 July 2010 was emitted. The conditions are: Issuer Volume in EUR Denomination in EUR Repayment Nominal interest rate Coupon Public offering Joint Lead Alpine Holding GmbH 100,000,000.00 1,000.00 final maturity at 100 % of the nominal value 5.25 % p.a. 1 July annually Vienna Stock Exchange, organized regulated market UniCredit Bank Austria and BAWAG PSK

Maturity 2010-2015

ISIN 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.

Notes for the financial year 2010 107

CONTINGENT LIABILITIES
31 Dec. 2010 in EUR Guarantees for affiliated companies Alpine Bau GmbH, letter of comfort Porsche Bank AG 31 Dec. 2009 in TEUR

294,697,864.38

16,418

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 Companies 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 sterreichische 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 collateralization 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 ALPINEGroup, 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 performance 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.

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

in EUR Hoch & Tief Bau Beteiligungs GmbH, Salzburg E. Gottschall & Co Bauunternehmung GmbH, Eching * after in-phase dividend payout Share in % 94% 100% Equity 2,102,044.11* 37,633.35* last stated annual net profit or annual deficit stated -3,683.84 6,976.00 Year 2010 2010

Information concerning the executive bodies of the company and the employees
Number of employees
The company doesnt have employees.

Executive bodies of the company

Werner Watznauer is the exclusive managing director.

Members of the Supervisory Board

Mr. Dietmar Aluta-Oltyan Mr. Alejandro Tuya Garcia Mrs. Esther Koplowitz Romero de Juseu Mrs. Esther Alcocer Koplowitz Mr. Jose Mayor Oreja Mr. Robert Peugeot Mr. Jose Aguinaga Mr. Willy Bck Mrs. Alicia Alcocer Koplowitz Mr. Alfred Gusenbauer Mr. Jose Manuel Burgos Mr. Francisco Martin Monteagudo Mrs. Benita Ferrero-Waldner Wals bei Salzburg, 30 March 2011 The management chairman deputy chairman member member member member (to 1 March 2011) member member member member (to 7 May 2010) member member (from 22 May 2010) member (from 1 March 2011)

Werner Watznauer m.p.

Notes for the financial year 2010 109

Statement of all Legal Representatives alpine holding gmbh

We confirm to the best of our knowledge that the separate financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the parent company as required by the applicable accounting standards and that the management report gives a true and fair view of the development and performance of the business and the position of the company, together with a description of the principal risks and uncertainties the company faces. Wals bei Salzburg, 30 March 2011 Alpine Holding GmbH The Management Board

Werner Watznauer m.p. Sole managing director

Audit Opinion 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. Managements Responsibility for the Financial Statements and for the Accounting System The Companys management is responsible for the accounting system and for the preparation and fair presentation of financial statements in accordance with Austrian Generally Accepted Accounting Principles. 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 accounting estimates that are reasonable in the circumstances. Auditors 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 conducted 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 auditors 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 Companys 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 Companys 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 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.

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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 Companys position. The auditors report also has to contain a statement as to whether the management 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 Wirtschaftsprfungs GmbH Michael Schober m.p. Certified Public Accountant ppa Nikolaus Mller m.p. Certified Public Accountant

ImPRINT
PUBLISHER ALPINE Holding GmbH Marketing & Corporate Communication Alte Bundesstrae 10 5071 Wals/Salzburg Austria Telephone +43 662 8582-0 Fax -9900 marketing@alpine.at www.alpine.at CONCEPT & REALISATION spielplatz.cc // Concept ALPINE // Text: Andreas Eder, Marina Pollhammer // Design: Florian Frandl PHOTOGRAPHY Andreas Hofer // Concept photo gallery Alexander Vorderleitner // Portrait ALPINE Management ALPINE photo archive // Remaining photos NOTICE Questions: Please contact Andreas Eder, E-Mail: andreas.eder@alpine.at / Telephone +43 662 8582-280 Gender 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.

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ALPINE Holding GmbH Alte Bundesstrae 10 5071 Wals/Salzburg Austria Telephone +43 662 8582-0 Fax -9900 office@alpine.at www.alpine.at