§ Expansion of the market position

In 2008, STRABAG generated nearly 80 % of its output volume in those countries in which it holds a market position among the top 3 construction firms. These countries are Austria, Germany, Hungary, Slovakia, Rumania, Czech Republic and Poland. Often the company follows its European clients onto non-European markets. Or it engages in individual projects outside of Europe in which a high degree of technological know-how is required – in Canada, India or Libya, for example. In the Middle East, activities have been focused on Oman, Qatar, Abu Dhabi and Saudi Arabia.

§ Securing access to resources

In 2008, STRABAG had set itself the objective of expanding its raw materials access – and it was successful. Through acquisitions, the company has increased the number of quarries and gravel pits by 76 and has purchased a further 95 asphalt and concrete mixing facilities. As a result, it was able to increase the density of its resource network in particular in Germany, the Czech Republic and Romania. With 188 quarries and gravel pits, 348 asphalt and 199 concrete mixing facilities, STRABAG possesses an extensive network which is already quite dense in the areas of stone/gravel on the home markets as well as on several growth markets.

§ Public-Private-Partnerships (PPP) and concession projects

Public Private Partnerships (PPP) have been gaining in importance in public-sector projects in the past few years. PPP projects involve a partnership between the public and the private sector regarding the financing, building, maintenance and operation of infrastructure projects. Concession projects offer a continuous stream of income – even during times when the construction sector is in an unfavourable phase. In order to mitigate economic, cyclical or seasonal fluctuations, STRABAG wants to press ahead with its engagement in PPP and concession projects.

§ Investments in value-adding acquisitions

STRABAG won’t be able to pursue its strategic objective of market leadership through organic growth alone. For this reason, it keeps its eyes open for potential takeover candidates during the past financial year. The company remained consistent in pursuing its strategy of growing through acquisitions and made eight major purchases. With the acquisitions, STRABAG is attempting not just to strengthen its market shares but also to extend its value-added chain. In 2009, the focus will be on the integration of the companies acquired in 2008. Larger acquisitions are not planned.



§ Strict cost, capital and risk discipline to increase margins

In recent years, STRABAG has worked on increasing its margins. Unfortunately, it did not manage to do so in the financial year 2008. The EBITDA margin fell from 6.0 % to 5.3 %, the EBIT margin from 3.2 % to 2.2 %. Naturally, it is continuing to focus on cost efficiency, disciplined employment of capital and strict risk management. Furthermore, the company is increasingly shifting its business toward know-how intensive niche activities. In the current market environment, STRABAG is complementing its strategy of cost and risk discipline with the objective of assuring adequate liquidity and ensuring the continued existence of the company.

Please find the details concerning our growth drivers in our Annual Report 2008.