2011 Annual Review of the Lahmeyer Group

2011

Contents

Publication Details

Publisher: Lahmeyer Holding GmbH, Bad Vilbel, Germany Editorial Team: Sabine Wulf, Elena Gross, Lahmeyer International GmbH Design and Lithography: magenta GmbH & Co. KG, Mannheim, Germany Print: Druckerei Ottweiler und Verlag GmbH, Ottweiler, Germany Picture Credits: Lahmeyer Holding, unless otherwise indicated

Reprinting, processing and electronic dissemination, even in extracts, are allowed only with the editorial team’s prior consent.

© Lahmeyer Holding 2012

Managing Directors’ Letter 3

Lahmeyer Group 4

2011 Lahmeyer Group Management Report 6

Our Employees 8

Business Philosophy 9

Energy Division 10

Water Resources Division 14

Building & Transportation Division 18

Lahmeyer International India 20

Our Values 22

Contact Details 23

Dear Readers

“There are only as many days in the year as you make use of”. We would like to choose this quotation by Charles Dow Richards to introduce our new publication series, with which we will now keep you regularly abreast of our Company’s performance over the past calendar year.

The extremely positive results of our business activities prove that we made very good use of the days in 2011. Thanks to the commitment of our qualified staff and the trust of our clients, we were able to increase the revenue of individual divisions significantly in the reporting period. Our impressive earnings are further reinforced by a solid basis of contracts for the coming years.

Looking to the future, we will continue to focus on sustainable growth, which we will achieve both by organic means and by acquiring suitable companies.

In many countries in which we operate, stable energy and water supply is a challenge which we try to overcome by contributing our engineering expertise. In these countries in Africa and Asia – important regions for Lahmeyer – particular demands are also made on the conduct of our staff. In addition to intercultural collaboration, cooperation in line with our ethical values and the rules of our Compliance Management System, to which we at Lahmeyer have committed, play a vital role here.

In these ways, we contribute to the meaningfulness of our activities and to responsible actions in relation to clients, society and the environment.

We hope that our 2011 Annual Review provides you with interesting reading.

Markus AuerCommercial Managing Directorand CFO

Dr Bernd KordesPresidentand CEO

4

Lahmeyer is one of the leading engineering companies for multidisci-plinary tasks in the fields of energy, water and hydropower, as well as building and transportation. Our name stands for experience, quality and an international network – not only in the developing and emerging countries of Asia and South America, but also in Germany and Europe as a whole.

Our work is carried out in accordance with German and international quality standards, which we implement in close cooperation with our local employees and partners in order to fulfil our clients’ requirements.

Leaders in EnergyIn the ranking of engineering companies with global operations, determined annually by the trade periodical Engineering News Record (ENR), the Lahmeyer Group occupies one of the top places in respect of the key energy sectors, i.e. for hydropower, power

LAHMEYER GROUP

Engineering Expertise Throughout the World.

transmission and distribution, as well as for renewable energy from wind and sun.

Our clients include governments, authorities, energy suppliers, industrial corporations, investors, banks and international financing institutions, who value us as competent and reliable consultants for their projects.

We support them in all project phases, from project development to construc-tion and commissioning through to and including operations.

Over 120 Years’ ExperienceThe German electrical engineer Wilhelm Lahmeyer founded the company W. Lahmeyer & Co. in Frankfurt am Main in 1890. He was a courageous visionary, who facilitated an industrial breakthrough with the implementation of practical inventions harnessing the newly discovered power of electricity.

Lahmeyer engineers have since succeeded in producing pioneering innovations, particularly in the utilization of hydropower and other renewable energy technologies, in the construction of power stations, and in the transmission and distribution of electricity. Continu-ous striving for the highest standards enables the Lahmeyer Group to grow steadily and to expand the Group’s range of specialist competencies.

Sustainable GrowthOur strategic orientation is aimed at growth, but not at any price. Our priority is to achieve organic growth based on our strengths and core competencies, with growth through M&A activities also playing an important role. In 2011, for example, we significantly increased our market presence in the Turkish water sector by acquiring the Turkish company, Hidro Dizayn.Our plans for growth include further strategic acquisitions.

Personnel Lahmeyer InternationalSpecialist Areas

Lahmeyer InternationalSpecialist Areas

Lahmeyer München, Germany Energy

Controlling Lahmeyer Berlin, Germany

Water Resources and Hydropower

Finances and Accounting Lahmeyer Rhein-Main, Germany

Taxation

Legal

Information Technology

Internal Audit

Internal Services

OOO Lahmeyer International Rus, Russia

Consulting Engineers Lahmeyer Nigeria

Lahmeyer IDP Consult,Phillippines

Hydroprojekt Ingenieur-gesellschaft, Germany

Hidro Dizayn Mühendislik Müsavirlik insaat ve

Ticaret, Turkey

Lahmeyer Agua y Energía, Peru

Lahmeyer GKW Consult,Germany

Customer Relationship Management

Marketing & Business Development

Compliance

Quality Management

Central Services Water Resources Division

Building & Transportation Division

Lahmeyer InternationalIndiaEnergy Division

ManagementDr Bernd Kordes (Chair & CEO)

Markus Auer (CFO)

Group Companies

Lahmeyer International GmbH

Structure of the Lahmeyer Group

Transportation

5

Importance of Quality Lahmeyer International was founded in 1966 from the engineering depart-ment of the former Lahmeyer AG, and now has a global presence. It has founded further successful companies over the decades.

Today, our Group consists of 12 consolidated national and international companies, which are divided into three operational divisions, i.e. Energy, Water Resources and Building & Transportation. The subsidiary Lahmeyer International India consti-tutes a separate division, with particular expertise in the energy sector, and also in the fields of hydropower and transportation.

Lahmeyer employs some 1500 staff, including at the Group Headquarters in Bad Vilbel, which also performs a management and service function for the operational divisions.

Engineers, scientists and economists from more than 30 disciplines work together using state-of-the-art technologies in the tradition of the pioneers. Project offices in 40 coun-tries enable us to provide the best possible in-country support.

Solution-Oriented and Flexible Our global presence ensures close relations with our clients. Working with our local partners, we provide a wide range of independent technical and economics planning and consul-tancy services.

The long-term environmental and social sustainability of our projects has a high priority for us alongside the required economic viability. Together with our clients, we are responsibly shaping the future.

IndependenceAs engineers and consultants operat-ing on an international scale, we attach the highest importance to working independently of construction companies, manufacturers and suppliers.

This neutrality allows us to achieve the optimum solution for each project. This has led to our place among the global leaders in our principle areas of operation.

Lahmeyer Services

Pre-Investment Phase Implementation Phase Operation Phase

Commencement of OperationsOption: EPC Contract Award

Market Analyses, Energy Management Studies

Due Diligence

Concept and Design

Operation & Maintenance Management

Warranty Management

Rehabilitation

Execution Planning

Construction Management, Construction Supervision

Concept Planning, Tendering and Contract Award

Project and Contract Management, Quality Assurance

Commissioning Training for Planning, Project Management and Operation

Feasibility Studies

6

The recovery of the world economy, which began in 2010, continued in 2011 and has positively impacted our fields of activity.

Demand for the engineering services offered by Lahmeyer has been sustained at a high level. This includes large-scale infrastructure measures, which, in view of the long project preparation and execution times, are implemented independently of economic conditions.

Lahmeyer operates in an internation-ally growing market for engineering services with a variety of client groups and focal points. This allows us to spread business risks in a reliable way.

Opportunities are anticipated for large infrastructure projects in the hydro-power and water supply sectors, in the power plant sector, in energy trans-mission and distribution as well as in renewable energies.

We differentiate ourselves from other market players through our know-how as consulting engineers, built up over many years, and our first-class project references.

Revenue and Revenue Development In 2011, Lahmeyer achieved sales revenues of € 147 million. This represents growth of 34 % compared with the previous year (€ 109 million).

The Energy Division, including Lahmeyer International India, accounted for € 82 million, or 56 % of this turnover. The Water Resources Division was responsible for 39 % of Lahmeyer’s revenue, an amount of € 58 million. The Building & Transportation Division, whose main operations are in Germany, recorded revenues of € 7 million.

Since 2009, the Energy Division has achieved a significant growth of 65 %, including the revenue growth of Lahmeyer International India. At € 23 million, our Indian subsidiary more than doubled their revenue compared with the prior year (€ 10 million), mainly as a result of a large project with a very high propor-tion of subcontracted services.

The Water Resources Division increased its revenues by 36 % in the same period.

LAHMEYER GROUP

Management Report

Revenue Growth with Hidro Dizayn The new Lahmeyer Group daughter company, Hidro Dizayn, contributed € 17 million to the revenue growth of the Water Resources Division.

With around 280 employees, the Hidro Dizayn Group is one of the leading Turkish engineering companies in the hydropower sector. Hidro Dizayn, which is based in Ankara, and its subsidiary, Hidrolin Hidrodizayn & Linerji Enerji Mühendislik ve Müsavirlik in Georgia, are currently working on some 40 hydropower projects in Turkey and neighbouring countries. Its clients include DSI, the Turkish State Hydraulic Works, and many private clients.

Incoming Contracts and Contract Development The Group achieved incoming contracts totalling € 138 million in the financial year 2011, an increase of 30 % over the previous year (€ 106 million). The Water Resources Division, closely followed by the Energy Division, accounted for almost half the volume of incoming contracts. The value of the Lahmeyer Group’s outstanding contract work stood at € 127 million at 31 December 2011.

82

58

7

57

45

8

49

42

8

Revenue Development per Division

2010 20112009

Build. & Trans. Water Res. Energy in € millionRevenue (IFRS); up to 2008 HGB Incoming contracts in € million

Incoming Contracts and Revenue Development

10197

147138

2006 2007 2008 2009 2010 2011

7

EmployeesOur employees are our most important success factor. The recruitment of qualified employees is therefore a key factor in ensuring our continued success.

The number of employees in our Company increased significantly in 2011 to some 1500, with more than 400 new employees being welcomed during the year. No fewer than 280 employees joined the Lahmeyer Group through the acquisition of Hidro Dizayn.

Market DevelopmentThe global trend towards energy production by means of wind and solar power is resulting in increased demand for pumped storage power plants, which even out fluctuations between energy production and demand.

The international consultancy market for infrastructure projects in the area of energy, hydropower and irrigation in the countries of Africa, the Near and Middle East as well as Asia offers great potential for business growth. This market involves very large investment projects, for which the Lahmeyer

Group has excellent references. Weare expecting significant growth opportunities here in future.

Economic growth of between 3 % and more than 7 % also results, in principle, in reliable demand and promising contract opportunities for the Lahmeyer Group – always assuming that project funding can be provided.

Outlook for 2012The high value of outstanding contract work in both the Energy Division and the Water Resources Division provides a sound basis for a reliable workload in the coming years.

In addition to organic growth, the new engineering companies acquired to reinforce our international business provide good opportunities for further development of the Lahmeyer Group as one of the largest engineering companies in the world in the energy and water sectors.

Especially interesting opportunities for the future development of the Lahmeyer Group are offered by the demand for energy, which continues to increase worldwide, with wind energy,

photovoltaics, solar thermal energy and biomass being of particular importance, as a result of national and international promotion of renewable energies.

In the coming two financial years the Group expects moderate revenue growth and good opportunities for maintaining the percentage return on sales despite increased pricing pressures.

Acquisitions in 2012 will also contribute to future revenue growth. In the first half of 2012, the Lahmeyer Group acquired further companies. A detailed description of these acquisitions will appear in the next issue of our Annual Review.

Group Headquarters Build. & Trans. Water Res. Energy Lahmeyer Group

2009 2010 2011

71 71250

609

1001

63 91244

694

1092

63 98

575767

1503Lahmeyer Group Employees

8

Our Employees. Experienced. Professional. International.

LAHMEYER GROUP

Our employees are the secret of our success. Trust is generated by their knowledge of the state of the art with regard to current and future technologies, their long-standing specialist experience, and their enthusiasm for, and commit-ment to, our clients throughout the world.

Around 1500 employees from 40 nations are currently employed within the Lahmeyer Group.

Experts for All AreasEmployees from more than 30 disci- plines, including engineers, scientists and economists, are the basis of our Group’s successful handling of a wide variety of project types.

Many of them have experience not only in their own technical fields, but have also developed intercultural skills, having spent many years on interna-tional assignments. Our teams are therefore also able to adjust quickly to any challenge in a new environment.

Scope for Development and Career Our growth can be successful only if our employees have confidence in their employer. Every employee, from those at the start of their career to the experienced professional, should feel comfortable in our working environment and be offered the right degree of challenge and responsibility.

Evidence of our success in this respect is the average length of service, which stands at 10 years, and the average age of our specialists, which, at 47, is also indicative of their experience.

Exchange within the TeamTrainee engineers, particularly in their first years of work, often have recourse to the knowledge of their older colleagues, while the experienced engineers, conversely, keep up with current developments. As each individual project also requires interdisciplinary approaches, teamwork and interdepartmental collaboration are integral parts of our everyday working environment.

“Working together with different clients and contractors is an exciting experience, which brings a lot of variety, a high level of personal responsibility and great scope for project implemen- tation.”

Dr Vladimir Zorc, Head of Hydropower Plant Equipment Department

“I am actively involved in all phases of the implementation of a hydroelectric power plant. The diversity of activities makes my work extremely interesting and I am faced with new challenges (almost) every day.”

Dr Gang Sheng, Project Manager for Water Resources and Hydropower

“I have been employed at Lahmeyer since 2005 and have experienced projects world-wide in this period. For me as a civil engineer, supporting the construction phase of a project in Korea over a period of several months was particularly fascinating.”

Dr Patric Kleineidam, Head of Wind Energy Department

9

Trust and Responsibility.Our Business Principles.

Business EthicsThe ethical bases of our consultancy services are laid down in our business principles. They help us to determine ways of working that are in line with our Company’s values. All employees base their conduct on our ethical principles.

We require our senior managers to practise our ethical principles in an exemplary manner, to convey them to those for whom they are responsible, and to set standards for compliance with them. These managers are the first point of contact if employees have ethical questions.

Compliance Management System In order to develop this foundation, Lahmeyer International has introduced a Compliance Management System (CMS) during the last few years. This system has been designed to meet the challenges of international business activity. The implementation of this exacting system derives from the knowledge that Lahmeyer’s competi-tiveness must be based on fair and transparent business operations.

To this end, we have developed uniform standards of conduct that are implemented in line with our Compliance Guidelines.

Tested and RecognizedOur endeavours in this area have paid dividends over the last few years.The Compliance Management System has successfully established itself at Lahmeyer and, in the meantime, has been verified and recognized by both the World Bank and the European Bank for Reconstruction and Development.

“The combination of technical require-ments and dealing with people make the tasks interesting and extremely varied. Our role as consultants enables and requires us to help to shape the projects actively.”

Bernd Rössner, Project Manager for Thermal Power Plants

“The support of colleagues in the project team is an important compo-nent of project success. I very much enjoy the rich variety of tasks, the high degree of responsibility and working with international clients.”

Frank Feyand, Specialist Engineer for Privately Funded Power Plant Projects

“I especially like the international environment, both internal and external. Not only do we have a global clientele, but colleagues also come from many countries to work for Lahmeyer.”

Henriette Hoffmann, Commercial Project Manager, Energy Division

10

ENERGY DIVISION

Energy is Our Passion.

Gemasolar 19 MW solar tower power plant, Spain

Client: Torresol Energy Investments, Madrid

© Torresol Energy Investments, Madrid, Spain

Our Company’s success story had its roots in this sector. Energy creates power. Optimally harnessing its potential requires efficient generation and distribution. We have mastered this demanding sector for more than 100 years.

Our Energy Division combines all the services needed for energy generation projects for both conventional and renewable energy sources, as well as for energy transmission and distribution, energy storage and management. These comprehensive services are provided by Lahmeyer International, our subsidiaries in India, Nigeria, Russia, Qatar, and now also by

Lahmeyer IDP Consult in the Philippines, which was acquired in April 2012.

Complex RequirementsGlobal energy demand is constantly growing, but both energy consumption and the available resources are unevenly distributed. Only innovative solutions can overcome this discrep-ancy. New and renewable energies as well as continual improvement of energy efficiency are particularly important here.

Secure energy supply requires responsible action. Our clients benefit from our decades of experience. Through excellence in the technical

competencies we are able to provide economic solutions that also meet today’s demands for sustainability and environmental compatibility – so that the plans we make today meet tomorrow’s requirements as well.

Commitment Down to the Last Detail Our fields of activity in the Energy Division are as varied as the underlying technology. They range from needs analysis to feasibility studies through to detailed design; from supervision of construction through to operational support.

Our knowledge of every last detail of a project and its optimal structuring

11

Qurayyah combined cycle gas turbine power plant under construction, Greater Dammam, Saudi Arabia

Client: Saudi Electricity Company (SEC), Riad

enable us to fulfil the expectations of investors, banks, operators and government agencies alike. Our innovative approaches ensure the success of each individual project.

Reliable PartnerWe plan and supervise the reconstruc-tion and rehabilitation or upgrading of fossil fuel-fired power stations. Our experts design plants for harnessing regenerative energy, from wind and solar power to biomass through to geothermal energy.

We undertake the planning and optimization of energy transmission and distribution as well as the diverse electrical engineering tasks in the various types of power plant. We provide advice in respect of the operation of the power plants and networks. Our knowledge allows us to support energy suppliers, industrial corporations and governments in diverse energy management issues. This know-how makes us a reliable partner for industry as well as for private investors.

Industrial Initiative “dii”To take maximum advantage of the opportunities offered in the area of renewable energies, Lahmeyer joined the Desertec Industrial Initiative dii as an associated partner in 2010.

The dii plans to generate solar energy and wind energy in the Middle East regions and in North Africa and to develop a future-oriented energy network with Europe.

Range of Services• Thermal power plants• Renewable energies• Energy transmission and distribution• Energy storage• Energy management and energy efficiency

12

ENERGY DIVISION

Energy is the Basis for Every Development.

Revenue and Contract Development In 2011, the Energy Division of the Lahmeyer Group generated sales revenues totalling € 82 million.

This represents a growth of 45 % compared with the previous year (€ 57 million). Lahmeyer International India’s contribution was 28 %, at € 23 million.

The Energy Division recorded an increase in incoming contracts of 6 % to € 62 million in the financial year 2011.

Market Development and Outlook The international consultancy business for infrastructure services in the area of renewable energies and energy transmission and distribution offers

particular opportunities for growth in the countries of Africa, the Near and Middle East as well as Asia.

Power transmission (500 kV) from 1,250 MW hydropower project, Merowe, Sudan

Client: Dams Implementation Unit (DIU), MDEC – Merowe Dam Electricity Company, Ministry of Electricity and Dams, Khartoum

56 % Energy

The Energy Division’s Share of Overall Revenue in 2011

28 % of which contributed by Lahmeyer International India 2009 2010 2011

4659 62

4957

82

Revenue and Contract Development for the Energy Division

Incoming contracts Revenue (IFRS) in € million

23.3Lahmeyer

India10.4Lahmeyer

India6.1

Lahmeyer India

2009 2010 2011

4659 62

4957

82

Revenue and Contract Development for the Energy Division

Incoming contracts Revenue (IFRS) in € million

23.3Lahmeyer

India10.4Lahmeyer

India6.1

Lahmeyer India

13

Energy is the Basis for Every Development. Challenging Projects

50 MW wind park, Jhimpir, Pakistan

Client: Fauji Fertilizer Company (FFC), Rawalpindi

Qurayyah ll Combined Cycle Power Plant in Saudi ArabiaLahmeyer International has been providing services, on behalf of the Saudi Electricity Company, for the Qurayyah lI 3,800 MW combined cycle power plant, situated about 100 km to the south of Damman. In collaboration with the local partner SaudConsult, we are responsible for project manage-ment, construction supervision and subsequent commissioning monitoring.

The new combined cycle power plant is being constructed to meet future energy requirements and to support energy generation potential in the Eastern Province of Saudi Arabia.

Development of CO2 Emission Factors for Eastern EuropeAs far back as 2009, Lahmeyer International was commissioned by the European Bank for Reconstruction and Development (EBRD) to calculate the future CO2 emission factors for electric-ity supply systems in Russia and the Ukraine for the period between 2009 and 2020. The findings of the study and the underlying simulation models have been validated by the certifier TÜV Süd.

In 2011, this validated methodology was applied in a new project financed by the EBRD: Lahmeyer International

successfully determined the develop-ment of CO2 emission factors for Kazakhstan, Serbia and Bosnia and Herzegovina over the next 10 years.Project developers can make use of the factors to determine precise emissions reductions.

Al-Ain Solar Park in the United Arab EmiratesIn Al-Ain, Abu Dhabi, a master plan study and an overall concept was required for a 300 MW solar park. Lahmeyer initiated phase I in 2011. This included the preparation of tender designs and documents, assistance with contract award, and contract administration as well as a technical and economic analysis for the 100 MW photovoltaic plant Nour One.

Operational Management of Transmission System in SudanIn 2003, Lahmeyer International was commissioned to carry out the complete planning, project manage-ment and quality assurance tasks up to expiry of the contractual warranty period for one of Africa’s biggest hydroelectric power plants (1,250 MW).

The Energy Division undertook the construction and the extension of the power transmission lines (500 kV) and the switchgear.

Lahmeyer electrical engineers have also been deployed for operation and maintenance monitoring since plant commissioning in 2009.

New Wind Park in PakistanThe Fauji Fertilizer Company is constructing a 50 MW wind park, 80 km north of Karachi. Lahmeyer International has been guiding the project since the beginning of the planning stage in 2007. After comple-tion, Lahmeyer will act in an advisory capacity to the client and monitor operational management. The project is considered to be a milestone both with regard to policy as well as to ecology, as it is the first wind park of its size that the Pakistan government has supported by means of statutory provisions.

Thermal Storage for Solar Tower Power Plant in SpainThe project for Torresol Energy Investments comprised the installa-tion of thermal storage using molten salt for the Gemasolar 19 MW solar tower power plant. In 2011, after successful completion of the technical due diligence and construction supervision, Lahmeyer was appointed as Lender’s Engineer to provide supervision during the operational phase.

14

Lagobianco pumped storage plant, Graubünden, Switzerland

Client: Repower AG, Poschiavo

WATER RESOURCES DIVISION

Force of Nature and Resource: Water is Life.Water was considered in early philoso-phies as an element and represents life, growth and development. The many forms in which this resource exists and its diverse potential uses set high standards for its responsible utilisation.

Our Water Resources Division provides complete services for hydropower and multi-purpose projects, hydraulic engineering, irrigation, water manage-ment, dam construction and flood protection. We contribute to securing reliable drinking water supplies as well as treatment and safe disposal of waste water.

A broad range of services is provided by our specialists at Lahmeyer International and with our subsidiaries, Hydroprojekt Ingenieurgesellschaft in Germany, Lahmeyer Agua y Energia in Peru and the Hidro Dizayn Group in Turkey.

Our engineering services provide the key to the environmentally sustainable use of water resources.

Client services range from concept formulation through to project implementation and beyond. Our strengths lie in preparing studies and plans for investment decisions as well

as in providing numerous services during project construction and commissioning phases.

HydropowerHydropower is one of our core competencies. The complete range of services we deliver for complex hydroelectric power plants and systems is based on decades of experience, incorporating the know-how of all the required specialist disciplines, including hydrology, geotechnical engineering, civil engineering and mechanical and electrical engineering.

Scope of Services • Hydroelectric Power Plants• Dams• Hydraulic Engineering• Water & Land Resources Development• Water Supply & Waste Water Management• Geology & Geomatics

15

Dam with 1,250 MW hydroelectric power station (10 x 125 MW), Merowe, Sudan

Client: Dams Implementation Unit (DIU), MDEC - Merowe Dam Electricity Company, Ministry of Electricity and Dams, Khartoum

Water and Land Resources Development and GeomaticsThe world population continues to grow, while available water resources remain constant. We plan the effective use of precious water resources. Rural development policies, in particular, require a holistic and socio-environmentally sustainable perspective. Many multi-purpose projects simultaneously bring advantages for flood protection, irrigation, hydropower, water supply and river navigation.

We prepare integrated resource use plans for entire river catchments and design corresponding infrastructure projects. Modern geographic informa-tion systems and remote sensing methods provide reliable databases for our multidisciplinary work.

Water Supply and Waste Water ManagementAccess to clean drinking water is a basic human right. We plan the storage, treatment, conveyance and distribution of drinking water.

We also provide services covering the collection, purification and safe disposal of waste water and its environmentally appropriate reuse.

Sustainable and EfficientOur experts’ know-how is based on decades of experience. Combining technical, ecological, socio-economic, institutional and financial/economic objectives is the prerequisite for developing optimum solutions for the sustainable use of natural resources.

Klingenberg Dam, Germany

Client: The Dams Administration of the

Free State of Saxony, Pirna

© Dirk Laubner on behalf of

Hydroprojekt Ingenieurgesellschaft

16

WATER RESOURCES DIVISION

Revenue and Contracts In 2011, the Water Resources Division achieved sales revenues totalling € 58 million. This represents growth of 23 % compared with the previous year (€ 45 million).

In financial year 2011, the Water Resources Division won consultancy contracts with a value of € 68 million. Compared with contracts of € 49 million won in 2010, this is equivalent to an increase of almost 30 %.

This is attributable, in particular, to large-scale projects in Switzerland, Sudan, Turkey and Egypt.

Yedigöze 317 MW dam and hydroelectric power plant, Adana, Turkey

Client: Yedigöze Elektrik Üretim ve Ticaret A. S. (Sanko Energy Group Company), Adana

Harnessing Water.The integration of the Turkish company Hidro Dizayn into the Lahmeyer Group has made a decisive contribution to the reported growth.

New Group Company Hidro Dizayn With around 40 hydropower projects and employing some 280 permanent staff in Turkey and neighbouring countries, the Hidro Dizayn Group’s first contribution to the revenue of the Division had a value of € 17 million.

Market Development / Outlook for 2012 The international consultancy business for infrastructure services in the hydro-power and irrigation sectors offers

39 % Water

Water Resources Division’s Share of Overall Revenue in 2011

2009 2010 2011

48 49

68

42 4558

Revenue and Contract Development for the Water Resources Division

Incoming contracts Revenue (IFRS) in € million

particularly attractive opportunities in the countries of Africa, the Near and Middle East and Asia, where high growth rates in population, industry, commerce and trade are expected.

Furthermore, we expect to see increasing demand for engineering services for the construction of new pumped storage power plants, in an energy market with increasing requirements for evening out fluctuations in local generation.

The high value of outstanding contract work in the Water Resources Division provides a good basis for continued capacity utilisation during 2012.

17

Success Knows No Limits.Merowe Dam in the Sudan The dam and associated 1,250 MW hydroelectric power plant (10 x 125 MW) are situated on the Nile, about 350 km north of the Sudanese capital, Khartoum. It is used for electricity generation, irrigation of arable land and flood protection.

After having successfully completed the contract administration and construction supervision and installa-tion phase between 2003 and 2009, Lahmeyer is currently advising the Dams Implementation Unit (DIU), the Sudanese development authority, on all aspects of operational management and maintenance of the overall plant, including the training of local engineers.

Lagobianco Pumped Storage Plant in SwitzerlandThe Lagobianco project is located in Poschiavo Valley in the South East of Switzerland. With a capacity of around 1,050 MW, the planned plant will make a major contribution to the security of Switzerland’s electricity supplies.

Since 2011 Lahmeyer International has been responsible for project manage-

ment, tendering and assisting the client with contract award procedures.

In the further development of the project, Lahmeyer will also prepare detailed designs, and undertake contract administration, construction supervision and monitoring during commissioning.

Klingenberg Dam in Germany The Klingenberg Dam, which was first commissioned in 1914, is used, in particular, to provide raw water, as well as for flood protection and hydropower utilization.

As far back as 2003, the Dams Administration of the Free State of Saxony commissioned Hydroprojekt Ingenieurgesellschaft (HPI) to modern-ise the auxiliary dam, including the construction of a replacement inflow gauging station. In 2011, HPI was responsible for supervision of construction.

Kenana & Rahad II Irrigation Projects in SudanThe irrigation projects located on both banks of the Blue Nile in Sudan are

planned to provide over 1 million hectares of irrigation. Their focus is on improv-ing conditions for local smallholder and largeholder farmers and to attract commercial agricultural investors.

At the beginning of the project, Lahmeyer performed studies on sustain- able water use and land development. Services provided also included agricultural and geotechnical soil surveys, environmental and social impact assessments and management plans and the preparation of tender designs and documents.

Mapping of Groundwater Resources in UgandaGroundwater plays a significant role in both urban and rural water supply. It currently contributes around 65 % of overall drinking water requirements. The intention is to increase this coverage to around 95 % by 2015.

The project, funded by the European Commission, aims to collect and analyse existing groundwater data and to process and document these data using a Geographic Information System (GIS).

Kenana & Rahad II irrigation projects, Sudan

Client: Dams Implementation Unit (DIU), Khartoum

18

BUILDING & TRANSPORTATION DIVISION

Continuous growth of metropolitan areas, which is uncontrolled in many countries, confronts town planners with major challenges. Planning for the preservation or creation of mobility has to face these challenges.

Complex building projects require the solution of multi-layered, strategic and operational problems during the project period. In addition to routine tasks, issues involving specialised skills and knowledge must be addressed in the course of project execution. Technical, financial and legal know-

Mobility and Urbanisation: Projects for Modern Life.

how is frequently of decisive impor-tance. In these situations, a strong partner is of crucial importance.

Solutions to Demanding Tasks The organization and implementation of large investments in the building construction sector are demanding tasks, the solutions to which we, as advisers, project developers or project managers, make an important contribution.

As subsidiaries of the Building & Transportation Division, Lahmeyer Berlin, Lahmeyer Rhein-Main and

Lahmeyer München combine project management, planning and consul-tancy. Their projects include the areas of transportation, traffic infrastructure in urban and regional sectors, as well as building construction and industrial engineering.

Extensive Range of Services Our range of services includes all project phases, from conception and development to design, tendering, contract award and execution through to commissioning, with different emphases in the individual companies.

5 % Building & Transportation

Building & Transportation Division’s Share of Overall Revenue in 2011

Lahmeyer Berlin:

Königstadt-Carrée

on the Alexander-

platz, Berlin,

Germany

Client: bauart

Beteiligungs GmbH

& Co. Mollstraße

KG, Berlin

1.61.71.4 1.4

2.8

1.4

3.43.5

2.6

Revenue Development of the Lahmeyer Companies in Germany

in € million

Berlin München Rhein-Main

2009 2010 2011

19

Lahmeyer München Ingenieurgesellschaft:

Project 2nd Munich S-Bahn branch line, here Laim S-Bahn station before the reconstruction

Client: DB Projektbau, Stadtwerke München, Munich Building Department

Lahmeyer Rhein-Main:

Owner’s engineering services for the Nord Stream pipeline through the Baltic Sea

Client: Nord Stream AG, Zug

© Thomas Eugster for Nord Stream

Flexible Teams Teams specially tailored to the require-ments of the project support clients in the implementation of their projects right through to project completion, ensuring that objectives are fulfilled and quality requirements are met.

Our employees include experienced engineers, civil and industrial engineers and architects. In addition, we draw on resources from reliable cooperation networks with consultancy offices in the areas of IT, law, economics and facility management while also working with leading universities.

Ecological Responsibility Modern project management goes hand in hand with sustainable construction planning, so-called life cycle engineering. Sustainable building construction will make a significant contribution to the achievement of climate objectives.

As a pioneer in the successful applica-tion of the American LEED system in Germany, Lahmeyer Rhein-Main has founded, together with specialists from the Technical University of Darmstadt, a joint company – LCEE Life Cycle Engineering Experts GmbH – to combine their respective areas of expertise in consultancy for sustainable construction. Economically and ecologically reliable planning, construction and facility management are ensured through certification meeting national and international quality standards.

Range of Services Construction and project management for:• Building construction projects• Transport infrastructure projects• Industrial engineering projects

Business Performance in 2011In the Building & Transportation Division, the three German subsidiaries achieved positive results during 2011. Revenues for the year of € 7.4 million

(previous year: € 8.4 million) were primarily generated through contracts within Germany.

20

LAHMEYER INTERNATIONAL INDIA

Very few countries in the world are experiencing economic and industrial growth as intensively as India. Lahmeyer management already identified the great potential of the Indian market in 1993 and founded the subsidiary Lahmeyer International India together with an Indian partner.

Lahmeyer International India is recog- nized and valued as one of India’s leading engineering companies in the fields of energy, hydropower and transportation. Its principal place of business is in Gurgaon in the federal state of Haryana, near the Indian capital city, New Delhi. The company also operates from a branch office in the metropolis of Kolkata in the state of West Bengal.

H.P. Clean Energy Project - Kashang, Himachal Pradesh, India

Client: Himachal Pradesh Power Corporation Ltd., Shimla

Successful. Competent. Versatile.

High Customer Satisfaction LevelsDue to its long-standing experience, Lahmeyer International India has detailed knowledge of local conditions such as market dynamics, legislation, directives and institutional culture.

The list of satisfied clients is long: Government authorities and utilities, international and national financing institutions as well as private investors and project developers rely on the outstanding expertise of the com-pany’s employees.

Together with Lahmeyer International, Lahmeyer International India also successfully implements projects outside India, particularly in Central Asia.

Energy, Water and Infrastructure Lahmeyer International India offers a wide range of technical, financial, contractual and economics consul-tancy services for all phases of energy, hydropower and infrastructure projects.

In addition to the traditional sectors comprising conventional energy generation and power transmission and distribution, the company also provides services in the planning and development of new technologies in the field of renewable energies.

The mix of international expertise and local perspectives enables Lahmeyer International India to provide expert

21

Project management for the 765 kV electricity transmission project

Client: Maharashtra Eastern Grid Power Transmission Company, Ahmedabad

engineering services for the environ-mentally friendly use of hydropower and the development of local water resources and water supply projects.

Since its founding, Lahmeyer International India has achieved outstanding results in all its areas of activity. These include services across all project phases, from the pre-invest-ment phase to the implementation phase, through to commissioning and beyond.

The range of services provided includes detailed feasibility studies, project management, master plans, preparation of tender designs and documentation, and assistance to clients for contract awards, as well as construction supervision for national hydropower projects with capacities between 50 and 1,450 MW.

In the transportation sector, projects include inner city and regional transport systems as well as airports.

Business Performance in 2011 The Lahmeyer subsidiary has now successfully positioned itself in the Indian market for almost two decades.

2009 2010 2011

6.110.4

23.3

Revenue Development of Lahmeyer International India

Revenue (IFRS) in € million

16 % Lahmeyer International India

Lahmeyer International India’s Share of Overall Revenue in 2011

Revenue has experienced continual growth over the past few years. In 2011, it more than doubled in comparison with the previous year, rising from € 10.4 million to € 23.3 million. Since 2009, the company has achieved growth in revenues of some 280 %.

This enormous growth is primarily due to a large-scale electricity transmission project. In 2010, Lahmeyer International India took over the management of the 765 kV electricity transmission project for the Maharashtra Eastern Grid

Power Transmission Company. Since 2010, the Company has delivered a range of services for this project, which provides electricity distribution and transmission via high-voltage networks in Maharashtra State.

765 kV power transmission project

1.0

10.9

22

The values of the Lahmeyer Group reflect explicit ethical conduct on the part of each employee and hence of the Company as a whole. The Lahmeyer values were collaboratively defined by our employees during 2011. Our values are both a statement of how we perceive ourselves, and simultaneously a set of behavioural guidelines.

QualityQuality has pride of place for us. We bring our projects to a successful conclusion in a profes- sional manner and with a high level of competence, ensuring high value creation in the interests of our clients. This is borne out by the long-standing experience and comprehensive capabilities of our employees, whose know-how is being continuously extended.

IntegrityWe are honest and open in our communications with one another. Our aspiration is always to act in accordance with our values, so earning

LAHMEYER GROUP

Our Values set the Standards. Quality. Integrity. Fairness. Innovation.

the trust of our clients, partners and colleagues. Words must match deeds so that our clients and partners can rely on us at all times.

FairnessFairness in our relationships with clients, partners, colleagues and employees is of key importance. Asa consultancy company, we build on these long-term relationships, which combine responsibility with respect. As reliable team players we believe

Lahmeyer International has already had a

quality management system (QMS) since

1994. As of 2002, this system was transformed

in accordance with DIN EN 150 9001:2000,

into a process-oriented QMS and recertified

in November 2009 in accordance with the

revised DIN EN ISO 9001:2008.

that we also carry responsibility towards society and the environment and must act in a social and sustain-able manner.

Respect for and sensitivity to other cultures are self-evident in our international business activities. Only in this way can we and our partners successfully realise our full potential and fulfil the requirements of our global clients.

InnovationOur goal is to extend our position and to continue our strategy of client-oriented growth in a challenging environment of continuous change. Opportunities are grasped through close attention to market conditions and by striving to fulfil client expecta-tions to a high standard. Technical challenges are met through the appropriate combination of proven traditional and new technologies. The innovation demonstrated in our solutions is the result of approaching every project as a unique opportunity.

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sen

23

Keeping in Touch with Clients Worldwide.

German CompaniesLahmeyer International GmbHFriedberger Straße 17361118 Bad VilbelTel.: +49 6101 55-0Fax: +49 6101 55-2222info@lahmeyer.dewww.lahmeyer.de

Lahmeyer Rhein-Main GmbHFriedberger Straße 17361118 Bad VilbelTel.: +49 6101 55-2200Fax: +49 6101 55-1940info@lahmeyer-rhein-main.dewww.lahmeyer-rhein-main.de

Lahmeyer GKW Consult GmbHAugustaanlage 6768165 MannheimTel.: +49 621 41077-00Fax: +49 621 41077-302info.gkw@de.lahmeyer.com

Hydroprojekt Ingenieurgesellschaft mbHRießnerstraße 1899427 WeimarTel.: +49 3643 746-400Fax: +49 3643 746-405hydroprojekt@hydroprojekt.dewww.hydroprojekt.de

Lahmeyer Berlin GmbHSachsendamm 310829 BerlinTel.: +49 30 787913-0Fax: +49 30 7884811webmaster@lahmeyer-Berlin.dewww.lahmeyer-berlin.de

Lahmeyer München Ingenieurgesellschaft mbHAkademiestraße 780799 MünchenTel.: +49 89 381607-0Fax: +49 89 381607-50info@li-muenchen.dewww.li-muenchen.de

International CompaniesLahmeyer International (India) Pvt. Ltd.INTEC HOUSE, Plot No. 3737 Institutional Area, Sector-44Gurgaon-122 002, IndiaTel.: +91 124 4698500Fax: +91 124 4698585info@liindia.comwww.liindia.com

Hidro Dizayn Mühendislik Müsavirlik Insaat ve Ticaret A.S.Ehlibeyt Mah. CeyhunAtıf Kansu Cad., No:91, BalgatAnkara, TurkeyTel.: +90 312 47341-00Fax: +90 312 47341-90info@hidrodizayn.comhttp://www.hidrodizayn.com

Lahmeyer Agua y Energía S.A.Edificio Standard Chartered-4to. PisoAv. Canaval Moreira, 452San Isidro, Lima, PerúTel.: +51 1 222-2286Fax: +51 1 221-3078liperu@liperu.comhttp://www.liperu.com

Consulting Engineers Lahmeyer Nigeria Ltd.Kumasi Crescent, Plot 478Wuse II, F.C.T. Abuja, NigeriaTel.: +234 8 050250799Fax: +234 9 4139161bernhard.menzel@lahmeyer.de

Hidrolin Hidrodizayn & Linerji EnerjiMühendislik ve Müsavirlik Ltd. Sti.Vazha Pshavela Avenue, Suite 1590189 Tbilisi, GeorgiaTel.: +995 5 57612978

OOO Lahmeyer International RUS1st Yamskogo polya Streethouse 9/13, office 503125124 Moscow, RussiaTel.: +7 495 9264367info@lirussia.ruwww.lirussia.ru

Lahmeyer IDP Consult Inc.Suite 1610 Tektite East TowerPSE Centre, Ortigas Center, Pasig City1605 Metro Manila, PhilippinesTel.: +63 2 687-5876Fax: +63 2 637-2170evelyn.orda@ph.lahmeyer.com

Bad Vilbel (Frankfurt)Weimar

Berlin

Mannheim

Munich

Lahmeyer Group offices

Lima, Peru

Abuja, Nigeria

Manila, Philippines

Gurgaon, India

Moscow, Russia

Tiflis, GeorgiaAnkara, Turkey