2012

2012 Annual Review of the Lahmeyer Group

Contents

Publication details

Publisher: Lahmeyer Holding GmbH, Bad Vilbel, GermanyEditing: Sabine Wulf, Lahmeyer International GmbHDesign and Lithography: magenta GmbH & Co. KG, Mannheim, Germany Printing: Druckerei Ottweiler und Verlag GmbH, Ottweiler, Germany Picture Photo Credits: Lahmeyer Holding, unless otherwise indicated

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

© Lahmeyer Holding 2013

Managing Directors’ Letter 3

The Lahmeyer Group 4

2012 Lahmeyer Group Management Report 6

Teamwork – Across All Borders 8

Business Philosophy 9

Energy Division 10

Hydropower & Water Resources Division 14

Water Supply & Sanitation Division 18

Building & Transportation Division 20

Lahmeyer International India 22

Contact Details Lahmeyer Group Companies 24

Dear Readers,

“A rich past imposes obligations: it obliges us to strive for an equally rich future”. We should like to preface our Annual Review 2012 with this quote from Konrad Adenauer. This year, the Annual Review once again provides you with an opportunity to look back – at what we have achieved together, at successful projects and at developments that have been launched. However, as a forward-looking company, our focus is as much on the future as it is on the past, so that we are now pleased to be able to present our new vision for the future, which we jointly developed in 2012:

“Our vision is to be a leading company of independent consulting Engineers, winning and retaining the trust of global clients by providing engineering excellence in the fields of Conventional and Renewable Energy, Hydropower and Water Resources Development, Building and Transportation. We achieve continual improvement in delivering services to the highest technical, ethical and environmentally sustainable standards”.

This new vision will guide our thoughts, feelings and actions in the context of a long-term strategy. It provides our company with an identity and gives our work value for people all around the world while preserving an unspoiled environment.

From a client perspective, our vision is a clear indication of our commitment to corporate values, to comprehensive compliance and to the responsibilities entrusted to us. The clear profile of the Lahmeyer Group provides a well-defined orientation in a complex market.

Past successes form a solid foundation on which to build for providing current services and for shaping our vision of a successful future – for our employees, for our company and for our business partners.

We hope that the 2012 Annual Review provides you with interesting reading.

Markus AuerCommercial Managing Director and CFO

Dr. Bernd KordesPresident and CEO

4

As a leading international engineering company, Lahmeyer offers a broad range of planning and consultancy services. Our services relate primarily to complex infrastructure projects in the sectors Energy, Hydropower and Water Resources, Water Supply & Sanitation, and Building & Trans-portation.

The Lahmeyer name stands for experience, quality and international competence, as evidenced in the developing and emerging economies of Africa, Asia and South America, as well as in Germany and in Europe generally. Project concepts are successfully realised through the application of German and internatio-nal standards.

We attach major importance to our independence from construction companies, suppliers and manufactur-ers. We see this neutrality as a pre-condition for finding optimal solutions in all our projects.

LAHMEYER GROUP

Engineering Consultancy Internationally Successful.

Pioneers from the outsetIn 1890, the German electrical engineer Wilhelm Lahmeyer established the company W. Lahmeyer & Co. in Frank-furt am Main. He belonged to a group of courageous visionaries who, through practical innovations, realised the successful industrialisation of the then recent discovery of usable electric power.

Since that time Lahmeyer engineers have implemented a myriad of successful projects driven by innovative technologies, in particular in the use of hydropower and other renewable energies, for power plant construction and in the transmission and distribu-tion of electrical energy.

On course for growthWe achieve continuous organic growth by developing our strengths and core competencies. Growth is also achieved through M & A activities, exemplified by the acquisition of Mannheim-based Pöyry Environment GmbH, now registered under the name Lahmeyer GKW Consult.

This acquisition has enabled Lahmeyer to take significant strides towards achieving the strategic goal of strengthening our capacity in the future market for water-related services. As a result, we have now expanded our existing global expertise in the construction of major water storages and long-distance water conveyance systems through the inclusion of drinking water supply and sewage treatment, and are now able to offer an even broader range of services.

Furthermore, the Lahmeyer Group has acquired a majority shareholding in the company Pöyry IDP Consult in the Philippines and has thereby expanded its consulting expertise in the water, energy and environment sector in the South-East Asian market. Lahmeyer IDP Consult is one of the leading management consultancy firms in the Philippines, with a presence in more than 30 countries and over 150 projects relating to water supply, sewage treatment, energy and infrastructure, environmental protection, community

Subsidiaries

Units of Lahmeyer International GmbH

Lahmeyer Group Organisation

Personnel LI Business UnitPower Plants & Electrical Grids

LI Business UnitHydropower & Water

Resources

Lahmeyer Rhein-Main GmbH, Bad Vilbel,

Germany

Energy

Controlling andAccounting Lahmeyer Berlin GmbH

Berlin, Germany

Hydropower & Water Resources

TreasuryLahmeyer München

Ingenieurgesellschaft mbHMunich, Germany

Tax

Information Technology

Legal

Internal Audit

Marketing & Business Development Coordination

Lahmeyer International Qatar L.L.C. Doha, Qatar

OOO Lahmeyer International Rus Moscow, Russia

Consulting Engineers Lahmeyer Nigeria Ltd.

Abuja, Nigeria

Lahmeyer Hydroprojekt GmbH Weimar,

Germany

Hidro Dizayn Group Ankara, Turkey

Lahmeyer Agua y Energía Lima, Peru

Staff Units:Compliance · Quality Management, Health and Safety · Data Protection

Corporate Departments

Hydropower & WaterResources Division

Building & Transpor-tation Division

Lahmeyer International (India) Pvt. Ltd.Energy Division

Board of Managing Directors

Transportation

Internal Services

Lahmeyer GKW Consult GmbH, Mannheim,

Germany

Water Supply &Sanitation Division

Lahmeyer IDP Consult Inc. Manila,Phillippines

LI Business UnitRenewables &

Economics

5

planning and financial management. The clients of Lahmeyer IDP Consult include the Asian Development Bank (ADB), the World Bank (WB) and other international financing and develop-ment institutions.

A Solid OrganisationLahmeyer International was founded in 1966 from the engineering depart-ment of the former Lahmeyer AG. Today, our group consists of 12 consolidated national and internatio-nal group companies.

In response to the requirements of our clients and the processes of project development, our organisation was reorganised at the start of 2013 into four divisions: Energy, Hydropower & Water Resources, Water Supply & Sanitation, and Building & Transporta-tion. We divided the Energy Division into two business units: Power Plants & Electrical Grids and Renewables & Economics.

Our subsidiary Lahmeyer International India is a separate regional division, with competencies in the fields of energy, hydropower and transpor-

tation. Together with the headquarters in Bad Vibel, which assumes a managing and service function for the Group, Lahmeyer’s workforce comprises some 1,560 employees.

An International LeaderOur project experience extends to 165 countries around the world. In the ranking of engineering companies with global operations, determined annually by the professional journal Engineering News Record (ENR), the Lahmeyer Group occupies one of the top places in respect of the key energy sectors, such as hydropower, transmis-sion and distribution, and renewable wind and solar energy.

Client ResponsivenessOur global presence means that we are close to our clients. Project offices in 40 countries allow us to provide out-standing local support. These services are provided in close cooperation with our local partners.

Our clients include governments, public authorities and energy utilities, industrial corporations, project developers, investors, banks and

international financing institutions. We support them during all project phases including project development, construction and commissioning through to the operational phase. Besides economic viability, high priority is given to environmental and social sustainability and to the conservation of resources.

Projects in 165 countries, 12 Lahmeyer affiliated consolidated companies, Company sites and subsidiaries in 21 countries, Representatives in 15 countries

Lahmeyer ProjectLahmeyer CompanyLocal OfficePrincipal Business Areas

6

LAHMEYER GROUP

Management Report

The Lahmeyer Group operates in an internationally growing market. This means that there is a continuing high demand for the services offered by Lahmeyer.

There are major opportunities for the group in large-scale infrastructure projects for energy generation from fossil fuels and from hydropower, in energy transmission and distribution and in drinking water supply. In view of the long lead times associated with such projects, they can usually be implemented independent of momen-tary economic conditions.

The growing market for engineering services brings Lahmeyer into contact with a wide range of client groups and project types, so ensuring a reliable degree of risk diversification.

Revenue and Revenue DevelopmentIn 2012, the Lahmeyer Group achieved sales revenues of u 156 million. This represents growth of 11 % compared with the previous year (u 140 million, adjusted). The Energy Division (including Lahmeyer International India and Lahmeyer IDP Consult) accounted for u 71 million or 45 % of turnover. The Water Resources Division was respon-sible for 50 % of turnover amounting to

u 78 million (including Lahmeyer GKW Consult). The Building & Transpor-tation Division, whose main operations are in Germany, recorded revenues of approx. u 8 million, representing 5 % of turnover.

Sales Growth of Divisions Since 2009, the Energy Division has achieved a significant growth of 46 %.This is also attributable to the contri-bution of revenue from Lahmeyer International India. At u 23.5 million, our Indian subsidiary more than doubled its revenue since 2010, mainly as a result of a large project with a very high proportion of subcontracted services. Revenue of u 1 million generated by the new company Lahmeyer IDP Consult has also accrued to the Energy Division.

The Water Resources Division increa-sed its revenues by 83 % in the same period. The company Hidro Dizayn, a member of the Lahmeyer Group since 2011, contributed u 7 million to the revenue growth of the Water Resources Division. The new group company Lahmeyer GKW Consult also contributed u 7 million to the growth of the Water Resources Division’s revenue.

Incoming Orders and ContractDevelopmentThe Group achieved incoming orders of u 168 million in the financial year 2012, an increase of 23 % over the previous year (u 137 million). The Water Resources Division, closely followed by the Energy Division, accounted for more than half the volume of incoming orders. The value of the Lahmeyer Group’s out-standing contract work stood at u 159 million by 31 December 2012, 26 % above that of the previous year.

EmployeesWith some 1,560 employees, the group also recorded growth in staff numbers in 2012. About 80 new employees joined the group through the acquisition of Lahmeyer GKW Consult and Lahmeyer IDP Consult.

Our employees are the key to our success. The new divisional structure facilitates collaboration among specialists from the various group companies. This enables us to realise synergies for joint project work in the best interests of our clients.

Revenue (IFRS); to 2008 HGB Incoming contracts in u million

Incoming Contracts and Revenue Development of the Lahmeyer Group

10197

168156

2006 2007 2008 2009 2010 2011* 2012

70

62

7

71

78

8

56

45

8

49

42

8

Revenue Development per Division

2010 2011* 20122009

* Adjusted for effects from the modification of accounting methods

Build. & Trans. Water Res. Energy in u million

7

Quality ManagementThe Quality Management System (QMS), introduced by Lahmeyer in 1994, was converted in 2002 to a process-oriented QMS complying with DIN EN 9001:2000. The system was certified in accordance with the revised DIN EN ISO 9001:2008 in November 2009 and successfully re-certified in November 2012. In their certification audit, the validators of TÜV Hessen described Lahmeyer as an efficient company that maintains an organisation with clearly structured processes.

Market DevelopmentOpportunities for growth exist in particular in the international consul-tancy market for infrastructure projects in the areas of energy, hydropower and irrigation in Africa, the Middle East and Asia.

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

With government policy favouring transition towards renewable energy sources, the resulting impact on prices at the Leipzig electricity exchange has

led to an investment freeze on the German power plant market, which has also had a knock-on effect on other Central European countries. The energy sector must await the outcome of the German parliamentary elections in autumn 2013 before new stimuli can be provided. As of 2014 we expect a rapid expansion in the demand for much needed pumped storage power plants, which are designed to even out fluctuations between energy produc-tion and demand. In addition, it will be necessary to press ahead with the development of essential transmission and distribution networks.

Outlook for 2013The high value of outstanding contract work in both the Energy and the Water Resources Divisions provides a sound basis for reliable workload in the coming years. In addition to organic growth, the

group companies newly acquired in 2011 and 2013 will help strengthen our business for the purpose of maintai-ning the Lahmeyer Group as one of the world’s largest engineering companies in the energy and water sectors. It is decisive for the development of our Group that we recruit qualified staff from the market despite the current shortage of skilled professionals. We have been able to achieve this to date and it will remain a high priority.

Major opportunities for the Group are offered by the demand for energy, which continues to grow worldwide, with wind energy, photovoltaic and solar thermal energy and biomass being of particular importance as a result of national and international promotion of renewable energies. The newly formed Renewable Energies & Economics Division will enable our experienced specialists to be even more responsive to these project opportunities over the coming years.

In the coming two financial years the Group expects moderate revenue growth and good opportunities for raising the return on sales despite increasing pricing pressures. In addition to organic growth, acquisitions will continue to contribute to growth in revenue over the coming years.

Lahmeyer Group Employees

2009

71 71 63

2010 2011 2012

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

1001

609

25091

244

694

1092

1503

767575

9863 64 80

616801

1561

8

Teamwork – Across all Borders

LAHMEYER GROUP

It is no secret that Lahmeyer’s success has been created by our staff. Some 1,560 employees from 40 nations are currently employed within the 12 companies of the Lahmeyer Group.

In the new organisation, their know-ledge, experience and commitment are grouped into technical divisions. Inter- and intra-group cooperation among our experts ensures that the synergies of the Lahmeyer Group are maximised for the benefit of our clients.

Experts in All Areas Engineers, scientists and economic and financial specialists from more than 30 disciplines take responsibility for satisfying the varied demands of our projects worldwide.

Many of them have experience not only in their own technical fields, but have also developed intercultural skills. Our teams are therefore able to adapt quickly to the challenges of new environments.

Continual ResponsibilityEvery employee, from those at the start of their career to the experienced professional, should feel comfortable in our working environment and be offered the appropriate 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.

Sharing ExperienceTrainee engineers have recourse to the knowledge of their older colleagues, while the experienced engineers, conversely, keep up with current developments. With each individual project requiring interdisciplinary approaches, teamwork and interde-partmental collaboration are integral components of our everyday approach to our work.

“I enjoy working with Lahmeyer, because I can contribute to interesting projects all over the world. It allows me to become acquainted with many different view-points, both professional and cultural. Together with top-calibre colleagues from all over the world, we strive to find solutions, work efficiently and in an unbureaucratic manner.”

Bernhard Stabel, Lahmeyer InternationalHead of Geology, Geotechnics and Dams Department

“I find it truly fascinating to apply successful methods to the field of hydropower and, in doing so, collaborate with people who have a store of rich and varied experience. The interaction of various stakeholders such as architects, investors and lenders ensures a high level of personal satisfaction.”

Dr. A. K. Jha, Lahmeyer International IndiaHead of Hydropower and Water Resources Division

“For me, the transfer of knowledge between innovative technologies and a complex contractual and intercultural environment throughout all project phases presents a multifaceted challenge which I enjoy tackling on a daily basis as a member of a fully committed team.”

Bungo Ezawa, Lahmeyer InternationalHead of Energy Department Turkeyand Project Manager for Wind EnergyMorocco

9

Our Values. Our Business Principles.

Lahmeyer ValuesThe values of the Lahmeyer Group represent the conscious, ethical conduct of each employee and, by extension, that of the entire company. Our employees have collectively defined Lahmeyer’s values.

Our values of quality, integrity, fairness and innovation are both a stimulus and a reflection of our identity.

Business EthicsThe ethical foundations of our consul-tancy services are laid down in our business principles. They apply for all our staff and guide our daily work and our conduct. It is important for the successful implementation of our

business ethics that our senior staff act as role models and guide employees in practising these ethical principles. Our Compliance Management System also helps to develop our ethical principles.

ComplianceLahmeyer International has for several years been implementing a Compliance Management System that is continually evaluated. Ongoing information exchange with other companies in Germany and abroad helps ensure a successful outcome of the evaluation process.

In addition, our employees contribute to the success of this process by drawing on their experience and offering suggestions. Continuing refinement of the Compliance Management System is a core component of effective compliance.

“Working for Lahmeyer has enriched my life. Apart from dealing in-depth with complex plant technology, exchanging ideas with our clients’ specialists in different countries provides continuous stimulation.”

Ralf Bucher, Lahmeyer InternationalProject Manager for Electrical Engineering and Control Technology

“After receiving a warm welcome I now feel fully integrated in the Lahmeyer family and I’m not even in my second year. I am really impressed by the vast expertise in Lahmeyer International, the sophisticated know-how and the work ethics.”

Evelyn Orda, Managing DirectorLahmeyer IDP Consult

“I work in interdisciplinary and multinational teams of experts. Our projects include complex socio-techni-cal systems such as irrigation schemes and multi-purpose projects, which present a variety of technical and administrative challenges. Innovative approaches are therefore essential.”

Michael Chegwin, Lahmeyer International Head of Sustainable Water and Land Resources Development

10

ENERGY

Innovations in Energy.

Lahmeyer International: National energy project in Nigeria comprising 400 individual projects nationwide.

Client: Niger Delta Power Holding Company, Abuja

We have mastered this demanding sector for more than 120 years. In fact, Lahmeyer’s success story began in 1890 with the formation of W. Lahmeyer & Co. and the company’s technical innovations for generating energy.

Secure energy supply requires responsible action. Our Energy Division combines all the services needed for energy generation projects for both conventional and renewable sources, as well as for energy transmission and distribution, energy storage and management.

In addition, the new group company Lahmeyer IDP Consult in the Philippi-nes, which implements energy, water and infrastructure projects, forms part of the Lahmeyer Group’s Energy Division. In 2012 Lahmeyer IDP Consult was the second most frequent

recipient in the Philippines of technical consulting contracts from the Asian Development Bank.

Comprehensive services are provided by Lahmeyer International and our subsidiaries in India, Russia, Qatar, Nigeria and the Philippines.

Economic SolutionsGlobal energy demand is constantly growing, but the available resources are limited. Only innovative solutions can overcome this discrepancy. New and renewable energies, as well as continual improvement of energy efficiency, are particularly important here.

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 require-ments as well.

Innovative Approaches for Success The challenges we meet in the Energy Division are varied:from demand analysis and feasibility studies through to detailed design; from supervision of construction to operational support.

Our knowledge of every last detail of a project and its optimal structuring enable us to fulfil the expectations of investors, banks, operators and government agencies alike. Our innovative approaches thereby ensure the success of each individual project.

11

Lahmeyer International: Power plant and seawater desalinisation plant Jebel Ali with 1,200 MWel, United Arab Emirates.

Client: Dubai Electricity & Water Authority, Dubai

Lahmeyer International: Integrated solar gas turbine power station

Hassi R’Mel, Algeria. Client: Ministry of Energy and Mining, Algiers

Future-oriented Initiative dii To take advantage of the opportunities offered in the area of renewable energies, Lahmeyer joined the Desertec Industrial Initiative dii as an associated partner at the beginning of 2011, and prolonged this association in 2013.

The dii plans to generate electricity from solar energy and wind energy in

the Middle East and North Africa and to develop jointly with Europe an advanced energy network. A pilot project in Morocco is already in the early planning stages.

Broad Range of ServicesOur experts plan and supervise the reconstruction, rehabilitation and upgrading of fossil fuel-fired power stations.

We design plants for harnessing renewable energy, from wind and solar power to biomass and geothermal energy. We undertake the planning and optimisation of energy transmis-sion and distribution as well as the diverse electrical engineering tasks in the various power plants. 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.

Range of Services• Thermal power plants• Renewable energies• Energy transmission and

distribution• Energy storage• Energy management and

energy efficiency

12

ENERGY

Energy is the Future.

Revenue and Incoming Orders In 2012, the Lahmeyer Group’s Energy Division achieved revenues of u 71 million. Compared with the previous year (u 70 million, adjusted), this represents growth of about 1 %.Incoming orders in the financial year amounted to u 68 million and were thus 8 % higher than the previous year (u 62 million). Contributions to revenue were, in addition to a large-scale project in India, also made by substan-tial new contracts in Morocco and in the Congo as well as additional contracts in Saudi Arabia, The United Arab Emirates and Qatar.

Market Development and Outlook International activities and national programmes aimed at increasing the efficiency of power plants triggered an upturn in the market.

In addition to our core energy business – consultancy for electricity genera-tion, transmission and distribution facilities – services are also in demand for the rehabilitation of power plants that are often still operating with decades-old structural and plant-spe-cific equipment, process control technology and electro-mechanical components.

There is increasing demand for this expertise, both in emerging markets due to scarcity of capital for new equipment and in the industrialised countries due to increasing energy prices. In view of further expansion of environmentally-friendly energy generation technologies, consultancy requirements are also increasing in many countries of the MENA region, Africa, Asia and Latin America for innovative hybrid power facilities, such as solar thermal power plants with thermal storage or in combination with co-generation plants or wind/PV diesel battery systems.

In order to stabilise energy distribution in the conurbations of the Middle East, Asia and Africa, grids are increasingly being connected to transregional energy transmission networks. One result of this development is increased demand for engineering services for high-efficiency transmission and distribution networks, including substations.

Lahmeyer’s expertise and experience allows us to be active participants in these market developments.

Lahmeyer International: Wind park in the Seychelles – successful construction of eight

wind turbines in December 2012, Mahé. Client: Unison E&C Co. Ltd, Korea

The Energy Division’s Share of Overall Revenuein 2012

46 % Energy

2009 2010 2011* 2012

4659 62

4957

Revenue and Contract Developmentfor the Energy Division

Incoming Orders Revenue (IFRS) in u million

70 68 71

* Adjusted for effects from the modification of accounting methods

14 % of which contributed by Lahmeyer International India

13

Challenging Projects

Lahmeyer International: Development programme for Renewable Energies – first grid-connected PV power plants in Ghana.

Client: Volta River Authority, Accra

National Energy Project in NigeriaUnder contract to the Niger Delta Power Holding Company, Lahmeyer International has from 2005 to 2013 been managing and coordinating, as Owner’s Engineer, a large-scale project for electricity generation, transmission and distribution, and for gas supply. The particular challenge of this project is its overall complexity. The combined project comprises 400 individual projects nationwide, including 11 power plants, 102 electricity transmission lines and substations, 290 electricity distribution projects and 11 pipelines.

Energy Transmission in GeorgiaBy developing and utilising its vast hydropower reserves, Georgia is supporting the global strategy of developing renewable energies for a clean environment. Surplus energy is delivered to neighbouring countries. To meet the challenges of implementing this strategy, the electricity transmis-sion system of the Georgian State Electrosystem will be refined and expanded in this republic in the South Caucasus. The Asian Development Bank financed the loan for the project, which is to be completed by 2014.

Master Plan for Renewable Energies in EgyptLahmeyer International has been awarded a contract by the KfW Development Bank to develop a master plan for the combined utilisation of renewable energies. The study is the first of its kind in Egypt. First, a tailored solution for the development of wind and solar energy will be developed for the country. A detailed strategic plan containing recommended actions and guidelines will prepare the way for the efficient use of existing resources. The project also includes a feasibility study for a large solar thermal power station in Kom Ombo in Upper Egypt.

Hybrid System on Galapagos Ecuador is preparing a globally unique project: over the coming years a hybrid system will fully supply the island of Isabela with renewable energy. This innovative system will ensure the clean and sustainable development of the ecosystem of the island, which has been declared a UNESCO World Heritage Site. Lahmeyer International is the technical consultant to the Ministry of Energy for this project. In addition to project planning, project design,

preparation of tender documents, construction supervision and support for commissioning, consultancy services also include a training programme, in the course of which the recommenda-tions for efficient energy consumption will be provided to the island’s popula-tion. The geological and environmental conditions present a particular challenge, since the environmental standards of a national park and marine reserve have to be respected.

Renewable Energies in Ghana The Volta River Authority is planning the implementation of the develop-ment programme Renewable Energies by constructing wind farms and solar power plants in accordance with CDM (Clean Development Mechanism) principles in Ghana. After analysing the energy sector, Lahmeyer engineers provide advice to clients on the implementation of two wind parks (total 150 MW) and three photovoltaic plants (total 14.4 MW). Tasks include advice on site location, feasibility studies, operational concepts, construc-tion supervision, training and project management, as well as advising on the CDM certification of the projects.

14

HYDROPOWER & WATER RESOURCES

Water is Energy and Life.

Water is the basis of all life. People use water in virtually all aspects of their lives. The many forms in which this resource exists and its diverse potential uses set high standards for its responsible utilisation.

Our specialists from a wide range of disciplines in the Hydropower and Water Resources Division provide consultancy services for hydropower and multi-purpose projects, hydraulic engineering, water management, dam construction and flood protection.

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

New Name Lahmeyer HydroprojektOur group company in Germany, Hydroprojekt Ingenieurgesellschaft, was rebranded in Spring 2013. It is now registered under the name Lahmeyer Hydroprojekt GmbH. The new name reflects the continuation of more than 20 years’ cooperation with the parent company Lahmeyer International.

The group company is a planning and consulting engineering firm with over 100 employees and specialises in the areas of water, environment and infrastructure. Its principal business area is Germany and it also indepen-dently manages international projects in the small hydropower sector.

Across all Project PhasesClient 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. Our engineer-ing services provide the key to the environmentally sustainable use of water resources.

HydropowerWater is replete with energy. Globally, our engineering services are the key to unlocking the sustainable use of hydropower. The services we provide for complex hydropower plants and systems are based on decades of experience. In the process, we provide from a single source the necessary know-how in a wide range of disci-plines that includes hydrology, geotechnical engineering and con-struction technology, as well as mechanical and electrical engineering. Harnessing hydropower is one of our core competences.

Lahmeyer Hydroprojekt: Flood retention basin Schwäbisch Gmünd-Reichenhof, Germany.

Client: Rems Water Association, Schwäbisch Gmünd

15

Water and Land Resources Development The world population continues to grow, while available water resources remain constant. The global water volume is estimated at 1.4 billioncubic kilometres, of which fresh water comprises only 2.6 %. We plan the effective use of these precious resources. In the process, rural development policies in particular require a holistic approach that fulfils social and ecological demands. Many

multi-purpose projects achieve simultaneously the goals of flood protection, irrigation, hydropower, water supply and river navigation.

We prepare integrated resource development plans for entire river basins and design corresponding appropriate infrastructure projects. Modern geographic information systems and remote sensing methods provide reliable databases for the associated multidisciplinary tasks.

Optimum Solutions for the Future Our experts’ know-how is based on decades of experience.Linking technical, ecological, socio-economic, institutional and financial objectives is a precondition for the development of optimal solutions for the sustainable use of natural resour-ces. Working closely with our clients we take a responsible approach to helping shape the future.

Range of Services• Hydroelectric power plants• Dams• Hydraulic Engineering• Water & Land Resources

Development• Geology, Geotechnics &

Geomatics

Hidro Dizayn: Kandil Dam and hydroelectric power plant in the Kahramanmaras region, Turkey.

Client: Enerjisa Enerji Üretim AS, Istanbul

Lahmeyer International: Rehabilitation of the irrigation system Amu Bukhara in Uzbekistan.

Client: Ministry of Agriculture and Water Resources, Tashkent / Asian Development Bank

16

HYDROPOWER & WATER RESOURCES

No Growth without Water.

Lahmeyer

International:

2,000 MW

hydropower plant

Masjed-e-Soleiman,

Iran.

Client: Iran Water

and Power

Resources

Development

Company, Tehran

Revenue and Contract DevelopmentIn 2012, the Hydropower and Water Resources Division achieved sales revenues totalling u 77 million. Compared with contracts won the previous year (u 62 million adjusted), this represents growth of 24 %.

During the financial year 2012, the Water Resources Division was awarded contracts with a value of u 93 million. Compared to contracts worth u 62 million awarded in 2011, this is equivalent to an increase of almost 37 %. This is attributable, in particular, to large-scale projects in Nepal, Angola, Turkey and Egypt.

Our New Group CompanyLahmeyer GKW Consult, which has formed part of our company since April 2012, contributed to this growth with revenues exceeding u 7 million. Lahmeyer GKW Consult has since January 2013 been creating a separate division in the Lahmeyer Group: Water Supply and Sanitation.

Market Development / Outlook for 2013Outstanding growth opportunities for our international consulting business are offered in the areas of hydropower and irrigation in southern African countries with significant hydropower potential, as high growth rates are expected here, not only in terms of population growth but also in

industrial, commercial and manufactu-ring activities. We also see optimal conditions for further growth in Asia, above all in those countries in which we have traditionally been well-positioned.

Political decisions that are first due to take effect in 2014 are necessary if the energy sector is to develop in Europe. Rapid expansion of additional pumped storage plants is expected only after this date.

The high value of outstanding contract work in the Hydropower and Water Resources Division provides a good basis for continued capacity utilisation during 2013.

Water Resources Division’s Share of Overall Revenue in 2012

2009 2010 2011* 2012

48 49

68

93

42 45

6278

Revenue and Contract Developmentfor the Water Resources Division

Incoming Orders Revenue (IFRS) iin u million

* Adjusted for effects from the modification of accounting methods

50 % Water

17

Clients benefit from our Experienced Specialists.

Lahmeyer International:

Gomal Zam multi-purpose dam

in South Waziristan, Pakistan.

Client: Water and Power Authority

WAPDA, Lahore

Hydropower Plant Upper Tamakoshi in NepalThe Nepal Electricity Authority is constructing a hydropower plant with a capacity of 309 MW and an annual output of 1,738 GWh in the foothills of the Himalayas some 100 kilometres north east of Kathmandu. The project also includes a new 40 km long double transmission line and the conversion of an existing 75 km long 132 kV single transmission line into a 220 kV double transmission line. Together with our partner company Norconsult, Lahmeyer International is providing comprehen-sive services, from field investigations and studies for construction planning and scheduling through to construc-tion supervision.

River Basin Development in Malawi and Tanzania Lahmeyer International has been awarded a contract by the govern-ments of Malawi and Tanzania for developing a river basin programme for the Songwe River, the catchment of which extends over an area of 4,200 km2. Services include a review and update of a 2011 feasibility study that investigated potential areas of investment, and development of irriga-tion, hydroelectric generation from

three potential dams, flood prevention, stabilisation of the river’s course, promotion of tourism and formation of a River Basin Authority.

Kandil Dam and Hydropower Plant in TurkeyHidro Dizayn was awarded a contract by the Turkish Enerjisa Enerji Üretim for the project Kandil dam and hydropower plant on the Ceyhan River in the region of Kahramanmaras. Project tasks include services, such as the review of the feasibility study, management of construction plan-ning, performance of geotechnical analyses and evaluation of the results, as well as design of hydraulic struc-tures and construction supervision.

Irrigation System Amu Bukhara inUzbekistanIrrigated agriculture accounts for 90 % of agricultural production and more than 40 % of employment in Uzbekistan. The irrigation system Amu Bukhara was constructed over a period of 20 years beginning in the 1960s. It supplies water for the irrigation of some 315,000 ha and is the main source of drinking water supply for the provinces of Bukhara and Navoi, with a current population of about 1.8 million.

Decreasing pump station performance and increasing sedimentation in the canal system are jeopardising future agricultural output and rural water supply. The Asian Development Bank therefore commissioned Lahmeyer International to undertake a feasibility study and tender designs for corre-sponding rehabilitation works.

Modernisation of the Hydropower Plant Perucica in Montenegro The hydropower plant Perucica has been in operation for 40 years and parts of the plant have reached the end of their technical and economic lifespan and have, in some cases, already been decommissioned. As a result, the operator Elektroprivreda Crne Gore A.D. commissioned a modernisation project designed to minimise the risks of malfunction and failure, improve hydraulic structures and provide for capacity expansion from 285 MW to 307 MW. Lahmeyer International supports this project with extensive services ranging from the review of the feasibility study, the identification of physical rehabilitation work and the preparation of tender documentation through to the development of modernisation and rehabilitation programmes.

18

WATER SUPPLY & SANITATION

Access to clean drinking water is a human right and the safe and environ-mentally-compatible disposal of waste water secures hygienic conditions for the future. Lahmeyer GKW Consult GmbH (formerly Pöyry Environment GmbH) has been operating in these fields for over 50 years. Our activities are broad-based, from groundwater analysis through to the construction planning of sewage treatment plants. By establishing the Water Supply and Sanitation Division, the Lahmeyer Group has recognised the growing significance of this area of activities.

New Group CompanyLahmeyer GKW ConsultWith the objective of expanding the activities of Lahmeyer International into the areas of water supply and sewage treatment, Pöyry Environment GmbH was bought out in the first quarter of 2012 and incorporated in the Lahmeyer Group under the new name Lahmeyer GKW Consult GmbH. The company, which, since April 2012 has generated revenues exceeding u 7 million (u 11 million in the complete financial year 2012), is managed by Dr. Ralf Bufler, Managing Director.

Clean Drinking Water is a Human Right.

With 110 international experts and over 50 years of project experience in more than 50 countries, Lahmeyer GKW Consult is one of the leading engineering companies in Germany committed to both its private and public clients in the areas of sewage treatment, drinking water supply, solid waste management, environmental consultancy, regional development and management support.

More than All-Round ConsultancyWe manage all project phases from project identification and feasibility studies as well as design, preparation and evaluation of construction contracts through to construction supervision, handover and commis-sioning.

Furthermore, we offer added value by integrating related disciplines, such as hydrogeological investigations, socio-economic and environmental studies, institutional strengthening and consultancy for service providers. Here the broad expertise of our employees in both cultural and industry-specific matters ensures the success of our projects.

Inter-Disciplinary TeamsThe complexity of projects requires teams comprising experts from various backgrounds. Civil engineers, mechani-cal engineers, electrical engineers, process specialists, geotechnical engineers, geologists, economists and sociologists cooperate in an interdisci-plinary manner to bring projects to a successful conclusion and achieve a high level of client satisfaction.

Development CooperationWith regard to development assis-tance, the Regional Development Department advises on the manage-ment of investment funds in the context of development assistance, from conceptualisation, design and implementation through to monitor-ing and evaluation, with a particular focus on sustainability. For example, funds jointly financed by the KfW development bank are made available to regional authorities such as municipalities and districts, who are thereby able to finance community infrastructure projects, such as health centres, schools, markets, rural roads and erosion prevention measures..

Lahmeyer GKW Consult: Improvement in

sewage treatment in the tourist resorts

along the Adriatic Coast, Montenegro.

Client: VODACOM doo, Tivat

19

Range of Services • Drinking water supply• Sewage treatment• Solid Waste management• Environmental consultancy

Lahmeyer GKW Consult: Drinking water and sanitation programme for 24 cities in Morocco.

Client: National Drinking Water Authority (ONEE), Rabat

Our Projects are close to our Hearts.Rubber Dams for Reservoir in Skoura, MoroccoIn order to utilise the existing water resources better, the government has arranged for a rubber dam to be constructed. This will allow the agricul-tural land in Morocco’s Skoura region in Bouelmane Province to be optimally supplied with water from the beginning of 2014. Lahmeyer GKW Consult has been supporting the implementation of the rubber dam since June 2012 under contract to the Ministry of Energy, Water and the Environment.

The 50m long, 6m high rubber dam is the first of its kind in Morocco. It will provide for the irrigation of about 400 olive groves in this semi-arid region of North Africa.

The Oued Guigou River in Boulmane Province will be the water supply

source. For this purpose, a new diversion structure will also be con-structed. Together with their project partners, specialists from Lahmeyer GKW Consult will help maintain smooth and efficient workflow. The specialists are responsible for the final design as well as for the delivery, assem-bly and commissioning of the weir.

Sewage Treatment and Solid Waste Management in VietnamWith the rapid growth of its cities and its booming economy, Vietnam faces the challenge of developing the infra-structure of its provincial towns. The KfW is supporting the sewage treat-ment and solid waste disposal pro-grammes of Vietnam’s provincial towns.

The aim of the project is to improve the quality, reliability and durability of sewage disposal in the cities of

Lang Son, Son La und Hoa Binh, and to develop the introduction of a solid waste disposal system for the city of Bac Ninh. A solid waste disposal plant is planned for the provincial capital Bac Ninh as well as three biological sewage treatment plants for the three provincial capitals Lang Son, Hoa Binh and Son La. Included in this scheme is a sewerage network comprising a total of 151 km of gravity collectors, 13 pum-ping stations and a 15 km pressurised pipeline. In addition, provision has been made for approx. 20,000 house connections.

Lahmeyer GKW Consult’s services encompass all project components, including review and update of the overall concept, preparation of tender documents, contract award and commissioning, including for the duration of the warranty period.

20

BUILDING & TRANSPORTATION

The past 150 years of urban and mobility development clearly show that both developments are inextri-cably linked and will constitute the key parameters for the sustainable development of our future cities.

The Lahmeyer Group’s Building & Transportation Division addresses the issues involved in these developments.

The implementation of large-scale investments in construction and in transport infrastructure are challeng-ing tasks to which we as consultants, project developers and project manag-ers make a significant contribution.

Complex and Challenging Tasks.Active in GermanyAs subsidiaries of the Building & Transportation Division, Lahmeyer Berlin, Lahmeyer Rhein-Main and Lahmeyer München combine project management, planning and advisory services for projects in Germany. The companies’ projects include the areas of transportation, road and rail infrastructure in urban and regional sectors, as well as building construction and industrial engineering.

Competence and ExperienceExperienced engineers, financial specialists and architects ensure that project objectives are fulfilled and

quality requirements are met. They can draw on resources from a reliable and proven network of associated specialist firms in the areas of IT, law, economics and facility management, as well as leading universities. The composition of the project team matches the specific requirements of the project and the employer.

Business Performance in 2012In the Building & Transportation Division, the three German subsidiaries achieved positive results. With annual revenues of u 7 million, (also u 7 million, adjusted, in the previous year), revenues remained stable.

Lahmeyer München: Urban bypass and railway bridge Obersurheim - part of the project ABS 38 München-Mühldorf-Freilassing, Germany.

Client: Deutsche Bahn, München and Municipality of Saaldorf-Surheim

Revenue Development of theLahmeyer Companies in Germany

in u million

Berlin München Rhein-Main

20102009 2011 2012

Building & Transportation Division’sShare of Overall Revenue in 2012

5 % Building & Transportation

1.81.51.4 1.7

3.42.62.8

3.5

2.01.4 1.6 1.7

21

Ramge of ServicesConstruction and project management for:• Building construction projects• Transport infrastructure projects• Industrial engineering projects

Our range of services covers all project phases including conception and development, design, tendering, con-tract award and execution through to commissioning, with different areas of specialisation in the individual companies.

Rail and Road Design Lahmeyer München prepared the railway and bridge design for the intersection in Surheim under contract to Deutsche Bahn. In this context, transportation experts were also awarded a contract from the Municipal-ity of Saaldorf-Surheim for the design of the Obersurheim road bypass through-out all stages of implementation

Projects for Modern Living.through to commissioning. The project is part of the upgrading of Section 38 München-Mühldorf-Freilassing (Salzburg), which is a component of the Trans European Network’s (TEN) Paris-Mu-nich-Vienna-Budapest through-route.

Development of Ticona Site Lahmeyer Rhein-Main, in its capacity as project manager for Fraport AG, is preparing a feasibility study on the development potential of the former chemical plant site at Ticona. The site lies directly adjacent to the new runway to the North West of Frankfurt Airport. A complete conversion of the site is planned.

Panorama Office BerlinSONUS Trias GmbH & Co. KG plans to construct a modern office block in Alexanderplatz in central Berlin, with particular attention being paid to sustainability and environmental compatibility. The aim is to achieve certification to the standards of the German Sustainable Building Council. In developing the project, Lahmeyer Berlin already provided technical advisory services to the investor during project development with respect to purchase agreements, planning permissions and infrastructure development contracts, as well as preparing a feasibility study.

Lahmeyer Berlin: Modern Office Block Berlin-Alexanderplatz, Germany.

Client: SONUS TRIAS GmbH & Co. KG, Berlin

Lahmeyer Rhein-Main: Development of the

Ticona site at Frankfurt Airport, Germany.

Client: Fraport AG

22

LAHMEYER INTERNATIONAL INDIA

As early as 20 years ago, Lahmeyer’s management recognised the major potential of the Indian market and, with an Indian partner, founded the subsidiary Lahmeyer International India.

Lahmeyer International India operates primarily in India and is recognised and valued as one of the leading engineer-ing companies in the fields of energy, hydropower and transportation. With some 380 employees, our Indian company is the second largest company

Lahmeyer International India: Project management for 765 kV electricity transmission

project in Maharashtra State.

Client: Maharashtra Eastern Grid Power Transmission Company, Ahmedabad

20 Years of Success in India.

in the Lahmeyer Group after Lahmeyer International. In addition to the four disciplinary divisions, the company constitutes a regional division in the organisational structure.

The 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 (Calcutta) in the state of West Bengal.

Experience in the RegionDue to its long-standing experience, Lahmeyer International India has detailed knowledge of local conditions such as market dynamics, legislation, directives and institutional culture.

Together with the Lahmeyer Group, Lahmeyer International India also successfully implements projects outside India, particularly in Asia. The mix of international expertise and local perspectives makes the company a successful competitor in the market.

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 company’s employees.

Outstanding AchievementsSince its founding, our Lahmeyer company in India has achieved outstanding results in all its areas of activity. The scope of services includes technical, financial, contractual and economic consultancy services for energy, hydropower and infrastructure projects across all project phases. Included in these service areas are classical applications, such as conven-

Lahmeyer International India’s Share of Overall Revenue in 2012

2009 2010 2011* 2012

6.110.4

23.3 22.0

Revenue Development of Lahmeyer International India

Revenue (IFRS)

14 % Lahmeyer International India

* Adjusted for effects from the modification of accounting methods

765-kV electricity transmission project

10.9 10.5

1.0

in m million

23

Lahmeyer International India: Hydropower potential in the federal state of Himachal Pradesh, India.

Client: Himachal Pradesh Power Corporation Ltd., Shimla

tional energy generation and electricity transmission and distribution as well as the design and development of new technologies in the field of renewable energies.

Lahmeyer International India offers support in the form of professional and innovative solutions for the environmentally friendly use of hydropower and the development of local water resources and supply.

Engineering Consultancy for allProject PhasesWe provide consultancy services for all project phases, from the pre-investment and implementation phases right through to successful commissioning and beyond. Our scope of services includes detailed feasibility studies, project management, overall concep-tualisation, tender documents and tendering processes, as well as support during contract award and construc-tion supervision.

Business Performance in 2012The Lahmeyer subsidiary has now successfully positioned itself in the Indian market for two decades. Revenues have experienced continual growth over the past few years. In 2011, they more than doubled in comparison with the previous year, rising from u 10.4 million to approx. u 23.3 million. At u 22 million, this high level of revenue was maintained at almost the same level in 2012.

This enormous growth during 2011 is primarily due to a large-scale electricity transmission project. In 2010, Lahmey-er International India took over the project management of the 765 kV electricity transmission project for the Maharashtra Eastern Grid Power Transmission Company. The Company has delivered a range of services for this project, which provides electricity distribution and transmission via high-voltage networks in Maharashtra State.

Successful Project WorkNumerous other projects exist in addition to this large-scale project for electricity distribution and transmission in Maharashtra. The Transportation Division also provides consultancy services for urban and regional transport systems and airports.

Lahmeyer specialists are also deployed for national hydropower projects with capacities between 50 and 1,450 MW. The Government energy authority of the North Indian State of Himachal Pradesh commissioned Lahmeyer International India with the review and mapping of the state for hydropower generation in all five basins of the Rivers Yamuna, Beas, Ravi, Satluj and Chenab.

Keeping in Touch with Clients Worldwide.

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

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

Lahmeyer GKW Consult GmbHAugustaanlage 6768165 MannheimPhone: +49 621 41077-0Fax: +49 621 41077-302info.gkw@de.lahmeyer.com

Lahmeyer Hydroprojekt GmbHRießnerstraße 1899427 WeimarPhone: +49 3643 746-400Fax: +49 3643 746-405hydroprojekt@hydroprojekt.dewww.hydroprojekt.de

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

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

International CompaniesLahmeyer International (India) Pvt. Ltd.INTEC HOUSE, Plot No. 3737 Institutional Area, Sector-44Gurgaon-122 002, IndiaPhone: +91 124 4698500Fax: +91 124 4698585info@lahmeyer.inwww.lahmeyer.in

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

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

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

Hidrolin Hidrodizayn & Linerji EnerjiMühendislik ve Müsavirlik Ltd. Sti.Vazha Pshavela Avenue, Suite 1590189 Tbilisi, GeorgiaPhone: +995 5 57612978info@hidrodizayn.comwww.hidrodizayn.com

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

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