Special Features of Construction Companies' Financial Statements

Reported guarantees

In the annual financial statements of listed construction companies, guarantees provided by the company are reported explicitly. This takes the form of contingent liabilities which are reported on the balance sheet bottom line or in the notes to the financial statements.

These guarantees relate both to the mainstream construction business and to all construction-related services which HOCHTIEF is continuously expanding.

The guarantees are provided by HOCHTIEF Aktiengesellschaft on behalf of its subsidiaries and associated companies for their respective clients. In this way, the obligations agreed by the companies in their operative business are collateralized for the case of default of one of the companies.

Due to its good credit standing, the HOCHTIEF Group is in a position to meet such collateral requirements via Group guarantees.