ANNUAL AND SUSTAINABILITY REPORT

2023

2

Contents

Intro

6 2023 in numbers

  1. Key figures in detail
  1. Reporting profile
  2. CEO's review
  1. STRABAG at a glance
  1. Business model
  1. Strategy
  1. Investor relations

Corporate Governance

  1. Consolidated corporate governance report
  2. General principles

40 Boards

  1. Equality, diversity and inclusion
  1. Sustainability
  2. Continuous development of the corporate governance system
  3. Risk management and audit
  1. Corporate governance reports of publicly listed subsidiaries

70 Supervisory board report

3

Sustainability Report

  1. Sustainability management
  2. Our path to becoming climate neutral
  1. Our sustainability management
  1. Sustainability progress
  1. Environment
  2. Energy and emissions
  1. Circularity

104 Digitalisation and innovation

  1. Social
  2. General employment figures
  1. Human rights
  1. Occupational safety and health
  1. Strategic human resource development
  1. Governance
  2. Fair competition
  1. EU Taxonomy and Appendix
  2. EU Taxonomy
  1. Data Appendix
  1. GRI content index

175 Independent assurance report on the non-financial reporting according to

Sec 267a UGB

4

Group Management Report,

Consolidated Financial Statements & Notes

  1. Group management report
  2. Important events
  1. Country report
  1. Order backlog
  1. Financial performance
  1. Financial position and cash flows
  1. Capital expenditures
  2. Financing and treasury
  1. Segment report
  1. Risk management
  1. Research and development
  1. Website Corporate Governance Report
  2. Disclosures under Section 243a Para 1 UGB
  1. Related parties
  2. Outlook
  3. Events after the reporting period

236 Consolidated financial statements as at 31 December 2023

  1. Consolidated income statement
  2. Statement of comprehensive income
  3. Consolidated balance sheet
  4. Consolidated cash flow statement
  5. Statement of changes in equity
  1. Notes to the consolidated financial statements
  2. Basic principles
  3. Changes in accounting policies
  4. Consolidation

250 The consolidated group

  1. Consolidated companies and equity accounted associates and joint ventures
  1. Accounting policies
  1. Notes on the items of the consolidated income statement
  1. Notes on the items in the consolidated balance sheet
  1. Notes on financial instruments
  1. Segment report
  1. Other notes
  1. Statement of all legal representatives
  2. Auditor's report
  1. Financial calendar & contact
  1. Glossary
  1. Imprint

INTRO CORPORATE GOVERNANCE SUSTAINABILITY REPORT GROUP MANAGEMENT REPORT, CONSOLIDATED FINANCIAL STATEMENTS & NOTES

Intro

2023

INTRO CORPORATE GOVERNANCE SUSTAINABILITY REPORT GROUP MANAGEMENT REPORT, CONSOLIDATED FINANCIAL STATEMENTS & NOTES

6

2023 in numbers

Output volume

Order backlog

STRABAG SE generated a new record output volume in 2023, thanks in part to growth in nearly all of the Group's key markets.

Despite sharp declines on the residential construction market, the order backlog at the end of 2023 remained nearly stable at a very high level.

EBIT

Order backlog by region

The EBIT margin showed significant growth, reaching 5.0% (2022: 4.2%) as a result of positive earnings contributions from the North + West segment.

STRABAG operates in more than 50 countries around the world. The geographical distribution of the order backlog reflects the company's strong roots in Central and Eastern Europe.

INTRO CORPORATE GOVERNANCE SUSTAINABILITY REPORT GROUP MANAGEMENT REPORT, CONSOLIDATED FINANCIAL STATEMENTS & NOTES

7

Output volume by segment

Output growth by segment

Our business activities are divided into three operating segments: North + West, South + East and International + Special Divisions. The segment Other encompasses the Group's central divisions and central staff divisions.

Significant growth was achieved in all three operating segments during the 2023 reporting year. The fulfilment of large and mega projects had an especially positive impact on this figure in the International + Special Divisions segment.

Equity ratio

Net debt

The equity ratio of STRABAG SE remained noticeably above the 30% mark as at 31 December 2023, clearly exceeding our target of at least 25%.

Another net cash position was reported for

31 December 2023 - with a noticeable increase due primarily to higher cash and cash equivalents and a further reduction in financial liabilities.

INTRO CORPORATE GOVERNANCE SUSTAINABILITY REPORT GROUP MANAGEMENT REPORT, CONSOLIDATED FINANCIAL STATEMENTS & NOTES

8

Key figures in detail

Key financial figures

2019

2020

2021

2022

Δ %

2023

Output volume (€ mn)

16,617.97

15,446.61

16,128.92

17,735.47

8

19,139.14

Order backlog (€ mn)

17,411.48

18,369.02

22,500.85

23,738.84

-1

23,466.13

Employees (FTE)

76,919

74,340

73,606

73,740

5

77,136

Key earnings figures

2019

2020

2021

2022

Δ %

2023

Revenue (€ mn)

15,668.57

14,749.74

15,298.54

17,025.85

4

17,666.54

EBITDA (€ mn)

1,113.30

1,174.45

1,445.72

1,257.21

13

1,418.31

EBITDA margin (% of revenue)

7.1

8.0

9.5

7.4

8.0

EBIT (€ mn)

602.58

630.65

896.11

706.40

25

880.20

EBIT margin (% of revenue)

3.8

4.3

5.9

4.2

5.0

EBT (€ mn)

577.24

610.05

883.54

717.07

29

924.32

Net income (€ mn)

378.56

399.06

596.40

480.13

32

633.39

Net income after minorities (€ mn)

371.70

395.22

585.71

472.45

33

630.51

Earnings per share (€)

3.62

3.85

5.71

4.60

37

6.30

ROCE (%)

7.5

7.5

10.9

9.2

12.2

Key balance sheet figures

2019

2020

2021

2022

Δ %

2023

Equity (€ mn)

3,855.90

4,108.22

4,071.82

4,025.24

10

4,409.36

Equity ratio (%)

31.5

33.9

33.3

31.7

32.2

Net debt (€ mn)

-1,143.53

-1,747.23

-1,937.18

-1,927.70

-37

-2,643.24

Balance sheet total (€ mn)

12,250.81

12,134.44

12,225.77

12,683.76

8

13,706.21

INTRO CORPORATE GOVERNANCE SUSTAINABILITY REPORT GROUP MANAGEMENT REPORT, CONSOLIDATED FINANCIAL STATEMENTS & NOTES

9

Cash flow

2019

2020

2021

2022

Δ %

2023

Cash flow from operating activities (€

1,075.94

1,279.66

1,220.56

812.86

>100

1,816.51

mn)

Cash flow from investing activities (€

-593.30

-349.60

-377.56

-560.42

-17

-654.87

mn)

Investments in property, plant and

647.44

450.96

456.34

630.52

-14

540.97

equipment, and in intangible assets (€

mn)

Depreciation and amortisation

510.72

543.80

549.61

550.81

-2

538.12

expense (€ mn)

Cash flow from financing activities (€

-411.62

-495.90

-743.90

-503.66

15

-430.58

mn)

Key share indicators and rating

2019

2020

2021

2022

Δ %

20231

Closing price at year's end (€)

31.00

28.45

36.65

39.10

6

/ -

41.40 / 41.40

Year's high (€)

32.30

31.50

43.20

43.75

-4

/ -

41.90 / 42.00

Year's low (€)

26.85

16.02

27.90

32.75

10

/ -

36.00 / 36.00

Outstanding bearer shares at year's

102,599,997

102,599,997

102,599,997

102,599,997

40,112,066 /

end (shares)

62,487,931

Market capitalisation at year's end (€

3.2

2.9

3.8

4.0

1.7 / 2.6

bn)

Dividend per share (€)

0.90

6.90

2.00

2.00

10

2.202

Dividend payout ratio (%)

25

179

35

43

413

S&P Rating

BBB

BBB

BBB

BBB

BBB

  1. STRABAG shares AT000000STR1 / AT0000A36HH9
  2. Dividend proposal by the Management Board of € 2.20 per dividend-bearing share
  3. Based on the dividend proposal by the Management Board of € 2.20 and in relation to the increased share capital of 118,221,982 shares

INTRO CORPORATE GOVERNANCE SUSTAINABILITY REPORT GROUP MANAGEMENT REPORT, CONSOLIDATED FINANCIAL STATEMENTS & NOTES 10

Reporting profile

For the 2023 financial year, STRABAG SE has drafted a combined annual and sustainability report reflecting the situation of the Group as at

31 December 2023. This report was published on 25 April 2024.

The online annual and sustainability report 2023 of STRABAG SE can be found at report.strabag.com

Find out more

Reporting structure and external audit

Financial and non-financial information provide insight into the fundamental economic, environmental, social/societal and corporate governance consequences of our business activity. The present report is also available in its entirety online at report.strabag.com.

In the intro to our combined annual and sustainability report, we present some of our key figures as well as information on the Group's corporate structure, business model and corporate strategy. This is followed by capital market information on the performance of our share and the company's ownership structure. The consolidated corporate governance report outlines the rules, structures and processes that STRABAG SE has implemented in the interests of good corporate governance and is an expression of our unreserved commitment to the Austrian Code of Corporate Governance (ÖCGK).

The STRABAG SE sustainability report (Consolidated Non-Financial Report) was prepared in accordance with the standards of the Global Reporting Initiative (GRI). It fulfils the requirements laid down in Section 267a of the Austrian Commercial Code (UGB) and consequently meets the provisions of the Austrian Sustainability and Diversity Improvement Act (NaDiVeG). In the EU Taxonomy and Appendix section of the sustainability report, STRABAG discloses its share of Taxonomy-eligible and Taxonomy-aligned economic activities with regard to turnover (revenue), capital expenditures (CapEx) and operating expenditures (OpEx) as well as its compliance with minimum social safeguards. A detailed GRI content index is also provided in this section. The sustainability report was subjected to a voluntary limited assurance engagement conducted by KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft, Linz.

The Group management report, the consolidated financial statements and the notes to the consolidated financial statements were prepared in accordance with the International Financial Reporting Standards (IFRS), taking into account Section 245a of the Austrian Commercial Code (UGB). These sections of the report were audited by KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft, Linz, and awarded an unqualified audit opinion.

Service

The financial calendar for the 2024 financial year, the glossary and contact information for STRABAG SE Corporate Communications and Investor Relations can be found at the end of this report.

Attachments

Disclaimer

Strabag SE published this content on 25 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 April 2024 06:52:04 UTC.