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STRABAG SE

Quarterly Report Aug 31, 2015

761_ir_2015-08-31_6dca52dd-f9c8-40f3-98ea-35659a64788a.pdf

Quarterly Report

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KEY FIGURES 3
CEO'S REVIEW4
IMPORTANT EVENTS 6
SHARE8
MANAGEMENT REPORT JANUARY–JUNE 2015 9
SEGMENT REPORT 12
CONSOLIDATED SEMI-ANNUAL FINANCIAL STATEMENTS 16
NOTES TO THE CONSOLIDATED SEMI-ANNUAL FINANCIAL STATEMENTS21
STATEMENT OF ALL LEGAL REPRESENTATIVES29
FINANCIAL CALENDAR30

KEY FIGURES

KEY FINANCIAL FIGURES

Q2/2015 Q2/2014 ∆ % 6M/2015 6M/2014 ∆ % 2014
Output volume (€ mln.) 3,736.33 3,435.81 9 6,204.67 5,779.55 7 13,566.00
Revenue (€ mln.) 3,461.51 3,189.98 9 5,745.47 5,353.94 7 12,475.67
Order backlog (€ mln.) 14,841.43 15,468.48 -4 14,403.44
Employees 72,837 71,215 2 72,906
Cash flow from operating
activities (€ mln.) -105.40 -63.82 -65 -290.07 -181.18 -60 805.33
Investments in fixed assets
(€ mln.)
94.08 105.44 -11 160.49 166.04 -3 346.49

KEY EARNINGS FIGURES

Q2/2015 Q2/2014 ∆ % 6M/2015 6M/2014 ∆ % 2014
EBITDA (€ mln.) 189.92 150.34 26 123.83 80.43 54 719.94
EBITDA margin (% of revenue) 5.5 4.7 2.2 1.5 5.8
EBIT (€ mln.) 90.90 55.75 63 -68.42 -107.98 37 281.96
EBIT margin (% of revenue) 2.6 1.7 -1.2 -2.0 2.3
EBT (€ mln.) 83.89 46.79 79 -67.73 -120.98 44 255.76
Net income (€ mln.) 65.98 41.41 59 -61.47 -98.89 38 147.50
Net income after minorities
(€ mln.) 60.96 38.89 57 -55.51 -93.12 40 127.97
Net income after minorities
margin (% of revenue) 1.8 1.2 -1.0 -1.7 1.0
Earnings per share (€) 0.59 0.38 57 -0.54 -0.91 40 1.25
ROCE (%) 1.5 1.1 -0.5 -1.1 4.3

KEY BALANCE SHEET FIGURES

30.6.2015 31.12.2014 ∆ %
Equity (€ mln.) 3,070.27 3,144.30 -2
Equity ratio (%) 29.1 30.6
Net debt (€ mln.) 200.74 -249.11 n.m.
Gearing ratio (%) 6.5 -7.9
Capital employed (€ mln.) 5,339.65 5,357.82 0
Balance sheet total (€ mln.) 10,551.07 10,275.54 3

EBITDA = earnings before net interest income, income tax expense and depreciation and amortisation

EBIT = earnings before net interest income and income tax expense EBT = earnings before income tax expense

ROCE = (net income + interest on debt - interest tax shield (25 %))/(average group equity + interest-bearing debt)

Net debt = financial liabilities - non-recourse debt + provisions for severance and pension obligations - cash and cash equivalents Gearing ratio = net debt/group equity

Capital employed = group equity + interest-bearing debt

CEO'S REVIEW

  • Output volume at € 6.2 billion, growth of 7 %
  • EBITDA stronger by 54 %, EBIT improvement of 37 % and earnings per share up 40 %
  • Order backlog remains at high level: € 14.8 billion (-4 %)
  • 2015 outlook confirmed: expected output volume of € 14.0 billion, EBIT of at least € 300 million

Dear shareholders, associates and friends of STRABAG SE,

In 2015, we want to bring our EBIT margin one step closer to our goal of 3 %. And the first half of the year shows us that we are well on our way to reaching this goal: The earnings figures grew in the double-digit percentage range, with the EBITDA gaining more than 50 % and the typical six-month EBIT loss reduced by 37 %.

We are all the more pleased with these improvements as we were simultaneously able to achieve a plus of 7 % in both revenue and output volume. However, these growth rates can not be translated directly to the forecast for year's end. Regarding the financial year, we therefore confirm our outlook: The output volume should reach € 14.0 billion, the earnings before interest and taxes at least € 300 million.

I thank you for your trust and am confident that I will be able to report positive progress at the end of the year as well.

Yours,

Thomas Birtel CEO of STRABAG SE

IMPORTANT EVENTS

JUNE

STRABAG building Rhone Oberwald power plant in Switzerland

STRABAG AG is building a 14 MW run-ofthe-river hydroelectric plant in the Swiss canton of Valais. The contract value of € 37 million (CHF 38 million) comprises the construction of the necessary tunnels, galleries and underground chambers. The tunnels and galleries will be excavated in the Aarmassif of the Swiss Alps through boring and blasting. The plant is to be handed over to Valais utility company FMV SA by September 2017.

STRABAG constructs Józef Piłsudski Museum in Poland with 5-D planning

Polish STRABAG Sp. z o.o. has been commissioned to design and build a museum dedicated to the former head of state of independent Poland Józef Piłsudski in the town of Sulejówek in the Warsaw metropolitan area. The modern exhibition complex will be built within a period of 26 months for about € 32 million (PLN 131 million). The project will be realized using building information modelling, so-called 5-D planning.

S&P upgrades STRABAG SE from BBB- to BBB

The international rating agency Standard & Poor's (S&P) has raised the credit rating of STRABAG SE by one level from BBB- to BBB. The outlook remains at "stable". S&P explained its decision with reference to the company's credit ratios, which it said were already significantly above the level for the previous rating. Current forecasts indicate this should remain the case in the years to come, the rating agency says. The agency sees STRABAG SE's strengths in its stable margins in an otherwise cyclical market environment, in its effective risk management and in its strong market positions.

STRABAG widening A3 in southern Germany to six lanes for € 90 million

STRABAG has been awarded the contract to widen two sections of the A3 motorway in Germany with a total contract value of about € 90 million. Contract section EO 287 foresees STRABAG expanding the federal motorway to six lanes along the 5.7 km from the Heidingsfeld interchange in Bavaria to Randersacker Bridge. Additionally STRABAG recently started work on the A3 contract section EO 259, an 8.5 km stretch of motorway near Wertheim in Baden-Württemberg. This contract involves the expansion of the asphalt roadway from four to six lanes.

Züblin extends sewer network in Singapore

The pipe jacking division of Ed. Züblin AG, a subsidiary of the STRABAG group, expands the City of Singapore's sewer network for € 85 million (SGD 132 million). Until 2017, a total of 112 shafts and sewer pipes with an overall length of 9.8 km will be erected.

JULY

7

STRABAG enters the Colombian market with a € 900 million concession project

ANI, Colombia's national infrastructure agency, has awarded the contract to design, build, finance and operate a 176 km road over 25 years to a consortium, where STRABAG holds 37.5 %. The financial close is expected for the fourth quarter of 2016, the total investment volume is around € 900 million. STRABAG will likely contribute equity and junior loans of slightly more than € 50 million. The construction volume amounts to a middle triple-digit million Euro amount. Of this sum, STRABAG's share comes to 37.5 %, too. In addition to partial revenues in the form of hard toll collections, the consortium will receive annual payments from ANI for its services.

A10 Oswaldibergtunnel for € 34 million upgraded by STRABAG

STRABAG will modernise the A10 Oswaldibergtunnel for ASFINAG, Austria's national motorway operator. The two tubes, each with a length of 4.3 km, will be upgraded between July 2015 and June 2017 to represent state of the art; in particular, with respect to tunnel safety standards. The contract has a volume of € 34 million. It includes the redevelopment measures in the fields of road construction, tunnelling and building construction as well as the reinstallation of the entire electrical and mechanical equipment (E&M).

Contract for section of A1 in Poland for € 118 million AUGUST

A Polish STRABAG-subsidiary will build the 15 km section between Woźniki and Pyrzowice within a period of 30 months. The contract comprises the construction of the concrete motorway as well as one maintenance facility, two rest stops, 29 bridge structures and several wildlife crossings. The opening in mid-2018 will mark the completion of another portion of the Trans-European Network (TEN).

SHARE

DEVELOPMENT OF THE STRABAG SE SHARE PRICE AND OF THE BENCHMARK INDEXES

STRABAG SE shares developed well in early 2015, reaching a preliminary year-to-date high of € 22.25 on 13 March. The price then dropped slightly. A recovery in the second quarter brought the shares to a level near the year's maximum, before the price fell again slightly toward the end of the half-year to close at € 20.02. In total, the STRABAG SE share price gained 10 % over the first half of the year.

The Austrian benchmark index ATX and the industry index STOXX Europe 600 Construction & Materials exhibited more constant development, with growth of 12 % and 14 %, respectively, in the same period. New York's Dow Jones Industrial showed only minor fluctuations during the first six months, closing the first half of the year at -1 %. Germany's DAX index, on the other hand, registered strong growth

rates from the start of the second quarter, gaining 12 % overall from January through the end of June.

The average volume of STRABAG shares traded per day fell to 35,5481) in comparison to 48,7741) during the first half of the previous year. As a result, the volume of STRABAG shares as a percentage of the total volume traded on the Vienna Stock Exchange fell by more than one third.

STRABAG's shares are currently under observation by nine international banks. The analysts calculated an average share price target of € 22.10. Detailed analyses and recommendations are available on the STRABAG SE website: www.strabag.com > Investor Relations > Share > Equity Research

STRABAG SE SHARE

6M/2015
Market capitalisation on 30 June 2015 (€ mln.) 2,054.05
Closing price on 30 June 2015 (€) 20.02
Year's maximum on 13 March 2015 (€) 22.25
Year's minimum on 21 January 2015 (€) 17.45
Performance six months 2015 (%) 10
Outstanding bearer shares on 30 June 2015 (absolute) (shares) 102,599,997
Outstanding bearer shares six months 2015 (weighted) (shares) 102,599,997
Weight in WBI on 30 June 2015 (%) 2.65
Volume traded six months 2015 (€ mln.)1) 88.51
Average trade volume per day (shares)1) 35,548
% of total volume traded on Vienna Stock Exchange 0.29

MANAGEMENT REPORT JANUARY–JUNE 2015

Output volume and revenue

STRABAG SE generated an output volume of € 6,204.67 million in the first half of the 2015 financial year. This increase of 7 % was driven primarily by the markets of Germany, Slovakia, Poland and Chile. The consolidated group revenue, like the output volume, grew by 7 % to € 5,745.47 million. The ratio of revenue to output volume amounted to 93 %, the same as in the first six months of the previous year.

The output volume for the second quarter grew even slightly more strongly than for the sixmonth period, gaining 9 % to € 3,736.33 million. The revenue also increased by 9 %.

Order backlog

Different trends were registered in the order backlog: In Poland, several expressways and a large building construction project contributed to a considerable increase of the volume of orders on the books. In Germany, on the other hand, this figure fell back from the previous high level. Large projects are being worked off in Hungary and in Chile. In total, the order backlog stood at € 14,841.43 million on 30 June 2015 – a decline of 4 % versus 30 June 2014.

Financial performance

The limited capacity for construction in winter results in significant seasonal effects on the development of earnings and other financial figures of STRABAG SE. The first half of the year typically has a negative effect on results, which is then overcompensated by results in the second half of the year. As a result of the seasonal effects, a quarterly comparison makes little sense.

The higher revenue also resulted in improved earnings before interest, taxes, depreciation and amortisation (EBITDA) in the first half of 2015 by 54 % to € 123.83 million. The depreciation and amortisation was at about last year's level, with € -192.25 million compared to € -188.41 million. The earnings before interest and taxes (EBIT) stood at € -68.42 million, 37 % less deeply in negative territory. This development was influenced mostly by the South + East segment.

Significant positive exchange rate differences, especially regarding the Swiss franc, in the amount of € 16.08 million – compared to € 4.55 million in the comparison period – resulted in positive net interest income of € 0.69 million after € -13.00 million a year before. Below the line, this resulted in a 44 % improvement of the earnings before taxes (EBT) to € -67.73 million. Accordingly, the income tax was again in positive territory with € 6.26 million and thus provided some relief despite being 72 % lower on the year.

This left a net income of € -61.47 million (+38 %). As third-party shareholders helped bear a loss of € 5.96 million, the net income after minorities improved by 40 % to € -55.51 million. In light of 102,600,000 outstanding shares, this corresponds to earnings per share of € -0.54 after € -0.91 for the first half of the previous year.

Double-digit percentage growth was also observed in a second quarter comparison: The EBITDA increased by 26 % to € 189.92 million. The EBIT grew by 63 % to € 90.90 million and the net income after minorities by 57 % to € 60.96 million.

Financial position and cash flows

The balance sheet total on 30 June 2015 was up slightly versus the end of 2015 (+3 %). Conspicuous was the usual seasonal increase of the trade receivables – a result of the higher revenue – with a simultaneous reduction of cash and cash equivalents. The non-current financial liabilities increased as well, resulting from a € 200 million bond issue in the first quarter of 2015. The balance sheet inflation led to a slight decline of the equity ratio – although it remained at a similar high level – from 30.6 % at the end of 2014 to 29.1 %. The net debt improved to € 200.74 million from € 281.73 million at the end of June of the previous year.

The cash flow from earnings increased by 71 % to € 79.94 million. The cash flow from operating activities, on the other hand, sank to € -290.07 million – 60 % more deeply in negative territory – in part due to the considerable growth in receivables, which could not fully be balanced out through higher liabilities. The other cash flows improved: The cash flow from investing activities, with € -105.55 million after € -137.18 million, was less negative thanks to increased asset sales. The cash flow from financing activities benefited from the aforementioned bond issue.

Capital expenditures

In addition to the necessary maintenance expenditures – for the most part in Germany – STRABAG invested especially in project-specific equipment needed for its international business, e.g. in pipe jacking business and in liquefied natural gas (LNG), in the first half of 2015. The company also registered a higher investment volume in the Czech Republic and Poland as well as in the construction materials business in Austria and in Germany. The capital expenditures included € 160.49 million for the purchase of property, plant and equipment and intangible assets as well as € 7.73 million for the purchase of financial assets. This time, cash inflows from changes to the scope of consolidation gave the company an additional € 4.33 million.

Employees

The 2 % growth in the number of employees to 72,837 in the first half of 2015 is almost exclusively due to the acquisition of Germany- and Austriabased DIW Group last year. The increases and decreases in the other markets balanced each other out: In the Americas region, for example, the group employed an additional 1,000 persons compared to the first quarter of the previous year, while the employee levels in Africa were reduced by a similarly high amount.

Major transactions and risks

During the first six months of the financial year, there were no transactions with related parties which significantly influenced the financial situation or the business result nor were there any changes to transactions with related parties which were presented in the annual financial statements and which significantly influenced the financial situation or business result of the first six months of the current financial year.

In the course of its entrepreneurial activities, the STRABAG Group is exposed to a number of risks, which can be identified and assessed using an active risk management system and dealt with by applying an appropriate risk policy. Among the most important risks are external risks such as cyclical fluctuations in the construction industry, operating risks in the selection and execution of projects, as well as financial, organisational, personnel, legal, political and investment risks.

The risks are explained in more detail in the 2014 management report. A review of the current risk situation revealed that in the reporting period there existed no risks which threatened the existence of the company and that for the future no risks are recognisable which constitute a threat to its continued existence.

Outlook

The management board of STRABAG SE continues to expect the output volume in the 2015 financial year to grow from € 13.6 billion to € 14.0 billion. The EBIT should increase to at least € 300 million. In this regard, the efforts made thus far to further improve the risk management and to lower costs would already have an impact on earnings. This would bring the company one step closer to its target of achieving an EBIT margin (EBIT/revenue) of 3 % in 2016.

The earnings expectations are based on the observation that demand in the German building construction and civil engineering market remains at the same high level. At the same time, no large increases in investments in transportation infrastructures have been observed in this home market. While the margins in the construction materials business continue to improve in 2015 and the turnaround has been reached in environmental technologies, such a forecast is not yet possible for hydraulic engineering. The company continues to expect positive contributions from its property and facility management units and from real estate development. The price pressure remains strong in the countries of Central and Eastern Europe, although in Poland, for example, the company is capable of successfully bidding for larger tenders. The same can be said of the tunnelling business and of public-private partnerships, i.e. of concession projects, in the home markets, which is leading STRABAG to become more active in this area in non-European markets.

As larger acquisitions are not planned, the net investments (cash flow from investing activities) are expected to decline significantly to around € 350 million after € 435.30 million the year before.

SEGMENT REPORT

North + West

€ mln. Q2/2015 Q2/2014
%

absolute
6M/2015 6M/2014
%

absolute
Output volume 1,632.64 1,550.90 5 81.74 2,744.07 2,649.39 4 94.68
Revenue 1,535.70 1,472.82 4 62.88 2,568.95 2,520.54 2 48.41
Order backlog 6,013.47 6,027.09 0 -13.62
EBIT -6.94 -22.27 69 15.33 -93.65 -94.62 1 0.97
EBIT margin
(% of revenue) -0.5 -1.5 -3.6 -3.8
Employees 22,243 22,237 0 6

The output volume of the North + West segment reached € 2,744.07 million in the first half of 2015, a plus of 4 % over the same period of the previous year. In the largest market, Germany, the building construction and civil engineering business helped to grow this figure despite a slight reduction of the output in transportation infrastructures. Poland, the second largest market in this segment, generated significant output growth thanks to the high level of the order backlog. Declines, on the other hand, were reported from Sweden and the Benelux countries.

The revenue increased only slightly by +2 % in the first half of the year. Hardly any change was observed in the earnings before interest and taxes (EBIT), which settled at € -93.65 million compared to € -94.62 million in the same period last year. The continued clear negative earnings were due to the higher winter losses in transportation infrastructures in the first quarter – including in railway construction, which was represented in this segment for the first time. In the second quarter, the earnings improved by 69 % to € -6.94 million; the revenue grew by 4 %.

The order backlog, at € 6,013.47 million, remained nearly unchanged versus the comparison value from 30 June 2014. Despite the acquisition of several new road construction projects in the home market of Germany – e.g. section 4 of the A 100 motorway in Berlin by Ed. Züblin AG with a contract value of around € 44 million or the widening of two sections of the A3 in the south of the country for € 90 million –, the high order backlog fell overall due to the completion of large projects such as Milaneo in Stuttgart. The declining volume of orders in Germany, Sweden and Denmark was compensated by new projects in Poland, however, where the order backlog nearly doubled. Construction projects being handled by STRABAG's Polish subsidiary include a museum in the greater Warsaw area for about € 32 million (PLN 131 million) as well as several sections of expressway.

The number of employees in the segment remained nearly unchanged compared to the same period of the previous year, settling at 22,243 in the first half of 2015. Staff levels were down in Sweden and in the other European countries, while this figure grew in Germany in response to the reclassification of the German railway construction business from the South + East segment to North + West last year.

A word on the segment outlook: An output volume of € 6.2 billion is expected in the 2015 financial year in the North + West segment – an assumption that to a large degree is already covered by existing contracts. The German building construction and civil engineering business should continue to contribute positively to both output volume and earnings. Prices for subcontractor services and for construction materials have remained moderate so far despite the lively building construction activity in the country; with decreasing free capacities, however, higher prices are to be expected. In transportation infrastructures, STRABAG does not expect any significant changes to the current market situation over the year. Possible investment increases in infrastructure on the part of the public sector would reflate market development from 2016 at the earliest. The installation of bituminous mixtures remains at 25–30 % below the previous year's levels. STRABAG expects that, overall, less mixture will be installed in Germany in the year 2015. This situation has a corresponding negative influence on the production volume and the contribution margins of the mixing plants.

The Polish construction sector has been undergoing a significant recovery since the year 2014. Several road construction contracts helped to boost the order backlog last year. The volume of public-sector tenders will likely reach about € 4.4 billion this year, a comparable level to 2014, of which € 1.7 billion were actually tendered in the first half of the year. For the full year, STRABAG expects a significant increase of its own output volume with growth in the doubledigit percent range. A large portion has already been secured through existing contracts.

In Scandinavia, the countries of Sweden and Denmark are making the most significant contributions to the output volume. Here, both

the overall economic environment and the construction market continue to be stable, although the price levels are on the decline due to the higher number of competitors. The economic environment for building construction in Sweden continues to exhibit growth potential, albeit at only stable margins.

South + East

€ mln. Q2/2015 Q2/2014 % absolute 6M/2015 6M/2014 % absolute
Output volume 1,248.96 1,174.20 6 74.76 1,886.78 1,798.94 5 87.84
Revenue 1,215.52 1,123.53 8 91.99 1,807.58 1,694.28 7 113.30
Order backlog 4,140.60 5,004.21 -17 -863.61
EBIT 85.57 57.68 48 27.89 28.08 -17.22 n.a. 45.30
EBIT margin
(% of revenue) 7.0 5.1 1.6 -1.0
Employees 17,515 19,585 -11 -2,070

The output volume in the South + East segment grew by 5 % in the first half of 2015 to € 1,886.78 million. While Slovakia stood out with especially high growth, the other markets showed varied development.

The revenue was up as well, gaining 7 %. The earnings before interest and taxes (EBIT) moved from negative into positive territory to reach € 28.08 million after € -17.22 million in the comparison period last year. This development was due, among other things, to the agreement that was reached regarding a large construction project after its completion and to smaller improvements in several markets of the segment. In the second quarter, the revenue grew by 8 %. The EBIT made an upward jump of 48 %.

The order backlog fell by 17 % to € 4,140.60 million. Declines were registered in nearly all markets, with a particularly significant drop in countries like Hungary and Slovakia where several large orders had been acquired the previous year.

The number of employees fell significantly by 11 % to 17,515. Half of this decline is due to the reclassification of a portion of the railway construction activities from the South + East segment to North + West and because of the market conditions in the individual countries.

A word on the segment outlook: The output volume is expected to grow to € 4.5 billion in the 2015 financial year. The order books are adequately filled to reach this target – even if the currently low volume of new orders will require more conservative planning for the years to come.

In Austria, the largest market in this segment, the field of building construction recently began to exhibit an increased price pressure in the greater Vienna area as well. Against the backdrop of lower public investments, this business field had previously compensated the tense – in some regions dramatic – situation in transportation infrastructures for the group.

In 2015, Hungary has so far benefited from a good order backlog and from the good weather for transportation infrastructures at the start of the year. As further projects have not yet been tendered, the outlook for 2016 remains cautious. STRABAG is currently actively pursuing tenders above all in railway and track construction.

In Slovakia, the stable development in both building construction and road construction suggests an improvement of the climate in that country. In the Czech Republic, current tenders in building construction are focused mainly on projects in the field of education – such as schools and museums –, although competition is contributing to prices being calculated at the limit of profitability. The Czech transportation infrastructures segment is showing itself revitalised after a long down time, with new projects coming onto the market especially in railway construction.

The Swiss market is expected to remain modest at best. On the one hand, an increased number of infrastructure construction projects is coming onto the market after a very quiet period, especially in the greater Zurich area; on the other hand, STRABAG is seeing a declining building construction volume accompanied by falling prices. Switzerland's second-home purchase restrictions, which limit the percentage of holiday homes in any community to 20 %, led to a noticeable drop in the number of new building projects in tourism regions. Additionally, the Swiss National Bank in mid-January chose to unpeg its currency from the euro, resulting in a sudden revaluation of the franc. This should slow the Swiss economy in the short to medium term.

The Adriatic region continues to be characterised by strong price competition. An end to the tense situation is not in sight. In Croatia and Slovenia, the group is hoping to be awarded the tender for EU-financed infrastructure measures. While the transportation infrastructures business in Romania – though not improved – has at least stabilised, all activities were stopped in Moldova.

In Russia, the credit crunch has dampened the investment climate in the private sector. The public sector has also reduced its construction budgets significantly. For 2015 and the following years, therefore, a considerable economic downturn is forecast for the construction sector as well as the economy as a whole. Given a more positive market environment, STRABAG expects that implementation-ready projects would quickly lead to a higher demand in the Moscow housing market and in industrial construction for foreign companies – both important business fields for the group.

International + Special Divisions

€ mln. Q2/2015 Q2/2014
%

absolute
6M/2015 6M/2014
%

absolute
Output volume 822.67 680.96 21 141.71 1,506.16 1,275.96 18 230.20
Revenue 702.63 586.73 20 115.90 1,356.36 1,127.69 20 228.67
Order backlog 4,676.12 4,427.43 6 248.69
EBIT
EBIT margin
17.31 20.44 -15 -3.13 -2.38 -0.84 -183 -1.54
(% of revenue) 2.5 3.5 -0.2 -0.1
Employees 27,340 23,648 16 3,692

The output volume of the International + Special Divisions segment grew by 18 % to € 1,506.16 million in the first half of 2015. This development was due to the previous year's acquisition of DIW Group and to increases in the non-European markets, among other things.

The revenue was also considerably higher (+ 20 %). The earnings before interest and taxes (EBIT) showed hardly any movement, with € -2.38 million after € -0.84 million. The situation was similar in the second quarter: The revenue gained 20 %, while the EBIT sank slightly from € 20.44 million to € 17.31 million.

The order backlog climbed upward, gaining 6 % to € 4,676.12 million. Three regions stood out in particular: In Germany, the property and facility services business was influenced not only by DIW Group, but the existing group entities involved in this field of activity also grew their orders. In the Middle East, a whole series of midsized projects, e.g. in Oman, led to considerable growth in the region. The order backlog in the Americas, on the other hand, was down in response to the continuous working-off of a large-scale project in Chile.

The number of employees in the segment grew by 16 % to 27,340, with considerable changes in the individual regions. While the DIW acquisition resulted in a plus of several thousand employees in Germany and Austria, and the start of a project in Chile helped to grow the number of employees in the Americas by nearly 1,400 persons, a reduction of staff levels by more than 1,600 employees was registered in Africa and in the Middle East together.

A word on the segment outlook: It should be possible to generate a higher output volume of € 3.2 billion in the segment in the ongoing 2015 financial year, driven in part by the property and facility services business – thanks to the impact from the DIW acquisition – and by tunnelling. As edge-out competition continues to define the tunnelling business in the core markets of Austria, Germany, Switzerland and Italy, and a reversal of the trend remains elusive, STRABAG is focusing more on northern Europe and the non-European markets.

This necessary market expansion can also be observed for the concession business, the public-private partnerships. As the market for concession projects remains thin in Western Europe – with the exception of the Netherlands and Germany – and the political framework and competition present themselves as challenging in Eastern Europe, the group is focusing increasingly on the markets of South America. In the third quarter of 2015, for example, the company succeeded in entering the Colombian market via a € 900 million concession project.

Internationally the STRABAG Group also is a successful provider in specialty fields such as the tunnelling method of pipe jacking and test track construction. Among the non-European markets, STRABAG is focusing especially on the Middle East, above all Oman. In general, however, market development activities must be very selective, as the Middle East as well as Africa are characterised by strong competition.

As in past years, the real estate development business should make a positive contribution to both output volume and earnings. The demand for commercial and residential properties in the core market of Germany remains undiminished and has even grown significantly in a year-on-year

comparison. The weak euro has led investors from outside Europe to become increasingly involved in this business field. First steps have already been taken to develop projects in markets outside of Germany. Thanks to a promising project pipeline and the positive environment, STRABAG can look forward with optimism to the rest of 2015.

The construction materials business was supported by the incipient stabilisation of the construction economy in several Eastern European markets. This represents a significant improvement of the framework conditions compared to the previous year. The situation in Austria remains difficult, however.

CONSOLIDATED SEMI-ANNUAL FINANCIAL STATEMENTS STRABAG SE, VILLACH, AS AT 30 JUNE 2015

Consolidated income statement for 1.1.–30.6.2015

T€ 1.4.–30.6.2015 1.4.–30.6.2014 1.1.–30.6.2015 1.1.–30.6.2014
Revenue 3,461,510 3,189,984 5,745,469 5,353,944
Changes in inventories 11,102 20,862 -18,369 29,231
Own work capitalised 54 1,949 1,991 5,600
Other operating income 38,260 56,404 92,221 98,770
Construction materials, consumables and services used -2,322,803 -2,161,447 -3,852,253 -3,630,310
Employee benefits expenses -815,580 -772,775 -1,520,975 -1,455,804
Other operating expenses -216,606 -214,785 -362,373 -344,497
Share of profit or loss of associates 18,681 21,558 23,178 14,391
Net income from investments 15,295 8,585 14,935 9,101
EBITDA 189,913 150,335 123,824 80,426
Depreciation and amortisation expense -99,013 -94,585 -192,248 -188,411
EBIT 90,900 55,750 -68,424 -107,985
Interest and similar income 15,468 12,824 45,165 32,665
Interest expense and similar charges -22,474 -21,785 -44,472 -45,665
Net interest income -7,006 -8,961 693 -13,000
EBT 83,894 46,789 -67,731 -120,985
Income tax expense -17,910 -5,382 6,263 22,091
Net income 65,984 41,407 -61,468 -98,894
Attributable to: non-controlling interests 5,022 2,519 -5,962 -5,769
Attributable to: equity holders of the parent company 60,962 38,888 -55,506 -93,125
Earnings per share (€) 0.59 0.38 -0.54 -0.91

Statement of total comprehensive income for 1.1.–30.6.2015

T€ 1.4.–30.6.2015 1.4.–30.6.2014 1.1.–30.6.2015 1.1.–30.6.2014
Net income 65,984 41,407 -61,468 -98,894
Differences arising from currency translation -5,740 6,656 31,873 -3,217
Recycling of differences arising from currency translation -3,578 -4 -3,578 -2,434
Change in hedging reserves including interest rate swaps 13,653 -10,795 5,206 -27,191
Recycling of hedging reserves including interest rate swaps 5,864 5,802 13,032 11,304
Deferred taxes on neutral change in equity -3,823 983 -3,736 3,219
Other income from associates -3,664 -273 -115 -3,146
Total of items which are later recognised ("recycled")
in the income statement 2,712 2,369 42,682 -21,465
Other income from associates 0 -18 0 -35
Total of items which are not later recognised ("recycled")
in the income statement 0 -18 0 -35
Other income 2,712 2,351 42,682 -21,500
Total comprehensive income 68,696 43,758 -18,786 -120,394
Attributable to: non-controlling interests 3,841 1,974 -5,123 -7,790
Attributable to: equity holders of the parent company 64,855 41,784 -13,663 -112,604

Consolidated balance sheet as at 30 June 2015

T€ 30.6.2015 31.12.2014
Intangible assets 536,404 535,725
Property, plant and equipment 1,999,445 2,015,061
Investment property 17,026 33,773
Investments in associates 389,242 401,622
Other financial assets 217,721 232,644
Receivables from concession arrangements 724,657 728,790
Trade receivables 70,605 72,509
Income tax receivables 5,976 2,331
Other financial assets 208,864 205,883
Deferred taxes 310,179 278,123
Non-current assets 4,480,119 4,506,461
Inventories 922,948 849,400
Receivables from concession arrangements 27,720 26,654
Trade receivables 3,048,237 2,473,559
Non-financial assets 77,611 58,727
Income tax receivables 49,961 40,004
Other financial assets 389,457 396,713
Cash and cash equivalents 1,555,020 1,924,019
Current assets 6,070,954 5,769,076
Assets 10,551,073 10,275,537
Share capital 114,000 114,000
Capital reserves 2,311,384 2,311,384
Retained earnings and other reserves 394,341 459,328
Non-controlling interests 250,542 259,588
Total equity 3,070,267 3,144,300
Provisions 1,115,890 1,121,609
Financial liabilities1) 1,333,528 1,176,724
Trade payables 66,757 56,815
Non-financial liabilities 1,167 1,167
Other financial liabilities 12,545 13,072
Deferred taxes 36,066 39,317
Non-current liabilities 2,565,953 2,408,704
Provisions 689,118 667,361
Financial liabilities2) 338,519 433,198
Trade payables 3,102,585 2,729,754
Non-financial liabilities 345,218 422,419
Income tax liabilities 102,206 104,030
Other financial liabilities 337,207 365,771
Current liabilities 4,914,853 4,722,533
Equity and liabilities 10,551,073 10,275,537

Consolidated cash flow statement for 1.1.–30.6.2015

T€ 1.1.–30.6.2015 1.1.–30.6.2014
Net income -61,468 -98,894
Deferred taxes -37,946 -39,294
Non-cash effective results from consolidation -3,781 -3,136
Non-cash effective results from associates 10,985 10,498
Depreciations/write ups 206,164 189,756
Change in long-term provisions -9,993 3,251
Gains/losses on disposal of non-current assets -24,016 -15,369
Cash flow from earnings 79,945 46,812
Change in inventories -68,734 -13,040
Change in trade receivables, construction contracts and consortia -549,655 -209,789
Change in receivables from subsidiaries and receivables from participation companies -14,130 33,629
Change in other assets -11,031 -22,093
Change in trade payables, construction contracts and consortia 367,510 72,426
Change in liabilities from subsidiaries and liabilities from participation companies -13,633 4,388
Change in other liabilities -99,574 -85,911
Change in current provisions 19,235 -7,603
Cash flow from operating activities -290,067 -181,181
Purchase of financial assets -7,729 -4,210
Purchase of intangible assets, property, plant and equipment -160,487 -166,038
Gains/losses on disposal of non-current assets 24,016 15,369
Disposals of non-current assets (carrying value) 35,298 17,879
Change in other cash clearing receivables -974 3,143
Change in scope of consolidation 4,327 -3,326
Cash flow from investing activities -105,549 -137,183
Change in bank borrowings -37,825 -47,022
Change in bonds 100,000 -7,500
Change in liabilities from finance leases -401 -1,320
Change in other cash clearing liabilities 5,331 -7,574
Change in non-controlling interests due to acquisition -122 -5
Distribution and withdrawals from partnerships -55,125 -4,397
Cash flow from financing activities 11,858 -67,818
Net change in cash and cash equivalents -383,758 -386,182
Cash and cash equivalents at the beginning of the period 1,906,038 1,684,700
Change in cash and cash equivalents due to currency translation 14,759 -7,201
Change in restricted cash and cash equivalents 386 5,990
Cash and cash equivalents at the end of the period 1,537,425 1,297,307

Statement of changes in equity for 1.1.–30.6.2015

T€ Share
capital
Capital
reserves
Retained
earnings
Hedging
reserves
Foreign
currency
reserves
Group
equity
Non
controlling
interests
Total
equity
Balance as at 1.1.2015 114,000 2,311,384 659,165 -112,259 -87,578 2,884,712 259,588 3,144,300
Net income 0 0 -55,506 0 0 -55,506 -5,962 -61,468
Differences arising from
currency translation 0 0 0 0 27,712 27,712 583 28,295
Change in hedging reserves 0 0 0 269 0 269 7 276
Changes in investments in
associates 0 0 0 -380 268 -112 -3 -115
Change of interest rate swap 0 0 0 17,649 0 17,649 313 17,962
Deferred taxes on neutral
change in equity 0 0 0 -3,675 0 -3,675 -61 -3,736
Total comprehensive income 0 0 -55,506 13,863 27,980 -13,663 -5,123 -18,786
Transactions concerning
non-controlling interests 0 0 -24 0 0 -24 -98 -122
Distribution of dividends1) 0 0 -51,300 0 0 -51,300 -3,825 -55,125
Balance as at 30.6.2015 114,000 2,311,384 552,335 -98,396 -59,598 2,819,725 250,542 3,070,267

Statement of changes in equity for 1.1.–30.6.2014

T€ Share
capital
Capital
reserves
Retained
earnings
Hedging
reserves
Foreign
currency
reserves
Group
equity
Non
controlling
interests
Total
equity
Balance as at 1.1.2014 114,000 2,311,384 641,977 -96,686 -53,687 2,916,988 321,781 3,238,769
Net income 0 0 -93,125 0 0 -93,125 -5,769 -98,894
Differences arising from
currency translation 0 0 0 0 -3,972 -3,972 -1,679 -5,651
Change in hedging reserves 0 0 0 -244 0 -244 -7 -251
Changes in investments in
associates 0 0 -34 -465 -2,610 -3,109 -72 -3,181
Change of interest rate swap 0 0 0 -15,306 0 -15,306 -330 -15,636
Deferred taxes on neutral
change in equity 0 0 0 3,152 0 3,152 67 3,219
Total comprehensive income 0 0 -93,159 -12,863 -6,582 -112,604 -7,790 -120,394
Transactions concerning
non-controlling interests 0 0 5 0 0 5 -2,379 -2,374
Distribution of dividends 0 0 0 0 0 0 -4,397 -4,397
Balance as at 30.6.2014 114,000 2,311,384 548,823 -109,549 -60,269 2,804,389 307,215 3,111,604

NOTES TO THE CONSOLIDATED SEMI-ANNUAL FINANCIAL STATEMENTS

Basic principles

The consolidated semi-annual financial statements of STRABAG SE, based in Villach, Austria, with reporting date 30 June 2015, were drawn up under application of IAS 34 in accordance with the International Financial Reporting Standards (IFRS) – issued by the International Accounting Standards Board (IASB) in London and recognised by the European Union – including the interpretations of the International Financial Reporting Interpretations Committee (IFRIC) valid on the reporting date. Applied were exclusively those IASB standards and interpretations adopted by the European Commission before the reporting deadline and published in the Official Journal of the European Union.

In accordance with IAS 34, the consolidated semi-annual financial statements do not contain all the information and details required of annual financial statements. The semi-annual statements should therefore be read in conjunction with the annual financial statements of STRABAG SE, Villach, with reporting date 31 December 2014.

The consolidated financial statements of the Group as at and for the year ended 31 December 2014 are available at www.strabag.com.

Changes in accounting policies

The following amended or new accounting standards are effective for annual periods beginning on or after 1 January 2015.

Application for
financial years which
begin on or after
(according to IASB)
Application for
financial years which
begin on or after
(according to EU
endorsement)
IFRIC 21 Levies 1.1.2014 17.6.2014
Annual Improvements to IFRS 2011–2013 1.7.2014 1.1.2015

The first-time adoption of the aforementioned standards had only minor impact on the semi-annual consolidated financial statements as at 30 June 2015.

Accounting and valuation methods

With exception of the above mentioned changes in the accounting and valuation methods the accounting and valuation are fundamentally based on the same accounting principles and valuation methods underlying the consolidated annual financial statements with reporting date 31 December 2014.

Information regarding the accounting and valuation methods can be found in the Annual Report 2014.

Estimates

Estimates and assumptions which refer to the amount and recognition of the assets and liabilities accounted, the income and expenditure as well as the statement of contingent liabilities are necessary for the preparation of the consolidated financial statement according to IFRS. The actual results could deviate from these estimates.

Scope of consolidation

The consolidated semi-annual financial statements as at 30 June 2015 include STRABAG SE as well as all major domestic and foreign subsidiaries where STRABAG SE either directly or indirectly holds a majority of the voting rights. Major associated companies are reported in the balance sheet using the equity method (investments in associates).

The number of consolidated companies changed in the first six months of 2015 as follows:

Consolidation Equity method
Situation as at 31.12.2014 263 24
Exclusions in year under report -3 -1
Situation as at 30.6.2015 260 23

DISPOSALS FROM THE SCOPE OF CONSOLIDATION

As at 30 June 2015, the following companies were no longer included in the scope of consolidation:

Disposals from scope of consolidation

"Filmforum am Bahnhof" Errichtungs- und Betriebsgesellschaft m.b.H., Vienna Sale Kurfürstenanlage GmbH & Co. KG, Pullach i. Isartal Sale Möbius Construction Ukraine Ltd, Odessa Suspension of activities

at-equity

Oder Havel Mischwerke GmbH & Co. KG i.L., Berlin Fell below significant level

The deconsolidations resulted in disposals of assets in the amount of T€ 19,555 and of liabilities in the amount of T€ 14,944.

Methods of consolidation and currency translation

The same methods of consolidation and principles of currency translation were applied in drawing up the consolidated semiannual financial statements with reporting date 30 June 2015 as were used for the consolidated annual financial statements with reporting date 31 December 2014. Details regarding the methods of consolidation and principles of currency translation are available in the Annual Report 2014.

Notes on the items of the consolidated income statement

SEASONALITY

Due to snow, ice and other adverse weather conditions, revenue is usually lower in the winter months than in the summer. As the largest part of the costs involves fixed costs, noteworthy losses are posted in the first quarter every year. Starting with the second quarter, these losses are compensated for by rising contribution margins. The break-even point is usually not yet reached before the end of the second quarter. The largest portion of the earnings is expected in the third and fourth quarters. Seasonal fluctuations in the transportation infrastructures business are greater than they are in building construction & civil engineering.

The above-described, annually repeating business trend allows a year-on-year comparison of output volume, revenue and results of the respective quarters.

OTHER OPERATING INCOME

Interest income from concession contracts which is included in other operating income is represented as follows (also see notes on receivables from concession arrangements):

T€ 1.1.–30.6.2015 1.1.–30.6.2014
Interest income 32,681 33,420
Interest expense -14,786 -15,842
Net interest income 17,895 17,578

SHARE OF PROFIT OR LOSS OF ASSOCIATES

T€ 1.1.–30.6.2015 1.1.–30.6.2014
Income from investments in associates 5,492 3,056
Expenses arising from investments in associates -8,131 -4,684
Profits resulting from consortia 56,929 66,040
Losses resulting from consortia -31,112 -50,021
Share of profit or loss of associates 23,178 14,391

Notes on the items in the consolidated balance sheet

GOODWILL

Goodwill assets are subjected to an annual impairment test in accordance with IAS 36. The impairment test is carried out in the last two months of the financial year.

In 1–6/2015, no goodwill from capital consolidation was capitalised and no impairments were made.

INTANGIBLE ASSETS, PROPERTY, PLANT AND EQUIPMENT

In 1–6/2015, tangible and intangible assets in the amount of T€ 160,487 (1–6/2014: T€ 166,038) were acquired.

In the same period, tangible and intangible assets with a book value of T€ 24,337 (1–6/2014: T€ 10,180) were sold.

PURCHASE OBLIGATIONS

On the reporting date, there were T€ 55,218 (30 June 2014: T€ 85,033) in contractual commitments for the acquisition of property, plant and equipment which were not considered in the semi-annual financial statement.

RECEIVABLES FROM CONCESSION ARRANGEMENTS

STRABAG has a 100 % interest in the Hungarian M5 Motorway Concession Company, AKA Alföld Koncesszios Autopalya Zrt., Budapest (AKA).

In the concession agreement with the Hungarian state, AKA committed to develop, plan, finance and to build and operate the M5 motorway. The motorway itself is the property of the state; all vehicles and equipment necessary for motorway operation are to be transferred to the state free of charge following the end of the concession period.

In exchange, AKA will regularly receive an availability fee, independent of transit volume, from the Hungarian state for making the motorway available to the public. AKA bears the operator's risk of motorway closure and non-compliance of contractually agreed roadway criteria.

The route totals 156.5 km and was built in three phases. The concession period runs until 2031. A one-time extension for up to 17.5 years is possible.

All services provided under this concession arrangement are accounted for under the separate balance sheet item receivables from concession arrangements. The receivables are carried at the present value of the payment to be made by the state. The annual accumulation amount is recognised in other operating income.

A part of the availability fee consists of interest adjustment payments of the Hungarian state. As a result, the state bears the interest risk from the financing of AKA. These interest adjustment payments represent an embedded hedging transaction which is measured separately in accordance with IAS 39.11. Presentation is made as a cash flow hedge; as a result, changes in the fair value of the interest rate swap are recognised directly in equity.

The market value of the interest rate swap in the amount of T€ -53,679 (31 December 2014: T€ -63,677) is also recognised as long-term receivables from concession arrangements.

Recognisable receivables from concession arrangements are offset by non-recourse financing in the amount of T€ 513,620 (31 December 2014: T€ 538,608), classified either as a current or non-current liability depending on the term. The resulting interest expense is recognised in "Other operating income".

EQUITY

The fully paid in share capital amounts to € 114,000,000 and is divided into 113,999,997 no-par bearer shares and three registered shares.

The changes in equity are shown in the statement of changes in equity.

CONTINGENT LIABILITIES

The company has accepted the following guarantees:

T€ 30.6.2015 31.12.2014
Guarantees without financial guarantees 905 155

Furthermore, there is a derived credit risk arising from the financial guarantee contracts (guarantees issued) of T€ 50,249 (31 December 2014: T€ 42,209).

Other notes

NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT

The representation of the cash flow statement was made according to the indirect method and separated into the cash flows classified by operating, investing and financing activities. The cash and cash equivalents include exclusively cash on hand, bank deposits and short-term securities. Any effects of changes in consolidation were eliminated and represented in the cash flow from investing activities.

The cash and cash equivalents are composed as follows:

T€ 30.6.2015 30.6.2014
Securities 3,093 3,085
Cash on hand 5,087 4,176
Bank deposits 1,546,840 1,311,324
Restricted cash abroad -6,871 -10,686
Pledge of cash and cash equivalents -10,724 -10,592
Cash and cash equivalents 1,537,425 1,297,307

The cash flow from operating activities in the reporting year contains the following items:

T€ 1.1.–30.6.2015 1.1.–30.6.2014
Interest paid 41,115 40,864
Interest received 19,391 20,449
Taxes paid 46,298 39,749

SEGMENT REPORTING

The rules of IFRS 8 Operating Segments apply to the segment reporting. IFRS 8 prescribes defining the segments and reporting the earnings on the basis of the internal reporting (Management Approach).

Internal reporting is based on the dedicated Management Board areas North + West, South + East and International + Special Divisions, which represent also the segments. In addition, there are the central business units and central staff units, which handle services in the areas of accounting, group financing, technical development, machine management, quality management, logistics, legal affairs, contract management etc. These services are included in the segment Other.

The settlement between the single segments is made at arm's length prices.

Segment reporting for 1.4.–30.6.2015

T€ North + West South + East International
+ Special
Divisions
Other Reconciliation
to IFRS
financial
statements
Group
Output Volume 1,632,639 1,248,964 822,673 32,058 3,736,334
Revenue 1,535,691 1,215,522 702,638 7,659 0 3,461,510
Inter-segment revenue 28,849 126 75,261 225,166
EBIT -6,941 85,572 17,311 285 -5,327 90,900
Interest and similar income 0 0 0 15,468 0 15,468
Interest expense and similar charges 0 0 0 -22,474 0 -22,474
EBT -6,941 85,572 17,311 -6,721 -5,327 83,894

Segment reporting for 1.4.–30.6.2014

T€ North + West South + East International
+ Special
Divisions
Other Reconciliation
to IFRS
financial
statements
Group
Output Volume 1,550,896 1,174,198 680,959 29,755 3,435,808
Revenue 1,472,817 1,123,525 586,726 6,916 0 3,189,984
Inter-segment revenue 21,513 4,514 75,606 225,622
EBIT -22,276 57,680 20,449 698 -801 55,750
Interest and similar income 0 0 0 12,824 0 12,824
Interest expense and similar charges 0 0 0 -21,785 0 -21,785
EBT -22,276 57,680 20,449 -8,263 -801 46,789

Segment reporting for 1.1.–30.6.2015

T€ North + West South + East International
+ Special
Divisions
Other Reconciliation
to IFRS
financial
statements
Group
Output Volume 2,744,066 1,886,784 1,506,161 67,658 6,204,669
Revenue 2,568,946 1,807,579 1,356,363 12,581 0 5,745,469
Inter-segment revenue 51,187 7,727 96,437 372,140
EBIT -93,646 28,080 -2,384 15 -489 -68,424
Interest and similar income 0 0 0 45,165 0 45,165
Interest expense and similar charges 0 0 0 -44,472 0 -44,472
EBT -93,646 28,080 -2,384 708 -489 -67,731

Segment reporting for 1.1.–30.6.2014

T€ North + West South + East International
+ Special
Divisions
Other Reconciliation
to IFRS
financial
statements
Group
Output Volume 2,649,386 1,798,938 1,275,961 55,267 5,779,552
Revenue 2,520,538 1,694,278 1,127,689 11,439 0 5,353,944
Inter-segment revenue 45,427 6,785 98,994 375,819
EBIT -94,624 -17,219 -836 762 3,932 -107,985
Interest and similar income 0 0 0 32,665 0 32,665
Interest expense and similar charges 0 0 0 -45,665 0 -45,665
EBT -94,624 -17,219 -836 -12,238 3,932 -120,985

Reconciliation of the sum of the segment earnings to EBT according to IFRS financial statements

Income and expense in the internal reporting are shown essentially in accordance with IFRS. An exception is income taxes, including those applicable to deferred tax, which are not considered in the internal reporting.

The basis for the internal reporting is formed by all subsidiaries. In the IFRS financial statements, earnings from companies which were not fully consolidated or reported using the equity method are recognised in conformity with dividends, transfer of earnings and/or depreciation and amortisation. For this reason, the internal reporting does not conform with EBIT in regards to EBT in the consolidated financial statements in terms of the investment result.

Other minor differences result from entries in other consolidation.

Reconciliation of the internal reporting to IFRS financial statements is allocated as follows:

T€ 1.1.–30.6.2015 1.1.–30.6.2014
Net income from investments 753 4,335
Other consolidations -1,242 -403
Total -489 3,932

FINANCIAL INSTRUMENTS

With exception of the financial liabilities the book value of the financial instruments corresponds to the fair value. The fair value of the financial liabilities amounts to T€ -1,716,174 on 30 June 2015 (31 December 2014: T€ -1,663,428) compared to the recognised book value of T€ -1,672,048 (31 December 2014: T€ -1,609,922).

The fair values as at 30 June 2015 for financial instruments were measured as follows:

T€ Level 1 Level 2 Total
Assets
Securities 32,737 0 32,737
Cash and cash equivalents (securities) 3,093 0 3,093
Derivatives held for hedging purposes 0 -51,787 -51,787
Total 35,830 -51,787 -15,957
Liabilities
Derivatives held for hedging purposes 0 -6,736 -6,736
Total 0 -6,736 -6,736

The fair values as at 31 December 2014 for financial instruments were measured as follows:

T€ Level 1 Level 2 Total
Assets
Securities 36,546 0 36,546
Cash and cash equivalents (securities) 3,093 0 3,093
Derivatives held for hedging purposes 0 -63,425 -63,425
Total 39,639 -63,425 -23,786
Liabilities
Derivatives held for hedging purposes 0 -12,980 -12,980
Total 0 -12,980 -12,980

NOTES ON RELATED PARTIES

Notes on related parties may be found in the Annual Report 2014. Since 31 December 2014, there have been no significant changes in this area. Arm's-length business relations exist in transactions with related parties.

EVENTS AFTER THE BALANCE SHEET DATE

No material events occurred after the reporting for this semi-annual financial statements.

AUDIT WAIVER

The present semi-annual financial statements for STRABAG SE were neither audited nor subjected to an audit review.

STATEMENT OF ALL LEGAL REPRESENTATIVES

We confirm to the best of our knowledge that the condensed semi-annual financial statements as of 30 June 2015 give a true and fair view of the assets, liabilities, financial position and profit or loss of the group as required by the applicable accounting standards and that the group management report gives a true and fair view of the of important events that have occurred during the first six months of the financial year and their impact on the condensed semi-annual financial statements, of the principal risks and uncertainties for the remaining six months of the financial year and of the major related party transactions to be disclosed.

Villach, 31 August 2015

Management Board

Dr. Thomas Birtel CEO Responsibility Central Divisions and Central Staff Divisions (except BRVZ) as well as Division 3L RANC1)

Mag. Christian Harder CFO Responsibility Central Division BRVZ

Mag. Hannes Truntschnig Responsibility Segment International + Special Divisions

Dipl.-Ing. Dr. Peter Krammer Responsibility Segment North + West

Dipl.-Ing. Siegfried Wanker Responsibility Segment South + East (except Division 3L RANC)

FINANCIAL CALENDAR

Interim Report January–September 2015 30 November 2015
Disclosure 7:30 a.m.
Investor and analyst conference call 2:00 p.m.
Annual Report 2015 29 April 2016
Disclosure 7:30 a.m.
Press conference 10:00 a.m.
Investor and analyst conference call 2:00 p.m.
Notice of Annual General Meeting 13 May 2016
Shareholding confirmation record date 31 May 2016
Interim Report January–March 2016 31 May 2016
Disclosure 7:30 a.m.
Investor and analyst conference call 2:00 p.m.
Annual General Meeting 2016 10 June 2016
Start 10:00 a.m.
Location – to be announced
Ex-dividend date 17 June 2016
Record date 20 June 2016
Payment date for dividend 21 June 2016
Semi-Annual Report 2016 31 August 2016
Disclosure 7:30 a.m.
Investor and analyst conference call 2:00 p.m.
Interim Report January–September 2016 30 November 2016
Disclosure 7:30 a.m.

Investor and analyst conference call 2:00 p.m.

All times are CET/CEST. Please find the roadshow schedule on the website www.strabag.com > Investor Relations > Company Calendar.

CORPORATE BONDS

Stock Volume
exchange ISIN € mln. Coupon % Maturity
Vienna AT0000A0PHV9 175 4.75 2011–2018
Vienna AT0000A0V7D8 100 4.25 2012–2019
Vienna AT0000A109Z8 200 3.00 2013–2020
Vienna AT0000A1C741 200 1.625 2015–2022

CORPORATE CREDIT RATING

Standard & Poors BBB Outlook stable

CODES

Bloomberg: STR AV Reuters: STR.VI Vienna stock exchange: STR ISIN: AT000000STR1

30

For further questions, please contact our Investor Relations department:

STRABAG SE

  • Donau-City-Str. 9, 1220 Vienna/Austria
  • +43 800 880 890
  • @ [email protected]
  • www.strabag.com

This Semi-Annual Report is also available in German. In case of discrepancy the German version prevails.

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