Hochtief AG

Annual Report • Mar 11, 2025

GROUP REPORT 2024

INTEGRATED FINANCIAL AND SUSTAINABILITY REPORT

Group Report 2024

INTEGRATED ANNUAL FINANCIAL AND SUSTAINABILITY REPORT

This Group Report contains the financial and sustainability reporting of the HOCHTIEF Group for 2024. It highlights the close relationship between economic, environmental, and community aspects, together with their influence on the success of our business.

Information on this Report

The Group Report covers the period from January 1 to December 31, 2024 and follows on from the 2023 Group Report. We indicate explicitly in this report where data relates to a different reporting period, year-on-year comparisons are not possible without restriction, or limits of coverage are reached. The Group Report 2025 is scheduled to appear in February 2026.

The Consolidated Financial Statements are prepared in accordance with the requirements of International Financial Reporting Standards (IFRS® Accounting Standards) as adopted by the EU and with supplementary provisions of German commercial law to be observed under Section 315e (1) of the German Commercial Code (HGB). The report is published using the mandatory European Single Electronic Format (ESEF).

We have prepared a combined sustainability statement in accordance with Directive (EU) 2022/2464 of the European Parliament and of the Council of 14 December 2022 (Corporate Sustainability Reporting Directive/CSRD), Article 8 of Regulation (EU) 2020/852, and Sections 289b to 289e, 315b, and 315c of the German Commercial Code (HGB).

The HOCHTIEF Sustainability Plan 2025 and updated information on selected targets in it are presented under "Further information" in this report. This Group Report serves as our report on progress in implementing the UN Global Compact principles (www.unglobalcompact.org) and is published on the organization's websites. An overview of HOCHTIEF's contribution to the United Nations Sustainable Development Goals is likewise provided under "Further information."

References to external websites correspond to the retrieval date and status as of February 11, 2025. The information linked here is not part of the external audit of this Group Report.

Contents

4 The HOCHTIEF Group at a glance
5 HOCHTIEF is building the world of tomorrow
6 The HOCHTIEF Group: Key Figures
7 Commitment to fairness, sustainability, and innovation; awards

10 TO OUR SHAREHOLDERS

11 Report of the Supervisory Board
16 Message from the CEO
22 Executive Board
24 Explanatory report of the Executive Board
26 HOCHTIEF on the capital markets

30 COMBINED MANAGEMENT REPORT

32 Fiscal year at a glance
35 Business model and activities
35 Group structure and business activities, business model and management system

39 Strategy and value generation
39 Goals and strategies
48 Markets and operating environment
50 Order backlog development
53 Course of business
55 Financial review
66 HOCHTIEF Aktiengesellschaft (Holding
Company): Financial Review of Financial
Statements under German GAAP (HGB)
76 Segment reporting
76 - Turner
81 - CIMIC
87 - Engineering and Construction
92 - Abertis
94 Sustainability Statement
95 Brief introduction on sustainability at HOCHTIEF
96 General information
142 Environmental information
240 Disclosures pursuant to Article 8 of
Regulation (EU) 2020/852
250 Social information
303 Governance information
318 Entity-specific topic:
Innovation and digital transformation
329 Looking ahead
331 Opportunities and Risks Report
349 Report on relations with affiliated companies in accordance with Section 312 of the German Stock Corporations Act (AktG)

350 CONSOLIDATED FINANCIAL STATEMENTS
351 Consolidated statement of earnings
352 Consolidated statement of comprehensive income
353 Consolidated balance sheet
354 Consolidated statement of cash flows
355 Consolidated statement of changes in equity
356 Notes to the Consolidated
Financial Statements
356 Accounting policies
376 Explanatory notes to the consolidated statement of earnings
383 Explanatory notes to the consolidated balance sheet
413 Other disclosures
439 Post-balance-sheet events
456 Boards

460 INDEPENDENT AUDITOR'S REPORT

471 REPORT ON THE AUDIT OF THE SUSTAINABILITY STATEMENT

475 RESPONSIBILITY STATEMENTS

476 FURTHER INFORMATION

477 HOCHTIEF Sustainability Plan 2025
492 United Nations Sustainable Development Goals
494 Ten Principles of the UN Global Compact
495 Compensation report
511 Forward-looking statements
512 Five-year summary
514 Publication details and credits

The HOCHTIEF Group at a glance

HOCHTIEF's operating companies are active worldwide. The Group's primary business focus is infrastructure, including the growth markets of advanced technology, energy transition, and sustainable infrastructure. HOCHTIEF's financial reporting is presented across the four segments Turner, CIMIC, Engineering and Construction, and Abertis:

Turner

Turner is our advanced-tech building solutions company. The company provides building construction services and primarily operates on the basis of a construction management contracting model. Turner delivers services on building projects of all types and sizes throughout North America and around the world. As part of its strategy, Turner is successfully pursuing opportunities in advanced technology markets such as data centers and electric vehicle battery plants.

For more information, please see the Segment Reporting section.

CIMIC

CIMIC Group's operating units occupy leading positions in the industrial, energy, natural resources and civil infrastructure business. They cover the entire infrastructure life cycle from development and investment through construction to operations and maintenance, particularly in Australia and in the wider Asia-Pacific region.

For more information, please see the Segment Reporting section

Engineering and Construction

Engineering and Construction encompasses HOCHTIEF's activities in Europe plus Flatiron. Our European activities are delivering sustainable solutions in energy transition as well as digital, social, and transportation infrastructure. The focus is on Germany and neighboring countries. Flatiron, our civil engineering specialist in North America managed in this segment until the end of 2024, was combined with the ACS company Dragados in January 2025, in which HOCHTIEF now holds an at-equity accounted interest.

For more information, please see the Segment Reporting section.

Abertis

HOCHTIEF holds a 20\% stake in Abertis HoldCo, S.A., a leading international toll road operator. The company operates a total of some 8,000 kilometers of toll road in 15 countries across Europe, the Americas, and Asia.

For more information, please see the Segment Reporting section.

The HOCHTIEF Group: Key Figures

(EUR million)	2024	2023 (comparable)	2023 (reported)	Change yoy
Sales	33,301.3	30,228.9	27,756.0	20.0\%
Operational profit before tax/PBT	1,006.3	881.6	774.1	$30.3 \%$
Operational PBT margin (\%)	3.0	2.9	2.8	20 bsp
Operational net profit	625.0	532.5	553.1	$13.0 \%$
Operational earnings per share (EUR)	8.31	7.08	7.35	$13.1 \%$
EBITDA (adjusted)	1,881.5	1,762.8	1,230.2	$52.9 \%$
EBITDA (adjusted) margin (\%)	5.6	5.8	4.4	120 bps
EBIT (adjusted)	1,287.1	1,104.5	909.6	$41.5 \%$
EBIT (adjusted) margin (\%)	3.9	3.7	3.3	60 bps
Nominal profit before tax/PBT	1,003.8	822.5	715.0	$40.4 \%$
Nominal net profit	775.6	502.1	522.7	$48.4 \%$
Nominal earnings per share (EUR)	10.31	6.68	6.95	$48.3 \%$
Operating cash flow (OCF) ${ }^{1}$	2,129.4	2,029.5	1,518.8	610.6
Net operating capital expenditure and leases ${ }^{2}$	(603.7)	(673.1)	(356.8)	$-246.9$
Net operating cash flow ${ }^{3}$	1,525.7	1,356.4	1,162.0	363.7
Net cash (+)/net debt (-)	(119.9)	(24.2)	872.2	-992.1
New orders	41,799.4	38,441.4	36,676.9	$14.0 \%$
Work done	35,476.0	32,116.1	30,870.4	$10.5 \%$
Order backlog	67,584.2	59,840.1	55,325.4	$22.2 \%$
Employees (end of period)	56,875	41,575	41,575	$36.8 \%$

Note:
Operational profits are adjusted for non-operational effects.
Comparable 2023 earnings figures adjust for the EUR 21 million contribution of Ventia, which was sold in 2023, and apply full consolidation of Thes from May onwards, consistent with the treatment in 2024. Minority interest has been calculated on a 50\% ownership basis.

[^0]
[^0]: ${ }^{1}$ Cash flow is underlying, i. e. excl. one-off payments for CCPP in 2023 (EUR 184 million). 2023 comparable cash flow figures additionally exclude the Ventia dividend received (EUR 21 million) and reflect the full consolidation of Thes in the last eight months of 2023, consistent with the treatment in 2024.
${ }^{2}$ 2024: excluding investments in data centers etc. at CMIC

Clear commitment to fairness, sustainability, and innovation: Examples 2024

We take a constructive approach to the diverse challenges facing our company. In doing so, we consider engagement with a wide range of stakeholders to be an important requirement and motivation. We seek dialogue, starting with our own staff, as well as with partners and communities. Long-term memberships and voluntary commitments also reflect our responsibility. We are consciously involved in organizations that share our concerns regarding sustainability and climate protection. (For in-depth information on HOCHTIEF's memberships, please see www.hochtief.com/sustainability/commitments). Our company was once again rated positively in a number of established sustainability ratings in 2024 and included in renowned indexes.

COMMITMENTS (EXAMPLES)

Further commitments:

• ILO
• Leitbild für verantwortliches Handeln in der Wirtschaft (Code of Responsible Conduct in Business)

MEMBERSHIPS (EXAMPLES)

SUSTAINABILITY RATINGS/INDEXES (EXAMPLES 2024)

Awards for projects and services in the reporting year (examples)

Time and again, HOCHTIEF companies win awards in recognition of their excellent project work and the results of their efforts. Below are some examples from the 2024 reporting year:

Turner

Turner Construction

• "2024 Leadership Award" of the U.S. Green Building Council
• Award in Newsweek ranking as "Most reliabale company" and as "One of America's Greatest Workplaces for Parents and Families"
• Gold award in the "2024 Best Wellness Employer Award" of the organization "Wellness Workdays"
• "One of the Most Attractive Employers for Engineering Students" by Universum
• Listing in various rankings of Forbes Magazines in 2024: "America's Best Large Employers", "Great Employer for New Graduates", "Best Employers for Diversity", "America's Dream Employers", "America's Best Employers for Engineers", and "Best Employer for Women"
• "Safety Leader 2024" by ABC Metro Washington
• "Corporate Appreciation/Supplier Diversity Award" by the National Hispanic Business Group
• "Equity, Diversity and Inclusion Award 2024" by the Council on Tall Buildings and Urban Habitat
• "Best Office/Retail/Mixed-Use" for the office building "The Spiral" (New York) by Eningeering News-Record
• "Award of Merit" in the category "Higher Education/ Research" for the Des Moines University and Medical Center project, Iowa
• Award in the category "Best Airport/Transit" for the Orlando Internatioal Airport, Terminal C project by Engineering News-Record
• "New York Best Project" in the category "Interior/ Tenant Improvement and Excellence in Safety" for the Google, St. John's Terminal project, New York
• "Green Good Design Award" of the European Centre for Architecture Art Design and Urban Studies and the Chicago Athenaeum Museum for Architecture and Design for the Google Cambridge Headquarters project in Cambridge, Massachusetts
• "Concrete Innovations Award" of the National Ready Mixed Concrete Association for the New Canaan Library project, Connecticut
• "People's Choice Award" by Built Environment Plus for the One Boston Wharf project, Massachusetts

CIMIC

CPB Contractors

• "Banksia National Sustainability Award" in the "Placemaking" category for Parramatta Light Rail Stage 1
• TasWater Alliance (CPB and UGL) delivering the Bryn Estyn Water Treatment Plant Upgrade project was recognized with the "Government Partnerships Excellence Award" at the National Infrastructure Awards and won the "2024 Earth Awards" of the Civil Contractors Federation Tasmania
• Parramatta Light Rail Stage 1 was recognized as "Outstanding Transport Project" at the Western Sydney Leadership Dialogue's 2024 awards

UGL

• "Track-SAFE Foundation Award" for Canberra Metro Operations for community safety
  ("Keeping Communities Safe On and Around Rail")
• UGL delivering mechanical and electrical packages for the West Gate Tunnel project was recognized as "Host Employer of the Year" at the National Electrical and Communications Association (NECA) Education and Career Awards

Leighton Asia

• "Infrastructure Category Grand Prize" at the Hong Kong Institution of Engineers Grand Award 2024 for the Tseung Kwan O - Lam Tin Tunnel project
• "Innovation Breeder Award" at the first OSH \& Technology Awards of the OSH Innovation and Technology Committee and the Occupational Safety and Health Council in Hong Kong
• Leighton Asia and its businesses Wai Ming M\&E Limited and Pekko Engineers Limited were recognized with the Proactive Safety Contractor Award by the Hong Kong Construction Association
• "Hong Kong Most Innovative Knowledge Enterprise Award" at the Asian Knowledge and Innovation Forum 2024

Sedgman

• Sedgman was recognized with the "Coalition for Eco Efficient Comminution (CEEC) Medal" for Technical Research, by CEEC International, for its paper "Can We Shift to A New Paradigm of Flexibility in Mining and Processing to Build Mines Powered Exclusively by The Variable Input of Renewables?"

Thiess

• Winner in the category "Excellence in Diversity Pro grams and Performance" at the BHP Women in Mining Awards 2024 for the "Mount Arthur South Indigenous and Inclusive Employment" program
• "2024 Diversity \& Inclusion Award" of the Australian Resource and Energy Employer Association and "Aboriginal and Torres Strait Islander Empowerment Award 2024" of the Association of Mining and Exploration Companies for the "Connect, Yarn, Grow" initiative

Engineering and Construction

HOCHTIEF Infrastructure

• "Golden Permon" (category 3) award for HOCHTIEF CZ for companies with more than 500 employees for safety in tunneling
• "Top Employer" award for HOCHTIEF CZ for the construction sector in 2024
• BDA Architekturpreis Düsseldorf 2023 for office campus "Mizal" in Düsseldorf, Germany
• Award for HOCHITEF as "Healthy Employer" by the EUPD institute
• Winner in "Health, Safety and Well-being" at the Construction News Awards 2024 for the HOCHTIEF Murphy Joint Venture (project and company)
• Various awards for the "London Power Tunnels Phase 2" project of the HOCHTIEF-Murphy JV:
• "Utility Project of the Year" (British Construction Industry Awards)
• "Excellence in Mental Health and Wellbeing Award" (Inspiring Women in Construction and Engineering Awards)
  "Contractor of the Year", "Health, Safety and Wellbeing" (Construction News Awards)
• Silver Award at the International Corporate Sustainability Excellence Awards 2024 by The Green Organisation in the category "Building \& Construction"

HOCHTIEF PPP Solutions

• Award for EDGITAL at the "NRW Wirtschaft im Wandel" competition 2024
• Award for "Environmental sustainability and resilience" at the 7th International PPP-Forum of UNECE
• "Deal of the Year" Award for the "University of Staffordshire Student Village" project in UK
• Award for the consortium HOCHTIEF Ladepartner and EWE Go as "Best Infrastructure Deal in Europe" at the Project Finance Awards of EMEA Finance

Flatiron Construction

• "Gold" status for the Dallas Love Field Runway \& Taxiway C project by the American Concrete Pavement Association in the category Commercial Service Airports
• Wellsburg Bridge:
• Award at "America's Transportation Awards" in the category "Quality of Life/Community Development"
• "Award of Merit" at the 2024 Midatlantic Best Projects by ENR in the category "Highway/Bridge" - "Diamond Award 2024" of the American Council of Engineering Companies
• "Special Achievement Award 2024" for the Isabella Lake Dam project in Northern California by the National Academy of Construction

To our Shareholders

11 Report of the Supervisory Board
16 Message from the CEO
22 Executive Board
24 Explanatory report of the Executive Board
26 HOCHTIEF on the capital markets

Pedro López Jiménez, Chairman of the Supervisory Board

Report of the Supervisory Board Dear Shareholders,

Throughout 2024, the Supervisory Board performed all tasks required of it by law and the Company's Articles of Association. Those tasks notably included advising the Executive Board in its management of the Company and overseeing the Executive Board's activities. On a regular and timely basis, the Executive Board provided the Supervisory Board with comprehensive information, both in writing and verbally, on all key aspects of management.

Four ordinary meetings and one extraordinary meeting of the Supervisory Board were held in the reporting year. The four ordinary meetings were held in person, while the extraordinary meeting took place in hybrid form, with some Supervisory Board members attending in person and others by video conference. Resolutions of the Supervisory Board were adopted on the basis of comprehensive reports and proposed resolutions submitted by the Executive Board. Both in its plenary and in its committee meetings, the Supervisory Board had sufficient opportunity to consider proposals in detail. In relation to particularly significant or urgent projects and transactions, the Executive Board also informed the Supervisory Board outside of meetings. The Supervisory Board adopted all resolutions as required by law and the Articles of Association. In cases of urgency, resolutions were adopted by written procedure.

In 2024, during their term in office, all members of the Supervisory Board attended every Supervisory Board meeting as well as those of the Committees of which they were members. An overview of meeting attendance by each member at meetings of the Supervisory Board and its committees is provided in the table below. Both the shareholder representatives and the employee representatives met separately on a regular basis to prepare the Supervisory Board meetings. On individual topics, the Supervisory Board consulted without the attendance of the Executive Board.

Main points of discussion. The Supervisory Board dealt with a large number of topics in 2024. Notable topics of discussion at the five meetings were as follows:

At the financial statements meeting on February 22, 2024, the Supervisory Board primarily considered the Annual Financial Statements and Consolidated Financial Statements for 2023. The Supervisory Board likewise discussed the agenda and proposed resolutions for the April 2024 Annual General Meeting. A further topic was operational planning as well as both financial and balance sheet budgeting for the years 2024 to 2026. In this regard, the Executive Board explained the key planning assumptions and provided an overview of significant developments in the HOCHTIEF Group. The Supervisory Board appraised, noted, and concurred with the Executive Board's budget planning. Furthermore, the Supervisory Board dealt with the remuneration of the Executive Board. Re-

garding this matter, for instance, it discussed and adopted a resolution on the planned changes to the remuneration system for members of the Executive Board. The final item on the agenda was the approval of the acquisition by a subsidiary of CIMIC Group Ltd of a further 10\% of the shares in Thiess Group Holdings Pty. Ltd.

In the Supervisory Board meeting on April 25, 2024, the Executive Board reported on the performance of the business in the first quarter as well as on the upcoming Annual General Meeting. Additionally, the Supervisory Board was briefed on the reports previously submitted to the Audit/Sustainability Committee on internal audit and the Sustainability Plan 2025. Another item on the agenda was the appointment of the auditor for fiscal year 2024.

In the extraordinary meeting on July 24, 2024, the Supervisory Board discussed two corporate transactions and in each case gave the necessary approval. The first transaction related to the acquisition of all shares in Dornan Engineering Holdings Limited by a subsidiary of The Turner Corporation. Secondly, the Supervisory Board approved the combination of the civil engineering activities of HOCHTIEF (Flatiron) and Dragados, S.A. (Dragados US/Canada) in the United States and Canada.

At its meeting on September 10, 2024, the Supervisory Board considered the course of business in the first half of the year. In the Supervisory Board meeting, the Head of Corporate IT reported in detail on matters related to cyber security and artificial intelligence and answered questions from the Supervisory Board about these matters. Finally, the Supervisory Board also addressed the sustainability reporting guidelines under the CSRD (EU).

The Supervisory Board's final meeting in the reporting year was held on November 7, 2024. At that meeting, the Supervisory Board discussed the course of business in the first nine months of the year. It was also informed about the Audit/Sustainability Committee's consultations on the risk management system and the risk report. At the same meeting, the Supervisory Board once again addressed the implementation of the Sustainability Plan 2025. In addition, the Supervisory Board passed resolutions on the Compliance Declaration pursuant to Section 161 of the German Stock Corporations Act as well as on the Declaration on Corporate Governance, in which the Supervisory Board and the Executive Board jointly report on the Company's corporate governance.

The Supervisory Board has set up four committees, whose members are listed in the Boards section. These are tasked with preparing agenda items and resolutions for Supervisory Board meetings. In some instances, the Supervisory Board has also delegated decision-making authority on individual topics to the committees. The committee chairpersons regularly informed the Supervisory Board about the committees' consultations and decisions.

	Supervisory Board	Human Resources Committee	Audit/ Sustainability Committee	Nomination Committee
Pedro López Jiménez (Chairman)	$5 / 5$	$3 / 3$		$1 / 1$
Nicole Simons (Deputy Chainwoman)	$5 / 5$		$4 / 4$
Cristina Aldámiz-Echevarría González de Durana	$5 / 5$		$4 / 4$
Fritz Bank	$5 / 5$		$4 / 4$
Beate Bell	$5 / 5$	$3 / 3$
Christoph Breimann	$1 / 1$		$1 / 1$
José Luis del Valle Pérez	$5 / 5$	$3 / 3$	$4 / 4$	$1 / 1$
Ángel García Altozano	$5 / 5$		$4 / 4$
Dr. rer. pol. h. c. Francisco Javier García Sanz	$5 / 5$		$4 / 4$
Arno Gellweiler	$5 / 5$		$3 / 3$
Jörg Laue	$4 / 4$		$2 / 2$
Natalie Moser	$5 / 5$	$3 / 3$
Nikolaos Paraskevopoulos	$5 / 5$
Prof. Dr. Mirja Steinkamp	$5 / 5$		$4 / 4$
Klaus Stümper	$5 / 5$	$3 / 3$	$4 / 4$
Björn Willuwa	$5 / 5$	$2 / 2$
Christine Wolff	$5 / 5$	$3 / 3$		$1 / 1$

• Attendance = number of meetings attended by Supervisory Board member/total number of meetings during tenure

The Audit/Sustainability Committee met four times in 2024-three times in person and once in hybrid form, with some Committee members attending in person and others by video conference.

The Committee consulted in detail on the quarterly reports, the half-year financial statements, the Annual Financial Statements, and the Consolidated Financial Statements. In each instance, the Committee discussed the reports and financial statements with the Executive Board prior to their publication. The Audit/Sustainability Committee provided the Supervisory Board with a recommendation for the latter's proposal to the Annual General Meeting regarding the appointment of the auditors, and prepared the audit engagement letter for issuance, including the agreement on audit fees. Additionally, the Committee addressed the Group's risk management system, the internal control system in relation to financial reporting, and the internal audit report. The Head of Corporate Compliance and the Chief Compliance Officer reported to the Committee with an in-depth presentation on the development of the compliance organization, individual potential compliance cases, and measures taken in consequence. Furthermore, the Human Rights Officer provided the Committee with a report on his remit. The Committee also on several occasions addressed the Sustainability Plan 2025. Another regular item at the meetings held during the reporting year comprised the reports on major projects in the Turner, CIMIC, Engineering and Construction, and Abertis segments.

The Human Resources Committee held three meetings in the form of video conferences in 2024. In those meetings, the Committee considered details of Executive Board compensation and the structure of the compensation system for the Executive Board, and adopted the necessary resolutions. Additionally, the Human Resources Committee prepared personnel-related decisions for the Supervisory Board and made the requisite recommendations to the plenary meeting.

The Nomination Committee met once during the year in the form of a video conference and subsequently recommended to the Supervisory Board that Ms. Cristina Aldámiz-Echevarría González de Durana be nominated at the Annual General Meeting for election to the Supervisory Board.

The Mediation Committee pursuant to Section 27 (3) of the Codetermination Act (MitbestG) was not convened in 2024.

Conflicts of interest. Under the rules of the German Corporate Governance Code and the Supervisory Board's Code of Procedure, members of the Supervisory Board are required to disclose any conflicts of interest without delay. In order to avoid any concern of a conflict of interest in the vote on the combination of the civil engineering activities of HOCHTIEF (Flatiron) and Dragados, S.A. (Dragados US/Canada) in the United States and Canada, the following procedure was adopted at the extraordinary meeting of the Supervisory Board on July 24, 2024: Neither the Chairman of the Supervisory Board nor Ms. Aldámiz-Echevarría González de Durana, Mr. del Valle Pérez or Mr. García Altozano participated in the vote on this agenda item in order to avoid any concern that there may be a conflict of interest.

Annual Financial Statements 2024. The Annual Financial Statements prepared for HOCHTIEF Aktiengesellschaft by the Executive Board in accordance with the German Commercial Code (HGB), the Consolidated Financial Statements prepared in accordance with International Financial Reporting Standards (IFRS), and the combined HOCHTIEF Aktiengesellschaft and Group Management Report for 2024 have been audited and issued with an unqualified auditors' report. The audit was performed by Deloitte GmbH Wirtschaftsprüfungsgesellschaft, the auditors elected by the Annual General Meeting on April 25, 2024 and engaged by the Supervisory Board to perform the audit of the Annual Financial Statements and Consolidated Financial Statements. The bookkeeping system was included in the audit. Additionally, Deloitte GmbH Wirtschaftsprüfungsgesellschaft reviewed the sustainability reporting for 2024 in a separate assurance engagement in accordance with ISAE 3000 (Revised), providing limited assurance.

This was the second time the audit was performed by Deloitte GmbH Wirtschaftsprüfungsgesellschaft. The key audit partners responsible for carrying out the audit were exchanged in accordance with statutory requirements. For the reporting year, the key audit partners for the Consolidated Financial Statements and for the Annual Financial Statements were Mr. André Bedenbecker and Mr. Michael Pfeiffer.

The documents required for the audit, the Group Report, the proposal for the use of net profit, and the auditor's reports were sent to all members of the Supervisory Board in good time prior to the meeting of the Audit/Sustainability Committee and the Supervisory Board's financial statements meeting on February 19, 2025. In addition, the Executive Board provided verbal explanations at the same meeting. In that meeting, the key audit partners explained the main findings of the audit and were available to provide further information.

It was determined by the auditors that the Executive Board possesses a suitable early warning system for risks. The Audit/Sustainability Committee had scrutinized the statements and reports prior to the Supervisory Board's meeting and subsequently recommended that the Supervisory Board approve the financial statements. The Supervisory Board examined the Annual Financial Statements, the Consolidated Financial Statements, the combined Company and Group Management Report, the Sustainability Report and the non-financial reporting as well as the proposal for the use of net profit. It raised no objections.

Taking the Audit/Sustainability Committee's consultations into account, the Supervisory Board approved the results of the auditors' audit of the Annual Financial Statements and Consolidated Financial Statements. The Supervisory Board has approved and thus adopted the Annual Financial Statements and has approved the Consolidated Financial Statements. It concurs with the proposal for the use of net profit submitted by the Executive Board.

Report in accordance with Section 312 of the Stock Corporations Act (AktG). The report on relationships with affiliated companies prepared by the Executive Board in accordance with Section 312 of the German Stock Corporations Act (AktG) was audited by the auditors. This report, and likewise the related audit report, went out to all members of the Supervisory Board in good time ahead of the latter's financial statements meeting. The key audit partners took part in the Supervisory Board's discussions on these documents and reported on the main findings of the audit. In accordance with Section 312 AktG, the Supervisory Board examined the report and found it to be in order.

The auditors issued the auditors' report in accordance with Section 313 (3) AktG as follows:

"Based on our audit and assessment carried out in accordance with our duties and obligations as auditors, we confirm that

1. the statements of the report are factually accurate,
2. in the case of the legal transactions set forth in the report, the performance by the Company was not unreasonably high."

The Supervisory Board noted the auditors' audit findings with approval. On completion of its examination, the Supervisory Board raised no objections to the declaration issued by the Executive Board at the end of the report regarding relationships with affiliated companies.

Changes on the Supervisory Board. Mr. Christoph Breimann resigned from his position as member of the Supervisory Board with effect from March 31, 2024, when he left the Company. Mr. Jörg Laue was appointed as member of the Supervisory Board by decision of the Essen Local Court effective April 1, 2024.

The Supervisory Board thanked Mr. Breimann for his years of dedicated service and expert advice on the Supervisory Board.

Onboarding measures. In accordance with Recommendation D. 11 of the German Corporate Governance Code, the report of the Supervisory Board should include a report on measures taken to support new members of the Supervisory Board in their induction into office (onboarding measures). At this induction, Mr. Laue and Mr. Wißuwa were provided with the necessary key documents, including the Code of Procedure for the Supervisory Board and the Company's Articles of Association. In addition, they were familiarized with the organization and procedures of the Supervisory Board and its committees in personal meetings with the Company's management and had ample opportunity to ask questions.

The Supervisory Board expresses its thanks and appreciation to the Executive Board, the Group company management teams, and all employees for their work, dedication, and loyal contribution to the Group's success in 2024.

Essen, February 2025
On behalf of the Supervisory Board

Pedro López Jiménez
Chairman

Juan Santamaría Cases, Chairman of the Executive Board

I am delighted to present to you HOCHTIEF's annual report for 2024 which describes the Group's outstanding operational and financial performance as well as the significant progress in delivering on our corporate strategy.

HOCHTIEF has consolidated its leading positions in the growth markets it has identified as strategic. The Group is employing its geographic footprint to access this growth in all the regions we are present and we are expanding our presence in the value chains of these markets, which are being driven by unprecedented infrastructure investment requirements. We have achieved this by harnessing our existing experience and capabilities across the Group's activities and geographies, incorporating additional specialized engineering and systems know-how and leveraging our competitive strengths. And our strategic ambitions are supported by a solid balance sheet, a strong order book and a strongly cash-generative business.

During 2024 the Group achieved substantially higher sales and profits backed by another strong performance in cash flow generation. In parallel, HOCHTIEF was able to further strengthen its leading position in the strategic growth markets of advanced technology, energy transition and social infrastructure.

Group sales increased by over 20\% to EUR 33.3 billion in nominal terms accompanied by solid operating margins. Adjusting for the impact of acquisitions and divestments, sales growth was over 10\% on a comparable basis.

HOCHTIEF's operational net profit rose by 13\% to EUR 625 million in 2024, exceeding the top end of the guidance range (EUR 560-610 million) we provided at the beginning of the year, or $17 \%$ on a comparable basis. Nominal net profit of EUR 776 million included a net EUR 147 million one-off gain at our Australian company CIMIC and compares with EUR 523 million reported for 2023.

The quality of our profit performance is underlined by HOCHTIEF's outstanding cash generation during the year. Cash flow from operating activities in 2024 was EUR 611 million higher year on year at EUR 2.1 billion, an increase of EUR 100 million year on year on a comparable basis, and reflecting a high cash-conversion level.

HOCHTIEF completed several important strategic investments during the year. Adjusting for these transactions and their financial consolidation effects, the slightly net debt figure at the end of the period of EUR 120 million would be a EUR 1.6 billion net cash position, even after taking into account the EUR 331 million dividend paid out to shareholders in July 2024. The robust nature of our balance sheet is reflected by the investment grade rating which the Group is accorded by rating agency S\&P.

The Group's order book ended the year at EUR 67.6 billion and is up by EUR 7.8 billion, or 13\%, on a comparable basis versus December 2023. As a consequence of our strategy to further improve the Group's risk profile, lower-risk contracts, which incorporate enhanced risk-sharing mechanisms, now account for well over $85 \%$ of our order book. This proportion has risen substantially in recent years.

The ongoing increase in our backlog reflects the strong growth recorded in new orders which rose by $14 \%$ to EUR 41.8 billion equivalent to 1.2 x the work done during 2024. Around $50 \%$ of the new work we secured during the year relates to our growth markets, where we have consolidated our presence as a leader.

Let me reference a selection of some of our project announcements made during 2024. At the end of the year, Turner, along with two partners, was awarded a contract by Meta to build a mega data center campus worth more than USD 10 billion in Louisiana, one of the largest projects ever announced in the sector. In Asia-Pacific, Leighton Asia secured a EUR 2.6 billion hospital expansion project in Hong Kong. Pacific Partnerships acquired the development rights for the 700 MW Cobbora Solar Farm and associated large-scale battery energy storage system (BESS) in New South Wales, which will be one of the largest solar farms in Australia. Thiess was awarded an important three-year, full-service mining contract in Ontario, which will help Canada's nickel and copper industry to provide metals that are vital to North America's transition to clean energy. And in Europe, HOCHTIEF won a contract for a semiconductor-related construction facility using cleanroom technology.

Shareholder remuneration remains a priority for the Group. As a consequence of HOCHTIEF's very strong performance during 2024 and taking into account the solid growth prospects we envisage for 2025 and beyond, the proposed dividend for 2024 is EUR 5.23 per share. This represents a 19\% increase year on year compared with EUR 4.40 per share dividend for 2023 and is equivalent to a $65 \%$ payout on the operational net profit for the year.

The efficient allocation of capital plays a key role in the strategic development of our company in terms of transformational M\&A, bolt-on acquisitions, the deployment of equity capital for next generation infrastructure and PPP investments. During the year HOCHTIEF has executed several important M\&A transactions which support our strategic growth ambitions and further consolidate our strong competitive positions in specific market segments.

In July 2024, U.S.-based Group company Turner announced the approximately EUR 400 million strategic acquisition of Dornan Engineering, which was closed in January 2025. This rapidly growing advanced-tech engineering business, headquartered in Ireland, is a leading mechanical and electrical engineering company in Europe and has a more than EUR 1.6 billion order book. The Dornan acquisition is a major milestone which will enable the Group to accelerate its European expansion strategy with Turner offering full turnkey solutions to clients in the region where it has identified a potential project pipeline of over EUR 20 billion.

In July, HOCHTIEF and its main shareholder ACS agreed to integrate their North American businesses, Flatiron and Dragados, to create the second-largest civil engineering and construction player in the region. The new company has unparalleled civil infrastructure experience, credentials, geographical reach, and technical capabilities for large infrastructure projects. The combined resources will support further growth in a rapidly expanding North American civil market. This value-accretive transaction, which was closed in January 2025, results in HOCHTIEF holding a $38.2 \%$ equity-consolidated stake in the new business.

During the second quarter of 2024 another important step in our Group strategy was taken when CIMIC announced it had entered into an agreement to acquire an additional 10\% equity interest in Thiess. The acquisition, for a purchase price of EUR 195 million, increases the Group's ownership of the natural resources company to $60 \%$.

And at the beginning of the year, the shareholders of Abertis contributed EUR 1.3 billion in equity to support the financing of the transactions announced in 2023 and the company's growth strategy, with HOCHTIEF subscribing its EUR 260 million share for its 20\% stake.

Infrastructure sector investment is undergoing an unprecedented, and multi-year transformation, driven by digitalization, demographics, decarbonization and deglobalization. HOCHTIEF is very well placed as a leading infrastructure and services provider to meet the rising demand that is being driven by these megatrends. In addition, we are further expanding our presence in the value chain to allow us to deliver attractive solutions and create value by applying our construction and engineering know-how, our expertise as an equity investor as well as from an operations and maintenance perspective.

The Group has identified the data center market as a very attractive opportunity given the strong growth which is anticipated to be sustained for several years driven by the rapid expansion of cloud computing and artificial intelligence (AI). We have evolved HOCHTIEF's strategic position in the sector over several years. Beginning with smaller facilities, we have developed our experience and capabilities in North America to enable us to deliver mega-data center projects for the leading global hyperscalers such as the Louisiana project I mention above. At the same time, we are leveraging this know-how, our geographic footprint and our strong client relationships to enable us to address the strong demand in the Asia-Pacific region and Europe. As a result HOCHTIEF's data center order backlog at the end of 2024 stood at around EUR 8 billion (over 10\% of the Group total) more than double the level of 2022, and is set to grow further in the future.

Furthermore, we are now investing substantial amounts of equity in selected data center projects thus providing the Group an additional opportunity to create significant value in this sector going forward, in an integrated and coordinated manner. In 2024 we acquired a site in Australia to develop a data center with 200 MW capacity and in Germany, we have expanded the framework agreement with our partner to 15 sustainable edge data centers, with further potential extensions in Europe under discussion, to support the implementation of artificial intelligence.

The strategic shift from building, to also owning and operating data centers is consistent with the Group's strong track record in PPPs. Overall at the end of 2024 we had committed equity investments of EUR 800 million, of which about EUR 400 million are in strategic growth markets including data centers, solar farms, battery energy storage systems, electric vehicle (EV) charging networks and critical metals.

The rapid pace of technological innovation means Al models are expected to continue evolving and improving. This in turn is expected to drive greater adoption levels, ultimately increasing demand for Al infrastructure and solutions. The necessary infrastructure to support rising capacity requirements reinforces the importance of our position as a leader in scalable and adaptable data centers.

HOCHTIEF has also delivered important projects in other key sectors including transport infrastructure, healthcare, education, airports, defense, and sports stadiums where demand continues to show strong structural growth driven by the megatrends described earlier and other related factors such as increasing urbanization.

In the U.S. a Turner joint venture is leading the USD 2.6 billion transformation at the San Francisco International Airport. Turner also maintains a leading position in sports stadiums and during the third quarter celebrated the opening of the USD 2 billion Intuit Dome with its joint venture partner and the Los Angeles Clippers. In defense, CPB was awarded a AUD 370 million Royal Australian Air Force Base project in Queensland with works including the upgrade or rebuild of infrastructure facilities.

In Europe, the EUR 1 billion Dutch A15 PPP highway project, where a HOCHTIEF consortium is preferred bidder, got the go-ahead from local authorities. In the UK, HOCHTIEF PPP Solutions was awarded a multi-million euro PPP contract to design, build, finance and operate a new student village for Staffordshire University as well as a transport infrastructure operations and maintenance contract for a 12-year period in Scotland worth at least EUR 190 million. Elsewhere, Abertis won an international tender in Chile for the expansion of a strategic transport link to the capital with a 30-year concession period.

HOCHTIEF is leveraging our project delivery track-record, engineering experience and market presence to position ourselves for potential major growth opportunities which are emerging globally. Specifically, we have been developing our technical and engineering know-how in sectors which are critical for the global energy transition including lithium, EV charging and clean energies as well as in other areas such as semiconductors. These optionalities enable HOCHTIEF to potentially benefit from additional further significant longer-term growth opportunities.

We continue to focus on creating sustainable value for all stakeholders.

Environmental, social and governance, ESG, remains a strategic priority for HOCHTIEF. In accordance with the Sustainability Plan 2025, HOCHTIEF aims for overall climate neutrality (Net Zero) by 2045. For Scope 1 and Scope 2 emissions, we aim to be climate-neutral by 2038, and accordingly have defined additional near-term reduction targets through 2030. In the last two years, international working groups have continued to develop and implement measures to advance on short- and long-term ESG targets. The Group has developed a decarbonization roadmap (net zero pathway) and we are on track to reach our targets. Our annual report will give you further insight into the progress we have made during 2024.

HOCHTIEF has been listed in the Dow Jones Sustainability Index for 19 consecutive years and has achieved top positions in the ranking compiled by S\&P Global. In addition, the MSCl ESG rating for the Group stands at AAA, making it the highest rated amongst its peers.

The Group delivered a very strong performance in 2024 driven by the global network of professionals we have throughout HOCHTIEF, the successful execution of our corporate strategy to expand our presence in growth markets and the support of our clients, subcontractors and suppliers.

HOCHTIEF's positive momentum is a consequence of the accumulation of effort and resources applied in a consistent direction and is underpinned by our increasing adoption and development of digital and artificial intelligence tools. This has been made possible by the commitment and determination of our teams to achieve our goals whilst at the same time positioning HOCHTIEF for the future by focusing on the commercial opportunities, innovation and developing in-house know-how which is being increasingly shared across the Group. Together, we look to the future with confidence and dynamism.

Our guidance for 2025 is to achieve an operational net profit of between EUR 680-730 million which represents an increase of up to $17 \%$ compared with last year, subject to market conditions.

Yours,

Juan Santamaría Cases
Chairman of the Executive Board

Executive Board

Juan Santamaría Cases, Chairman of the Executive Board

Born in 1978, Juan Santamaría Cases leads the company since July 2022. Juan Santamaría Cases has been a member of the ACS Group for more than 20 years.

He began his career at ACS in 2002 after graduating as a Civil Engineer from the Universidad Politécnica de Madrid. Between 2002 and 2006, he held different positions at Iridium and Dragados as Engineer and Project Director. Following the function of CEO at ACS Infrastructure in the U.S. and Canada from 2006 to 2013, he was President and CEO at Iridium between 2013 and 2015. From August 2015 to January 2017, he worked as Executive Manager for CPB in Australia and, in 2017, he was appointed CEO of the Industrial and Services Company UGL. From September 2017 to February 2020, he was Managing Director of CPB Contractors and Leighton, with operations in Australia, New Zealand and Asia.

He served as CEO of CIMIC from February 2020 until May 2022 and as Executive Chairman of CIMIC since November 2020.

He was appointed CEO at ACS Group in May 2022, CEO of HOCHTIEF Aktiengesellschaft in July 2022 and Chairman of Abertis in March 2023.

Ángel Muriel Bernal

Born in 1967, Ángel Muriel Bernal has been a member of the Executive Board and Chief Operating Officer (COO) of HOCHTIEF Aktiengesellschaft in Essen since April 2023. He is responsible for the development of new business segments, the bidding and contract strategy as well as risk management, and is in charge of the Corporate Department Development and Mergers and Acquisition.

He has a PhD in Applied Economy from Malaga University.
Ángel Muriel joined the ACS Group in 1995 working on Corporate level and participating in different projects of Infrastructure and telecom. From 2002 to 2006, he was the CFO of Iridium in Chile, from 2006 until 2011 he worked as the CFO of ACS Infrastructure Development Inc. in the U.S. In 2011, Ángel Muriel was appointed CFO of Iridium Concesiones de Infraestructuras, S.A., in Madrid, Spain.

In 2012, he was appointed Head of Corporate Mergers and Acquisitions at HOCHTIEF, in Essen, Germany. In April 2014, Ángel Muriel joined the CIMIC Group Limited, in Sydney, Australia, as Chief Development Officer and Managing Director of Pacific Partnerships. He was also a Member of the Board of Directors of various companies of the CIMIC Group. In addition to these roles, from June 2015 to May 2017, Ángel Muriel was CIMIC Group's Chief Financial Officer. He was the Team Manager of the takeover bid, of Abertis, and is a Member of Abertis HoldCo Board of Directors.

Since May 2017, Ángel Muriel has been Deputy General Manager to the CEO at the ACS Group Headquarters in Madrid, Spain.

Peter Sassenfeld, Chief Financial Officer

Born in 1966, Peter Sassenfeld has been a member of the Executive Board of HOCHTIEF Aktiengesellschaft in Essen since November 2011. As Chief Financial Officer (CFO) of the company, he is responsible for the corporate departments Controlling and Risk Management, Finance, Capital Markets Strategy/Investor Relations, Accounting and Tax, and Insurance.

Peter Sassenfeld studied business administration at Saarland University. After his studies, he first performed various management functions at Mannesmann in Germany and abroad. Later he managed the worldwide mergers and acquisitions activities at the Bayer Group in Leverkusen. From October 2005, Sassenfeld worked for the Krauss-Maffei Group in Munich and from February 2007 as CFO of KraussMaffei AG. In May 2010, he took over as CFO of Ferrostaal AG in Essen. From July 2015 to October 2023, he was also CFO of HOCHTIEF Solutions AG.

Martina Steffen

Born in 1970, Martina Steffen has been a member of the Executive Board and Chief Human Resources Officer of HOCHTIEF Aktiengesellschaft in Essen since September 2021. She is responsible for Human Resources at the Group and as Chief Sustainability Officer for ESG matters, as well as for the Corporate Department IT. She is also in charge of the field of data protection.

Since 1989, Martina Steffen has worked in different positions for HOCHTIEF. Since August 2009, she has managed the Corporate Department Human Resources for HOCHTIEF Aktiengesellschaft and in May 2021 she also took on the task of Chief Sustainability Officer for the HOCHTIEF Group and since October 2021 also was a member of the Executive Board and Labor Director of HOCHTIEF Solutions AG. Before that, she worked in various functions in IT and Human Resources at the HOCHTIEF Group. Martina Steffen is a qualified data processing expert and has a degree in Economics and IT (Administration and Economic Academy-VWA).

Explanatory report by the Executive Board of HOCHTIEF Aktiengesellschaft pursuant to Section 176 (1) of the German Stock Corporations Act (AktG) on the disclosures pursuant to Sections 289a and 315a of the German Commercial Code (HGB) as of the balance sheet date December 31, 2024.

The Executive Board provides the following explanatory notes on disclosures provided in the combined Group and HOCHTIEF Aktiengesellschaft Management Report and required under Sections 289a and 315a of the German Commercial Code:

Our disclosures relate to the situation in fiscal year 2024 up to the time the combined Management Report was prepared. The disclosures consist of information on the Company's subscribed capital, on restrictions on the transfer of securities, direct and indirect holdings exceeding 10\% of voting rights, statutory rules, and rules contained in the Company's Articles of Association about the appointment and replacement of Executive Board members as well as about amendment of the Articles of Association, powers of the Company's Executive Board including, in particular, any powers in relation to the issuing or buying back of shares, and any significant agreements to which the Company is a party that are conditional upon a change of control of the Company following a takeover bid.

The structure of the Company's subscribed capital and rights attaching to no-par-value bearer shares in the Company are determined, among other things, by the Company's Articles of Association. The shareholding held by ACS, Actividades de Construcción y Servicios, S.A., is known from the published voting rights notification of November 13, 2023.

Restrictions on voting rights attaching to those shares may result from the provisions of the German Stock Corporations Act (AktG). For example, there are circumstances in which shareholders are prohibited from voting (Section 136 AktG). The Company also has no voting rights with regard to treasury stock (Section 71b AktG). With one exception, no agreements are known to us that may result in restrictions on voting rights or on the transfer of securities. Insofar as the Company has transferred securities to Executive Board members for the purpose of settling their variable compensation entitlements, these securities are subject to a two-year or three-year lock-up period. The information in accordance with Section 289a Sentence 1 No. 3 and Section 315a Sentence 1 No. 3 of the German Commercial Code on direct or indirect shareholdings exceeding 10\% of voting rights is included in the Notes to the (Consolidated) Financial Statements. The information provided on appointment and replacement of Executive Board members conforms to the substance of the German Stock Corporations Act and the Company's Articles of Association, as does the information on amendment of the Articles of Association.

The Executive Board's powers in relation to the issuing or buying back of shares are based in their entirety on authorizations granted by resolution of the General Shareholders' Meeting in 2022 and 2023 relating to conditional and authorized capital as well as other matters, including the authorization to repurchase and utilize the Company's own shares. The information provided on these powers conforms to the authorizations granted by resolution of the General Shareholders' Meeting.

Among others, HOCHTIEF Aktiengesellschaft has entered into loan and financing agreements that comprise change-of-control clauses with right of termination. If the lenders would exercise their right of termination in case of such change of control, the corresponding borrowing needs of HOCHTIEF Aktiengesellschaft and the HOCHTIEF Group would have to be met by other means.

By way of an additional disclosure for informational purposes, in supplement to the mandatory disclosures under the stated sections of the German Commercial Code, other Group companies are party to further agreements that are conditional upon a change of control. The following is an abridged and non-exhaustive presentation:

In the PPP segment, project contracts frequently accord the client substantial rights that make it difficult to effect a change of ownership structure in the project company.

The remaining disclosures required under Sections 289a and 315a of the German Commercial Code relate to circumstances that do not apply to HOCHTIEF Aktiengesellschaft. We do not therefore cover these points in detail in the combined Group and HOCHTIEF Aktiengesellschaft Management Report. There are no limitations on voting rights, no restrictions on the exercise of voting rights attached to employee shares, no agreements between the Company and members of the Executive Board or the Company's employees providing for compensation in the event of a takeover bid, and no securities carrying special rights with regard to control of the Company.

Essen, February 2025

Juan Santamaría Cases

Ángel Muriel Bernal

Peter Sassenfeld

Martina Steffen

HOCHTIEF on the capital markets

European stock market development

European stock markets had a positive performance during 2024 driven especially by strength during the first half of the year. The key contributing factors were a more resilient than expected global economy, anticipated rate cuts by the relevant central banks as well as strong corporate earnings and the expected benefits from a significant roll-out of artificial intelligence applications.

The second half of the year saw a consolidation of European stock market performance as underperformance of the European economy (especially compared to the U.S.), a less swift global interest rate cut cycle and heightened political uncertainty weighed on performance. Noteworthy from a HOCHTIEF and sector perspective was a particular underperformance in German small and mid caps as well as French stocks where political uncertainty, weak economic indicators and tax rises weighed on stocks during the second half of the year.

The DAX index increased by $19 \%$ for the whole of 2024 ( $+20 \%$ in 2023), the MDAX decreased by $6 \%$ ( $+8 \%$ in 2023) and the European sector index STOXX Europe 600 Construction and Materials rose by 5\% (+31\% in 2023).

Performance of HOCHTIEF shares

HOCHTIEF shares showed a very strong performance in 2024 with the share price ending the year 29\% higher compared with the end of 2023 at EUR 129.70. Including the dividend of EUR 4.40 per share paid out during 2024, the total shareholder return stood at $34 \%$ for 2024. As a consequence, HOCHTIEF shares delivered a sizable outperformance compared to MDAX index, but also compared to the German large cap benchmark DAX index as well as the sector index STOXX Europe 600 Construction and Materials. This outperformance was especially visible post the publication of full-year results for 2023 in mid-February and supported by positive news flow and broker commentary around the Group's attractive data center and U.S. exposure.

Performance of HOCHTIEF share versus benchmark stock indices in 2024

Total shareholder return by quarter in percent (2024)

HOCHTIEF stock: Key figures

		2024	2023
Number of shares in issue ${ }^{1}$	million	77.7	77.7
Average number of shares in circulation (excluding treasury shares)	million	75.2	75.2
Market capitalization (excluding treasury shares) ${ }^{1}$	EUR million	9,757	7,544
High	EUR	131.20	104.60
Low	EUR	97.20	53.98
Close	EUR	129.70	100.30
Shares traded (average per day on Xetra)		50,007	93,084
Shares traded (average per day on Xetra)	EUR million	5.4	7.7
Dividend per share	EUR	$5.23^{2}$	4.40
Earnings per share (operational)	EUR	8.31	7.35
Earnings per share (nominal)	EUR	10.31	6.95

${ }^{1}$ As of year-end
${ }^{2}$ Proposed dividend

Shareholder remuneration

The proposed dividend for FY 2024 of EUR 5.23 per share represents a 65\% payout on the operational net profit for the year. Looking forward, shareholder remuneration will remain a management priority.

Dividend per share (EUR)

Shareholder structure

HOCHTIEF's total shares in issue remained unchanged at 77.7 million shares during 2024. On November 14, 2023, our main shareholder ACS announced in its latest public voting rights announcement that its stake has increased to $75.7 \%$ or $78.2 \%$ adjusted for treasury stock. ACS informed HOCHTIEF on November 11, 2024 that the shareholding in HOCHTIEF had been increased to more than 80\% (adjusted for treasury stock). HOCHTIEF holds $3.2 \%$ or $2,480,121$ treasury shares at year-end (2,497,884 at the end of 2023).

Analysts

The analyst community continues to recognize HOCHTIEF's strong and diversified market position and the hightech infrastructure growth opportunities the Group is pursuing in developed markets. At the end of the year, the average analyst recommendation for HOCHTIEF shares improved compared to 2023 with a higher proportion of positive ratings in spite of the strong performance of the shares during that period. This was driven by a strong delivery on the company's strategy, a positive outlook for 2024 and beyond and supported by the refocusing of segmental reporting on the main operating companies. The analysts' average target price rose substantially by $29 \%$ from EUR 96 to EUR 124 per share during the year.

Latest ratings and the average target price of our analysts are available on our website (www.hochtief.com/investor-relations/hochtief-share).

Analysts' rating distribution (end of year, \%)

Average analysts' target price (end of year, EUR)

Capital markets communication

Transparent and timely communication with the capital market is a key priority for HOCHTIEF management and our Capital Markets Strategy/Investor Relations department. During 2024, we participated in a series of virtual and in-person international investor conferences, conducted selective roadshows and regularly presented our quarterly results to the market via conference calls. Our Investor Relations website features all published results documents as well as other relevant information for shareholders.

HOCHTIEF recognized for strong sustainability performance

For the 19th year in a row, the Group has been included in the renowned Dow Jones Sustainability Indices of S\&P Global. HOCHTIEF is included in the Dow Jones Sustainability World and Dow Jones Sustainability Europe Index. The company has achieved top rankings in all dimensions of sustainability-environmental, social and governance and economic. The company has further improved in important environmental and social topics, such as climate strategy and biodiversity, as well as occupational safety and human rights.

In 2024, HOCHTIEF has received the "AAA" rating from MSCI for the second time in a row. This is the highest possible score and is awarded to companies that demonstrate exemplary management of ESG. In 2024, HOCHTIEF was once again recognized for its contribution to climate protection, achieving an "A-" score in the CDP climate ranking and thus leadership status for Climate Change, as well as "B" scores in the Forest and Water categories.. In addition, HOCHTIEF was successfully listed in the reporting year in the following ratings or evaluated positively for its ESG performance: Sustainalytics (ESG Risk Rating of 27.3), FTSE4Good ESG rating (Score 3.4), and EcoVadis (gold medal).

For further information, please see www.hochtief.com/investor-relations

Combined Management Report

32 Fiscal year at a glance
35 Business model and activities
35 Group structure and business activities, business model and management system
39 Strategy and value generation
39 Goals and strategies
48 Markets and operating environment
50 Order backlog development
53 Course of business
55 Financial review
66 HOCHTIEF Aktiengesellschaft (Holding
Company): Financial Review of Financial
Statements under German GAAP (HGB)
69 - Executive Board proposal for the use of net profit
69 - Outlook for HOCHTIEF Aktiengesellschaft (holding company) under German GAAP (HGB)
69 - Disclosures pursuant to Sections 289, 289a, and 315a of the German Commercial Code

76 Segment reporting
76 - Turner
81 - CIMIC
87 - Engineering and Construction
92 - Abertis
94 Sustainability Statement
95 Brief introduction on sustainability at HOCHTIEF
96 General information
142 Environmental information
Disclosures pursuant to Article 8 of
240 Regulation (EU) 2020/852
250 Social information
303 Governance information
318 Entity-specific topic:
Innovation and digital transformation
329 Looking ahead
331 Opportunities and Risks Report
349 Report on relations with affiliated companies in accordance with Section 312 of the German Stock Corporations Act (AktG)

Combined Management Report

The Management Report for HOCHTIEF Aktiengesellschaft is combined with the Group Management Report. All information in this combined Management Report relates to HOCHTIEF Aktiengesellschaft and the HOCHTIEF Group except as otherwise indicated. An analysis of the business performance and situation of HOCHTIEF Aktiengesellschaft (Holding Company) on the basis of its annual financial statements under German GAAP is provided under "HOCHTIEF Aktiengesellschaft (Holding Company): Financial Review of Financial Statements under German GAAP (HGB)".

The combined Management Report contains a reference to the combined Declaration on Corporate Governance pursuant to Sections 289f and 315d HGB under "Group structure and business activities, business model, and management system".

Non-financial reporting is provided in a sustainability statement, which is contained in the combined Management Report of the Group Report. The non-financial reporting is not part of the statutory audit of the annual and consolidated financial statements under Section 317 HGB.

The structure of the Management Report has changed relative to the 2023 Group Report due to the non-financial reporting in the sustainability statement. Disclosures on non-financial topics previously presented under "Compliance," "Employees," "Innovation and digital development," and "Procurement" are now presented in the sustainability statement as follows:

• Compliance: Business conduct;
• Employees: Own workforce/Workers in the value chain;
• Innovation and digital development: Innovation and digital transformation;
• Procurement: Business conduct

You will also find information in the sustainability statement on environmental and social topics that were not previously included in the combined Management Report.

2024 at a glance Highlights

Nominal net profit

(EUR million)

775.6

up $48 \%$ year on year

Employees

(total workforce)

56,875

2023: 41,575

Operating cash flow

(EUR billion)

2.1

up EUR 611 million year on year

New orders
(EUR billion)

41.8

up $14 \%$ year on year

Waste recycling rate

(in \%)
83
2019: 78

2024 at a glance Milestones

This page is not part of the statutory audit of the annual financial statements and consolidated financial statements in accordance with Section 317 of the German Commercial Code.

Group Structure and Business Activities, Business Model and Management System

Group Structure 2024

Group structure 2024

In 2024, HOCHTIEF Aktiengesellschaft introduced a new organizational structure based on the management model, which brings greater transparency to the individual segments and is in line with our strategic and operational priorities. The HOCHTIEF Americas, HOCHTIEF Asia Pacific and HOCHTIEF Europe divisions have been replaced by the Turner, CIMIC and Engineering and Construction segments, to which the operating companies are allocated. The segmentation is based on the new internal reporting. The comparative figures for the previous year are reported in accordance with the new segmentation.

The Group structure provides visibility on the performance of the individual operating companies within the Group, which provide integrated solutions tailored to a distinct market for which they hold leading positions. As part of the ACS Group, HOCHTIEF is one of the companies with the highest degree of internationalization in the construction industry and generates around $97 \%$ of its output outside of Germany.

The Group is managed and controlled by HOCHTIEF Aktiengesellschaft, the strategic and operational management holding company domiciled in Essen, Germany (the "holding company"). Responsibility for the strategic, organizational, and operational development of the Group as a whole lies with the Executive Board and the Group corporate departments (control level). The holding company encompasses the following departments: Corporate Governance (Corporate Compliance, Corporate Department Legal), Corporate Auditing, Corporate Department Human Resources, Corporate Department IT, Corporate Development and Mergers \& Acquisitions, Corporate Communications, Corporate Department Sustainability, Corporate Controlling and Risk Management, Corporate Finance, Corporate Department Strategy, Corporate Department Capital Markets Strategy/Investor Relations, Corporate Accounting and Tax, and Corporate Department Insurance.

Business activities and business model of the HOCHTIEF Group

HOCHTIEF is an engineering-led global infrastructure solutions provider with leading positions in North America, Australia, and Europe and a rapidly expanding presence in advanced technology, energy transition and sustainable infrastructure markets. We address a wide group of industries with our services, including construction management for non-residential buildings, construction of transportation and supply infrastructure, transportation infrastructure, maintenance services, building construction and civil engineering, toll road operation as well as services for natural resources. HOCHTIEF delivers its services drawing on long-standing experience in development, financing, construction, and operation. With this capability portfolio and global footprint, the Group aims to strategically strengthen the balanced business profile.

Each of our projects is one of a kind and hence calls for tailor-made solutions. In line with our guiding principles, we work to achieve this with a high level of innovation and quality and in accordance with our sustainability strategy.

The Group's subsidiaries are successfully positioned in their markets, as shown by top rankings such as that of the Engineering News-Record. By cooperating closely, the operating companies and corporate departments within the HOCHTIEF Group ensure a continuous global transfer of knowledge Group-wide for the benefit of our stakeholders.

HOCHTIEF generates a high purchasing volume for materials and subcontractor services: In the reporting year, HOCHTIEF spent EUR 24.5 billion, which is equivalent to $74 \%$ of Group work done. We select our subcontractors, suppliers, and service providers on the basis of transparent criteria and binding processes. In the reporting year, approximately $98 \%$ of the contractual partners who are relevant for our core business were prequalified. We worked with approximately 49,500 subcontractors and suppliers across the Group, of whom we defined 4,700 as material. About $70 \%$ of the procurement volume was transacted with material suppliers and subcontractors. Our joint work is based on high standards, notably through acceptance of the conditions laid down in our Code of Conduct for Business Partners. We also attach importance to engaging with other partners involved in construction projects as well as with our stakeholders, both as part of our contracting work and in our sustainability activities.

Management system at HOCHTIEF and key performance indicators

The HOCHTIEF Group is managed from the holding company by the Executive Board and the corporate departments. Together with the segments and their main subsidiaries, these assess markets, opportunities as well as risks and-based on the outcome of this assessment-determine targets and strategic directions for the segments and subsidiaries. Operational management is generally the responsibility of the Group companies, with local management deciding matters such as which projects to pursue. Constituting an exception to this general rule are, for instance, very large or strategically important projects; here, the projects are pursued in close consultation with the Executive Board. Operational management must at all times adhere to the currently applicable Group requirements and guidelines. For example, major investment projects are subject to approval by the Group. All of this takes place under a Group-wide internal control system (ICS) overseen by Internal Auditing and compliance ${ }^{1}$ regulations.

The most important key performance indicator for HOCHTIEF Aktiengesellschaft is net profit.
Once annually, a budget based on uniform Group-wide standards and guidelines for the budgeting Group companies is prepared. The budgeting includes the budget figures for the upcoming year and the two years beyond. Presented to the Supervisory Board by the Executive Board, it forms the basis for the subsequently communicated capital market guidance for key performance indicators. The Executive Board of HOCHTIEF Aktiengesellschaft consults regularly with the top management of the subsidiaries on current business performance, selected financial key performance indicators, opportunities and risks, individual projects as well as strategic and sustainability initiatives. A management committee structure has been established for this purpose. The newly created management committees are a forum for coordination between the Executive Board-supported by the heads of key corporate departments - and the management teams at the main Group companies. Meetings are generally held on a quarterly basis to explain and discuss current and strategic developments as well as to agree upon requisite action to be taken. In addition, any control measures are taken in the event that business performance diverges significantly from the budgeted targets communicated to the capital market.

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[^0]: ${ }^{1}$ You can find the current Declaration on Corporate Governance pursuant to Section 289f and Section 315d of the German Commercial Code (HGB) at: www.hcchtidf.com/declaration-on-cosporate-governance-2005. The Declaration is not part of the statutory audit of the annual financial statements and consolidated financial statements in accordance with Section 317 of the German Commercial Code.

The most important key performance indicators used for management of the HOCHTIEF Group are as follows; the financial key performance indicators are those which best reflect our focus on cash-backed profits, while we manage net cash/net debt as a function of capital allocation:

Financial performance indicators

• Net cash/net debt
• Operational net profit

Non-financial performance indicator

• Lost time injury frequency rate (LTIFR)

By establishing the lost time injury frequency rate (LTIFR') as a key non-financial performance indicator, HOCHTIEF has emphasized the importance of occupational safety and health for the Group's overall success. HOCHTIEF's LTIFR improved again significantly to 0.66 in 2024 compared to the previous year (0.88), due in part to training in the area of behavior-based occupational safety. We are continuously working to further improve our cooperation with our partners in the area of occupational safety.

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[^0]: ${ }^{1}$ The LTIFR, In line with International Labour Organization (ILO) definitions, comprises the number of accidents involving at least one lost day per million hours worked. At HOCHTIEF, fatal occupational accidents are included in the LTIFR if the fatality does not occur on the day of the accident. The development of the LTIFR at HOCHTIEF is reported to the Executive Board on a quarterly basis.

Global presence

HOCHTIEF is focused on developed markets. This map shows a selection of our operating companies and their geographic spread of activity according to the 2024 Group structure.

Turner $^{1}$	CIMIC $^{2}$	Engineering and Construction ${ }^{3}$
- Turner (USA, Canada) - Clark Builders (Canada)	- CIMIC (Australia) - CPB Contractors (Australia, New Zealand, Papua New Guinea) - UGL (Australia, New Zealand) - Pacific Partnerships (Australia, New Zealand) - Leighton Asia (Hong Kong, India, Indonesia, Macao, Malaysia, Philippines, Singapore) - Sedgman (Australia, Canada) - EIC Activities (Australia) - Thiexs (Australia, Canada, Chile, India, Indonesia, Mongolia, USA)	- HOCHTIEF Solutions (Germany) - HOCHTIEF Infrastructure (Austria, Czech Republic, Denmark, Germany, Netherlands, Poland, Slovakia, Sweden, UK) - HOCHTIEF Engineering (Germany, Switzerland) - HOCHTIEF PPP Solutions (Germany, Greece, Ireland, Netherlands, UK) - HOCHTIEF ViCon (Australia, Germany, Netherlands, Switzerland, UK) - Flatiron (USA, Canada) - E.E. Cruz (USA)

The companies featured on the map by way of example illustrate HOCHTIEF's international lineup. Activities are carried out through branches, offices or separate companies. For more information on the corporate segments, turn to the segment reporting. Alongside HOCHTIEF Antiengesellschaft, the consolidated financial statements take in 492 fully consolidated companies, 98 equity-accounted companies, and 154 joint operations included proportionately. This organizational presentation goes together with legal information given in the list of shareholdings. For further information, please see the Notes to the Consolidated Financial Statements in this Report.

[^0]
[^0]: ${ }^{1}$ Selection of the most important activities
${ }^{2}$ Selection of the most important activities and participating interests

Goals and strategies

Creating sustainable value for all stakeholders

HOCHTIEF is an engineering-led global infrastructure solutions provider with leading positions in North America, Australia and Europe and a rapidly expanding presence in strategic growth sectors including advanced-technology, energy transition, and sustainable infrastructure markets.

The Group has established local and long-term client relationships, strong engineering, systems and logistics capabilities, leading scale and commissioning capability and unparalleled project management experience, supported by a robust balance sheet and strong cash generation. This is the consequence of accumulated effort and resources applied in a consistent direction, underpinned by our increasing adoption and development of digital and artificial intelligence tools which also support the Group's ongoing progress in further derisking the business.

In addition, the Group has substantial project life-cycle expertise that is applied in greenfield public-private-partnership projects, brownfield concessions, and other equity investment opportunities in strategic growth markets.

We provide our services in selected regions, mainly in developed markets and leverage our Group synergies. As a leading global infrastructure group ${ }^{1}$ HOCHTIEF today spans the entire life cycle of infrastructure projects. As a result, the Group has a balanced business profile in terms of cash flow visibility, capital intensity, and margins.

HOCHTIEF has been delivering large-scale projects and added value services for its clients for over 150 years and, as we look forward, our vision is of a sustainable future: "HOCHTIEF is building the world of tomorrow." Our business activities are based on a common corporate culture with shared values. Our integrated approach to projects fosters a culture of sustainability and collaboration among our Group companies to the benefit of all our stakeholders.

Infrastructure sector investment is undergoing an unprecedented and multi-year transformation, driven by digitalization, demographics, decarbonization and deglobalization. HOCHTIEF has positioned itself as a leading infrastructure and services provider to meet the rising demand that is being driven by these megatrends. And we are achieving this with our construction and engineering know-how, as an equity investor and also by applying our operations and maintenance capabilities, enabling the group to deliver attractive solutions for our clients across the value chain.

Our strategy is to further strengthen HOCHTIEF's position in its conventional and strategic growth markets and activities, and leverage the growth opportunities in the advanced-technology, energy transition and sustainable infrastructure markets, while increasing cash-backed profitability, and supported by a rigorous risk management approach. Our businesses are flexible, allowing management to quickly adapt to varying market conditions and our geographic diversification and long term, local market positions make the group resilient in a period of geopolitical uncertainty. Active and disciplined capital allocation is a high priority for us. We continue to focus on attractive shareholder remuneration as well as investing in strategic growth opportunities to create sustainable value for all stakeholders.

In financial terms, we target an absolute and sustainable increase in profitability with a strong cash conversion as reflected in our financial key performance indicators. Our near-term ambitions are reflected in the Group's guidance (see Looking ahead section). Moreover, the strategy also targets a sustainable, long-term positive development. All our activities are underpinned by the precondition of safety which is reflected in our non-financial key performance indicator, i.e. the lost time injury frequency rate (LTIFR), which has shown a further improvement in 2024 .

[^0]
[^0]: ${ }^{1}$ Based on share of international sales

At the beginning of 2024, HOCHTIEF introduced a simplified Group structure across three business lines: Integrated Solutions ${ }^{1}$, Engineering and Construction and Infrastructure Investment. This enhances cross-selling and operational synergies within the Group while strengthening our supply-chain, global engineering network and systems, helping to achieve economies of scale. From a financial reporting perspective, we started communicating the Group's activities from the beginning of 2024 based on four new reporting segments; Turner, CIMIC, Engineering and Construction, and Abertis. This aligns the Group's reporting with our strategic and operational priorities and enhances visibility of the company's operating performance.

Group profile

[^0]
[^0]: ${ }^{1}$ Integrated Solutions comprises Turner and CIMIC

Operational net profit by segment

Sales by region

Order backlog by market

Sales by segment

Our activities at a glance

Turner

Turner, our advanced-tech building solutions company, is once again ranked No. 1 in the USA in general and green building in 2024, according to the ranking compiled by the reputed Engineering News-Record. This is based on the company's integrated solution approach including extensive engineering, supply chain and logistics expertise which is crucial for the delivery of large-scale projects. With its client-focused delivery model, Turner is recognized as a leader in the United States in the data center, health care, education, airports, sports and commercial office segments. At the beginning of 2025, Turner acquired the Irish-based advanced technology engineering company Dornan. The acquisition will accelerate Turner's strategy of expanding into the European market where a significant pipeline of advanced technology project opportunities has been identified with its existing clients.

CIMIC

CIMIC Group is an industrial, energy, natural resources and civil infrastructure business. Its activities cover the entire infrastructure lifecycle from development and investment through construction to operations and maintenance. Its operating companies include: CPB Contractors is the largest civil engineering business in Australia; LAIO (Leighton Asia) offers comprehensive construction services primarily in Hong Kong and other selected Southeast Asian countries for civil and advanced technology projects; UGL is a leader in the provision of industrial services for the energy, resources, and transportation sectors, as well as asset management services; Thiess provides comprehensive services in the natural resources sector; Sedgman is a provider of integrated mineral processing solutions; and Pacific Partnerships is a developer and investor for infrastructure, digital and energy assets.

Engineering and Construction

Our Engineering and Construction segment encompasses HOCHTIEF's activities in Europe plus Flatiron. The Group's European engineering and construction activities, operating under the HOCHTIEF brand, deliver sustainable solutions in energy transition as well as digital, social, and transportation infrastructure. The primary focus is on the German, Polish, Czech, Slovakian, Austrian, UK, Scandinavian, and Dutch markets. These activities are complemented by HOCHTIEF PPP Solutions focusing on greenfield PPP and strategic high-growth market project developments in Europe, including investing own equity into the project companies. Flatiron is our civil engineering specialist in North America, providing innovative infrastructure solutions in the USA and Canada. In July 2024, HOCHTIEF and Dragados agreed to combine the North American companies Flatiron and Dragados North America into the second-largest provider of civil engineering and construction services in the United States. The new company will boast unique experience, references, geographic reach, and engineering capabilities for large infrastructure construction projects. Since the closing of the transaction in early 2025, HOCHTIEF holds a $38.2 \%$ equity-accounted interest in the new combined entity.

Abertis

Since June 2018, HOCHTIEF owns a 20\% stake in Abertis HoldCo, the direct owner of 99.1\% of Abertis Infraestructuras, S.A. (Abertis). Abertis is a leading international toll road operator with a portfolio of brownfield assets stretching across 15 countries, 34 concessions and around 8,000 kilometers of toll-roads.

Key elements of our strategy aimed at achieving our objectives are as follows:

Harnessing market potential resulting from megatrends

A key element of our corporate strategy is to further develop HOCHTIEF's presence in rapidly expanding strategic growth markets. These include advanced technology markets such as data centers, where the exponential growth of cloud computing and artificial intelligence are driving strong demand growth, as well as the energy transition market and other areas such as social infrastructure and mobility.

Aligned with our vision of "HOCHTIEF is building the world of tomorrow" we are well placed to support:

• the roll-out of high-tech infrastructure including data centers, semiconductor and other advanced technology manufacturing facilities and state-of-the-art facilities
• the build-out of renewable energy- and related infrastructure needed for the energy transition in all our key markets
• the transformation of traditional transportation infrastructure to new mobility concepts
• the move towards industrial relocation of manufacturing capacity in North America and Europe
• healthcare and biopharma investments to meet the demands of aging populations
• the execution of resiliency projects that deliver new or refurbish existing infrastructure to cope with climate change effects such as extreme weather events and rising seal levels.

Furthermore, we are leveraging our project delivery track-record, engineering experience and market presence to position ourselves for other potential global growth opportunities which are emerging as a consequence of some of the megatrends described earlier. Specifically, we have been developing our technical and technological know-how in sectors which could be critical for the global energy transition including Lithium, EV charging and clean energies, and the group is also well positioned in others areas such as semiconductors. This optionality enables HOCHTIEF to potentially benefit from additional further significant longer-term growth opportunities.

Maximizing value creation opportunity

By fully harnessing our unique competitive position, we are increasing our presence in the value chain of our strategic growth markets. Group-wide cooperation and synergies are critical to delivering on this strategy. By accelerating the equity investment component of our strategy, we strive to maximize the value we can create not just with our engineering and construction capabilities, but also as an equity investor, as well as from the operations and maintenance angle.

Focus on sustainable and cash-backed profitability

Achieving sustainable profits consistently backed by cash generation is a core element of our strategy, paving the way for an attractive shareholder remuneration policy as well as further strategic growth investments.

The Group delivered another strong cash flow performance in 2024. Operating cash flow of over EUR 2.1 billion in 2024 was up over EUR 600 million year on year and compares to an already strong performance in 2023 driven by a sustained high cash conversion and the impacts from the first-time full consolidation of Thiess.

Given this strong performance, HOCHTIEF ended the year with a slight net debt position of EUR 120 million after incorporating Thiess net debt of EUR 1.0 billion, investing EUR 680 million for M\&A and into Abertis as well as distributing dividends worth EUR 331 million to shareholders. This financial key performance indicator hence showed a strong performance when adjusted for capital allocation decisions taken during the year.

Continuous focus on risk management

In all our projects, effective risk management is essential. Effective risk management requires constant improvements. That is why we work continuously to adapt and optimize our risk management processes and, in doing so, contribute to enhancing profitability. We focus on selected, attractive markets where our engineering and project management know-how coupled with the benefits of a long-term local presence provide a sound basis for executing our core activities, and we constantly evaluate market opportunities with a view to complementing our activities accordingly. As a consequence, the share of lower-risk contract types with enhanced risk-sharing mechanisms in our order backlog has increased significantly over the last seven years to well over $85 \%$ compared to around $65 \%$ at the end of fiscal year 2017. In addition, various risk mitigation tools are applied to manage inflationand supply chain challenges together with our clients and partners.

Maintaining a strong balance sheet and diversification and optimization of financing instruments

Maintaining a strong balance sheet is a key element of our Group strategy and part of our commitment to our investment-grade credit rating. In addition, improving the financial structure is an ongoing objective for HOCHTIEF. Diversifying the available financing instruments as well as notably expanding short-term and longterm debt financing sources, including outside of the traditional banking market, is key to attaining that goal.

In addition to our bank financing, broad market and investor access to diverse financial instruments, including promissory note loans, private placements, and public-sector bonds enables HOCHTIEF to secure new financing arrangements and refinance existing debt on attractive terms. This also allows HOCHTIEF to consistently implement targeted management and extension of its maturity profile as part of its long-term financial strategy.

Active and disciplined capital allocation a key priority for management

An active evaluation of capital allocation options is a key ingredient of the Group's strategy to support HOCHTIEF's diversification, simplification, and growth as well as our expertise in advanced infrastructure. We follow an active and disciplined approach to the opportunities we identify, including strategic and bolt-on acquisitions, PPP and strategic growth market project investments as well as shareholder remuneration through dividends and share buybacks.

Capital allocation highlights in 2024 include:

• In July 2024, Turner signed an agreement to acquire 100\% of Dornan Engineering, a rapidly growing European advanced-tech engineering company, for an enterprise value of approximately EUR 400 million. Headquartered in Ireland, Dornan is a leading mechanical and electrical engineering company in Europe, and works in the data center, biopharma/life sciences as well as industrial and other sectors. With a strong presence in the UK, Ireland, Germany, the Netherlands, Denmark and Switzerland among others, the business achieved revenues of over EUR 730 million in 2024 and EBITDA of over EUR 60 million. Revenue growth has averaged over $20 \%$ in recent years backed by an expanding order book which currently stands at close over EUR 1.6 billion. Dornan has a similar business model and risk approach to Turner and also shares with it many of the direct relationships with blue chips and hyperscalers. This strategic acquisition of a company with over 1,000 employees will allow us to further leverage the strong engineering capabilities in the areas of design, engineering, project management, commissioning, procurement and modularization. Executed by Turner, the acquisition will accelerate the company's strategy of expanding into the European advanced-technology market.
• As part of the Group strategy, we have since 2023 been investing equity in strategic growth markets. The strategic shift from building, to also owning and operating digital and energy infrastructure assets, is consistent with the Group's strong track record in PPPs. Overall at the end of 2024 we had committed equity investments of EUR 800 million, of which EUR 400 million are in data centers, solar farms, battery energy storage systems, electric vehicle EV charging networks and critical metals.
• In early 2024, the shareholders of Abertis contributed EUR 1.3 billion in equity to support financing of the transactions announced by Abertis in 2023 and the company's growth strategy geared to extending the group's concession portfolio duration. HOCHTIEF subscribed its 20\% share with a EUR 260 million investment.
• At the end of April 2024, CIMIC announced it had entered into an agreement with Elliott to acquire an additional 10\% equity interest in Thiess. The acquisition, for a purchase price of AUD 320 million (equivalent to EUR 194 million), increases the Group's ownership of Thiess to 60\% and has strengthened the Group's governance over the day-to-day operations of the company. As a consequence, HOCHTIEF has fully consolidated Thiess from May 2024.

• In July 2024, HOCHTIEF and its main shareholder ACS agreed to integrate their North American businesses, Flatiron and Dragados, to create the second-largest civil engineering and construction player in the region. The new company will have unparalleled civil infrastructure experience, credentials, geographical reach, and technical capabilities for large infrastructure projects. The combined resources will support further growth in an expanding North American civil engineering market. The transaction will provide meaningful annual synergies of USD 30-40 million focused on procurement, shared services, and the centralization of a wide range of corporate functions. This value-accretive proposition will result in HOCHTIEF holding a $38.2 \%$ equity-consolidated stake in the new business.

• During the year HOCHTIEF has carried out several bolt-on acquisitions including, in May 2024, when Group company Thiess closed the transaction to acquire the underground metals business PYBAR, one of the largest underground hard rock mining contractors in Australia with a strong position in critical minerals and metals including copper, gold, zinc-lead, and iron ore. PYBAR's in-depth experience and expertise in underground mining enables Thiess to expand its service offering to existing and new clients, further diversifying its business and pursuing new opportunities in underground metals and minerals that are critical to the global energy transition across Australia and globally. The purchase price consideration was EUR 33 million.

Accelerating innovation by making use of digital developments

A major contributor to HOCHTIEF's strong track record in work and project delivery has been our focus on innovation, a key guiding principle of the Group. Innovation is conceptually approached from two angles. The strategic management of innovation is led by Nexplore which operates innovation, development, and research centers in the proximity of HOCHTIEF's main subsidiaries. Its focus is on the opportunities and efficiencies that digital products and solutions can bring to our businesses. Nexplore is monitoring and consolidating the integration of technologies such as digital twin and Building Information Modeling (BIM). We continue to develop BIM as a key springboard for further innovations. Additionally, project-driven innovation is executed by innovation units within our operating companies that develop new solutions based on existing and emerging requirements on specific projects or more widely in their respective business lines. Automation and prefabrication applications, for example, lead to process improvements in the supply chain. This is further supported by our dedicated engineering and technical services companies such as EIC Activities and HOCHTIEF Engineering.

We develop in-house solutions and also use state-of-the-art systems and methods provided by external suppliers to enhance overall performance. For example, Turner's SourceBlue transforms the traditional procurement process through the transparent and efficient design of complex supply chains. In addition, we are actively engaging in industry-wide R\&D networks with research, science, and industry partners to drive innovation in our industry forward, with digitalization playing a crucial role in stepping up not only safety, quality, and efficiency but also sustainability. This is why innovation and digitalization are embraced within the HOCHTIEF Group as fundamental enablers to deliver on our ambitious targets laid out in the Sustainability Plan 2025.

Further enhancing our attractiveness as an employer

Our teams are paramount for HOCHTIEF and attracting talent is essential for HOCHTIEF. To this end, we have aligned our human resources management around recruiting both young talent and experienced professionals for our company and systematically enhancing employee retention and development. Our areas of focus here include diversity in teams, an inspiring working environment as well as an extensive further education and training program.

Occupational safety and health are the foundation for success in our work. We work continuously to improve occupational safety. These efforts are aided by our non-financial key performance indicator, the lost time injury frequency rate (LTIFR), which provides us with a transparent means of tracking the frequency of accidents. Reducing the LTIFR is an express goal under our Sustainability Plan.

Contributing actively to sustainable development Sustainability Plan in implementation

Implementation of the Sustainability Plan 2025 systematically continued in 2024. This comprehensive strategy spanning the three dimensions of sustainability-environmental, social, and governance (ESG)-was drawn up in 2021 under the direct leadership of the Executive Board and adopted in 2022. HOCHTIEF thus places a focus on the three pillars of ESG. To contribute to a sustainable future and in order to support the goals of the Paris Climate Agreement, all our business units are prioritizing the new Sustainability Plan 2025 with a clear commitment to achieving our net-zero target by 2045. This core effort is supplemented with targets and activities in the environmental, social, and governance spheres. Cooperation, digitalization and innovation are decisive for implementing the Sustainability Plan. In 2025, a new HOCHTIEF Sustainability Plan is scheduled to be adopted.

Our sustainability strategy forms an integral part of the Group strategy, with which we generate value for our stakeholders and secure our long-term success. We define sustainability as a systematic approach to harmonizing economic, environmental, and social responsibility across all our business activities with the aim of securing the long-term viability of the Company. Sustainability is therefore one of our strategic principles. To this end, we apply a 360-degree focus, taking in all of our business segments and operating activities, and hence also our clients. At all times, we also keep in mind the interests of other stakeholders such as suppliers, subcontractors, and residents in the vicinity of our projects.

The international ESG working groups at HOCHTIEF continued to develop their activities in the reporting year. Their progress is regularly reported to the Chief Sustainability Officer on the Executive Board, who also chairs the Sustainability Core Implementation Team, which is the operational implementing body. The Sustainability Committee newly constituted in 2022, comprising management representatives from across the entire Group, met three times in 2024. Similar structures have been established in the Group companies Turner, Flatiron, CIMIC, and HOCHTIEF Infrastructure.

Stakeholder management in the area of sustainability is primarily carried out at HOCHTIEF on a decentralized, issues-driven basis. To achieve the required targets for specific issue-related or case-related feedback, we conduct stakeholder dialogue on a thematic basis. In an ongoing exchange, the needs of a wide variety of stakeholder groups are identified and taken into account both operationally and strategically for the long term. This feedback is a key element in making sure that our selected focus areas remain both relevant and valid.

Non-financial reporting is provided in a sustainability statement, which is contained in the combined Management Report.

Business success through sustainable action

As our work directly affects the environment and society, we aim to make our impact as positive as possible. We aim to prevent risks and make targeted use of opportunities. For clients, other stakeholders, and the Group alike, we aim to preserve, create, and grow value.

We do this by creating sustainable buildings and infrastructure, and by designing processes to deliver construction and services in the most environmentally and socially responsible manner possible. Innovations in products and services lead to resource-conserving solutions in our business segments. Generally, with services in our new market segments, we make a significant contribution to enabling sustainable development-for example, we are creating the conditions for the production and operation of electric vehicles by constructing battery factories.

DATA4 DATA CENTER, POLAND

A new data center is being built as part of a large, integrated complex near Warsaw. HOCHTIEF is the general contractor in charge of constructing the building on the four-hectare site.

Markets and operating environment

HOCHTIEF Group companies hold leading positions in some of the world's biggest infrastructure markets. The outlook for the most relevant markets for the Group, according to leading research firms, is described below. It is important to underline that the actual performance will not necessarily mirror the evolution of particular markets as our operational strategies can lead to deviations from overall market trends. This is particularly the case in fragmented markets as well as in markets characterized by very large-scale projects only. Therefore, we also highlight the respective segment's comparable order book development to put the segment's actual growth outlook into perspective.

Turner

Turner generates the vast majority of its sales in the non-residential building construction market in the United States. Solid and above-average real growth rates are forecast for sectors where Turner has a strong presence, notably in manufacturing, healthcare, education and transportation. ${ }^{1}$ The data center construction market, which has become one of Turner's largest market segments in its backlog, has an expected compound annual growth rate 2023-29 of 11.7\% driven by demand from hyperscalers, growth in edge computing and the roll-out of Artificial Intelligence applications. ${ }^{2}$

The outlook for the market is generally positive. Construction starts for the non-residential sector in the United States are forecast to grow 6\% in 2025 and 5\% 20263

Turner's order backlog grew by $22 \%$ year on year in local-currency terms during 2024 reflecting Turner's strong market position and its strategy focused on advanced tech project opportunities. The order backlog does not yet reflect Turner's ambition to expand into the European market to serve advanced technology clients.

CIMIC

CIMIC's activities are largely executed in Australia and New Zealand with an additional selective presence across Southeast Asia. The overall market outlook for CIMIC is broadly positive in its key areas of activity including infrastructure construction, mainly civil engineering, as well as across infrastructure, industrial and natural resources services.

In Australia, non-residential construction spending is expected to increase $7.2 \%$ in 2025. In transport infrastructure, the Australian Government continues to invest in major capital city rail and road projects and regional upgrade works. Government investment in healthcare and hospitals, partly in response to Covid-19 and underpinned by a growing and aging population, is also expected to see ongoing growth in healthcare construction. ${ }^{4}$

The construction sector in SouthEast Asia is one of the fastest growing globally, with broad-based growth across all sectors, especially infrastructure, utilities and energy. In 2025, the Southeast Asian construction sector is expected to grow by $8.9 \% .{ }^{5}$

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[^0]: ${ }^{1}$ FMI, 2024 North American Engineering and Construction Outlook, Fourth Quarter Edition, October 2024.
${ }^{2}$ Aniston, U.S. DATA GENTER CONSTRUCTION MARKET - INDUSTRY OUTLOOK \& FORECAST 2024-2028, May 2024
${ }^{3}$ Dodge Construction Network, Construction Market Forecasting Service, Fourth Quarter 2024, November 2024
${ }^{4}$ Macrononitor, Australian Construction Outlook Series, January 2025
${ }^{5}$ GlobalData, Construction Database, December 2024

The Australian outsourced maintenance and services market continues to benefit from infrastructure investments to support population changes and aging assets. Asset owners are increasingly outsourcing infrastructure maintenance and services. Increasing exposure to extreme weather-related events further supports demand in this segment. In 2025, this market is expected to grow by $3.9 \%$, with across-the-board sector growth. ${ }^{1}$

Australia is a major producer and exporter of key commodities and remains an increasingly important global source of critical minerals. Production across most major commodities is expected to rise, with gold and critical minerals such as copper and lithium expected to experience the strongest production and export growth. ${ }^{2}$ In 2025, construction activities in the resources sector are expected to increase by $9.2 \%$, partly driven by growing demand for critical minerals to support the energy transition. ${ }^{3}$

CIMIC's order backlog grew by 27\% in local-currency terms during 2024 reflecting the impact of the first-time full consolidation of Thiess (additional AUD 7.1 million) as well as a 3\% comparable growth year on year.

Engineering and Construction

In Engineering and Construction, the Group operates as a civil contractor in Europe and the U.S. as well as in building construction in Europe. Engineering and construction activities are complemented by project development activities, including public-private partnerships, data centers, and electric vehicle fast-charging networks.

In Europe, civil engineering is the best performing market driven by the pressing need for upgrades in transport and energy infrastructure. Furthermore, these investments are crucial to meet new demands and political goals. New civil engineering projects are expected to grow significantly in the next two years. The European non-residential building construction market is expected to return to growth next year. New investments are expected to be especially strong in public-funded market segments while incentives and structural policies encouraging energy efficiency investments will create consistent push for renovation activities across the sector. ${ }^{4}$

The civil infrastructure construction market in the United States, the most relevant market segment for our North American Engineering and Construction company Flatiron, is expected to see the highest real growth rates within the wider construction market at $5 \%$ in 2025 and $3 \%$ in 2026. Policies will continue to support infrastructure investment and the current funding picture indicates several years of momentum and support across power, highway \& streets and water sectors, according to FMI. ${ }^{5}$

The Engineering and Construction order backlog grew by 4\% during 2024 reflecting robust demand for transport, power, utility and social infrastructure. This is supported by government stimulus packages (especially in the United States), pent-up demand in critical infrastructure, data centers and energy refurbishments which play to the strength of both HOCHTIEF's and Flatiron's market positioning.

Abertis Investment

The outlook for Abertis' diverse portfolio of toll road concessions is largely a function of economic activity in key countries as well as inflation-linked tariff increases. Taking both indicators together, the prospect of further underlying revenue growth of Abertis is good. The acquisitions announced in 2024 are also expected to have a positive impact on growth.

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[^0]: ${ }^{1}$ Oxford Economics, Maintenance in Australia, May 2024
${ }^{2}$ Department of Industry Science and Resources, Resources and Energy Quarterly, December 2024
${ }^{3}$ Macromonitor, Australian Construction Outlook Series, January 2025
${ }^{4}$ Euroconstruct, 98th Euroconstruct Conference, Press Release, December 2024
${ }^{5}$ FMI, 2024 North American Engineering and Construction Outlook, Fourth Quarter Edition, October 2024

Order Backlog Development in 2024 Strong growth in new orders amongst the drivers of a $22 \%$ increase in order backlog

New orders of EUR 41.8 billion in FY 2024 rose by $9 \%$ year on year on a comparable basis, or $+14 \%$ on a reported basis (without adjusting for the impact of the Thiess full consolidation from April 2024). The development was driven by strong order intake at Turner and by the Group-wide strategic focus on strategic growth market opportunities, whose share is approximately $50 \%$ of total. New orders corresponded to around 1.2 x work done during the period with the Group continuing its disciplined bidding approach across all segments.

As a result of a strong level of new orders, the order backlog rose to EUR 67.6 billion. Year on year the order backlog increased in absolute terms by EUR 7.7 billion on a comparable basis or $13 \%$ in relative terms. The nominal increase amounts to $22 \%$ including a positive impact from the Thiess full consolidation and foreign exchange rate effects. Our focus remains on developed markets and the order book remains diversified across regions and market segments. The Group continues to work on further improving its overall risk profile by increasing the focus on collaborative and lower-risk contract types with lower-risk contracts now accounting for more than $85 \%$ of the Group's order book.

Turner: Order backlog at new record level following a 31\% increase in new orders

New orders at Turner in 2024 are up $31 \%$ year on year to EUR 24.4 billion and equivalent to 1.3 x work done during the same period. As a result of the strong order intake momentum, the order backlog at Turner rose by 30\% year on year to EUR 31.9 billion, a new year-end record level. Adjusting for foreign exchange rate effects, the increase amounts to $22 \%$.

CIMIC: Solid new orders and Thiess consolidation drive a 10\% nominal increase in the order backlog New orders of EUR 12.8 billion in 2024 are close to the prior year level on a comparable basis, and up 10\% year on year nominally. New orders are equivalent to over 1.0x work done during the period. At year-end CIMIC's order backlog stood at EUR 24.0 billion, showing an underlying increase in Australian dollars of 3\% year on year, including the of the full consolidation of Thiess, CIMIC's order backlog rose by $23 \%$.

Engineering and Construction: A further increase in the order backlog to EUR 11.6 billion
In the Engineering and Construction segment, new orders worth EUR 4.4 billion were recorded in 2024, representing just over 1.0x work done during the reporting period. As a result, the segment order backlog at the end of December 2024 came out at EUR 11.6 billion, 4\% higher year on year.

Order Backlog Development in 2024 at a Glance

New orders ${ }^{1}$

EUR billion

Work done ${ }^{1,2}$

EUR billion

Order backlog

EUR billion

2023
2024

New orders

by region

$\equiv$
41.80

EUR billion
(100\%)

Work done ${ }^{3}$

by region

$\equiv$
35.48

EUR billion
(100\%)

Order backlog by region

$\equiv$
67.58

EUR billion
(100\%)

• America - Asia/Pacific/Africa - Germany - Rest of Europe

[^0]
[^0]: ${ }^{1}$ All figures refer to continued operations only unless stated otherwise.
${ }^{2}$ The reporting term work done covers all construction work completed by the company itself, together with its fully consolidated subsidiaries, and by joint ventures on a pro rata basis, plus all other sales generated by non-construction operations during the reporting period.

U2/U5 SUBWAY CONSTRUCTION, VIENNA, AUSTRIA

Mobility for the future: On behalf of the City of Vienna, HOCHTIEF is expanding the city's subway network in the U2/U5 (Rathaus/Frankhplatz) construction joint venture. The expansion marks a key infrastructure project for the city.

Course of business

Summary assessment of the business situation

In 2024, HOCHTIEF focused on implementing the Group strategy and made significant progress on expanding its presence in the strategic growth areas of advanced technology, energy transition, and sustainable infrastructure. Furthermore, the Group concentrated on consolidating and strengthening its existing core market positions.

Alongside attractive returns to shareholders, the HOCHTIEF Group's capital allocation strategy continues to focus on strategic mergers \& acquisitions to reinforce and expand its know-how and capabilities for clients in the areas of engineering, digital systems, and logistics and supply chain services.

On April 23, 2024, CIMIC Group Limited acquired an additional 10\% of Thiess Group Holdings Pty Ltd ("Thiess") previously held by Elliott Advisors (UK) Ltd ("Elliott"). The acquisition increases CIMIC's ownership of Thiess to $60 \%$. Revisions to the shareholders agreement mean that CIMIC has governance over the day-to-day operations of the company. Consequently, CIMIC has the ability to direct Thiess' relevant activities and, as such, Thiess is a controlled entity of CIMIC under IFRS 3 and is included in the HOCHTIEF Consolidated Financial Statements as a subsidiary. On full consolidation, all balance sheet and P\&L line items are consolidated 100\% in the HOCHTIEF Consolidated Financial Statements. Elliott's 40\% stake is adjusted through Minority Interest and reported in the "non-controlling interests" line item. Profit after tax adjusted for minority interests therefore includes CIMIC's economic share in Thiess. The remeasurement of the stake in Thiess, which was previously accounted for using the equity method, resulted in a gain of EUR 593 million. This was counterbalanced by risk provisioning for projects in the amount of EUR 446 million.

HOCHTIEF adopted a new organizational structure based on the management model at the beginning of 2024. This provides better visibility of each segment and aligns with the strategic and operational priorities. Internal reporting is consistent with the new organizational structure and comprises the following reportable segements:

• Turner is a leading U.S. general building company providing a full range of services for projects of all types and sizes in North America and around the world, successfully pursuing opportunities in strategic growth markets such as data centers.
• CIMIC is an Australian company with construction, services, and PPP activities in the Asia-Pacific region. Its business activities also include the investment in Thiess, which has been accounted for as a subsidiary in the Consolidated Financial Statements since April 2024.
• Engineering and Construction bundles the construction and PPP activities in Europe together with the civil engineering company Flatiron in North America.
• Abertis comprises the investment in the Spanish toll road operator Abertis Infraestructuras, S.A. (shareholding of 20\%), which is equity-accounted in HOCHTIEF's Consolidated Financial Statements.
• Corporate comprises Corporate Headquarters, other activities not assignable to the separately presented segments, including management of financial resources and insurance activities, plus consolidation effects.

Prior-year comparative figures are reported in accordance with this new segmentation.

In total, HOCHTIEF generated consolidated sales of EUR 33.3 billion in 2024, up 20\% on the prior year. Earnings performance also improved significantly. Both nominal (EUR 776 million) and operational consolidated net profit (EUR 625 million) were higher in 2024 than the prior-year comparative figures. Driven by continued strong cash conversion, the Group's net operating cash flow increased by EUR 364 million to EUR 1.5 billion. The HOCHTIEF Group also recorded further significant growth in new orders and the order backlog. New orders reached EUR 41.8 billion in the period January to December 2024 (2023: EUR 36.7 billion), while the order backlog stood at EUR 67.6 billion as of December 31, 2024 (December 31, 2023: EUR 55.3 billion).

In summary, we assess the HOCHTIEF Group's business situation and business performance in 2024 to be very solid overall on the basis of achieved sales and profit growth coupled with the good cash conversion and further significant growth in orders and order backlog as the Group continues executing on its strategy.

Financial Review

Group sales

HOCHTIEF generated sales of EUR 33.3 billion in 2024. This represents a 20\% increase on the comparative prior-year figure (EUR 27.8 billion). All segments contributed to this sales growth. As the average U.S. dollar and Australian dollar exchange rates remained virtually unchanged from the prior year, exchange rate effects were minor in 2024.

Sales

(EUR million)	2024	2023	Change
Turner	$19,264.3$	$16,184.9$	$19.0 \%$
CIMIC	$10,212.5$	$8,099.6$	$26.1 \%$
Engineering and Construction	$3,628.8$	$3,301.8$	$9.9 \%$
Corporate	195.7	169.7	$15.3 \%$
HOCHTIEF Group	$\mathbf{3 3 , 3 0 1 . 3}$	$\mathbf{2 7 , 7 5 6 . 0}$	$\mathbf{2 0 . 0 \%}$

Turner's sales came to EUR 19.3 billion in 2024. That represents a 19\% increase on the comparative prior-year figure (EUR 16.2 billion). This performance was driven by Turner's strong position as a leading provider in various general building market segments as well as notably by higher sales in the advanced technologies and social infrastructure (sports facilities and healthcare) sectors.

The main impact on CIMIC's sales performance in 2024 related to the inclusion of Thiess as a consolidated subsidiary (EUR 2.6 billion) from the second quarter of 2024. CIMIC's sales also include EUR 488 million (AUD 800 million) of sales adjustments. In total, CIMIC generated sales of EUR 10.2 billion in the period January to December 2024. This marked a $26 \%$ increase in sales volume relative to the prior-year period (EUR 8.1 billion).

The Engineering and Construction segment generated sales of EUR 3.6 billion in 2024, marking an increase of EUR 327 million or 10\% on the prior-year figure (EUR 3.3 billion). This was driven by positive contributions from each of our operating companies in the U.S. and Europe.

Sales generated in markets outside Germany amounted to EUR 32.3 billion in 2024 (2023: EUR 26.9 billion). At $97 \%$, the proportion of HOCHTIEF Group sales generated internationally was on the same level as in the prior year.

Operational Statements of Earnings ${ }^{\star}$

(EUR million)	2024	2023	Change
Sales	33,301.3	27,756.0	20.0\%
Change in inventories	15.9	10.3	$54.4 \%$
Materials	$(24,540.9)$	$(20,917.8)$	$17.3 \%$
Personnel costs	$(6,081.0)$	$(4,811.4)$	$26.4 \%$
Other operating income	718.6	121.8	$490.0 \%$
Other operating expenses	$(1,664.8)$	$(1,284.6)$	$29.6 \%$
Net income from equity-accounted associates	30.1	254.2	$-88.2 \%$
Net income from other participating interests (excl. result from loans)	75.4	42.4	$77.8 \%$
Net non-operating expenses adjustment	26.9	59.3	$-54.6 \%$
EBITDA adjusted	1,881.5	1,230.2	52.9\%
Depreciation and amortization	$(594.4)$	$(320.6)$	$85.4 \%$
EBIT adjusted	1,287.1	909.6	41.5\%
Net interest income and other financial result	$(256.4)$	$(135.3)$	$89.5 \%$
Net non-operating expenses adjustment	$(26.9)$	$(59.3)$	$-54.6 \%$
Profit before tax/PBT	1,003.8	715.0	40.4\%
Taxes	$(136.6)$	$(171.0)$	$-20.1 \%$
Tax rate (taxes/PBT in \%)	$13.6 \%$	$23.9 \%$
Profit after tax	867.2	544.0	59.4\%
Minority interest	$(91.6)$	$(21.3)$	$330.0 \%$
Consolidated net profit	775.6	522.7	48.4\%

• The operational statement of earnings shows the derivation of the operating earnings figures EBITDA (adjusted) and EBIT (adjusted). For this purpose, net non-operating expenses are eliminated from the statement of earnings and are hence not included in EBITDA and EBIT. The net non-operating expenses mainly relate to income and expenses from special items and foreign exchange gains/losses, net income from asset disposals, and impairments/impairment reversals on receivables.

Materials increased in line with sales growth in 2024. Personnel expenses also rose compared to the prior year. At CIMIC, the inclusion of Thiess as a consolidated subsidiary made for an increase on the prior year. In line with the Group's high degree of internationalization, $89 \%$ of materials (2023: 88\%) and $85 \%$ of personnel costs (2023: 85\%) were accounted for by the Turner and CIMIC segments.

Other operating income amounted to EUR 719 million in 2024 (2023: EUR 122 million). The significant increase compared to the prior year was mainly due to the gain on remeasurement of CIMIC's existing 50\% stake in Thiess (EUR 593 million) in connection with the acquisition of a further 10\% of the shares in Thiess.

Other operating expenses rose from EUR 1.3 billion to EUR 1.7 billion. The increase is mainly due to higher insurance expenses as well as increased expenses for rentals and lease rentals.

Net income from equity-accounted entities amounted to EUR 30 million in 2024 (2023: EUR 254 million). Most of the change relative to the prior year is due to the lower earnings contribution from Abertis in connection with the premature termination by the concession grantor of the concession agreement to operate the SH-288 toll road in Texas, USA. The inclusion of Thiess as a consolidated subsidiary from the first half of 2024 also had an impact. In the prior year, Thiess was still accounted for as a joint venture in the Consolidated Financial Statements, which meant that its contribution to earnings (EUR 53 million) was reported in net income from equityaccounted entities.

Net income from other participating interests (excluding net income from loans) amounted to EUR 75 million in 2024 (2023: EUR 42 million). In the reporting period, this includes a positive effect from a project investment sale. The previous year's figure contained EUR 21 million in dividend income from the investment in Ventia, which was still included in the first nine months of 2023. The interests in Ventia were sold in full in the course of 2023.

The net non-operating expenses adjustments of EUR 27 million (2023: EUR 59 million) are mostly attributable to exchange rate gains/losses as well as gains and losses from impairments and disposals of assets.

HOCHTIEF generated EBITDA (adjusted) of EUR 1.9 billion in 2024. This marked an increase of EUR 651 million or $53 \%$ on the prior-year level of EUR 1.2 billion.

Depreciation and amortization came to EUR 594 million in 2024, compared to EUR 321 million in the prior year. This mainly related to the inclusion of Thiess as a consolidated subsidiary from the first half of 2024.

The net interest income and other financial result item comprises net investment and interest income/expenses as well as net income from loans. In 2024, the net balance was an expense item of EUR 256 million (2023: EUR 135 million). The year-on-year increase is chiefly due to the bank and capital market borrowing in the reporting year-primarily at HOCHTIEF Aktiengesellschaft and CIMIC-and to the inclusion of Thiess as a consolidated company. Interest expenses also went up due to higher interest rates in line with the capital markets development.

HOCHTIEF generated nominal profit before tax (PBT) of EUR 1.0 billion in 2024. This means that the significant improvement relative to the prior-year figure (EUR 715 million) amounted to EUR 289 million or $40 \%$.

Profit before tax (PBT)
(EUR million)	2024	2023	Change
Turner	565.2	415.7	$36.0 \%$
CIMIC	475.5	302.4	$57.2 \%$
Engineering and Construction	62.3	56.7	$9.9 \%$
Abertis	(13.6)	79.5	-
Corporate	(85.6)	(139.3)	$38.5 \%$
Group nominal PBT	1,003.8	715.0	40.4\%
Non-operational effects	4.5	59.1	$-92.4 \%$
Group operational PBT	1,008.3	774.1	30.3\%

Turner's nominal PBT for 2024 came to EUR 565 million, a marked 36\% improvement on the prior year (EUR 416 million). In the 2024 reporting period, Turner primarily benefited from the successful implementation of its strategy of focusing clearly on opportunities in the advanced technology and high-tech infrastructure markets as well as from a strong improvement in margins.

CIMIC generated nominal PBT of EUR 475 million in 2024, up EUR 173 million or $57 \%$ on the prior-year figure (EUR 302 million). In local currency, nominal PBT rose from AUD 494 million in the prior year to AUD 780 million in 2024. CIMIC benefited here from successes in projects in the advanced technologies, energy transition, and natural resources sectors.

The Engineering and Construction segment generated nominal PBT of EUR 62 million in 2024-a 10\% improvement marking a solid performance compared to the prior year (EUR 57 million). This was supported by strong sales performance in all regions.

Earnings contributions to the HOCHTIEF Group from Abertis reflect the Group's 20\% interest in Abertis HoldCo S.A., the operating performance of Abertis, non-cash purchase price allocation (PPA) effects, and HoldCo costs. Overall, average traffic volumes showed an around 2\% year-on-year improvement in 2024. The average toll price for toll roads operated by Abertis went up by approximately 4\% in the reporting period. For 2024, the earnings contribution of the Abertis investment to the HOCHTIEF Group amounted to a negative EUR 14 million, compared to a positive EUR 80 million in the prior year. The lower earnings contribution compared to the prior year is due to the impact of the early termination of the concession agreement for operation of the SH-288 toll road in Texas, USA (negative EUR 95 million). Abertis' operational result amounted to EUR 81 million in 2024 (2023: EUR 80 million).

The income tax expense for 2024 was EUR 137 million (2023: EUR 171 million). This results in an effective tax rate of $14 \%$, below the prior-year level of $24 \%$. The main item here was the tax-free gain on the remeasurement at fair value of CIMIC's previously equity-accounted investment in Thiess. Adjusted for this effect and the impacts of risk provisioning at CIMIC, the effective tax rate is on a par with the prior year.

The HOCHTIEF Group's nominal consolidated net profit improved in 2024 by 48\% year on year to EUR 776 million (2023: EUR 523 million). HOCHTIEF likewise increased operational consolidated net profit in the reporting period which, at EUR 625 million, exceeded the comparable prior-year figure (EUR 553 million) by 13\%.

The nominal consolidated net profit for 2024 includes a non-cash gain from the remeasurement at fair value of CIMIC's existing 50\% investment in Thiess (EUR 593 million); net of risk provisions for projects (EUR 446 million), this amounts to EUR 147 million. In addition, the non-operational effects include EUR 4 million for miscellaneous items. This means the non-operational effects in 2024 were positive and amounted in total to EUR 151 million (2023: loss of EUR 30 million).

Consolidated net profit/loss (EUR million)	2024	2023	Change
Turner	411.2	294.8	$39.5 \%$
CIMIC	409.9	266.2	$54.0 \%$
Engineering and Construction	40.4	35.7	$13.2 \%$
Abertis	(13.6)	79.5	-
Corporate	(72.3)	(153.5)	$52.9 \%$
Group nominal net profit	775.6	522.7	48.4\%
Non-operational effects	(150.6)	30.4	-
Group operational net profit	625.0	553.1	13.0\%

Cash flow

Cash flow and capital expenditure
(EUR million)

Operating cash flow (OCF)	2024	2023	Change
Gross operating capital expenditure	$(391.6)$	$(210.8)$	$-180.8$
Operating asset disposals	37.4	18.2	19.2
Operating leases	$(249.5)$	$(164.2)$	$-85.3$
Net operating cash flow	1,525.7	1,162.0	363.7
Cash flow from investing activities	$(1,489.0)$	$(249.7)$	$-1,239.3$
Cash flow from financing activities	346.1	$(583.6)$	929.7

2023: Excluding one-off payments at CIMIC (for the settlement on the legacy CCPP project in Q1 2023). No exceptional payments were made in 2024.
*2024: excluding investments in data centers at CIMIC

HOCHTIEF generated an operating cash flow (OCF) of EUR 2.1 billion in 2024, exceeding the prior-year comparative figure (EUR 1.5 billion) by EUR 611 million. The positive overall performance in the reporting year primarily resulted from the Group's focus on sustained high levels of cash conversion and strict working capital management.

Gross operating capital expenditure in 2024 amounted to EUR 392 million ( $88 \%$ of which-2023: 76\%was accounted for by the CIMIC segment). The Group's total capital expenditure was thus EUR 181 million higher than the prior-year comparative figure (EUR 211 million). This was mainly driven by project-related capital expenditure on mining and tunneling equipment at CIMIC-now including the capital expenditure at Thiess as a consolidated subsidiary. Proceeds from operating asset disposals came to EUR 37 million in 2024 (2023: EUR 18 million). The cash outflow from operational lease payments, at EUR 249 million, was EUR 85 million higher than the prior-year figure (EUR 164 million). This increase relative to the prior year was accounted for by the CIMIC segment in connection with operational lease payments at Thiess as a consolidated subsidiary since Q2 2024.

After deducting the cash outflow for net operating capital expenditure and for operational lease payments, the remaining net operating cash flow amounted to EUR 1.5 billion for 2024 und thus showed an increase of EUR 364 million on the prior-year figure (EUR 1.2 billion).

Cash flow from investing activities shows a cash outflow totaling EUR 1.5 billion for 2024 in the HOCHTIEF Group's Statement of Cash Flows (2023: EUR 250 million). The higher net cash outflow in 2024 than in the prior year was mainly due to an increased net cash outflow of EUR 436 million (2023: EUR 193 million) from gross operating capital expenditure and operating asset disposals, the capital increase at Abertis (EUR 260 million), the increase in the investment in Thiess (EUR 195 million/AUD 320 million), and investments in joint ventures at Flatiron (EUR 397 million). CIMIC also had a EUR 417 million cash inflow in the prior year from divesting Ventia. Changes in securities holdings and financial receivables had a negative impact of EUR 115 million (2023: EUR 91 million), while consolidation changes made for a positive impact of EUR 51 million (2023: negative impact of EUR 1 million).

HOCHTIEF recorded a EUR 346 million net cash inflow under cash flow from financing activities in 2024 (2023: cash outflow of EUR 584 million). This figure included borrowings of EUR 3.9 billion (2023: EUR 2.1 billion). Borrowings in 2024 mainly related to financing measures at HOCHTIEF Aktiengesellschaft and CIMIC in the form of bond issues, promissory note loan issues, and drawings on syndicated credit facilities. The borrowings in 2024 were offset by debt repayments in an amount of EUR 2.9 billion (2023: EUR 2.1 billion), primarily to repay loan liabilities at CIMIC and HOCHTIEF Aktiengesellschaft. Repayments of lease liabilities amounted to EUR 249 million in 2024 (2023: EUR 164 million). The rise relative to the prior year was mainly due to the consolidation of Thiess. In 2024, EUR 386 million (2023: EUR 381 million) was used for dividend payments to HOCHTIEF shareholders and minority interests.

Balance sheet

The HOCHTIEF Group's total assets came to EUR 24.7 billion at the December 31, 2024 reporting date. Compared to the 2023 year-end (EUR 19.0 billion), total assets hence increased by a substantial EUR 5.7 billion. This was principally due to the effects of including Thiess as a consolidated subsidiary (the "Thiess effect").

The business combination of Flatiron and Dragados in North America completed in January 2025 also had an effect on the balance sheet structure. HOCHTIEF and ACS announced on July 30, 2024 that they had agreed on the integration of Flatiron and Dragados in North America as well as on key terms for a business combination of the two companies. HOCHTIEF contributed its shares in Flatiron to the new company on January 17, 2025 and received shares in the new company in return. The assets and liabilities of Flatiron are accounted for in accordance with IFRS 5 from the signing of the transaction onward; as of December 31, 2024, the assets and liabilities of Flatiron are thus accounted for as held for sale and presented separately in the Consolidated Balance Sheet.

As only the closing exchange rate for the U.S. dollar showed a meaningful appreciation year on year, currency translation effects mainly affected the HOCHTIEF Consolidated Balance Sheet in relation to translation of the U.S. dollar.

Consolidated Balance Sheet

(EUR million)	Dec. 31, 2024	Dec. 31, 2023
Assets
Non-current assets
Intangible assets, property, plant and equipment, and investment properties	$5,255.0$	$1,963.3$
Financial assets	$1,808.5$	$3,051.5$
Other non-current assets and deferred taxes	902.8	646.8
	7,966.3	5,661.6
Current assets
Inventories, trade receivables and other current assets	$8,141.0$	$7,568.1$
Marketable securities, cash and cash equivalents	$6,531.5$	$5,776.5$
Assets held for sale	$2,016.1$	0.0
	16,688.6	13,344.6
	24,654.9	19,006.2
Liabilities
Shareholders' equity	1,195.5	1,266.3
Non-current liabilities
Provisions	779.7	617.5
Other non-current liabilities and deferred taxes	$7,782.9$	$5,145.9$
	8,562.6	5,763.4
Current liabilities
Provisions	$1,150.9$	$1,004.3$
Other current liabilities	$12,502.0$	$10,972.2$
Liabilities associated with assets held for sale	$1,243.9$	-
	14,896.8	11,976.5
	24,654.9	19,006.2

Non-current assets increased by EUR 2.3 billion in 2024 and stood at just under EUR 8.0 billion as of the 2024 year-end. Intangible assets increased compared to the prior year (EUR 1.1 billion) by EUR 2.2 billion to EUR 3.3 billion, mainly due to goodwill recognized in connection with the consolidation of Thiess (EUR 1.9 billion). Property, plant and equipment went up relative to the prior year-end (EUR 830 million) by EUR 1.1 billion to EUR 1.9 billion. The increase resulted almost entirely from the consolidation of Thiess with its asset-intensive activities. Financial assets decreased from the prior year-end (EUR 3.1 billion) by a total of EUR 1.3 billion to EUR 1.8 billion due to the recognition of the previously equity-accounted investment in Thiess on its consolidation as a subsidiary in the amount of EUR 800 million. In addition, the carrying amount of the investment in Abertis was reduced in the reporting period due to equity-method adjustment and equity-method investments at Flatiron were reclassified to assets held for sale.

Current assets increased by almost EUR 3.4 billion in the reporting period compared to the end of 2023 (EUR 13.3 billion) and amounted to EUR 16.7 billion as of December 31, 2024. Trade receivables and other receivables went up by EUR 479 million in the course of 2024 to EUR 7.4 billion (December 31, 2023: EUR 6.9 billion). The change was a net result of the inclusion of receivables at Thiess following its consolidation (EUR 744 million) and the Group's operating sales growth, less provisioning recognized at CIMIC for risk on project receivables as well as the effect of reclassifying Flatiron's receivables to assets held for sale (approximately EUR 1.0 billion). Marketable securities increased in 2024 by EUR 184 million to EUR 811 million (December 31, 2023: EUR 627 million). As in the prior year, this mainly relates to fixed-income securities. The HOCHTIEF Group had EUR 5.7 billion in cash and cash equivalents at the end of 2024, compared to EUR 5.1 billion at the end of the prior year. The reclassification of Flatiron's cash and cash equivalents to assets held for sale had a negative impact of around EUR 617 million on the cash and cash equivalents reported in the Consolidated Balance Sheet as of December 31, 2024. Overall, the HOCHTIEF Group's liquidity position remained robust at EUR 6.5 billion as of December 31, 2024 and showed an increase relative to the end of 2023 (EUR 5.8 billion) due to the high level of cash conversion and cash inflows from the financing measures completed in the reporting period. The assets held for sale in the amount of EUR 2.0 billion relate in their entirety to the reclassification of Flatiron's assets in connection with the integration of Flatiron and Dragados in North America.

HOCHTIEF Group equity amounted to EUR 1.2 billion as of the December 31, 2024 reporting date (December 31, 2023: EUR 1.3 billion). Within the EUR 71 million net decrease in equity, reclassification of the put option at Elliott Advisors (UK) Ltd for the sale to CIMIC of the remaining non-controlling interests in Thiess (40\%) accounted for a negative impact of EUR 654 million. This is presented under current liabilities as put options granted to non-controlling interests. The remaining changes in equity related to profit after tax (EUR 867 million increase), currency translation effects (EUR 41 million increase), and other changes outside of the statement of earnings (EUR 39 million increase) as well as dividends (EUR 364 million decrease).

As of the December 31, 2024 reporting date, non-current liabilities totaled just under EUR 8.6 billion, up EUR 2.8 billion on the comparative figure as of December 31, 2023 (EUR 5.8 billion). This was mainly due to the financing measures implemented at CIMIC and HOCHTIEF Aktiengesellschaft, which led to an increase in financial liabilities. Another positive impact related to the financial liabilities at Thiess being included in the HOCHTIEF Group's financial liabilities (EUR 1.7 billion) on the company's consolidation. In total, non-current financial liabilities amounted to EUR 6.6 billion at the 2024 year-end (December 31, 2023: EUR 4.6 billion). Non-current lease liabilities recognized in connection with the application of IFRS 16 amounted to EUR 508 million as of the December 31, 2024 reporting date (December 31, 2023: EUR 326 million). This increase is likewise the result of the consolidation of Thiess and mainly relates to leased mining equipment. At EUR 780 million at the end of 2024, non-current provisions were EUR 162 million higher than at the end of the prior year (EUR 618 million). Of this amount, EUR 298 million (December 31, 2023: EUR 295 million) was attributable to provisions for pensions and similar obligations and EUR 482 million (2023: EUR 322 million) to other provisions.

Current liabilities increased compared to the end of the prior year (EUR 12.0 billion) by EUR 2.9 billion to EUR 14.9 billion as of the December 31, 2024 reporting date. Trade payables and other liabilities increased in 2024 by a net amount of EUR 478 million to EUR 10.6 billion. This was primarily due to the increase from the consolidation of Thiess (EUR 1.1 billion), Group operational activities primarily at Turner and CIMIC, and-conversely-the effect of reclassifying Flatiron's liabilities to liabilities associated with assets held for sale. The EUR 642 million in put options granted to non-controlling interests relate to the put option at Elliott Advisors (UK) Ltd for the sale to CIMIC of the remaining non-controlling interests in Thiess. Current financial liabilities rose by a net amount of EUR 258 million to EUR 787 million in the reporting period January to December 2024 due to ma-turity-related reclassification from non-current financial liabilities and, in the opposite direction, the repayment of maturing promissory note loans. Lease liabilities came to EUR 286 million as of the December 31, 2024 reporting date, compared to EUR 115 million at the end of 2023. This increase was primarily due to the inclusion of Thiess as a consolidated subsidiary. The liabilities associated with assets held for sale in the amount of EUR 1.2 billion relate in their entirety to the reclassification of Flatiron's liabilities in connection with the integration of Flatiron and Dragados in North America.

As of the December 31, 2024 reporting date, the HOCHTIEF Group had net financial debt of EUR 120 million (December 31, 2023: net cash of EUR 872 million). The change here during the reporting period was largely driven by a strong net operating cash flow of EUR 1.5 billion, less cash outflows of around EUR 0.7 billion in connection with strategic capital allocation decisions, including the acquisition of an additional 10\% of the shares in Thiess (EUR 195 million) and the cash outflows from the capital increase at Abertis (EUR 260 million). Added to this are the effects of consolidating Thiess and the resulting inclusion of Thiess' net debt of approximately EUR 1.0 billion in the HOCHTIEF Group. The cash outflow from the dividend distribution to HOCHTIEF shareholders (EUR 331 million) additionally had an impact on net financial debt in 2024. Adjusted for the effects of the consolidation of Thiess, the Abertis capital increase, other strategic M\&A activities, and the dividend distribution to HOCHTIEF shareholders, there would be an increase in the net cash position by EUR 1.0 billion to EUR 1.9 billion.

HOCHTIEF Group net cash (+)/net debt (-) development

(EUR million)	Dec. 31, 2024	Dec. 31, 2023	Change
Turner	3,091.7	2,396.9	694.8
CIMIC	$(1,734.1)$	$(214.2)$	$-1,519.9$
Engineering and Construction	1,174.5	1,038.3	136.2
Corporate	$(2,652.0)$	$(2,348.8)$	$-303.2$
Group	$(119.9)$	872.2	$-992.1$

Securing Group liquidity long-term and optimizing the financial structure Bank financing at HOCHTIEF Aktiengesellschaft

The EUR 1.7 billion syndicated credit and guarantee facility successfully refinanced in March 2023 and maturing in 2028 continues to be one of HOCHTIEF Aktiengesellschaft's most important financing instruments.
The first extension option was exercised in 2024, extending the maturity until March 2029. A EUR 1.2 billion guarantee facility tranche permits the furnishing of guarantees for ordinary activities, mainly in the european business. The EUR 0.5 billion credit facility tranche is used flexibly as needed. As of the reporting date, the credit facility tranche was undrawn. The refinancing included a three-year term loan for an additional EUR 0.3 billion for future refinancing arrangements.

HOCHTIEF Aktiengesellschaft continues to have bilateral, short-term credit facilities to furnish operational units with sufficient cash resources to finance day-to-day business. These facilities, which have to be renewed annually, run to a total of EUR 340 million. They are confirmed for a term of up to one year. Drawings on these shortterm credit facilities were zero as of the reporting date.

HOCHTIEF Aktiengesellschaft's syndicated guarantee facility is supplemented with bilateral guarantee facilities totaling some EUR 1.3 billion as of the 2024 year-end.

The various borrowing instruments secure long-term, broadly diversified funding for the Group on borrowing terms and conditions that continue to be attractive. None of the borrowing instruments taken out by HOCHTIEF is secured and all are pari-passu, with all lenders having equal seniority.

The syndicated and bilateral facilities are supplemented with project-related borrowing as needed. Such borrowings are each negotiated and agreed on the basis of a specific project, can be used solely for the project concerned, and are repaid out of the proceeds at the latest when the project is sold. They are usually secured exclusively against project assets themselves and, in almost all cases, any recourse to the HOCHTIEF Group is expressly precluded.

Capital market financing at HOCHTIEF Aktiengesellschaft

In March 2024, HOCHTIEF Aktiengesellschaft issued a promissory note loan for a total of EUR 470 million . The notes have staggered terms of three, five, seven, and ten years and were taken up by national and international investors.

A EUR 285 million promissory note loan issued in 2017 was repaid on schedule in March 2024.

With a value date of May 31, 2024, HOCHTIEF Aktiengesellschaft issued a EUR 650 million bond on the international capital market with a six-year term and a coupon of $4.250 \%$ p.a. Rating agency S\&P awarded the bond a BBB- investment-grade rating. The issue further diversified and extended the maturity profile of HOCHTIEF's long-term borrowing. In addition, it resulted in a significant expansion of the investor base, especially with regard to investors in the English-speaking world. The proceeds from the issue are to be used for general corporate purposes such as refinancing existing financial liabilities.

Parallel to this bond transaction, a buyback offer was launched on the market for the 2018 HOCHTIEF bond issue maturing in July 2025. The nominal value of the bonds validly tendered and accepted for purchase totaled EUR 96.6 million. At a price of $98.019 \%$, the purchase resulted in a one-time positive income statement effect of approximately EUR 1.9 million. The value date was June 6, 2024. This means the outstanding nominal amount of the bond maturing in July 2025 is EUR 404 million.

As in the reporting year and prior years, HOCHTIEF Aktiengesellschaft will additionally continue to keep a close watch on the financial and capital markets and take advantage of any opportunities to further optimize and diversify the Group's financing.

Financing events in the segments

As in the prior year, there are also local borrowings in the segments.

In March 2024, CIMIC Finance (USA) Pty Ltd, New South Wales, Australia issued a fixed-interest US dollar corporate bond (144a/Reg S) with a term of ten years and a volume of EUR 601 million. The bond carries a coupon of $7.0 \%$ per annum and matures on March 25, 2034. The proceeds were used to repay borrowings in connection with the revolving cash facilities.

At the beginning of October 2024, ahead of schedule, CIMIC refinanced its AUD 475 million cash credit facility maturing in December 2025. In the process, CIMIC arranged a new revolving cash credit facility in the amount of AUD 376 million with a five-year term. Additionally, two term loans were entered into in the amounts of AUD 267 million and USD 130 million, likewise with five-year terms. This made it possible to increase liquidity reserves by a total of approximately AUD 378 million (EUR 226 million).

Thiess refinanced its loans for AUD 2.15 billion (EUR 1.29 billion) maturing in December 2025 ahead of schedule in November 2024. Their refinancing ahead of schedule met with a strong response on the international banking market. The banks offered a total well above the amount needed for refinancing. This and the strong demand on the banking market made it possible to optimize the borrowing terms and increase the volume to a total of AUD 2.52 billion (EUR 1.51 billion). The new financing arrangement has a term of five years and consists of a AUD 700 million (EUR 419 million) credit facility and a AUD 1.82 billion (EUR 1.09 billion) term loan.

On October 25, 2024, ahead of schedule, Turner refinanced its undrawn cash credit facility amounting to USD 400 million maturing in July 2025. The new term is five years.

In August 2024, Flatiron Construction Corporation and several subsidiaries as borrowers entered into a USD 250 million (EUR 241 million) syndicated credit facility with an international banking syndicate; this was subsequently increased to USD 300 million. As before, HOCHTIEF Aktiengesellschaft is the guarantor for the new credit facility. This replaces the previous USD 300 million (EUR 290 million) syndicated facility.

Notably the U.S. surety bonding facility is highly important for the HOCHTIEF companies in North America. It covers an increased total outstanding of approximately EUR 13.7 billion (around USD 14.2 billion) reflecting the dynamic order intake and the related needs; as before, it represents the cornerstone of funding for the U.S. business. Both the Turner group and the Flatiron group use the facility for bonding purposes. The local surety bonding facility continues to be backed by a Group guarantee from HOCHTIEF.

HOCHTIEF Group credit rating

On December 6, 2024, rating agency Standard \& Poor's (S\&P) reaffirmed HOCHTIEF's existing investment-grade rating (BBB-/Stable Outlook/A-3). The S\&P rating for CIMIC also remained unchanged in 2024 at BBB-/A-3. S\&P reaffirmed this rating in August, while rating agency Moody's confirmed its rating of Baa3 (stable) in November 2024.

Sustainable financing at HOCHTIEF ${ }^{1}$

HOCHTIEF defines sustainable financing as all financing and investment decisions that also take environmental, social, and governance (ESG) criteria into account.

Sustainable finance comprises financing and investment activities required to support, among others, the United Nations Sustainable Development Goals (SDGs) and the Paris Climate Agreement. This includes activities that have a positive impact on both the environmental and society.

In close collaboration with Corporate Sustainability, HOCHTIEF Finance department has made further progress on Group's own Sustainability-Linked Financing Framework aiming to connect HOCHTIEF's Sustainability Plan and the Group's funding strategy.

Within the Sustainability-Linked Financing Framework, HOCHTIEF will outline the classification logic, eligibility criteria, applicable due diligence requirements and verification process for its sustainability activities consistently fulfilling respective sustainable finance principles and requirements, which are currently applied in the market.

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[^0]: ${ }^{1}$ The content in this section is not part of the statutory audit of the annual financial statements and consolidated financial statements in accordance with Section 317 of the German Commercial Code.

HOCHTIEF Aktiengesellschaft (Holding Company): Financial Review of Financial Statements under German GAAP (HGB)

HOCHTIEF Aktiengesellschaft heads the Group's segments as a strategic and operational management holding company. Comprising the control level, it is responsible for the entrepreneurial goals, fundamental strategic direction, enterprise policies, and organization of the HOCHTIEF Group.

HOCHTIEF Aktiengesellschaft's profits are mostly determined by net income from participating interests, by net investment and interest income as well as by revenues and expenditure relating to its function as a holding company. This means the business performance of HOCHTIEF Aktiengesellschaft is generally determined by the same opportunities and risks and the business performance of the HOCHTIEF Group. Accordingly, the foregoing information on the HOCHTIEF Group also applies to HOCHTIEF Aktiengesellschaft.

The annual financial statements of HOCHTIEF Aktiengesellschaft are prepared in accordance with the German Commercial Code (HGB) and Stock Corporations Act (AktG). There are no recognition and measurement changes relative to the prior year. The 2024 Annual Financial Statements and Combined Management Report of HOCHTIEF Aktiengesellschaft and the Group are, as in the prior year, published in the Unternehmensregister (Company Register).

Earnings

HOCHTIEF Aktiengesellschaft's reported sales mainly relate to services in connection with performing the functions of a holding company. This primarily comprises remuneration for administration and other services as well as rental income. Sales increased by a total of EUR 16 million to EUR 126 million, in particular due to higher income from bonding fees of EUR 115 million (2023: EUR 94 million). Other operating income came to EUR 43 million-up EUR 16 million on the prior-year figure (EUR 27 million). The increase is primarily due to higher income from exchange rate gains. Personnel expenses fell by EUR 4 million, from EUR 38 million in the prior year to EUR 34 million. The decrease was mainly due to individual service departments being transferred to Group company HOCHTIEF Infrastructure GmbH to further improve efficiency. Other operating expenses, at EUR 83 million, were down EUR 20 million on the prior year (EUR 103 million). This was mainly due to a EUR 18 million year-on-year decrease in foreign exchange losses and EUR 11 million lower writedowns on receivables. Conversely, there was an increase in sundry other operating expenses-principally court, legal, and notary fees.

Net income from financial assets chiefly comprises income and expense from profit/loss transfer agreements as well as income from long-term equity investments. It showed a year-on-year increase of EUR 103 million to EUR 406 million (2023: EUR 303 million). The improvement was mainly due to higher income of EUR 289 million from profit/loss transfer agreements compared to the prior year (2023: EUR 209 million). In addition, expenses from transfer of losses fell by EUR 23 million relative to the prior year (EUR 25 million) to EUR 2 million. At EUR 119 million, income from participating interests remained unchanged relative to the prior year and related in its entirety to Abertis HoldCo S.A.

Net interest income came to a negative EUR 10 million in 2024, compared to a positive EUR 31 million in the prior year. The change mainly related to higher interest expense in connection with bank and capital market financing.

HOCHTIEF Aktiengesellschaft's net profit before changes in reserves amounted to EUR 438 million in 2024 (2023: EUR 268 million).

HOCHTIEF Aktiengesellschaft Statement of Earnings (Summary)

(EUR million)	2024	2023
Sales	125.8	110.5
Other operating income	43.1	27.0
Materials	$(8.0)$	$(12.6)$
Personnel costs	$(33.6)$	$(37.7)$
Depreciation and amortization	$(2.1)$	$(2.0)$
Other operating expenses	$(83.0)$	$(102.8)$
Net income from financial assets	405.7	302.7
Net interest income	$(10.3)$	30.7
Profit before tax	437.6	315.8
Income taxes	1.6	$(50.4)$
Profit after tax	439.2	265.4
Other taxes	$(0.8)$	2.5
Net profit(loss) before changes in reserves	438.4	267.9
Net profit brought forward	11.0	10.1
Changes in retained earnings	$(43.0)$	63.9
Distributable profit	406.4	341.9

Balance sheet

In keeping with its function as a holding company, HOCHTIEF Aktiengesellschaft's balance sheet is dominated by financial assets and receivables from affiliated companies. These items accounted for $91 \%$ of total assets as of the December 31, 2024 reporting date (December 31, 2023: 94\%).

HOCHTIEF Aktiengesellschaft's financial assets of EUR 6.5 billion as of December 31, 2024 (December 31, 2023: EUR 5.4 billion) mostly related to shares in affiliated companies and participating interests. Shares in affiliated companies essentially comprised the carrying amounts of the investments in HOCHTIEF Asia Pacific GmbH, HOCHTIEF Americas GmbH, HOCHTIEF Europe GmbH, and HOCHTIEF Insurance Broking and Risk Management Solutions GmbH. The addition of EUR 1.1 billion in the reporting year was largely due to a capital increase at HOCHTIEF Asia Pacific GmbH, Essen and also at HOCHTIEF Americas GmbH, Essen. Participating interests were unchanged relative to the prior year and chiefly related as before to the shares in Abertis HoldCo S.A.

Inventories, receivables, other assets, and prepaid expenses went down by EUR 709 million to EUR 1.0 billion. Most of this relates to receivables against affiliated companies from intra-Group financial management.

Financial resources came to EUR 727 million as of the December 31, 2024 reporting date (December 31, 2023: EUR 439 million). This primarily relates to bank balances.

The Company's capital stock is divided into 77,711,300 no-par-value bearer shares. At nominal value, and calculated allowing for shares of treasury stock, subscribed capital stood at EUR 193 million, as in the prior year. The capital reserve chiefly comprises the premium on shares issued by HOCHTIEF Aktiengesellschaft and remained unchanged relative to the prior year at EUR 2.1 billion.

The equity ratio stood at $40 \%$ as of the December 31, 2024 balance sheet date (December 31, 2023: 42\%).

HOCHTIEF Aktiengesellschaft Balance Sheet (Summary)

	Dec. 31, 2024	Dec. 31, 2023
Non-current assets
Intangible assets and property, plant and equipment	10.5	11.6
Financial assets	$6,526.3$	$5,419.4$
	$\mathbf{6 , 5 3 6 . 8}$	$\mathbf{5 , 4 3 1 . 0}$
Current assets
Inventories, receivables and other assets, and prepaid expenses	$1,002.7$	$1,712.1$
Financial resources	727.2	438.9
	$\mathbf{1 , 7 2 9 . 9}$	$\mathbf{2 , 1 5 1 . 0}$
Total assets	$\mathbf{8 , 2 6 6 . 7}$	$\mathbf{7 , 5 8 2 . 0}$
Shareholders' equity	$3,316.4$	$3,207.2$
Provisions	295.5	303.9
Liabilities and deferred income	$4,654.8$	$4,070.9$
Total liabilities	$\mathbf{8 , 2 6 6 . 7}$	$\mathbf{7 , 5 8 2 . 0}$

Liabilities and deferred income amounted to EUR 4.7 billion at the 2024 year-end (December 31, 2023: EUR 4.1 billion). Most of the EUR 584 million year-on-year increase related to borrowing in the capital and banking markets during the reporting year. This included a notes issue with a principal amount of EUR 650 million. The proceed from the issue are to be used for general corporate purposes such as the early refinancing of existing financial liabilities. In addition, the issue and repayment of promissory note loans had a net effect in the amount of EUR 185 million. Conversely, the liability in connection with the capital increase at Abertis HoldCo. S.A., Madrid, Spain, in the amount of EUR 260 million, was settled in full by means of a capital contribution to the company.

In respect of the existing EUR 1.7 billion long-term loan syndicated with an international banking syndicate and originally maturing in 2028, HOCHTIEF has exercised the first maturity date extension option to 2029. The total amount is divided into EUR 1.2 billion in guarantee facilities, EUR 0.5 billion in credit facilities. In addition, there is a term loan of EUR 0.3 billion with an agreed term of three years. The term loan was drawn in full. The nominal amount of promissory note loans utilized as of the December 31, 2024 reporting date was EUR 884 million. As before, the EUR 904 million (December 31, 2023: EUR 832 million) in amounts due to affiliated companies is related to intra-Group financial management.

Additionally, the commercial paper program with a ceiling of EUR 750 million launched in May 2020 remained unutilized at the December 31, 2024 reporting date, as was the case at the end of the prior year.

The full list of bond issues is as follows:

	Carrying amount Dec. 31, 2024 (EUR thousand)	Carrying amount Dec. 31, 2023 (EUR thousand)	Principal amount Dec. 31, 2024 (thousand)	Coupon (\%)	Initial term (in years)	Matures
HOCHTIEF AG bond (2024)	666,272	-	EUR 650,000	4.25	6	May 2030
HOCHTIEF AG bond (2021)	502,140	502,140	EUR 500,000	0.63	8	April 2029
HOCHTIEF AG bond (2019)	50,788	50,788	EUR 50,000	2.3	15	April 2034
HOCHTIEF AG bond (2019)	251,027	251,027	EUR 250,000	1.25	12	September 2031
HOCHTIEF AG bond (2019)	104,435	104,435	NOK 1,000,000	1.7	10	July 2029
HOCHTIEF AG bond (2019)	500,822	500,822	EUR 500,000	0.5	8	September 2027
HOCHTIEF AG bond (2019)	44,762	44,762	CHF 50,000	0.77	6	June 2025
HOCHTIEF AG bond (2018)	406,877	504,363	EUR 403,367	1.75	7	July 2025
	2,527,123	1,958,337

HOCHTIEF Aktiengesellschaft's net profit before changes in reserves for 2024 stands at EUR 438.4 million. Deducting the appropriations to retained earnings (EUR 43.0 million) and adding in profit carried forward (EUR 11.0 million), distributable profit stands at EUR 406.4 million.

Executive Board proposal for the use of net profit

The Executive Board proposes a resolution on the use of net profit as follows:

The distributable profit of HOCHTIEF Aktiengesellschaft for 2024 in the amount of EUR 406,430,099.00 will be used to pay a dividend of EUR 5.23 per eligible no-par-value share for the capital stock of EUR 198,940,928.00, divided into $77,711,300$ no-par-value shares.

The dividend is payable on July 7, 2025.

The amount that would have been payable on shares of treasury stock held by the Company as of the day of the Annual General Meeting and that, under Section 71b of the German Stock Corporations Act (AktG), is not eligible for a dividend will be carried forward. As of the date of preparation of the annual financial statements, February 18, 2025, HOCHTIEF Aktiengesellschaft held a total of 2,480,121 shares of treasury stock, which would mean an amount of EUR 12,971,032.83 to be carried forward. The number of no-par-value shares with dividend entitlement for 2024 may change in the run-up to the Annual General Meeting. In that event, while the distribution of EUR 5.23 per no-par-value share with dividend entitlement for 2024 will stay the same, an adjusted proposal for the appropriation of net profit will be made to the Annual General Meeting.

Outlook for HOCHTIEF Aktiengesellschaft (holding company) under German GAAP (HGB)

The performance indicator for HOCHTIEF Aktiengesellschaft under German GAAP (HGB) is net profit. This amounted to EUR 438 million in 2024 (2023: EUR 268 million) which-mainly due to the higher net income from financial assets-was above the forecast for 2024 given in the Group Report 2023 for net profit above the prior year.

For 2025, we expect net profit to be significantly higher than in 2024.

Disclosures pursuant to Section 289 (2) Sentence 2 of the German Commercial Code

The disclosures pursuant to Section 160 (1) 2 of the German Stock Corporations Act are contained in the Notes to the Annual Financial Statements of HOCHTIEF Aktiengesellschaft.

Disclosures pursuant to Sections 289a Sentence 1 No. 1 and 315a Sentence 1 No. 1 of the German Commercial Code
The information on the composition of subscribed capital pursuant Sections 289a Sentence 1 No. 1 and 315a Sentence 1 No. 1 of the German Commercial Code is included in the Notes to the Financial Statements (7, Equity)/the Notes to the Consolidated Financial Statements (24, Equity).

The Executive Board is unaware of any restrictions on voting rights or on transfers of securities within the meaning of Sections 289a Sentence 1 No. 2 and 315a Sentence 1 No. 2 of the German Commercial Code. Holdings of more than $10 \%$ of voting rights within the meaning of Sections 289a Sentence 1 No. 3 and 315a Sentence 1 No. 3 of the German Commercial Code: On November 13, 2023, we were notified by ACS, Actividades de Construcción y Servicios, S.A., Madrid, Spain, pursuant to Section 33 of the German Securities Trading Act (WpHG), that its voting share in HOCHTIEF Aktiengesellschaft amounted to $75.71 \%$ on November 10, 2023.

Disclosures pursuant to Sections 289a Sentence 1 No. 4 and No. 5 and 315a Sentence 1 No. 4 and No. 5 of the German Commercial Code
There are no shares with special control rights. The Executive Board is not aware of any employee shares where the control rights are not exercised directly by the employees.

Disclosures pursuant to Sections 289a Sentence 1 No. 6 and 315a Sentence 1 No. 6 of the German Commercial Code
Appointment and replacement of members of the Executive Board/changes to the Articles of Association: The appointment and replacement of Executive Board members is governed by Sections 84 and 85 of the German Stock Corporations Act (AktG) and Section 31 of the Codetermination Act (MitbestG) read in conjunction with Sections 9 (2) and 7 (1) of the Company's Articles of Association. Statutory rules on the amendment of the Articles of Association are contained in Section 179 et seq. and Section 133 AktG. In instances where the Act requires a majority of the capital stock represented at the time of the resolution in addition to a majority of votes cast, Section 23 (3) of the Articles of Association provides that a simple majority will suffice unless there is a mandatory requirement stipulating a different majority. Under Section 15 of the Articles of Association, the Supervisory Board is authorized to make amendments that only affect the wording of the Articles of Association.

Disclosures pursuant to Sections 289a Sentence 1 No. 7 and 315a Sentence 1 No. 7 of the German Commercial Code

Executive Board authorization to issue new shares: Pursuant to Section 4 (5) of the Articles of Association, the Executive Board is authorized, subject to Supervisory Board approval, to increase the capital stock by issuing new no-par-value bearer shares for cash and/or non-cash consideration in one or more issues by up to a total of EUR 65,752 thousand by or before April 26, 2027 (Authorized Capital I). Detailed provisions are contained in the stated section of the Articles. Pursuant to Section 4 (6) of the Articles of Association, the Executive Board is authorized, subject to Supervisory Board approval, to increase the capital stock by issuing new no-par-value bearer shares for cash and/or non-cash consideration in one or more issues by up to a total of EUR 33,718 thousand by or before April 25, 2026 (Authorized Capital II). Detailed provisions are contained in the stated section of the Articles. Pursuant to Section 4 (4) of the Articles of Association, the Company's capital stock has been conditionally increased by up to EUR 51,200 thousand divided into up to 20 million no-par-value bearer shares (conditional capital). Detailed provisions are contained in the stated section of the Articles.

Authorization to repurchase shares: The Company is authorized by resolution of the Annual General Meeting of April 27, 2022 to repurchase its own shares in accordance with Section 71 (1) 8 of the German Stock Corporations Act (AktG). This authorization expires on April 26, 2027. It is limited to 10\% of the capital stock at the time of the Annual General Meeting resolution or at the time of exercising the authorization, whichever figure is smaller. The authorization can be exercised directly by the Company or by a company in its control or majority ownership or by third parties engaged by the Company or engaged by a company in its control or majority ownership and allows the share repurchase to be executed in one or more installments covering the entire amount authorized or any fraction. Shares of treasury stock may be acquired on the stock exchange, or by way of a public offer to buy made to all shareholders, or by way of a public invitation to tender made to all shareholders, or by

issue of tender rights to shareholders. The conditions governing the repurchase are set forth in detail in the resolution.

By resolution of the Annual General Meeting of April 27, 2022, the Executive Board is authorized, subject to Supervisory Board approval, in the event of a sale of treasury shares effected by way of an offer to all shareholders, to issue subscription rights to the shares to holders of warrant-linked and/or convertible bonds issued by the Company or by any subordinate Group company. The Executive Board is also authorized, subject to Supervisory Board approval, to sell shares of treasury stock other than through the stock exchange and other than by way of an offer to all shareholders, provided that the shares are sold for cash at a price not substantially below the current stock market price for Company shares of the same class at the time of sale.

The HOCHTIEF Aktiengesellschaft Executive Board is further authorized, subject to Supervisory Board approval and the conditions set out in the following, to offer and transfer shares of treasury stock to third parties other than through the stock exchange and other than by way of an offer to all shareholders. Such transactions may take place in the course of acquisitions of business enterprises in whole or in part or of other assets and in the course of mergers. They are likewise permitted for the purpose of obtaining a listing for the Company's shares on foreign stock exchanges where it is not yet listed. The shares may furthermore be offered for purchase by employees or former employees of the Company or its affiliates. Holders of bonds which the Company or a Group company subordinate to it issues or has issued may also be issued with the shares upon exercising the warrant and/or conversion rights and/or obligations attached to the bonds.

On condition that they be held for at least two years after transfer, the shares may also be transferred to (current or past) members of the Executive Board of the Company and to (current or past) members of the executive boards and general management of companies under its control within the meaning of Section 17 of the German Stock Corporations Act (AktG), and to current or past employees of the Company or of a company under its control within the meaning of Section 17 AktG. Such transfers are permitted solely for the purpose of settling the transferees' variable compensation entitlements. Further conditions of transfer are detailed in the resolution. Where shares are issued to members of the Executive Board of the Company, the decision to issue the shares is taken solely by the Supervisory Board.

Shareholders' statutory subscription rights to such shares are barred pursuant to Sections 71 (1) 8 and 186 (3) and (4) of the German Stock Corporations Act (AktG) to the extent that the shares are used in exercise of the authorizations set out above.

In addition, the Executive Board is authorized, subject to Supervisory Board approval, to cancel shares of treasury stock without a further resolution of the Annual General Meeting being required for the cancellation itself or its execution.

The conditions governing awards of subscription rights and the sale, transfer, and retirement of treasury stock are set forth in detail in the Annual General Meeting resolution.

Under a further resolution of the Annual General Meeting of April 27, 2022, the Company is authorized to acquire shares of treasury stock in accordance with Section 71 (1) 8 AktG using equity derivatives as well as to exclude shareholders' rights to sell shares and subscription rights. This is not intended to increase the total volume of shares that may be purchased; instead, it merely opens the way for other alternatives to purchase shares of treasury stock within and against the upper limit set in the aforementioned authorization. The Executive Board has been authorized to acquire options which, when exercised, entitle the Company to acquire shares of the Company (call options). Furthermore, the Executive Board is authorized to sell options which, when exercised by their holder, require the Company to acquire shares of the Company (put options). In addition, the shares can be acquired using a combination of call and put options or forward purchase agreements. Further details of the conditions for the use of equity derivatives in the acquisition of treasury stock and for the exclusion of shareholders' rights to sell and subscription rights are set out in the Annual General Meeting resolution.

Disclosures pursuant to Sections 289a Sentence 1 No. 8 and 315a Sentence 1 No. 8 of the German Commercial Code
Change-of-control clauses in connection with loan agreements and financing instruments:

Instrument	Issue date	Principal amount	Maturity
Bond issue	July 2018	EUR 500 million	July 2025
Bond issue	September 2019	EUR 500 million	September 2027
Bond issue	September 2019	EUR 250 million	September 2031
Bond issue	April 2021	EUR 500 million	April 2029
Private placement	April 2019	EUR 50 million	April 2034
Private placement	June 2019	CHF 50 million	June 2025
Private placement	July 2019	NOK 1 billion	July 2029

The terms of the above bond issues and private placements (based on the contractual framework for the Debt Issuance Program') include change-of-control clauses entitling each holder to require early redemption of the bonds held at their principal amount together with interest accrued, provided that the holder submits a completed exercise notice within 45 days of the issuer publishing the put event notice. A change of control is defined in this context as the acquisition of control within the meaning of Section 29 (2) of the German Securities Acquisition and Takeover Act (WpÜG) over HOCHTIEF Aktiengesellschaft by a party or group of parties acting in concert within the meaning of Section 30 (2) WpÜG-excluding shareholder ACS (ACS Actividades de Construcción y Servicios, S.A.) and its affiliates-or entering into a profit and loss transfer agreement, control agreement, or other intercompany agreement within the meaning of Sections 291 and 292 of the German Stock Corporations Act (AktG) to the extent that the agreement results in the issuer becoming a controlled company.

In March 2017, HOCHTIEF Aktiengesellschaft issued a promissory note loan for EUR 500 million. Further promissory note loans were issued in May 2019 and in October 2022 with initial principal amounts of EUR 300 million and EUR 246 million, respectively. Additionally, HOCHTIEF Aktiengesellschaft issued a bilateral loan for EUR 25 million in June 2019. In December 2023, HOCHTIEF Aktiengesellschaft launched a promissory note loan issue for EUR 64 million. Two promissory note loan tranches totaling EUR 285 million were repaid as scheduled in March 2024. In the same month, HOCHTIEF Aktiengesellschaft issued a promissory note loan for a total of EUR 470 million. The notes have staggered terms of three, five, seven, and ten years. The contractual documentation for these loans likewise includes change-of-control clauses requiring HOCHTIEF Aktiengesellschaft to repay the loan with interest by then accrued if it and the lender concerned do not reach agreement on the loan's continuation within 60 bank working days of announcement of a change of control and the lender demands early repayment in writing within ten bank working days of the 60 bank working-day period expiring. A change of control is deemed to have occurred if, within the meaning of Section 29 (2) of the German Securities Acquisition and Takeover Act (WpÜG), a party (except a member of the ACS Group), or group of parties (except members of the ACS Group) acting in concert within the meaning of Section 30 (2) WpÜG, acquires control of HOCHTIEF Aktiengesellschaft, or if a profit and loss transfer agreement, control agreement, or other intercompany agreement within the meaning of Section 291 or 292 AktG is entered into between a member of the ACS Group and HOCHTIEF Aktiengesellschaft as controlled company.

HOCHTIEF Aktiengesellschaft entered into a syndicated credit and guarantee facility for a total of EUR 1.7 billion with an international banking syndicate on March 30, 2023. Set to run until March 2029, the syndicated facility comprises a EUR 1.2 billion guarantee facility tranche and a EUR 500 million credit facility tranche. The arrangement also contains EUR 300 million in term loans maturing March 2026. The facility includes change-of-control clauses. Lenders may each withdraw from their credit exposure early subject to satisfaction of an agreed condition precedent if negotiations with the borrower to continue the facility have failed, such negotiations having

[^0]
[^0]: ${ }^{1}$ The Debt Issuance Program launched in June 2019 with a maximum volume of EUR 3 billion allows bonds to be issued on the market on an ongoing basis. This enables HOCHTIEF Aktiengesellschaft not only to borrow more rapidly, taking advantage of favorable issue windows, but also to spread borrowing over a broader range of lenders.

given consideration to the credit standing of the party taking control, the risk of any change in corporate strategy, and the risk of the lenders being restricted in any way in provision of the facility. The condition precedent is satisfied if a party, or group of parties acting in concert, secures control of the borrower within the meaning of Section 29 (2) WpÜG. Lenders may give notice of termination of their credit exposure within 70 days of it becoming known to HOCHTIEF Aktiengesellschaft that the condition precedent has been satisfied, subject to a minimum of ten days to consider the options available. As before, the change-of-control clauses outlined do not apply to shareholder ACS and its affiliates.

Other material loan agreements with change-of-control provisions are as follows:

On June 21, 2023, a global credit facility agreement for EUR 100 million was entered into with a German bank. The agreement contains a provision under which, in the event of a change of control, HOCHTIEF Aktiengesellschaft must repay the loan early if it and the lender do not reach agreement on the loan's continuation within 60 days of announcement of the change of control, and the lender demands early repayment within ten days of the 60-day period expiring. In this context, a change of control is defined as a party, or group of parties acting in concert within the meaning of Section 30 (2) WpÜG, acquiring control of HOCHTIEF Aktiengesellschaft within the meaning of Section 29 (2) WpÜG. The outlined change-of-control clauses for the aforementioned loan agreement do not apply to shareholder ACS and its affiliates.

In August 2024, HOCHTIEF Aktiengesellschaft as guarantor together with Flatiron Construction Corporation and several subsidiaries as borrowers entered into an approximately EUR 290 million (USD 300 million) syndicated credit facility with an international banking syndicate that features a substantively identical change-of-control stipulation, corresponding with the definition in the March 2023 syndicated credit and guarantee facility, under which each creditor has the right to demand early repayment of the loan amount.

Likewise in August 2019, HOCHTIEF Aktiengesellschaft, again acting as guarantor, entered into a bilateral guarantee facility together with Flatiron Construction Corporation for approximately EUR 101 million (CAD 150 million). The agreement contains a change-of-control provision that gives the creditor the right to early termination in the event of a change of control (defined analogously to the above-mentioned January 2019 global credit facility agreement) if HOCHTIEF and the bank do not, within 60 days of immediate notification of the change of control, reach agreement on continuing the contractual relationship.

To secure an approximately EUR 13.7 billion (USD 14.2 billion) bonding line provided by six U.S. surety companies, a general counter indemnity continued to exist between HOCHTIEF Aktiengesellschaft and the surety companies for a corresponding amount as of the reporting date. As before, this general counter indemnity contains a change-of-control provision giving the surety companies the right, if an agreed condition precedent is satisfied, to demand from HOCHTIEF Aktiengesellschaft up to approximately EUR 483 million (USD 500 million) by way of security. The condition precedent is satisfied if a party, or group of parties acting in concert within the meaning of Section 30 (2) WpÜG (with the exception of shareholder ACS and its affiliates), acquires in total 30\% or more of all shares in HOCHTIEF Aktiengesellschaft. The security payment must then be made within 30 bank working days of notification that it is required.

Further material agreements conditional on a change of control: A change in majority ownership by direct or indirect acquisition of HOCHTIEF Aktiengesellschaft is defined in the D\&O insurance policy as a risk-related circumstance of which the insurer must be notified within a specified period. Material change in risk circumstances entitles the insurer to demand a premium adjustment. In the event that the parties are unable to agree on the amount of the premium adjustment, the insurance cover lapses in regard of the risk-related circumstance.

Above and beyond the mandatory disclosures under Sections 289a Sentence 1 No. 8 and 315a Sentence 1 No. 8 of the German Commercial Code, other Group companies are party to further agreements that are conditional upon a change of control. The following is a non-exhaustive presentation: In the PPP segment, project contracts frequently accord the client substantial rights that make it difficult to effect a change of ownership structure in the project company.

Disclosures pursuant to Sections 289a Sentence 1 No. 9 and 315a Sentence 1 No. 9 of the German Commercial Code
As of the balance sheet date, there are no agreements with members of the Executive Board or employees providing for compensation in the event of a takeover offer.

INTUIT DOME, INGLEWOOD, USA

The new home of the Los Angeles Clippers basketball team relies on sustainability, technology, and visitor experience. Turner completed the Intuit Dome with partners in two years.

Segments Turner

Turner, our North American-based, advanced-tech building solutions company, is an international construction services company and a leading builder in diverse market segments. The company has earned recognition for undertaking large and complex projects, fostering innovation, embracing emerging technologies, and making a difference for its clients, employees, and community. Turner offers clients the accessibility and support of a local firm with the stability and resources of a multi-national organization.

The company is the biggest U.S. general builder-a position the company achieves by virtue of its technical expertise, experience in its market segments, and innovative work that results in high-quality project outcomes. With its low-risk construction management activities, Turner is a leading provider in several building construction market segments including healthcare, data centers, education, commercial offices, airports, sports stadiums, and sustainable green buildings as recognized by the Engineering News-Record (ENR) magazine once again in 2024.

New York City-based Turner primarily operates on the basis of a low-risk construction management contracting model. As part of its strategy, Turner is successfully pursuing opportunities in advanced technology markets such as data centers. More generally, the company delivers services on building projects of all types and sizes throughout North America and around the world.

In July 2024, Turner announced the acquisition of Dornan, the Irish headquartered engineering group, which is a leading European specialist with operations in Ireland, the UK, Continental Europe, and the Nordics. It delivers services on complex large-scale projects for blue-chip clients predominantly in the advanced technology sector. The acquisition will accelerate Turner's growth strategy in Europe, where the company has identified around EUR 20 billion of advanced technology project opportunities. Turner has already received approval from the European Commission for the acquisition of Dornan and the transaction has been closed in January 2025.

Turner generates the vast majority of its sales in the non-residential building construction market in the United States. Solid and above-average real growth rates are forecast for sectors where Turner has a strong presence, notably in manufacturing, healthcare, education and transportation. ${ }^{1}$ The data center construction market, which has become one of Turner's largest market segments in its backlog, has an expected compound annual growth rate 2023-29 of 11.7\% driven by demand from hyperscalers, growth in edge computing and the roll-out of Artificial Intelligence applications. ${ }^{2}$

The outlook for the market is generally positive. Construction starts for the non-residential sector in the United States are forecast to grow 6\% in 2025 and 5\% 2026. ${ }^{3}$

Turner Key Figures

Turner continued to deliver an outstanding performance in FY 2024.
Sales of EUR 19.3 billion were 19\% higher year on year. Operational PBT of EUR 570 million showed a very strong increase of $37 \%$ year on year, and was well ahead of the guidance range of EUR 460-510 million indicated at the beginning of 2024. The operational PBT margin also increased significantly to $3.0 \%$ versus $2.6 \%$ in FY 2023, in line with Turner's target. Margin expansion is mainly being driven by Turner's successful strategy on advanced-technology project opportunities and SourceBlue supply chain services solutions. The acquisition of Dornan Engineering, a rapidly growing advanced-tech engineering business, further enhances Turner's growth prospects going forward.

[^0]
[^0]: ${ }^{1}$ FMI, 2024 North American Engineering and Construction Outlook, Fourth Quarter Edition, October 2024
${ }^{2}$ Anston, U.S. DATA CENTER CONSTRUCTION MARKET - INDUSTRY OUTLOOK \& FORECAST 2024-2029, May 2024
${ }^{3}$ Dodge Construction Network, Construction Market Forecasting Service, Fourth Quarter 2024, November 2024.

New orders of EUR 24.4 billion rose by EUR 5.8 billion year on year, or 31\% driven by strong project winsparticularly in the advanced-technology sector. The order backlog reached a new record level of EUR 31.9 billion and was 30\% higher than a year ago.

Turner Outlook

For 2025, our guidance is an operational profit before tax of EUR 660-750 million, representing a significant increase of between $16 \%$ and $32 \%$ year on year, subject to market conditions.

Turner: Key Figures

(EUR million)	2024	2023	Change yoy
Sales	19,264.3	16,184.9	$19.0 \%$
EBITDA (adjusted)	550.6	433.1	$27.1 \%$
Operational profit before tax/PBT	569.5	415.7	$37.0 \%$
Operational PBT margin (\%)	3.0	2.6	40 bps
Operational net profit	414.3	294.8	$40.5 \%$
Nominal profit before tax/PBT	565.2	415.7	$36.0 \%$
Nominal net profit	411.2	294.8	$39.5 \%$
Operating cash flow	765.9	513.6	252.3
Net operating cash flow	712.3	457.9	254.4
Net cash $(+)$ /net debt $(-)$	3,091.7	2,396.9	694.8
New orders	24,383.0	18,595.0	$31.1 \%$
Order backlog	31,930.0	24,581.3	$29.9 \%$

Note: Operational profits are adjusted for non-operational effects

Project highlights: New contracts in $2024{ }^{1}$
Advanced-technology growth markets
A key business segment in the field of advanced-technology growth markets are services related to the construction of data centers. The total volume of data center projects secured by Turner in the reporting period amounted to approximately EUR 6.2 billion (USD 6.7 billion).

Turner has begun work on a EUR 1.9 billion project to expand Vantage Data Centers' campus in New Albany, Ohio. The campus is Vantage's first project in the Midwest and will provide secure and reliable infrastructure for cloud technologies and artificial intelligence. The data center will be built in alignment with Turner and Vantage's sustainability goals and will seek to achieve LEED Silver accreditation.

In addition, Turner, with partners, announced to build Meta's newest data center in Richland Parish, Louisiana. This custom-designed campus will be Meta's largest data center to date. It will play a vital role in accelerating Meta's AI progress. Once completed, the Richland Parish Data Center will represent an investment of more than EUR 9.2 billion in Louisiana.

[^0]
[^0]: ${ }^{1}$ The content in this section is not part of the statutory audit of the annual financial statements and consolidated financial statements in accordance with Section 317 of the German Commercial Code (HGB).

Turner will build a hyperscale data center for Meta in Jeffersonville, Indiana. The campus will have multiple data center buildings and will be part of Meta's global infrastructure. Once completed, the Jeffersonville Data Center will represent an investment of more than EUR 738 million. It will be built with efficiency, flexibility, and sustainability in mind and targets LEED Gold certification.

Turner has completed a new lithium-ion battery manufacturing facility for Forsee Power, marking the French company's first U.S. location. The facility in Columbus, Ohio, is a major step in expanding Forsee Power's production capacity to serve the growing electric vehicle (EV) market across North America. The state-of-the-art facility will be used for research, development, and the manufacturing of EV batteries for a range of vehicles.

Building construction

At San Francisco International Airport, Turner together with partners has started works for the Terminal 3 West Modernization project. Turner will lead the EUR 2.4 billion project scheduled to open in fall 2027. The team will expand and renovate Terminal 3, and construct a new six-story building that will house airline lounges and operational office space. The project aims to achieve LEED Platinum certification.

In Detroit, Michigan, Turner in a joint venture is working on Henry Ford Health's expansion project "Destination: Grand". The new hospital facility will feature, among others, a patient tower, an expanded emergency department with trauma and behavioral healthcare space, laboratories, intensive care units, and operating suites. With a total volume of around EUR 2.0 billion, it is the single largest healthcare investment in Detroit history.

Turner, in association with partners, delivers a project at Nationwide Children's Hospital in Columbus, Ohio. With a total volume of EUR 1.1 billion, the project includes a building for inpatient beds, expansion of the campus's central energy plant and an underground car park.

Another health project is being built by Turner in a joint venture in San Antonio, Texas, with a total volume of approximately EUR 509 million: Palo Alto Hospital will be a state-of-the-art, five-story hospital that will include an emergency room, labor and delivery suites, neonatal intensive care unit, operating rooms, inpatient rooms, and an attached Medical Office Building. The hospital is expected to be open to patients in 2027.

Turner is constructing the new Medical Education Building at the University of California in Merced. Completion for the four-story building is slated for fall 2026.

Turner was selected to build an approximately EUR 170 million agriculture research building for the University of Kentucky in Lexington. The building will contain laboratory and office space as well as a 250 -seat auditorium and is expected to be completed in 2027. Turner has already worked on more than 20 projects for the University of Kentucky.

As a part of the Tennessee Builders Alliance (TBA) consortium, Turner is delivering the construction of the New Nissan Stadium for the NFL team Tennessee Titans in Nashville. The multi-purpose arena is being built in accordance with LEED Gold criteria; the total value of the project is around EUR 1.9 billion.

As general contractor, Turner will build New York City's first ever soccer-specific stadium for New York City Football Club. Located in Queens, the stadium is scheduled to open in 2027 and will seat around 25,000 spectators. It is planned to be the first all-electric soccer stadium in the USA. Other sustainable elements include solar cells on the roof and a rainwater collection system under the pitch. In addition, 2,500 housing units, a 650-seat public school and a hotel will be built.

With the Ryan Field in Evanston, Illinois, Turner is constructing a stadium that will serve to host Northwestern University football games and community events. The stadium is expected to have a capacity of 35,000 seats and special event capacity expandability. It will include suites, lodge seats, club and other premium seating products as well as state-of-the-art video and scoreboards. It will include a community park and public greenspaces for residents.

In Boston, Massachusetts, Turner is responsible for construction of the Fan Pier H project, comprising 122 condominiums over 14 floors. This represents the final part of the large-scale Fan Pier project, in which Turner has already played a major role.

WEST GATE TUNNEL, MELBOURNE, AUSTRALIA

With the West Gate Tunnel proact, CPB Contractors is working with partners on one of the largest inner-city road projects in Victoria. It will enable faster, safer travel and permantenly divert truck traffic from residential streets.

CIMIC

CIMIC Group is an engineering-led industrial, energy, natural resources and civil infrastructure business. In Australia and the Asia-Pacific, CIMIC is the only company servicing the full life cycle of infrastructure and resources assets-from development and investment through construction to operations and maintenance.

CPB Contractors focuses on infrastructure projects in Australia and New Zealand. The company notably delivers large-scale projects in key sectors of the construction industry, including roads, rail, tunneling, defense, building, renewables, and resources infrastructure.

UGL is a leader in the provision of industrial services for the energy, resources, and transportation sectors, as well as asset management services. The company's services include project management, mechanical and electrical engineering as well as operations and maintenance for projects in the fields of power generation and transmission, rail systems, locomotive manufacturing, and shutdown services.

CIMIC Group company Sedgman is a provider of integrated mineral processing solutions. In project and operating services, the focus is on the commodities lithium, gold, copper and base metals, critical minerals, iron ore, coal, and potash. For this purpose, Sedgman offers flexible delivery models to suit diverse environments. Sedgman provides solutions from initial concept through feasibility studies to detailed engineering design.

Leighton Asia is a leading construction contractor in Asia. The company operates in Hong Kong, where it also has its headquarters, as well as in Macau, Singapore, the Philippines, Malaysia, and India. It implements tunnel, rail, and road networks as well as advanced-technology projects such as data centers.

Pacific Partnerships is a developer and investor for infrastructure, digital and energy assets. The company has a high level of expertise in road, rail, education, health, data centers, energy systems, and security.

In April 2024, CIMIC Group entered into an agreement with funds advised by Elliott Advisors (UK) Ltd regarding the acquisition of an additional 10\% equity interest in Thiess which increased CIMIC's ownership in the natural resources service provider to $60 \%$. As a consequence, Thiess is now a consolidated subsidiary. In collaboration with customers, Thiess provides comprehensive services for the commodities industry in Australia, Asia, and the Americas. For more than 80 years, Thiess has worked with a variety of commodities, geologies, environments, and cultures. In May, Thiess acquired 100\% of PYBAR, based in New South Wales, Australia. A leader in metalliferous underground hard rock mining, the services company manages projects in Queensland, New South Wales, and Tasmania.

The overall market outlook for CIMIC is broadly positive. In Australia, non-residential construction spending is expected to increase $7.2 \%$ in 2025. In transportation infrastructure, the Australian Government continues to invest in major capital city rail and road projects and regional upgrade works. Government investment in healthcare and hospitals is also expected to see ongoing growth in healthcare construction. ${ }^{1}$ The construction sector in Southeast Asia is one of the fastest growing globally, with broad-based growth across all sectors, especially infrastructure, utilities and energy. In 2025, the Southeast Asian construction sector is expected to grow by 8.9\%. ${ }^{2}$ The Australian outsourced maintenance and services market continues to benefit from infrastructure investments to support population changes and aging assets. Also, asset owners are increasingly outsourcing infrastructure maintenance and services. In 2025, this market is expected to grow by $3.9 \%$, with across-the-board sector growth. ${ }^{3}$ Australia is a major producer and exporter of key commodities and remains an increasingly important

[^0]
[^0]: ${ }^{1}$ Macromonitor, Australian Construction Outlook Series, January 2025
${ }^{2}$ GlobalData, Construction Database, December 2024
${ }^{3}$ Oxford Economics, Maintenance in Australia, May 2024

global source of critical minerals. Production across most major commodities is expected to rise, with gold and critical minerals such as copper and lithium expected to experience the strongest production and export growth. ${ }^{1}$

CIMIC key figures

CIMIC delivered a solid performance in FY 2024 achieving sales of EUR 10.2 billion, at a similar level to 2023, on a comparable basis, with strong growth in strategic market segments, particularly in data centers, energy transition projects and social infrastructure. The FY 2023 comparable figures adjust for the full consolidation of Thiess from May 2024. Operational PBT of EUR 450 million was up 6\% on a comparable basis and towards the top end of the EUR 420-460 million guidance range provided at the beginning of the year. The nominal consolidated net profit of EUR 410 million includes a non-cash gain from the remeasurement at fair value of CIMIC's existing 50\% investment in Thiess (EUR 593 million); net of project risk provisions (EUR 446 million), this amounts to EUR 147 million.

New orders of EUR 12.8 billion were secured during 2024 with a robust order backlog at year-end of EUR 24.0 billion, an increase of $23 \%$ compared to prior year, due to the full consolidation of Thiess.

CIMIC Outlook

We expect CIMIC to achieve an operational profit before tax/PBT for 2025 in the range of approximately EUR 480-510 million (AUD 800-850 million), subject to market conditions.

[^0]
[^0]: ${ }^{1}$ Department of Industry Science and Resources, Resources and Energy Quarterly, December 2024

(EUR million)	2024	2023 comparable	Change yoy
Sales	10,212.5	10,572.5	$-3.4 \%$
EBITDA (adjusted)	1,197.5	1,132.0	$5.8 \%$
Operational profit before tax/PBT	449.8	426.1	$5.6 \%$
Operational PBT margin (\%)	4.4	4.0	40 bps
Operational net profit	263.3	244.6	$7.6 \%$
Nominal profit before tax/PBT	475.5	409.9	$16.0 \%$
Nominal net profit	409.9	245.6	$66.9 \%$
Operating cash flow	700.3	606.0	94.3
Net operating cash flow	230.3	79.9	150.4
Net cash $(+)$ /net debt $(-)$	$(1,734.1)$	$(1,110.6)$	$-623.5$
New orders	12,848.6	13,444.4	$-4.4 \%$
Order backlog	24,008.8	24,021.0	$-0.1 \%$

Project highlights: new contracts in $2024^{1}$

Advanced-technology and energy transition growth markets

CIMIC Group company Pacific Partnerships has acquired the development rights for the 700 MWac Cobbora Solar Farm and co-located large-scale battery energy storage system (BESS) project in New South Wales which, when developed, will be one of the largest solar farms in Australia. The company will develop, invest in, and manage delivery and operations of the project, located across a 3,000-hectare site near Dubbo. UGL will undertake early works, develop the project solution, and provide operation and maintenance services once completed.

UGL has been awarded a contract by long-standing client Neoen to construct and install the 341 megawatt/1,363 megawatt-hour Collie Battery Stage 2 project in Western Australia. This builds on the 219 megawatt/877 megawatt-hour Stage 1 currently being installed by UGL which commenced operations in the fourth quarter of 2024. UGL will prepare the site for the installation and connection of 348 Tesla Megapack 2XL units. Works include the installation of high-voltage infrastructure, control and switchroom facilities, safety protection measures, earthworks, and footings.

UGL has also been appointed to design and construct Stage 2 of the Western Downs Battery in Queensland for Neoen. There, the company will install a 270 megawatt/540 megawatt-hour battery energy storage system (BESS) and the high-voltage infrastructure to connect it to the grid. Comprising 140 Tesla Megapack 2XL units, the BESS is expected to start operations in 2026. UGL is currently constructing Stage 1 of the battery with the same capacity.

Leighton Asia has been selected to fit out a data center in Jakarta, Indonesia. The project is for an existing client - a multinational technology corporation-and is located within a data center campus that Leighton Asia successfully delivered in 2023. Work involves fitting out the data center to support an additional ten-megawatt IT load. The company has additionally been selected by a multinational technology corporation to construct a data center in Hyderabad, India. The project is the second awarded to Leighton Asia by this major client. These contracts add to Leighton Asia's growing portfolio of data centers in the region.

[^0]
[^0]: ${ }^{1}$ The content in this section is not part of the statutory audit of the annual financial statements and consolidated financial statements in accordance with Section 317 of the German Commercial Code (HGB).

Construction and industrial services

Under a joint venture, Leighton Asia has been selected by the Hong Kong Hospital Authority to undertake the EUR 2.6 billion North District Hospital expansion project. This project, which will generate revenue of up to EUR 1.5 billion for Leighton Asia, will elevate the health infrastructure in the North District of Hong Kong and provide around 1,500 additional hospital beds.

CPB Contractors has been selected by the Australian Government's Department of Defence to undertake the Army Aviation Program of Works at the Royal Australian Air Force (RAAF) Base Townsville. Works will include the upgrade or rebuild of infrastructure and facilities in Townsville, Queensland. The design stage commenced in early 2024 and, subject to government approvals, will transition to construction in mid-2025, taking three years to complete. In terms of contract value, the project runs to some EUR 224 million.

In addition, CPB Contractors has secured the contract from Australia Pacific Airports (Melbourne) to deliver stage two of the Melbourne Airport Naarm Way Project, encompassing a road and forecourt works. This is the second project to be delivered by CPB at Melbourne Airport, following the award of the Qantas T1 Security and Screening Project in late 2023. The two projects will generate revenue of approximately EUR 161 million for the CIMIC Group company.

CPB Contractors has been selected by the Federal and the South Australian governments to deliver the Tram Grade Separation Projects in an alliance with partners. Designed to improve the safety, efficiency, and reliability of transport, the projects will also improve amenity, connectivity, and livability along the existing tram line between Adelaide's CBD and a suburb. The project will generate revenue of approximately EUR 128 million.

Likewise in South Australia, CPB Contractors has been selected by the South Australian Government, as part of the Fleurieu Connections Alliance, to deliver Stage 2 of the Main South Road Duplication Project. The contract is for approximately EUR 123 million. Including the delivery of a six-kilometer duplication road between Aldinga Road and Sellicks Beach Road in the south of Adelaide, this extension project will improve safety, traffic flows, and connectivity for the Southern Fleurieu community.

CPB Contractors has been selected by the New South Wales Government to deliver the design, early works, and delivery phases for redeveloping the Royal Prince Alfred Hospital at Camperdown in Sydney. Construction is set for completion in 2028.

CPB Contractors has been awarded a contract by Sunwater for a dam wall replacement project in Queensland with a partner. This infrastructure project, located downstream of Paradise Dam on the Burnett River, will provide the region with a long-term water security and storage solution. CPB Contractors' world-class technical expertise combined with decades of dam design and construction experience will ensure that the project's objectives and stringent safety criteria are achieved.

Leighton Asia has secured the contract for the reconstruction of Choa Chu Kang Waterworks in Singapore by PUB, Singapore's National Water Agency. It is the country's second-largest waterworks.

UGL has been awarded a contract with energy company Santos to provide brownfields construction services for the Darwin LNG Life Extension project. This new contract further strengthens UGL's presence within the Northern Territory and follows the announcement in 2023 of a contract with the Department of Defence to provide strategic advice, planning, supply management, operations, and maintenance for the Australian Defence Force's fuel network in the Northern Territory.

Natural resources

The Thiess-Khishig Arvin Joint Venture has secured a new contract to provide mining services at the Oyu Tolgoi copper and gold project in Mongolia. The scope of work for the three-year contract includes executing underground ground support and development work.

In Queensland, Thiess has been awarded a four-year contract extension with BHP Mitsubishi Alliance (BMA) for the Caval Ridge mine operations. Generating revenue of EUR 359 million, the extension continues Thiess' relationship with BMA at Caval Ridge, which commenced in December 2017.

Thiess has been awarded a contract extension with BHP for the Mount Arthur South mine in New South Wales. With revenue of EUR 1.2 billion, the contract sees Thiess continuing to provide mining services at the mine, operating and maintaining mining equipment to support BHP's production requirements, and working with BHP and the local community toward the planned mine closure.

Thiess has been awarded a three-year, EUR 137 million contract by Vale Base Metals for the Stobie Open Pit Mining Project in Ontario, Canada. Last mined in 2017, the project is being ramped up in response to growing global demand for critical minerals. Thiess will implement the latest technology to allow the effective extraction of minerals from lower-grade deposits and work collaboratively with local First Nations businesses.

TIMBER PIONEER, FRANKFURT, GERMANY

Trailblazing: The Timber Pioneer in Frankfurt am Main's Europaviertel is the first timber-hybrid office building in Germany's finance hub. The eight-story building whose core and shell were delivered by HOCHTIEF provides space for offices and retail outlets.

Engineering and Construction

Our Engineering and Construction segment encompasses HOCHTIEF's activities in Europe plus Flatiron.

HOCHTIEF Europe comprises our European activities that are delivering sustainable solutions in energy transition as well as digital, social, and transportation infrastructure. It specializes in the entire asset and infrastructure project life cycle, from feasibility studies and design, planning, and investment to construction, operation, and maintenance. The primary focus is on the German, Polish, Czech, Slovakian, Austrian, UK, Scandinavian, and Dutch markets. HOCHTIEF maintains a strong reputation for its in-depth engineering expertise, high quality standards, and capable workforce.

HOCHTIEF Infrastructure executes transport, energy, data center, EV battery, and building construction projects, providing services for all phases of project implementation. In this way, HOCHTIEF Infrastructure paves the way for sustainable, well-conceived infrastructure growth in Germany and across Europe-for instance, through the construction of new buildings, bridges, roads, rail infrastructure, tunnels, airports, and maritime port facilities.

HOCHTIEF PPP Solutions provides services for public-sector clients covering all phases of the infrastructure project life cycle-from design and finance to construction and operation. In close collaboration with other HOCHTIEF units, projects are executed efficiently and systematically. Likewise under the umbrella of HOCHTIEF PPP Solutions, we develop innovative "smart city" concepts. These include the development and sustainable construction of data centers and charging stations for electric vehicles-in all instances based on a full life cycle approach and a long-term perspective.

Flatiron is our civil engineering specialist in North America, providing innovative infrastructure solutions in the U.S. and Canada. The company's strategy is to leverage existing relationships and to secure contracts with a balanced risk profile, increasingly focusing on partnering models. Headquartered in Broomfield, Colorado, Flatiron places emphasis on all major infrastructure construction segments, including highways and bridges, aviation, rail and transit, dams and water treatment facilities as well as civil engineering projects. Through its subsidiary, E.E. Cruz, Flatiron is also engaged in infrastructure construction in the northeastern United States, with a primary focus on the New York and New Jersey market, where it executes projects in the resilience, water supply, transit, deep foundation, bridge, and geoengineering sectors. In 2024, Flatiron was placed among the top ten in the following Engineering News-Record (ENR) rankings in the United States: Transportation, Bridges, Mass Transit and Rail, Highways, Airports, and Dams and Reservoirs.

In July 2024, HOCHTIEF and majority shareholder ACS agreed to combine the North American companies Flatiron and Dragados into the second-largest provider of civil engineering and construction services in the United States. The new company will boast unique experience, references, geographic reach, and engineering capabilities for large infrastructure construction projects. Designed to support further growth in the rapidly expanding North American civil engineering market, the combination offers huge potential for generating value. The transaction was finalized in January 2025 and HOCHTIEF holds a $38.2 \%$ equity-accounted interest in the new entity.

In Europe, civil engineering is the best performing market driven by the pressing need for upgrades in transportation and energy infrastructure. Furthermore, these investments are crucial to meet new demands and political goals. New civil engineering projects are expected to grow significantly in 2025 and 2026. The European nonresidential building construction market is expected to return to growth in 2025. Following a challenging period, new investments are expected to be especially strong in public-funded market segments while incentives and structural policies encouraging energy efficiency investments will create consistent push for renovation activities across the sector. In North America, the civil infrastructure construction market is expected to see the highest real growth rates within the wider construction market at $5 \%$ in 2025 and $3 \%$ in 2026. Policies will continue to

support infrastructure investment and the current funding picture indicates several years of momentum and support across power, highway, streets and water sectors. ${ }^{1}$

Engineering and Construction key figures

Our Engineering and Construction activities show a positive performance during FY 2024.
Sales of EUR 3.6 billion increased by 10\% year on year with growth driven by both the Europe business and Flatiron's North American activities. The operational PBT of EUR 88 million in FY 2024 was consistent with the EUR 80-95 million guidance given for the segment in early 2024 and showed 7\% growth year on year with stable margins.

New orders of EUR 4.4 billion were secured during FY 2024. This corresponds to a book-to-bill of around 1.0x. The prior-year figure contained two major project wins in Europe worth over EUR 1 billion. The period-end order book stood at EUR 11.6 billion up $4 \%$ year on year.

Engineering and Construction Outlook

For 2025, we expect to achieve an operational profit before tax of EUR 85 million to EUR 95 million, subject to market conditions.

(EUR million)	2024	2023	Change ycy
Sales	3,628.8	3,301.8	$9.9 \%$
EBITDA (adjusted)	178.9	182.2	$-1.8 \%$
Operational profit before tax/PBT	88.2	82.5	$6.9 \%$
Operational PBT margin (\%)	2.4	2.5	-10 bps
Operational net profit	64.3	60.3	$6.6 \%$
Nominal profit before tax/PBT	62.3	56.7	$9.9 \%$
Nominal net profit	40.4	35.7	$13.2 \%$
Operating cash flow	654.8	713.0	$-58.2$
Net operating cash flow	576.3	632.7	$-56.4$
Net cash (+)/net debt (-)	1,174.5	1,038.3	136.2
New orders	4,395.4	6,195.3	$-29.1 \%$
Order backlog	11,645.5	11,238.2	$3.6 \%$

Note: Operational profits are adjusted for non-operational effects

[^0]
[^0]: ${ }^{1}$ FMI, 2024 North American Engineering and Construction Outlook, Fourth Quarter Edition, October 2024

Project highlights: new contracts in $2024^{1}$

Advanced-technology growth markets

HOCHTIEF and German server and storage systems provider Thomas-Krenn.AG have established Yorizon, a joint venture that will provide secure, sustainable, high-performance cloud computing solutions. The goal is to create a network of sustainable, decentralized, and locally integrated data centers in Europe. Summer 2025 will see the first data center open in the form of the Yexio project in Heiligenhaus, Germany. There are plans to expand the collaboration with Palladio to 15 data centers in the next few years. The next four sites are already under preparation.

As general contractor, HOCHTIEF is constructing a production building in Berlin, Germany, for a Dutch company from the semiconductor industry. The new five-story building including cleanrooms is set to start operations in 2025.

Construction and services

Europe

Likewise in Berlin, construction has begun on Siemensstadt Square-one of Europe's largest urban development projects, where some 35,000 people will live and work. Construction of the innovative and sustainable project extending over 76 hectares is phased through to 2027. The first construction phase-the future gateway to the new precinct comprising an atrium, a 60-meter hybrid timber tower, and an information pavilion-is slated for completion within the next two years. Project risks are minimized through integrated project delivery (IPD), in which all parties take advantage of opportunities for early, close, and results-oriented collaboration right from the design phase.

HOCHTIEF is building two hotels for the Amano Group in the German cities of Hamburg and Munich. The first is a 192-room hotel with restaurant and conference facilities to be constructed by HOCHTIEF in a prime location near the center of Hamburg. DGNB Gold certification is targeted, including through the use of carbon-reduced concrete. The second, a new building on the corner of Schwanthalerstrasse and Sonnenstrasse in Munich, includes stores and an underground parking garage.

In another Hamburg project, HOCHTIEF is working with joint venture partners on basic repairs to the Salzgitterkai quay. The aim of the project is to renew the dikes and quay walls over a length of around 745 meters. Under the integrated project alliance contract model agreed by the consortium and the client, all parties involved work closely together right from the design phase to minimize project risks.

HOCHTIEF has been awarded two more infrastructure contracts in Germany: The Berkersklamm and Kisselhöhe tunnels are part of the planned B38 bypass around Mörlenbach, south of Frankfurt am Main. They will be driven using a combination of blasting and excavation. At 380 meters in length, the Berkersklamm tunnel is scheduled for completion in the fall of 2026. The 550-meter Kisselhöhe tunnel is slated for handover in the spring of 2027.

In Poland, HOCHTIEF is delivering two residential projects in Warsaw, including the new Fabrica Ursus A1 housing development with apartments and restaurants. The development is being built on a former factory site and will preserve the facility's industrial flair. As part of the project, an old factory hall is also to be renovated.

In Olomouc, Czech Republic, HOCHTIEF is constructing a new building on the university hospital campus as part of a joint venture. The contract for the public-sector client includes fitting out the accident and emergency department and constructing connecting corridors to an existing building.

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[^0]: ${ }^{1}$ The content in this section is not part of the statutory audit of the annual financial statements and consolidated financial statements in accordance with Section 317 of the German Commercial Code (HGB).

North America

In Seattle, Washington, Flatiron is delivering a major water infrastructure project with a total value of approximately EUR 165 million. The project includes building a new pump station and microtunnel conveyance for diverting, collecting, and pumping combined sewer and stormwater runoff.

As part of a joint venture, Flatiron is carrying out infrastructure works in North Carolina. Flatiron's share of the project amounts to approximately EUR 140 million. The works will improve traffic safety and efficiency and aim to be completed ready for the 2029 U.S. Open Golf Championships in Pinehurst. This contract award follows a successful preconstruction phase in which the project partners completed important preliminary work.

Flatiron is delivering improvements on Interstate Highway 35 and construction of the FM 664 bridge in Ellis County, Texas. As part of the project, IH-35E will gain widened frontage roads as well as new entrance and exit ramps. The scope of the project also includes reconstruction of frontage road driveways and side streets. The contract value is approximately EUR 127 million.

Likewise in Texas, Flatiron has started work on the Runway 13L-31R RSA project at Dallas Love Field Airport. The team is to reconstruct Taxiway A and construct a vehicle service road around the northwest end of Runway 13L-31R. Flatiron is already in place for a project at this airport.

Public-private partnerships

In Scotland, HOCHTIEF has been awarded a major contract for at least EUR 190 million by North Lanarkshire Council. The contract covering maintenance, repair, and investment services for roads and infrastructure has a minimum term of eight years, extendable to up to twelve.

HOCHTIEF has been awarded the contract to design, build, finance, and operate a student village for Staffordshire University in the UK. Scheduled for completion in 2026, the PPP project will see around 700 new student rooms built alongside a village hub facility for students.

HOCHTIEF is to carry out another PPP project in the Polish city of Żory. There, the company will construct four buildings with some 400 apartments plus commercial premises and parking spaces. HOCHTIEF is responsible for the entire life cycle of the buildings, from design, financing, and construction through to 20 years of maintenance.

In Braunschweig, Germany, HOCHTIEF has been commissioned with the expansion of Ricarda Huch School. Within the framework of the PPP project, 20 classrooms, specialist rooms for art and music lessons, play and craft rooms as well as an assembly hall will be created by mid-2026. Some 500 more children will start school there in the next few years.

MOTORWAY A1, FRANCE

In France, Abertis operates around 1,800 kilometers of motorways through its company SANEF, including the A1 between Lille and Paris.

Abertis

Since June 2018, HOCHTIEF owns a 20\% stake (minus one share) in Abertis HoldCo, the direct owner of 99.1\% of Abertis Infraestructuras, S.A. (Abertis). Abertis is a leading international toll road operator with a portfolio of brownfield assets stretching across 15 countries, 34 concessions and around 8,000 kilometers of toll roads. This investment is accounted for using the equity method and the net profit contribution is included as an operating item in the Group's EBITDA.

The contribution to the HOCHTIEF Group resulting from the Abertis investment reflects the operating performance of Abertis, a non-cash purchase price allocation (PPA) expense as well as holding company costs.

At the beginning of 2024, the shareholders of Abertis contributed EUR 1.3 billion in equity to support the financing of the transactions announced in 2023 and the company's growth strategy, with HOCHTIEF subscribing its EUR 260 million share for its 20\% stake. Abertis will thereby maintain an optimal capital structure in accordance with its commitment to maintain its investment grade credit rating.

EBITDA 2024 by country

Key developments at Abertis

For FY 2024, our Abertis investment delivered an operational result of EUR 81 million, in line with the EUR 80 million of 2023 and the guidance provided at the beginning of the year. The nominal result of EUR -14 million includes the non-operational negative impact of the early termination of Texas toll road SH-288 (after reversal of provisions and other results) and compares with EUR 80 million in FY 2023.

Abertis registered solid top line growth and EBITDA expansion in FY 2024.
The company's average daily traffic increased by $2 \%$ year on year, while tariffs rose on average by around $4 \%$, driving sales growth of $10 \%$ to EUR 6.1 billion.

EBITDA of EUR 4.3 billion was up by 10\% year on year. Abertis' operational net profit pre-PPA amounted to EUR 801 million before the EUR 477 million negative impact of Texas toll road SH-288 termination, net of provisions and other results.

Abertis declared a dividend of EUR 602 million in April 2024, EUR 119 million of which was paid out to HOCHTIEF in line with its 20\% shareholding during Q2 2024. The toll road company is expected to pay a dividend of approximately EUR 600 million, EUR 119 million of which to HOCHTIEF in line with its 20\% shareholding during Q2 2025.

In August 2024, Abertis, through its subsidiary ViasChile, won an international tender launched by Chile's Ministry of Public Works for the "Ruta 5 Santiago-Los Vilos" motorway. The 223-kilometer-long infrastructure links the capital, Santiago, with the coast, connecting two strategic regions that account for more than half of the country's GDP. The concession has a maximum duration of 30 years and does not require an upfront payment. Abertis has committed to investments of around EUR 1 billion within the next seven years to expand the infrastructure's capacity and provide innovative technological services to users.

In September 2024, Abertis subsidiary Autopista Central was commissioned for a EUR 370 million investment to expand the capacity of a toll road to the north of the capital, Santiago, which will be compensated for by a 25 -month extension to the Autopista Central concession contract.

Abertis Outlook

We expect Abertis to deliver a similar operational result in 2025 compared to the EUR 81 million in 2024.

Abertis: Key Figures

(EUR million)	2024	2023	Change yoy
Operating revenues	6,072	5,532	$10 \%$
EBITDA	4,292	3,893	$10 \%$
Operational net profit pre-PPA	801	767	$4 \%$
Net profit pre-PPA	324	767	$-58 \%$

Abertis segment result (20\% stake)

(EUR million)	2024	2023	Change yoy
Nominal result ${ }^{1}$	(13.6)	79.5	$-93.1$
Operational result	80.9	79.5	1.4
Abertis-dividend received	118.7	118.7	0.0

[^0]
[^0]: ${ }^{1}$ Nominal result included in EBITDA, profit before tax/PBT and net profit/NPAT

Sustainability Statement ${ }^{1}$

95 Brief introduction on sustainability at HOCHTIEF
96 General information
96 ESRS 2: General disclosures
142 Environmental information
143 ESRS E1: Climate change
171 ESRS E2: Pollution
188 ESRS E3: Water and marine resources
201 ESRS E4: Biodiversity and ecosystems
217 ESRS E5: Resource use and circular economy
240 Disclosures pursuant to Article 8 of
Regulation (EU) 2020/852

250 Social information

251 ESRS S1: Own workforce
277 ESRS S2: Workers in the value chain
288 ESRS S3: Affected communities
298 ESRS S4: Consumers and end-users
303 Governance information
304 ESRS G1: Business conduct
318 Entity-specific topic:
Innovation and digital transformation

Sustainability at HOCHTIEF

Sustainability has a long tradition at HOCHTIEF and is an important matter for us. We began to develop a dedicated sustainability organization at HOCHTIEF in the mid-1990s, and our first Environmental Report was published in 2001. Since then, sustainability management has become an established and professional part of our operations, and is now the responsibility of a separate corporate department. We are working ambitiously on the sustainability issues of our time throughout the Group. This Sustainability Statement provides a detailed insight into our activities in this area.

Each of our projects is unique. To make a difference in our decentralized project business-in environmental and in social terms-we rely on good cooperation with our partners: Suppliers and subcontractors, customers and communities are important stakeholders for our ESG success, because their decisions, concerns and interests directly influence the sustainability of our projects. Open dialogue and fair, trusting cooperation with them are therefore particularly important to us. We will be presenting this topic to you on the following pages.

ESRS 2

General disclosures

General basis for preparation of the sustainability statement

This sustainability statement includes the non-financial reporting for 2024, in accordance with Sections 315b and 315c of the German Commercial Code (HGB) and Article 8 of Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088. The requirements of the European Sustainability Reporting Standards (ESRS), in accordance with the European Union's Corporate Sustainability Reporting Directive (CSRD), have been applied in their entirety in the preparation of this Sustainability Report. The sustainability statement is based on the information stated to the best knowledge of all those involved. We do not make use of the exemptions from disclosure under ESRS 1 Section 7.7 or under Article 19a(3) and Article 29a(3) of Directive 2013/34/EU.

The sustainability statement has been prepared on a consolidated basis. In accordance with the scope of the consolidated financial statements, it covers the activities of the operating, consolidated companies of the Turner, CIMIC, and Engineering and Construction segments as of December 31, 2024. HOCHTIEF Aktiengesellschaft is also included in the reporting, but specific disclosures on the parent entity are not provided.

This presentation corresponds to the HOCHTIEF Group subsidiaries included in the financial key performance indicators. For a list of the entities included in the scope of consolidation, please refer to the Notes to the SBM-3 48.

As a global provider of infrastructure solutions, our activities mainly comprise construction management services, infrastructure construction, and other infrastructure services. This means upstream and downstream value chain activities play an important role with regard to the sustainability of the entire industry and our company. The responsible management of procurement services plays a key role here, as does the energy-efficient use of our completed buildings and infrastructure projects.

HOCHTIEF has established Group-wide principles that apply for all employees involved in our worldwide operations and for third parties contracted by HOCHTIEF. These principles align with the HOCHTIEF Code of Conduct and the HOCHTIEF Code of Conduct for Business Partners. This includes collaborating with our suppliers, subcontractors, and other business partners, together with promoting and reinforcing their responsibility within their own operations and supply chains. This is why we have defined an underlying, multi-stage risk management process that serves as the basis for evaluating our supply chain. Our purpose here is to ensure that ESG risks and/or violations are identified at an early stage so that risks can be minimized and violations rectified by means of targeted corrective action plans. Furthermore, our policies, actions, and targets are geared toward fostering good collaboration on sustainability matters with our business partners and subcontractors. Together with our customers and clients, we aim to actively propose sustainable solutions across the entire project life cycle and so avoid, or at least minimize as far as possible, negative environmental and social impacts. In accordance with the Sustainability Plan 2025, HOCHTIEF targets climate neutrality (net zero) by 2045.

Disclosures in relation to specific circumstances

Time horizons

The definition of short-, medium-, and long-term time horizons for non-financial reporting purposes is consistent with the time horizons in ESRS 1 section 6.4 and the double materiality assessment for 2024.

• Short-term: Less than or equal to one year
• Medium-term: More than one year and less than or equal to five years
• Long-term: More than five years

Value chain estimation

The parameters referred to in this sustainability statement include data on our upstream and downstream value chain that was determined using estimates. This applies to the metrics in the topic-specific sections Climate change and Business conduct. In the topical standards sections, we expressly state the upstream and downstream activities for which estimates have been made for these parameters, including a description of the basis for preparation and the resulting level of accuracy.

Data completeness, reliability, and quality ${ }^{1}$

HOCHTIEF aims to maintain and continuously improve on the high standards of completeness, reliability, and hence also the quality of the sustainability/ESG data collected throughout the Group. To this end, we intend, for instance, to further improve measuring accuracy and make increasing use of project-based consumption data collection. In order to ensure full coverage in sustainability/ESG reporting across the entire consolidated Group, we apply a set quality hierarchy in our data collection processes. This is as follows:

• Primary data: The preferred data source, and thus the data collection basis with the highest priority in the HOCHTIEF Group, is direct measurement (where applicable on site/on project)-that is, first-hand data. Examples include loT-enabled meters to record electricity and water consumption on projects.
• Secondary data: Calculations based on existing information or databases, such as invoicing volumes or industry-specific standards and statistics. This is the second level, used as priority where primary data is unavailable.
• Estimated data: Calculations using industry-specific or science-based estimation methods. These can include extrapolations based on industry-specific empirical values or estimates using science-based methodologies. Estimates are used when neither primary nor secondary data is available.

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[^0]: ${ }^{1}$ Disclosure pursuant to ESRS 2 Section 77 (b): The metrics in this sustainability statement have not been additionally validated by an external body other than the assurance provider.

We work continuously to enhance and fine-tune our sustainability data collection processes. Consistency in our annual reporting ensures transparency and verifiability with regard to HOCHTIEF's sustainability performance. We continue to develop the collection of measured data in order to further increase the granularity and hence accuracy of our data and to monitor performance. To this end, we increasingly collect consumption data at project level. The plausibility of the data is validated across the Group at various levels-first at a decentralized basis in the operational units and then centrally at Group level.

Sources of estimation and outcome uncertainty

Where quantitative parameters in the sustainability statement are subject to measurement uncertainty due, for example, to having been determined on the basis of secondary data or estimates, we state this accordingly in the topic-specific sections.

Changes in preparation of sustainability information

As in previous years, this sustainability declaration is prepared in accordance with the German CSR Directive Implementation Act (CSR-RUG) (Section 289c of the German Commercial Code [HGB]), which is the German implementation of the European Non-financial Reporting Directive. As a new reporting framework, we reference the European Sustainability Reporting Standard (ESRS).

For the 2024 reporting year, CIMIC Group company Thiess is consolidated in the HOCHTIEF Group, after CIMIC increased its stake in Thiess to 60\% in 2024 (2023: 50\%, accounted for using the equity method). Thiess is included in the sustainability information and sustainability data from the acquisition date of the increased stake and thus the date of consolidation in the HOCHTIEF Group, representing a period of eight months in the reporting year 2024. Hence, the current non-financial Group data has only limited comparability with the prior year and earlier reporting years. For this reason, the topic-specific sections of this report consistently reference the established HOCHTIEF Sustainability Plan 2025. This was developed by all consolidated Group companies in 2021 and entered into force in 2022. The HOCHTIEF Sustainability Plan specifies targets and long-term commitments for the measurement of Group performance in the dimensions of environment (E), social affairs (S), and governance (G). It does not include the activities of Thiess-unless otherwise indicated in the topical sections-but these will be included in the onward development of the HOCHTIEF Group's sustainability activities, targets, and commitments following completion of the annual reporting for 2024. Thiess and the activities in its value chain were included in full in the double materiality assessment for the HOCHTIEF Group and in the assessment of IROs. A number of tables presenting environmental metrics show figures in accordance with the HOCHTIEF Sustainability Plan 2025 in addition to the reporting in accordance with the scope of consolidation for 2024. The two forms of presentation are expressly indicated with the information shown in the tables.

Reporting in prior periods

No material prior-period errors within the meaning of ESRS 2 paragraph 14 were identified in the reporting year.
Disclosures stemming from other legislation or generally accepted sustainability reporting pronouncements This Group Report serves as our report on progress in implementing the UN Global Compact principles (www.unglobalcompact.org) and is published on the organization's websites. An overview of HOCHTIEF's contribution to the United Nations Sustainable Development Goals is provided under Sustainable Development Goals at HOCHTIEF.

This sustainability statement includes disclosures pursuant to Article 8 of Regulation (EU) 2020/852 of the European Parliament and the Council as well as disclosures pursuant to the European Commission Delegated Regulations (EU Taxonomy), presented for the environmental objectives defined in the Taxonomy Regulation.

Incorporation by reference

For the sake of clarity and to avoid duplication in this sustainability statement, information prescribed by the disclosure requirements of an ESRS is in some instances incorporated by reference. The disclosure requirements incorporated by reference are shown in the following list:

ESRS disclosure requirement for sustainability reporting	Paragraph in standard	Description of the disclosure requirement	References within the Combined Management Report
BP-1	5 b i	HOCHTIEF scope of consolidation	Notes to the Consolidated Financial Statements
BP-2	10 a	Value chain estimation	Climate change (Scope-3 GHG emissions) Business conduct (functions-at-risk at Flatiron and HOCHTIEF in Europe)
BP-2	15	Implementation of the UN Global Compact Principles	Ten principles of the UN Global Compact
BP-2	15	Disclosures pursuant to Article 8 of Regulation (EU) 2020/852 of the European Parliament and the Council as well as disclosures pursuant to the European Commission Delegated Regulations (EU Taxonomy)	Disclosures pursuant to Article 8 of Regulation (EU) 2020/852 (Taxonomy Regulation)
BP-2	15	Disclosures pursuant to other reporting standards	Water and Marine Resources
GOV-4	$30-32$	Due diligence	Cross-references shown under GOV-4 30-32
GOV-5	$\begin{aligned} & 36 \mathrm{a}, 36 \mathrm{~b}, 36 \mathrm{c} \ & 36 \mathrm{~d}, 36 \mathrm{e} \end{aligned}$	Risk management and internal control processes in relation to sustainability reporting	Opportunities and Risks Report
SBM-1	40 a i	Groups of products and/or services offered	Markets and operating environment, and Group Structure and Business Activities
SBM-1	40 a ii	Significant markets and/or customer groups served	Markets and operating environment, and Group Structure and Business Activities
SBM-1	40 a iii	Headcount of employees by geographical areas	Own workforce
SBM-1	40 e, 40 f, 40 g	Significant products and/or services, and significant markets and customer groups, in relation to the company's sustainability-related goals; strategy in relation to sustainability matters	Goals and strategies
SBM-1	42 a, 42 b	HOCHTIEF business model	Group Structure and Business Activities
IRO-1	53 e	Integration of IRO management into the overall risk management process	Opportunities and Risks Report

Governance

The role of the administrative, management, and supervisory bodies as well as information provided to and sustainability matters addressed by the undertaking's administrative, management, and supervisory bodies For the composition of the Executive Board, the Supervisory Board aims for an appropriate "Diversity of Minds." This comprises broad diversity with regard to internationality as well as educational and professional background. The Supervisory Board assesses the achievement of this goal-for instance, on the basis of the following specific indicators:

• Adequate share of members with an international background (based, for example, on origin or extensive professional experience abroad), ideally with a connection to the regions in which HOCHTIEF operates;
• Adequate diversity (women/men) with regard to educational and professional background.

Moreover, the Supervisory Board has stipulated an age limit for members of the Executive Board. Accordingly, a member of the Executive Board may not be older than 69 at the moment of his or her appointment.

The Executive Board of HOCHTIEF Aktiengesellschaft currently consists of one woman and three men, which corresponds to a gender distribution of $25 \%$ to $75 \%$. These comprise the following individuals:

• Juan Santamaría Cases-Chief Executive Officer (CEO)
• Peter Sassenfeld-Member of the Executive Board and Chief Financial Officer (CFO)
• Ángel Muriel Bernal-Member of the Executive Board and Chief Operating Officer (COO)
• Martina Steffen-Member of the Executive Board, Labor Director and Chief Sustainability Officer (CSO)

The Executive Board has one member who holds a degree in construction engineering. In addition, the Executive Board includes three members with degrees in business. All members of the Executive Board have many years' experience in the construction industry or related sectors, including from employment within the HOCHTIEF Group.

• Three members of the Executive Board have lived and/or worked abroad.
• Two members of the Executive Board are foreign nationals (Spain/Australia).
• The age limit specified for members of the Executive Board has been duly observed in the appointment of all members.

Under the two-tier board system, in accordance with the German Stock Corporations Act (AktG), management of the company is the responsibility of the Executive Board. In the exercise of its responsibilities, it must always weigh the impacts, risks, and opportunities in accordance with applicable law (in line with the business judgment rule). The Executive Board manages the company's business under the collective responsibility of all of its members. It determines the entrepreneurial goals, fundamental strategic direction, enterprise policies, and organization of the Group. The Executive Board has adopted a Code of Procedure. A Schedule of Responsibilities specifies the allocation of responsibilities. All changes are proposed by the Chairman of the Executive Board, approved by the Executive Board, and reported to the Chairman of the Supervisory Board.

The Executive Board manages the company's business collectively on the basis of its general responsibility, in accordance with applicable law, and under its own responsibility in line with agreed uniform objectives. Each member of the Executive Board acts independently within his or her remit, the interests of which he or she nevertheless subordinates to the overall benefit of the company, while coordinating with the other members of the Executive Board on matters within his or her remit that affect their areas of responsibility or the overall interests of the company or the Group. The members of the Executive Board work together collegially and keep each other informed of all significant events and business developments within their respective remits. One member of the Executive Board is responsible for sustainability and holds the position of Chief Sustainability Officer (CSO). The Executive Board meets regularly with the Sustainability corporate department to discuss attainment of the HOCHTIEF Sustainability Plan targets and to keep abreast of the Plan's progress. A detailed description of the sustainability and governance structure is provided in one of the following paragraphs.

In accordance with applicable law, the Articles of Association of HOCHTIEF Aktiengesellschaft and the Rules of Procedure for the Executive Board and Supervisory Board of HOCHTIEF Aktiengesellschaft, the Executive Board regularly reports to the Supervisory Board on the financial situation and development of the company and the Group, significant transactions, and the current earnings situation, including the risk situation and risk management. The Executive Board also provides the Supervisory Board with full information outside of meetings with regard to particularly significant or urgent projects and occurrences. At least once annually, the Chief Sustainability Officer briefs the Supervisory Board's Audit/Sustainability Committee on sustainability issues.

Under Sections 96 (1) and (2) and 101 (1) AktG, Sections 1, 6, and 7 (1) Sentence 2 read in conjunction with Sentence 1 No. 2 of the German Codetermination Act (MitbestG), and Section 9 (1) of the Articles of Association, the Supervisory Board of HOCHTIEF Aktiengesellschaft consists of eight members to be elected by the Annual General Meeting (as shareholder representatives) and eight members to be elected by the employees (as employee representatives). The eight shareholder representatives are independent of the company and the Executive Board; four shareholder representatives are also independent of the controlling shareholder (ACS, Actividades de Construcción y Servicios, S.A.).

In order to implement a diversity policy for the Supervisory Board, the latter has set targets for its composition and adopted a profile of skills and expertise for the Supervisory Board as a whole. The objective is for the Supervisory Board to be composed such that it is able to provide professional control and advice to the Executive Board. In addition, the Supervisory Board is to be composed in such a way that its members as a group possess the knowledge, ability, and professional experience required to properly complete its tasks. In accordance with the Stock Corporations Act, the Supervisory Board of HOCHTIEF Aktiengesellschaft comprises at least 30\% women and at least 30\% men. As of December 31, 2024, the composition of the Supervisory Board of HOCHTIEF Aktiengesellschaft was 37.5\% women and 62.5\% men. The members of the Supervisory Board possess the skills and expertise considered material in light of the HOCHTIEF Group's activities as a global infrastructure group. This includes international and foreign experience. It also includes sustainability matters of significance to the company. In this connection, the Supervisory Board has adopted a skills matrix outlining the skills assigned to each member. This is reviewed annually to ensure that it is up to date. Skills covered include compliance, sustainability, and IT/cybersecurity. This ensures a broad distribution of capabilities within the Supervisory Board. The skills matrix also ensures that topics related to the company's material impacts, risks, and opportunities are suitably addressed. In the reporting year, the Executive Board member for sustainability reported to the Supervisory Board on sustainability aspects, which primarily concerned the new EU reporting requirements under ESRS.

Sustainability organization and governance

The Chief Sustainability Officer (CSO) is a member of the Executive Board of HOCHTIEF Aktiengesellschaft and holds overall responsibility for sustainability within the HOCHTIEF Group. The CSO reports to the Audit/ Sustainability Committee of the Supervisory Board. For management and control activities, the CSO is supported by a Group-wide Sustainability Committee. This comprises representatives of the Executive Board and of the Group companies, together with the Sustainability Core Implementation Team. The committee meets three to four times a year.

The Sustainability corporate department brings together and coordinates sustainability activities for the HOCHTIEF Group. It advises the Executive Board, the corporate departments, and the operational units on sustainability issues. The Sustainability corporate department is also the point of contact for internal and external stakeholders. This makes it possible for all material impacts, risks, and opportunities identified to be addressed by both the dedicated Sustainability corporate department and the Executive Board.

The department's main tasks include implementing and fine-tuning the Sustainability Plan 2025, integrated analysis of the environmental, social, and governance (ESG) issues as well as developing and enhancing data monitoring and reporting in order to measure, verify, and report on the sustainable transformation. Senior executives are appointed for the areas of environment (E), social (S), and governance (G), who report directly to the Executive Board. This ensures efficient management of ESG topics as well as of the material impacts, risks, and opportunities.

In addition, there is the Sustainability Core Implementation Team, comprising the CSO, ESG specialists, as well as innovation and communications specialists. The Sustainability Core Implementation Team meets on a weekly basis and is tasked with continuously analyzing and developing the Group's sustainability on the basis of the thematic areas described above.

Each operating company in the HOCHTIEF segments has a Sustainability Implementation Team. These teams ensure that the HOCHTIEF Sustainability Plan 2025 is put into practice across the Group. The Sustainability Implementation Teams report at regular intervals to the Sustainability Core Implementation Team.

Sustainability Organization and Governance

Collaboration between the Executive Board, the aforementioned committees, Corporate Sustainability, the Sustainability Core Implementation Team, and the operating companies enables all significant impacts, risks, and opportunities to be systematically addressed and managed via defined processes and reporting lines. In addition, there is close internal coordination with Corporate Controlling on all material impacts, risks, and opportunities related to sustainability topics. This optimizes the implementation of the core elements of due diligence in the company, through which actions and policies are assessed for effectiveness and addressed as needed.

Achievement of the targets in the HOCHTIEF Sustainability Plan is monitored by the Corporate Sustainability department and the ESG officers, and progress is regularly assessed and reported to the Executive Board.

Integration of sustainability-related performance in incentive schemes

As is explained in greater detail in the section on targets and strategies, sustainability is an integral part of HOCHTIEF's Group strategy. HOCHTIEF systematically takes ESG aspects into account when making strategic decisions in order to create long-term value and ensure responsible business conduct.

The current compensation system for members of the Executive Board is geared toward long-term, sustainable management. Criteria for determining the appropriateness of compensation comprise the duties of each member of the Executive Board, their personal performance, the economic situation, the performance and future prospects of the Company, as well as the customary level of compensation, taking peer companies into account. The objective of the compensation system is to support successful and sustainable management by linking the compensation of Executive Board members to both the short-term and long-term performance of the Company. The Supervisory Board regularly reviews the system and the appropriateness of individual compensation components as well as of compensation as a whole. In this connection, it considers the amount and structure of executive board compensation at peer companies (horizontal benchmark) and the ratio of Executive Board compensation to employee compensation, including over time (vertical benchmark).

Twenty percent of variable compensation for members of the Executive Board is tied to non-financial environmental, social, and governance (ESG) targets. The non-financial targets relate to the development of the Lost Time Injury Frequency Rate (LTIFR) as a health and safety metric with a weighting of ten percent, the development of the proportion of women in management positions with a weighting of five percent, and the reduction of carbon emissions with a weighting of five percent. The Supervisory Board as a whole is responsible for adopting resolutions on the compensation system for members of the Executive Board. Target achievement is continuously monitored by regularly analyzing the metrics in order to ensure transparent and sustainable management.

At the German companies, by Executive Board resolution, the development of the LTIFR health-and-safety metric has also been incorporated into performance-related compensation for management and expert levels 1 to 4. This sustainability metric had a weighting of $10 \%$.

We plan to integrate sustainability performance into the incentive schemes of other HOCHTIEF companies in 2025.

Statement on due diligence

A mapping of the information provided in this sustainability statement about the due diligence process at HOCHTIEF is provided in the following.

Core element of due diligence	Sections of the sustainability statement Application requirements ${ }^{1}$	Page number
(a) Embedding due diligence in the undertaking's governance, strategy, and business model	ESRS 2 GOV 2-Information provided to and sustainability matters addressed by the undertaking's administrative, management, and supervisory bodies	100
	ESRS 2 GOV-3-Integration of sustainability-related performance in incentive schemes	103
	ESRS 2 SBM-3-Material impacts, risks, and opportunities and their interaction with strategy and business model	112
(b) Engaging with affected stakeholders in all key steps of the due diligence	ESRS 2 SBM-2-Interests and views of stakeholders	110
(c) Identifying and assessing adverse impacts	IRO-1-Description of the process to identify and assess material impacts, risks, and opportunities, including further explanations on IRO-1 in the topical standards	128
	ESRS 2 SBM-3-Material impacts, risks, and opportunities and their interaction with strategy and business model	112
(d) Taking actions to address those adverse impacts	All topical standards-Policies adopted to manage material sustainability matters (including ESRS 2 MDR-P Minimum disclosure requirements)	$\begin{aligned} & 147,172,191,206, \ & 219,255,280,290, \ & 294,300,307,320 \end{aligned}$
	All topical standards-Actions and resources in relation to material sustainability matters (including ESRS 2 MDR-A Minimum disclosure requirements)	$\begin{aligned} & 151,176,193,209, \ & 225,259,283,294, \ & 302,307,322 \end{aligned}$
	Topical standard ESRS E1-E1-1 Transition plan for climate change mitigation	147
(e) Tracking the effectiveness of these efforts and communicating	All topical standards-Targets and metrics in relation to material sustainability matters (including ESRS 2 MDR-T Minimum disclosure requirements)	$\begin{aligned} & 158,182,193,209, \ & 221,225,259,283, \ & 294,302,317,325 \end{aligned}$

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[^0]: ${ }^{1}$ All sections must be viewed together with their associated application requirements.

Risk management and internal controls over sustainability reporting

Sustainability reporting is provided annually as part of the Group Report. The sustainability/ESG data to be reported is specified in accordance with the legal reporting requirements applicable to the HOCHTIEF Group, the reporting standards elected by the Group, and the targets set by the Group (the HOCHTIEF Sustainability Plan 2025). Sustainability reporting is based on the underlying ESG reporting process in the HOCHTIEF Group. Coordinated by Corporate Sustainability, ESG reporting is prepared Group-wide using a web-based software tool that collects, aggregates, and analyzes all relevant ESG data and information. This process is supplemented by other topic-specific and operational data collection and reporting systems. The sustainability and ESG officers of HOCHTIEF Aktiengesellschaft specify the required ESG data in consultation with management at the HOCHTIEF Group's operational units, determine the reporting frequency, and monitor and control the completeness, consistency, and plausibility of the ESG data and information reported. Responsibility for ensuring the correctness and verifiability of the data reported lies with those who collect it at operational level. This ensures that top-level sustainability/ESG reporting closely dovetails with operational practices and activities. Consolidated ESG data and information is regularly presented to the Executive Board in the Sustainability Committee and published in the Sustainability Report.

Various measures are taken to ensure completeness and plausibility in ESG data collection:

• Uniform coordination and implementation of ESG data reporting from Group down to operational level
• Integrated reporting using central ESG software
• Technical and factual checking by staff of topic-specific corporate departments and the management of operational units
• System-based plausibility checking. The Group companies are required to explain or document any flagged errors or tolerance limits exceeded
• Visual dashboard analyses/report analyses showing the development of ESG performance
• Regular status reports to the Executive Board
• Auditor controls in the annual financial statements

HOCHTIEF's established risk management system embraces all layers of the organization and defines directives, responsibilities, processes, and instruments. Information pursuant to GOV-5 on the internal control system is provided in the Opportunities and Risks Report.

Our Group-wide risk management system is made up of various individual components. The overarching framework is provided by directives that are continuously reviewed and adapted as necessary with regard to changing legal requirements. Group-wide standards on topics such as occupational safety and health, environmental and social standards, rules of conduct, and compliance also contribute to minimizing risk.

Finally, these Group-wide arrangements are supplemented by individual systems, processes, and organizational instructions for the identification, assessment, and management of risks and opportunities within our businesses and operational units.

In a multi-stage process, the operating and holding companies collate their financial and non-financial risks and opportunities and assess them together with business managements and controlling departments. The relevant risks are then reported to Corporate Controlling, indicating the potential impact on earnings and liquidity, the risk category, the possible time horizon, the probability of occurrence, and the at-risk amount. The resulting risk situation is incorporated into a final risk report to the Executive Board. This also includes a regular risk-bearing capacity analysis. Regular reports on the Group's current risk situation are likewise submitted to the Supervisory Board's Audit/Sustainability Committee. In the reporting year, risks at Group level were additionally identified, assessed, and prioritized in line with the risk management process as part of the double materiality assessment (DMA). These notably include risks related to climate-related challenges, changing regulatory requirements, and governance topics.

Strategy

Strategy, business model, and value chain

HOCHTIEF's sustainability strategy forms an integral part of the Group strategy, with which we generate value for all stakeholders and secure our long-term success. We define sustainability as a systematic approach to harmonizing economic, environmental, and social responsibility across all our business activities with the aim of securing the long-term viability of the company. This is why sustainability is one of our strategic principles. To this end, we apply a 360-degree focus, taking in all of our business segments and operating activities, and hence also our clients.

Information on HOCHTIEF's products, services, and markets is provided in the Group Structure and Business Activities section and the Markets and Operating Environment section. The Markets and Operating Environment section describes the market outlook with regard to sales growth in our material businesses. The Group Structure and Business Activities section also covers material inputs, notably with details on the procurement of materials and subcontractor services. Outputs are not presented separately as it is not considered a separate parameter in HOCHTIEF's business model. Instead, our clients commission specific construction works and services, the purpose of which and its assessment is their own responsibility. Information on the number of employees and their breakdown by geographical areas is provided under Own workforce. In view of our services and business activities, various additional matters also need to be considered in relation to the sustainability strategy:

As part of our project-based business model, we offer a wide range of services that are flexibly and individually tailored to the requirements of each project as well as to our clients' needs and wishes. Our clients are able to play an active role in shaping project specifications and incorporating specific requirements. In this connection, we encourage them to implement sustainable and innovative solutions that exceed legal requirements and make a positive contribution to sustainability. This includes selecting resource-efficient materials, project-specific deployment of advanced construction techniques, and incorporating innovative technologies. Such sustainable solutions and contracting models, however, gain varying degrees of acceptance. This can significantly constrain the successful implementation of measures to offset potential negative impacts or advance positive impacts on sustainability. A diverse portfolio, from relatively small-scale specialty projects to large infrastructure projects, compounds the challenges involved in addressing sustainability matters in a uniform manner. Our project-based business approach and in some cases limited influence on clients' decision making also mean that we do not have full control over the long-term impacts of specific projects.

In the same context, we similarly have varying degrees of operational control over the projects we deliver. This depends on the conditions relating to the contractually agreed works and services. Whether HOCHTIEF is engaged for a build-only contract, a design-and-build contract, or a full package including operation and maintenance not only affects our role in implementing sustainability features, but also determines the scope and duration of our responsibility for a project. These differences directly impact our ability to integrate sustainable practices as well as to estimate and assess long-term effects such as changes in opex and capex.

Management of coal, gas, and oil activities

As a global provider of infrastructure solutions, we are in the midst of a major transformation in our business with clients in the mining industry that benefits the global transition to a more sustainable future.

Accordingly, the Thiess Group has committed to reducing thermal coal revenue to $25 \%$ of total revenue by 2027 and to less than $20 \%$ by the end of 2030. In 2024, sales generated at Thiess by the coal extraction segment amounted to EUR 1.5 billion.

Metals such as lithium, copper, and nickel are essential for renewable energy and electric mobility technologies. By stepping up our metal mining activities, we are helping to secure the basic resources for these growth technologies. In this way, we are not only advancing the transition to clean energy, but also paving the way for a sustainable mobility transition.

A presentation of our sustainability-related strategic goals in relation to our products and services, clients, and regions is provided in the Goals and Strategies section.

The HOCHTIEF Sustainability Plan 2025 embeds sustainability matters in our corporate strategy and establishes long-term targets for the environmental, social, and governance (ESG) aspects that HOCHTIEF is committed to systematically implementing. Pursuant to the ESRS, we ensure that the targets under our Sustainability Plan and the related actions are based on internationally recognized standards, and we report transparently on our progress.

In order to meet the requirements and expectations of all relevant stakeholder groups, the HOCHTIEF Sustainability Plan 2025 was developed in 2021 in close collaboration with our key stakeholders. It entered into force in 2022, has been an integral part of HOCHTIEF's strategy ever since, and is binding throughout the Group. This reflects our strategic goal of making a positive contribution to social and environmental sustainability.

The topics and targets of the HOCHTIEF Sustainability Plan 2025 align with content of the topical ESRS and also relate to other important sustainability matters such as digitalization and innovation. Its targets were set without identifying ecological thresholds or entity-specific allocations. The alignment with ESRS topics means that both follow the same overarching objective: the promotion of sustainable practices and transparent progress reporting. Updating of the Sustainability Plan and its targets is planned for 2025. It is then to build on the progress made to date and the relevant sustainability topics, thus ensuring that it continues to transparently reflect our sustainability performance.

A description of the HOCHTIEF business model is provided in the Group Structure and Business Activities section. Our activities in the value chain focus on our employees (own workers and value chain workers) as well as on our subcontractors and suppliers. We are in constant dialogue with these groups and with other stakeholders, such as clients and investors. To achieve the required diversity and in-depth level of feedback from these stakeholders, we conduct this dialogue on a thematic and decentralized basis. In an ongoing exchange, the needs of a wide variety of stakeholder groups are identified and taken into account both operationally and strategically over the long term. This feedback is a key element in advancing our comprehensive sustainability strategy and target attainment.

The HOCHTIEF value chain (overview)

The main elements of the HOCHTIEF value chain are presented in the chart below.

The main elements of the value chain are:

The upstream value chain

Upstream activities encompass activities related to the extraction of resources such as ores-including exploration, drilling, mining as well as the transportation of resources to processing plants and for the manufacture of products and materials.

Own activities

A detailed description of the HOCHTIEF business model and our business activities is provided in the Group Structure and Business Activities section. Material positive and negative impacts can result both from our own activities and from business relationships along the value chain. HOCHTIEF analyzes and assesses these impacts on an ongoing basis in order to minimize risks, exploit opportunities, and ensure responsible business conduct.

The downstream value chain

The downstream value chain comprises the operation and utilization of buildings and infrastructure by customers or users together with the end-of-life treatment of structures and materials.

The downstream value chain also includes the regular maintenance work necessary to keep buildings and infrastructure safe and operational. This can include the incorporation of new technologies, the expansion of infrastructure capacity, and enhanced resilience.

Our business activities depend on external factors in both the upstream and the downstream value chain. These include the availability of resources, regulatory requirements, technological advances, and the needs and expectations of our clients. HOCHTIEF takes an integrative and forward-looking approach to proactively address these factors. This enables a flexible response to changes, ongoing development of sustainable construction practices, and the generation of long-term economic and social added value.

Our main resource inflows comprise construction materials obtained from natural sources or by recycling used material. In particular, these include concrete, steel, glass, and to an increasing extent the use of recycled and alternative materials in order to minimize dependence on primary resources and promote sustainable materials management.

A significant resource outflow from our activities consists of buildings and infrastructure that not only meet economic and social purposes but also provide sustainable solutions. In addition to the construction of new structures, our business activities include operation, maintenance, and refurbishment, which maximize the lifespan of infrastructure. At the end of the project life cycle, materials are reused or recycled wherever possible to promote the circular economy and minimize environmental impacts.

SBM-2

Interests and views of stakeholders

We are in constant dialogue with a wide range of stakeholder groups and constructively address their various demands to take these into account in our work. Our aim here is to systematically track and give strategic consideration to major requirements and expectations in our processes. This is why we regularly engage with stakeholders and invite them to contribute actively in various ways.

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[^0]: * Suppliers and subcontractors

In line with the legislation on due diligence, we incorporated the perspectives and needs of our stakeholders into our sustainability strategy in the reporting year with the aid of a stakeholder representation model. This represented and took into account the perspectives of stakeholders in identifying and assessing the potential impacts, risks, and opportunities of our business activities along the value chain. Engaging with and giving due consideration to the interests of our stakeholders enabled us to accurately incorporate the relevant needs and perspectives into our business and sustainability strategy by integrating them into corporate decision-making processes. This enabled us not only to rigorously identify and assess the potential impacts, risks, and opportunities along the entire value chain but also to ensure that we meet the requirements of the ESRS and our due diligence obligations.

The goal is transparent identification and assessment of impacts, opportunities, and risks, which can be managed accordingly by measures established in accordance with the due diligence legislation. In addition, we plan to include the perspectives and interests of our stakeholders in the next double materiality assessment. This ensures that material impacts, risks, and opportunities inform our strategy and decision making. It is likewise expected to result in a further strengthening of relationships with our stakeholders as well as their interests being taken into account even more systematically in our day-to-day business.

The administrative, management, and supervisory bodies are informed about the views and interests of stakeholders affected with regard to sustainability topics as part of the regular provision of sustainability information by the Chief Sustainability Officer.

SBM-3

Material impacts, risks, and opportunities and their interaction with strategy and business model

Our double materiality assessment identified material impacts, risks, and opportunities (IROs) at Group level and across our entire business activities. Some of the IROs identified cover all stages of the value chain, from upstream procurement of construction materials to the company's own operations and downstream activities.

The material IROs confirm and reinforce HOCHTIEF's strategic priorities. Even before carrying out the double materiality assessment, our strategy was already geared to promoting sustainable construction and infrastructure projects wherever possible, integrating high environmental and social standards ever more closely into our daily work, and developing innovative solutions to construction challenges. The results of the materiality assessment underscore the urgency and relevance of these issues to our business model, value chain, and decision-making processes and have prompted us to redouble our existing efforts-for example, by integrating ESG criteria more closely into our procurement strategies.

Furthermore, by regularly adapting our strategy to the material IROs, we are able to operate successfully in an increasingly sustainability-oriented market environment. Particularly given the growing importance of climate-friendly construction practices, resource-efficient technologies, and digital innovations, we will work systematically to maximize these opportunities and proactively address potential sustainability risks such as impacts of climate change.

In the social dimension, we can further enhance our business models in the future by continuing to focus on and develop the material IROs we have identified as well as by prioritizing the interests of our employees. These include a safe and healthy working environment, gender equality, and further training for our employees. We adapt the professional skills of our employees to the changing needs of our increasingly sustainability-oriented Group by offering specific training aligned with our business activities, including environmental training and further training for technical professions.

Results of the double materiality assessment at HOCHTIEF: Material topics (2024)

Financial Materiality

Material positive, negative, and potential impacts of HOCHTIEF's business activities on the environment and society

The impacts described in the following are directly linked to the business strategy and HOCHTIEF's business model. Sustainability is an integral part of the strategy, as is reflected in the incorporation of environmentally friendly technologies and practices as well as in the promotion of innovation to minimize negative and advance positive impacts.

Time horizons of the impacts: Short-term impacts include environmental and social impacts that can be expected within one year. Medium- and long-term impacts include environmental and social impacts that can be expected within the next five years or beyond.

The company's share of the material impacts: Through its construction and infrastructure projects, HOCHTIEF directly contributes to the impacts identified. As working with business partners and supply chains can amplify these impacts, sustainable sourcing practices and close stakeholder engagement are essential to advancing positive and minimizing negative impacts.

Environment:

• Positive impacts: HOCHTIEF contributes to reducing environmental impacts largely by implementing sustainable construction practices, promoting energy-efficient technologies, and using environmentally friendly materials. Initiatives to promote the circular economy and sustainable resource use also help protect biodiversity and reduce waste.
• Negative impacts: Negative environmental impacts include environmental pollution such as GHG emissions, consumption of natural resources along the value chain, and potential adverse effects of our business activities on water resources and habitats.
• Potential impacts: Potential future impacts could result from unexpected environmental incidents, changes in climatic conditions, or new regulatory requirements that require adjustments to established construction practices.

Social (people):

In the social dimension, various thematic priorities have been identified with positive and negative impacts on the company's workforce, value chain workers, affected communities as well as consumers and end-users. These include both actual and potential impacts. One material opportunity was also identified for the company's workforce. We regard becoming an even more attractive employer for skilled workers as a material opportunity. By this we mean in particular people on the labor market who have the skills and qualifications required for our business activities.

Own workforce: In terms of working conditions, we have identified material positive and negative impacts in the areas of adequate wages, social dialogue, freedom of association, collective bargaining, work-life balance, health and safety, and human rights. To ensure equal treatment and opportunities, we focus on gender equality, equal pay for work of equal value, training and skills development, the employment and inclusion of persons with disabilities, measures against violence and harassment in the workplace, and diversity. Concerning equal treatment and opportunities for all, we have also identified a material opportunity relating to measures against violence and harassment in the workplace. As part of our materiality assessment, we focused on potentially more vulnerable individuals among the company's workforce. These comprise employees on our projects (both whitecollar and blue-collar workers) and employees from vulnerable groups (women in engineering professions and in senior management positions as well as employees with a severe disability). We have identified material impacts for these groups.

Workers in the value chain: For value chain workers, we have identified positive and negative impacts in relation to working conditions as well as to equal treatment and opportunities for all. Regarding working conditions, the impacts relate to adequate wages and to health and safety. Under the topic of equal treatment and opportunities, we have identified impacts relating to training and skills development, measures against violence and harassment, and diversity. The groups in the upstream and downstream value chain to which the impacts identified relate are set out in the Workers in the value chain section.

For affected communities, the positive and negative impacts relate to economic, social, and cultural rights and within this area to safety-related impacts. We have also identified positive and negative impacts thematically related to rights of Indigenous peoples. This includes free, prior, and informed consent as well as self-determination.

In our materiality assessment, we did not identify any material risks relating to forced labor or illegal child labor. Moreover, the material impacts we identified do not relate to systemic illegal child labor or forced labor and are not based on individual incidents in this regard.

Governance:

• Positive impacts: HOCHTIEF promotes a culture of transparency, integrity, and compliance by requiring and adhering to strict ethical and legal standards. Implementing robust governance structures minimizes the risk of misconduct and thus builds stakeholder trust overall.
• Negative impacts: Negative impacts on governance may result from compliance breaches, corruption, or failure to implement compliance measures.
• Potential impacts: Future governance challenges could result from more stringent regulatory requirements, changing stakeholder expectations, or new compliance risks requiring continuous adaptation of governance practices.

An analysis of the current financial effects of the company's material risks and opportunities indicates that there is no significant risk of a material adjustment to the carrying amounts of assets and liabilities within the next reporting period

Our strategy is to further strengthen HOCHTIEF's position in its core markets and activities as well as to pursue growth opportunities in high-tech, the energy transition, and sustainable infrastructure while simultaneously improving cash-backed profitability and applying rigorous risk management. Our businesses are flexible, allowing Management to quickly adapt to varying market conditions. This demonstrates the resilience of our strategy, as the flexibility of our businesses enables them to respond rapidly to changes. The processes and measures implemented with regard to sustainability topics in the Group companies and businesses are based on the strategic focus areas and adequately address the impacts, risks, and opportunities identified in the materiality assessment. We conducted this assessment with the involvement of the central departments, assigning different time horizons for materialization according to the impact, opportunity, or risk identified, and basing the assessment on criteria such as scale, scope, irremediability, and probability of occurrence. On this basis, we assigned the actions presented in the sustainability statement.

Reporting on non-financial topics has previously been provided in various sections of the combined management report and a separate consolidated non-financial report. Most recently, this included the information required under the German Commercial Code (HGB) on environmental, social, and employee-related issues, respect of human rights, and anti-corruption and bribery. Core topics of non-financial reporting in the Group Report 2023 were corporate governance issues (sustainable finance, anti-corruption and anti-bribery, responsible supply chain, and human rights), social issues (health and safety, diversity, skills, working environment, and social activities), environmental issues (climate change, circular economy, water protection, biodiversity, and ecosystems, and sustainable products and services), innovation/the digital transformation, and the presentation of the EU

Taxonomy. In this sustainability statement, reporting on these topics continues in the environmental, social, and governance sections as well as under the company-specific topic of innovation and digital transformation.

Overview of material impacts from the double materiality assessment at HOCHTIEF (2024)

ESRS	Topic	Sub-topic	Impact type	Description
E1-1	Climate change	Climate change mitigation	positive	With expertise covering the entire project life cycle in the construction business, HOCHTIEF can proactively provide lowcarbon solutions to clients (and society) as well as sustainable solutions that generate fewer emissions.
E1-1	Climate change	Climate change mitigation	positive	HOCHTIEF's global influence on stakeholders makes a positive contribution to implementing climate change mitigation solutions along the entire value chain.
E1-1	Climate change	Climate change mitigation	positive	By providing sustainable infrastructure projects to society (such as public transportation infrastructure and energy transition projects), HOCHTIEF makes a positive contribution to climate change mitigation.
E1-1	Climate change	Climate change mitigation	negative	Throughout our entire value chain, significant amounts of GHG emissions are generated, contributing to global warming and making extensive mitigation measures necessary.
E1-2	Climate change	Climate change adaptation	positive	By offering our clients tailored design, build, operation, and maintenance solutions, HOCHTIEF can increase the climate resilience and longevity of their buildings and infrastructure projects.
E1-2	Climate change	Climate change adaptation	positive	HOCHTIEF's global influence on its stakeholders makes a positive contribution to implementing climate change adaptation measures along the entire value chain.
E1-3	Climate change	Energy	positive	HOCHTIEF's global influence on its stakeholders enables us to create sustainable incentives on the market for the increased use of renewable energy as well as sustainable and efficient energy management practices.
E1-3	Climate change	Energy	positive	By providing sustainable energy projects (solar parks, power lines, battery storage, ...) and sustainable mobility projects, we drive the energy and mobility transition.
E1-3	Climate change	Energy	negative	High, project-driven energy consumption from non-regenerative resources leads to potentially high GHG emissions.
E2-1	Pollution	Pollution of air	positive	Selectively applying efficient construction methods, machinery, and vehicles, substituting fossil fuels with more environmentally friendly, alternative fuels as well as electrifying machinery and vehicles lets HOCHTIEF take specific measures to significantly reduce air pollution.

ESRS	Topic	Sub-topic	Impact type	Description
E2-1	Pollution	Pollution of air	negative	HOCHTIEF and its value chain cause air pollution: Upstream production and our own use of machinery, vehicles, and construction materials, emissions of air pollutants from fuel combustion as well as particulate matter generated by our activities have a negative impact on human health and the environment.
E2-1	Pollution	Pollution of soil	negative	In the course of our business activities, unintentional soil pollution might occur as a result of environmental incidents that have a negative impact on the environment.
E3-1	Water and marine resources	Water	positive	With strategies to reduce water consumption and with water management projects such as distribution networks, canals and water treatment plants, we contribute to enhanced water availability and maintenance of water quality as well as waterrelated resilience in the areas in the vicinity of projects.
E3-1	Water and marine resources	Water	positive	A reduction of water withdrawals through preventive measures can minimize adverse effects on water availability, especially in areas under water stress.
E3-1	Water and marine resources	Water	positive	Through increased use of circular water systems (recycling/ reuse) in our projects, we can significantly reduce withdrawals and of water, minimizing the water-related stressors on the environment.
E3-1	Water and marine resources	Water	positive	Solutions such as clarifiers and filters next to infrastructure projects enable a controlled discharge of water into the environment, which can be beneficial for the local water systems.
E3-1	Water and marine resources	Water	negative	Construction (and upstream production) activities generally require large quantities of water, which can potentially disrupt the balance of (local) water systems.
E3-1	Water and marine resources	Water	negative	Operational (and upstream) production activities generally require considerable water withdrawals, which can temporarily disrupt local water systems and exacerbate water scarcity, especially in areas under water stress.
E4-1	Biodiversity and ecosystems	Direct impact drivers of biodiversity loss (Climate change)	positive	Providing low-carbon solutions to clients (decarbonization measures) reduces our contribution to climate change and thus the impact on biodiversity.
E4-1	Biodiversity and ecosystems	Direct impact drivers of biodiversity loss (Climate change)	positive	Sustainable procurement processes can reduce our climate change-related impact on biodiversity.
E4-1	Biodiversity and ecosystems	Direct impact drivers of biodiversity loss (Climate change)	negative	HOCHTIEF's business activities release considerable amounts of GHG emissions, which in turn contribute negatively to climate change, one of the major drivers of biodiversity loss. The emerging consequences of climate change include, for instance, more frequent extreme weather events, changes in seasonal cycles, or increased natural disasters, which can have significant effects on biodiversity.

ESRS	Topic	Sub-topic	Impact type	Description
E4-1	Biodiversity and ecosystems	Direct impact drivers of biodiversity loss (Land-use change, fresh water-use change and sea-use change)	positive	If HOCHTIEF is already involved during the planning phase, solutions to mitigate the effects of large infrastructure projects in particular can be implemented. This includes solutions such as wildlife crossings over major highways, significantly reducing the effects on the local biodiversity from land use change.
E4-1	Biodiversity and ecosystems	Direct impact drivers of biodiversity loss (Land-use change, fresh water-use change and sea-use change)	positive	Renaturation or re-cultivating projects can remediate negative effects and potentially lead to an increase in biodiversity.
E4-1	Biodiversity and ecosystems	Direct impact drivers of biodiversity loss (Land-use change, fresh water-use change and sea-use change)	negative	Changes in the use of land due to our projects can negatively influence natural habitats and thus lead to reduced biodiversity in the affected areas.
E4-1	Biodiversity and ecosystems	Direct impact drivers of biodiversity loss (Direct exploitation)	positive	Reduced deforestation and enhanced environmental stewardship due to the use of sustainably certified timber.
E4-1	Biodiversity and ecosystems	Direct impact drivers of biodiversity loss (Direct exploitation)	negative	Contribution to deforestation from the use of non-certified timber.
E4-1	Biodiversity and ecosystems	Direct impact drivers of biodiversity loss (Pollution)	positive	Selectively applying and using fewer polluting products, equipment as well as construction and operation methods protects biodiversity.
E4-1	Biodiversity and ecosystems	Direct impact drivers of biodiversity loss (Pollution)	negative	Pollution along the value chain leads to negative consequences for biodiversity through various stressors as outlined in ESRS E2.
E4-3	Biodiversity and ecosystems	Impacts on the extent and condition of ecosystems (Land degradation)	negative	Our business activities lead to soil movements, which have a negative impact on soil quality and contribute to land degradation.
E4-3	Biodiversity and ecosystems	Impacts on the extent and condition of ecosystems (Desertification)	positive	Implementation of commitments addressing deforestation prevention and the use of certified timber have a positive impact on the environmental footprint.
E4-3	Biodiversity and ecosystems	Impacts on the extent and condition of ecosystems (Soil sealing)	positive	Mitigation measures such as water-permeable concrete or asphalt as well as integration of green surfaces into our construction projects have a positive environmental impact.

ESRS	Topic	Sub-topic	Impact type	Description
E4-3	Biodiversity and ecosystems	Impacts on the extent and condition of ecosystems (Soil sealing)	negative	Construction projects often seal off the land. Soil sealing disrupts or fragments natural habitats, reducing the availability of suitable habitats for soil-dwelling organisms, plants, and wildlife.
E4-4	Biodiversity and ecosystems	Impacts and dependencies on ecosystem services	positive	Improvement of local ecosystem services through environmental restoration initiatives both directly in our projects and through standalone projects.
E4-4	Biodiversity and ecosystems	Impacts and dependencies on ecosystem services	negative	As a result of the aforementioned impacts on habitats, ecosystems, and biodiversity, HOCHTIEF can adversely affect the ecosystem services across its entire value chain.
E5-1	Resource use and circular economy	Resource inflows, including resource use	positive	By proactively providing our clients with sustainable solutions (ideally in the early stages of a project), we can significantly reduce the resources required for our projects, practice responsible resource management, and thus have a positive impact on resource use and availability.
E5-1	Resource use and circular economy	Resource inflows, including resource use	negative	As an international infrastructure group with resource-intensive business activities, HOCHTIEF requires large quantities of resources. This has a negative impact on resource availability if materials are not sourced in a sustainable manner.
E5-1	Resource use and circular economy	Resource inflows, including resource use	negative	The use of potentially large quantities of non-recyclable materials in our projects has a negative impact on efficient resource use.
E5-2	Resource use and circular economy	Resource outflows related to products and services	positive	Providing our clients with sustainable solutions (ideally in the early stages of a project) maximizes the operational and re-source-related efficiency of our projects while minimizing the environmental impact in terms of greenhouse gas emissions and waste-and hence pollution-at all project stages.
E5-2	Resource use and circular economy	Resource outflows related to products and services	positive	Through innovative digital solutions, life cycle analysis, and the documentation of material use, HOCHTIEF optimizes resource use at the end of the project life cycle (e.g., in dismantling, conversion, and reprocessing).
E5-2	Resource use and circular economy	Resource outflows related to products and services	negative	HOCHTIEF's activities, for instance, generate resource out-flows that have non-recyclable composite materials, which means they are not consistent with the concept of the circular economy and result in non-recyclable waste.
E5-3	Resource use and circular economy	Waste	positive	HOCHTIEF can establish a wide range of sustainable waste management and handling practices. These include, for example, employee training practices, waste traceability systems, and other measures in line with the waste hierarchy principle to support the circularity model.
E5-3	Resource use and circular economy	Waste	positive	Using market incentives, HOCHTIEF can encourage its suppliers and subcontractors to implement circular practices in their business activities.

ESRS	Topic	Sub-topic	Impact type	Description
E5-3	Resource use and circular economy	Waste	negative	As an international infrastructure group, HOCHTIEF inherently produces large amounts of waste, which has an adverse effect on circularity.
E5-3	Resource use and circular economy	Waste	negative	Poor waste separation practices can reduce recycling opportunities, leading to greater disposal (and potential incineration) of hazardous and non-hazardous waste and accordingly pollution as well as higher GHG-emissions.
S1-1	Own workforce	Working conditions (Adequate wages)	positive	Fair, performance-related wages, ensuring at least the minimum wage according to local legal provisions, lead to satisfaction among employees and a positive impact on adequate wages.
S1-1	Own workforce	Working conditions (Adequate wages)	positive	Adequate wages, at least a minimum wage according to local legal provisions, enable financial stability and retirement provision for employees and their families.
S1-1	Own workforce	Working conditions (Adequate wages)	negative	Not paying a fair wage-at least a minimum wage according to local legal provisions-that provides for satisfying the needs of the worker in light of national economic and social conditions has negative impacts on adequate living standards.
S1-1	Own workforce	Working conditions (Social dialogue) (Freedom of association and the existence of work councils, including collective bargaining)	positive	Ensuring and encouraging social dialogue is an important mechanism for listening to and valuing the opinions of employees.
S1-1	Own workforce	Working conditions (Social dialogue) (Freedom of association, the existence of works councils, and the information, consultation, and participation rights of workers) (Collective bargaining, including rate of workers covered by collective agreements)	positive	Freedom of association for employees and the implementation of work councils, as well as rights to information, consultation, and participation of employees in everyday working life, have a positive impact on the rights of employees, enabling fair negotiations.
S1-1	Own workforce	Working conditions (Social dialogue) (Freedom of association and the existence of work councils, including collective bargaining)	positive	A high proportion of employees who are covered by collective agreements/application of bargaining agreements or similar has a positive impact on the rights of employees.

ESRS	Topic	Sub-topic	Impact type	Description
S1-1	Own workforce	Working conditions (Work-life balance) (Working time)	positive	Offering flexible working time models can have a positive impact on working time.
S1-1	Own workforce	Working conditions (Work-life balance) (Working time)	negative	Construction projects often require personnel to live on site and be away from home for certain periods of time, which has a negative impact on the work-life balance.
S1-1	Own workforce	Working conditions (Health and safety)	positive	Provision of a safe work environment for the own workforce by providing personal protective equipment (PPE) leads to a positive impact on health and safety.
S1-1	Own workforce	Working conditions (Health and safety)	positive	Safe and audited/certified working conditions reduce the risk of accidents.
S1-1	Own workforce	Working conditions (Health and safety)	negative	The workplace can have a negative impact on employees' health if it does not meet the suitable provision of PPE.
S1-1	Own workforce	Working conditions (Health and safety)	negative	Construction projects naturally have a high risk of severe accidents. This is a negative impact for all employees on construction sites.
S1-1	Own workforce	Working conditions (Health and safety)	negative	Air pollution has a negative impact on the health of workers on construction sites.
S1-1	Own workforce	Cross-cutting topic related to working conditions	positive	Advantageous working conditions for all workers above the standards and requirements in each geography (salaries, working hours, health and safety, etc.) lead to a positive impact on human rights.
S1-2	Own workforce	Equal treatment and opportunities for all (Gender equality and equal pay for work of equal value)	positive	Promoting equal pay at all levels and HOCHTIEF locations can have a positive impact on gender equality.
S1-2	Own workforce	Equal treatment and opportunities for all (Gender equality and equal pay for work of equal value)	negative	There are currently relatively few female technical employees. This has a negative impact on the gender balance within the company.

ESRS	Topic	Sub-topic	Impact type	Description
S1-2	Own workforce	Equal treatment and opportunities for all (Training and skills development)	positive	The training and skills-development activities for employees with an extensive range of professional development programs, co-op degree programs, and annual feedback interviews have a positive impact on employees' professional expertise.
S1-2	Own workforce	Equal treatment and opportunities for all (Employment and inclusion of persons with disabilities)	positive	Actively offering positions for persons with disabilities has a positive impact on inclusion.
S1-2	Own workforce	Equal treatment and opportunities for all (Measures against violence and harassment in the workplace)	positive	Providing anonymous channels of communication for reporting violence and harassment to ensure that every employee feels free to report any harassment has a positive impact on a safe workplace.
S1-2	Own workforce	Equal treatment and opportunities for all (Measures against violence and harassment in the workplace)	negative	Insufficient measures against violence and harassment have a negative impact on a safe workplace.
S1-2	Own workforce	Equal treatment and opportunities for all (Diversity)	positive	Highlighting the topic of diversity among employees through training and programs can increase the awareness of employees and thus have a positive impact on diversity.
S1-2	Own workforce	Equal treatment and opportunities for all (Diversity)	positive	Creating job opportunities for minorities and people at risk of social exclusion has a positive impact on diversity.
S1-2	Own workforce	Equal treatment and opportunities for all (Diversity)	positive	Promoting the social and economic inclusion of all people, regardless of age, gender, disability, ethnic origin, religion, belief/ideology, or sexual orientation, leads to a positive impact on diversity.
S1-2	Own workforce	Equal treatment and opportunities for all (Diversity)	negative	Insufficient measures to foster diversity through training and programs have negative impacts on diversity.
S2-1	Workers in the value chain	Working conditions (Adequate wages)	positive	Leading by example with regard to adequate wages can result in a positive impact on the workes in the value chain.
S2-1	Workers in the value chain	Working conditions (Health and safety)	positive	Ensuring a safe work environment for the workers in the value chain by providing personal protective equipment (PPE) leads to a positive impact on health and safety.
S2-1	Workers in the value chain	Working conditions (Health and safety)	positive	Increased training and awareness of health and safety issues among contractors can raise awareness and have a positive impact on health and safety.

ESRS	Topic	Sub-topic	Impact type	Description
S2-1	Workers in the value chain	Working conditions (Health and safety)	negative	The workplace can have a negative impact on the health of workers in the value chain if adequate PPE is not provided.
S2-1	Workers in the value chain	Working conditions (Health and safety)	negative	Construction projects pose a high risk of severe accidents. This has a negative impact on all construction site workers.
S2-1	Workers in the value chain	Working conditions (Health and safety)	negative	Air pollution from dust and machine use has a negative impact on the health of workers on construction sites.
S2-2	Workers in the value chain	Equal treatment and opportunities for all (Training and skills development)	positive	Involving value chain workers in HOCHTIEF's training, e.g. on health and safety, can have a positive impact on skill levels and employability of workers in the value chain.
S2-2	Workers in the value chain	Equal treatment and opportunities for all (Measures against violence and harassment)	positive	Requiring all suppliers and subcontractors to take action against violence and harassment (for example, through the Code of Conduct for Business Partners) can have a positive impact on value chain workers.
S2-2	Workers in the value chain	Equal treatment and opportunities for all (Measures against violence and harassment)	positive	Providing value chain workers with an anonymous means of reporting discrimination, harassment, and violence has a positive impact on the workplaces of value chain workers.
S2-2	Workers in the value chain	Equal treatment and opportunities for all (Diversity)	negative	Insufficient measures to foster diversity through training and programs can have negative impacts on diversity in the value chain.
S3-1	Affected communities	Communities' economic, social, and cultural rights (Safety-related impacts)	positive	Donations and sponsorships to local organizations and employee volunteering activities have a positive impact on the sustainable development of communities, in particular with regard to our activities in relation to SDGs 4 and 11. An additional initiative is Bridges to Prosperity, a social project in countries where HOCHTIEF does not do business. This initiative makes life in rural areas easier by building bridges for communities.
S3-3	Affected communities	Rights of Indigenous peoples (Free, prior, and informed consent)	positive	Accessible, clear, and sufficient information for social actors and local communities whose rights may be affected by projects fosters consensus between HOCHTIEF and Indigenous peoples.
S3-3	Affected communities	Rights of Indigenous peoples (Free, prior, and informed consent)	negative	Violations of information rights can result in negative impacts on Indigenous groups in relation to hiring, or encroachment on land, territories, resources, or cultural, intellectual, religious, or spiritual property.
S3-3	Affected communities	Rights of Indigenous peoples (Self-determination)	negative	Construction projects may involve collaboration with Indigenous communities in project planning, management, and implementation. This provides Indigenous groups with opportunities to develop leadership capabilities, engineering expertise, and project management skills, enabling them to contribute effectively in decision-making processes and assume leadership roles.

ESRS	Topic	Sub-topic	Impact type	Description
S4-2	Consumers and end-users	Personal safety of end-users (Personal safety)	negative	Unsecured construction sites can have negative impacts on the safety of persons near construction sites.
G1-1	Business conduct	Corporate culture	positive	HOCHTIEF contributes to economic and social development through tax payments and collaboration with tax authorities, reducing inequalities and enhancing fiscal transparency.
G1-1	Business conduct	Corporate culture	positive	Greater capacity to take advantage of opportunities in ESG dimensions as a consequence of an active corporate culture that creates a more collaborative and creative work environment, which may lead to innovation and development of new products.
G1-1	Business conduct	Corporate culture	positive	Creating long-term economic value for shareholders, investors, and the local economy through a good compliance system.
G1-1	Business conduct	Corporate culture	negative	Lack of a corporate culture can lead to the occurrence of cases related to the topics covered in the Code of Conduct.
G1-1	Business conduct	Corporate culture (Cybersecurity)	negative	Unauthorized access to confidential data due to security deficiencies in a company's computer systems
G1-2	Business conduct	Protection of whistleblowers	positive	Establish mechanisms to monitor complaints, ensure anonymity, and protect whistleblowers to create an open culture.
G1-2	Business conduct	Protection of whistleblowers	negative	Failure to establish whistleblowing channels for internal and external complaints and/or failure to ensure whistleblower protection leads to high barriers for reporting and lack of trust.
G1-5	Business conduct	Management of relationships with suppliers including payment practices	positive	Promoting fair conditions such as fair payment practices for suppliers, irrespective of their market share, can have a positive impact both on suppliers as a whole as well as on the communities and workers associated with suppliers.
G1-5	Business conduct	Management of relationships with suppliers including payment practices	positive	Implementation of sustainable measures by suppliers through raising awareness in the sector ("leading by example"). Promoting sustainable practices across the economy by incorporating ESG criteria and clauses in supply chain management. This can promote greater cooperation and the same interests, which in turn has a positive effect on the relationship.
G1-5	Business conduct	Management of relationships with suppliers including payment practices	negative	Long/overstepped payment periods can result in suppliers not being able to make their own payments to their suppliers or employees and thus incurring high additional costs or even going bankrupt.

ESRS	Topic	Sub-topic	Impact type	Description
G1-5	Business conduct	Management of relationships with suppliers including payment practices	negative	Procurement of materials from high-risk countries and suppliers may have negative impacts on human rights.
G1-6	Business conduct	Corruption and bribery (Prevention and detection including training)	positive	Ensuring a high training rate in relation to corruption prevention can raise awareness and thus reduce corruption and bribery in society as well as along HOCHTIEF's entire value chain.
G1-6	Business conduct	Corruption and bribery (Prevention and detection including training)	positive	Strictly applying anti-corruption and anti-bribery practices including, among others, audits leads to a positive impact on anti-corruption and anti-bribery.
G1-6	Business conduct	Corruption and bribery (Prevention and detection including training)	negative	Inadequate anti-corruption measures that lead to market distortions and the circumvention of environmental regulations have a potentially negative impact on the environment and society and can, for example, encourage and reinforce inequality and poverty in society.
G1-6	Business conduct	Corruption and bribery (Incidents)	positive	Existence of procedures for reporting unlawful behavior through various communication channels such as the whistleblowing hotline. This has a positive influence on the reporting of cases-reducing the likelihood that compliance cases will not be reported-and increases market participants' overall level of trust.
G1-6	Business conduct	Corruption and bribery (Incidents)	negative	Failure to investigate incidents can lead to corruption in HOCHTIEF's own operations or value chain and can increase social injustice, inequality, and economic instability of people and communities.
H1-1	Innovation and digital transformation	Innovation and digital transformation	positive	As a technically oriented, global infrastructure group with a rapidly growing presence in the high-tech, energy transition, and sustainable infrastructure markets, HOCHTIEF can contribute positively to the development of innovations within the construction industry, cross-sector industries, and society at large through its worldwide activities, broad portfolio of suppliers, and heterogeneous client base. By promoting digital solutions in our projects, we can foster digitalization and finetune solutions to make processes and assets more efficient, climate-friendly, and sustainable throughout their life cycle. Likewise, innovation and digitalization function as a booster for positive impacts across all dimensions of sustainability-for example, through digital systems to further optimize occupational safety and health, track the value chain of building materials, and foster alternative building materials with significantly lower carbon emissions.

Overview of material risks and opportunities from the double materiality assessment at HOCHTIEF (2024)

ESRS	Topic	Sub-topic	Risk/ opportunity	Description
E1-1	Climate change	Climate change mitigation	Opportunity	Given the increasing demand for sustainable projects as well as by exploring new business fields with a focus on climate change mitigation, HOCHTIEF can benefit financially.
E1-1	Climate change	Climate change mitigation	Risk	Rising operating costs due to climate change coupled with corresponding mitigation measures may trigger a reduction in demand from clients, resulting in a decrease in sales for HOCHTIEF.
E1-2	Climate change	Climate change adaption	Opportunity	Significant increase in demand for metals needed for a suc-cessful energy transition creates considerable financial benefits.
E1-2	Climate change	Climate change adaption	Opportunity	Demand for resilient infrastructures and climate change adaptation projects is expected to rise, leading to new market opportunities and higher sales.
E1-2	Climate change	Climate change adaption	Risk	Growing demand for-and the strategic focus on-minerals Growing demand for-and the strategic focus on-minerals essential to the energy/mobility transition are expected to result in a decline from historically important segments such as contract mining, with a risk of lower earnings opportunities and potential negative impacts on reputation.
E1-2	Climate change	Climate change adaption	Risk	Reduced profitability due to unforeseen events/consequences during the construction phase (e.g. extreme weather events). This means increased insurance costs as well as construction and supply chain delays.
E1-3	Climate change	Energy	Opportunity	Growing demand in the high-tech infrastructure sector in energy and mobility transition could lead to greater demand for projects and thus higher sales.
E1-3	Climate change	Energy	Risk	Rising costs from increasingly strict regulation and/or taxation (for example, regarding the use of fossil fuels and GHG) may trigger a reduction in demand for projects from clients, resulting in a decrease in revenue.
E3-1	Water and marine resources	Water	Risk	There is a risk of disruption to access to water as the water cycle is adversely affected by climate change and other actors' withdrawals, holding up construction.
E5-1	Resource use and circular economy	Resource inflows	Opportunity	Circular practices coupled with efficient resource and material use have a positive economic impact on HOCHTIEF's business activities.
E5-2	Resource use and circular economy	Resource outflows	Opportunity	By providing long-lasting, circular solutions, HOCHTIEF can gain a competitive advantage, reduce operating costs, and maximize resource efficiency.

ESRS	Topic	Sub-topic	Risk/ opportunity	Description
E5-3	Resource use and circular economy	Waste	Opportunity	Waste prevention can lead to cost savings, for example, through lower material requirements, low disposal costs, and potential revenue from the sale of separated waste.
S1-2	Own workforce	Equal treatment and opportunities for all (Measures against violence and harassment in the workplace)	Opportunity	Through measures to prevent inequality and harassment, HOCHTIEF can become a more attractive employer for highly qualified professionals.
G1-1	Business conduct	Corporate culture	Opportunity	A strong business code of conduct can foster a more collab-orative and creative work environment, which may lead to innovation and development of new products.
G1-2	Business conduct	Protection of whistleblowers (Material im-pacts-political engagement and lobbying activities)	Risk	Inadequate reporting systems and poor protection of whistleblowers can lead to compliance violations, sanctions up to the point of blacklisting, and fines, as well as poor reputation.
G1-4	Business conduct	Political engagement and lobbying activities	Risk	Legal and reputational risks due to prohibited and unethical/unlawful political influence, including blacklisting.
G1-4	Business conduct	Political engagement and lobbying activities	Risk	Anti-competitive behavior can cause long-term harm to HOCHTIEF's reputation, leading to decreased brand value and customer loyalty. If HOCHTIEF is guilty of anti-competitive practices, the company will face fines and penalties.
G1-6	Business conduct	Corruption and bribery (Incidents)	Risk	Cases of corruption within the HOCHTIEF Group can result in financial losses due to fines and loss of sales as well as reputational damage.
G1-6	Business conduct	Corruption and bribery (Incidents)	Risk	Risk of being blacklisted for public tenders in case of com-pliance violations/corruption cases.
H1-1	Innovation and digital transformation	Innovation and digital transformation	Chance	Innovation and digitalization are the main drivers of a successful sustainable transformation across the entire value chain in our industry. Both contribute to significant improvements in the design, construction, and operation of projects. Deploying cutting-edge technologies and techniques allows us to execute our work much more efficiently, economically, and sustainably at lower cost-for instance, by reducing the use of construction materials, the volume of waste generated, and energy consumption. In this way, innovation and digitalization enhance our market competitiveness because our expertise lets us provide clients with more sustainable solutions that tap into higher margins, increased market share, and fresh business opportunities.

Management of impacts, risks, and opportunities

The previous assessment of material topics has been replaced in 2024 by the identification of matters pursuant to the double materiality principle. We have identified and assessed the material impacts, risks, and opportunities for the HOCHTIEF Group in a comprehensive process.

Description of the process to identify and assess material impacts, risks, and opportunities

We conducted a double materiality assessment (DMA) in the reporting year in accordance with ESRS requirements. It is based on a systematic assessment of the financial materiality and impact materiality of sustainability matters along our value chain. In a structured process, internal stakeholders were involved and the interests and views of external stakeholders represented in order to identify and prioritize material sustainability aspects and assess their impact on our business model, the environment, and society. The findings of this assessment form the basis of our sustainability strategy and determine the focus of our reporting in accordance with ESRS requirements.

The assessment was carried out in several iterations and was based on a top-down approach with bottom-up validation. Both internal and external stakeholder perspectives were taken into account.

• Top-down: HOCHTIEF Aktiengesellschaft performed a double materiality assessment for every ESRS topic, including all business activities within the Group, the entire upstream and downstream value chain, and stakeholder perspectives and interests.
• Bottom-up: Assessments were obtained from the operating companies in order to take explicit account of their specific perspectives and to identify differences, such as differing local stipulations and circumstances. To enable thorough validation of the preliminary findings, the operating companies were provided in advance with a CSRD information package containing comprehensive information about the planned process. The feedback from all operating companies was then analyzed and appraised at the level of the HOCHTIEF Group.

As a first step and in preparation for the materiality assessment, HOCHTIEF's business activities were analyzed in context in order to gain a better understanding of potential impacts along the entire HOCHTIEF value chain. Based on the ESRS requirements as well as internal and external data sources, a list of potentially material, historical, and possible future impacts, risks, and opportunities (IROs) was then compiled. These were identified in collaboration with in-house departments and supplemented with external media analyses as well as established due diligence and risk management processes. The IROs were assessed for the two dimensions of double materiality:

• Impact materiality: An ESRS sustainability matter is identified as material if positive and/or negative impacts from our business activities are identified that have a significant impact on people, the environment, or society ("inside-out").
• Financial materiality: An ESRS sustainability matter is identified as material if it has or can be expected to have a significant influence on HOCHTIEF's finances. This is reflected in the presentation of (potential) financial risks and opportunities.

Integration of the stakeholder perspective

Communication by HOCHTIEF experts with relevant stakeholder groups and incorporating their views and interests into HOCHTIEF's business and sustainability strategy have constituted an integral practice at HOCHTIEF for many years. HOCHTIEF's decision to use the stakeholder representation approach for the double materiality assessment in 2024 is the outcome of several past and recent stakeholder dialogue events, online surveys, and direct interaction between employees and relevant stakeholder groups. HOCHTIEF experts from various corporate units and operational businesses - with over a decade of experience in stakeholder engagement and related communications-participated in the materiality assessment. This ensured that the perspectives and interests of relevant internal and external stakeholders were accurately taken into account and incorporated into identifying and assessing impacts, risks, and opportunities along the company's value chain.

As an outcome of the assessment of stakeholder interests in accordance with the ESRS disclosure requirements, numerous stakeholders were identified to an equal extent both as users of our sustainability information and as groups affected by our activities and operations. One linkage here involves the fact that affected groups in particular have a heightened interest in changes in sustainability information, as the changes may have a direct impact on their own situation.

By carrying out the double materiality assessment in accordance with ESRS, we ensure that core elements of corporate due diligence are consistently integrated into the corporate strategy. This specifically includes the identification, assessment, and management of potential risks and impacts on the environment and society along the entire value chain. In this way, the findings from the DMA inform our strategic decision-making processes and support sustainable business conduct.

A total of 25 out of 37 ESRS sub-topics were assessed as material: 12 under Environment (E), eight under Social (S), and five under Governance (G). Twelve ESRS sub-topics were assessed as non-material. One topic-innovation and digital transformation-was identified and assessed as a company-specific material matter. A final review was carried out by the Executive Board, who then adopted the results of the double materiality assessment. Compared to the prior year, a larger number of sustainability matters were classified as material in accordance with the ESRS. This highlights the growing importance of ESG matters for HOCHTIEF and underscores the company's ambition to address material matters purposefully and effectively. The results of the materiality analysis inform strategic planning and the development of actions to minimize sustainability impacts and risks and systematically exploit opportunities.

The double materiality assessment is reviewed and updated annually at HOCHTIEF to ensure that changing market dynamics and regulatory requirements as well as new and heightened stakeholder expectations are continuously incorporated into the sustainability strategy and adequately addressed.

Process to identify, assess, prioritize, and monitor the undertaking's potential and actual impacts (impact materiality)

In the following, we describe how one of the two components of double materiality-impact materiality-has been defined and assessed for impacts and corresponding ESRS topics. For this purpose, actual and potential (positive and negative) impacts of our business activities along the entire value chain were analyzed and assessed for materiality parameters such as their scope with regard to the environment and society, their geographical reach, and their impacts in terms of human rights. The impact materiality or severity resulting from these parameters makes it possible to prioritize material impacts by severity.

It should be noted that, both for impacts and for financial risks and opportunities, materiality parameters are assessed without taking into account any preventive measures (prior to occurrence) or rehabilitation, restoration, or compensation measures (subsequent to occurrence). Accordingly, impacts are fundamentally analyzed, and impacts, risks, and opportunities assessed, on a gross basis.

Actual and potential impacts

Actual impacts relate to events that occur in the present or have occurred (or recurred) within a period of up to 12 months. Potential impacts relate to events that do not occur in the present but could occur over a short-, medium-, or long-term time horizon, in conjunction with their likelihood of occurrence.

Materiality parameters for positive and negative impacts

The following table shows the materiality parameters and thresholds applied to assess positive and negative impacts in the materiality assessment in accordance with ESRS. Each impact identified was assessed individually against the specified materiality parameters. The overall materiality of each impact was then determined using the calculation methodology shown in the table, together with qualitative parameters in accordance with ESRS (time horizons; value chain location; caused or contributed). This made it possible to systematically prioritize the impacts by materiality.

Materiality parameters for potential impacts
Materiality parameters for actual impacts
Scale	Scope	Irremediability	Likelihood of occurrence		Negative human rights impact
Severity of environmental and social impact	Geographic reach of impact: How many areas and people affected; boundaries of affected supply chains	Remediability of negative impacts (does not apply to positive impacts)	How likely the impact is to occur (with time horizon in each case)		Impacts classified as having a negative human rights impact under the UN Universal Declaration of Human Rights and the European Union Charter of Fundamental Rights
5: Very high 4: High 3: Medium 2: Low 1: Very low/none	5: Global/total 4: Widespread 3: Medium 2: Concentrated 1: Limited/none	5: Not remedial	4. Very likely ( $<75$ \%) 3: Likely ( $50-75$ \%) 2: R		Potential impacts with an identified negative human rights impact are given a $100 \%$ likelihood of occurrence
Impact materiality calculation methodology
	Actual impacts		Positive impacts
Positive	(Scale + Scope) $\times 1.5$		(Scale + Scope) $\times 1.5 \times$ Likelihood of Occurrence
Negative	Scale + Scope + Irremediability		(Scale + Scope + Irremediability) $\times$ Likelihood of Occurrence
The final materiality level is a score on a scale from 0 to 15 . An impact is material if its score is greater or equal to eight. In accordance with ESRS, impacts identified as having a negative human rights impact are given a $100 \%$ likelihood of occurrence.

Process to identify, assess, prioritize, and monitor financial risks and opportunities (financial materiality)

The second component of double materiality is financial materiality. A sustainability aspect is financially material if it has, or can have, a significant financial impact on the organization. This is the case if there are risks or opportunities in connection with sustainability matters that have, or will have, a material impact on the organization's cash flow, development, performance, position, cost of capital, or access to finance. The magnitude of financial materiality is hence given as a specific (monetary) amount or, in the case of a potential financial impact of a risk or opportunity, a range. Quantitative thresholds are applied for financial materiality. These are based on the amounts used in Group-wide risk reporting. The analysis was done in all cases on a gross basis (before materialization and prior to any mitigation actions). In addition, when identifying financial risks and opportunities, we considered whether dependencies and impacts could give rise to risks and opportunities, which were then included in the materiality assessment.

Materiality parameters for financial risks and opportunities

The following table shows the materiality parameters and thresholds applied to assess financial risks and opportunities in the materiality assessment in accordance with ESRS. Each identification of an opportunity or risk was assessed individually against the specified materiality parameters. This was based both on existing risk analyses and on the interests and perspectives of HOCHTIEF stakeholders. The overall materiality of each impact was then determined using the calculation methodology shown in the table, together with qualitative parameters in accordance with ESRS (time horizons and value chain location). This made it possible to systematically prioritize the sustainability risk and opportunities by financial materiality.

Materiality parameters for financial risks and opportunities

Financial scale

Magnitude of financial effect on HOCHTIEF

5: Very high
4: Highly
3: Medium
2: Low
1: Limited/none

Likelihood of occurrence

Likelihood of the financial risk or financial opportunity

Very likely $(>75 \%)$
Likely $(50-75 \%)$
Rather unlikely $(25-50 \%)$
Unlikely $(<25 \%)$

Financial materiality calculation methodology

Financial risks

Financial Magnitude $\times$ Likelihood of Occurrence
The final materiality level is a score on a scale from 0 to 5 .
A financial risk or opportunity is material if its score is greater or equal to three.

Climate scenario analysis

Climate scenario analysis is an integral part of the current and future appraisal of our business activities. HOCHTIEF has conducted a comprehensive climate scenario analysis to identify and manage the potential physical and transition risks associated with climate change. The aim of this analysis is to identify and assess potential climate-related risks and opportunities along the entire value chain and to take proactive management action. It is based on international standards such as ISO 14091 and existing climate-related documents such as the HOCHTIEF Group Report of the Task Force on Climate-related Financial Disclosures (TCFD), and takes the corresponding risks into account. The scenario analysis focuses on HOCHTIEF's direct operating activities (such as construction and services projects as well as concessions) and additionally takes into account upstream processes (including supply chains and materials procurement) and downstream processes (such as use and operation of infrastructure constructed by HOCHTIEF). While risks are analyzed with respect to the geographic distribution of our projects, this presents a particular challenge in that the specific location of future projects is frequently unknown.

Based on internationally recognized climate scenarios, the climate scenario analysis includes the main drivers associated with those scenarios. For physical risks, HOCHTIEF uses the SSP2-RCP4.5 and SSP5-RCP8.5 scenarios from the reports of the Intergovernmental Panel on Climate Change (IPCC). These scenarios simulate various emission pathways and their potential impacts on climate parameters such as temperature, precipitation, and extreme weather events. All acute and chronic drivers of climate change listed in the EU taxonomy were taken into account in the analysis of physical risks. For transition risks, use is made of the International Energy Agency (IEA) STEPS (Stated Policies Scenario) and NZE (Net Zero Emissions by 2050) scenarios. STEPS reflects current policies while the NZE scenario assumes a zero-carbon economy by 2050.

The analysis is performed over several time horizons, which differ according to the scenario and the underlying methodology. For physical risks, the time periods analyzed are short-term (up to five years), medium-term (2020 to 2049), and long-term (up to 2065). Transition risks are assessed for the periods 2022 to 2035 and 2036 to 2050. The different time horizons are necessary because, in many cases, transitional risks such as regulatory changes or technological innovations arise sooner than physical risks, which are more likely to materialize farther into the future as a result of long-term climate developments. Using the selected scenarios enables HOCHTIEF to take an integrated view of plausible risks and uncertainties.

To account for the great diversity in our project portfolio, our climate risk analysis methodology is structured around project types or what are known as proxies. For each project type-for example, buildings, rail infrastructure, or highways-we identify the most important assets and services exposed to impacts of climate change. These show varying degrees of sensitivity to the different drivers of climate change, which include acute and chronic changes in precipitation and temperature, as well as other drivers listed in the Annex to the EU Taxonomy. Integrating geographical information and project types into this analysis allows us to systematically assess the drivers of climate change across different time horizons and scenarios and thus to determine the exposure and vulnerability of our projects to the risks concerned. This enables a comprehensive, project-specific risk analysis. Our approach is dynamic and subject to ongoing development by adding new project types or adapting the parameters for sensitivity and exposure in line with the latest insights from scientific research, industry, and our own experience.

Disclosure Requirements in ESRS covered by the undertaking's sustainability statement

List of the disclosure requirements complied with in preparing the sustainability statement, following the outcome of the materiality assessment

ESRS section	Disclosure requirement complied with in preparing the sustainability statement, following the outcome of the materiality assessment	Page number in report
Environmental information		142
ESRS E1-Climate change	GOV-3	144
ESRS E1-Climate change	E1-IRO-1	144
ESRS E1-Climate change	E1-SBM-3	146
ESRS E1-Climate change	E1-1	147
ESRS E1-Climate change	E1-2	147
ESRS E1-Climate change	E1-3	151
ESRS E1-Climate change	E1-4	158
ESRS E1-Climate change	E1-5	164
ESRS E1-Climate change	E1-6	165
ESRS E1-Climate change	E1-7	166
ESRS E1-Climate change	E1-8	166
ESRS E2-Pollution	E2-IRO-1	172
ESRS E2-Pollution	E2-1	172
ESRS E2-Pollution	E2-2	176
ESRS E2-Pollution	E2-3	182
ESRS E2-Pollution	E2-4	185
ESRS E3-Water and marine resources	E3-IRO-1	189
ESRS E3-Water and marine resources	E3-1	191
ESRS E3-Water and marine resources	E3-2	193
ESRS E3-Water and marine resources	E3-3	193
ESRS E3-Water and marine resources	E3-4	198
ESRS E4-Biodiversity and ecosystems	E4-IRO-1	202
ESRS E4-Biodiversity and ecosystems	E4-SBM-3	204
ESRS E4-Biodiversity and ecosystems	E4-1	204
ESRS E4-Biodiversity and ecosystems	E4-2	206
ESRS E4-Biodiversity and ecosystems	E4-3	209
ESRS E4-Biodiversity and ecosystems	E4-4	209
ESRS E4-Biodiversity and ecosystems	E4-5	215
ESRS E5-Resource use and circular economy	E5-IRO-1	218
ESRS E5-Resource use and circular economy	E5-1	219
ESRS E5-Resource use and circular economy	E5-2	225
ESRS E5-Resource use and circular economy	E5-3	225
ESRS E5-Resource use and circular economy	E5-4	235
ESRS E5-Resource use and circular economy	E5-5	235
Social information		250
ESRS S1-Own workforce	S1-SBM-2	251
ESRS S1-Own workforce	S1-SBM-3	255
ESRS S1-Own workforce	S1-1	255
ESRS S1-Own workforce	S1-2	257
ESRS S1-Own workforce	S1-3	258
ESRS S1-Own workforce	S1-4	259
ESRS S1-Own workforce	S1-5	259

ESRS S1-Own workforce	S1-6	270
ESRS S1-Own workforce	S1-8	272
ESRS S1-Own workforce	S1-9	272
ESRS S1-Own workforce	S1-10	273
ESRS S1-Own workforce	S1-12	273
ESRS S1-Own workforce	S1-13	273
ESRS S1-Own workforce	S1-14	274
ESRS S1-Own workforce	S1-15	275
ESRS S1-Own workforce	S1-16	275
ESRS S1-Own workforce	S1-17	276
ESRS S2-Workers in the value chain	S2-SBM-2	277
ESRS S2-Workers in the value chain	S2-SBM-3	279
ESRS S2-Workers in the value chain	S2-1	280
ESRS S2-Workers in the value chain	S2-2	281
ESRS S2-Workers in the value chain	S2-3	282
ESRS S2-Workers in the value chain	S2-4	283
ESRS S2-Workers in the value chain	S2-5	283
ESRS S3-Affected communities	S3-SBM-2	288
ESRS S3-Affected communities	S3-SBM-3	290
ESRS S3-Affected communities	S3-1	290
ESRS S3-Affected communities	S3-2	292
ESRS S3-Affected communities	S3-3	294
ESRS S3-Affected communities	S3-4	294
ESRS S3-Affected communities	S3-5	294
ESRS S4-Consumers and end-users	S4-SBM-2	298
ESRS S4-Consumers and end-users	S4-SBM-3	300
ESRS S4-Consumers and end-users	S4-1	300
ESRS S4-Consumers and end-users	S4-2	301
ESRS S4-Consumers and end-users	S4-3	301
ESRS S4-Consumers and end-users	S4-4	302
ESRS S4-Consumers and end-users	S4-5	302
Governance information		303
ESRS G1-Business conduct	GOV-1	304
ESRS G1-Business conduct	G1-1	307
ESRS G1-Business conduct	G1-2	313
ESRS G1-Business conduct	G1-3	314
ESRS G1-Business conduct	G1-4	315
ESRS G1-Business conduct	G1-5	316
ESRS G1-Business conduct	G1-6	317
Innovation and digital transformation		318
ESRS H1-Innovation and digital transformation	H1-1	320
ESRS H1-Innovation and digital transformation	H1-2	322
ESRS H1-Innovation and digital transformation	H1-3	325

Table of all datapoints in the sustainability statement that derive from other EU legislation

ESRS disclosure department and related datapoint	Reported in HOCHTIEF sustainability statement $\checkmark$ Yes $\times$ No, not material	SFDR reference (1)	Pillar 3 reference (2)	Benchmark Regulation reference (3)	EU Climate Law reference (4)
ESRS 2 GOV-1 Gender diversity in management and governing bodies paragraph 21 (d)	$\checkmark$	Indicator number 13 of Table #1 of Annex 1	$-$	Commission Delegated Regulation (EU) 2020/1816 (5), Annex II	$-$
ESRS 2 GOV-1 Percentage of board members who are independent paragraph 21 (e)	$\checkmark$	$-$	$-$	Delegated Regulation (EU) 2020/1816, Annex II	$-$
ESRS 2 GOV-4 Statement on due diligence paragraph 30	$\checkmark$	Indicator number 10 Table #3 of Annex 1	$-$	$-$	$-$
ESRS 2 SBM-1 Involvement in activities related to fossil fuel activities paragraph 40 (d) i	$\checkmark$	Indicators number 4 Table #1 of Annex 1	Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 (6) Table 1: Qualitative information on Environmental risk and Table 2: Qualitative information on Social risk	Delegated Regulation (EU) 2020/1816, Annex II
ESRS 2 SBM-1 Involvement in activities related to chemical production paragraph 40 (d) ii	$\times$	Indicator number 9 Table #2 of Annex 1		Delegated Regulation (EU) 2020/1816, Annex II
ESRS 2 SBM-1 Involvement in activities related to controversial weapons paragraph 40 (d) iii	$\times$	Indicator number 14 Table #1 of Annex 1			Delegated Regulation (EU) 2020/1818 (7), Article 12(1), Delegated Regulation (EU) 2020/1816, Annex II
ESRS 2 SBM-1 Involvement in activities related to cultivation and production of tobacco paragraph 40 (d) iv	$\times$			Delegated Regulation (EU) 2020/1818, Article 12(1), Delegated Regulation (EU) 2020/1816, Annex II
ESRS E1-1 Transition plan to reach climate neutrality by 2050 paragraph 14	$\checkmark$				Regulation (EU) 2021/1119, Article 2(1)
ESRS E1-1 Undertakings excluded from Paris-aligned Benchmarks paragraph 16 (g)	$\checkmark$		Article 449a; Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 1: Banking book - Climate change transition risk: Credit quality of exposures by sector, emissions and residual maturity	Delegated Regulation (EU) 2020/1818, Article12.1 (d) to (g), and Article 12.2
ESRS E1-4 GHQ emission reduction targets paragraph 34	$\checkmark$	Indicator number 4 Table #2 of Annex 1	Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 3: Banking book - Climate change transition risk: alignment metrics	Delegated Regulation (EU) 2020/1818, Article 6
ESRS E1-5 Energy consumption from fossil sources disaggregated by sources (only high climate impact sectors) paragraph 38	$\checkmark$	Indicator number 5 Table #1 and Indicator number 5 Table #2 of Annex 1
ESRS E1-5 Energy consumption and mix paragraph 37	$\checkmark$	Indicator number 5 Table #1 of Annex 1
ESRS E1-5 Energy intensity associated with activities in high climate	$\checkmark$	Indicator number 6 Table #1 of Annex 1

ESRS d1-6 Gross Scope 1, 2, 3 and Total GHG emissions paragraph 44	Reported in HOCHTIEF sustainability statement Yes No, not material	SFDR reference (1)	Pillar 3 reference (2)	Benchmark Regulation reference (3)	EU Climate Law reference (4)
ESRS E1-6 Gross Scope 1, 2, 3 and Total GHG emissions paragraph 44	$\checkmark$	Indicators number 1 and 2 Table #1 of Annex 1	Article 449a; Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 1: Banking book - Climate change transition risk: Credit quality of exposures by sector, emissions and residual maturity	Delegated Regulation (EU) 2020/1818, Article 5(1), 6 and 8(1)
ESRS E1-6 Gross GHG emissions intensity paragraphs 53 to 55	$\checkmark$	Indicators number 3 Table #1 of Annex 1	Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 3: Banking book - Climate change transition risk: alignment metrics	Delegated Regulation (EU) 2020/1818, Article 8(1)
ESRS E1-7 GHG removals and carbon credits paragraph 56	$\checkmark$				Regulation (EU) 2021/1119, Article 2(1)
ESRS E1-9 Exposure of the benchmark portfolio to climate-related physical risks paragraph 66	$\checkmark$			Delegated Regulation (EU) 2020/1818, Annex II Delegated Regulation (EU) 2020/1816, Annex II
ESRS E1-9 Disaggregation of monetary amounts by acute and chronic physical risk paragraph 66 (a)	$\times$		Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 paragraphs 46 and 47: Template 5: Banking book - Climate change physical risk: Exposures subject to physical risk.
ESRS E1-9 Location of significant assets at material physical risk paragraph 66 (c)	$\times$		Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 paragraphs 34:Template 2:Banking book -Climate change transition risk: Loans collateralised by immovable property - Energy efficiency of the collateral
ESRS E1-9 Breakdown of the carrying value of its real estate assets by energy-efficiency classes paragraph 67 (c)	$\times$			Commission Delegated Regulation (EU) 2020/1818, Annex II
ESRS E1-9 Degree of exposure of the portfolio to climate- related opportunities paragraph 69	$\times$
ESRS E2-4 Amount of each pollutant listed in Annex II of the EPRTR Regulation (European Pollutant Release and Transfer Register) emitted to air, water and soil, paragraph 28	$\checkmark$	Indicator number 8 Table #1 and Indicator number 2 Table #2 of Annex 1
		Indicator number 1 Table #2 and Indicator number 3 Table #1 of Annex 1
ESRS E3-1 Water and marine resources paragraph 9	$\checkmark$	Indicator number 7 Table #2 of Annex 1
ESRS E3-1 Dedicated policy paragraph 13	$\checkmark$	Indicator number 8 Table 2 of Annex 1
ESRS E3-1 Sustainable oceans and seas paragraph 14	$\times$	Indicator number 12 Table #2 of Annex 1
ESRS E3-4 Total water recycled and reused paragraph 28 (c)	$\checkmark$	Indicator number 6.2 Table #2 of Annex 1
ESRS E3-4 Total water consumption in m3 per net revenue on own operations paragraph 29	$\checkmark$	Indicator number 6.1 Table #2 of Annex 1

ESRS disclosure requirement and related datapoint	Reported in HOCHTIEF sustainability statement Yes No, not material	SFDR reference (1)	Pillar 3 reference (2)	Benchmark Regulation reference (3)	EU Climate Law reference (4)
ESRS 2 - SBM-3 - E4 Paragraph 16 (b)	$\checkmark$	Indicator number 10 Table #2 of Annex 1
ESRS 2 - SBM-3 - E4 Paragraph 16 (b)	$\checkmark$	Indicator number 14 Table #2 of Annex 1
ESRS E4-2 Sustainable land/agriculture practices or policies paragraph 24 (b)	$\checkmark$	Indicator number 11 Table #2 of Annex 1
ESRS E4-2 Sustainable oceans/sea practices or policies paragraph 24 (c)	$\times$	Indicator number 12 Table #2 of Annex 1
ESRS E4-2 Policies to address deforestation paragraph 24 (d)	$\checkmark$	Indicator number 15 Table #2 of Annex 1
ESRS E5-5 Non-recorded waste paragraph 37 (d) Indicator number 13 Table #2 of Annex 1	$\checkmark$
ESRS E5-5 Hazardous waste and radioactive waste paragraph 39	$\times$	Indicator number 9 Table #1 of Annex 1
ESRS 2- SBM3 - S1 Risk of incidents of forced labour paragraph 14 (f)	$\checkmark$	Indicator number 13 Table #3 of Annex 1
ESRS 2- SBM3 - S1 Risk of incidents of child labour paragraph 14 (g)	$\checkmark$	Indicator number 12 Table #3 of Annex 1
ESRS S1-1 Human rights policy commitments paragraph 20	$\checkmark$	Indicator number 9 Table #3 and Indicator number 11 Table #1 of Annex 1
ESRS S1-1 Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8 , paragraph 21	$\checkmark$				Delegated Regulation (EU) 2020/1816, Annex 8
ESRS S1-1 Processes and measures for preventing trafficking in human beings paragraph 22	$\checkmark$	Indicator number 11 Table #3 of Annex 1
ESRS S1-1 Workplace accident prevention policy or management system paragraph 23	$\checkmark$	Indicator number 1 Table #3 of Annex 1
ESRS S1-3 Grevence/complaints handling mechanisms paragraph 32 (c)	$\checkmark$	Indicator number 5 Table #3 of Annex 1
ESRS S1-14 Number of fatalities and number and rate of workrelated accidents paragraph 88 (b) and (c)	$\checkmark$	Indicator number 2 Table #3 of Annex 1			Delegated Regulation (EU) 2020/1816, Annex 8
ESRS S1-14 Number of days lost to injuries, accidents, fatalities or illness paragraph 88 (e)	$\checkmark$	Indicator number 3 Table #3 of Annex 1
ESRS S1-16 Unadjusted gender pay gap paragraph 97 (a)	$\checkmark$	Indicator number 12 Table #1 of Annex 1			Delegated Regulation (EU) 2020/1816, Annex 8
ESRS S1-16 Excessive CEO pay ratio paragraph 97 (b)	$\checkmark$	Indicator number 8 Table #3 of Annex 1
ESRS S1-17 Incidents of discrimination paragraph 103 (a)	$\checkmark$	Indicator number 7 Table #3 of Annex 1

ESRS disclosure requirement and related datapoint	Reported in HOCHTIEF sustainability statement $\checkmark$	SFDR reference (1)	Pillar 3 reference (2)	Benchmark Regulation reference (3)	EU Climate Law reference (4)
ESRS S1-17 Non-respect of UNGPs on Business and Human Rights and OECD Guidelines para- graph 104 (a)	$\checkmark$	Indicator number 10 Table #1 and Indicator n. 14 Table #3 of Annex I		Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1)
ESRS 2- SBM3 - S2 Significant risk of child la- bour or forced labour in the value chain paragraph 11 (b)	$\checkmark$	Indicators number 12 and n. 13 Table #3 of Annex I
ESRS S2-1 Human rights policy commitments paragraph 17	$\checkmark$	Indicator number 9 Table #3 and Indicator number 11 Table #1 of Annex 1
ESRS S2-1 Policies related to value chain workers paragraph 18	$\checkmark$	Indicator number 11 and n. 4 Table #3 of Annex 1
ESRS S2-1 Non-respect of UNGPs on Business and Human Rights and OECD guidelines para- graph 19	$\checkmark$	Indicator number 10 Table #1 of Annex 1		Delegated Regulation (EU) 2020/1816, Annex II Delegated Req- ulation (EU) 2020/1818, Art 12 (1)
ESRS S2-1 Due diligence policies on is- sues addressed by the fun- damental International Labor Organisation Conventions 1 to 6, paragraph 19	$\checkmark$
ESRS S2-4 Human rights issues and incidents connected to its upstream and downstream value chain paragraph 36	$\checkmark$	Indicator number 14 Table #3 of Annex 1
ESRS S3-1 Human rights policy commitments paragraph 16	$\checkmark$	Indicator number 9 Table #3 and Indicator number 11 Table #1 of Annex 1
ESRS S3-1 ESRS S3-1 non-respect of UNGPs on Business and Human Rights, ILO principles or OECD guide- lines paragraph 17	$\checkmark$	Indicator number 10 Table #1 of Annex 1		Delegated Regulation (EU) 2020/1816, Annex II Delegated Req- ulation (EU) 2020/1818, Art 12 (1)
ESRS S3-4 Human rights issues and incidents paragraph 36	$\checkmark$	Indicator number 14 Table #3 of Annex 1
ESRS S4-1 ESRS S4-1 Policies related to consumers and end-users paragraph 16	$\checkmark$	Indicator number 9 Table #3 and Indicator number 11 Table #1 of Annex 1
ESRS S4-1 Non-respect of UNGPs on Business and Human Rights and OECD guidelines paragraph 17	$\checkmark$	Indicator number 10 Table #1 of Annex 1		Delegated Regulation (EU) 2020/1816, Annex II Delegated Req- ulation (EU) 2020/1818, Art 12 (1)
ESRS G1-1 United Nations Convention against Corruption paragraph 10 (b)	$\checkmark$	Indicator number 15 Table #3 of Annex 1

The DMA and the IRO assessment resulted in 12 sub-topics being identified as non-material for HOCHTIEF. These sub-topics are listed in the following table:

ESRS	Topic	Sub-topic	Reasons
E2-2	Pollution	Pollution of water	The HOCHTIEF Group consumes large quantities of water along its entire value chain. Most of this water is required for our own operational activities on construction sites, largely with no negative impact on water

ESRS	Topic	Sub-topic	Reasons
			quality. On the basis of this information, there is no significant risk of water becoming contaminated.
			Water pollution cannot be completely ruled out in the upstream value chain-for example, in the production of materials. HOCHTIEF is in a position to exert pressure on suppliers to take steps to reduce water pollution. This positive impact was not, however, determined to be material in the double materiality assessment.
			That means ESRS E2-2 is not a material topic for HOCHTIEF.
E2-4	Pollution	Pollution of living organisms and food resources	Pollution of living organisms and food resources is not material for HOCHTIEF, as the company's business model and activities are not associated with direct pollution of living organisms or food resources.
E2-5	Pollution	Substances of concern	Compared to other industries, the construction sector makes very limited use of substances of concern. The vast majority of materials used in our construction projects consist of harmless substances. Any materials that do fall under the category of substances of concern are incorporated into our buildings in such a way that any environmental impact during use or demolition is highly unlikely. In the event that existing materials in this category are encountered in conversion or demolition work, they are professionally disposed of in accordance with applicable law. As our activities and business model are not directly linked to the handling and use of substances of concern (except in very specific instances), we do not consider this matter to be material to our business.

ESRS	Topic	Sub-topic	Reasons
E2-6	Pollution	Substances of very high concern	Substances of very high concern are not used in our construction and dismantling processes. With regard to the decommissioning of nuclear power plants, HOCHTIEF neither produces hazardous waste itself nor is it responsible for waste management. Any materials in this category are dealt with in accordance with applicable law. Employee health and safety impacts are addressed under S1 topics. For that reason, substances of very high concern are non-material for HOCHTIEF.
E2-7	Pollution	Microplastics	We do not consider microplastics to be material for HOCHTIEF.
E3-2	Water and marine resources	Marine resources	HOCHTIEF's activities have material impacts on water consumption, withdrawals, and discharges. Due to the nature of our projectsmainly land-based infrastructure projects-these impacts generally have no relation to marine water or marine resources. Water discharges, withdrawals, and use of marine resources in the oceans are hence not considered to be material.
E4-2	Biodiversity and ecosystems	Impacts on the state of species	HOCHTIEF's business activities have no measurable impact on the population sizes of animal species. For projects in environmentally sensitive areas, the additional risks are taken into account in mandatory preconstruction assessments. That means species population size is a non-material topic for HOCHTIEF.
S2-3	Workers in the value chain	Other work-related rights	With regard to HOCHTIEF's activities, this sub-topic is not relevant for the purposes of the ESRS reporting standards.
S3-2	Affected communities	Communities' civil and political rights	HOCHTIEF's activities, including activities in the value chain, have no impact on the civil or political rights of affected communities. That is why this topic is non-material for HOCHTIEF.
S4-1	Consumers and end-users	Information-related impacts for consumers and/or end-users	As a global infrastructure and project management company, HOCHTIEF provides products and services that have no impact on data protection, freedom of expression, or access to sensitive information for consumers and end-users. Hence, this topic is not considered material.
S4-3	Consumers and end-users	Social inclusion of consumers and/or end-users	HOCHTIEF designs and builds projects on behalf of its clients, most of whom are in the public sector. Responsibility for the final decision on requirements and design lies with our clients. HOCHTIEF can inform clients about integrative solutions but has no direct influence in this regard. This topic is hence considered non-material for HOCHTIEF.
G1-3	Business conduct	Animal welfare	The topic of animal welfare is non-material for HOCHTIEF, as the company does not carry out any animal testing or similar activities. Potential impacts of construction activities on animals and their habitats are addressed under "Biodiversity."

The central decision-making basis for the sustainability reporting in the reporting year comprises the principles of materiality assessment set out in ESRS section 3.2. These form the basis for assessing the materiality of each disclosure requirement and each datapoint:

• Double materiality: consideration of the materiality of impacts and financial opportunities and risks
• Integration of stakeholder perspectives: engagement with internal and external stakeholders in decision-making on relevant information
• Holistic value chain analysis: assessment of impacts along the entire supply and value chain
• Analysis of different time horizons: assessment of short-, medium- and long-term impacts, risks, and opportunities

Applying these principles ensured a detailed assessment of the materiality of each information datapoint for accurate, transparent, and ESRS-compliant reporting. To ensure the ongoing relevance of the disclosed information, the materiality assessment is regularly reviewed and adapted to regulatory developments, changing stakeholder requirements, and market conditions.

Environmental information

ESRS E1

Climate change

Climate change mitigation and adaptation as key pillars of our sustainability strategy

A stable climate is fundamental to human wellbeing on our planet. Regular seasonal cycles are essential for our food supply, stable sea levels create safe conditions for coastal communities, and biodiversity adapted to the prevailing climate since the last ice age provides us with essential ecosystem services, such as oxygen production and water filtration. Nearly all global cycles of matter are controlled by the climate and a full understanding of these interlocking systems is not given until today. This highly complex and sensitive equilibrium is shifting. As a result of the rapid rise in greenhouse gas (GHG) emissions, the composition of the atmosphere is changing and the planet is becoming ever warmer. Moreover, anthropogenic activities diminish biodiversity and, with it, the natural resilience to compensate for such processes. Particularly over the long term, climate change can have severe and in part irreversible consequences for humanity and nature. The magnitude of those consequences heavily depends on the societal choices we make this present decade.

The main driver of climate change is greenhouse gas emissions, primarily from energy generation and industrial processes. According to the World Green Building Council, the building and construction sector currently accounts for around $35 \%$ of global energy consumption, $38 \%$ of energy-related GHG emissions, and $50 \%$ of resource consumption. ${ }^{1}$ That means that this sector has a special responsibility-and for HOCHTIEF as a global infrastructure group with resource- and emission-intensive construction as well as other services, climate change is front and center of its sustainability strategy. At the same time, we see ourselves as a catalyst for societal transformation processes needed to successfully adapt to climate change. With resilient projects and expertise in renewable energy, sustainable mobility, and critical infrastructure, we contribute to meeting the challenges of climate change and preparing for the future together with our business partners and society.

Climate change must be viewed here in close correlation with the remaining environmental standards (E2 to E5), as the matters are inextricably linked. The various strategies interlock and reinforce each other. Progress in decarbonization (E1), for example, also indirectly affects impacts covered in the other standards-in some cases significantly.

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[^0]: ${ }^{1}$ The Net Zero Carbon Buildings Commitment, World Green Building Council

Integration of sustainability-related performance in incentive schemes

In its variable compensation for the Executive Board, HOCHTIEF considers both financial and non-financial targets, including environmental, social, and governance (ESG) targets. ESG targets accounted for 20\% of the total variable compensation for members of the Executive Board in 2024 (for further information, please refer to section ESRS 2: General disclosures).

These cover various aspects of corporate responsibility and sustainability, including the implementation of measures under the HOCHTIEF Sustainability Plan 2025. A key component of variable compensation in 2024 related to the target of developing the Group-wide Green Energy Initiative, with a weighting of 5\%. This target was agreed since implementing renewable energy measures has a positive impact on our emissions along the entire value chain (Scopes 1, 2, and 3) (see E1-2, E1-3, and E1-5). The Green Energy Initiative is an integral part of our decarbonization levers. Its activities contribute directly to achieving our reduction targets for Scope 1 and Scope 2 emissions and indirectly to reducing Scope 3 emissions (see E1-2, E1-3, E1-4, and E1-5).

Material impacts

The material impacts were identified in the materiality assessment for 2024 conducted by HOCHTIEF in accordance with the double materiality principle. HOCHTIEF's assets and business activities throughout the value chain were assessed for actual and potential impacts, risks, and opportunities. This process is described in detail in the ESRS 2 General Disclosures section.

Positive impacts (PI)

Climate change mitigation

E1-PI1 With expertise covering the entire project life cycle in the construction business, HOCHTIEF can proactively provide low-carbon solutions to clients (and society) as well as sustainable solutions that generate fewer emissions. (actual; entire value chain)

Negative impacts (NI)

E1-NI1 Throughout our entire value chain, significant amounts of GHG emissions are generated, contributing to global warming and making extensive mitigation measures necessary. (actual; entire value chain)

E1-PI2 HOCHTIEF's global influence on stakeholders makes a positive contribution to implementing climate change mitigation solutions along the entire value chain.
(actual; entire value chain)

E1-PI3 By providing sustainable infrastructure projects to society (such as public transportation infrastructure and energy transition projects), HOCHTIEF makes a positive contribution to climate change mitigation.
(actual; entire value chain)

Climate change adaptation

E1-PI4 By offering our clients tailored design, build, operation, and maintenance solutions, HOCHTIEF can increase the climate resilience and longevity of their buildings and infrastructure projects.
(actual; entire value chain)

E1-PI5 HOCHTIEF's global influence on its stakeholders makes a positive contribution to implementing climate change adaptation measures along the entire value chain.
(actual; entire value chain)

Energy

E1-PI6 HOCHTIEF's global influence on its stakeholders enables us to create sustainable incentives on the market for the increased use of renewable energy as well as sustainable and efficient energy management practices.
(actual; entire value chain)

E1-PI7 By providing sustainable energy projects (solar parks, power lines, battery storage, ...) and sustainable mobility projects, we drive the energy and mobility transition.
(actual; entire value chain)

E1-NI2 High, project-driven energy consumption from non-regenerative resources leads to potentially high GHG emissions.
(actual; own activities)

Material opportunities and risks

Opportunities (O)
Climate change mitigation
E1-O1 Given the increasing demand for sustainable projects as well as by exploring new business fields with a focus on climate change mitigation, HOCHTIEF can benefit financially. (own activities and downstream value chain)

Climate change adaptation

E1-O2 Significant increase in demand for metals needed for a successful energy transition creates considerable financial benefits.
(own activities)

E1-O3 Demand for resilient infrastructures and climate change adaptation projects is expected to rise, leading to new market opportunities and higher sales.
(entire value chain)

Energy

E1-O4 Growing demand in the high-tech infrastructure sector in energy and mobility transition could lead to greater demand for projects and thus higher sales.
(entire value chain)

Risks (R)

E1-R1 Rising operating costs due to climate change coupled with corresponding mitigation measures may trigger a reduction in demand from clients, resulting in a decrease in sales for HOCHTIEF.
(entire value chain)

E1-R2 Growing demand for-and the strategic focus on minerals essential to the energy/mobility transition are expected to result in a decline from historically important segments such as contract mining, with a risk of lower earnings opportunities and potential negative impacts on reputation.
(own activities)

E1-R3 Reduced profitability due to unforeseen events/consequences during the construction phase (e.g. extreme weather events). This means increased insurance costs as well as construction and supply chain delays.
(own activities)

E1-R4 Rising costs from increasingly strict regulation and/or taxation (for example, regarding the use of fossil fuels and GHG) may trigger a reduction in demand for projects from clients, resulting in a decrease in revenue.
(entire value chain)

Results of the climate scenario analysis and resilience analysis

Following the double materiality assessment, including the climate scenario analysis (further information in the ESRS 2: General Disclosures section), a Group-wide resilience analysis was carried out in order to assess the company's resilience to the identified climate risks. This analysis takes into account the likelihood of occurrence and (financial) severity of the risks in relation to the company's ability to avoid or manage them. As the resilience analysis and the climate scenario analysis are closely related in terms of methodology, both processes were conceptualized on the basis of the TCFD and relate to the same time horizons, climate scenarios, and affected parts of the company. The description in section ESRS 2: General Disclosures of the drivers of the individual scenarios and the uncertainties arising from the proxy methodology also applies to both processes.

As a combined outcome of the two processes, no significant physical risks relating to climate change were identified for our business activities for any of the periods or scenarios analyzed. The main reasons for this are as follows:

• Short project durations: with an average duration of three to five years, most projects are not subject to longterm risks, and suitable adaptation measures are identified and implemented in all cases on a project-specific basis for short and medium-term risks. The short durations also allow HOCHTIEF to continuously and appropriately fine-tune the (risk) mitigation measures in the event of heightened long-term risks.
• Geographically very limited exposure to most physical risks: due to the large number and geographical diversity of our projects, any local physical risk will generally only affect an individual project and thus not be material in the Group-wide context.
• Thorough weighing of potential risks from the outset in the quotation and contract negotiation phase.

In addition, HOCHTIEF has a comprehensive internal catalog of (risk) mitigation measures that makes it easier for the operational units to implement effective measures to avoid physical risks.

The risks identified as material all fall into the category of transition risks, as they relate to market developments or regulatory changes that may result from the transition to a carbon neutral economy. We consider ourselves well prepared and expect the overall financial impact to be positive, particularly given our business strategy and the many opportunities: HOCHTIEF has significantly developed its expertise in the areas of low-carbon solutions, resilient infrastructure, and new business segments, and has further strengthened its market position in these areas (see sections E1 Climate change adaptation and H1 Innovation). As a reliable and established provider, the expected growth in demand for related projects for societal transformation processes (such as the energy and mobility transition) as climate change progresses means that we stand to benefit with positive financial effects.

HOCHTIEF's project-based business model as a managing contractor also lends it a high degree of flexibility to quickly adapt project operations to market developments or legislative changes. In light of these developments, we expect that the transition risks will not have a significant negative financial impact, and that opportunities with a positive financial impact for HOCHTIEF will continue to outweigh the risks. In addition, as the opportunities and risks are fully incorporated into HOCHTIEF's risk management system, the resilience of HOCHTIEF and its projects is continuously monitored and ensured.

E1-1 I E1-2

Policies related to climate change mitigation and adaptation; transition plan for climate change mitigation

For HOCHTIEF, climate change has long been a fundamental and central focus in its Group-wide environmental sustainability strategy. We plan to expand this strategic focus with the aim of making all our business activities climate-neutral in the long term (for further information, please refer to HOCHTIEF's GHG reduction targets), and with the goal of supporting our clients through our projects in successfully adapting to climate change. To this end, HOCHTIEF has gathered data on greenhouse gases for over ten years and worked continuously on methodically improving Group-wide coverage, accuracy, and tracking in order to facilitate avoiding and effectively managing GHG emissions in all activities. These activities are enshrined in our HOCHTIEF position paper on climate change mitigation and adaptation and our transition plan for climate change mitigation (our Net Zero Roadmap). As these strategic documents are closely interlinked and build on each other, they are presented in this section together with the main strategic initiatives. The position paper on climate change mitigation and adaptation was coordinated with all operational units and applies Group-wide.

Milestones in the HOCHTIEF climate change mitigation strategy

• 2001: First publication of an environmental report
• Since 2011: Accounting for selected emissions based on the GHG Protocol
• Continuous improvement in global ESG ratings: DJSI, MSCI, CDP, Sustainalytics
• Since 2014: Stakeholder dialogues on sustainability topics (including climate)
• 2015: Integration of climate and environmental protection into OSHEP Group Directive
• 2019: First publication of a TCFD paper

2021
Climate targets defined in the Sustainability Plan 2025

2023
HOCHTIEF GHG accounting document, definition of operational and organizational boundaries in accordance with the GHG Protocol

2023
Determination of total GHG emissions

2023
Extension of the main scope 3 categories

Climate change mitigation

Basis for the HOCHTIEF position paper and Net Zero Roadmap: GHG reduction targets

Following on from the annual reporting of our Scope 1 and 2 as well as selected Scope 3 emissions (3.1 Purchased products and services, 3.5 Waste generated in operations, and 3.6 Business travel) and publication of the first TCFD paper, we devised and rolled out the HOCHTIEF Sustainability Plan 2025 Groupwide in 2022. In this plan, alongside targets for all ESG dimensions, we notably formulated our climate targets and consolidated our Group-wide commitment to climate neutrality (net zero) by 2045. The reduction targets are science-based, align with the 1.5 degree target under the Paris Climate Agreement and the requirements of the Science Based Targets initiative (SBTi), and have been formally adopted by the HOCHTIEF Executive Board. Our climate change mitigation strategy and the associated transition plan are based on these commitments and the additional milestones set in 2023 for 2030 (for further information, please refer to the charts headed "Milestones in the HOCHTIEF climate change mitigation strategy," "HOCHTIEF's GHG reduction targets," and E1-4).

HOCHTIEF's GHG reduction targets ${ }^{1}$

GHG Accounting Document, determination of baseline figures, and additional Scope 3 categories

To take into account all material emission sources in the Scope 3 categories, we compiled a HOCHTIEF GHG Accounting Guidance Document in 2023 in accordance with the internationally recognized Greenhouse Gas Protocol ${ }^{2}$ and adopted it for the entire Group (reporting was previously based on that standard). Accordingly, HOCHTIEF determined baseline values for all GHG emissions in the Group and subsequently extended data collection to include additional material Scope 3 categories. As part of this methodology, we also specified our organizational and operational boundaries for data consolidation. We have since tracked GHG emissions in all material categories (further information on our material categories is provided in the explanatory notes at the end of this section) in order to monitor the progress of our climate protection strategy (see chart, "HOCHTIEF Group GHG emissions").

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[^0]: ${ }^{1}$ Under the science-based decarbonization pathway in line with the 1.5 degree target in the Paris Climate Agreement, greenhouse gas accounting is expected to cover at least $67 \%$ of all Scope 3 emissions for attainment of the short- and medium-term targets. As the latter targets were set without 3.15 , these emissions are included solely in the targets for 2038 and 2045.
${ }^{2}$ The Greenhouse Gas Protocol - A corporate accounting and reporting standard, revised edition, World Business Council for Sustainable Development and World Resources Institute

HOCHTIEF Group GHG emissions

Determining the baseline figures for GHG emissions gave HOCHTIEF full visibility across the generated emissions, allowing us to identify the main emission sources in our own operations. The following categories account for over 70\% of reporting-year GHG emissions reported by HOCHTIEF. This means they play a key role in relation to the transition plan, climate change mitigation, and our 2045 net zero target:

• Scope 1 and 2: Emissions caused by HOCHTIEF, mainly directly from the combustion of fuels on construction sites and indirectly from the generation of purchased electricity.
• Scope 3.1: Emissions caused indirectly by HOCHTIEF, mainly from the production of purchased construction materials such as concrete, cement, steel, asphalt, glass, and subcontractor works and services.
• Scope 3.11: Emissions caused indirectly by HOCHTIEF from the utilization phase of our projects.

This analysis revealed no material locked-in greenhouse gas emissions from key HOCHTIEF assets and products that may jeopardize the attainment of our emission reduction targets or drive transition risks. We deliver projects to our clients largely in the capacity of managing contractor, meaning that we have neither major assets nor products with material locked-in emissions.

Net Zero Roadmap

After obtaining full visibility of and accounting for all material GHG emissions and identifying the main emission sources at HOCHTIEF, the strategic priority shifted to preparing a transition plan for climate change mitigation (our Net Zero Roadmap). This transition plan was developed and agreed throughout the Group and formally adopted by the Executive Board in 2023. The plan is an integral part of HOCHTIEF's overarching business strategy. The climate change mitigation content in the position paper was closely based on this plan and is reported on here in relation to both documents.

Our transition plan sets out more than 50 individual measures across the main scope categories. It identifies the related reduction potential, enabling us to decarbonize and achieve our interim milestones in line with the 1.5 degree target under the Paris Climate Agreement. The measures are based on the HOCHTIEF mitigation hierarchy (for further information, please refer to the chart headed "GHG mitigation hierarchy at HOCHTIEF") and prioritize efficiency improvements to avoid and reduce emissions until alternative solutions can be implemented.

The remaining emissions can potentially be neutralized by carbon removal, capture, and storage (for further information, please refer to E1-7). Our focus is on action at the first three levels of the mitigation hierarchy. Carbon removal, capture, and storage is currently of secondary importance but presents long-term options and opportunities explained in greater detail below.

GHG mitigation hierarchy at HOCHTIEF

HOCHTIEF pursues targets and plans geared to avoiding and minimizing the GHG emissions and thus contributing to meeting the criteria set out in Delegated Regulation (EU) 2021/2139. This includes various investments and operational initiatives aimed at promoting sustainable practices and technologies in the Company's activities.

HOCHTIEF is actively committed to achieving the global climate targets. In this connection, we are working to reduce and minimize our carbon emissions down to net zero in accordance with EU reference values.

E1-3

Actions in relation to climate change policies

Decarbonization levers in HOCHTIEF's transition plan

The actions in the transition plan can be thematically assigned to four main decarbonization levers. These are described in the following and reported on in detail with the main actions under E1-3. The four levers not only address HOCHTIEF's main emission sources, but also pave the way for continuous reduction of our GHG emissions in all scope categories-in close collaboration with our clients and other stakeholders. Responsibility for implementation lies with the operational units, and progress is tracked against the targets (for further information, please refer to E1-4) as well as by monitoring, reporting, and control. Given the constant stream of market innovations and developments along with emerging (regulatory) requirements, we anticipate continuous adjustments to the action taken in order to keep HOCHTIEF on the optimum decarbonization path. The actions extend across all business activities and apply to all operating regions.

Action; Collaboration with clients and business partners

IROs: Relates to all material impacts, opportunities, and risks in E1	Time horizon for implementation: Short-, me- dium-, and long-term	Value chain: upstream own activities downstream
Relation to sustainability strategy:	- HOCHTIEF Sustainability Plan 2025 - All HOCHTIEF environmental position papers - HOCHTIEF position paper on climate change mitigation and adaptation, decarbonization lever 1 - Group directive on Occupational Safety, Health, Environmental and Climate Protection. - Mitigation hierarchy: All levels

Description of actions
Collaboration with clients and business partners is essential to the successful implementation of our transition plan and can be considered an overall driver in the implementation of action for all of the decarbonization levers and the subject matter of the remaining environmental sections. Our stakeholders-including clients, planners, subcontractors, suppliers, and research institutions-are crucial to implementing sustainability measures in our projects. Above all, this applies to clients who determine the conditions and scope for sustainable solutions-in some cases prior to the project award phase-and to our suppliers who provide low-emission construction materials and efficient machinery.

This means we work proactively with our clients to propose project-specific, low-emission solutions at all project stages. From HOCHTIEF's standpoint, giving greater and broader account to such low-carbon solutions and other sustainability criteria in the contract award process is essential to ensuring that decarbonization is tackled by all those involved in the value chain. This makes it possible to ensure that low-emission business practices are commercially viable for the construction industry, which in turn enables long-term demand for sustainable technologies and solutions as well as the establishment of such solutions by our suppliers and business partners. Especially with regard to low-emission construction materials, zero-emission machinery, and sustainable services, market incentives can hence be provided for developing innovative solutions along with key impetus for future legislation. The success of our decarbonization strategy thus heavily depends on the long-term development of incentives for our clients to establish low-emission and ultimately zero-emission solutions.

This collaboration is a key lever in HOCHTIEF's decarbonization strategy to drive the transformation of the construction and infrastructure sector toward greater sustainability. It paves the way construction projects to incorporate renewable energy sources as well as for the use of low-carbon materials, the implementation of efficient processes, and the promotion of circular economy concepts. HOCHTIEF regards all parties involved in projects as active partners in developing and realizing innovative and sustainable solutions.

Jointly setting goals early on, adapting design processes, and integrating sustainable approaches can make for more effective and resource-efficient project implementation. The following decarbonization measures have been implemented as a result of this kind of collaboration:

• Promotion of sustainable design-embodied carbon
• Promotion of sustainable design-operational carbon
• Promotion of circular design to reduce end-of-life project emissions
• Increase in the proportion of projects with early contractor involvement/integrated project delivery
• Promotion of project certification
• Performance of life cycle analyses/project carbon footprint analyses and optimization consulting
• Promotion of sustainable travel and mobility solutions for business travel and commuting

Actions implemented in the reporting year

Project	Outcomes
Siemensstadt Square	In this project, HOCHTIEF and its partners were able to reduce the carbon emissions of the
Berlin, Germany	6,000 cubic meter foundation slab by 60\%. For further information, please see the
HOCHTIEF Infrastructure	Engineering and Construction section. Following completion, the project targets LEED
	Platinum certification-the highest accolade for sustainable construction.

Action: Increasing efficiency and effectiveness

IROs: Relates to all material impacts, opportunities, and risks in E1	Time horizon for implementation: Short-, me- dium-, and long-term	Value chain: upstream own activities downstream
Relation to sustainability strategy	- HOCHTIEF Sustainability Plan 2025 - HOCHTIEF position paper on climate change mitigation and adaptation, decarbonization lever 2 - Group directive on Occupational Safety, Health, Environmental and Climate Protection. - Mitigation hierarchy: Increasing efficiency

Description of actions
Increasing efficiency and effectiveness is a key decarbonization lever at HOCHTIEF that cuts across various segments of our value chain, generating considerable potential for reducing GHG emissions across all scope categories. Resource-efficient design and project planning and execution can deliver significant savings in terms of material requirements (embodied carbon) and our waste volumes, while energy-efficient technologies reduce emissions in the operating phase of our products (operational carbon). Increasing the energy efficiency of our machinery and equipment plays a key role in our direct operating activities as it enables us to continuously reduce fuel-related emissions. Cutting-edge control systems as well as training for our construction site and office employees can also lead to emission reductions.

Measures to boost efficiency and effectiveness along the entire value chain:

• Technological improvement of construction machinery and vehicle energy efficiency
• Emission reduction through education campaigns and training
• Effective resource management and waste avoidance by way of optimized design, construction, and operation processes based, for example, on BIM, loT, digitalization, and innovation.
• Use of smart, digital solutions for all project phases
• Optimization of transport and logistics for the supply of construction sites
• Energy efficiency in the operation phase
• Optimization of construction processes by off-site prefabrication
• Increasing the energy efficiency of our own buildings and construction sites
• Identifying avoidable energy losses through measurement as well as monitoring of our own buildings and construction sites

Actions implemented in the reporting year

Project

EcoPro Site Facility
Sydney, Australia
CPB Contractors

Outcomes

CPB Contractors has developed the EcoPro Site Facility, a 100\% sustainable, off-grid mobile site office housed in a repurposed shipping container. To improve long-term sustainability, the office features high-efficiency appliances, sensor-activated lighting and climate control, tinted windows, insulation, and remote monitoring systems that combine to enhance energy efficiency. After undergoing testing, the unit is to be deployed to a project in Sydney, raising the bar in mobile site offices.

Action: Low-emission construction materials

IROs: Relates to all material impacts, opportunities, and risks in E1	Time horizon for implementation: Short-, me- dium-, and long-term	Value chain: upstream own activities downstream
Relation to sustainability strategy	- HOCHTIEF Sustainability Plan 2025 - HOCHTIEF position paper on climate change mitigation and adaptation, decarbonization lever 3 - Group directive on Occupational Safety, Health, Environmental and Climate Protection - Mitigation hierarchy: Increasing efficiency

Description of actions

The use of low-emission materials is a key lever in HOCHTIEF's decarbonization strategy as a large proportion of our emissions come from our materials purchases (Scope 3.1). Reducing emissions in the upstream production of concrete, steel, and asphalt in particular is crucial to HOCHTIEF's successful decarbonization. Measures here range from using recycled materials and promoting innovative, low-emission production processes for materials such as steel, concrete, and asphalt to incorporating renewable building materials such as timber. The use of existing building fabric (refurbishment) can not only significantly reduce the need for additional resources and the related emissions, but also generate financial benefits for HOCHTIEF and its clients. We can also reduce our Scope 3 emissions by basing supplier and subcontractor selection on sustainability criteria. The strategic use of recycled, resource-efficient, or innovative materials reduces environmental impacts and lays the groundwork for sustainable, economically efficient construction processes.

Key measures comprise:

• Increasing the use of low-carbon variants of mainstream materials (concrete, steel, asphalt, and glass)
• Increasing recycled content in construction materials
• Use of bio-based materials (such as timber)
• Stepping up sustainable procurement practices
• Reuse of existing building fabric (ideally by the use of cataloging and digital building passports)
• Promotion of projects using existing fabric
• Promotion of projects implementing maximum flexibility and repurposeability

Actions implemented in the reporting year

Project

Green concrete, HOCHTIEF

Google New York City Headquarters, New York City, USA Turner

Outcomes

One specific measure to reduce GHG emissions by using low-emission construction materials is the Group-wide Green Concrete initiative. In this initiative, HOCHTIEF analyzes all options, including optimized design, more efficient execution, and improving the concrete mix by using recycled materials or alternative binders with less clinker.

Turner Construction has completed Google's new New York City HQ. In converting a former rail freight terminal into an ultra-modern office building, Turner saved 78,400 tons of carbon emissions and $77 \%$ of the construction waste.

Action: Deployment of renewable energy

IROs: Relates to all material impacts, opportunities, and risks in E1

Time horizon for implementation: Short-, me- $\quad$ Value chain: dium-, and long-term
upstream own activities downstream

Relation to sustainability strategy

• HOCHTIEF Sustainability Plan 2025
• HOCHTIEF position paper on climate change mitigation and adaptation, decarbonization lever 4
• Group directive on Occupational Safety, Health, Environmental and Climate Protection.
• Mitigation hierarchy: Avoidance, increasing efficiency, sustainable solutions

Description of actions

Our operations, the upstream value chain, and our projects in their operational phase consume large amounts of energy that account for a big slice of Group GHG emissions. Replacing fossil fuels with renewable energies is a key lever in HOCHTIEF's decarbonization strategy and is something we can promote actively and directly.

As with increasing efficiency and effectiveness, energy-related measures have a positive impact on emissions throughout the value chain. Given the importance of this topic, the Group-wide Green Energy Initiative was developed and formally adopted by the Executive Board in 2024. The aim is to actively promote the integration of renewable energy sources into our business activities. Two of the four thematic areas in this initiative directly relate to energy as a decarbonization lever:

• Production and purchase of renewable energy: Our Scope 2 emissions can be significantly reduced by purchasing renewable energy or entering into long-term power purchase agreements (PPAs). HOCHTIEF additionally promotes generating renewable energy on construction sites and concession projects using solar panels, wind turbines, and systems for storing and distributing the energy generated. Moreover, this avoids Scope 1 emissions from diesel generators and means we can meet the increasing electricity requirements for electric machinery and equipment with renewable energy.
• Incorporating renewable energy generation into our projects: Besides the energy requirements in our operating activities, we can reduce or avoid emissions in the subsequent operating phase (Scope 3.11) by incorporating renewable energy generation into our projects. That is why we proactively offer our clients the option of incorporating renewable energy generation solutions such as solar systems fully integrated into projects or solar farms for energy generation.

Energy-related measures in addition to those contained in the Green Energy Initiative:

• Use of alternative fuels: An especially effective, short-term means of reducing our Scope 1 emissions is by increasingly substituting fossil fuels with alternatives such as hydrotreated vegetable oil (HVO).
• Alternative propulsion: In the medium to long term, most machinery and equipment used in our business activities is to be replaced by electric and/or hydrogen-powered alternatives or hybrid solutions. This opens the way for further reductions in Scope 1 emissions.
• Low-emission heating and cooling systems: As heating and cooling account for a large share of our project operating emissions (Scope 3.11), we can achieve significant savings by using heat pumps and geothermal systems in our projects as well as by means of operational improvements with renewable energy.
• Use of excess waste heat: In projects that generate significant quantities of waste heat energy, such as factories and data centers, the waste heat is used as a zero-emission heat source for the project itself, thus reducing emissions under Scope 3.11. Alternatively, it can be fed into existing local or district heat networks.

Actions implemented in the reporting year

Project

A1 highway bridge, Leverkusen, Germany, HOCHTIEF Infrastructure

Deployment of electric vehicles and equipment, USA, Turner

Green Energy Initiative, HOCHTIEF

Outcomes

Fitting solar panels on site containers has enabled the site to be partly powered by renewable energy, thus reducing purchased electricity and Scope 2 emissions.

Turner is testing all-electric construction equipment in the Gateway Project for the University of California, Berkeley, and the first electric pickup trucks are in use in Alabama. A project in Boston uses emission-free cement produced with renewable energy.

In the Green Energy Initiative adopted Group-wide in 2024, HOCHTIEF is actively promoting the greater use of renewable energy both in its own projects and in solutions for clients. The goal of the initiative is to expand the use of sustainable technologies, such as solar energy, to reduce the company's dependence on fossil fuels to power its operations and infrastructure.

Resources for transition plan

Implementation of the transition plan is an integral responsibility of all corporate units and employees and is firmly embedded in all operating units. It is not possible to state specific resources (in terms of FTEs) as they are integral to cross-cutting activities and cannot be attributed to specific topics. Both at corporate and project level, and within operational units, the activities are frequently interdisciplinary and dynamically allocated. The resulting overlaps in responsibilities and tasks hinder the precise allocation of resources to specific thematic areas. This is necessarily the case in order to ensure the required levels of flexibility and efficiency in processes.

Our business activities do not involve significant capex as our focus is on the execution of construction projects, so substantial investment in long-lasting property, plant and equipment such as production facilities is not required. Instead, we operate as a managing contractor and deploy versatile resources on a project-byproject basis.

Opex is likewise non-significant as it is costed directly on a project basis and goes into quotations for our clients. We also offset opex with efficiency gains from process improvements, precise planning, and targeted resource deployment. This flexible and project-oriented cost structure enables us to remain competitive and provide our clients with cost-effective solutions.

Management of coal, gas, and oil activities

As a global provider of infrastructure solutions, we are in the midst of a major transformation with clients in the mining industry ( $8 \%$ of revenue, or $4.5 \%$ in relation to thermal coal) that benefits the global transition to a more sustainable future.

Accordingly, Thiess has committed to reducing thermal coal revenue to $25 \%$ of total revenue by 2027 and to less than $20 \%$ by the end of $2030 .{ }^{1}$

Metals such as lithium, copper, and nickel are essential for renewable energy and electric mobility technologies. By stepping up our metal mining activities, we are helping to secure the basic resources for these growth technologies. In this way, we are not only advancing the transition to clean energy, but also paving the way for a sustainable mobility transition.

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[^0]: ${ }^{1}$ With our current share of revenue from thermal coal (4.5\%), we are excluded from the EU Paris-aligned Benchmark.

Climate change adaptation

In parallel with our climate change mitigation efforts under our position paper and the related transition plan, climate change adaptation plays a key role at HOCHTIEF. As climate change advances, unavoidable risks and opportunities will manifest themselves across all sectors, including an increase in extreme weather events, major shifts in global supply chains, and growing demand for new technologies. These also affect HOCHTIEF's business activities. To manage the opportunities and risks identified, we have pinpointed the following thematic clusters for HOCHTIEF. Across the board, we see climate change as a vast societal challenge but also as a massive opportunity in financial terms, as our growing-and increasingly sought-after-expertise in various innovative business segments secures us a degree of economic resilience. (E1-O1, E1-O2, E1-O3, E1-R1, E1-R3, E1-R4)

Resilient infrastructure: As climate change continues, extreme weather events such as heavy rainfall and associated flooding, prolonged heat waves, and seasonal changes will increase. These ever increasing, critical changes pose major societal challenges that call for fundamental adaptation to the new parameters across the board. Large temperature swings in particular constitute a stress factor for buildings and infrastructure. They place additional constraints on the durability of new projects over their expected lifetime and call for material that can withstand conditions in a range of climate scenarios. In addition, HOCHTIEF sees opportunities in upgrading existing infrastructure to make it more resistant to climate change.

With our resilient projects, we help to protect clients, local communities, and nature. We achieve this in various ways by taking action such as building flood and erosion defenses as well as designing and using resilient materials that can withstand increasing temperature fluctuations and extreme precipitation. At the same time, HOCHTIEF sees the increased demand for resilient projects as a major business opportunity and we are confident that we can contribute and build on our extensive expertise in this field to the best possible effect. (E1-O3, E1-R3)

Transformative projects: Besides necessitating greater resilience in our projects, climate change drives steady growth in demand for new projects essential to global transformative processes. This notably includes energy, mobility, and digital infrastructure projects. Serving all of these areas, HOCHTIEF has identified huge potential here for the company's long-term business success. (E1-O1, E1-O4, E1-R1)

• The energy transition: The global energy transition calls for a significant expansion of renewable energy generation infrastructure and related projects to store, transmit, and distribute the energy generated. Alongside delivering numerous projects and thereby honing its expertise in this area over the past few decades, HOCHTIEF has enshrined this thematic area in its Green Energy Initiative.
• Renewable energy generation projects: HOCHTIEF delivers projects for the generation of renewable energy and has considerably expanded its project portfolio in recent years, especially with regard to solar farms. Looking ahead, we plan to further expand this market position in close collaboration with our clients - and with it global renewable energy generating capacity.

• Energy transition projects: In addition to constructing renewable energy generation assets, HOCHTIEF is involved in delivering other energy transition projects such as battery energy storage systems (BESSs), battery factories, energy grids, and hydrogen projects. With its activities in the field of resource extraction, HOCHTIEF helps meet the growing demand for metals such as copper and lithium needed for the energy and mobility transition.

• Mobility transition: Besides the general decarbonization of the energy sector, low-emission solutions are required in the mobility sector - such as charging points for electric vehicles or all-electric public transport systems. Alongside alternative forms of propulsion, automating transportation systems holds vast potential for efficiency gains. Here, too, HOCHTIEF can deploy its existing expertise to deliver projects in collaboration with public and private-sector partners. We perceive the growing demand for such solutions as a long-term business opportunity for HOCHTIEF.

• Digitalization: Cross-sectoral process digitalization and the increasing use of artificial intelligence (AI) for bigdata applications is an integral part of successfully adapting to the multifaceted and complex dynamics of global climate change. The steadily growing market for digital infrastructure (such as data centers and semiconductor labs) as well as hardware solutions for AI-based applications opens up numerous opportunities for HOCHTIEF to bolster its position in these areas.
• Deglobalization: Ongoing conflicts, aftereffects of the COVID pandemic, and recent political developments are expected to trigger the growing return of critical industries at national level. Examples include the pharmaceutical, semiconductor, and military sectors. As climate change progresses, this trend is expected to be further exacerbated, thus radically reshaping international supply chains. Disruptive events such as global pandemics, droughts, and general resource scarcities can also drive a return of such industries. This means that, in order to ensure the long-term profitability of our business activities, we need to switch to secure, local sourcing of materials and services. HOCHTIEF thus faces the challenge of adapting its international activities to local conditions in a decentralized fashion, thereby improving the resilience of its own value chains. At the same time, HOCHTIEF sees itself as a partner with extensive expertise in implementing such projects for our clients in the markets we serve. Deglobalization is consequently also a major opportunity for HOCHTIEF.

E1-4

Targets related to climate change mitigation and adaptation ${ }^{1,2,3}$

Climate change adaptation, climate change mitigation, and energy were identified as material topics in the double materiality assessment for 2024. Targets to measure the effectiveness of our actions are presented in the following.

The GHG emission targets were approved by the Executive Board together with the Sustainability Plan 2025 as a fundamental commitment. These greenhouse gas reduction targets based on climate scenarios (see under "Climate scenarios") are science-based and were developed with external experts in line with the 1.5 degree target in the Paris Climate Agreement on the basis of the requirements of the SBTi. However, they have not yet been externally verified. The base year of 2019 was selected due to the COVID pandemic, as our business in that year was not affected by significant external factors. By tracking our emissions in the material Scope 1, 2 and 3 categories described above on a quarterly basis in accordance with the GHG Protocol, we ensure that our targets are consistent with the limits of our greenhouse gas inventory while measuring the effectiveness of our decarbonization levers (actions). Decarbonization requires significant technological advancements, particularly in construction materials as well as machinery and equipment. We are very much dependent on our suppliers in this respect and will be working with them to help drive these advancements forward. Due to the strong interactions and cross-scope effects between the various decarbonization levers, the individual reduction contributions cannot be precisely estimated. The current status with regard to the targets directly reflects the progress of our transition plan.

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[^0]: ${ }^{1}$ All reported targets have been set without environmental thresholds, without being broken out on a company-specific basis and not based on a sector-specific pathway; they have been formu-lat-ed voluntarily (not on the basis of legal requirements). However, they are mandatory under the HOCHTIEF Sustainability Plan 2025.
${ }^{2}$ Targets and geographical boundaries correspond to the Sustainability Plan 2025 (details under "ESRS 2: General disclosure").
${ }^{3}$ Certain ESRS 2 MDR-T disclosure requirements (79 (a), 79 (e), 80 (f), 80 (g), 80 (h), 80 (i), and 80 (j) are met by disclosures in "ESRS 2: General disclosures"

Target²: At least a 20\% reduction in Scope 1 emissions by 2025 relative to the 2019 base year and climate neutrality by 2038

Target-setting methodologies and assumptions:

• HOCHTIEF Sustainability Plan 2025
• HOCHTIEF position paper on climate change mitigation and adaptation
• Group directive on Occupational Safety, Health, Environmental and Climate Protection

The target of least a 20\% reduction in Scope 1 emissions by 2025 relative to the 2019 base year and climate neutrality by 2038 is a key component of HOCHTIEF's decarbonization strategy. Reducing direct (Scope 1) emissions - such as from fuel consumption in conjunction with site vehicles and construction project machinery-is a key factor in achieving the climate targets as direct emissions account for a large share of our total carbon emissions, as they account for a large share of total carbon emissions. We can cut these emissions significantly with targeted action such as deploying low-emission technologies, process improvements, and greater use of alternative forms of propulsion. An annual reduction in emissions of around 3\% was assumed for the interim target by 2025, as this target requires progressive conversion of existing machinery and equipment and the available technological alternatives are currently still limited. Further ahead, a larger reduction of around $6 \%$ per year and climate neutrality for Scope 1 are assumed by 2038, as technological alternatives increasingly become available.

Status and trend analysis: Up to the end of the reporting year, we had already reduced absolute Scope 1 emissions by 159,493 metric tons compared to 2019, our base year, corresponding to a $43 \%$ reduction. Taking into account our increased sales, we have reduced Scope 1 intensity by no less that $52 \%$ compared to 2019. We achieved this significant reduction through extensive project-level and Group-wide initiatives. Action taken to increase the efficiency of machinery, equipment, and processes has led to significant energy savings. We have also cut emissions by phasing in the use of alternative fuels (such as HVO). Switching from fossil fueled to electric (and in some cases hybrid) vehicles and equipment has also reduced emissions. This means we are well on track and we expect to further reduce emissions and achieve our targets in the years ahead.

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[^0]: ${ }^{1} 2024$ excluding portfolio effects from Thless acquisition
${ }^{2}$ Due to the estimation method applied in the reporting year to exclude subcontractor consumption in the Scope 1 and Scope 2 emissions of the CIMIC Group, this understanding was also applied retrospectively to the 2019 base year and adjusted accordingly.

Target²: At least a 35\% reduction in Scope 2 emissions by 2025 relative to the 2019 base year and climate neutrality by 2038

Target-setting methodologies and assumptions:

The target of least a $35 \%$ reduction in Scope 2 emissions (location-based) by 2025 relative to the 2019 base year and climate neutrality by 2038 is a key component of HOCHTIEF's decarbonization strategy. Reducing indirect (Scope 2) emissions-mainly from energy consumption in our office buildings and on construction sites-plays a key role in achieving our climate targets. These emissions are a major factor in our total carbon emissions. We can cut them significantly with targeted action such as switching to renewable energy sources, improving energy efficiency in our projects and at our office sites, and greater use of renewable energy. This helps us to not only reduce our carbon emissions but also to operate sustainably overall and live up to our responsibility with regard to climate change mitigation. An annual reduction in emissions of around $6 \%$ was assumed for the interim target by 2025, which can be achieved in the short term by increasing efficiency as well as by sourcing and using renewable energy. Further ahead, a smaller reduction of around $5 \%$ per year and climate neutrality for Scope 2 are assumed by 2038, as electricity consumption will increase due to the switch from fossil fuels to electric propulsion.

Status and trend analysis:

Up to the end of the reporting year, we had already reduced absolute Scope 2 emissions (location-based) by 30,579 metric tons compared to 2019, our base year, corresponding to a $28 \%$ reduction. Taking into account our increased sales, we have reduced our Scope 2 intensity by no less than $39 \%$ compared to 2019 . We achieved this significant reduction through extensive project-level and Group-wide initiatives, such as the Green Energy Initiative. Action taken to increase the efficiency of machinery, equipment, and processes has led to significant energy savings. Progressively switching from fossil fueled to electric (and in some cases hybrid) vehicles and equipment saves fossil fuel-based energy but increases consumption of electrical energy.

The use of renewable energy is key to further reducing Scope 2 emissions. This can be achieved by purchasing renewable energy and also increasingly by generating renewable energy in projects themselves.

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[^0]: ${ }^{1} 2024$ excluding portfolio effects from Thless acquisition
${ }^{2}$ Due to the estimation method applied in the reporting year to exclude subcontractor consumption in the Scope 1 and Scope 2 emissions of the CIMIC Group, this understanding was also applied retrospectively to the 2019 base year and adjusted accordingly.

Target²: At least a 50\% reduction in combined Scope 1 and 2 emissions by 2030 relative to the 2019 base year and climate neutrality by 2030

Target-setting methodologies and assumptions:

Adopting a combined target for Scope 1 and Scope 2 emissions (location-based) is logical since the two emission categories are closely linked and influence each other. Scope 1 emissions (accounting for around $75 \%$ of combined emissions in the base year) relate directly to fuel consumption for construction vehicles, machinery, and other operational activities while Scope 2 emissions mainly result from energy consumption at our office sites and in our projects. Since both types of emissions are heavily dependent on technology choices-such as machinery that consumes energy and at the same time generates emissions-many measures to cut Scope 1 emissions can also have a positive impact on Scope 2, notably by switching to more energyefficient and lower-emission technologies. We expect Scope 1 and Scope 2 emissions to make a similar contribution to target achievement.

A combined target allows us to follow an integrated approach and harness synergies in reduction activities that relate to both the direct consumption of fossil fuels as well as the energy needed for plant and office operations. HOCHTEF can thus implement its decarbonization strategy more efficiently by optimizing and coordinating technical solutions such as the use of electrically powered machinery and equipment or the switch to renewable energy sources throughout the Group. An integrated target of this kind lends greater impact to the action taken and facilitates achieving superordinate climate targets.

Status and trend analysis: Up to the end of the reporting year, we had already reduced absolute combined Scope 1 and Scope 2 emissions (location-based) by 190,072 metric tons compared to 2019, our base year, corresponding to a $40 \%$ reduction. Taking into account our increased sales, we have reduced our combined Scope 1 and Scope 2 intensity by no less than $49 \%$ compared to 2019. We achieved this significant reduction through extensive project-level and Group-wide initiatives.

[^0]
[^0]: ${ }^{1} 2024$ excluding portfolio effects from Thless acquisition
${ }^{2}$ Due to the estimation method applied in the reporting year to exclude subcontractor consumption in the Scope 1 and Scope 2 emissions of the CIMIC Group, this understanding was also applied retrospectively to the 2019 base year and adjusted accordingly.

Target ${ }^{1}$ : At least a $27.5 \%$ reduction in Scope 3 emissions by 2030 relative to the 2019 base year and climate neutrality by 2045

IROs: Relates to all material impacts, opportunities, and risks in E1	Base year: 2019	Target year: 2045	Milestone target year: 2030	Progress measurement: quarterly, Group-wide, and per operating unit
	Baseline ${ }^{2}$ : $7,083,919 \mathrm{t} \mathrm{CO}_{2} \mathrm{e}$ (100\%)	Target: Climate neutrality (2045)	Milestone target value: Reduction by at least $27.5 \%(2030)$	Geographical boundaries: worldwide
	Unit: relative (\%)		Value chain: upstream $\bigcirc$ own activities	downstream
Relation to sustainability strategy	- HOCHTIEF Sustainability Plan 2025 - HOCHTIEF position paper on climate change mitigation and adaptation - Group directive on Occupational Safety, Health, Environmental and Climate Protection

Target-setting methodologies and assumptions:

The target of least a $27.5 \%$ reduction in Scope 3 emissions by 2030 relative to the 2019 base year and climate neutrality by 2045 is an important component of HOCHTIEF's comprehensive decarbonization strategy. Scope 3 emissions relate to the upstream and downstream value chain and account for a significant proportion of total carbon emissions.

The 2030 milestone includes the following Scope 3 categories that are material for HOCHTIEF: 3.1 Purchased goods and services, 3.2 Capital goods, 3.3 Fuel- and 3.3 Fuel- and energy-related activities, 3.4 Upstream transportation and distribution, 3.5 Waste generated in operations, 3.6 Business travel, 3.7 Employee commuting, 3.11 Use of sold products, and 3.12 End-of-life treatment of sold products. Reducing Scope 3 emissions is even more challenging than reducing Scope 1 and 2 emissions because these depend significantly on other parties such as clients and suppliers. Compared to Scope 1 and Scope 2 emissions, reducing Scope 3 emissions requires even closer collaboration and coordination with clients and business partners along the entire supply chain.

Integrating all significant Scope 3 emissions into the decarbonization strategy was a significant step as they make up a large proportion of total emissions in the upstream and downstream value chain. Reducing Scope 3 emissions creates a win-win situation for ourselves, our clients, and other business partners as we work together to develop more sustainable solutions, reduce costs, and advance their own climate targets, ultimately leading to a stronger market position and more sustainable business practices for all those involved.

Status and trend analysis: Up to the end of the reporting year, we had already reduced absolute Scope 3 emissions by 2,077,434 metric tons compared to 2019, our base year, corresponding to a 29\% reduction. Taking into account our increased sales, we have reduced our Scope 3 intensity by no less than $41 \%$ compared to 2019. We achieved this significant reduction through extensive project-level and Group-wide initiatives. Collaboration with our clients as well as suppliers (decarbonization lever 1) to promote further reductions is particularly important when it comes to reducing Scope 3 emissions.

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[^0]: ${ }^{1} 2024$ excluding portfolio effects from Thless acquisition
${ }^{2}$ Due to the estimation method applied in the reporting year to exclude subcontractor consumption in the Scope 1 and Scope 2 emissions of the CIMIC Group, this understanding was also applied retrospectively to the 2019 base year and adjusted accordingly.

Target: Climate neutrality (net zero) by 2045

Target-setting methodologies and assumptions:

The climate neutrality target (Scopes 1, Scope 2 (location-based), and Scope 3) is particularly important for HOCHTIEF as our activities have a substantial carbon footprint. Emissions in relation to this target were as follows in our base year: Scope 1 around 6\%, Scope 2 around 2\%, and Scope 3 around $92 \%$. This makes it essential to reduce emissions along our entire value chain, from design and construction to operation and maintenance. With this target, we are living up to our corporate responsibility and contributing significantly to the mitigation of climate change.

It also means that we are helping our clients achieve their own emissions targets while honing our competitive edge and commanding the position of a key partner and driver in sustainable construction practices. As a major player in the construction industry, we can make a big difference with regard to reducing carbon emissions-including in terms of GHG emissions from construction materials-with a view to leading the entire sector toward a more climate-friendly future. Through our additional, specific reduction targets for Scopes 1, 2, and 3, we create incentives and transparency across all activities.

Status and trend analysis:

Up to the end of the reporting year, we had already reduced total GHG emissions for Scope 1, Scope 2, and Scope 3 (location-based) by 2,267,507 metric tons compared to 2019, our base year, corresponding to a $30 \%$ reduction. Taking into account our increased sales, we have reduced our total intensity by no less than $41 \%$ compared to 2019. We achieved this significant reduction through extensive project-level and Group-wide initiatives. Reductions have been achieved in Scope 1, Scope 2, and Scope 3. The basis for these reductions is our Net Zero Roadmap, with over 50 decarbonization actions across all three scopes.

Their implementation varies from region to region and depends on client requirements, project requirements, and the market situation in each case. We have specified actions to reduce emissions in Scopes 1 and 2, and also in all material Scope 3 categories, including the upstream and downstream value chain. A particular focus is on measures to reduce embodied carbon (design, construction process, machinery, and materials) and operational carbon (design, operating, and maintenance processes). The Net Zero Roadmap paves the way to achieving HOCHTIEF's climate targets, including the adopted interim targets. Crucial success factors for its implementation include actively offering low-GHG solutions to clients, taking into account the full the project life cycle, and the deployment of innovative and digital methods.

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[^0]: ${ }^{1} 2024$ excluding portfolio effects from Thless acquisition
${ }^{2}$ Due to the estimation method applied in the reporting year to exclude subcontractor consumption in the Scope 1 and Scope 2 emissions of the CIMIC Group, this understanding was also applied retrospectively to the 2019 base year and adjusted accordingly.

E1-5

Energy consumption and mix

In the double materiality assessment and within the context of our business activities, climate change, climate change adaptation, and energy were identified as material matters in 2024. The resulting metrics for the reporting year are shown below.

Energy consumption and energy mix in the HOCHTIEF Group ${ }^{1,2}$

	$\begin{gathered} 2024 \ \text { (Reference: SP } \ 2025 \end{gathered}$	$\mathbf{2 0 2 4}$
Fuel consumption from crude oil and petroleum products (MWh)	745,604	756,772
Fuel consumption from natural gas (MWh)	72,031	72,031
Consumption of purchased or acquired electricity, heat, steam, and cooling from fossil sources (MWh)	150,371	150,371
Total fossil energy consumption (MWh)	968,007	979,175
Share of fossil sources in total energy consumption (\%)	$97 \%$	$96 \%$
Total consumption from nuclear sources (MWh)	20,083	20,083
Share of consumption from nuclear sources in total energy consumption (\%)	$2 \%$	$2 \%$
Fuel consumption for renewable sources (MWh)	8,446	8,446
Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources (MWh)	7,640	9,799
The consumption of self-generated non-fuel renewable energy (MWh)	282	426
Total renewable energy consumption (MWh)	16,368	18,671
Share of renewable sources in total energy consumption (\%)	$1 \%$	$2 \%$
Total energy consumption (MWh)	1,004,458	1,017,929
Energy intensity ${ }^{3}$ per revenue (MWh/EUR million)	33	31
${ }^{1}$ Based on the regulatory requirements for companies in the CIMC Group, subcontractor energy consumption is accounted for under Scope 1 and 2 for projects with operational control. For reasons of consistency, these are reported in GHS accounting for the HOCHTIEF Group under Scope 3 category 15, Investments. An estimation method was therefore used to eliminate subcontractor energy consumption from the CIMC Group's Scope 1 and Scope 2 emissions. ${ }^{2}$ Includes all energy consumption reported in Scope 1 and Scope 2 ${ }^{3} 2024$ excluding portfolio effects from Thess acquisition ${ }^{4}$ Energy intensity is calculated as total energy consumption in relation to sales.

HOCHTIEF Group energy generation

	2024 (Reference: SP 2025)	2024
Energy generation from renewable sources (MWh)	86,925	87,072
Energy generation from non-renewable sources (MWh) ${ }^{3}$	51,847	52,740
${ }^{1} 2024$ excluding portfolio effects from Thess acquisition ${ }^{2}$ The quantities generated from non-renewable sources were used for own consumption. They are therefore included in total fossil energy consumption in the above table on energy consumption and energy mix in the HOCHTIEF Group.

E1-6

Gross Scopes 1, 2, 3 and total GHG emissions

HOCHTIEF Group GHG emissions ${ }^{1,2,3}$

Scope 1 GHG emissions (tCO ${ }_{1}$ eq)	Retrospective			Milestones and targets
	2019	2023	2024	$\%$	2025	2030	2038	2045
Gross Scope 1 GHG emissions			215,100
Percentage of Scope 1 GHG emissions from regulated emission trading schemes (\%)			$-$
Scope 2 GHG emissions (tCO ${ }_{2}$ eq)
Gross location-based Scope 2 GHG emissions			81,390
Gross market-based Scope 2 GHG emissions			57,928
Significant scope 3 GHG emissions (tCO ${ }_{3}$ eq)
Total Gross indirect (Scope 3) GHG emissions			6,713,416
3.1 Purchased goods and services			2,767,472
3.2 Capital goods			113,618
3.3 Fuel and energy-related Activities (not included in Scope 1 or Scope 2)			67,551
3.4 Upstream transportation and distribution			98,120
3.5 Waste generated in operations			17,306
3.6 Business travelng			49,841
3.7 Employee commuting			79,043
3.11 Use of sold products			1,869,582
3.12 End-of-life treatment of sold products			11,808
3.15 Investments			1,639,076
Total GHG emissions (tCO ${ }_{3}$ eq)
Total GHG emissions (location-based)			7,009,907
Total GHG emissions (market-based)			6,986,444
Total GHG emissions per revenue ${ }^{4}$ (tCO ${ }_{2}$ eq/EUR million)
Total GHG emissions (location-based) per revenue			211
Total GHG emissions (market-based) per revenue			210

${ }^{1}$ Based on the regulatory requirements for companies in the CIMIC Group, subcontractor energy consumption is accounted for under Scopes 1 and 2 for projects with operational control. For reasons of consistency, these are reported in GHG accounting for the HOCHTIEF Group under Scope 3 category 15, Investments. An estimation method was therefore used to eliminate subcontractor energy consumption from the CIMIC Group's Scope 1 and Scope 2 emissions.
${ }^{2}$ For the 2024 reporting year, CIMIC Group company Theses is consolidated in the HOCHTIEF Group. The current non-financial Group data therefore has only limited comparability with the prior year and earlier reporting years. Please also refer to the ESRS 2 section.
${ }^{4}$ Biogenic emissions amounted to 14,046 metric tons of CO $_{2}$ in the 2024 reporting year.
${ }^{5}$ The GHG intensities represent the ratio of total GHG emissions to $\underline{\text { solos. }}$

E1-7

GHG removals

The transition plan for climate change mitigation is our net zero roadmap. Over and above this, we see various opportunities in our business to make a further contribution through GHG reduction and removal projects. This is mainly done as a service to our clients and must hence be contractually agreed. Consequently, HOCHTIEF proactively promotes the incorporation of such measures into its projects (decarbonization lever 1):

• Certain construction materials such as concrete can absorb carbon during a project's operation-a process known as carbonation. Depending on their longevity, surface porosity, and environmental exposure, such materials can reabsorb a significant proportion of the carbon emitted during production. Deliberately using concrete and other construction materials to absorb and sequester carbon is one way of removing it from the atmosphere. HOCHTIEF aims to continue exploring options like these together with our suppliers and clients.
• Alongside conventional construction materials, bio-based alternatives (such as timber) are playing an increasing role in the market. During their growth phase, these absorb carbon from the atmosphere and store it organically. This can result in a positive net carbon impact when used as a construction material.
• Many of our projects include extensive recultivation and rehabilitation services. This allows HOCHTIEF to restore ecosystems that remove carbon from the atmosphere and sequester it in organic matter.
• Use of biogenic carbon from biomass or biocarbon as a carbon sink for the production of sustainable concrete and asphalt.

Going beyond these examples, we regard GHG removal as an additional part of our climate change mitigation strategy, which combines innovative materials, sustainable processes, and partnership with our clients and suppliers. GHG removal is an area we expect to become an increasingly important requirement for clients. HOCHTIEF actively promotes GHG removal as a service in order to reduce its own impact and achieve climate targets together with its clients.

E1-8

Internal carbon pricing

A key element of successful decarbonization in the construction industry is the creation of targeted incentive systems. These foster innovation and strengthen the focus on sustainable solutions throughout a project's life cycle. An effective tool in this context is an internal carbon price that our clients take into account when awarding contracts. This is expedient as it guides decision making toward low-carbon construction practices and materials while promoting responsibility for climate change mitigation along the value chain.

We do not yet have internal carbon pricing. We took preliminary steps toward developing such a carbon price in the reporting year. We have developed an initial approach that has not yet been implemented but is currently being tested and analyzed. The aim is to create an effective system in the future that helps cut carbon emissions across all project phases while remaining cost-effective. Our experience in pilot projects to date shows that incorporating an internal carbon price into the subcontracting award process is a useful approach. Initial successes with taking subcontractors' carbon footprint into account in a pilot project encourage us to take this approach further. It creates incentives for our subcontractors to develop and implement innovative and lowemission solutions.

A well-designed incentive scheme such as internal carbon pricing has the potential to help the entire construction industry on the road to carbon neutrality. If we can make carbon emissions visible in the future and take them into account as early as the project award phase, we can raise awareness of taking a life-cycle approach to structures and promote forward-looking technologies and materials. We would like to refine such approaches together with clients, business partners, and the sector as a whole as well as to actively contribute to decarbonizing the construction industry.

Notes on ESRS E1 metrics: Methodology and data sources

Transparent and verifiable data collection is critical to making informed judgments about the development of our strategy, actions, and targets in relation to our material impacts. The methodology, underlying assumptions, and data sources used to arrive at the metrics disclosed in this section are thus explained in the following.

Throughout the Group, standardized processes and data collection methods are applied in order to ensure high standards of data quality, consistency, and comparability. Information on the quality assurance of the metrics is provided in the ESRS 2: General disclosures section under "Data completeness, reliability, and quality." The operating companies apply the Group-wide data collection hierarchy, which prioritizes primary data.

Metrics in the ESRS E1Climate change section	Significant assumptions, calculation methodologies, and limitations
Scope 1 GHG emissions	Scope 1 emissions are calculated by recording and consolidating all material fuel consumption figures (diesel/biodiesel, gasoline/biogasoline, LPG, LNG, and natural gas) under the operational control of HOCHTIEF and its consolidated companies and obtaining the GHG emissions by applying emission factors from centrally provided official databases (Defra).
Scope 2 GHG emissions (location-based)	Location-based Scope 2 emissions are calculated by recording and consolidating all consumption of purchased energy (electricity, district heat, and district cooling) under the operational control of HOCHTIEF and its consolidated companies and obtaining the GHG emissions by applying emission factors from centrally provided official databases (IEA).
Scope 2 GHG emissions (market-based)	Market-based Scope 2 emissions are calculated by recording and consolidating, at Group level, all consumption of purchased energy (electricity, district heat, and district cooling) under the operational control of HOCHTIEF and its consolidated companies. The emissions are calculated using the hierarchy of available emission factors. This consists of the following relevance levels, from top to bottom: 1. Market-/supplier-specific: HOCHTIEF Group consolidated companies can enter market-/supplier-specific emission factors into the central database. These are then used to calculate market-based Scope 2 emissions. Where companies do not have any market-/supplier-specific emission factors, level 2 residual mix emission factors (Residual Mixes AIB) are used. These are likewise contained in the central database. Failing level 1 and level 2, location-based calculation is used as level 3. Data on green electricity is collected and included separately.

Metrics in the ESRS E1Climate change section	Significant assumptions, calculation methodologies, and limitations
Scope 3 GHG emissions	The Scope 3 GHG emissions are calculated for categories that are material for HOCHTIEF: 3.1 Purchased goods and services, 3.2 Capital goods, 3.3 Fuel- and 3.3 Fuel- and energyrelated activities, 3.4 Upstream transportation and distribution, 3.5 Waste generated in operations, 3.6 Business travel, 3.7 Employee commuting, 3.11 Use of sold products, and 3.12 End-of-life treatment of sold products. For the target of climate neutrality by 2045, we also include category 3.15 Investments. Categories 3.8, 3.9, 3.10, 3.13 and 3.14 were included in the GHG emissions inventory but not in the calculations as a materiality assessment showed them to be not relevant to our business activities.
Scope 3 GHG emissions3.1 Purchased goods and services	We aim to maintain and continuously improve data in terms of completeness, reliability, and hence also quality. To this end, we intend, for instance, to further improve measuring accuracy and make increasing use of project-based consumption data collection. We follow a defined quality hierarchy for data collection processes. Primary data: The preferred data source, and thus the data collection basis with the highest priority in the HOCHTIEF Group, is direct measurement (where applicable on site/on project), meaning first-hand data. Examples include IoT-enabled meters to record, for instance, concrete consumption in projects. Secondary data: Calculations based on existing information or databases, such as invoicing volumes or industry-specific standards and statistics. This is the second level, prioritized where primary data is unavailable. Estimated data: Calculations using industry-specific or science-based estimation methods. These can include extrapolations based on industryspecific empirical values or estimates using science-based methodologies. Estimates are used when neither primary nor secondary data is available. It is not yet possible to quantify the data collection processes just referred to; the process is explained for each category in the following.
Scope 3 GHG emissions3.2 Capital goods	This category consists of emissions from construction materials and subcontractor services. Quantities of construction materials used (asphalt, concrete, glass, wood, steel, cement, aggregates) are recorded and consolidated in a central database and the GHG emissions obtained by applying centrally provided emission factors (Defra and an internal HOCHTIEF emission factors database). For even greater detail in tracking GHG emissions for concrete and steel-which are particularly important to the construction industry-product-specific emission factors can be entered into the central database for use in the Scope 3.1 calculations in place of the global emission factor. Emissions from subcontractor works and services are assumed to equal the Scope 1 and Scope 2 emissions.
Scope 3 GHG emissions3.3 Fuel and energy-related activities	The 3 GHG emissions3.4 Upstream transportation and distribution
Scope 3 GHG emissions3.4 Upstream transportation and distribution

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[^0]: Emissions from the transportation of goods purchased in the reporting year are calculated on the basis of the centrally recorded material quantities (asphalt, concrete, glass, wood, steel, cement, aggregates). The resulting emissions from transportation (Defra) to construction sites were calculated at Group level for each construction material (estimated by procurement departments and operational units) on the basis of average transportation distances and means of transportation.

Metrics in the ESRS E1Climate change section	Significant assumptions, calculation methodologies, and limitations
Scope 3 GHG emissions3.5 Waste generated in operations	Emissions from the disposal of non-hazardous and hazardous waste are calculated based on the amount of waste and a centrally provided emission factor (from an internal HOCHTIEF emission factors database).
Scope 3 GHG emissions3.6 Business travel	This category comprises emissions from business travel in the reporting year. These are subdivided into three main types of travel (air, rental vehicle, and rail). The emissions are calculated by recording kilometers traveled in a central database and multiplying by emission factors (Defra). For greater precision, a distinction is also made between short-, medium- and long-haul flights.
Scope 3 GHG emissions3.7 Employee commuting	This category contains emissions from workforce commuting. Employee commuting emissions are recorded for each region. The emissions are estimated from regional commuting patterns and average commuting distances (from destatis, for example). The effect of mobile working is likewise taken into account (by estimating the number of home working days). Headcounts are recorded centrally.
Scope 3 GHG emissions3.11 Use of sold products	This category consists of emissions generated by end-users in the operation phase of our completed buildings. The emissions are calculated from annual sales in construction to determine the total building area constructed in the reporting year. Energy consumption per square meter is used to calculate the amount of energy required for a 60-year building lifetime. Multiplying this amount of energy by the continuously diminishing grid emission factor gives emissions in the operation phase. These are reported for the reporting year.
Scope 3 GHG emissions3.12 End-of-life treatment of sold products	This category covers emissions from the future end-of-life treatment of our built projects. Since all components of the buildings we construct must eventually be returned to the materials cycle, all material we use during the year is subjected to emission factors (Defra) that include the material-specific dismantling processes. It is assumed that the proportion recycled/reused will increase at the expense of landfilling.
Scope 3 GHG emissions3.15 Investments	This category includes emissions from HOCHTIE's capital expenditure. It includes the investment in toll road operator Abertis (Scope 1, 2, and 3 pro rata). This category also includes all activities of companies without operational control.
Greenhouse gas intensity	Greenhouse gas intensity is calculated as the ratio of greenhouse gas emissions to sales.
Biogenic emissions	This category contains emissions from the consumption of alternative fuels. Biogenic emissions are reported separately as they are obtained from regenerative resources and their emissions are considered part of the natural carbon cycle.
Total energy consumption	Total energy consumption comprises the sum of fossil, nuclear, and renewable energy sources. The metric is consolidated and reported at Group level.
Energy consumption from fossil sources	Energy consumption from fossil sources is reported, on a consolidated basis, based on the consumption of indirect energy (electricity and district heating) and direct energy (fuels). Direct energy consumption is made up of consumption of fossil fuels (diesel, gasoline, LPG, LNG, and natural gas) and the proportion of fossil energy in alternative and renewable fuels (biodiesel and biogasoline with their respective percentage fossil content). The data is recorded in kilowatt hours (kWh) and liters (l) and consolidated in megawatt hours (MWh). Indirect energy consumption is made up of the consumption of electricity and district heating from largely fossil sources. The data is largely collected by the operational units on the basis of primary data and then reported on a consolidated basis.

Metrics in the ESRS E1Climate change section	Significant assumptions, calculation methodologies, and limitations
Energy consumption from nuclear sources	Energy consumption from nuclear sources (indirect energy consumption) is largely based on estimates. The total energy consumption recorded by the operational units is assigned a standardized proportion (source: EMBER Energy, 2023) of nuclear energy at Group level. Data is then reported on a consolidated basis.
Energy consumption from renewable sources	Energy consumption from renewable sources is reported, on a consolidated basis, based on the consumption of indirect energy (electricity and district heating) and direct energy (fuels). Direct energy consumption is made up of consumption of renewable fuels and the proportion of renewable energy in alternative and renewable fuels (biodiesel and biogasoline with their respective percentage biological content).
Energy generation from non-renewable sources	Indirect energy consumption from renewable sources is made up of the consumption of electricity and district heating from renewable sources. The data is largely collected by the operational units on the basis of primary data and then reported on a consolidated basis.
Energy generation from renewable sources	Energy generation from non-renewable sources is estimated on the basis of the fuel consumption (diesel and gasoline) recorded by the operational units. Based on experience in our projects, it is assumed that $8 \%$ of the diesel consumed and $4 \%$ of the gasoline consumed is used for energy generation. The total amount of energy generated is then reported on a consolidated basis.
Energy generation from renewable sources	Energy generation from renewable sources is determined on the basis of the energy quantities recorded reported by operational units. The quantities are largely based on primary data but may also be estimated on the basis of installed capacity.
Energy intensity	Energy intensity is calculated as the ratio of the quantity of energy to sales.

Based on the regulatory requirements for companies in the CIMIC Group, subcontractor energy consumption is accounted for under Scopes 1 and 2 for projects with operational control. For reasons of consistency, these are reported in GHG accounting for the HOCHTIEF Group under Scope 3 category 15, Investments. An estimation method was therefore used to eliminate subcontractor energy consumption from the CIMIC Group's Scope 1 and Scope 2 emissions.

ESRS E2

Pollution

Preventing, limiting, and minimizing pollution

The construction industry creates essential infrastructure and can contribute decisively with these projects to societal transformation processes. It is not possible to completely eliminate environmental impacts in the construction industry. Yet innovative approaches and sustainable measures can reduce them to a minimum. As a link in the value chain, HOCHTIEF plays a major role in the context of preventing, limiting, and minimizing pollution. Not only are we building the world of tomorrow, but we also set key standards in environmental protection with our core sustainability focuses of collaboration, digitalization, and innovation as well as with our projects and processes. For HOCHTIEF as a global operator, preventing pollution is not just a major responsibility but also a core element of our activities. We recognize that while our activities hold great potential for sustainable solutions, they additionally pose challenges in terms of possible environmental impacts. In particular, the unintentional release of pollutants-whether through construction processes or the operation of machinery-can pose environmental and health risks. That is why it is essential for environmental protection to be systematically enshrined in our processes.

Our reporting in 2024 places the tracking of pollution on a systematic footing as a new topic. This reaffirms our ongoing commitment to transparency as well as to preventing, limiting, and minimizing pollution. In this section, we describe potential sources of pollution in our business activities, set out our risk mitigation measures, and document their progress. This systematic approach will enable us to minimize environmental risks even more effectively in the future, unlock new potential, and efficiently mitigate the potential negative environmental and social impact of our business activities.

The elements relating to pollution have close thematic links to content on other environmental and social topics in this report. These correlations are presented in this section because actions and policies to mitigate pollution and avoid environmental incidents cannot be viewed in isolation but only as part of a coherent strategy. In this way, we demonstrate how interrelated topics such as climate change mitigation (described in the Climate change section) and occupational safety, health, and environmental protection (described in the Own workforce and Workers in the value chain sections) are systematically coordinated. This approach provides comprehensive, 360-degree visibility regarding the status quo of our initiatives for identifying, preventing, limiting, and minimizing pollution.

Material impacts

The material impacts were identified in the materiality assessment for 2024 conducted by HOCHTIEF in accordance with the double materiality principle. HOCHTIEF's assets and business activities along the entire value chain were assessed for actual and potential impacts, risks, and opportunities. This process is described in detail in the ESRS 2 General Disclosures section.

Positive impacts (PI)	Negative impacts (NI)
Pollution of air
E2-PI1 Selectively applying efficient construction methods, machinery, and vehicles, substituting fossil fuels with more environmentally friendly, alternative fuels as well as electrifying machinery and vehicles lets HOCHTIEF take specific measures to significantly reduce air pollution. (actual; own activities)	E2-NI1 HOCHTIEF and its value chain cause air pollution: Upstream production and our own use of machinery, vehicles, and construction materials, emissions of air pollutants from fuel combustion as well as particulate matter generated by our activities have a negative impact on human health and the environment. (actual; entire value chain)
Pollution of soil
	E5-NI2 In the course of our business activities, unintentional soil pollution might occur as a result of environmental incidents that have a negative impact on the environment. (actual; own activities)

E2-1

Policies related to pollution

Efficient and environmentally friendly processes, a high degree of environmental awareness, prevention of environmental incidents, and strong environmental, health, and safety management are key priorities. We aim to minimize the environmental impact of our business activities and value chain while ensuring a safe working environment. We measure the progress of all of our initiatives against our targets defined in the HOCHTIEF Sustainability Plan 2025. Air pollution (other than GHG emissions) was not yet identified as a material topic when the HOCHTIEF Sustainability Plan 2025 was compiled. It has been defined as an additional material topic in the reporting year. We will consider this topic accordingly as we proceed with the development of our Sustainability Plan 2030.

Milestones in the pollution prevention strategy

Sharpening our focus on preventing pollution as a part of our sustainability strategy, also with a view to the double materiality assessment, we prepared and rolled out a position paper on pollution prevention, control, and minimiza-tion throughout the Group in 2024. The objective is to take targeted action to prevent, mitigate, and min-imize pollution. Our main focus here is on air and soil pollution, which are material topics for us. This also serves as a means of effectively preventing environmental incidents and, should they occur, of minimizing and limiting the impact on people and the environment.

The position paper is designed to improve activities and processes along our entire value chain. It serves as a guideline for taking suitable action in our business activities and, in collaboration with our business partners and suppliers, helps to advance positive environmental impacts along the entire value chain and to promote sustainable development. Our established environmental management systems are a core component of this, enabling us to effectively prevent the risk of pollution and environmental inci-dents.

In the position paper, we enshrine six central action areas in a Group-wide strategy with corresponding environmental protection-related action for implementation by the operational units (for further information, please refer to the chart headed "Action areas in the HOCHTIEF position paper on pollution"). Accordingly, the position paper relates to our entire business activities, addresses current and acute pollution from various sources (in particular, $\mathrm{NO}{\mathrm{x}}, \mathrm{SO}{\mathrm{x}}$, and $\mathrm{PM}_{10}$ air pollutant emissions as well as BTEX aromatics soil pollutants), and targets process optimization throughout our value chain.

Action areas in the HOCHTIEF position paper on pollution

Responsibility for operational implementation of the position paper lies with each operational unit, supported by our international working groups - primarily "Machinery and Equipment." It highlights, for example, the importance of collaboration with our suppliers and business partners in order for environmentally friendly practices to be implemented at every link in the value chain. The position paper was drawn up in close collaboration with our operational units. Progress in implementing the position paper is tracked within our in-house monitoring, reporting, and control processes. The data collected is incorporated into our annual sustainability reporting, thus enabling transparent communication to our material stakeholders.

Action areas in the position paper on pollution prevention, control, and mitigation

The action areas in the position paper on pollution prevention, control, and mitigation are described in greater detail below. They address all positive and negative impacts identified in the double materiality assessment for E2.

In addition to our position paper, pollution is in part addressed in the Group directive on Occupational Safety, Health, Environmental and Climate Protection. This serves as an overarching framework which, aside from the prevention of pollution, notably deals with social aspects such as employee health and safety in connection with environmental protection and occupational safety. The directive is described in greater detail in the sections Own workforce and Workers in the value chain.

Environmental awareness and training: Wide-ranging environment-friendly practices are enshrined in our business activities. For instance, such practices are established from the outset through employee training as part of our operations. Various continuing education measures for our employees-and frequently also our business partners-dovetail with our environmental, health, and occupational safety management activities. We aim to ensure that environmental awareness is fostered along our entire value chain and that potential sources of pollution are minimized.

Relation to impacts: Pollution and in particular environmental incidents can be prevented and limited if awareness of effective action is raised at an early stage among those involved and non-conformities and incidents can be addressed in the correct manner in order to make corresponding improvements. Instruction, training, and campaigns enable our people, through attention to detail and know-how, to reinforce the positive and mitigate the negative impacts identified. Through proactive risk management and control, we work to achieve our current and future goals and ensure a rapid response to any non-conformities and potential environmental incidents. Training on risk analyses and emergency plans, which are established as standard at operational level as part of preventive measures in our projects, are a key component of this action area.

Effective communication: We work closely with our stakeholders to prevent, limit, and minimize environmental impacts throughout our value chain. Open and transparent communication on environmental protection plays a central role here, promoting shared environmental awareness, supporting environment-friendly activities in our own operations, and encouraging sustainable action along the entire value chain.

Relation to impacts: Open and transparent communication not only raises awareness of current challenges but also paves the way for collaborative solutions. Working to raise environmental awareness in the overall context makes it possible to leverage potential for improvement and implement pollution prevention measures.

Operational efficiency: Measures to maximize the operational efficiency of our business activities are a key part of our strategy. We work continuously to achieve this by enhancing sustainable construction processes as well as by utilizing sustainable building materials and state-of-the-art machinery. To this end, HOCHTIEF has established numerous initiatives and best practices in the position paper (and also in the HOCHTIEF position paper on climate change mitigation and adaptation). These are geared to driving the effective implementation of targeted action.

Relation to impacts: Initiatives to optimize operational processes enable the selective use of low-emission practices and resource-efficient construction methods to reduce the environmental impact of our activities. At the same time, they help to minimize the likelihood of unforeseen environmental incidents. They similarly hold potential for increasing the profitability of our activities.

Innovation and best available technology (BAT): Further optimization of our business activities with regard to environmentally friendly operations necessitates improvements to existing processes and the implementation of innovative methods. These areas are addressed and focused upon in corresponding initiatives outlined in the position paper.

Relation to impacts: The best available technology (BAT) action area is closely linked to-and aimed at address-ing-the pollution impacts identified. Implementing BAT not only incorporates innovative operational practices into our business activities but also sets in motion a sustainable innovation process to help prevent and limit pollution in the long term, thus further mitigating the environmental and health risks of our activities.

Sustainable alternatives: Proactively deploying sustainable, environmentally friendly alternatives for construction methods, building materials, vehicles, and machinery as well as using alternative fuels advances the long-term transition to environmentally friendly operational activities.

Relation to impacts: By carrying out targeted initiatives to identify, promote, and implement sustainable alternatives, HOCHTIEF is spearheading the transition to more environmentally friendly operational activities that mitigate negative and promote positive impacts.

Environmental management: The environmental management action area provides a structured framework for addressing in a targeted manner the pollution impacts identified. Complementing the application of our established environmental management systems under ISO 14001, this action area relates to the implementation of action to minimize environmental risks.

Relation to impacts: By enhancing environmental management systems, we ensure that environmental risks are identified early on and systematically addressed. This action area promotes continuous improvement by way of action in accordance with ISO 14001 advancing the use of both environmentally friendly technologies and risk mitigation in operational processes. A deeply embedded environmental management system thus paves the way for mitigating the negative impacts on people and the environment.

E2-2

Policies related to pollution

Our negative impacts in terms of air pollution mainly relate to air pollutants from the combustion of fossil fuels in construction machinery, generators, and vehicles. These include GHGs, non-THGs, and particulates. The actions and targets set out in sections Climate change and Resource use and circular economy also indirectly lead to a reduction in the significant pollutants described there. This is why we address project-specific efforts to avoid or reduce air pollution from fuel combustion (impacts PI1 and NI1) with the actions set out in the Climate change and Resource use and circular economy sections. The actions described in these sections are additionally directed at further reducing or preventing air and soil pollution (impact NI2) in order to provide a consistent and integrated view of the relevant subject matter.

We attach importance to measuring and managing our progress in operational pollution prevention and control, including with regard to air pollution. As the topic of air pollution has been covered separately for the first time in the reporting year, HOCHTIEF has not yet set any specific targets for its prevention (impacts NI1 and PI1). Targets related to soil pollution (impact NI2) are described in the following. We will review, track, and accordingly continue to develop the effectiveness of our actions and the position paper in connection with the material impacts related to air pollution. To this end, we report air pollution metrics for the first time in the reporting year. These serve as quantitative indicators that will enable us to systematically assess and address our progress in combating air pollution in the future.

Actions

In addition to the overarching actions set out below, which apply to all of our business activities and geographic operating regions, many projects have specific operational initiatives and measures that are already established and in some cases also part of, and may be a requirement for, obtaining official permits for our activities. Such approaches are geared to local circumstances (such as location, local regulations, project type, client needs, contractually agreed deliverables, and material requirements) and play a key role in HOCHTIEF's commitment to environmental protection. In most cases, the (building) permit for a project is obtained by the client in advance. Combined with the requisite official environmental impact assessments and other obligations for clients, this can result in extensive requirements to be compiled with for the execution of a project. Overall, this matter also contributes to a significant reduction in the potential negative impact of our own operations.

Together with the respective national environmental standards, these project-specific requirements form the contractual basis for executing our projects. In some cases, clients also specify additional measures and requirements. That is why we aim early on in a project to proactively propose and encourage implementing sustainable solutions in order to effectively prevent, limit, and minimize pollution.

Action: Reducing fuel consumption and related air pollutant emissions by using efficient, cutting-edge, low- or zero-emission machinery, vehicles, and construction methods

IROs: E2-PI1	Time horizon for implementation: Short-, medium-, and long-term	Value chain: upstream oen activities downstream
Relation to sustainability strategy	- HOCHTIEF Sustainability Plan 2025 - HOCHTIEF position paper on pollution, action areas 1 to 5 - Group directive on Occupational Safety, Health, Environmental and Climate Protection

Description of actions
HOCHTIEF provides a wide range of sustainable solutions to systematically reduce fossil fuel consumption and the associated air pollutant emissions at operational level. One key approach is the deployment of efficient, state-of-the-art vehicles and machinery with low fuel consumption and modern powertrains that are increasingly in widespread use in our projects. These notably include automated as well as electric powertrains and machinery. Using digital planning tools such as Building Information Modeling (BIM), we optimize construction processes and avoid unnecessary machinery use. Furthermore-particularly at the project design stage-we offer innovative construction methods such as the use of prefabricated components for more efficient assembly and reduction of fuel consumption. In parallel, we partner with our stakeholders - primarily manufacturers and suppliers-to incorporate long-lasting, lower-emission machines and materials into our own activities and hence the value chain. These actions underscore our commitment not only to reducing our ecological footprint but also to providing economical, sustainable solutions for our clients.

Examples:

• Use of state-of-the-art machinery with lower energy consumption
• Switching to electrically powered vehicles and equipment
• Streamlining construction processes, such as through efficient route planning for deliveries
• Use of low-emission technologies and long-lasting sustainable building materials

The actions described contribute significantly to implementing the initiatives under the position paper on pollution prevention, control, and minimization by aiming to reduce emissions, use resources efficiently, and minimize the construction industry's ecological footprint through innovative technologies.

Action: Use of electricity from renewable energy sources in order to reduce and avoid pollution from the combustion of fossil fuels

IROs: Relates to all material impacts, opportunities, and risks in E2	Time horizon for implementation: Short-, medium-, and long-term	Value chain: upstream oen activities downstream
Relation to sustainability strategy:	- HOCHTIEF Sustainability Plan 2025 - HOCHTIEF position paper on pollution, action areas 1 to 6 - Group directive on Occupational Safety, Health, Environmental and Climate Protection

Description of actions
HOCHTIEF aims to use more green power in order to mitigate and minimize the environmental impact of our business activities in addition to reducing greenhouse gas emissions. At an operational level, this means purchasing renewable power or using it to reduce the need for fossil fuels for purposes such as generating electricity and heating. These actions help to significantly reduce material air pollutants from conventional fossil fuel-based energy generation. Moreover, we promote the development of renewable energy sources downstream, thereby supporting the energy transition. In this way, HOCHTIEF underscores its commitment to reducing environmental impacts across the board and promoting sustainable solutions throughout its Group-wide business activities and value chain.

The actions described contribute significantly to implementing the initiatives under the HOCHTIEF position paper on pollution, as they are geared to reducing and substituting fossil fuel use and thus significantly reducing related pollutant emissions and potential risks of machinery leaks.

Action: Risk analysis and preventive maintenance to avoid environmental incidents

IROs: E2-PI1, E2-NI2	Time horizon for implementation: Short-, medium-, and long-term	Value chain: upstream own activities downstream
Relation to sustainability strategy	- HOCHTIEF Sustainability Plan 2025 - HOCHTIEF position paper on pollution, action areas 1, 3, and 6 (environmental management) - Group directive on Occupational Safety, Health, Environmental and Climate Protection

Description of actions
HOCHTIEF targets actions to actively prevent incidents of soil pollution-mainly diesel and oil-from machinery leaks and/or spills and thus to protect both our own workers and workers in downstream activities. The focus here is on project-specific risk analysis as well as regular maintenance and inspection programs for machinery, equipment, and vehicles with future suppliers and subcontractors. This opens the way to preventing potential defects and the risk of environmental incidents. In addition, projectspecific operating instructions define and ensure the responsible handling of potentially harmful substances, thus preventing potential environmental pollution.

The actions described contribute significantly to implementing the initiatives under the HOCHTIEF position paper on pollution by adopting a preventive approach to substantially reducing the risk of pollutant emissions and environmental incidents.

Actions implemented in the reporting year

Project

Coronation Park Sports and Recreation Centre, Edmonton, Canada, Clark Builders

Outcomes

For the Coronation Park Sports and Recreation Centre in Edmonton, Canada, comprehensive risk analyses and preventive maintenance measures are deployed to minimize the environmental impact of construction activities. Under an Erosion and Sedimentation Control Plan (ESCP), regular inspections are carried out-particularly after heavy rainfall or melting snow-to identify potential hazard areas at an early stage. Polluting activities such as concrete work or machine refueling are also followed up immediately after completion and in weekly ESC inspections. This preventive monitoring makes it possible to take appropriate action in good time, such as cleaning sediment traps or repairing damaged silt fences. By means of this structured approach, Clark Builders ensures that construction progresses with minimal impact on the environment.

Incorporating sustainability criteria on environmental protection into tender and award processes

Description of actions

HOCHTIEF specifically incorporates sustainability criteria on environmental protection into tender and award processes. In supplier and subcontractor selection, we attach utmost importance to environmentally friendly materials, resource-efficient production processes, and the use of low-emission technologies.

The actions described contribute significantly to implementing the initiatives under the HOCHTIEF position paper on pollution by aiming to provide sustainable material, machinery, and equipment for operational implementation. We additionally provide market incentives to bring sustainable solutions to market and expand the range of sustainable solutions on offer.

Application of digital solutions for process efficiency

IROs: E2-PI1, E2-NI1	Time horizon for implementation: Short-, medium-, and long-term	Value chain: upstream own activities downstream
Relation to sustainability strategy	- HOCHTIEF Sustainability Plan 2025 - HOCHTIEF position paper on pollution, action areas 3, 4, and 6 - Group directive on Occupational Safety, Health, Environmental and Climate Protection

Description of actions

To optimize construction project design and execution-and thus minimize energy consumption and associated air pollutant emissions-we offer our customers innovative technologies such as digital twins and life cycle assessment (LCA, for further information, please refer to the Resource use and circular economy section). Digitally tracking energy consumption and environmental impacts makes it possible to not only simulate a project's entire life cycle but also to flag in advance any potential inefficiencies at the various project stages and make corresponding improvements. This opens the way for precise, resourceefficient design, optimizing material and machinery use as well as reducing energy consumption. It also minimizes the risk of unforeseen environmental incidents. In this way, HOCHTIEF enhances the efficiency and sustainability of its business activities and prioritizes innovative solutions.

The actions described contribute significantly to implementing the initiatives under the HOCHTIEF position paper on pollution by aiming to further enshrine efficient digital processes in our business activities.

Action: Promoting environmental protection through training programs and expert exchange

IROs: Relates to all material impacts, opportunities, and risks in E2	Time horizon for implementation: Short-, medium-, and long-term	Value chain: upstream own activities downstream
Relation to sustainability strategy	- HOCHTIEF Sustainability Plan 2025 - HOCHTIEF position paper on pollution, action areas 1, 2, and 6 - Group directive on Occupational Safety, Health, Environmental and Climate Protection

Description of actions
HOCHTIEF harnesses extensive training and instruction programs on general and operational environmental protection to raise awareness of environmental issues among HOCHTIEF employees and hence business partners along the value chain. Training for HOCHTIEF employees covers legal requirements as well as environmental targets such as those under our Group-wide sustainability plan in order to incorporate sustainable action into processes throughout the Group. In addition, we arrange exchanges among experts and provide continuing education in order to keep employees abreast of innovative new technologies, requirements, and best practices in environmental protection. Moreover, by means of professional exchanges with Group experts, our international working groups transfer targeted know-how and best practices, thus enabling environmentally friendly practices to be implemented in operations and contributing to the focused prevention, limitation, and minimization of pollution.

Actions implemented in the reporting year

Project

27-minute ESG drive, HOCHTIEF

Outcomes

The 27-minute ESG drive training series places a major emphasis on environmental protection and sustainability within the company. In this compact format, representa-tives of various units report for 15 minutes each on specific projects, activities, and actions thematically related to the environment - the "E" of ESG. The aim is to raise awareness of sustainability issues and provide participants with valuable ideas for rep-lication in their own projects.

Sharing knowledge and experience between units not only allows existing best practice to be shared, but also furthers the development of new ideas and innovative approach-es to environmental protection. This direct sharing of ideas promotes collaboration and augments the in-house pool of expertise. At the same time, participants are given the opportunity to leverage available know-how for their own projects and clients.

Action; Use of environmental management standards and environmental management systems

IROs: E2-NI2	Time horizon for implementation: Short-, medium-, and long-term	Value chain: upstream own activities downstream
Relation to sustainability strategy:	- HOCHTIEF Sustainability Plan 2025 - HOCHTIEF position paper on pollution, action areas 1, 2, and 6 - Group directive on Occupational Safety, Health, Environmental and Climate Protection

Description of actions
It is our ambition to continuously raise environmental awareness, both operationally and in collaboration with our business partners, in order to firmly enshrine environmental protection throughout the value chain. Additionally, at the operational level, HOCHTIEF has established environmental management and environmental risk management systems that-in line with ISO 14001 certification-aim to ensure that activities meet high environmental standards and relevant legal requirements. These systems include regular audits, monitoring of environmental performance indicators, and continuous improvement of processes to minimize pollution-related risks. HOCHTIEF employees are also trained in accordance with ISO 14001 and, where applicable, other environmental management standards. In addition, a Group crisis hotline is available so that severe environmental incidents can be reported to the Group without delay for immediate action.

Actions implemented in the reporting year

Project

Red Deer Regional Hospital Centre, Alberta, Canada, Clark Builders

Outcomes

The project includes the construction of a new hospital wing with 200 additional beds and key medical facilities such as operating theaters. It includes the construction of a new power plant and the renovation of various parts of the hospital. Environmental management systems have been deployed in construction to minimize the environmental impacts. The implementation of an ECO Plan helps in managing environmental risks, ensuring compliance and promoting sustainable practices throughout the project, particularly in terms of its proximity to sensitive water bodies, varying groundwater levels, and potential disturbances to vegetation or archaeological resources.

E2-3

Targets related to pollution ${ }^{1,2,}$

Targets: HOCHTIEF has set itself the target of preventing environmental incidents with severe environmental damage

IROs: E2-NI3 (pollution of soil)	Base year: n/a-annual progress measurement	Target year: annually	Progress measurement: quarterly, Group-wide, and per operating unit
	Baseline: n/a	Target: 0	Geographical boundaries: worldwide
	Unit: absolute, total figure	Value chain: upstream own activities	$>$ downstream
Relation to sustainability strategy, including to the policy	- HOCHTIEF Sustainability Plan 2025 - HOCHTIEF position paper on pollution, action areas 1 and 6 - Group directive on Occupational Safety, Health, Environmental and Climate Protection

Target-setting methodologies and assumptions:

Despite comprehensive risk management and the care taken by our teams, incidents involving environmental damage cannot be completely ruled out. HOCHTIEF classifies environmental damage into two main categories. The classification of these categories is explained in greater detail at the end of this section.

Our fundamental goal is to systematically avoid environmental incidents. Special focus is placed on severe, Category 1 incidents (the categories of environmental incidents are explained at the end of this section), as these harbor especially high environmental risk. Preventing such incidents is hence critical to promoting sustainable building practices and meeting regulatory and societal demands.

To monitor and control this target, all environmental incidents are recorded by the operational units directly in our reporting system. In addition, our Group crisis hotline ensures that the most critical environmental incidents (Category 1) are reported and dealt with immediately in accordance with our crisis information directive. Reported incidents are analyzed and processed, and action is taken as needed. Reporting near-misses is not yet mandatory, but the number reported is increasing. All reports provide valuable information on high-risk situations and processes, from which any need for action can likewise be identified.

This choice of target underscores the high priority attached to environmental protection at HOCHTIEF and reflects our commitment to responsibly addressing the construction industry's environmental impacts. A conscious focus on preventing severe incidents not only helps ensure compliance with international environmental standards but also protects natural resources and safeguards the company's long-term environmental and economic sustainability.

Status and trend analysis:

As in the previous year, no Category 1 incidents were reported in the HOCHTIEF Group in the reporting year. We have thus achieved our goal and we will continue our efforts in this area to avoid environmental damage as far as possible.

[^0]
[^0]: ${ }^{1}$ All reported targets have been set without environmental thresholds, without being broken out on a company-specific basis, and formulated voluntarily (not on the basis of legal requirements). However, they are mandatory under the HOCHTIEF Sustainability Plan 2025.
${ }^{2}$ Certain ESRB MDR-T disclosure requirements (Tile, Tile, 80f, h, 80) are met by disclosures in "ESRS 2: General disclosures"
${ }^{3} 2024$ excluding portfolio effects from Thesis acquisition

Target': HOCHTIEF has set itself the target of increasing the percentage of total employees covered by environmental management system certification (ISO 14001) to at least $90 \%$ by 2025

Target-setting methodologies and assumptions:

The target of increasing the percentage of total employees covered by environmental management system certification (ISO 14001) to at least $90 \%$ by 2025 is essential to combating pollution-especially air and soil pollution-in the construction industry. ISO 14001 certification ensures that the company's processes are systematically geared toward environmental protection and are subject to continuous improvement. It provides the basis for action to minimize environmental impacts and promote sustainable practices. Significant air pollution from emissions and particulate matter as well as potential soil contamination are frequently an issue for HOCHTIEF. Such a management system is hence an effective tool for reducing this type of negative impact. Employees working within an ISO 14001-certified system receive regular training and contribute to continuously improving environmental performance. They can take targeted action to reduce environmental impacts-for example, by properly disposing of construction waste, using low-emission machinery, and protecting soil and water bodies.

Increasing the proportion of employees working in accordance with a certified environmental management system ensures that environmental protection is effectively integrated not just on a piecemeal basis, but also in all parts of the company and at all sites. This fosters a culture of environmental protection across the board that ensures compliance with legal requirements while also reducing HOCHTIEF's ecological footprint and enhancing the sustainability of the construction industry as a whole.

Status and trend analysis: After the proportion of Group units certified to the DIN EN ISO 14001 environmental management system standard rose to $75.3 \%$ in 2023 (by headcount), Turner also achieved full certification in 2024. This increased our coverage in the reporting year to $97 \%$. We have thus already achieved our target of $90 \%$ coverage in 2024 (one year before the target year).

Target*: HOCHTIEF has set itself the target of increasing awareness and knowledge regarding relevant environmental topics by training at least 50\% of relevant employees by 2025

IROs:	Base year:	Target year:	Progress measurement:
Relates to all material im-	2024	2025	quarterly, Group-wide,
pacts, opportunities and risks			and per operating unit
in E2
	Baseline:	Target:	Geographical
	n/a	At least 50\%	boundaries:
			worldwide
		Value chain:
		$\bigcirc$ upstream $\bigcirc$ own activities $\bigcirc$ downstream
Relation to sustainability strategy	- HOCHTIEF Sustainability Plan 2025
	- HOCHTIEF position paper on pollution, action areas 1, 2, and 6
	- Group directive on Occupational Safety, Health, Environmental and Climate Protection.

Target-setting methodologies and assumptions:

The target of increasing awareness and knowledge regarding environmental topics by training at least $50 \%$ of employees (further information is provided in the explanatory notes at the end of this section) by 2025 is central to HOCHTIEF's efforts to address potential pollution-especially air and soil pollution. From emitting harmful air pollutants, such as particulate matter and nitrogen oxides, to uncontrolled contamination of soil with potentially hazardous substances and waste, the
construction industry contributes significantly to these environmental impacts.
Training enables employees to gain a better understanding of the environmental impact of their work and to take specific action to reduce air and soil pollution. Increasing awareness and knowledge of the subject matter drives a positive cultural change within the company, ensuring that environmental protection is effectively implemented not just in theory but also in practice and across our business relationships.

By training more employees on environmental issues (further information is provided in the explanatory notes at the end of this section), the entire organization is empowered to make greener choices, from selecting materials to minimizing construction site emissions. In this way, HOCHTIEF makes a decisive contribution to protecting the environment and promoting sustainable development along the value chain in the construction industry.

Status and trend analysis: Extensive environmental training was provided in all operational units during the reporting year. Topics and target groups were defined in collaboration with the international training working group and environmental experts from the operational units. Out of 13,986 employees classified as relevant by the operational units (further information is provided in the explanatory notes at the end of this section), 9,748 were provided with environmental training, corresponding to a $70 \%$ training rate and thus exceeding the $50 \%$ target.

E2-4

Pollution

In the double materiality assessment and our business activities, air pollution and soil pollution in connection with environmental incidents were identified as material matters in 2024. The air pollutants identified and hence reported as material entity-specific datapoints for air pollution are emissions of $\mathrm{NO}{x}$ (nitrogen oxides), $\mathrm{SO}{x}$ (sulfur oxides), and $\mathrm{PM}_{10}$ (particulate matter) from fuel combustion.

Air pollution is relevant to our business activities due to the operation of machinery and vehicles. The combustion of fuels (direct energy) mainly produces emissions of the air pollutants $\mathrm{NO}{x}$ (nitrogen oxides), $\mathrm{SO}{x}$ (sulphur oxides), and PM10 (particulate matter). These emissions are below the reporting thresholds specified in Annex II of Regulation (EC) No 166/2006 (E-PRTR). However, due to their relevance to HOCHTIEF's business activities, they are reported as entity-specific indicators in the following.

Emissions of air pollutants ${ }^{1}$ from fuel combustion in the HOCHTIEF Group

	2024 (Reference: SP 2025)	$\mathbf{2 0 2 4}$
Nitrogen oxide $\left(\mathrm{NO}_{x}\right)(\mathrm{t})$	2,654	$\mathbf{2 , 6 6 1}$
Sulfur dioxide $\left(\mathrm{SO}_{x}\right)(\mathrm{t})$	433	$\mathbf{4 3 3}$
Particulate matter $\left(\mathrm{PM}_{10}\right)(\mathrm{t})$	96	$\mathbf{9 8}$

${ }^{1}$ The emissions relate to fuel combustion under ESPB E1-Energy consumption (Scope 1 and Scope 2)
${ }^{2} 2024$ excluding portfolio effects from Thiess acquisition
Soil pollution is relevant to our business activities because potential unintentional machinery leaks as well as spills of fuel and oil cannot be completely ruled out. This can mainly result in emissions of the BTEX aromatics group of soil pollutants. These emissions are not reported separately, however, as they are below the reporting thresholds specified in Annex II of Regulation (EC) No 166/2006 (E-PRTR).

Number of environmental incidents in the HOCHTIEF Group ${ }^{1,2}$

	2024 (Reference: SP 2025)	$\mathbf{2 0 2 4}$
Category 1	0	$\mathbf{0}$
Category 2	18	$\mathbf{1 9}$

${ }^{1}$ The categories of environmental incidents are described in detail in the explanatory notes on the metrics at the end of this section.
${ }^{2}$ Minor, Category 3 environmental incidents are dealt with under the auspices of the relevant company and are not reported Group-wide.
The figures in the table also include incidents that were only sanctioned with a warning.
${ }^{3} 2024$ excluding portfolio effects from Thiess acquisition

Proportion of units in the HOCHTIEF Group certified in accordance with environmental management system standard DIN EN ISO 14001, relative to number of employees (\%)

	2024 (Reference: SP 2025)	$\mathbf{2 0 2 4}$
ISO 14001	$97 \%$	$\mathbf{9 8 \%}$

${ }^{1} 2024$ excluding portfolio effects from Thiess acquisition

Number of employees in the HOCHTIEF Group who have participated in environmental training (\%)

	2024 (Reference: SP 2025)	$\mathbf{2 0 2 4}$
Environmental trainings	$70 \%{ }^{2}$	$\mathbf{7 0 \%}{ }^{2}$

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[^0]: ${ }^{1} 2024$ excluding portfolio effects from Thiess acquisition
${ }^{2}$ In the 2024 reporting year, 13,986 employees were identified as the relevant target group.

Notes on ESRS E2 metrics: Methodology and data sources

Transparent and verifiable data collection is critical to making informed judgments about the development of our strategy, actions, and targets in relation to our material impacts. The methodology, underlying assumptions, and data sources used to arrive at the metrics disclosed in this section are thus explained in the following.

Throughout the Group, standardized processes and data collection methods are applied in order to ensure high standards of data quality, consistency, and comparability. All metrics in this section have undergone quality assurance, but have not been validated by another external body. Information on the quality assurance of the metrics can be found in the ESRS 2 General
Disclosures section under "Data completeness, reliability, and quality." The operating companies apply the Group-wide data collection hierarchy, which prioritizes primary data (see ESRS 2).

Metrics in the ESRS E2Pollution section

HOCHTIEF Group air pollutant emissions

Soil pollution in connection with environmental incidents in the HOCHTIEF Group

Number of environmental incidents in the HOCHTIEF Group

Proportion of units in the HOCHTIEF Group certified in accordance with environmental management system standard DIN EN ISO 14001

Significant assumptions, calculation methodologies, and limitations

In the context of our business activities and as the outcome of comprehensive analysis, emissions of the air pollutants $\mathrm{NO}{\mathrm{x}}, \mathrm{SO}{\mathrm{x}}$, and PM 10 are material matters for HOCHTIEF in terms of air pollution. Calculated emissions of these air and soil pollutants at project level are below the reporting thresholds specified in Annex II of Regulation (EC) No 166/2006 (E-PRTR). We nevertheless report emissions of the air pollutants $\mathrm{NO}{\mathrm{x}}, \mathrm{SO}{\mathrm{x}}$, and PM 10 voluntarily as an entity-specific metric.

Emissions of BTEX aromatic soil contaminants associated with potential machinery leaks and fuel and oil spills in environmental incidents are a material matter in our operations.

However, calculated emissions of these soil pollutants at project level are well below the reporting thresholds specified in Annex II of Regulation (EC) No 166/2006 (E-PRTR). For this reason, no metrics on soil pollutant emissions are presented in the reporting year.

This metric has high data quality as primary data on each incident is recorded and documented on a project-specific basis. The data is then reported on a consolidated basis at Group level.

Clear assignment of environmental incidents to these categories generally poses no problem. In certain instances, however, clear categorization can be challenging-if insufficient information is available on an incident, for example, or where multiple environmental matters are affected. In such cases, incidents are classified case by case based on the information available.

Category 1 and 2 environmental incidents
Category 1 environmental incidents (severe incidents): High societal and/or environmental impact with poten-tially irremediable long-term adverse consequences.

Category 2 environmental incidents: Moderate societal and/or environmental impact (with damage lasting one to three months) that is fully remediable in the long term.

This metric has high data quality. HOCHTIEF's operational units are each certified in accordance with DIN EN ISO 14001. This relates to the number of employees assigned to these units. The figure is consolidated at Group level.

Metrics in the ESRS E2- Pollution section	Significant assumptions, calculation methodologies, and limitations
Number of employees in the HOCHTIEF Group who have participated in environmental training	This metric has high data quality as the information is recorded by the operational units on the basis of a defined classification of environmental training. The target groups for environ- mental training are determined by the operational units according their employees' tasks (such as construction management, site preparation, or equipment operator). The environ- mental training covers the topics relevant to the business activities. Most is related to the issues of air and soil pollution either directly or indirectly (such as through reductions in fuel consumption).
	Quality assurance of data at all data collection levels and Group-wide data consolidation ensure that there is no double counting and that data is recorded accurately.

ESRS E3

Water and marine resources

Water protection through effective water management

Water is a precious commodity, a much-used resource, and the foundation of life on our planet. The availability and quality of water largely depends on factors such as climate zone, topography, and local river network connectivity. It is also significantly influenced by anthropogenic activities. Climate change in particular has a direct impact on water availability as it causes more irregular precipitation and more extreme weather events such as droughts and heavy rainfall (for further information, please refer to the Climate change section). Water filtrationan important ecosystem service-additionally depends on biodiversity, which is highly endangered in the face of climate change (for further information, please refer to the Biodiversity and ecosystems section).

In view of these stress factors, the International Decade for Action on Water for Sustainable Development, 20182028¹, which was unanimously adopted by the United Nations General Assembly, places an increased focus on water protection over the period 2018 to 2028.

Water protection is also a material matter for the HOCHTIEF Group, as our activities sometimes consume considerable quantities of water. Water is used for a variety of processes in construction projects-in dust control, in earthworks such as drilling, in cleaning, and in producing concrete. As well as from the local water mains, the water used in such processes can also be sourced from groundwater, rivers, streams, and wetlands. While national regulatory frameworks for construction projects and related permit processes for our projects require basic consideration of water protection, more far-reaching, proactive efforts are needed to safeguard water availability as well as to responsibly use and maintain this limited resource. HOCHTIEF recognizes its responsibility to protect water through effective water management. The aim is to avoid negative impacts on nearby water bodies and related risks during the entire construction process as well as to advance positive impacts and opportunities.

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[^0]: ${ }^{1}$ United Nations, International Decade for Action on Water for Sustainable Development, 2018-2028

Material impacts

The material impacts were identified in the materiality assessment for 2024 conducted by HOCHTIEF in accordance with the double materiality principle. HOCHTIEF's assets and business activities along the entire value chain were assessed for actual and potential impacts, risks, and opportunities. This process is described in detail in the ESRS 2 General Disclosures section.

Positive impacts (PI)

Water

E3-PI1 With strategies to reduce water consumption and with water management projects such as distribution networks, canals, and water treatment plants, we contribute to enhanced water availability and maintenance of water quality as well as water-related resilience in the areas in the vicinity of projects. (actual; entire value chain)

E3-PI2 A reduction of water withdrawals through preventive measures can minimize adverse effects on water availability, especially in areas under water stress.
(actual; entire value chain)

E3-PI3 Through increased use of circular water systems (recycling/reuse) in our projects, we can significantly reduce withdrawals and of water, minimizing the water-related stressors on the environment.
(actual; own activities and downstream value chain)

E3-PI4 Solutions such as clarifiers and filters next to infrastructure projects enable a controlled discharge of water into the environment, which can be beneficial for the local water systems.
(actual; own activities and downstream value chain)

Negative impacts (NI)

E3-NI1 Construction (and upstream production) activities generally require large quantities of water, which can potentially disrupt the balance of (local) water systems. (actual; upstream value chain and own activities)

E3-NI2 Operational (and upstream) production activities generally require considerable water withdrawals, which can temporarily disrupt local water systems and exacerbate water scarcity, especially in areas under water stress. (actual; upstream value chain and own activities)

Material opportunities and risks

Opportunities (O)
Water

E3-R1 There is a risk of disruption to access to water as the water cycle is adversely affected by climate change and other actors' withdrawals, holding up construction. (entire value chain)

Project-based business model at HOCHTIEF

HOCHTIEF's business model is project-based, which means that HOCHTIEF delivers individual projects for its clients in accordance with contractual specifications. We mobilize plant, machinery, and resources for the finite duration of each project. Once a project has been completed, these resources are recalled and used for the next project. As no stationary, long-term physical assets are installed in this process, projects are not counted as permanent operating locations of HOCHTIEF for ESRS purposes. Accordingly, the site-specific disclosure requirements do not apply to our project activities for all relevant topical standards (E3 and E4).

Our office buildings can be defined as permanent locations, but their environmental impact is marginal and not material in the overall Group context.

Nevertheless, HOCHTIEF is committed to moving further in the direction of project-specific materiality assessment. The necessary strategic steps are embedded in the policies under E3 and E4 and we plan to incorporate them into our next sustainability plan.

Plan for the development of a project-specific materiality assessment based on the LEAP approach

We took important further steps during the 2024 reporting year to advance water protection matters throughout the Group and to enable project-specific analysis from a current Group-wide perspective in the future. The strategic foundation for water protection at HOCHTIEF was laid by the incorporation of water protection into our Sustainability Plan 2025, the formulation of associated targets (2022), and the publication of the HOCHTIEF position paper on water protection. A key focus is placed here on the water protection plans in projects in or near water-stressed areas, which HOCHTIEF applies on its own initiative-in addition to meeting the minimum requirements specified by clients. We plan to fine-tune this approach and are looking into the implementation of a methodology based on the LEAP ("Locate, Evaluate, Assess, and Prepare") framework. This will enable matters in relation to water resources and their sustainable use to be tracked and managed individually for all projects. The methodology has been developed in close consultation with the operational HOCHTIEF units and is currently undergoing usability testing. We are considering incorporating this methodology into our Sustainability Plan 2030 (for further information, please see the chart headed "Milestones in the HOCHTIEF water protection strategy").

Based on building permits and environmental impact assessments, key requirements for a project in accordance with local environmental standards are contractually stipulated by clients in tenders. With the planned development of a project-specific analysis, we underscore our commitment to incorporating water protection measures in excess of minimum requirements into our projects in order to ensure sustainable use of water resources in all activities over the long term.

Milestones in the HOCHTIEF water protection strategy

E3-1

Policies related to water resources

HOCHTIEF has made the protection and sustainable use of water resources a thematic focus of its sustainability strategy. In 2022, in view of the growing challenges posed by climate change, the increasing global shortage of water ${ }^{1}$, and the impact of our business activities, we developed our HOCHTIEF position paper on water protection together with the operational units. Following adoption by the Executive Board, the position paper was rolled out for binding application throughout the Group.

In addition to the HOCHTIEF position paper on water protection, policies described in other environmental sections of this report also closely relate to this topic. Our climate change and biodiversitypolicies, for example, directly address factors driving the loss of water availability (such as surface sealing, extreme weather events, and the degradation of ecosystem services such as water filtration), and our circular economy strategy allows us to identify and implement water protection solutions across the entire life cycle of a project.

The aim of the policy paper is to minimize water consumption, increase the proportion of water that is reused or recycled, and reduce the negative impact on water bodies by means of effective water management throughout the life cycle of a project. To track the implementation of our policy, we have formulated corresponding targets in our Sustainability Plan 2025 (for further information, please refer to the chart headed "Milestones in the HOCHTIEF water protection strategy" and E3-3). We seek to collaborate closely with business partners and suppliers here to promote sustainable water protection practices.

[^0]
[^0]: ${ }^{1}$ UN World Water Development Report, 2024

Responsibility for implementing the position paper lies with HOCHTIEF's operational units. They are assisted in this by a Group-wide working group on water, which consults on improvements to our strategy on an ongoing basis and ensures that subject-matter expertise and best practices are propagated throughout the Group and made available for our projects. Corporate Sustainability maintains close contact with the operational units, monitors progress, and reports directly to the Executive Board. Our commitments are reviewed on a quarterly basis in Group-wide monitoring and reported transparently alongside our water-related metrics in our annual sustainability reports. HOCHTIEF aims with this strategy to not only minimize its impact on water resources but also to make a positive contribution to global water protection goals.

Strategic areas of the position paper

Minimizing water consumption: HOCHTIEF reduces water consumption by deploying innovative technologies to increase efficiency and minimize the use of fresh water. We also implement alternative methods, such as soil binders for dust suppression and efficient equipment that needs less water.

Using more efficient or alternative technologies together with preventive measures improves water availability and reduces water-related pressures while minimizing potential disruptions to local water systems caused by large water withdrawals. (E3-PA1, E3-PA2, E3-NA1, E3-NA2)

Promoting recycling and reuse: A key element of the strategy is the reprocessing and reuse of water. This includes harnessing technologies such as filtration and clarification systems, neutralization methods, and rainwater retention basins. To further reduce fresh water consumption, previously used water is employed in construction applications such as ground compaction and dust suppression.

Increased use of recirculating water systems promotes sustainable water management, improves water availability, and reduces water-related environmental pressures. Greater reuse can significantly reduce both our water withdrawals and discharges. (E3-PI1, E3-PI3)

Protecting nearby water bodies: Projects with a best-practice approach to sediment and erosion control ands well as responsible discharge (for example, in terms of volume, temperature, and sedimentation) protect nearby water bodies.

Controlled water return and sediment control measures protect local water systems and help maintain water quality while reducing potential disturbance from construction activities. (E3-PA4, E3-NA1)

Data management and monitoring: A key focus is on systematic measurement and monitoring of all water consumption and water recycling activities. The metrics collected can be used to assess progress and pinpoint scope for improvement.

Preventive measures and continuous data collection help optimize resource use and minimize potential risks relating to restricted access to water. (E3-PA2, E3-R1)

Awareness raising and collaboration: The position paper includes training for employees, clients, and business partners to promote the responsible use of water. Local communities and stakeholders are also actively involved in water protection measures. This ensures public acceptance and strengthens cooperation for the joint development of sustainable solutions.

Involving business partners and communities helps safeguard water quality while enhancing water-related resilience and promoting sustainable practices. (E3-PA1)

Water protection plans in water-stressed areas

While the position paper applies to all HOCHTIEF Group projects and promotes the responsible use of water throughout the Group, projects that are located in or near water-stressed areas and exceed the thresholds for classification as such (see the explanatory notes at the end of this section) are additionally required to compile a water protection plan (for further information, please refer to E3-2). As these are areas where HOCHTIEF could potentially have a major impact on local water availability, we have committed to implementing project-specific water conservation plans for all projects in such areas since 2021 (and thus also in the reporting year). A corresponding target is included in our Sustainability Plan 2025 and progress is reviewed annually.

Focus on water stress as key water risk

HOCHTIEF regards water stress to be the most critical physical risk for identifying projects in areas affected by water risks. This is because this factor takes into account the availability of water in relation to the local total withdrawals for our projects and thus creates a comprehensive picture of possible risks in line with our business activities. Our assessment is based on the World Resources Institute (WRI) Aqueduct water risk map and ESRS definitions of water risks. Projects in regions with high or very high water stress are of particular importance to us because they present the greatest challenges in terms of sustainable water use.

E3-2 | E3-3

Actions and targets related to water resources ${ }^{1,2,3}$

Water management includes various measures for the sustainable use and protection of water resources in all business activities. The measures and objectives of the HOCHTIEF Sustainability Plan 2025 also aim to identify, address, and minimize material impacts and risks in areas at risk of water stress. In these regions in particular, efforts are made to keep water consumption as low as possible. Such measures can be implemented independently of our clients. These include employee training on the sustainable use of water resources as well as technical systems and equipment in our office buildings. However, the largest water consumption volumesand accordingly the greatest scope for savings-relate to our operational business activities. This is why close collaboration with our clients and business partners at the early stages of a project is essential. In order to track implementation of the actions, Group-wide targets have been defined independently of regulatory obligations and with close involvement of our relevant stakeholders (such as customers). In the following, the main actions together with the related targets are presented. The actions apply to all business activities and operating regions.

[^0]
[^0]: ${ }^{1}$ All reported targets have been set without environmental thresholds, without being broken out on a company-specific basis, and formulated voluntarily (not on the basis of legal requirements). However, they are mandatory under the HOCHTIEF Sustainability Plan 2025.
${ }^{2}$ Targets and geographical boundaries correspond to the Sustainability Plan 2025 (details under "ESRS 2: General disclosure").
${ }^{3}$ Certain ESRS 2 MDR-T disclosure requirements (79 (a), 79(e), 80 (f), and 80 (h)) are met by disclosures in "ESRS 2: General disclosures"

Action: Water protection plans in water-stressed areas

Description of actions

Each of HOCHTIEF's operational units tracks projects in water-stressed areas and compiles a project-specific water protection plan based on an internal HOCHTIEF template. The plan identifies relevant water stress factors and specifies processes and strategies to minimize water consumption. This includes implementing best-practice management initiatives, ensuring compliance with water quality standards as well as monitoring discharge and drainage processes in various project phases. Additionally, clear timetables are specified for all measures and methodologies introduced to continuously monitor, measure, and analyze water consumption. Regular evaluation is carried out to verify the effectiveness of the measures, identify scope for improvement, and implement any necessary corrective action. Finally, water protection plans are regularly updated to ensure that all projects achieve maximum effectiveness in terms of water protection and meet the set targets. The individual measures under water protection plans are tailored to each project. Examples include:

• Wastewater filter systems to safeguard water quality
• Sediment and erosion controls to prevent negative impacts on nearby water bodies
• Rainwater retention basins to minimize water withdrawal
• Use of soil binders or greenery in place of water for dust suppression on the construction site
• Low-moisture compaction

Progress is monitored through regular data collection, which tracks project-specific water consumption for projects in waterstressed areas, with annual disclosure in the sustainability report.

Actions implemented in the reporting year

Project

Ruskin Dam,
Vancouver, British Columbia, Canada,
Flatiron

Outcomes

Flatiron is committed to sustainability in water-sensitive regions. The Ruskin Dam project is located near a river with important salmon habitats. To protect flora and fauna, water management strategies have been developed that safeguard aquatic ecosystems and address challenges in water-poor areas. A water treatment system is used to treat groundwater from the excavated basin. This water can then be used to prepare mortar. Surplus water is purified to the highest standards and can be released back into the river. Daily water quality testing and monitoring of the river ensure compliance with strict regulations and protection of the salmon population. Emergency systems regulate rapid stormwater influx on the construction site.

Target!: Implementation of water protection plans and execution of corresponding measures in $100 \%$ of the projects in water-stressed areas

IROs:	Base year:	Target year:	Progress measurement:
Relates to all material impacts, opportunities, and risks in E3	2021	continuous	quarterly, Group-wide, and per operating unit
	Baseline:	Target:	Geographical
	$0 \%$	$100 \%$	boundaries: worldwide
		Value chain:
		upstream $\bigcirc$ own activities downstream
Relation to sustainability strategy	- HOCHTIEF Sustainability Plan 2025
	- HOCHTIEF position paper on water protection
	- Group directive on Occupational Safety, Health, Environmental and Climate Protection.

Target-setting methodologies and assumptions:

Construction projects can potentially negatively impact the hydrological regime, particularly in areas at risk of water stress where the use of water resources is especially critical. This places a special focus on the conservation and sustainable use of water in such regions. The target of implementing water protection plans in 100\% of the projects in water-stressed areas is based on a structured analysis of water stress levels using the World Resources Institute (WRI) Aqueduct tool or equivalent methods. (See the explanatory notes at the end of this section for detailed information on identifying proejcts in water-stressed areas.) The operational units apply specific thresholds to identify these projects in accordance with their business activities. These thresholds are presented at the end of this section. The results are documented and transparently reported to enable informed decisions and preventive action. This data-based approach ensures that all relevant projects are identified and effective strategies implemented for water reduction and reuse in various project phases to continuously improve resource conservation.

Status and trend analysis: In the reporting year, a water conservation plan was implemented in 113 out of of 113 projects in water stress regions, corresponding to 100\% target achievement (thresholds and details on data collection are presented in the explanatory notes at the end of this section). This is in line with the targets in the HOCHTIEF position paper and the Sustainability Plan 2025.

Action; Reducing water consumption by recycling and reuse

IROs: E3-PI2, E3-NI1, E3-NI2	Time horizon for implementation: Short-, medium-, and long-term	Value chain: upstream $\quad$ own activities $\quad$ downstream
Relation to sustainability strategy	- HOCHTIEF Sustainability Plan 2025 - HOCHTIEF position paper on water protection - Group directive on Occupational Safety, Health, Environmental and Climate Protection.

Description of actions
HOCHTIEF takes various measures to reduce water withdrawals and discharges. Water reuse has the greatest potential to limit demand to the consumption levels necessary in line with circular economy principles and to make recurring uses of water as circular as possible. Examples of such actions include:

• Reuse of wastewater, as with the use of neutralized drilling water for compaction or dust suppression
• Recycling systems for sanitary facilities
• Use of rainwater
• Purification processes and operation of sanitary facilities
• Procurement of construction materials based on sustainable production methods, such as reduced water content, with potential influence on the upstream value chain
• Inclusion of this subject matter in contracts with suppliers and subcontractors

Actions implemented in the reporting year

Project	Outcomes
Bruce Highway Gympie	In the Bruce Highway Upgrade project, CPB Contractors installed numerous erosion and
Bypass, Queensland	sediment control basins. This resulted in a large reduction in potable water use. By collecting
Australia, CPB Contractors	stormwater on the construction site, it also reduced the need for water truck movements,
	minimizing local road congestion, dust generation, and the project's overall carbon
	footprint.

Target!: Achieving an annual water recycling/reuse rate of at least $10 \%$ of total water withdrawals

Target-setting methodologies and assumptions:

The reuse and recycling of water offer both environmental and economic benefits and contribute to the sustainable use of this valuable resource. Our target is to achieve an annual water recycling and reuse rate of at least $10 \%$ of total water withdrawals. This is intended to reduce the pressure on natural water sources.

Status and trend analysis:

Close involvement of experts from the operational units and idea sharing in the international working group on water helped to save water by implementing water recycling on a large scale in the reporting year. In 2024, we achieved a water recycling rate of over $27 \%$, reducing consumption by 907,041 cubic meters (on the basis of the HOCHTIEF Sustainability Plan 2025). This marked a substantial increase in the water recycling rate compared to 2023. Project-specific conditions have a major influence on options for water recycling and thus on target achievement. We will continue to make wide-ranging efforts to save water and maintain this good performance. We are confident that we will continue to achieve the target in future years.

E3-4

Water consumption

In the double materiality assessment carried out for our business activities, water consumption, water withdrawals, and water returns were identified as material matters Group-wide in 2024. The resulting metrics for our business activities for the reporting year are shown below.

Total water consumption in the HOCHTIEF Group

	2024 (according to SP 2025)	2024
Water withdrawal by source ( $\mathrm{m}^{3}$ )	3,374,451	14,097,082
Fresh surface water	635,046	708,948
Renewable groundwater	90,034	90,034
Non-renewable groundwater	393,411	2,291,511
Brackish surface water/seawater	-	7,384,060
Produced water	-	24,412
Third-party providers (grid, municipal supply)	2,351,493	3,593,652
Rainwater	4,465	4,465
Water discharge by destination ( $\mathrm{m}^{3}$ )	2,518,449	2,543,383
Fresh surface water	674,850	693,658
Groundwater	390,480	390,480
Brackish surface water/seawater	-	5,253
Third-party providers (grid, municipal supply)	$1,453,119$	1,453,993
Total water consumption ( $\mathrm{m}^{3}$ )	856,001	11,553,699
Water intensity per revenue ( $\mathrm{m}^{3} / \mathrm{EUR}$ million)	28	347
Water recycling rate	$27 \%$	$16 \%$
${ }^{1} 2024$ excluding portfolio effects from Thiess acquisition

Recycled/reused water in the HOCHTIEF Group

	2024 (Reference: SP 2025)	2024
Consumption of recycled fresh surface water ( $\mathrm{m}^{3}$ )	784,645	822,294
Consumption of reused fresh surface water ( $\mathrm{m}^{3}$ )	121,771	1,488,383
Brackish surface water/sea water recycled/reused ( $\mathrm{m}^{3}$ )	324	324
Total water recycled/reused ( $\mathrm{m}^{3}$ )	907,041	2,311,002
${ }^{1} 2024$ excluding portfolio effects from Thiess acquisition

Projects in the HOCHTIEF Group in areas at water risk ${ }^{1}$

	2024 (Reference: SP 2025)	2024
Number of projects in areas at water risk, including areas of high-water stress ${ }^{2,4}$	113	113
thereof projects with corresponding water protection management action plan	113	113
Coverage	$100 \%$	$100 \%$
Total water consumption in areas at water risk, including areas of high-water stress ( $\mathrm{m}^{3}$ )	810,114	810,121
${ }^{2}$ Across the HOCHTIEF Group, significant water risks are assessed in our operations. The prime focus is on projects and project water consumption in high water stress areas. ${ }^{3} 2024$ excluding portfolio effects from Thiess acquisition ${ }^{4}$ The metric includes projects that Group compares have classified on the basis of specific thresholds as projects in water-stressed areas. See also the explanatory notes on the metrics. ESRS E3: methodology and data sources. ${ }^{5}$ Projects in progress at the end of the reporting year

Notes on ESRS E3 metrics: Methodology and data sources

Transparent and verifiable data collection is critical to making informed judgments about the development of our strategy, actions, and targets in relation to our material impacts. The methodology, underlying assumptions, and data sources used to arrive at the metrics disclosed in this section are thus explained in the following.

Throughout the Group, standardized processes and data collection methods are applied in order to ensure high standards of data quality, consistency, and comparability. All metrics in this section have undergone quality assurance, but have not been validated by another external body. Information on the internal quality assurance of the metrics is provided in the ESRS 2 General disclosures section under "Data completeness, reliability, and quality." The operating companies apply the Group-wide data collection hierarchy, which prioritizes primary data (see ESRS 2).

Metrics in the ESRS E3-Water and marine resources section	Significant assumptions, calculation methodologies, and limitations
Water withdrawal by source	The total volume of water withdrawn is shown, as well as the volume of water withdrawn from different water sources: fresh surface water (according to the Global Reporting Initiative (GRI)); renewable groundwater (GRI); non-renewable groundwater (GRI); marine water (GRI); produced water (GRI); third-party water (GRI); and stormwater (according to the Dow Jones Sustainability Index (DJSI)). HOCHTIEF's operational units use various methodologies to record the data. The metric is largely based on primary data collected using delivery notes, receipts, and water meters. Where necessary-due to a lack of primary data, for example, or on very small projects-estimates were made based on historical data or similar projects. The diverse nature of water catchments as well as global variations in water availability and quality limit the scope for a uniform data collection methodology for water quality and quantities. Differing regulatory requirements and limited availability of water quality and quantity data pose further challenges for uniform data collection. It is not possible for information on water quality and water availability to be presented separately.
Water discharge by destination	The metric represents the volume of water discharged by the Group in the reporting year, in cubic meters ( $\mathrm{m}^{3}$ ). The total volume of water discharged is shown, as well as the allocation to different types of destination: surface water (according to the Global Reporting Initiative (GRI)); groundwater (GRI); seawater (GRI); third-party water (GRI). The HOCHTIEF operational units use various methodologies to record the data. As a lack of primary data makes it hard to obtain water discharge data by direct measurement, the metric is largely based on estimates. These are based on empirical values from comparable projects and in part from representative sample measurements. Where primary data was available, such as from delivery notes or water meters, it was used as the priority source in data collection.
Total water consumption	Total water consumption is recorded in cubic meters (m3) and is determined as the difference between data on water withdrawal by source and water discharge by destination, calculated at Group level.
Recycled/reused water	Records the volume of recycled and reused water and is measured in cubic meters (m3). The metric is largely based on estimates, historical data, and sample measurements in similar projects. Estimates were generally made where primary data was not available or estimation was necessary.

Metrics in the ESRS E3-Water and marine resources section	Significant assumptions, calculation methodologies, and limitations
Water recycling rate	The water recycling rate (in \%) is based on Group-level calculation of reused and recycled water as a percentage of total water consumption. This metric is a key indicator of water recycling and water reuse efficiency in the Group and thus tracks our progress in sustainable water resource management.
Water intensity	Water intensity is the ratio of total water consumption to the Group's sales in the reporting year (in EUR million). This metric is reported for the first time in this reporting year in accordance with ESRS.
Number of projects in areas at water risk, including waterstressed areas; total water consumption in areas at water risk, including waterstressed areas	The HOCHTIEF Group takes into account all relevant water risks, with a particular focus on water stress. Hence, this indicator relates to projects and water consumption in areas with high water stress, as defined in accordance with ESRS. The determination whether projects are located in water-stressed areas is based on primary data. A clearly defined process has been established to determine whether projects are located in water-stressed areas. Responsibility for identifying such projects lies with the operational units, which determine the means and thresholds to be applied,d taking into account projectspecific circumstances and project requirements. Specifically, water-stressed areas are identified using the latest version of the Aqueduct tool (or, if necessary, a comparable regional alternative solution). This enables the projects concerned and their water consumption to be precisely identified and calculated. If water stress as defined in the Aqueduct tool is high or very high, the project is tracked together with its water consumption. Water consumption in these projects is calculated on the basis of water withdrawal and water discharge. The following thresholds are applied by the operational units in line with their business activities to identify projects in water-stressed areas: Turner: EUR 20 million; HOCHTIEF in Europe: EUR 5 million; Flatiron and CIMIC: no thresholds. Accordingly, projects below these thresholds are not recorded and consequently not included in this metric.

ESRS E4

Biodiversity and ecosystems

Activities with impacts on biodiversity

Functioning ecosystems and high levels of biodiversity are essential to natural ecosystem services that we humans need to survive. Oxygen production, food supply, and water filtration are just a few examples of these basic natural processes that keep our planet habitable. However, anthropogenic activities in particular have led to a massive decline in biodiversity, with wildlife populations shrinking by almost $70 \%$ in recent years. ${ }^{1}$

At HOCHTIEF, we recognize that our business activities can have a negative impact on biological diversity and ecosystems - for example, by way of habitat fragmentation, surface sealing, or the procurement of construction materials. Production processes in the upstream value chain potentially have an impact on ecosystems. In light of these impacts, we regard it as our obligation and responsibility to protect, conserve, and restore ecosystems and their biodiversity as far as possible. At the same time, we aim to make a positive impact as a proactive partner in project delivery, working with our clients to help them achieve their sustainability targets. We apply an integrated approach here, always aiming to take the entire project life cycle into consideration so that we can select and offer the best possible solutions at all stages of a project and of the associated value chain. In this way, we seek to assume responsibility over and above conventional tendering and permit procedures as well as over and above regulatory minimum requirements.

As the thematic area of biodiversity and ecosystems is closely linked with the remaining topical environmental standards, the various strategies interlock and reinforce each other. Progress in decarbonization (E1), for instance, also indirectly mitigates the impacts of our activities on biodiversity.

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[^0]: ${ }^{1}$ WWP Living Planet Report 2024

Material impacts

The material impacts were identified in the materiality assessment for 2024 conducted by HOCHTIEF in accordance with the double materiality principle. HOCHTIEF's assets and business activities along the entire value chain were assessed for actual and potential impacts, risks, and opportunities. This process is described in detail in the ESRS 2 General Disclosures section.

Direct drivers of biodiversity loss

Positive impacts (PI)
Negative impacts (NI)

Climate change

E4-PI1 Providing low-carbon solutions to clients (decarbonization measures) reduces our contribution to climate change and thus the impact on biodiversity.
(actual; entire value chain)

E4-NI1 HOCHTIEF's business activities release considerable amounts of GHG emissions, which in turn contribute negatively to climate change, one of the major drivers of biodiversity loss. The emerging consequences of climate change include, for instance, more frequent extreme weather events, changes in seasonal cycles, or increased natural disasters, which can have significant effects on biodiversity.
(actual; upstream value chain and own activities)

E4-PI2 Sustainable procurement processes can reduce our climate change-related impact on biodiversity.
(actual; entire value chain)

Land-use change

E4-PI3 E4-PI3 If HOCHTIEF is already involved during the planning phase, solutions to mitigate the effects of large infrastructure projects in particular can be implemented. This includes solutions such as wildlife crossings over major highways, markedly reducing the effects on the local biodiversity from land use change.
(actual; own activities and downstream value chain)

E4-PI4 Renaturation or re-cultivating projects can remediate negative effects and potentially lead to an increase in biodiversity.
(actual; entire value chain)

E4-NI2 Changes in the use of land due to our projects can negatively influence natural habitats and thus lead to reduced biodiversity in the affected areas.
(actual; entire value chain)

Direct exploitation

E4-PI5 Reduced deforestation and enhanced environmental stewardship due to the use of sustainably certified timber. (actual; entire value chain)

E4-NI3 Contribution to deforestation from the use of noncertified timber.
(actual; entire value chain)

Pollution

E4-PI6 Selectively applying and using fewer polluting products, equipment as well as construction and operation methods protects biodiversity.
(actual; entire value chain)

E4-NI4 Pollution along the value chain leads to negative consequences for biodiversity through various stressors as outlined in ESRS E2.
(actual; entire value chain)

Impacts on the extent and on the condition of ecosystems

Positive impacts (PI)
Land degradation

Negative impacts (NI)

E4-NI5 Our business activities lead to soil movements, which have a negative impact on soil quality and contribute to land degradation.
(actual; entire value chain)

Desertification

E4-PI7 Implementation of commitments addressing deforestation prevention and the use of certified timber have a positive impact on the environmental footprint.
(actual; entire value chain)

Surface sealing

E4-PI8 Mitigation measures such as water-permeable concrete or asphalt as well as integration of green surfaces into our construction projects have a positive environmental impact. (actual; entire value chain)

E4-NI6 Construction projects often seal off the land. Soil sealing disrupts or fragments natural habitats, reducing the availability of suitable habitats for soil-dwelling organisms, plants, and wildlife.
(potential; entire value chain)

Positive impacts (PI)
Impacts and dependencies on ecosystem services
E4-PI9 Improvement of local ecosystem services through environmental restoration initiatives both directly in our projects and through standalone projects.
(actual; entire value chain)

Negative impacts (NI)

E4-NI7 As a result of the aforementioned impacts on habitats, ecosystems, and biodiversity, HOCHTIEF can adversely affect the ecosystem services across its entire value chain. (actual; entire value chain)

Project-based business model at HOCHTIEF

HOCHTIEF's business model is project-based, which means that HOCHTIEF delivers individual projects for its clients in accordance with contractual specifications. We mobilize plant, machinery, and resources for the finite duration of each project. Once a project has been completed, these resources are recalled and used for the next project. As no stationary, long-term physical assets are installed in this process, projects are not counted as permanent operating locations of HOCHTIEF for ESRS purposes. Accordingly, the site-specific disclosure requirements do not apply to our project activities for all relevant topical standards (E3 and E4).

Our office buildings can be defined as permanent locations, but their environmental impact is marginal and not material in overall Group context.

Nevertheless, HOCHTIEF is committed to moving further in the direction of project-specific materiality assessment. Accordingly, we intend to address this in 2025 in our Sustainability Plan 2030.

Accordingly, in the case of biodiversity and ecosystems, there will be no information regarding a site-specific risk assessment; we nevertheless collect and report information on the number and area of projects in or near nature-sensitive areas (see E4-5).

SBM-3-Resilience of HOCHTIEF's strategy in relation to biodiversity and ecosystems

As part of the double materiality assessment (DMA), HOCHTIEF also assessed the resilience of the current business model with regard to biodiversity and ecosystems-related risks. To this end, a resilience analysis was performed as part of the DMA, taking into account both the scope of the DMA (see ESRS 2: General disclosures) and the time horizons used in the DMA (see ESRS 2: General disclosures) for the assessment of potential transition, physical, and systemic risks. Following thorough analysis, no material risks of this nature were identified for biodiversity and ecosystems. Further information on the resilience of our sustainability strategy is provided in the ESRS 2: General disclosures section, under Strategy.

E4-1

Transition plan and consideration of biodiversity and ecosystems in strategy and business model

The HOCHTIEF Group has made considerable progress in recent years with regard to protecting biodiversity and ecosystems. In the following, we would like to outline this progress in conjunction with our targets from the HOCHTIEF Sustainability Plan 2025 and our HOCHTIEF position paper on biodiversity and ecosystems and present our current transition plan for biodiversity and ecosystems (see chart, "Milestones in the HOCHTIEF biodiversity strategy"). To avoid duplication in this report, sub-aspects of the transition plan-such as policies, targets, and actions-are addressed under the relevant disclosure requirements.

The thematic area of biodiversity and ecosystems is an integral part of HOCHTIEF's Group-wide strategy. At the project level, this issue was already incorporated into our activities before drafting the HOCHTIEF Sustainability Plan 2025 and taken into account in line with requirements under permit procedures, client needs, and national laws. The HOCHTIEF Sustainability Plan 2025 set Group-wide targets, initially focusing on raising awareness of the need to protect biological diversity and environmentally sensitive areas (for further information, please refer to the chart headed "Milestones in the HOCHTIEF biodiversity strategy" and under E4-4).

Milestones in the HOCHTIEF biodiversity strategy

In order to identify and mitigate the potentially negative impacts of our activities in the most sensitive areas, we established the mandatory implementation of a biodiversity action plan for any project located in or near an environmentally sensitive area. Our associated target of introducing such plans in all projects in or near environmentally sensitive areas was met in 2023 and remains the benchmark for our activities. The use of biodiversity action plans follows from the need for a Group-wide approach while allowing tailored project-level solutions for the protection of sensitive ecosystems to be implemented.

After operationalizing protection of the most vulnerable ecosystems, our strategic priority shifted to developing a generally applicable risk assessment to identify impacts and risks at project level. In 2023, we analyzed impacts and risks in a cross-cutting HOCHTIEF Group Biodiversity Risk Assessment. This paved the way for our double materiality assessment in accordance with the ESRS in the reporting year. In line with our position paper, HOCHTIEF published a plan for fine-tuning our materiality assessment entitled "Biodiversity and Ecosystems Impacts Approach-HOCHTIEF Group". Implementation of this plan is ongoing and a methodology for projectspecific assessment has been devised in collaboration with the international working group on biodiversity and in close consultation with the operational HOCHTIEF units. Based on the LEAP framework, the plan is currently being tested for usability throughout the Group. We plan to incorporate the methodology into our forthcoming Sustainability Plan 2030 and, if applicable for that purpose, to take it into account in the materiality assessment for biodiversity in 2025 (for further information, please refer to the chart headed "Milestones in the HOCHTIEF biodiversity strategy" as well as the information under E4-2 and E4-3). Our ongoing work on this topic over the past few years demonstrates the ever-growing strategic priority of biodiversity for the HOCHTIEF Group as well as our Group-wide commitment to tracking, managing, and reporting on the impacts of our business activities in as much detail as possible in the future.

E4-2

Policies related to biodiversity and ecosystems

The thematic area of biodiversity and ecosystems is an integral part of HOCHTIEF's Group-wide sustainability strategy and has been established throughout the Group with the publication of the HOCHTIEF position paper on biodiversity and ecosystems. The Executive Board adopted the position paper in 2022 and has since monitored its implementation. We have since made significant progress (for further information, please refer to the chart headed "Milestones in the HOCHTIEF biodiversity strategy") and hence aim to have the biodiversity working group revise the position paper in 2025 in close collaboration with experts and business partners. As part of the planned revision of our policies, actions, and targets in the Sustainability Plan 2030, we also aim for closer alignment with the prevailing regulatory framework, the EU Biodiversity Strategy for 2030, and the Kunming-Montreal Global Biodiversity Framework. Responsibility for operational implementation of the position paper lies with each operational unit. This is supported by exchange among experts in the international working group on biodiversity. The effectiveness of the position paper is monitored by the Sustainability corporate department, which reports directly to the Executive Board. Among other aspects, our focus is on constantly strengthening collaboration with customers, suppliers, and business partners in order to promote sustainable practices along our value chain.

The position paper builds on the targets under the HOCHTIEF Sustainability Plan 2025 (for further information, please refer to E4-4) and serves as the basis for our transition plan. It outlines HOCHTIEF's long-term strategy for the protection of biodiversity and ecosystems, with four main elements:

1. Raising awareness, internally and externally, of responsible action with regard to biodiversity and the protection of ecosystems: The first step in HOCHTIEF's strategy was to focus on our employees and business partners, as Group-wide awareness and understanding of the topic are crucial to targeted, project-specific consideration and management of the impacts of our activities on biodiversity. This has been incorporated with corresponding targets into our Sustainability Plan 2025 (for further information, please refer to E4-4) and has since been continuously promoted in training and by sharing best practices (for further information, refer to E4-3).
2. Implementation of a biodiversity action plan (BAP) in all projects in or near environmentally sensitive areas: The operational priority in the HOCHTIEF strategy is to protect the most vulnerable ecosystems. That is why implementation of a BAP has been made mandatory for projects in or near environmentally sensitive areas and established by setting a target throughout the Group in the Sustainability Plan 2025. This made it possible to develop specific protective measures in all such projects. The action plans assess environmental impacts similar to the approach described in the ESRS and take into account interactions with affected communities and other stakeholders. In addition, operational units are each required to identify mitigation measures and define key performance indicators (KPIs) to track progress. This is facilitated by sharing best practicesfollowing consultation with the biodiversity working group-as specified in the action plan template. (Further details on targets and actions are reported under E4-3 and E4-4.)
3. Development of a methodology to monitor, measure, and quantify impacts on biodiversity and ecosystems for all projects: The next step in effectively protecting biodiversity and ecosystems in our operations is to develop a Group-wide LEAP methodology (for further information, please refer to the chart headed "Milestones in the HOCHTIEF biodiversity strategy" and the information under IRO-1, SBM-3, E4-3, and E4-4). HOCHTIEF aims to use the improved data collection to manage its operational impacts on biodiversity on a project-by-project basis and to offer clients tailor-made solutions that exceed their contractual requirements. The methodology will be tested for Group-wide usability, and we plan to integrate it into our processes in 2025. Further details are reported under E4-3 and E4-4.

4. Integration of minimum requirements for the protection of biodiversity and ecosystems into HOCHTIEF's

internal contract award processes: As soon as data collection allows for all impacts to be fully tracked and managed in ongoing projects, minimum requirements can be specified for the proactive identification and, where applicable, avoidance of future projects that would have significant negative impacts on biodiversity and ecosystems. In this connection, we take into account the fact that our clients' legally prescribed award procedures and approval processes require thorough environmental impact assessments. By introducing environmental minimum requirements in excess of these in our internal award procedures, HOCHTIEF sets sustainable benchmarks for itself and its clients.

HOCHTIEF intends to incorporate targets for the remaining milestones into the future Sustainability Plan 2030. Additionally, our transition plan can be revised and extended in the same context, above all in terms of its longterm dimension.

Besides setting out these milestones in our long-term strategy, the position paper disseminates best practices around the main drivers of biodiversity loss and describes goals for tracking and measuring the above-mentioned milestones (for further information, please refer to E4-4). The strategic implementation of the directive in relation to the identified material impacts, opportunities, and risks is the responsibility of the operational units and is currently in process as follows:

• Pursuant to the statutory minimum requirements for construction projects, negative biodiversity impacts of projects commissioned by our clients are tracked and managed on a project-specific basis in accordance with the applicable national rules and regulations.
• Our operational environmental management additionally stipulates that impacts on biodiversity and ecosystems have to be taken into account at all times under the decentralized responsibility of the operational units.
• Irrespective of the stage at which HOCHTIEF becomes involved in a project, we aim to proactively offer our clients sustainable solutions that exceed their minimum contractual requirements while at the same time helping to avoid negative impacts and advance positive ones.
• By requiring a BAP for projects in or near environmentally sensitive areas, we ensure that our impacts in the most vulnerable areas are identified at an early stage and that targeted mitigation measures are applied.

In 2025, the position paper is to establish even stronger Group-wide linkage to impacts, actions, and targets also in this regard. For project-specific impact management, HOCHTIEF's position paper already sets out the Group-wide mitigation hierarchy by which individual actions are prioritized (for further information, please refer to E4-3). As our strategy evolves and we continue to implement our transition plan, HOCHTIEF is confident that, together with our business partners, we will be able to develop and implement even better solutions to protect biodiversity in the future.

Since climate change, as one of the main drivers of biodiversity loss, is described in detail along with the associated policies and actions in E1, the related material impacts from E4 (E4-PI1, E4-PI2, and E4-NI1) are also addressed in relation to decarbonization levers 2 to 4 . Furthermore, a number of impacts can only be advanced or prevented through close collaboration with stakeholders. This is why decarbonization lever 1 also includes and addresses the following impacts Group-wide: E4-PI3, E4-PI4, E4-PI5, E4-NI3, E4-PI7, E4-PI8, and E4-PI9. In line with our biodiversity strategy, all material impacts are additionally taken into account on a project-specific basis in the biodiversity action plans and addressed by our operational units.

Biodiversity mitigation hierarchy

E4-3 I E4-4

Actions and targets related to biodiversity and ecosystems ${ }^{123}$

Action: Creation of awareness for the protection of biodiversity and ecosystems

Description of actions
HOCHTIEF aims to raise awareness of biodiversity and ecosystems among all parties to projects in order to further reduce the impact of projects on nature.

To this end, we develop guidelines and best-practice examples for the incorporation of biodiversity-related action into design and construction processes. This includes using nature-friendly construction methods, protecting sensitive ecosystems during construction and restoring affected areas following project completion. With these measures, we not only create lasting environmental benefits but also help instill an understanding of the importance of nature conservation among our business partners. This reinforces environmental responsibility in the construction industry for the long term and contributes significantly to reducing the negative impact of our activities.

Examples:

• Avoiding deforestation by using timber from sustainably managed forests with certifications from, for example, the Forest Stewardship Council (FSC)
• Regular dialogue with relevant stakeholders such as local communities to promote sustainable land use and conservation measures

Actions implemented in the reporting year

Project

International Day of
Biodiversity: Quiz,
HOCHTIEF Infrastructure

Outcomes

A practical initiative by HOCHTIEF to raise awareness and make a difference with regard to biodiversity is the company's annual participation in the UN International Day for Biological Diversity. The idea is to bring the topic to life in a fun and engaging way. For instance, HOCHTIEF Infrastructure's sustainability team prepared a quiz for employees to test their biodiversity knowledge. Taking part in the quiz not only fosters an understanding of the importance of biodiversity but also encourages people to reflect on the issue and get involved.

This initiative is a vivid example of HOCHTIEF's integrated approach to both disseminating knowledge about and actively promoting biodiversity. It shows how companies can harness creative ways of raising awareness of environmental issues and at the same time making a positive contribution to environmental protection.

[^0]
[^0]: ${ }^{1}$ All reported targets have been set without environmental thresholds, without being broken out on a company-specific basis, and formulated voluntarily. However, they are mandatory under the HOCHTIEF Sustainability Plan 2025.
${ }^{2}$ Targets and geographical boundaries correspond to the Sustainability Plan 2025 (details under "ESRS 2: General disclosures").
${ }^{3}$ Certain ESRS 2 MDR-T disclosure requirements (79 (a), 79 (e)), 80 (f), 80 (g), 80 (h), 80 (i), and 80 (j) are met by disclosures in "ESRS 2: General disclosures"

Target: Creation of awareness for the preservation of biodiversity and ecosystems in all projects

Target-setting methodologies and assumptions:

H OCHTIEF has increasingly implemented actions in recent years to raise awareness of biodiversity and ecosystem protection across all projects. Environmental and biodiversity experts are assigned to projects so that ecological matters are considered from the outset and in order to develop specific conservation strategies. This is how we track effectiveness in relation to this target. Biodiversity conservation is likewise promoted in specially developed training in order to provide in-depth knowledge and the necessary awareness of biodiversity issues at all project stages. An international H OCHTIEF working group coordinates these efforts, shares best practices, and continually develops new solutions to minimize impacts on nature. This targeted action creates a sound basis for the long-term protection of biodiversity and promotes sustainable practices in the construction industry. The number of projects in and near environmentally sensitive areas with corresponding action plans is an important indicator of progress toward achieving this target.

Status and trend analysis:

In the reporting year, H OCHTIEF published a plan for fine-tuning our materiality assessment entitled "Biodiversity and Ecosystems Impacts Approach-H OCHTIEF Group". Implementation of this plan is ongoing and a methodology for project-specific assessment has been devised in collaboration with the international working group on biodiversity and in close consultation with the operational units across the H OCHTIEF Group.

In-house experts provided training on effective implementation of the action planning process. The primary objective here is to elicit awareness and understanding, while also defining and implementing suitable measures for the various project phases. To ensure uniform recording and reporting, the working groups established standardized definitions throughout the Group. Our project managers work closely with clients and the authorities, assisted by experts who are able to prepare ecological reports and species conservation projects to track the entire construction process.

Action; Implementation of biodiversity and ecosystem management action plans in environmentally sensitive areas

IROs: Relates to all material impacts, opportunities in E4

Relation to sustainability strategy

Time horizon for implementation: Short-term

• HOCHTIEF Sustainability Plan 2025
• HOCHTIEF position paper on biodiversity and ecosystems: Milestone 2
• Mitigation hierarchy: All levels (avoidance, minimization, and restoration/rehabilitation, offsets)
• Group directive on Occupational Safety, Health, Environmental and Climate Protection

Description of actions

Biodiversity action plans are implemented in environmentally sensitive areas so that operational units can respond to individual project requirements and protect the most vulnerable environmentally sensitive areas affected by our operations. These plans provide project managers with the parameters necessary to avoid and manage the impacts and risks identified in the best possible fashion. Here, too, we recognize that the final decision on implementing measures as well as their funding lies with the client. This means we can proactively propose sustainable solutions to our business partners-especially if we are involved from early on in the design phase.

The plans include-among others-the following elements:

• Project type and location: Specification of the type of project and its proximity to areas of conservation value.
• Ecosystem types: Assessment of terrestrial and aquatic ecosystems, including endangered species.
• Stakeholder engagement: Collaboration with key stakeholders, such as local communities, public authorities, and NGOs.
• Mitigation measures: Specific action to mitigate negative impacts, such as the establishment of wildlife corridors, the avoidance of deforestation, and the use of sustainable materials.
• Biodiversity compensation measures to reduce and offset potential negative impacts of our business activities on biodiversity, such as renaturation, reafforestation, or ecological compensation areas; in most cases, these are contractual elements of the projects we execute for clients. In some instances, we implement additional voluntary compensation measures such as reforestation projects ${ }^{1}$
• KPIs: Definition of specific indicators to monitor the action taken, such as hectares of rehabilitated land, resources saved, or carbon reduction.

Below, we present a number of key measures that feature in BAP best practices across the various project phases:

Design and planning phase

• Ecological compensation areas
• Protection programs for protected species
• Sustainable procurement

Construction phase

• Conservation of flora and fauna
• Flood protection programs
• Prevention plans against the introduction of invasive species

Operating phase

• Sustainable management of nearby habitats

Actions implemented in the reporting year

Project

M12 Motorway (West) Project, Sydney, Australia CPB Contractors

Outcomes

CPB Contractors has implemented biodiversity action plans to minimize the impact on local ecosystems. Endangered species are protected, fauna relocated, and habitats monitored under a Construction Flora and Fauna Management Plan (CFFMP). Measures include erecting protective fences for fauna and safe fauna relocation. These steps contribute to sustainable development and reduce the ecological footprint of construction projects.

[^0]
[^0]: ${ }^{1}$ HOCHTIEF does not currently use biodiversity offsets.

Target: Implementation of biodiversity action plans in 100\% of projects in environmentally sensitive areas

IROs: Related to all material impacts, risks, and opportunities in E4	Base year: $n / a$	Target year: annually	Progress measurement: quarterly, Group-wide, and per operating unit
	Baseline: $n / a$	Target: $100 \%$	Geographical boundaries: worldwide
	Value chain: upstream own activities downstream
Relation to sustainability strategy	- HOCHTIEF Sustainability Plan 2025 - HOCHTIEF position paper on biodiversity and ecosystems: Milestone 2 - Group directive on Occupational Safety, Health, Environmental and Climate Protection. - Mitigation hierarchy: All layers (avoidance, reduction, restoration/rehabilitation, and compensation or offsets)

Target-setting methodologies and assumptions:

The target of implementing biodiversity action plans in 100\% of construction projects in or near environmentally sensitive areas is a key step for HOCHTIEF in minimizing the impact of our business activities on habitats of conservation value and for us to actively contribute to conserving biodiversity. Protecting and nurturing biodiversity particularly in environmentally sensitive areas is crucial to the long-term conservation of such areas and their ecosystems.

For HOCHTIEF, the target means preparing and implementing a project-specific biodiversity action plan in every relevant project. These plans set out specific action to prevent or minimize negative impacts on flora and fauna. They are geared to the specific needs of the affected natural habitats and applicable conservation regulations. Implementation is based on a detailed environmental assessment that takes into account the ecological characteristics and challenges of the area concerned. This includes identifying species and habitats of conservation value and developing conservation strategies that are Ourly coordinated with local and international nature conservation frameworks.

Key elements of the plans comprise preventing habitat loss, promoting ecosystem restoration, and integrating measures to protect endangered species. The plans also include the implementation of monitoring to continuously track the environmental impact of construction work and ensure that the specified objectives are achieved. By consistently implementing biodiversity action plans in environmentally sensitive areas, HOCHTIEF demonstrates its commitment to active environmental protection and the sustainable execution of construction projects. The target promotes construction practices that not only meet contemporary needs but also contribute to the long-term conservation of natural habitats and their biodiversity.

Status and trend analysis: We aim to prepare and implement biodiversity and ecosystem management action plans in all projects in areas defined as environmentally sensitive in the HOCHTIEF position paper on biodiversity and ecosystems. This is based on the HOCHTIEF mitigation hierarchy, with the aim of avoiding and offsetting negative impacts on biodiversity and ecosystems in our projects and undertaking restoration measures. To this end, a biodiversity action plan has been developed to ensure that all relevant issues are taken into account. Topics include identifying issues relevant to a project, assessing impacts, managing opportunities and risks, mitigation measures, and processes for measurement and control.

In the reporting year, biodiversity action plans were implemented with corresponding measures in 52 out of a total of 52 projects in environmentally sensitive areas, corresponding to 100\% target achievement. We expect to once again achieve this target in the coming years, as we did in 2023 and 2024 .

[^0]
[^0]: ${ }^{1} 2024$ excluding portfolio effects from Thiess acquisition

Action: Development of a project-specific methodology for tracking impacts on biodiversity and ecosystems

IROs: Relates to all material impacts, opportunities, and risks in E4

This:

$\square$

Time horizon for implementation: Short-, me-
diurn-, and long-term

Value chain:

upstream own activities downstream

Relation to sustainability strategy

• HOCHTIEF Sustainability Plan 2025
• HOCHTIEF position paper on biodiversity and ecosystems: Milestone 3
• Group directive on Occupational Safety, Health, Environmental and Climate Protection.
• Mitigation hierarchy: All levels (avoidance, reduction, restoration/rehabilitation, and compensation or offsets)

Description of actions

HOCHTIEF is currently developing a project-specific methodology to systematically track the impact of construction projects on biodiversity and ecosystems. A potential approach for implementing this methodology (the LEAP approach) was developed in the reporting year. The methodology takes into account specific circumstances such as the nature and location of the project, the ecosystems affected, biodiversity, and local environmental conditions. It includes a thorough assessment of potential impacts of construction activities on flora, fauna, and natural habitats, including direct and indirect impacts during construction, operation, and dismantling.

Furthermore, the methodology identifies potential environmental risks at an early stage and allows the development of targeted action, and implementation in consultation with the client, to prevent, minimize, or offset impacts. This aids the integration of biodiversity and nature conservation measures into project design and execution, thus contributing to sustainable development and environmental protection.

Actions implemented in the reporting year

Project

A6 autobahn, Germany, PPP Solutions

Outcomes

A section of the A6 autobahn in Germany is the first infrastructure project to have been awarded gold certification by the German Sustainable Building Council (DGNB). HOCHTIEF PPP Solutions uses a project-specific methodology here to track and mitigate the potential negative impact of our business activities on biodiversity. Particular attention was paid to the selection of native plant species for an ecological compensation area. New approaches for better observation and evaluation of biodiversity are also being tested on the ground (layer of the mitigation hierarchy: avoidance). The A6 thus serves as a pilot project for the development of innovative ways to mitigate potential negative impacts of our business activities and to apply them at scale in the future.

Target!: Establishment and implementation of long-term initiatives to proactively preserve ecosystems and increase biodiversity

IROs:	Base year:	Target year:	Progress measurement:
Relates to all material im-	n/a	continuous	quarterly, Group-wide,
pacts, opportunities, and			and per operating unit
risks in E4
	Baseline:	Target:	Geographical
	n/a	n/a	boundaries:
			worldwide
	Unit:	Value chain:
	Qualitative
Relation to sustainability	- HOCHTIEF Sustainability Plan 2025
strategy	- HOCHTIEF position paper on biodiversity and ecosystems: Milestone 3
	- Group directive on Occupational Safety, Health, Environmental and Climate Protection.
	- Mitigation hierarchy: All levels (avoidance, reduction, restoration/rehabilitation, and compensation or offsets)

Target-setting methodologies and assumptions:

The target of developing and implementing long-term initiatives to conserve ecosystems and enhance biodiversity is of major importance to HOCHTIEF. Safeguarding high levels of biodiversity helps protect natural habitats and minimize the environmental impact of our projects. Conserving and nurturing ecosystems is essential to the long-term health of the environment and quality of life in affected regions.

For HOCHTIEF, the target means focusing on the sustainable use and development of natural resources. This includes proactively designing projects to respect environmental qualities as well as minimize the impact on flora and fauna. It also involves taking targeted action to conserve existing biodiversity.

A key element in achieving and monitoring the target is carrying out comprehensive biodiversity assessments. These enable us to identify potential environmental impacts early on and take specific action to prevent negative impacts. The effective implementation of these actions also serves as a target achievement indicator. Through close collaboration with experts and project teams, we ensure that our projects incorporate the best possible measures for conserving biodiversity.

We also promote environmentally sustainable practices such as creating green spaces, restoring land, and protecting habitats of particular importance to local flora and fauna. Our aim is to minimize the negative impact of construction activities while making a positive contribution to the preservation of natural habitats.

The target reinforces HOCHTIEF's commitment to environmentally friendly construction and promotes sustainable development that ensures the long-term conservation of biodiversity and natural resources.

Status and trend analysis: In addition to project-specific measures, we also aim to promote long-term activities. These are collated via the Group-wide Biodiversity working group and the in-house reporting and controlling system for dissemination as best practice.

[^0]
[^0]: ${ }^{1} 2024$ excluding portfolio effects from Thiess acquisition

E4-5

Impact metrics related to biodiversity and ecosystems change

In the double materiality assessment as well as in the context of our business activities, thematic areas were identified as material matters for biodiversity in 2024. The resulting metrics for the reporting year are shown below.

HOCHTIEF projects in and near environmentally sensitive areas

	2024 (Reference: SP $2025)^{2}$	2024
Number of projects that are in and near environmentally sensitive areas ${ }^{1}$	52	52
thereof projects with biodiversity management action plan	52	52
Coverage	$100 \%$	$100 \%$
Total area of projects that are in and near environmentally sensitive areas	$19,362^{3}$	$19,362^{3}$

${ }^{1}$ Projects in progress at the end of the reporting year
${ }^{2} 2024$ excluding portfolio effects from Thiess acquisition
${ }^{3}$ The area figure relates to the entire area of the projects included and not just the area within environmentally sensitive areas.

HOCHTIEF projects with direct responsibility for land use change

HOCHTIEF delivers projects for clients worldwide. The client makes the decision to execute a project and generally obtains the official permission for the construction work and hence also the land-use change. This means we have only indirect responsibility in such instances. In a small number of cases, we make the decision to execute a project and thus have direct responsibility for land-use change.

	2024 (Reference: SP $2025)^{1}$	2024
Land-use changes as part of execution of projects for clients (indirect responsibility)	1137	1137
Land-use changes as part of execution of own projects (direct responsibility)	15	15
Total land-use change	1,152	1,152

[^0]
[^0]: ${ }^{1} 2024$ excluding portfolio effects from Thiess acquisition

Notes on ESRS E4 metrics: Methodology and data sources

Transparent and verifiable data collection is critical to making informed judgments about the development of our strategy, actions, and targets in relation to our material impacts. The methodology, underlying assumptions, and data sources used to arrive at the metrics disclosed in this section are thus explained in the following.

Throughout the Group, standardized processes and data collection methods are applied in order to ensure high standards of data quality, consistency, and comparability. All metrics in this section have undergone internal quality assurance, but have not been validated by another external body. Information on the quality assurance of the metrics is provided in the General disclosures section under "Data completeness, reliability, and quality." The operating companies apply the Group-wide data collection hierarchy, which prioritizes primary data.

Metrics in the ESRS E4Biodiversity and ecosystems section

Projects in and near environmentally sensitive areas

Land-use change

Significant assumptions, calculation methodologies, and limitations

This metric records the number of projects located in or near environmentally sensitive areas. Including key biodiversity sensitive areas, it covers projects that may have a negative impact on such areas and their species due to the geographical location, scope, and scale of the activities involved. This also applies to projects near environmentally sensitive areas. A project is considered to be near environmentally sensitive areas if the area concerned or species within the area could be negatively impacted by the siting, scope, or size of the project.

The project area that is located in or near environmentally sensitive areas is based on the total area of the projects and not just the part that is within an environmentally sensitive area.

Responsibility for identifying such projects lies with the operational units. The abovementioned project-specific matters must be assessed on a case-by-case basis, together with relevant statutory provisions and nature conservation lists. Environmentally sensitive areas are identified on the basis of national and international frameworks and nature conservation lists. Under ESRS, these include the following reference sources: Protected Planet, IUCN Red List, BirdLife International, UNESCO World Heritage Sites, Natura 2000 protected areas, and other national legislation.

The metric is based on primary data collected by the operational units and consolidated and reported at Group level.

The number of projects delivered by HOCHTIEF with direct responsibility for land-use change has high data quality as it is recorded and documented on a project-specific basis.

In the case of land-use change for which HOCHTIEF is only indirectly responsible-i.e. in projects executed on behalf of clients-the data is based on estimates. These estimates can vary by project type and are frequently made according to whether the land-use change is classified as greenfield or brownfield (determined by the client). Greenfield projects develop new land, whereas brownfield projects repurpose or rehabilitate existing land. All business activities in the reporting year are covered, including special projects such as projects in the energy sector. Empirical values and information drawn from comparable projects ensure that estimation leads to a reporting basis that is as realistic and consistent as possible.

ESRS E5

Resource use and circular economy

Responsible management of resources

At HOCHTIEF, the circular economy is a key part of our sustainability strategy and our contribution to the transformation toward a resource-efficient economy. As a global provider of infrastructure solutions with activities focused on construction management, infrastructure construction, and a broad range of services, we see this as our responsibility, and as an opportunity, to develop innovative solutions that close the material loop, minimize waste, and optimize the life cycle of our projects. Building infrastructure to serve society takes large quantities of resources.

Extracting, processing, and transporting these resources not only account for a large proportion of HOCHTIEF's greenhouse gas (GHG) emissions (further information in the Climate change section) but can also have negative impacts on sensitive ecosystems (further information in the Water and marine resources and Biodiversity and ecosystems sections). The volumes of waste also affect resource availability, and improper waste disposal can harm the environment. Recognizing the responsibility this entails, HOCHTIEF is committed to transitioning to fully circular business practices. The ability to offer and deliver circular economy solutions is increasingly becoming a key competitive advantage and paves the way for long-term business success. We believe that this transition will only succeed through close collaboration with our stakeholders. This makes it possible to build incentives into the contract award process that have a long-term impact on the entire value chain and are beneficial in both environmental and economic terms for all involved. In this section, we present our circular economy-related policies, actions, and targets geared to establishing sustainable construction practices and, to this end, using our resources with maximum efficiency.

Material impacts

The material impacts were identified in the materiality assessment for 2024 conducted by HOCHTIEF in accordance with the double materiality principle. HOCHTIEF's assets and business activities throughout the value chain were assessed for actual and potential impacts, risks, and opportunities. This process is described in detail in the ESRS 2 General Disclosures section.

Positive impacts (PI)

Resource inflows

ES-PI1 (ly proactively providing our clients with sustainable solutions (ideally in the early stages of a project), we can significantly reduce the resources required for our projects, practice responsible resource management, and thus have a positive impact on resource use and availability.
(actual; entire value chain)

Negative impacts (NI)

ES-NI1 As an international infrastructure group with resource-intensive business activities, HOCHTIEF requires large quantities of resources. This has a negative impact on resource availability if materials are not sourced in a sustainable manner.
(actual; entire value chain)

ES-NI2 The use of potentially large quantities of non-recyclable materials in our projects has a negative impact on efficient resource use.
(actual; entire value chain)

Resource outflows

ES-PI2 Providing our clients with sustainable solutions (ideally in the early stages of a project) maximizes the operational and resource-related efficiency of our projects while minimizing the environmental impact in terms of greenhouse gas emissions and waste-and hence pollution-at all project stages.
(actual; entire value chain)

ES-PI3 HOCHTIEF's activities, for instance, generate resource outflows that have non-recyclable composite materials, which means they are not consistent with the concept of the circular economy and result in non-recyclable waste.
(actual; entire value chain)

ES-PI3 Through innovative digital solutions, life cycle analysis, and the documentation of material use, HOCHTIEF optimizes resource use at the end of the project life cycle (e.g., in dismantling, conversion, and reprocessing).
(actual; entire value chain)

Waste

ES-PI4 HOCHTIEF can establish a wide range of sustainable waste management and handling practices. These include, for example, employee training practices, waste traceability systems, and other measures in line with the waste hierarchy principle to support the circularity model.
(actual; entire value chain)

ES-PI5 Using market incentives, HOCHTIEF can encourage its suppliers and subcontractors to implement circular practices in their business activities.
(actual; entire value chain)

ES-NI4 As an international infrastructure group, HOCHTIEF inherently produces large amounts of waste, which has an adverse effect on circularity.
(actual; entire value chain)

ES-NI5 Poor waste separation practices can reduce recycling opportunities, leading to greater disposal (and potential incineration) of hazardous and non-hazardous waste and accordingly pollution as well as higher GHG-emissions (also see ESRS E1 and ESRS E2).
(actual; entire value chain)

Material opportunities

Opportunities

Resource inflows

E5-01 Circular practices coupled with efficient resource and material use have a positive economic impact on HOCHTIEF's business activities.
(entire value chain)

Resource outflows

E5-02 By providing long-lasting, circular solutions, HOCHTIEF can gain a competitive advantage, reduce operating costs, and maximize resource efficiency.
(entire value chain)

Waste

E5-03 Waste prevention can lead to cost savings, for example, through lower material requirements, low disposal costs, and potential revenue from the sale of separated waste.
(entire value chain)

E5-1

Policies related to resource use and circular economy

Given the great resource needs and substantial waste volumes in the construction industry, resource efficiency and the circular economy are key elements of HOCHTIEF's sustainability strategy. In 2023, the HOCHTIEF position paper on the circular economy was prepared and rolled out for application throughout the Group. The position paper pursues the objectives of increasing resource efficiency, reducing dependence on primary resources, raising the proportion of secondary materials, and promoting life cycle analysis to pave the way for a circular economy by 2045. A key element is an efficient waste management system in line with the waste hierarchy. The position paper covers all business activities and takes account of the entire value chain.

Milestones in the HOCHTIEF circular economy strategy

HOCHTIEF identifies its priority action areas along the waste hierarchy: (a) prevention of waste in the upstream and downstream value chain; (b) preparing for reuse; (c) recycling; (d) other recovery (such as energy recovery); and (e) disposal. Within this, waste avoidance and minimization are prioritized over recycling and other recovery methods. Concepts such as circular design and waste as a resource are likewise considered in the circular economy strategy.

Actions and targets along the waste mitigation hierarchy at HOCHTIEF

Responsibility for operational implementation lies with each operational unit, supported by our international working groups on the circular economy, waste, and (construction) materials. In addition, the circular economy strategy is regularly reviewed for its impact, and suppliers and business partners are encouraged to collaborate in order to establish circular practices throughout the value chain. Implementation of the circular economy strategy is monitored by the Sustainability corporate department, which reports directly to the Executive Board.

By applying this strategy, HOCHTIEF aims to continuously improve resource use and sustainable development throughout the Group and the value chain in line with the identified IROs and the requirements of ESRS-E5. Progress on our circular economy strategy is monitored via our reporting and control system. This tracks material use, waste generation, and recycling rates across the Group on a quarterly basis (further information under E5-4). By means of proactive management and control, we ensure that we achieve our targets and that corrective action is taken early on in the event of deviation. The data collected is incorporated into our annual sustainability report, ensuring transparency in our reporting.

Action areas in our circular economy strategy

Core areas of our circular economy strategy

Information management: In our digitalization activities, we integrate various measures for the transparent digital tracking of materials, suppliers, and deliverables in our business operations. Project life cycle analysis, which is essential to the circular economy, likewise forms part of information management.

Relation to IROs: The provision and use of data together with life cycle analysis improves resource use. At the same time, circular solutions create opportunities for cost reduction and resource use optimization. (IROs: E5-PI3, E5-NI1, E5-O1)

Construction materials: Construction materials and related value chains are central to transitioning to a circular economy and decarbonizing our business activities (for further information, see the Climate change section). Our initiatives include, for instance, alternative materials, recycling, and extending project lifetimes to minimize primary resource use.

• Using sustainable construction materials and promoting recycling reduces resource use and minimizes environmental impact by way of lower GHG emissions. In addition, we reduce negative impacts by using fewer non-recyclable or hard-to-recycle materials inconsistent with circular economy principles. Circular solutions also create opportunities to reduce costs and maximize resource efficiency. (IROs: E5-PI1, E5-PI2, E5-NI2, E5-NI3, E5-O1, E5-O2)

Circular design: Involving HOCHTIEF early on in the project design stage opens the way for significant improvements in resource efficiency and the sustainable use of renewable resources to be made for the project's entire lifetime.

• Circular design makes for greater efficiency in resource utilization, with more sustainable and economic use of materials and lower GHG emissions, which in turn has positive impacts on resource use and availability. At the same time, we minimize the negative impact of requiring large quantities of resources and especially those that are not sourced sustainably. Circular solutions also offer the opportunity to increase economic viability and further optimize resource use. (IROs: E5-PI1, E5-PI2, E5-NI1, E5-O1)

Impact assessment: Assessing our business activities from a circular economy perspective makes it necessary to extend existing impact assessment methods and implement new ones.

• Impact assessment enables the monitoring and optimization of resource use and availability, which improves long-term project efficiency and sustainability. Furthermore, implementing circular solutions, backed by digital life cycle analysis, presents an opportunity to further improve resource use and secure long-term competitive advantages. (IROs: E5-PI3, E5-NI1, E5-O1)

Construction works: It is essential to embed circular practices also in our operational business activities. This is achieved, for instance, through training of employees in our operational processes as well as by proactively offering circular solutions to clients. The choice of construction methods and construction machinery plays a key role here, as these have an impact on the way resources are used on construction sites. Using efficient construction methods and state-of-the-art construction machinery furthers the implementation of sustainable practices and the circular economy transition in the construction sector.

• Implementing circular practices in construction activities optimizes resource use, enhances operational efficiency, and reduces environmental impacts. This is notably achieved by working with our clients from an early stage to incorporate sustainable solutions that reduce GHG emissions as well as material inputs. Employee training and implementing optimized waste management also help to minimize waste. By applying circular solutions and greater focus on long-term efficiency, we aim to prevent the generation of large quantities of waste-which also results in a competitive advantage. (IROs: E5-PI1, E5-PI2, E5-PI3, E5-PI4, E5-NI4, E5-O2)

Waste management: Pending the successful transition to a circular business model, it is vital to implement conscientious and transparent waste management practices in order to ensure resource efficiency and increase secondary resource use. To this end, HOCHTIEF pursues a wide variety of measures that are prioritized in line with the waste hierarchy.

• Efficient waste management, including training and optimized waste separation, can reduce waste volumes and maximize the scope for recycling, which both lowers costs and optimizes resource use. Sorting waste into separate fractions can also lead to cost savings if it can be reused or sold. (IROs: E5-PI4, E5-NI5, E5-NI6, E5-O3)

Operation and maintenance: Specifically for the utilization phase, HOCHTIEF provides circular solutions that can significantly facilitate maintenance and thus extend project lifetimes. In PPP projects especially, continuous monitoring with the aid of Al solutions and specialized sensors alongside preventive maintenance, enable early fault detection and long-term operability.

• Promoting circular solutions in project maintenance and operation extends project lifetimes and enhances resource efficiency, which can create a competitive advantage. By using recyclable components, we close the loop as far as possible and enhance sustainability. At the same time, long-term, circular solutions create opportunities to cut operating costs and further optimize resource use. (IROs: E5-PI5, E5-NI3, E5-O2)

End of life: End-of-life solutions such as material passports are an essential part of the end-to-end, circular approach across all projects. They make it possible to close the material cycle and complete the transition to a circular economy.

• Systematically planning the end-of-life process with the aid of life cycle analysis makes it possible to optimize resource use and reduce waste volumes. In particular, considering the recyclability of construction materials right from the project design phase can significantly reduce the amount of waste generated later on. Circular approaches to material reuse and recycling similarly enable cost savings - for instance, in terms of reduced waste management costs. This helps improve economic viability and resource use. (IROs: E5-PI3, E5-NI2, E5-NI3, E5-O1, E5-O3)

Transparent communication: To successfully transition to a circular economy, it is essential to collaborate closely with our stakeholders. That makes open and transparent communication an integral part of the HOCHTIEF approach. This collaboration is crucial in order to work together on sustainable solutions and successfully achieve a circular economy.

• Transparent communication is key to engaging all relevant stakeholders in the transformation process. This indirectly aids the implementation of all IROs by fostering collaboration and dialogue, which in turn promotes circular practices and resource use.
• A competitive advantage can be gained by clearly and transparently communicating the benefits of circular practices to our stakeholders. (IRO E5-O2)

E5-2 | E5-3

Actions and targets related to resource use and circular economy ${ }^{1,2,3}$

The entire HOCHTIEF Group pursues a range of initiatives and activities to ensure the effective implementation of our strategy. Integral to our circular economy strategy, these are presented in this section in accordance with the Minimum Disclosure Requirements/Actions (ESRS2 MDR-A). The targets needed to measure progress are also reported here, along with the respective actions, in accordance with the Minimum Disclosure Requirements of ESRS2 MDR-T. Alongside these cross-cutting activities, which apply to all of our business activities and geographical operating regions, numerous project-specific initiatives are taken in individual projects. Such approaches are geared to local circumstances (such as location, project type, client needs, and material requirements) and form an integral part of our efforts toward the transition to a circular economy. However, they should not be viewed as Group-wide initiatives.

Action: Life cycle analysis

IROs: Relates to all material	Time horizon: Short-, medium-, and long-term	Value chain:
impacts, opportunities, and		(1) upstream (2) own activities (3) downstream

Relation to sustainability strategy

• HOCHTIEF Sustainability Plan 2025
• HOCHTIEF position paper on circular economy, in particular information management
• All levels of the waste hierarchy
• Group directive on Occupational Safety, Health, Environmental and Climate Protection.

Description of actions

In order for HOCHTIEF to optimally incorporate its expertise in design, construction, operation, maintenance, and finance into its projects in the interests of the circular economy (as well as other material environmental matters) and as agreed with clients and business partners, a detailed, holistic analysis is needed that takes in the entire project life cycle. This makes life cycle analysis (LCA) a fundamental method underlying the use of circular business practices over the entire project life cycle and essential to successfully managing all IROs identified for E5.

• Emission reduction and energy efficiency: LCAs reveal potential for reducing energy consumption while also promoting the incorporation of energy-efficient materials and technologies into construction projects. (E5-PI2)
• Resource efficiency optimization: Using LCAs, HOCHTIEF can precisely document the flow and use of materials and thus reduce primary resource consumption. This supports the strategic objective of efficient resource use and incorporating recyclable materials into the design process.
• Efficient waste management and recycling: LCAs identify potential for waste reduction, hence supporting waste management across the entire waste hierarchy - a core priority for the HOCHTIEF Group. Circular economy principles require waste to be avoided entirely over the long term (further information under E5-2/E5-3).

LCAs are already being used within the Group and there are plans to incorporate this methodology into other projects. Accordingly, targets have been formulated (information under E5-3) in order to actively promote the circular economy in our business activities and significantly reduce greenhouse gas emissions. Furthermore, we proactively offer LCAs to our clients in order to assist them in understanding the environmental impact of their projects and making informed decisions regarding more sustainable solutions. A significant component of our company's sustainability strategy, this sends a clear message within the construction industry for adopting more environment-friendly construction techniques.

Actions implemented in the reporting year

Project

North/West Battery Park City Resiliency Project, Manhattan, New York City, Turner

Outcomes

For the North/West Battery Park City Resiliency Project, Turner conducted a life cycle assessment (LCA) to quantify the carbon footprint of various building components. The carbon footprint was reduced by $16 \%$ compared to the baseline. This demonstrates the effectiveness of the sustainable design strategies applied in the project.

[^0]
[^0]: ${ }^{1}$ All reported targets have been set without environmental thresholds, without being broken out on a company-specific basis, and formulated voluntarily (not on the basis of legal requirements). However, they are mandatory under the HOCHTIEF Sustainability Plan 2025.
${ }^{2}$ Targets and geographical boundaries correspond to the Sustainability Plan 2025 (details under "ESRS 2: General disclosure").
${ }^{3}$ Certain ESRS 2 MDR-T disclosure requirements (79 (a), 79 (e), 80 (f), 80 (g), 80 (h), 80 (i), and 80 (j) are met by disclosures in "ESRS 2: General disclosures".

Target!: Promote life cycle analyses by actively engaging with clients and performing these analyses in at least 200 construction projects by 2025

Target-setting methodologies and assumptions:

The target of performing life cycle assessments (LCAs) on at least 200 construction projects by 2025 marks a major step on the road to promoting sustainable construction practices and the circular economy. For HOCHTIEF, it is particularly important to actively involve our clients in this process in order to jointly develop custom-tailored, resource-efficient solutions and to optimize the efficiency of projects throughout their entire life cycle. The life cycle assessments are based on the recognized ISO 14040/14044 standards, which provide a structured and comprehensive approach to assessing environmental impacts over the entire life cycle of a structure. Applying these standards can bring about significant resource savings and reductions in GHG emissions, considerably improving both the financial and environmental performance of construction projects.

By using life cycle assessments, we can identify the environmental impacts of construction projects at an early stage and make sustainable decisions in terms of material selection, energy consumption, and emissions. This helps reduce GHG emissions and minimize waste, while reducing costs in the long run by optimizing the use of resources. Close collaboration with our clients ensures that the results of life cycle assessments are incorporated into project design and execution so as to maximize resource efficiency and sustainability. Furthermore, the ongoing use of LCAs allows us to build our data repository for future projects and come up with even more precisioned, sustainable solutions.

The target not only strengthens HOCHTIEF's position as a leader in sustainable construction but also promotes a sustainable construction industry driven by nonstop innovation and the pursuit of a circular economy.

Status and trend analysis:

The formerly diverse approaches taken across the Group were standardized in the reporting year. The Circular Economy working group developed and published a directive with a definition and the corresponding requirements and opportunities for action. We proactively offer life cycle assessments (LCAs) as a service to our clients in order to develop sustainable solutions and optimize projects over their entire life cycle. LCAs are a central element of the circular economy and our decarbonization strategy. They not only lead to project-related efficiency gains in terms of energy and materials. In many cases, they also reduce costs. We leverage our expertise in design, construction, operation, and maintenance to improve project execution. Since 2022, LCAs have been conducted for a total of 143 projects across all regions, thus bringing us significantly closer to our target of 200 projects by 2025. These efforts are a key part of our sustainability strategy, which we will continue to actively pursue.

Action: Digitalization and circular design

IROs: E5-PI3, E5-PI5 E5-O1	Time horizon: Short-, medium-, and long-term	Value chain:
		upstream

Relation to sustainability strategy

• HOCHTIEF Sustainability Plan 2025
• HOCHTIEF position paper on circular economy: Information management, circular design, operation and maintenance, impact assessment, construction activities, end of life
• Waste hierarchy: Prevention, preparing for reuse, recycling
• Group directive on Occupational Safety, Health, Environmental and Climate Protection

Description of actions

A key element of our sustainability strategy is the ongoing digitalization of our business activities. This not only improves data availability across the Group but also and above all creates efficiency gains for construction, operation, and disassembly. These efficiency gains have a positive knock-on effect on costs, resource requirements, and environmental impact. In addition to the key areas mentioned below, a role is also played by telematics, digital construction site monitoring, autonomous construction site vehicles, and other-in many cases project-specific-digital solutions.

• Building Information Modeling (BIM) makes it possible to create a digital twin of a project, allowing for the advance simulation and planning of all stages from design and construction to operation, maintenance, and eventual disassembly (and reuse). Notably with regard to maintenance, having precise information on all materials used allows maintenance and repairs to be carried out in a targeted and efficient manner.
• The creation of digital material passports is a prerequisite for efficient reuse of materials and the long-term transition to a fully circular business model. Preventive and modular design as well as component disassembly facilitate material reuse and adaptation. Digital material passports additionally enable us to communicate sustainable solutions transparently to clients, quantify resource-related and financial benefits, and thus maximize our positive influence across all stages of a project.
• Where HOCHTIEF is involved in a project from an early stage, we are able to proactively offer circular practices to clients and in this way incorporate optimized design elements into our projects. Examples include hollow ceilings, modular construction, and rebar alternatives. These can significantly reduce construction and operating costs as well as the associated environmental impacts.

Actions implemented in the reporting year

Project

YEXIO data center, Heiligenhaus, Germany HOCHTIEF PPP Solutions

Outcomes

The YEXIO data center developed by HOCHTIEF in Heiligenhaus prioritizes resource conservation and circular economy. Utilizing timber and other alternative construction materials, the finished building will be carbon-neutral in operation. For instance, HOCHTIEF will feed waste heat from the servers into the local heating network.

Target!: HOCHTIEF has set a target of increasing by at least 10\% a year the share of construction projects in which the use of construction materials is digitally recorded.

Target-setting methodologies and assumptions:

The target of increasing by at least $10 \%$ a year the share of construction projects in which the use of construction materials is digitally recorded marks a key step toward improving material efficiency and promoting the circular economy. Transparent recording and documentation of materials is essential for HOCHTIEF to manage resources sustainably and recycle materials in a closed loop.

Integrating Building Information Modeling (BIM) and digital twins makes for precise, dynamic tracking of construction materials throughout the entire life cycle of a structure. These digital tools support the creation of a digital material passport that stores all material-related information centrally for ready access. As a result, options for future disassembly and reuse can be planned at an early stage and fine-tuned.

Circular design ensures that construction materials are engineered and incorporated into a structure in such a way that they can be easily removed and reused at the end of their useful life. This minimizes material losses, boosts resource efficiency, and cuts down on waste.
Continuously increasing the coverage rate improves data availability for sustainable construction projects, reduces construction costs and environmental impacts, and enhances HOCHTIEF's innovative capacity and competitive edge.

The target underscores HOCHTIEF's commitment to a sustainable construction industry focused on digital innovation, resource efficiency, and the circular economy.

Status and trend analysis: In the reporting year, we enhanced our expertise and strengthened our focus on this topic. Digital recording of key construction materials was carried out in 210 active projects in 2024, marking a substantial increase to 192 projects ( $1,066 \%$ ) in the reporting year compared to the prior year. We have thus achieved our goal for the year. The data collected to calculate our target achievement also includes projects that relate only to individual material groups.

Action: Waste management and recycling

IRQs: E5-PI4, E5-PI5, E5-NI4, E5-NI5, E5-NI6, E5-O3

Relation to sustainability strategy

Time horizon: Short-, medium-, and long-term
$\begin{array}{ll}\text { Value chain: } \ \text { upstream } & \text { own activities } \ \text { downstream }\end{array}$
downstream

• HOCHTIEF Sustainability Plan 2025
• HOCHTIEF position paper on circular economy: Waste management, end of life
• All levels of the waste hierarchy
• Group directive on Occupational Safety, Health, Environmental and Climate Protection

Description of actions

Waste management in line with the waste hierarchy is a central action area when it comes to implementing HOCHTIEF's circular economy strategy. In view of the construction and infrastructure sector's considerable material requirements and waste volumes, the sector has a special responsibility to develop efficient and sustainable solutions. To advance the transition to a circular economy and minimize environmental impacts, HOCHTIEF targets actions geared to the complete elimination of landfilling over the long term (further information under E5-3):

• Avoidance: Wherever we are involved in the design stage of a project early on (for example through life cycle analysis, digital construction methods and circular design), significant volumes of material and hence future quantities of waste can be prevented by designing projects along circular design principles and precisely predicting material requirements. Modular construction methods, avoiding composite materials and, where possible, using existing building fabric are key waste prevention measures that reduce HOCHTIEF's dependence on primary resources.
• Preparing for reuse: Incorporating disassembly and reuse options early on in the design stage with the aid of digital tools such as BIM makes it possible to prepare for the efficient reuse of engineering materials in both the maintenance and disassembly of a project. In addition, systematically monitoring and recording waste volumes across all projects plays a key role in efficient reuse.
• Recycling: HOCHTIEF works on various fronts to continuously raise the waste recycling rate. This first and foremost includes using recyclable materials in the construction phase as well as promoting innovative ideas to recover and reuse the main engineering materials (concrete, asphalt, and steel) from existing projects. In addition, large parts of the building fabric can continue to be used, or directly reused, in refurbishment and upgrading.
• Disposal: Action to ensure the proper and safe disposal of waste as well as to reduce self-generated hazardous waste includes employee training, the use of more environmentally friendly materials, and strict monitoring of disposal processes.

HOCHTIEF regards these activities as key elements in achieving the circular economy targets and a major contribution to the strategic targets under ESRS E5-3. They help reduce our dependence on primary resources, minimize the environmental impacts of our projects, and contribute to a circular, waste-free economy over the long term.

Actions implemented in the reporting year

Project

METRONET Yanchep Rail
Extension, Western Australia, CPB Contractors

Outcomes

In the Yanchep Rail Extension project, CPB reused all excavated material as well as a large proportion of the construction and demolition material. This led to an additional GHG emission reduction.

Target!: Annual waste recycling rate of at least $80 \%$ by 2025 and ongoing increases thereafter

Relation to sustainability strategy

• HOCHTIEF Sustainability Plan 2025
• HOCHTIEF position paper on circular economy: Resource outflows (waste), primarily waste management
• Waste hierarchy: Prevention, preparing for reuse, recycling
• Group directive on Occupational Safety, Health, Environmental and Climate Protection

Target-setting methodologies and assumptions:

The target of increasing the reuse and recycling rate to at least $80 \%$ is an important goal that makes a key contribution to promoting the circular economy. It is especially important to HOCHTIEF because construction and demolition waste accounts for a significant share of total waste.

Consistently reusing and recycling materials means less demand for primary resources, cuts down on landfilling, and reduces the related GHG emissions. The target also helps reduce costs, as less material is disposed of and precious resources are kept in the loop.

A gradual increase in the recycling rate beyond 2025 promotes the long-term vision of a sustainable construction industry with closed material cycles. Focusing on these goals not only improves the company's environmental footprint but also enhances its competitiveness and innovating capacity with regard to resource-conserving construction practices.

Status and trend analysis:

The annual target was met with a waste recycling rate (including reuse) of $83 \%$ in the reporting year. The scope for recycling is highly dependent on the nature of the project, regional circumstances, and also the terms and conditions of contract. The recycling rate was slightly lower in the reporting year than in 2023 as a number of large tunnel projects that made for a very high recycling rate were completed in 2024.

Target!: Reduce self-generated hazardous waste to less than $1 \%$ of total waste by 2030

Target-setting methodologies and assumptions:

The target of reducing the volume of self-generated hazardous waste to below 1\% of total waste is an important step toward sustainable waste management, contributing significantly to responsible resource use and environmental protection. For HOCHTIEF, which works with large quantities of materials in its business activities, minimizing hazardous waste is especially important because the substances concerned pose substantial environmental and health risks. By focusing on the self-generated hazardous waste, HOCHTIEF can directly influence the reduction achieved by using sustainable building materials, deploying innovative construction methods, and applying strict safety and
disposal policies. Less hazardous waste means lower disposal costs, reduced liability risks, and better environmental performance. Setting and consistently implementing ambitious reduction targets not only supports the circular economy but also reinforces the company's position as a sustainable and responsible player in the construction industry.

Status and trend analysis: Self-generated hazardous waste accounted for $0.3 \%$ of total waste in the reporting year. This means we have significantly outperformed our long-term target (1\%).

Target!: Zero landfilling of waste by 2045

Target-setting methodologies and assumptions:

The target of zero landfilling of waste by 2045 is a key step toward a functioning circular economy. A zero-waste construction industry not only cuts demand for natural resources but also minimizes the GHG emissions related to the extraction, processing, and disposal of construction materials. By fully utilizing and recycling resources, valuable materials remain in the economic cycle, thus reducing costs and environmental impacts over the long term. For HOCHTIEF, this means systematically refining strategies to raise material efficiency and establish closed material cycles. The target also prevents important materials and resources from being lost to the material cycle.

Status and trend analysis:

In the reporting year, a total of $8,623,856$ of waste was generated. Extensive measures within the projects and the exchange within the international working group on waste have led to the reuse of large quantities of waste-a total of $7,184,122$ metric tons.. Based on these facts and our action taken, we expect that the quantities of waste re-used will continue to increase in the future, which will result in less and less waste being sent to landfill. In the reporting year, $1,429,111$ metric tons of waste went to landfill. We anticipate being able to further reduce the amount of waste sent to landfill in the next few years, although this also depends on the type of project and local conditions. Our long-term goal remains to reduce landfill waste to zero by 2045.

Action; Use of recycled construction materials

IROs: E5-PI1, E5-PI2, E5-NI1, E5-NI2, E5-NI3, E5-NI4, E5-O1	Time horizon: Short-, medium-, and long-term	Value chain: upstream own activities downstream
Relation to sustainability strategy	- HOCHTIEF Sustainability Plan 2025 - HOCHTIEF position paper on circular economy: Construction materials, waste management - Waste hierarchy: Prevention, preparing for reuse, recycling - Group directive on Occupational Safety, Health, Environmental and Climate Protection

Description of actions

• Minimizing dependence on primary resources: Recycled construction materials help us reduce our dependence on primary resources, whose extraction is frequently energy-intensive and harmful to the environment. (E5-PI1, E5-PI2, E5-NI1)
• Increasing the rate of use of secondary resources directly enhances our resource efficiency and minimizes our waste volumes, as materials from existing structures can be used for new projects. (E5-NI2, E5-NI3, E5-NI4)

Reusing construction materials enables us to reduce waste and greenhouse gas emissions while at the same time helping us to create closed material cycles. In addition, increased use of recycled materials can generate both economic and environmental benefits. (E5-O1)

Actions implemented in the reporting year

Project

Tseung Kwan O-Lam Tin Tunnel project, Hong Kong, Leighton Asia

Outcomes

The award-winning Tseung Kwan O-Lam Tin Tunnel project made a major contribution to the circular economy and emissions reduction. The use of recycled asphalt and the reuse of all excavated material made a significant contribution to reducing greenhouse gas emissions.

Target!: HOCHTIEF aims to continuously increase the proportion of reused and recycled construction materials in our projects

IROs:	Base year:	Target year:	Progress measurement:
E5-PI1, E5-PI2, E5-O1	2021	continuous	quarterly, Group-wide, and per operating unit
	Baseline:	Target:	Geographical
	N/A	Higher than baseline	boundaries: worldwide
	Unit:	Value chain:
	relative (\%)	upstream	own activities

Relation to sustainability strategy

• HOCHTIEF Sustainability Plan 2025
• HOCHTIEF position paper on circular economy: Resource inflows-in particular, minimizing primary resources and increasing the circular material use rate
• Waste hierarchy: Prevention, recycling
• Group directive on Occupational Safety, Health, Environmental and Climate Protection

Target-setting methodologies and assumptions:

Increased use of recycled construction materials will significantly reduce resources consumption/construction materials and GHG emissions while also avoiding waste. This has both environmental and economic benefits. Increasing the construction material recycling rate is hence an important step toward the long-term goal of a circular economy.

Status and trend analysis: We made good progress and achieved high recycling rates during the reporting year, with increases in the recycling rate notably for the most frequently used construction materials-steel, asphalt, and concrete. The recycling rate for construction materials rose to $81 \%$ for steel, $37 \%$ for concrete and $45 \%$ for asphalt.

E5-4

Resource inflows

In line with sectoral requirements and the material impacts, risks, and opportunities for our company, the HOCHTIEF Group's main resource impacts relate to the construction materials used in our projects. These materials are mostly used in the construction phase and in some cases for maintenance work during the operating period of our projects.

Our activities and the upstream value chain chiefly involve the use of construction materials such as concrete, steel, asphalt, cement, glass, and timber. Other material resource inflows comprise the use of water and energy in our own business activities and along our value chain. These matters are covered in detail in the Climate change and Water and marine resources sections.

We aim for high recycling and reuse rates to optimize the use of our resource inflows while minimizing waste. Our ongoing efforts in relation to the circular economy help increase the proportion of recycled materials in our projects.

Technical and biological materials used in the HOCHTIEF Group

	$\begin{gathered} 2024 \text { (I) } \ \text { (Reference: SP } \ 2025 \text { ) } \end{gathered}$	2024 (I)	Of which recycled	Share of total weight
Technical materials	15,067,254	15,067,254		99\%
Asphalt	2,119,068	2,119,068
of which recycled asphalt	949,342	949,342	$45 \%$
Concrete	9,825,628	9,825,628
of which recycled concrete	3,664,959	3,664,959	$37 \%$
Glass	14,868	14,868
of which recycled glass	2,483	2,483	$17 \%$
Steel	543,133	543,133
of which recycled steel	438,851	438,851	$81 \%$
Cement	239,168	239,168
of which recycled cement	4,066	4,066	$2 \%$
Aggregates	2,325,389	2,325,389
of which recycled aggregates	276,721	276,721	$12 \%$
Biological materials	92,032	92,032		1\%
Timber ${ }^{2}$	92,032	92,032
of which recycled timber	4,602	4,602	$5 \%$
Total weight of technical and biological materials	15,159,286	15,159,286
thereof total weight of recyceled technical and biological materials	5,341,024	5,341,024		$35 \%$

${ }^{1} 2024$ excluding portfolio effects from Thiess acquisition
${ }^{2}$ Of the total amount of timber used in the 2024 reporting year, $1.3 \%$ is FSC-certified. CSA, PEFC and other forestry certification schemes accounted for less than $1 \%$.

E5-5

Resource outflows

The HOCHTIEF Group focuses on integrating circular economy principles into its projects. The main resource outflows relate to projects in the Group's various business activities. Within this, the scope of activities varies according to the contractual agreement. This ranges from construction-only contracts with limited influence on material and waste management to projects involving full responsibility for design, material selection and quality, and complete resource management.

In the HOCHTIEF Group's business activities, particular attention is paid to circular economy factors in project design. According to the project type, contract type, scope, and client requirements, factors considered include durability, reusability, capacity for disassembly, remanufacturing, recyclability, and optimized resource use.

At HOCHTIEF, we aim to deliver construction projects that stand the test of time. The durability of our projects is a key part of our approach in contributing to sustainable development. Durability primarily depends on the requirements and decisions of our clients as well as on the technical standards specified in collaboration with them. The type of contractual agreement, the business partnerships as well as the legal and environmental requirements also play a role. For greenhouse gas reporting in accordance with ESRS E1, construction and infrastructure projects are estimated to have an average lifetime of 60 years.

With regard to recyclability, as with durability, a number of different factors affect the proportion of recycled materials. This is influenced by knowledge from completed projects, technical specifications, client decisions as well as applicable legal and environmental requirements. We fundamentally aim for continuous improvement in this regard. This calls for advanced technologies that we are actively working to fine-tune.

Waste

Waste generation in the HOCHTIEF Group

	2024 (Reference: SP 2025)	2024
Total amount of waste generated (t)	$8,623,856$	8,653,089
Recycling rate	$83 \%$	$83 \%$
Total amount of non-recycled waste (t)	$1,429,110$	$1,455,875 \%$
Share of non-recycled waste in the total amount of waste generated (\%)	$17 \%$	$17 \%$

${ }^{\dagger} 2024$ excluding portfolio effects from Thess acquisition

Waste generation by recovery operation and waste treatment in the HOCHTIEF Group

	2024 (Reference: SP 2025)	2024
Hazardous waste ${ }^{\dagger}$ (t)	153,237	165,989
Recovery operations (t)	21,656	21,656
Preparation for reuse	7,868	7,868
Recycling	13,788	13,788
Other recovery operations (composting)	0	0
Disposal operations (t)	131,581	144,333
Incineration (with energy recovery)	525	525
Incineration (without energy recovery)	47	47
Landfilling	131,010	143,762

	2024 (Reference: SP 2025)	2024
Non-hazardous waste (t)	8,470,619	8,487,100
Recovery operations (t)	7,162,467	7,164,953
Preparation for reuse	1,945,572	1,945,572
Recycling	5,215,932	5,218,418
Composting	963	963
Disposal operations (t)	1,308,152	1,322,147
Incineration (with energy recovery)	8,672	8,672
Incineration (without energy recovery)	1,380	1,380
Landfilling	1,298,101	1,312,095

${ }^{1}$ In the 2024 reporting year, 36,634 metric tons (23,691 metric tons comparable to the Sustainability Plan 2025) of hazardous waste was generated by our own activities, corresponding to less than $1 \%$ of total waste
${ }^{2} 2024$ excluding portfolio effects from Thiess acquisition

Waste streams in the HOCHTIEF Group

	2024 (Reference: SP 2025)	2024
Hazardous waste (t)	153,237	165,989
Construction waste	3,114	3,114
Waste from earthworks	100,198	100,198
Demolition waste	3,135	3,135
Other waste	46,789	59,541
Non-hazardous waste (t)	8,470,619	8,487,100
Construction waste	551,001	551,001
Waste from earthworks	6,223,164	6,223,164
Demolition waste	824,857	824,857
Other waste	871,596	888,078

${ }^{1} 2024$ excluding portfolio effects from Thiess acquisition

Number of project life-cycle analyses carried out within the HOCHTIEF Group ${ }^{1}$

	2024 (Reference: SP 2025)	2024
HOCHTIEF Group ${ }^{2}$	143	$143^{3}$

${ }^{1}$ Cumulative number of projects for which life-cycle analyses have been conducted (since 2022)
${ }^{2} 2024$ excluding portfolio effects from Thiess acquisition
${ }^{3}$ In the 2024 reporting year, life cycle analyses were carried out for 45 projects. 2024 excluding portfolio effects from Thiess acquisition

Number of projects within the HOCHTIEF Group with digital recording of construction materials used ${ }^{1}$

	2024 (Reference: SP 2025)	2024
HOCHTIEF Group ${ }^{2}$	243	$243^{3}$

[^0]
[^0]: ${ }^{1} 2024$ excluding portfolio effects from Thiess acquisition
${ }^{2}$ Construction materials digitally recorded in 210 projects in the 2024 reporting year
${ }^{3}$ Cumulative number of projects in which the use of construction materials has been digitally recorded (since 2022)

Notes on ESRS E5 metrics: Methodology and data sources

Transparent and verifiable data collection is critical to making informed judgments about the development of our strategy, actions, and targets in relation to our material impacts. The methodology, underlying assumptions, and data sources used to arrive at the metrics disclosed in this section are thus explained in the following.

Throughout the Group, standardized processes and data collection methods are applied in order to ensure high standards of data quality, consistency, and comparability. All metrics in this section have undergone internal quality assurance, but have not been validated by another external body.

Information on the quality assurance of the metrics is provided in the General disclosures section under "Data completeness, reliability, and quality." The operating companies apply the Group-wide data collection hierarchy, which prioritizes primary data.

Metrics in the ESRS ES- Circular economy and resource use section	Significant assumptions, calculation methodologies, and limitations
Resource inflows Technical materials	The main technical resource inflows in our business activities by consumption volume are steel, concrete, cement, asphalt, aggregates, and glass. Consumption data on steel, cement, asphalt, and aggregates is recorded in metric tons $(t)$, while consumption data on concrete is recorded in cubic meters $\left(m^{3}\right)$ and converted into metric tons using a Group-wide conversion factor of $2.5 \mathrm{t} / \mathrm{m}^{3}$. With the exception of the consumption data for glass, this metric is largely based on primary data, with precise quality assurance ensured by checking delivery notes, invoices, and quantities purchased. Quantifying glass is harder and sometimes requires estimates as glass is frequently supplied piecewise, which means that primary data can be reported only to a limited extent. Consumption data for glass is hence based on estimates from procurement volumes. The recycled quantities of technical materials as resource inflows are recorded, where available, on the basis of actual quantities recycled. If this information is not available, the recycled quantities are based on industrial averages. Quality assurance of consumption data at all data collection levels and Group-wide data consolidation ensure that there is no double counting and that consumption volumes are recorded accurately.
Resource inflows Biological materials	Based on the volume consumed, timber is the one material biological resource inflow in our business activities. Timber consumption data is recorded in cubic meters ( $\mathrm{m}^{3}$ ) and is largely based on primary data, with precise quality assurance ensured by checking delivery notes, invoices, and quantities purchased. Consumption data is recorded in cubic meters ( $\mathrm{m}^{3}$ ) and converted into metric tons using a Group-wide conversion factor of $0.5 \mathrm{t} / \mathrm{m}^{3}$. The recycled quantities of timber as resource inflows are recorded, where available, on the basis of actual quantities recycled. If this information is not available, the recycled quantities are based on industrial averages. Consumption volumes of certified timber are recorded using the same methodology. Various certification systems are used. In line with the cascading principle under ESRS, the aim is to use timber as efficiently and sustainably as possible Group-wide. This includes promoting the reuse and recycling of timber in order to generally extend its life cycle. Quality assurance of consumption data at all data collection levels and Group-wide data consolidation ensure that there is no double counting and that consumption volumes are recorded accurately.

Metrics in the ESRS ES- Circular economy and resource use section	Significant assumptions, calculation methodologies, and limitations
Waste generated total amount	Group-wide waste generation is largely recorded on the basis of primary data. This includes delivery notes, invoices, procurement volumes, and disposal volumes. As weighing slips are frequently available, consumption quantities can also be precisely recorded and reported in metric tons (t). This applies to both hazardous and non-hazardous waste.
Hazardous waste	Hazardous waste is classified using clearly defined criteria. National regulations are followed to ensure consistent and compliant classification throughout the Group.
Recovery operations	The main recovery operation types at HOCHTIEF for the purposes of ESRS are recycling, preparation for reuse, and, to a lesser extent, composting.
Waste treatment	Information on the waste recovery operations used is collected on a project-specific basis and is thus largely based on primary data. Where subsequent waste management is performed by waste management contractors, the information is likewise largely based on primary data from the contractors.
Waste treatment	The main waste treatment types at HOCHTIEF for the purposes of ESRS are incineration with energy recovery, incineration without energy recovery, and landfill.
Waste streams	Information on the waste management methods used is largely based on primary data from waste management contractors engaged by the operational units.
Waste recycling rate	The waste recycling rate is based on Group-level calculation of reused and recycled waste as a percentage of total waste generated. This metric is key indicator of waste recycling and waste reuse efficiency in the Group and thus tracks our progress in sustainable resource management and the reduction of waste sent to landfill.
Number of projects in which life cycle assessments performed	The number of life cycle assessments (LCAs) has high data quality as it is recorded and documented per operational unit on a project-specific basis. The number of LCAs performed is then consolidated and reported as a total figure at Group level.
Digital recording of construction materials	The number of projects with digital recording of construction materials has high data quality as it is recorded and documented by the operational units on a project-specific basis.

Disclosures pursuant to Article 8 of Regulation (EU) 2020/852 (Taxonomy Regulation)

Context and introduction

The European Commission aims to channel more capital into sustainable economic activities with a targeted action plan. The EU Taxonomy Regulation represents an important building block of this action plan and is intended to play a significant role in helping Europe achieve its goal of climate neutrality by 2050 and the objectives of the Green Deal, EU's green growth strategy. It has introduced a uniform EU-wide classification system for environmentally sustainable economic activities together with corresponding disclosure obligations.

The EU Taxonomy comprises six environmental objectives to identify environmentally sustainable activities:

1. Climate change mitigation (CCM)
2. Climate change adaptation (CCA)
3. The sustainable use and protection of water and marine resources (WTR)
4. The transition to a circular economy (CE)
5. Pollution prevention and control (PPC)
6. The protection and restoration of biodiversity and ecosystems (BIO)

An economic activity is considered environmentally sustainable within the meaning of the EU Taxonomy Regulation if it:

• contributes substantially to one or more environmental objectives;
• does not significantly harm (DNSH) any of the above-mentioned environmental objectives;
• is carried out in compliance with minimum social safeguards for, among other areas, occupational safety and human rights; and
• complies with technical screening criteria established by the European Commission for each environmental objective and activity.

In the Group Report 2024, HOCHTIEF reports for the first time on the percentages of taxonomy-eligible and taxonomy-aligned economic activities in accordance with the European Commission's requirements for all six environmental objectives. In line with the legal requirements applicable in 2023, taxonomy-alignment was assessed in the prior year for the first two environmental objectives (CCM and CCA), while taxonomy-eligibility was assesed for all six environmental objectives.

HOCHTIEF's approach

The screening of EU Taxonomy requirements is undertaken by the HOCHTIEF Group companies on a project level. Projects' information is obtained directly from the internal project management systems. Based on the different criteria applicable for the identified taxonomy-eligible economic activities, HOCHTIEF Group companies evaluate the taxonomy-alignment of their respective projects.

Taxonomy-eligibility analysis

To identify taxonomy-eligible activities, each HOCHTIEF activity is checked against the requirements of the EU Taxonomy. Specifically, HOCHTIEF business activities that meet one of the activity descriptions listed in the delegated acts of the EU Taxonomy are considered as taxonomy-eligible. Conversely, if an activity is not covered by the regulations or does not meet the descriptions for activities defined by the European Commission, it is considered as taxonomy-non-eligible.

Double-counting is avoided by assignment to one single activity. The economic activities identified are divided into "taxonomy-eligible", "eligible-to-be-enabling" ("E"), and "eligible-to-be-transitional activities" ("T").

Taxonomy-alignment analysis

HOCHTIEF's identified taxonomy-eligible activities are then assessed for taxonomy-alignment taking into account the technical screening criteria.

As in previous years, taxonomy-alignment is assessed at project level using a digital solution developed by HOCHTIEF's innovation company, Nexplore, where the technical screening process is transposed into specific taxonomy questionnaires for each economic activity. This enables users in Group companies to carry out the verification of the EU Taxonomy standards for their respective projects. For each project, the tool guides the user through activity-specific questionnaires, based on the technical screening criteria covering the substantial contribution and DNSH screening, in order to obtain feedback on whether a project meets all regulatory requirements from the EU and can therefore be counted as taxonomy-aligned. Additionally, supporting documentation and evidences for the questionnaires are uploaded to the tool and centrally archived. The tool is used also for the internal validation and confirmation processes. The minimum social safeguards are also formulated throughout the questionnaires. A confirmation of company policies is mandatory, which includes the HOCHTIEF Code of Conduct and Code of Conduct for Business Partners, HOCHTIEF's Human Rights Corporate Management System, and other directives - for example Group Directives on Anti-Bribery, Anti-Discrimination, Anti-Harassment and Anti-Bullying or Taxes. (Please find more information on these topics in the Own workforce and Governance sections.)

After completing the taxonomy screening for a Group company, the tool produces a report listing taxonomyaligned projects and activities as well as the environmental objectives to which they make a substantial contribution.

Interpretations and definitions are centrally coordinated by HOCHTIEF Corporate Headquarters. These are based, among others, on the clarifications provided by the Technical Expert Group (TEG) on sustainable finance, the technical annexes to the final report on the EU-Taxonomy, and the "Frequently asked questions" published by the European Commission, which are also incorporated into the tool.

KPI calculation and results

For 2024, HOCHTIEF reports on the proportion of revenues, capital expenditure (CapEx), and operating expenditure (OpEx) associated with taxonomy-eligible and taxonomy-non-eligible economic activities as well as taxono-my-aligned and not taxonomy-aligned activities. All six environmental objectives are included. As the taxonomyalignment assessment for the prior year related solely to the environmental objectives CCM and CCA, prior-year comparative figures for taxonomy-aligned economic activities are only stated for these objectives.

These key performance indicators (KPIs) were determined for 2024 using the same methodology as in 2023. However, there are contentwise changes due to new requirements and regulatory guidance in the taxonomy-eligibility and taxonomy-alignment analysis at HOCHTIEF as well as an acquisition which have an impact on the 2024 KPIs. On the one hand, implementing all six environmental objectives has increased the number of economic activities which are in scope of the taxonomy-alignment analysis. On the other hand, the latest clarifications published by the EU Commission in the Draft Commission Notice of November 29, 2024 have a considerable negative impact on the taxonomy-eligible KPIs for 2024. As a result of this, HOCHTIEF is no longer able to consider its road-related activities as taxonomy-eligible under CCM/CCA 6.15 (respective taxonomy-eligible revenues in 2023: EUR 3.66 billion). Furthermore, from the second quarter 2024 onwards, Thiess is fully consolidated in the HOCHTIEF Group and therefore also included in the taxonomy-eligibility and taxonomy-alignment analysis (further information on Thiess is provided here). As most activities of Thiess are mining related and as such tax-onomy-non-eligible, HOCHTIEF's taxonomy-eligible and taxonomy-aligned KPIs for 2024 are lower compared to the previous year.

The KPIs are directly allocated to individual projects which, in turn, are allocated to individual activities. The allocation to economic activities follows an analysis based on Group-wide accounting under IFRS 15, as stipulated in the European Commission Notice C/2023/305. IFRS 15 sets out criteria for the recognition of revenue on the basis of the performance obligations satisfied by the reporting entity, including cases in which multiple performance obligations constitute one single bundle to which revenue is entirely allocated. Those IFRS 15 criteria are

to be followed to determine how to allocate revenues to different economic activities when multiple performance obligations are satisfied for the same customer or group of customers. In this respect, the overall project can consist of individual project elements, such as small road sections in connection with our railway projects, engineering services in the construction preparation phase or smaller technical installations in construction projects. These project elements certainly might also fulfill individual taxonomy criteria, but the direct allocation is only possible if a project is composed of individual performance obligations or several definable sub-projects. The allocation of the revenues from these HOCHTIEF activities to different economic activities under the EU Taxonomy follows the analysis that has been made in the consolidated financial statements in accordance with IFRS 15, i.e. depending on whether the goods and services are distinct or not. If the goods and services are distinct, the revenue is split into and allocated to the corresponding, underlying economic activities.

Revenues are defined for this purpose as net sales according to IFRS, as reported in the Consolidated Statement of Earnings, and hence relate only to fully consolidated entities and joint operations. This means that entities accounted for using the equity method or as investments recognized in other comprehensive income are not included. The proportion of revenues accounted for by taxonomy-eligible and taxonomy-aligned economic activities is reported in this connection in relation to the sales figures in the Consolidated Statement of Earnings (column (3) in the tables below). Further information on those sales figures is provided in the Notes to the Consolidated Statement of Earnings (Sales). CapEx is calculated on a gross basis, excluding remeasurements, depreciation, amortization, or impairments. It includes expenditure on non-current intangible or tangible assets, including assets acquired as part of asset deals or share deals, as shown in the Consolidated Balance Sheet. For further information on CapEx, please see the Notes to the Consolidated Balance Sheet (Intangible assets, Property, plant and equipment, investment properties, and Lease liabilities). The proportion of CapEx is calculated as the part of CapEx derived from taxonomy-eligible and taxonomy-aligned activities, divided by total CapEx. In this calculation, the considered capital expenditures are not part of a CapEx plan. OpEx comprises non-capitalizable expenses recognized in the Consolidated Statement of Earnings, such as research and development, building renovation measures, short-term leasing, maintenance and repair, and all other direct expenses from the maintenance of property, plant and equipment to ensure operational readiness of taxonomy-eligible and taxonomyaligned assets. Further information on OpEx is provided in the Notes to the Consolidated Financial Statements (Other operating expenses, Lease liabilities). OpEx ratios are determined by dividing identified EU Taxonomy-related OpEx by total OpEx.

When calculating the reported taxonomy-eligible and taxonomy-aligned proportion of revenues, CapEx and OpEx, the respective KPI for taxonomy-eligible and taxonomy-aligned economic activities is divided by total revenue, CapEx and OpEx, respectively (column (4) in the tables below).

The KPIs are determined by the HOCHTIEF Group companies at project level. Following the assessment for taxonomy-eligible and taxonomy-aligned projects, the Group companies have gathered related information using the ERP systems that document all revenues, CapEx and OpEx for projects. Determined taxonomy-related KPIs and activities are aggregated at HOCHTIEF Group level.

The tables below show the percentage shares of taxonomy-eligible and taxonomy-non-eligible economic activities, including taxonomy-aligned and not taxonomy-aligned activities, by revenue, CapEx, and OpEx.

Proportion of revenue from products and services associated with taxonomy-aligned economic activities - disclosure covering fiscal year 2024

Economic activities (1)	2024			Substantial contribution criteria
	Code	Revenues	Proportion of revenues	Climate change mitigation	Climate change adaptation	Water and income reavivise	Polution	Circular economy	Biodiversity and ecoty- stems
		(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)
		EUR million	\%	$\begin{gathered} \text { Y; N; } \ \text { N/EL } \end{gathered}$	$\begin{gathered} \text { Y; N; } \ \text { N/EL } \end{gathered}$	$\begin{gathered} \text { Y; N; } \ \text { N/EL } \end{gathered}$	$\begin{gathered} \text { Y; N; } \ \text { N/EL } \end{gathered}$	$\begin{gathered} \text { Y; N; } \ \text { N/EL } \end{gathered}$	$\begin{gathered} \text { Y; N; } \ \text { N/EL } \end{gathered}$
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (taxonomy-aligned)
Electricity generation using solar photovoltaic technology	CCM 4.1	8.83	$0.0 \%$	$Y$	N/EL	N/EL	N/EL	N/EL	N/EL
Electricity generation from hydropower	CCM 4.5	39.06	$0.1 \%$	$Y$	N/EL	N/EL	N/EL	N/EL	N/EL
Transmission and distribution of electricity	CCM 4.9	95.84	$0.3 \%$	$Y$	N/EL	N/EL	N/EL	N/EL	N/EL
Storage of electricity	CCM 4.10	54.09	$0.2 \%$	$Y$	N/EL	N/EL	N/EL	N/EL	N/EL
Construction, extension and operation of water collection, treatment and supply systems	CCM 5.1	55.61	$0.2 \%$	$Y$	N/EL	N/EL	N/EL	N/EL	N/EL
Construction, extension and operation of water collection, treatment and supply systems	CCA 5.1	-	-	-	-	-	-	-	-
Renewal of water collection, treatment and supply systems	CCA 5.2	-	-	-	-	-	-	-	-
Infrastructure for personal mobility, cycle logistics	CCM 6.13	58.49	$0.2 \%$	$Y$	N/EL	N/EL	N/EL	N/EL	N/EL
Infrastructure for rail transport	CCM 6.14	1,316.08	$3.9 \%$	$Y$	N/EL	N/EL	N/EL	N/EL	N/EL
Construction of new buildings	CCM 7.1	483.91	$1.5 \%$	$Y$	N/EL	N/EL	N/EL	N	N/EL
Construction of new buildings	CCA 7.1	-	-	-	-	-	-	-	-
Renovation of existing buildings	CCM 7.2	208.25	$0.6 \%$	$Y$	N/EL	N/EL	N/EL	N	N/EL
Flood risk prevention and protection infrastructure	CCA 14.2	14.51	$0.0 \%$	N/EL	$Y$	N/EL	N/EL	N/EL	N/EL
Revenues of environmentally sustainable activities (taxonomy-aligned) (A.1)		2,334.67	7.0\%	7.0\%	0.0\%	-	-	-	-
- of which enabling		1,539.01	$4.6 \%$	$4.6 \%$	$0.0 \%$	-	-	-	-
- of which transitional		208.25	$0.6 \%$	$0.6 \%$

A.2. Taxonomy-eligible but not environmentally sustainable activities (not taxonomy-aligned activities)

Economic activities (1)	DNSH criteria (Does Not Significantly Harm)
	Climate change mitigation	Climate change adaptation	Water and marine resources	Circular economy	Pollution	Biodiversity and ecosystems	Minimum safeguards	Proportion of Taxonomyaligned (A.1.) or eligible (A.2.) revenues 2023	Category (enabling activity)	Category (transitional activity)
	(11)	(12)	(13)	(14)	(15)	(16)	(17)	(18)	(19)	(20)
	Y/N	Y/N	Y/N	Y/N	Y/N	Y/N	Y/N	\%	E	T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (taxonomy-aligned)
Electricity generation using solar photovoltaic technology	Y	Y	Y	Y	Y	Y	Y	0.4\%
Electricity generation from hydropower	Y	Y	Y	Y	Y	Y	Y	0.6\%
Transmission and distribution of electricity	Y	Y	Y	Y	Y	Y	Y	0.1\%	E
Storage of electricity	Y	Y	Y	Y	Y	Y	Y	-	E
Construction, extension and operation of water collection, treatment and supply systems	Y	Y	Y	Y	Y	Y	Y	-
Construction, extension and operation of water collection, treatment and supply systems	-	-	-	-	-	-	-	0.3\%
Renewal of water collection, treatment and supply systems	-	-	-	-	-	-	-	0.0\%
Infrastructure for personal mobility, cycle logistics	Y	Y	Y	Y	Y	Y	Y	0.1\%	E
Infrastructure for rail transport	Y	Y	Y	Y	Y	Y	Y	6.6\%	E
Construction of new buildings	Y	Y	Y	Y	Y	Y	Y	1.1\%
Construction of new buildings	-	-	-	-	-	-	-	0.1\%
Renovation of existing buildings	Y	Y	Y	Y	Y	Y	Y	0.6\%		T
Flood risk prevention and protection infrastructure	Y	Y	Y	Y	Y	Y	Y	0.1\%	E
Revenues of environmentally sustainable activities (taxonomy-aligned) (A.1)	Y	Y	Y	Y	Y	Y	Y	10.0\%
- of which enabling	Y	Y	Y	Y	Y	Y	Y	6.9\%	E
- of which transitional	Y	Y	Y	Y	Y	Y	Y	0.6\%		T
A.2. Taxonomy-eligible but not environmentally sustainable activities (not taxonomy-aligned activities)
Electricity generation using solar photovoltaic technology								0.0\%
Electricity generation from wind power								0.0\%
Electricity generation from hydropower								0.0\%
Transmission and distribution of electricity								0.4\%
Storage of electricity								0.3\%
Electricity generation from fossil gaseous fuels								0.5\%
Construction, extension and operation of water collection, treatment and supply systems								0.6\%
Renewal of water collection, treatment and supply systems								-
Construction, extension and operation of waste water collection and treatment								0.0\%
Infrastructure for personal mobility, cycle logistics								0.1\%
Infrastructure for rail transport								2.9\%
Infrastructure enabling low-carbon road transport and public transport								13.2\%
Infrastructure enabling low-carbon water transport								0.0\%
Low-carbon airport infrastructure								1.0\%
Construction of new buildings								49.9\%
Renovation of existing buildings								11.0\%
Installation, maintenance and repair of energy efficiency equipment								-
Professional services related to energy performance of buildings								0.1\%
Flood risk prevention and protection infrastructure								0.0\%
Remediation of contaminated sites and areas								-
Revenues of taxonomy-eligible but not environmentally sustainable activities (not taxonomy-aligned activities) (A.2)								80.0\%
Revenues of taxonomy-eligible activities (A.1 + A.2)

Proportion of CapEx from products and services associated with taxonomy-aligned economic activities - disclosure covering fiscal year 2024

Economic activities (1)	2024			Substantial contribution criteria
	Code	CapEx	Proportion of CapEx	Climate change mitigation	Climate change adaptation	Water and marine resources	Pollution	Circular economy	Biodiversity and ecoty- stems
		(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)
		EUR million	\%	$Y ; N$	$Y ; N$	$\begin{gathered} \mathrm{Y} ; \mathrm{N} ; \ \mathrm{N} / \mathrm{EL} \end{gathered}$	$\begin{gathered} \mathrm{Y} ; \mathrm{N} ; \ \mathrm{N} / \mathrm{EL} \end{gathered}$	$\begin{gathered} \mathrm{Y} ; \mathrm{N} ; \ \mathrm{N} / \mathrm{EL} \end{gathered}$	$\begin{gathered} \mathrm{Y} ; \mathrm{N} ; \ \mathrm{N} / \mathrm{EL} \end{gathered}$
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (taxonomy-aligned)
Transmission and distribution of electricity	CCM 4.9	0.29	$0.0 \%$	$Y$	N	N/EL	N/EL	N/EL	N/EL
Construction, extension and operation of water collection, treatment and supply systems	CCM 5.1	0.06	$0.0 \%$	$Y$	N	N/EL	N/EL	N/EL	N/EL
Construction, extension and operation of water collection, treatment and supply systems	CCA 5.1	0.64	$0.0 \%$	N	Y	N/EL	N/EL	N/EL	N/EL
Infrastructure for rail transport	CCM 6.14	18.05	$1.0 \%$	$Y$	N	N/EL	N/EL	N/EL	N/EL
Construction of new buildings	CCM 7.1	0.15	$0.0 \%$	$Y$	N	N/EL	N/EL	N	N/EL
Construction of new buildings	CCA 7.1	-	-	-	-	-	-	-	-
CapEx of environmentally sustainable activities (taxonomy-aligned) (A.1)		19.19	$1.0 \%$	$1.0 \%$	$0.0 \%$	-	-	-	-
- of which enabling		18.34	$1.0 \%$	$1.0 \%$	-	-	-	-	-
- of which transitional		-	-	-

A.2. Taxonomy-eligible but not environmentally sustainable activities (not taxonomy-aligned activities)

Economic activities (1)	DNSH criteria (Does Not Significantly Harm)
	Climate change mitigation	Climate change adaptation	Water and marine resources	Circular economy	Pollution	Biodiversity and ecosystems	Minimum safeguards	Taxonomyaligned proportion of CapEx 2023	Category (enabling activity)	Category (transitional activity)
	(11)	(12)	(13)	(14)	(15)	(16)	(17)	(18)	(19)	(20)
	Y/N	Y/N	Y/N	Y/N	Y/N	Y/N	Y/N	\%	E	T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (taxonomy-aligned)
Transmission and distribution of electricity	Y	Y	Y	Y	Y	Y	Y	$0.1 \%$	E
Construction, extension and operation of water collection, treatment and supply systems	Y	Y	Y	Y	Y	Y	Y	$-$
Construction, extension and operation of water collection, treatment and supply systems	Y	Y	Y	Y	Y	Y	Y	$15.1 \%$	E
Infrastructure for rail transport	Y	Y	Y	Y	Y	Y	Y	$15.1 \%$
Construction of new buildings	Y	Y	Y	Y	Y	Y	Y	$0.1 \%$
Construction of new buildings	-	-	-	-	-	-	-	$0.1 \%$
CapEx of environmentally sustainable activities (taxonomy-aligned) (A.1)	Y	Y	Y	Y	Y	Y	Y	16.0\%
- of which enabling	Y	Y	Y	Y	Y	Y	Y	$15.2 \%$	E
- of which transitional	Y	Y	Y	Y	Y	Y	Y	$-$		T
A.2. Taxonomy-eligible but not environmentally sustainable activities (not taxonomy-aligned activities)
Electricity generation using solar photovoltaic technology								$0.8 \%$
Electricity generation from hydropower								$0.0 \%$
Transmission and distribution of electricity								$0.9 \%$
Construction, extension and operation of water collection, treatment and supply systems								$0.1 \%$
Infrastructure for rail transport								$4.5 \%$
Infrastructure enabling low-carbon road transport and public transport								$20.7 \%$
Infrastructure enabling low-carbon water transport								$0.0 \%$
Low-carbon airport infrastructure								$1.0 \%$
Construction of new buildings								$5.7 \%$
Rensovation of existing buildings								$0.0 \%$
Installation, maintenance and repair of charging stations for electric vehicles in buildings (and parking spaces attached to buildings)								$0.1 \%$
Professional services related to energy performance of buildings								$0.0 \%$
Remediation of contaminated sites and areas								$-$
CapEx of taxonomy-eligible but not environmentally sustainable activities (not taxonomy-aligned activities) (A.2)								$31.8 \%$
CapEx of taxonomy-eligible activities (A. 1 + A.2)								$47.8 \%$

Proportion of OpEx from products and services associated with taxonomy-aligned economic activities - disclosure covering fiscal year 2024

Economic activities (1)	Code	2024		Substantial contribution criteria
		OpEx	Proportion of OpEx	Climate change mitigation	Climate change adaptation	Water and marine resources	Pollution	Circular economy	Biodiversity and ecosystems
		(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)
		EUR million	\%	$Y ; N$	$Y ; N$	$\begin{gathered} \mathrm{Y} ; \mathrm{N} ; \ \mathrm{N} / \mathrm{EL} \end{gathered}$	$\begin{gathered} \mathrm{Y} ; \mathrm{N} ; \ \mathrm{N} / \mathrm{EL} \end{gathered}$	$\begin{gathered} \mathrm{Y} ; \mathrm{N} ; \ \mathrm{N} / \mathrm{EL} \end{gathered}$	$\begin{gathered} \mathrm{Y} ; \mathrm{N} ; \ \mathrm{N} / \mathrm{EL} \end{gathered}$
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (taxonomy-aligned)
Electricity generation using solar photovoltaic technology	CCM 4.1	0.50	0.1\%	$Y$	N	N/EL	N/EL	N/EL	N/EL
Construction, extension and operation of water collection, treatment and supply systems	CCM 5.1	1.70	0.4\%	$Y$	N	N/EL	N/EL	N/EL	N/EL
Construction, extension and operation of water collection, treatment and supply systems	CCA 5.1	4.38	1.1\%	N	$Y$	N/EL	N/EL	N/EL	N/EL
Renewal of water collection, treatment and supply systems	CCA 5.2	-	-	-	-	-	-	-	-
Infrastructure for personal mobility, cycle logistics	CCM 6.13	2.28	0.6\%	$Y$	N	N/EL	N/EL	N/EL	N/EL
Infrastructure for rail transport	CCM 6.14	8.89	2.3\%	$Y$	N	N/EL	N/EL	N/EL	N/EL
Construction of new buildings	CCM 7.1	4.89	1.3\%	$Y$	N	N/EL	N/EL	N	N/EL
Construction of new buildings	CCA 7.1	-	-	-	-	-	-	-	-
Renovation of existing buildings	CCM 7.2	0.15	0.0\%	-	-	N/EL	N/EL	N	N/EL
OpEx of environmentally sustainable activities (taxonomy-aligned) (A.1)		22.79	5.8\%	$4.7 \%$	$1.1 \%$	-	-	-	-
- of which enabling		11.17	2.9\%	$2.9 \%$	-	-	-	-	-
- of which transitional		0.15	0.0\%	$0.0 \%$

A.2. Taxonomy-eligible but not environmentally sustainable activities (not taxonomy-aligned activities)

				$\begin{gathered} \mathrm{EL} ; \ \mathrm{N} / \mathrm{EL} \end{gathered}$	$\begin{gathered} \mathrm{EL} ; \ \mathrm{N} / \mathrm{EL} \end{gathered}$	$\begin{gathered} \mathrm{EL} ; \ \mathrm{N} / \mathrm{EL} \end{gathered}$	$\begin{gathered} \mathrm{EL} ; \ \mathrm{N} / \mathrm{EL} \end{gathered}$	$\begin{gathered} \mathrm{EL} ; \ \mathrm{N} / \mathrm{EL} \end{gathered}$	$\begin{gathered} \mathrm{EL} ; \ \mathrm{N} / \mathrm{EL} \end{gathered}$
Electricity generation from hydropower	CCM 4.5	0.52	0.1\%	EL	N/EL	N/EL	N/EL	N/EL	N/EL
Transmission and distribution of electricity	CCM 4.9	4.58	1.2\%	EL	N/EL	N/EL	N/EL	N/EL	N/EL
Storage of electricity	CCM 4.10	0.14	0.0\%	EL	N/EL	N/EL	N/EL	N/EL	N/EL
Electricity generation from fossil gaseous fuels	CCM 4.29	3.56	0.9\%	EL	N/EL	N/EL	N/EL	N/EL	N/EL
Construction, extension and operation of water collection, treatment and supply systems	CCM 5.1	5.11	1.3\%	EL	N/EL	N/EL	N/EL	N/EL	N/EL
Construction, extension and operation of waste water collection and treatment	CCM 5.3	0.04	0.0\%	EL	N/EL	N/EL	N/EL	N/EL	N/EL
Infrastructure for personal mobility, cycle logistics	CCM 6.13	0.03	0.0\%	EL	N/EL	N/EL	N/EL	N/EL	N/EL
Infrastructure for rail transport	CCM 6.14	4.42	1.2\%	EL	N/EL	N/EL	N/EL	N/EL	N/EL
Infrastructure enabling low-carbon road transport and public transport	CCM 6.15/CCA 6.15	-	-	-	-	-	-	-	-
Low-carbon airport infrastructure	CCM 6.17	9.57	2.5\%	EL	N/EL	N/EL	N/EL	N/EL	N/EL
Construction of new buildings	CCM 7.1/CCA 7.1	146.90	37.9\%	EL	EL	N/EL	N/EL	N/EL	N/EL
Renovation of existing buildings	CCM 7.2	4.23	1.1\%	EL	N/EL	N/EL	N/EL	N/EL	N/EL
Installation, maintenance and repair of energy efficiency equipment	CCM 7.3	0.12	0.0\%	EL	N/EL	N/EL	N/EL	N/EL	N/EL
Professional services related to energy performance of buildings	CCM 9.3	0.09	0.0\%	EL	N/EL	N/EL	N/EL	N/EL	N/EL
OpEs of taxonomy-eligible but not environmentally sustainable activities (not taxonomy-aligned activities) (A.2)		181.31	46.2\%	$44.4 \%$	$1.7 \%$	-	-	-	-
OpEs of taxonomy-eligible activities (A. 1 + A.2)		204.10	52.0\%	$49.1 \%$	$2.9 \%$	-	-	-	-
0. TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEs of taxonomy-non-eligible activities (B)		188.45	48.0\%
Total OpEs (A+B)		392.55	100.0\%

Economic activities (1)	DNSH criteria (Does Not Significantly Harm)
	Climate change mitigation	Climate change adaptation	Water and marine resources	Circular economy	Pollution	Biodiversity and ecosystems	Minimum safeguards	Proportion of Taxonomy aligned (A.1.) or eligible (A.2.) OpEx 2023	Category (enabling activity)	Category (transitional activity)
	(11)	(12)	(13)	(14)	(15)	(16)	(17)	(18)	(19)	(20)
	Y/N	Y/N	Y/N	Y/N	Y/N	Y/N	Y/N	\%	E	T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (taxonomy-aligned)
Electricity generation using solar photovoltaic technology	Y	Y	Y	Y	Y	Y	Y	-
Construction, extension and operation of water collection, treatment and supply systems	Y	Y	Y	Y	Y	Y	Y	-
Construction, extension and operation of water collection, treatment and supply systems	Y	Y	Y	Y	Y	Y	Y	2.7\%
Renewal of water collection, treatment and supply systems	-	-	-	-	-	-	-	0.4\%
Infrastructure for personal mobility, cycle logistics	Y	Y	Y	Y	Y	Y	Y	0.3\%	E
Infrastructure for rail transport	Y	Y	Y	Y	Y	Y	Y	3.2\%	E
Construction of new buildings	Y	Y	Y	Y	Y	Y	Y	0.9\%
Construction of new buildings	-	-	-	-	-	-	-	0.1\%
Renvvation of existing buildings	Y	Y	Y	Y	Y	Y	Y	0.1\%		T
OpEs of environmentally sustainable activities (taxonomy-aligned) (A.1)	Y	Y	Y	Y	Y	Y	Y	7.7\%
- of which enabling	Y	Y	Y	Y	Y	Y	Y	3.5\%	E
- of which transitional	Y	Y	Y	Y	Y	Y	Y	0.1\%		T
A.2. Taxonomy-eligible but not environmentally sustainable activities (not taxonomy-aligned activities)
Electricity generation from hydropower								0.0\%
Transmission and distribution of electricity								0.0\%
Storage of electricity								-
Electricity generation from fossil gaseous fuels								-
Construction, extension and operation of water collection, treatment and supply systems								0.3\%
Construction, extension and operation of waste water collection and treatment								0.0\%
Infrastructure for personal mobility, cycle logistics								0.7\%
Infrastructure for rail transport								1.8\%
Infrastructure enabling low-carbon road transport and public transport								26.4\%
Low-carbon airport infrastructure								4.8\%
Construction of new buildings								48.2\%
Renvvation of existing buildings								4.1\%
Installation, maintenance and repair of energy efficiency equipment								-
Professional services related to energy performance of buildings								0.0\%
OpEs of taxonomy-eligible but not environmentally sustainable activities (not taxonomy-aligned activities) (A.2)								86.3\%
OpEs of taxonomy-eligible activities (A.1 + A.2)								94.0\%

Taxonomy-eligibility and -alignment per objective - disclosure covering fiscal year 2024

	Proportion of revenues / Total revenues		Proportion of CapEx / Total CapEx		Proportion of OpEx / Total OpEx
	Taxonomy-aligned per objective	Taxonomy-eligible per objective	Taxonomy-aligned per objective	Taxonomy-eligible per objective	Taxonomy-aligned per objective	Taxonomy-eligible per objective
CCM	$7.0 \%$	$75.0 \%$	$1.0 \%$	$2.5 \%$	$4.7 \%$	$49.1 \%$
CCA	$0.0 \%$	$0.0 \%$	$0.0 \%$	$0.0 \%$	$1.1 \%$	$2.9 \%$
WTR	-	-	-	-	-	-
CE	-	-	-	-	-	-
PPC	-	$0.1 \%$	-	$0.0 \%$	-	-
BIO	-	-	-	-	-	-

Conclusions

Providing a sustainable and quality infrastructure plays a crucial role in the context of all six environmental objectives and is one of HOCHTIEF's guiding principles as one of the world's leading infrastructure groups with respect to sustainability.

HOCHTIEF continues responding to the demands of public and private clients to develop sustainable infrastructures, which are aiming at mitigating or adapting to the impact of climate change, promoting the sustainable use and protection of water and marine resources, driving the transition to a circular economy, supporting pollution prevention as well as protecting and restoring biodiversity and ecosystems. To this end, HOCHTIEF's Sustainability Plan 2025 is aligned with the activities identified by the EU in its Taxonomy as drivers of a decarbonized and sustainable economy.

(5)

Social information

ESRS S1

Own workforce

Employees: the basis of our success

With their dedication, expertise, and experience, our employees contribute decisively to the success of our projects. We firmly believe in fostering a constructive, diverse working environment as well as opportunities for continuous professional development in order to promote employee motivation and qualification.

Our Group strategy and our guiding principles of integrity, accountability, innovation, delivery, and sustainability, closely integrated with the principle of safety, form the strategic cornerstone of our human resources management.

Impacts of the HOCHTIEF strategy and business model

The actual and potential impacts of our strategy relate to our own employees working on our projects and in the service units within our own activities. They apply to the entire duration of an individual's employment-and also beyond, since employment relationships have consequences in terms of retirement and health provision. Occupational safety and health impacts on employees are not limited to the duration of the employment relationship.

We do not yet have full visibility regarding impacts on non-employees as we so far only have data on specific subgroups. This relates to non-employees deployed at HOCHTIEF companies as temporary workers and selfemployed workers on our projects. We will assess such impacts once we have full information from the HOCHTIEF companies about all non-employees in terms of their numbers and where they are engaged.

The health and safety metrics (S1-14) and the gender pay gap metric (S1-16) in this section include, as a subgroup of non-employees, Turner employees who work on projects by arrangement with a trade union or whose employment contracts are based on collective agreements.

Own workforce

The Group's workforce comprises all employees in an employment relationship with a HOCHTIEF Group company that is consolidated in the Consolidated Financial Statements. It additionally includes non-employees who are self-employed or people provided by undertakings primarily engaged in employment activities. This also applies in instances where the non-employees referred to are deployed internationally. Workers employed in Turner projects by arrangement with a trade union or whose employment contracts are based on collective agreements are also categorized as non-employees. In addition, non-employees include the employees with employment relationships at joint operations within the HOCHTIEF Group. Joint ventures, on the other hand, involve third-party entities that are not in the HOCHTIEF consolidated group. We classify employees of such joint venture partners as value chain workers.

Based on our double materiality assessment, the material impacts are as follows; they relate solely to own employees:

Material impacts

The material impacts were identified in the materiality assessment for 2024 conducted by HOCHTIEF in accordance with the double materiality principle. HOCHTIEF's assets and business activities along entire value chain were assessed for actual and potential impacts, risks, and opportunities. This process is described in detail in the ESRS 2 General Disclosures section.

Working conditions

Positive impacts (PI)
Adequate wages
S1-PI1 Fair, performance-related wages, ensuring at least the minimum wage according to local legal provisions, lead to satisfaction among employees and a positive impact on adequate wages. (actual; location in the value chain: Own activities)

S1-PI2 Adequate wages, at least a minimum wage according to local legal provisions, enable financial stability and retirement provision for employees and their families. (actual; location in the value chain: Own activities)

Negative impacts (NI)
S1-NI1 Not paying a fair wage-at least a minimum wage according to local legal provisions-that provides for satisfying the needs of the worker in light of national economic and social conditions has negative impacts on adequate living standards. (potential; location in the value chain: Own activities)

Social dialogue

Freedom of association, including the existence of work councils, collective bargaining

S1-PI3 Ensuring and encouraging social dialogue is an important mechanism for listening to and valuing the opinions of employees. (actual; location in the value chain: Own activities)

S1-PI4 Freedom of association for employees and the implementation of work councils, as well as rights to information, consultation, and participation of employees in everyday working life, have a positive impact on the rights of employees, enabling fair negotiations. (actual; location in the value chain: Own activities)

S1-PI5 A high proportion of employees who are covered by collective agreements/application of bargaining agreements or similar has a positive impact on the rights of employees. (actual; location in the value chain: Own activities)

Work-life balance

Working hours

S1-PI6 Offering flexible working time models can have a positive impact on working time. (actual; location in the value chain: Own activities)

S1-NI2 Construction projects often require personnel to live on site and be away from home for certain periods of time, which has a negative impact on the work-life balance. (actual; location in the value chain: Own activities)
The duration of absence depends on the project dura-tion and the length of time an employee is assigned to the project

Health and safety

S2-PI7 Provision of a safe work environment for the own workforce by providing personal protective equipment (PPE) leads to a positive impact on health and safety. (actual; location in the value chain: Own activities)

S1-PI8 Safe and audited/certified working conditions reduce the risk of accidents. (actual; location in the value chain: Own activities)

S1-PI8 Safe and audited/certified working conditions reduce the risk of accidents. (actual; location in the value chain: Own activities)

S1-NI3 The workplace can have a negative impact on employees' health if it does not meet the suitable provision of PPE. (actual; location in the value chain: Own activities)

S1-NI4 Construction projects naturally have a high risk of severe accidents. This is a negative impact for all employees on construction sites. (actual; location in the value chain: Own activities)

S1-NI5 Air pollution has a negative impact on the health of workers on construction sites. (Further information also under ESRS E2-NI1.) (actual; location in the value chain: Own activities)

Cross-cutting topic related to working conditions

S1-PI9 Advantageous working conditions for all workers above the standards and requirements in each geography (salaries, working hours, health and safety, etc.) lead to a positive impact on human rights. (actual; location in the value chain: Own activities)

Equal treatment and opportunities for all

Positive impacts (PI)
Gender equality and equal pay for work of equal value
S1-PI10 Promoting equal pay at all levels and HOCHTIEF locations* can have a positive impact on gender equality. (actual; location in the value chain: Own activities)

Negative impacts (NI)

S1-NI6 There are currently relatively few female technical employees. This has a negative impact on the gender balance within the company. (actual; location in the value chain: Own activities)

Training and skills development

S1-PI11 The training and skills-development activities for employees with an extensive range of professional development programs, co-op degree programs, and annual feedback interviews have a positive impact on employees' professional expertise. (actual; location in the value chain: Own activities)

Employment and inclusion of persons with disabilities

S1-PI12 Actively offering positions for persons with disabilities has a positive impact on inclusion. (actual; location in the value chain: Own activities)

Measures against violence and harassment in the workplace

S1-PI13 Providing anonymous channels of communication for reporting violence and harassment to ensure that every employee feels free to report any harassment has a positive impact on a safe workplace. (actual; location in the value chain: Own activities)

S1-NI7 Insufficient measures against violence and harassment have a negative impact on a safe workplace. (potential; location in the value chain: Own activities)

Diversity

S1-PI14 Highlighting the topic of diversity among employees through training and programs can increase the awareness of employees and thus have a positive impact on diversity. (actual; location in the value chain: Own activities)

S1-PI15 Creating job opportunities for minorities and people at risk of social exclusion has a positive impact on diversity. (actual; location in the value chain: Own activities)

S1-PI16 Promoting the social and economic inclusion of all people, regardless of age, gender, disability, ethnic origin, religion, belief/ideology, or sexual orientation, leads to a positive impact on diversity. (actual; location in the value chain: Own activities)

S1-NI8 Insufficient measures to foster diversity through training and programs have negative impacts on diversity. (potential; location in the value chain: Own activities)

Material opportunities

Equal treatment and opportunities for all

Measures against violence and harassment in the workplace

S1-O1 Through measures to prevent inequality and harassment, HOCHTIEF can become a more attractive employer for highly qualified professionals.

Management of impacts, risks, and opportunities

Our fundamental strategic approach and the management of the above-mentioned material impacts are contained in the HOCHTIEF Group directives and HOCHTIEF codes of conduct. These are presented below under S1-1 and additionally in the context of the material impacts identified.

Interaction with strategy and business model

Our strategy takes into account the interests of our employees from the outset. We will make future changes to our strategy in line with how requirements develop in relation to the workforce. We derive actions and targets based on the interests of our employees.

S1-1

Policies related to own workforce

Our policies are based on our business activities. These include construction and other services on projects and in service units, where HOCHTIEF companies provide the services with their own employees. This means that our own employees contribute significantly to our business success. Their interests, views, and rights inform our policies.

We ensure that the interests, views, and rights of our own employees inform our strategy by pursuing the following strategic approaches within the HOCHTIEF Group:

• In the Group directive on Human Rights Governance, we have laid down obligations to respect and monitor human rights by means of due diligence processes.
• In 2023, we adopted our Human Rights Statement of Principles. This expressly addresses matters and processes in relation to own employees. Another binding Group-wide framework is the HOCHTIEF Sustainability Plan 2025.
• In our Human Rights Statement of Principles and the above-mentioned Group Directive on Human Rights Governance, we take full account of internationally recognized standards. These are:
• The UN Guiding Principles on Business and Human Rights
• The OECD Guidelines for Multinational Enterprises
• The Due Diligence Guidance for Responsible Business Conduct
• The ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy.

• We rigorously pursue the aim of providing safe and healthy workplaces. This policy is documented in the HOCHTIEF Code of Conduct and in the Group directive on Occupational Safety, Health, Environmental and Climate Protection. In addition, the HOCHTIEF Sustainability Plan 2025 addresses strategic focus areas aimed at preventing occupational accidents and ensuring high, recognized standards of safety.

• We reject all forms of human trafficking, forced labor, and illegal child labor. The age limits for illegal child labor vary according to local law. ILO Convention no. 138 sets the minimum age at 15 years and in exceptional cases for a transitional period at 14 years.

The policy is documented in the HOCHTIEF Code of Conduct and the Human Rights Statement of Principles. The procedure for remedial action is detailed in the previously mentioned Group directive on Human Rights Governance.

• We are committed to diversity. The Group directive on Anti-Discrimination, Anti-Harassment, and Anti-Bullying prohibits discrimination and harassment regarding such factors as age, gender, disability, ethnic origin, religion, belief, or sexual orientation. This policy is also enshrined in the HOCHTIEF Code of Conduct and likewise finds expression in the HOCHTIEF Sustainability Plan 2025 ("Workplace diversity"). With programs specifically designed to support minorities as well as with training, we work to prevent discriminatory conduct and harassment while promoting inclusion in general.

Responsibility for eliminating discriminatory conduct and harassment lies with the HOCHTIEF companies. This is documented in the HOCHTIEF Code of Conduct, in the Group directive on Anti-Discrimination, Anti-Harassment, and Anti-Bullying, and in the HOCHTIEF Sustainability Plan 2025.

• Employees need to be able to safeguard their interests. The strategic basis for this is the HOCHTIEF Code of Conduct and the Group directive on the Compliance Organization.
• In accordance with local laws, we ensure that works councils and trade unions are able to represent employee interests in our operational processes. This form of transparent cooperation in a spirit of trust is documented in the HOCHTIEF Code of Conduct.
• Well-qualified employees are key to success in our business segments. The HOCHTIEF companies offer their employees individual development plans as well as a wide variety of professional and personal development opportunities. This policy is reflected in the HOCHTIEF Sustainability Plan 2025 under the heading of "Training, Talent, and Recruitment."
• We provide flexible working and working time models in support of positive work-life balance. This strategic approach follows from the HOCHTIEF Sustainability Plan 2025, under "Working environment."

All directives contain clear, unequivocal requirements and descriptions of processes for monitoring compliance.
We will develop policies for non-employees once we have detailed information about non-employees in terms of their numbers and the geographic locations where they are engaged in our business segments.

S1-2

Processes for engaging with own workers and workers' representatives about impacts

We seek constructive dialogue with own workers and workers' representatives in order to engage with them. In this connection, we take account of the material positive and negative actual or potential impacts of our activities in relation to working conditions, equal rights and opportunities for all, as well as human rights.

The following processes are used:

• Compliance with statutory participation processes for codetermination in the German HOCHTIEF companies and the Czech and Polish companies of HOCHTIEF Infrastructure GmbH: Local works councils must be involved in accordance with local laws in matters relating to wage structuring, working times, the protection of vulnerable groups, and the agreement of training measures. Occupational safety and health are subject to statutory monitoring responsibilities. Employees across the Group are engaged in the planning of related activities in occupational safety committees.

In addition, the European Works Council represents the interests of employees from the various countries. This body is consulted at least once annually on matters that may affect employees across Europe. The Labor Director of HOCHTIEF Aktiengesellschaft attends the meetings of the European Works Council and ensures that it is properly informed and advised.

Direct dialogue between employees and their superiors: For approximately half of the workforce, regular employee interviews with superiors are held in the Group companies at least once a year. This provides a direct opportunity to bring up concerns and ideas as well as to find and agree upon constructive solutions there and then. Responsibility for conducting employee interviews lies with superiors in each HOCHTIEF company. We do not track the effectiveness of actions agreed in employee interviews as we are confident that what is agreed directly between superiors and employees will be put into effect with a high degree of commitment on both sides. At HOCHTIEF Group companies Turner and Flatiron in the United States and at the European units, employee surveys are generally conducted every two years and in some cases at other intervals. These include employee feedback on topics such as occupational safety, compliance, and individual matters relating to professional development and wellbeing. Similar questions feature in employee surveys at Australian Group company CIMIC.

• We engage with own workers and employee representatives by assigning human resources from HOCHTIEF companies:

At HOCHTIEF, international working groups on social matters have been established in the course of implementing the HOCHTIEF Sustainability Plan 2025. These generally have two members each from Human Resources at HOCHTIEF Aktiengesellschaft, HOCHTIEF Infrastructure, Turner, Flatiron, and CIMIC. The working groups have been established for the various thematic areas of the HOCHTIEF Sustainability Plan (Health and Safety; Working Environment; Workplace Variety; Training, Talent and Recruitment; and Social Activities). Their international meetings take place every three months. We generally take the interests of all employees equally into account in relation to impacts. The working groups additionally take into account the perspective of vulnerable employee groups in relation to their specific thematic areas. These include, for example, women. With regard to women, the working groups focus on the targets in the HOCHTIEF Sustainability Plan 2025 in relation to senior manage-ment positions and engineering trainees. These sustainability targets are presented under the heading "Workplace variety." The working groups also take into account the perspectives of employees in the various different age groups. In this regard, the HOCHTIEF Sustainability Plan includes the sustainability target of promoting diversity in teams and closer collaboration between generations under the heading "Workplace variety."

The Health and Safety working group, comprising experts from the above-mentioned companies, gen-erally takes all employee groups equally into account. In addition, a Human Rights Focus Group has been set up, generally with up to two members each from Legal and Compliance and from Human Re-sources at HOCHTIEF Aktiengesellschaft. In addition, up to two members of staff each take part from Procurement and Human Resources at HOCHTIEF Infrastructure GmbH. The working group coordi-nates, in relation to the European companies, human rights topics that we address in this section of the report.

S1-3

Processes to remediate negative impacts and channels for our own workforce to raise concerns

As a matter of policy, we want our activities to have a positive impact and to avoid any negative impacts on own workers. Should negative impacts nevertheless occur within the Group, we provide employees with the following channels to raise concerns and report matters in relation to their working conditions, equal treatment, equal opportunities, or other work-related rights:

• Continuous process as part of HOCHTIEF's Human Rights Corporate Management System: We identify the human rights risks arising in our business activities that may impact our own employees as stakeholders. Under the Group directive on Human Rights Governance, the managements of Group companies are responsible for ensuring that functional departments are appropriately involved in the human rights and environmental risk analysis in order to identify, assess, and prioritize such risks and that they take action to implement the human rights principles and prevent human rights risks. In fulfilling these responsibilities, they are supported by the corporate departments and/or functions of their company. We consider this approach to be effective, as it follows a mandatory, formalized process.
• Whistleblower systems that allow concerns to be openly raised with HOCHTIEF, on both a centralized and a decentralized basis, via an online platform, a hotline, or email: These provide a direct channel for our own employees to raise concerns and report issues. Submissions can also be made anonymously and we assure whistleblowers full protection against any reprisals. In a formalized process, HOCHTIEF companies ensure that all critical issues reported are investigated and appropriately dealt with so that suitable remedial measures can be taken. The process similarly provides for whistleblowers to be involved in follow-up and to receive feedback. Reported matters continue to be worked on until they are classified as resolved. Ease of access is facilitated by making the whistleblower systems publicly known, accessible, and transparent. Whether our own employees are aware of and trust in the systems is assessed in the companies on a decentralized basis and is not tracked centrally.
• The effectiveness of our whistleblowing system is regularly confirmed by an internal audit conducted by Corporate Auditing. In addition, an external surveillance audit was successfully conducted in the 2024 reporting year and led to certification of the European HOCHTIEF companies.
• The ISO 45001 standard emphasizes the importance of engaging with employees in decision-making processes that affect their health and safety. Among other things, this includes a process for reporting near misses.

S1-4 | S1-5

Actions and targets related to material impacts on the company's own workforce ${ }^{1}$

Working conditions

Adequate wages

IROs: S1-PI1, S1-PI2,	Time horizon: Short- and long-term	Value chain:
S1-NA1	$\bigcirc$ upstream	$\bigcirc$ own activities	$\bigcirc$ downstream

Policies to working conditions

Adequate wages, in our understanding, comprise wages at or above the minimum wage required by local law. Above and beyond the payment of a statutory minimum wage, we continue to pursue our goal of paying a living wage. This is an important concern for HOCHTIEF.

Unlike the minimum wage, which is based on legal requirements, a living wage is the wage paid for regular working hours (excluding overtime) that is intended to cover the basic needs of employees and their families.

The living wage policy is documented in the following Executive Board resolutions:

• Executive Board resolution on benchmarking a living wage in the European units. This resolution in 2021 provided for the benchmarking of a living wage for our own workforce in the European units using the anchor method. The benchmark for calculation of the living wage is the needs of a family with one child, based on the costs of food, clothing, accommodation, healthcare, and education.
• On the basis of a further Executive Board resolution from 2022, the calculation of a living wage for own employees was extended to the HOCHTIEF companies in North America and the Australian Group company CIMIC.

In all business models, HOCHTIEF's success is based on the satisfaction of our own employees. Adequate wages are a significant factor here, as they enhance financial stability in relation to living expenses and better retirement provision. HOCHTIEF has identified adequate wages, at or above the minimum wage required by local law, as a material matter. Conversely, a negative impact arises if no adequate wages are paid that meet employees' needs in light of national economic and social conditions.

Responsibility for calculation of the living wage lies with the HOCHTIEF companies. The calculations are performed annually under the responsibility of local personnel departments and reviewed by the HOCHTIEF Aktiengesellschaft Corporate Department Human Resources. It has not been possible to calculate a living wage at Leighton Asia or, in part, at Thiess because-in contrast to the situation at the European units-the publicly available sources are insufficient to support the calculation methodology used. This is why the calculation in these units was made in relation to the applicable statutory minimum wage.

Taking action on material impacts related to own workforce, and effectiveness of those actions

No action is currently taken in relation to the minimum wage as full coverage means that no such action is necessary.
In the reporting year, all employees were paid an adequate wage corresponding to at least the locally applicable legal minimum wage.
By calculating a living wage over a multi-year period, we have created a meaningful data basis as a starting point for developing suitable targets in the future.

We confirmed the living wage calculation methodology in the reporting year. This exceeds the requirements for the locally applicable legal minimum wage in each case. Depending on the country, it is based on the anchor method, use of the MIT calculator, or benchmarking collectively agreed wages against the statutory minimum wage. We confirmed this methodology in the reporting year.

Decisions on action to be taken with regard to a living wage are made within the Group companies. In the latest round of wage adjustments, Turner implemented a pay rise, additionally taking into account the findings of the living wage review. At HOCHTIEF's Czech company, the outcomes of the living wage review will have been additionally included in the January 2025 pay rise.

Data analysis is performed by the personnel departments of the respective HOCHTIEF companies. The analysis is verified by the Human Resources corporate department.

[^0]
[^0]: ${ }^{1}$ With regard to Disclosure Requirements S1-2 and S1-3, please refer to the information above for these topics.

With the above short-term measures, we aim to ensure that the results of the living wage reviews are taken into account in the respective salary adjustments at the companies. These measures also help to stabilize post-retirement pension benefits in the long term.

Targets related to managing material negative impacts and advancing positive impacts

We have not yet specified measurable targets.

Social dialogue, freedom of association, including the existence of work councils, and collective bargaining

IROs: S1-PI3, S1-PI4, S1-PI5

Time horizon: short and medium-term
$\bigcirc$ upstream $\bigcirc$ own activities $\bigcirc$ downstream

Policies related to working conditions

HOCHTIEF is committed to social dialogue and cooperation with codetermination bodies. This is a fundamental component of the Group strategy and is enshrined in the HOCHTIEF Code of Conduct. A significant part of the HOCHTIEF Code of Conduct also relates to the right to organize and the right to collective bargaining. The Code of Conduct sets forth for HOCHTIEF companies the material matters identified in relation to promoting social dialogue, freedom of association, and the establishment of works councils, as well as the application of collective agreements. It also demands full compliance with local laws on the formation of and cooperation with codetermination bodies.

Responsibility for implementing this strategic approach lies with employees themselves, and in particular with managers who are required to actively support its operationalization, as well as with the Compliance Corporate Department.

In addition, we have identified direct social dialogue with our own employees as a material matter. This matter is likewise addressed in the HOCHTIEF Code of Conduct, which emphasizes transparency, a culture of mutual trust, and equality of opportunity as important elements of our corporate culture.

Under the HOCHTIEF Code of Conduct, responsibility for implementing social dialogue with employees lies with the managerial staff of each HOCHTIEF company.

Taking action on material impacts related to own workforce, and effectiveness of those actions

HOCHTIEF takes the following short- and medium-term action in support of the identified material matters:

• In the German units and at Australian company CIMIC, negotiations with the collective bargaining parties. In the German units, codetermination representatives take part in collective bargaining.
• At all European units, collective agreements are fully applied or incorporated by reference in employment contracts, in accordance with the collective bargaining arrangements and the legal framework
• Enabling the formation of works council bodies; these are established at the following German companies: HOCHTIEF Aktiengesellschaft, HOCHTIEF Infrastructure, HOCHTIEF Engineering, HOCHTIEF PPP Solutions, Trinac, and Debausie. Codetermination bodies are also established at the Czech and Polish companies of HOCHTIEF Infrastructure. The interests of employees in the European units are similarly represented by the European Works Council.
• Cooperation between company managements and works council bodies; at European level, this responsibility falls to the HOCHTIEF Labor Director.

Independently of the ESRS standard, we also promote direct social dialogue with employees through the following measures:

• At German companies, annual employee interviews with superiors on the basis of prescribed guidelines within the HOCHTIEF Group
• Employee surveys

The effectiveness of our measures is confirmed by the numerous agreements we have entered into with codetermination bodies and collective bargaining parties. Time horizons are based in each case on the planned duration of negotiations with the codetermination bodies. In addition to the codetermination bodies, the negotiations are conducted with the involvement of the management of the companies concerned and, where required, employees of operational units and personnel department staff. Responsibility for verifying the application of collective agreements lies with the codetermination bodies in accordance with local laws.

The effectiveness of direct dialogue between supervisors and employees is not tracked as such by the HOCHTIEF companies. For white-collar employees, however, we track the number of employee interviews held. In 2024, this was done as follows:

• The employee survey held at the European units included a question on the above-mentioned annual interviews.
• At Turner, employee interviews held are tracked in the learning management system.
• CIMIC and Flatiron record employee appraisals using forms; in the case of CIMIC, this takes place on a decentralized basis in the operational units.
• At Thiess, employee interviews are also held via a reporting system.

Employees not covered by collective agreements at European units may be disadvantaged in principle with regard to benefits that are not provided by law. In the reporting year, such benefits relate at the German companies to the collectively agreed payment of an inflation adjustment and subsidized local transport passes. The HOCHTIEF companies have taken action to mitigate these impacts. For example, the benefits referred to were provided under a company agreement provided that the company is subject to codetermination. Where there is no codetermination, in the case of German units, HOCHTIEF instead negotiated in accordance with the applicable statutory requirements with a higher-level works council; on the basis of the statutory requirements, this is the Group Works Council. In consultation with the codetermination bodies, this has made it possible for employees at the German companies whose employment contracts are not covered by collective agreements, or who are not represented by a codetermination body, to be provided with an inflation adjustment and subsidized public transport passes. The time horizon for this action is needs-driven.

The European Works Council additionally has information and consultation rights. It represents all employees of the European units relating to matters stipulated by law. Action to be taken in relation to the European units is discussed by this body with the involvement of the Labor Director. The European Works Council meets once annually. Decisions on action to be taken are made at the companies concerned.

Irrespective of the quantitative ESRS datapoints on collective bargaining coverage and social dialogue in the European Economic Area (EEA), we have determined that the working conditions of more than $85 \%$ of employees in HOCHTIEF companies in Europe are already subject to collective agreements. This means that, with regard to our European units, we seek to maintain a trusting and transparent working relationship with our codetermination and collective bargaining partners as well as to incorporate the arrangements that affect our employees' working conditions into binding agree-ments. Collective agreements are also applied at CIMIC. Employee representatives are responsible for representing the interests of almost $98 \%$ of employees in the European companies. Similarly, we made this calculation independently of ESRS requirements. Alongside co-determination at the operational level, HOCHTIEF has a European Works Council, established pursuant to legal requirements. We continue to aim for regular employee interviews to be held in the HOCHTIEF companies at least once annually. The above data was collected on a decentralized basis in the relevant operating companies.

Targets related to managing material negative impacts and advancing positive impacts
We have not yet set targets in relation to the material impacts identified.

Work-life balance; working time

IROs S1-PI6, S1-NI2	Time horizon: Short-term	Value chain:
		(3)

Policies related to working conditions

Our policy for the identified material impacts is largely based on the HOCHTIEF Sustainability Plan 2025. Under the heading "Working environment," this includes a commitment in all HOCHTIEF companies to maintain a positive atmosphere in which everyone feels valued as well as to promote a positive working environment that improves employee job satisfaction and thus employee productivity. This strategic approach includes the identified impacts relating to the provision of flexible working models in the interest of work-life balance as well as to the provision of flexible working time models. Another matter that we classify under the general heading of "Working environment" in the HOCHTIEF Sustainability Plan 2025 is the impact on employees assigned to work on construction sites away from home.

Responsibility for implementation lies with the HOCHTIEF companies, and within them primarily with the relevant personnel departments. Matters relating to the promotion of a positive working environment are discussed and developed in an international working group comprising experts from the personnel departments. Specific time horizons do not follow from the policy as the matters are addressed on an ongoing basis.

Taking action on material impacts related to own workforce, and effectiveness of those actions

Action to be taken is identified in the various companies according to any processes in place as well as in accordance with applicable law. It is generally taken at short notice in order to respond swiftly to employee needs. Flexible working models in the form of mobile working are offered in the HOCHTIEF Group companies Turner, Flatiron, and CIMIC, as well as in the German units. Parental leave is offered atTurner and CIMIC, including where it is not required by law. In addition, employees at CIMIC, Turner, Flatiron, and HOCHTIEF in Germany wishing to reduce their working hours can take advantage of part-time options.

For employees working on construction sites away from home, project work has a negative impact on work-life balance. This can, for instance, take the form of limited privacy or reduced opportunities for leisure activities. To counter this, a collective agreement has been entered into at the German units for employees to be provided with single accommodation at all times. Subsidized leisure activities are additionally available. Turner offers wellness programs that can also be taken up by employees working on projects.

The effectiveness of these activities is measured in the companies on the basis of employee turnover. Under the HOCHTIEF Sustainability Plan, this serves as an indicator of the working environment and job satisfaction. Turnover rates are specified and monitored by the companies. On the basis of employee turnover, the companies take action under their own responsibility which can have a positive impact on the working environment and employee satisfaction.

Targets related to managing material negative impacts and advancing positive impacts

We do not specify any targets at present in relation to the material impacts identified. As part of their regular deliberations, experts from the companies' human resources departments discuss in an international working group whether the actions taken need to be modified or targets formulated.

Health and safety

IROs: S1-PI7, S1-PI8,	Time horizon: Short-, medium- and long-term	Value chain:
S1-NI3, S1-NI4, S1-NI5	$\bigcirc$ upstream	own activities	$\bigcirc$ downstream

Policies related to working conditions

The policies on health protection and the safety of our own employees are set out in the following:

• Group directive on Occupational Safety, Health, Environmental and Climate Protection: This Group directive stipulates responsibilities and requirements for occupational safety, health, and environmental and climate protection for HOCHTIEF Aktiengesellschaft. It pursues the overarching strategy of providing for legally compliant organizational structures and processes in order to prevent accidents and near-misses with potential impacts on the safety and health of employees, third parties, the environment, and the climate, and to record and analyze any accidents and near-misses that do occur. The directive is thus a framework that also addresses the identified material impacts in relation to matters comprising insufficient personal protective equipment, preventive training, and serious lost-time work accidents. Another matter addressed by the directive is air pollution and its employee health impact. This report covers air pollution health risks in the Pollution section.
• HOCHTIEF Sustainability Plan 2025: With regard to occupational safety, this addresses strategic focus areas aimed at preventing and reducing work accidents and ensuring high, recognized standards of occupational safety.

By incorporating the above-mentioned occupational safety matters, the HOCHTIEF Sustainability Plan 2025 elaborates on the HOCHTIEF strategy in this regard.

The above policies relate to the health and safety of both white-collar and blue-collar workers. Hence, the above material impacts apply equally to both groups of employees. Protective equipment, for instance (S1-PA7 and S1-NA3), is also important in the office setting (VDU glasses are an example). We additionally apply occupational safety certifications (S1-PA8) to both employee groups. The impact we have identified in relation to the risk of severe accidents on construction sites likewise applies to whitecollar employees deployed in projects, such as site and project managers. This explanatory note applies equally to health damage caused by air pollution.

On behalf of the Executive Board of HOCHTIEF Aktiengesellschaft, the Health and Safety department of HOCHTIEF Infrastructure GmbH reviews the HOCHTIEF units' implementation of the occupational safety and health-related content of the Group directive on Occupational Safety, Health, Environmental and Climate Protection. The Health and Safety department also keeps the Executive Board informed, furnishing regular updates on the development of the corporate metrics specified for the HOCHTIEF Group. Responsibility for verifying compliance with the directive lies with the units and with managerial staff responsible for occupational safety, who report in turn to the Health and Safety department.

The international Health and Safety working group, which meets on a quarterly basis, plays an important role with regard to finetuning and fleshing out the directive and the HOCHTIEF Sustainability Plan 2025. In the same forum, experts from the various functional departments for occupational safety and health and from the Corporate Department Human Resources discuss and contribute to ongoing efforts regarding the identified material matters. This work is generally not subject to specific time horizons as we view occupational safety and health as a continuous improvement process with no hard deadlines.

Taking action on material impacts related to own workforce, and effectiveness of those actions

When deciding on action to be taken, we focus on prevention and behavior-based safety (BBS). Accordingly, all HOCHTIEF companies conduct occupational safety training for their own employees in order to alert them to hazardous situations and thus prevent work accidents. Occupational health and safety management systems that are regularly certified to ISO 45001 or to similar standards help ensure that the relevant safety standards are implemented consistently in all units. The companies identify suitable preventive measures for all work areas in the course of risk analysis. These are evaluated and updated for each project.

In the operational units, standardized ordering processes enable the necessary personal protective equipment to be sourced in order to counter negative impacts such as accidents caused by tripping or falling, as well as head injuries due to falling objects at our project sites. The wearing of protective equipment also counteracts health impacts due to sun exposure, temperature extremes, dust, or exhaust fumes (air pollution). This report covers action with regard to air pollution health risks in the Pollution section.

Instruction and training is provided throughout the Group to keep employees continuously informed about occupational safety matters and to raise awareness in this regard. Additionally, employees are made aware of occupational safety issues by campaigns mounted throughout the Group. The focus of these campaigns varies on a regular basis. Activities include safety lockdowns at Turner and an Occupational Safety and Health Day in Germany.

The effectiveness of action taken is tracked using a metric established within the Group in direct relation to the lost time injury frequency rate (LTIFR). The percentage of own employees who operate under internationally recognized occupational safety certifications is also surveyed on a regular basis.

The effectiveness of the various preventive measures is verified by the safety experts in the units.

Targets related to advancing positive impacts

We set specific time-bound-short-, medium-, and long-term-targets to address the negative impacts of lost-time work accidents. HOCHTIEF has accorded special importance to occupational safety matters for many years by establishing the lost time injury frequency rate (LTIFR) as the most significant non-financial performance indicator. This is an entity-specific metric that is reported outside of the ESRS standard (for further information, please refer to the Group structure and business activities section). Annual LTIFR targets are based on forecasting, while long-term and interim targets are specified in the HOCHTIEF Sustainability Plan 2025. These include improving the LTIFR across the Group to 1.04 by 2025, and a long-term LTIFR target of 0.9 by 2030. This sustainability target includes Thiess as we likewise included Thiess in target setting.

Another target relates to promoting the positive impact of occupational safety certifications on the prevention and reduction of work accidents. This target is for $100 \%$ of all employees to work in an occupational safety-certified environment in accordance with ISO 45001 or with comparable internationally recognized occupational safety certifications. The target initially related to 2023, when it was almost achieved ( $98.7 \%$ ). Data has also been collected for 2024, as the target for 2024 was similarly 100\%. Target achievement in 2024 was $99.8 \%$. The underlying data was collected on a decentralized basis in the relevant operational units as of the December 31, 2024 reporting date.

Responsibility for implementing the above-mentioned targets lies with the companies in the HOCHTIEF Group.

Cross-cutting topic related to working conditions

IROs: S1-PI9
Time horizon: Short-, medium- and long-term
Value chain:
Q upstream
own activities
downstream

Policies related to working conditions

We emphasize the importance of favorable working conditions in terms of wages, working hours, and health and safety by additionally examining these working conditions from a human rights perspective. Such working conditions can have a positive impact on human rights if they exceed the applicable legal requirements.

In its Sustainability Plan 2025, HOCHTIEF pursues strategic focus areas relating to the prevention of occupational accidents and to guaranteeing high, recognized standards of occupational safety in excess of legal requirements. With regard to wages and salaries, the Executive Board resolution on the benchmarking of a living wage has established a strategic approach for the outcomes of living wage reviews to be taken into account in salary adjustments. The provision of options with regard to flexible working hours is also firmly established as a strategic approach at the HOCHTIEF companies. It is implemented through part-time employment contracts signed with employees on a voluntary basis. Part of this policy comprises the promotion of networking among individual Group companies via the international working group on the working environment comprising human resources experts from the various companies. This ensures that improvements in working conditions are communicated in order to foster acceptance and awareness of action that has been put into place.

Responsibility for implementing the policy lies with the various Group companies.

Taking action on material impacts related to own workforce, and effectiveness of those actions

The actions described above under the subtopics of adequate wages, work-life balance, and health and safety similarly apply to the material impacts referred to here, as they can also have a positive impact on human rights in relation to the working conditions mentioned above. We therefore refer to the actions described above.

Targets related to managing material negative impacts and advancing positive impacts

With a view to the positive impact of preventing accidents at work through occupational safety certification, we refer to the information provided under "Health and safety" above. We have not set any further targets.

Equal treatment and opportunities for all

Gender equality and equal pay for work of equal value

IROs S1-PI10, S1-NI6
Time horizon: Medium-term

Value chain:
(1) upstream
(2) own activities
(3) downstream

Policies related to equal treatment and opportunities for all

HOCHTIEF has documented equal opportunities and the prohibition of gender-based discrimination as strategic matters in the Code of Conduct and the Group directive on Anti-Discrimination, Anti-Harassment, and Anti-Bullying. These documents consequently also address the identified material impact of equal pay for comparable work regardless of gender. Responsibility for implementing the Group directive lies with the HOCHTIEF companies. Corporate Auditing audits business processes and risk management with regard to compliance with the directive.

The strategic approach in relation to the identified material impact concerning the gender balance follows from the HOCHTIEF Sustainability Plan 2025, and within that the "Workplace diversity" focus area. This focus area also informs the strategic approach for gender equality among engineering employees.

Responsibility for implementing this strategic approach lies with the HOCHTIEF companies. The policy is advanced by an international working group of experts from the personnel departments.

Taking action on material impacts related to own workforce, and effectiveness of those actions

Action specific to each matter is taken by the HOCHTIEF companies. Gender pay gap analyses are carried out to identify genderspecific pay differences in the European Group companies and at Turner, Flatiron, and CIMIC. Other action is taken on the basis of local law. The Australian Group company CIMIC is required by law to provide disclosure on any gender pay gaps. Equal pay is reviewed annually.

HOCHTIEF companies Turner, Flatiron, and CIMIC carry out annual analyses with regard to equal pay for equal work. In the German companies HOCHTIEF Aktiengesellschaft, HOCHTIEF Insurance Broking and Risk Management Solutions GmbH, HOCHTIEF Infrastructure GmbH, and HOCHTIEF Engineering GmbH, as well as in HOCHTIEF's Czech and Polish companies, equal pay is ensured by means of pay groups under collective agreements. In the exercise of their statutory codetermination rights, codetermination bodies review pay group allocations irrespective of gender.

The percentage of female engineering employees in the workforce is determined annually Group-wide. Action to be taken is decided by the international working group of HR experts according to local labor market conditions. At Group companies Turner, Flatiron, and CIMIC as well as at HOCHTIEF Infrastructure, we actively liaise with higher education institutions. In this way, we aim to ensure that the employment opportunities in engineering professions at HOCHTIEF are also brought to the attention of female students and female graduates.

Targets related to managing material negative impacts and advancing positive impacts

The HOCHTIEF Sustainability Plan 2025 includes a medium-term target for the identified material impact in relation to female managerial engineering trainees. This is for the percentage of female managerial engineering trainees among new recruits to be increased Group-wide (excluding Thiess) to $35 \%$ by 2025 , while reflecting the proportion of women in engineering professions on the labor market. In 2024, the percentage was $31 \%$. This is an entity-specific metric that is reported outside of the ESRS standard and excluding Thiess. The underlying data was collected on a decentralized basis in the relevant operating companies. At Thiess, the following calculation methodology was used for estimation: total for the year pro rata temporis based on the relevant number of months of Group employment.

Training and skills development

IROs: S1-PI11	Time horizon: Short-term	Value chain:
		$\bigcirc$ upstream	own activities

Policies related to equal treatment and opportunities for all
The expertise, dedication, and talent of our own employees are key success factors for HOCHTIEF.
This makes the provision of training and skills development a major element of the policy documented under the focus area of "Training, talent and recruiting" in the HOCHTIEF Sustainability Plan 2025. It also addresses the identified material impact.

Responsibility for implementation lies with the HOCHTIEF Group companies. Human resources experts from HOCHTIEF's international units regularly discuss the onward evolution of the policy in a working group. This is an ongoing process.

Taking action on material impacts related to own workforce, and effectiveness of those actions

HOCHTIEF companies offer training and professional development programs to provide effective support in relation to the identified material impact. The units in Germany also offer co-op degree programs. Efficiency of the action taken is assessed on an individual basis in the German and American HOCHTIEF companies using feedback from program participants. In addition, on the basis of the programs on offer in the various companies, the efficiency of professional development programs is discussed once every three months by experts in an international working group. Professional development programs must meet the following efficiency requirements: Professional development programs must be aligned with the business activities in each segment. The range of professional development programs must be supplemented with seminars for managers and high potentials in order to ensure succession planning. In addition, training on environmental sustainability topics and on diversity must be offered.

Targets related to managing material negative impacts and advancing positive impacts

To advance the identified material positive impact, HOCHTIEF has set a short-term goal of restructuring professional development programs for engineering professions, top managers, and high potentials. We pursue this through the ACS University launched within the HOCHTIEF Group in October 2024. For engineering professions, training programs of the various academies are planned to be available at all companies from 2025. Moreover, special professional development programs are to be implemented for top managers and high potentials. November 2024 saw the launch of the ACS University's Executive Leadership Program (ELP). The ELP is for top managers within the HOCHTIEF Group.

In another program, Future Lab, the European units target high potentials and managers' engaged in developing specific thematic clusters and task areas in order to actively support the HOCHTIEF Group's strategic development.

[^0]
[^0]: ${ }^{1}$ These groups are defined by the companies and are subject to the potential assessments in the respective units.

Employment and inclusion of persons with disabilities

PROs: S1-PI12

Time horizon: Short-term

Value chain:
upstream own activities downstream

Policies related to equal treatment and opportunities for all

The identified material impact in relation to offering positions for people with disabilities is addressed by the HOCHTIEF Code of Conduct in the focus area "Equality of opportunity" and by the Group directive on Anti-Discrimination, Anti-Harassment, and AntiBullying, which aims to create a non-discriminatory working environment and prevent discrimination. Responsibilities in this regard follow from the HOCHTIEF Code of Conduct, primarily for managers who are responsible for ensuring equal opportunities in their teams. The Group directive on Anti-Discrimination, Anti-Harassment, and Anti-Bullying requires the companies to implement processes to prevent discrimination, harassment, and bullying.

Implementation is the responsibility of the HOCHTIEF companies, with the involvement of staff from personnel departments and codetermination bodies, in accordance with applicable law.

Taking action on material impacts related to own workforce, and effectiveness of those actions

The various companies identify action to be taken to further promote inclusion and actively offer positions for people with disabilities. In the German units, for example, a Group-level agreement (the Integration Agreement) stipulates that people with disabilities must be considered as early as during the recruitment process.

The U.S. subsidiaries Turner and Flatiron have in-house network groups for members of various vulnerable groups. These are also intended to promote the inclusion and employment of people with severe disabilities. In all regions, Turner additionally deploys diversity advocates who liaise with the employer to safeguard the interests of vulnerable groups.

Monitoring the action taken is the responsibility of the HOCHTIEF companies. Under the Group-level agreement (the Integration Agreement), responsibility in the German units lies with the management of the company concerned in cooperation with disability officers. To this end, the disability officers are involved in the external recruitment process for people with severe disabilities. This is an ongoing process.

At Turner companies, action to be taken is identified in consultation with the network groups and the Turner diversity advocates. For the targeted recruitment of people with severe disabilities in Germany, HOCHTIEF works with occupational rehabilitation programs and the Federal Employment Agency, with the involvement of the codetermination bodies. Other HOCHTIEF companies do not have arrangements of this kind for promoting the recruitment of people with severe disabilities. The sole avenue for recruiting people with severe disabilities is for candidates to voluntarily state that they have a severe disability in the course of the recruiting process. Implementation is the responsibility of the companies, which also track effectiveness.

Targets related to managing material negative impacts and advancing positive impacts

The German units target the renegotiation and renewal of the Group-level agreement on the inclusion of people with disabilities in order to promote their employment and recruitment even better. As for the company agreement, management-with the support of the Corporate Department Human Resources-and the Group disability officers are presently in the process of negotiation. It is projected that this process will be completed in 2025. Implementation subsequent to this will be the responsibility of the respective German HOCHTIEF companies. No targets have been set for the remaining companies.

Measures against violence and harassment in the workplace

IROs: S1-PI13, S1-NI7,	Time horizon: Short- and medium-term	Value chain:
S1-O1	upstream	own activities	downstream

Policies related to equal treatment and opportunities for all

HOCHTIEF identified "Working environment" as a focus area in its Sustainability Plan 2025. This focus area is further elaborated in the Group-wide Code of Conduct, which places emphasis on enforcing occupational safety and the prohibition of discrimination in the workplace.

Taking action on material impacts related to own workforce, and effectiveness of those actions

HOCHTIEF has established a variety of communications channels to uncover and counteract potential shortcomings in these areas at an early stage. These include the option for employees to report matters and, if they wish, to do so anonymously. Under a HOCHTIEF procedural instruction, the channels apply to all Group companies.

Responsibility for implementing the communications channels lies with the HOCHTIEF Group companies as part of their own compliance management systems. Managers in Group companies liaise regularly with Corporate Compliance in order to respond to developments and make adjustments as necessary.

HOCHTIEF has defined additional short- and medium-term action to be taken on various fronts. This action is primarily preventive in nature, aiming to proactively minimize risks and prevent actual violations. Anti-discrimination training is offered throughout the Group and is mandatory in the European units as part of e-learning modules on the Code of Conduct. Under a zero-tolerance policy, HOCHTIEF follows up every tip-off and potential violation, and analyzes them for possible consequences in terms of employment law and compensation law.

HOCHTIEF provides positive incentives in order to motivate employees to report, voluntarily and without coercion, any suspicion of violence or harassment in the workplace. This is communicated, for instance, in training courses and in the rules of procedure for the HOCHTIEF whistleblower system, as well as in personal discussions with Corporate Compliance. Questions about employees' willingness to report matters were included in the 2024 employee survey. The findings will be used to infer action for improvement where necessary.

The HOCHTIEF Code of Conduct encourages each and every HOCHTIEF employee to be proactive and to report potential compliance violations, as this makes it possible to mitigate or prevent potential impacts or harm. No employee faces any penalty or reprisal for complying with the law and the provisions of the Code of Conduct.

We also see the implementation of the measures described above as an opportunity to combat unequal treatment and harassment and thus become a more attractive employer for qualified professionals. This enables us to improve output and productivity, and thus increase earnings.

Targets related to managing material negative impacts and advancing positive impacts

At present, we have not set any targets in relation to the material impacts. We consider the action taken to be sufficient.

Diversity

IROs: S1-PI14, S1-PI15,	Time horizon: Medium-term	Value chain:
S1-PI15, S1-NI8		$\bigcirc$ upstream	own activities

Policies related to equal treatment and opportunities for all

The policy in relation to the identified material impacts with regard to employee diversity is documented in the HOCHTIEF Code of Conduct, in the Group directive on Anti-Discrimination, Anti-Harassment, and Anti-Bullying, and in the HOCHTIEF Sustainability Plan 2025 ("Workplace diversity"). Responsibility for implementing the policies lies with the HOCHTIEF companies.

The policy is being advanced by a working group of international human resources experts from the companies, which also discusses action to implement it and its implementation in the units. The working group meets once a quarter.

Taking action on material impacts related to own workforce, and effectiveness of those actions

Diversity training and programs are offered throughout the Group. As insufficient action can have a negative impact on diversity, the companies work continuously to fine-tune training and programs. This also includes programs to promote intergenerational collaboration in the German units (Tandem Program) and at CIMIC (Mentoring Program). At the Turner and Flatiron companies, the topic of diversity among employees is additionally addressed in network groups that represent the interests of vulnerable groups. Both Turner and CIMIC take action to provide employment opportunities for people at risk of social exclusion. Neutral wording in job advertisements for these companies ensures that employment opportunities are offered regardless of age, gender, disability, ethnic origin, religion, belief, or sexual orientation.

The effectiveness of the measures is verified by the companies. Under applicable law, the codetermination bodies in the European units play a key part in this verification.

Targets related to managing material negative impacts and advancing positive impacts

Promoting diversity in the context of recruitment and employment is an ongoing process, responsibility for which lies with the companies on the basis of local law; primarily, this responsibility falls to the personnel departments. One medium-term quantitative target is contained in the HOCHTIEF Sustainability Plan. This relates to a 50\% increase in the percentage of women in senior management positions by 2025. The proportion of women in senior management positions was $13 \%$ in 2019. By 2025, the proportion of women in such positions is to rise to $20 \%$, taking into account the rate of increase. Across the Group, the percentage of women in senior management positions was $17.6 \%$ in 2024. This corresponds to $65.7 \%$ target achievement at present. The underlying data was collected on a decentralized basis in the relevant operating companies. Thies is not included as it is a target out of the HOCHTIEF Sustainability Plan 2025.

The data reported below is taken from HOCHTIEF's standardized annual reporting. Quantitative data collection is based on various human resources information or payroll accounting systems at Group companies. The aggregated data is collected using standardized questionnaires and compiled centrally on a quarterly or annual basis. The total number of employees includes white-collar employees, blue-collar employees, apprentices, work-study students, and interns. With regard to Turner, it should be noted that workers employed in Turner projects by arrangement with a trade union or whose employment contracts are based on collective agreements are not included in the total number of employees. Exceptions to the total number of employees are listed below the tables. Furthermore, Thiess is included in its entirety in the following metrics where the metric concerned relates to the year-end. Exceptions to the pro rata temporis inclusion of Thiess in period-related metrics are listed below the tables.

S1-6

Characteristics of the undertaking's employees

Total employees by head count and gender as of December 31, 2024

With regard to the number of employees in the financial statements, please refer to the average number of employees ${ }^{1}$ in the financial section of the report.

Gender	Number of employees (headcount)	White-collar employees	Blue-collar employees
Male	46,286	21,705	24,581
Female	10,583	8,533	2,050
Other	6	6	-
Not reported	-	-	-
Total employees	$\mathbf{5 6 , 8 7 5}$	$\mathbf{3 0 , 2 4 4}$	$\mathbf{2 6 , 6 3 1}$

${ }^{1}$ The total number includes white-collar employees, blue-collar employees, apprentices, work-study students, and interns. Apprentices, work-study students, and interns are categorized as white-collar and blue-collar employees as appropriate.

Note: The underlying data was collected on a decentralized basis in the relevant operating companies.

Number of employees in countries where the undertaking has at least 50 employees representing at least 10\% of its total number of employees, as of December 31, 2024

Country	Number of employees (head count)
Australia	$\mathbf{2 1 , 7 5 1}$
USA	$\mathbf{1 2 , 6 2 1}$
India	$\mathbf{7 , 0 2 4}$
Indonesia ${ }^{1}$	$\mathbf{5 , 3 9 1}$
Germany ${ }^{1}$	$\mathbf{3 , 4 4 6}$

[^0]
[^0]: ${ }^{1}$ Country not subject to the criteria of the reporting standard as it employs less than $10 \%$ of HOCHTIEF's total workforce.
Note: The underlying data was collected on a decentralized basis in the relevant operating companies.

Employees by contract type, broken down by gender (head count) as of December 31, 2024

Number of employees	Female	Male	Other ${ }^{1}$	Not disclosed	Total
Number of employees (head count)	10,583	46,286	6	-	$\mathbf{5 6 , 8 7 5}$
Number of permanent employees (head count)	9,689	41,267	5	-	$\mathbf{5 0 , 9 6 1}$
Number of temporary employees (head count)	894	5,019	1	-	$\mathbf{5 , 9 1 4}$
Number of non-guaranteed hours employees
(head count)	411	2,331	1	-	$\mathbf{2 , 7 4 3}$

${ }^{1}$ Gender as specified by the employees themselves.
Note: The underlying data was collected on a decentralized basis in the relevant operating companies.

Information on employees by contract type, broken down by region ${ }^{1}$ (head count) as of December 31, 2024

Number of employees	America	Australia- Oceania	Asia	Europe	Total
Number of employees (head count)	14,017	21,965	15,631	5,262	$\mathbf{5 6 , 8 7 5}$
Number of permanent employees (head count)	13,792	19,230	13,067	4,872	$\mathbf{5 0 , 9 6 1}$
Number of temporary employees (head count)	225	2,735	2,564	390	$\mathbf{5 , 9 1 4}$
Number of non-guaranteed hours employees	97	2,522	-	124	$\mathbf{2 , 7 4 3}$

${ }^{1}$ Note on the regions: These relate in each case to continents. The number of non-guaranteed hours employees corresponds to a subset of permanent and temporary employees and thus does not represent a third subgroup of the total number.

Note:The underlying data was collected on a decentralized basis in the relevant operating companies.

Employee turnover (entries and exits) 2024

	Number of employees
Entries	20,571
Exits	22,116

[^0]Turnover reflects our segments and workforce structure. Our segments engage in project activities of finite duration. This has an impact on turnover.

We have included Thiess, which has been consolidated since May 1, 2024, on the basis of the year-end figures for the prior year, taking into account entries and exits.

[^0]: Note: The underlying data was collected on a decentralized basis in the relevant operating companies. At Thiess, the following calculation methodologies were used for estimation: total for the year pro rata temporis based on the relevant eight months of Group employment.

S1-8

Collective bargaining coverage and social dialogue within the EEA

Reporting on collective bargaining coverage and social dialogue

	Collective bargaining coverage	Social dialogue
Number of employees	Employees-EEA (for countries with $>50$ empl. representing $>10 \%$ total empl.).	Workplace representation (EEA only) (for countries with $>50$ empl. representing $>10 \%$ total empl.).
Coverage rate
$0-19 \%$
$20-39 \%$	Not applicable	Not applicable
$40-59 \%$
$60-79 \%$
$80-100 \%$

Notes:
No EEA European Economic Area) country in which HOCHTIEF has a presence meets the criterion for the ESRS reporting standard of more than 50 employees and more than ten percent of the total workforce.
The underlying data was collected on a decentralized basis in the relevant operating companies.

HOCHTIEF has a European Works Council as required by law. An additional agreement on representation by the European Works Council has not been concluded.

S1-9

Diversity metrics

The gender distribution at top management level and the age distribution among employees are presented in the following. The information in relation to top management level relates to the first and second reporting level below corporate management in each company.

Quota of employees in senior management positions in the HOCHTIEF Group as of December 31, 2024

	Number of employees	$\%$
Total	721	$\mathbf{1 0 0 . 0}$
Men	594	$\mathbf{8 2 . 4}$
Women	127	$\mathbf{1 7 . 6}$

Note: The underlying data was collected on a decentralized basis in the relevant operating companies.

Employees by age interval in the HOCHTIEF Group as of December 31, 2024

	Number of employees
under 30 years	$\mathbf{1 2 , 7 0 5}$
30 - 50 years	$\mathbf{3 1 , 2 4 2}$
over 50 years	$\mathbf{1 2 , 9 2 2}$

Notes:
Table does not include the "other" category (six employees).
The underlying data was collected on a decentralized basis in the relevant operating companies.

S1-10

Adequate wages

100\% of employees are paid adequate wages.

Note: The underlying data was collected on a decentralized basis in the relevant operating companies. The calculations for the European companies are based on an assumed 170 average working hours per month. In the units outside Europe, in accordance with local law, the calculations also include different parameters such as daily or monthly salary.

S1-12

Persons with disabilities

Employees with disabilities by gender (\%) ${ }^{1}$ as of December 31, 2024

	$\%$	Employees in America and Europe
Total	5.1	$\mathbf{1 8 , 4 7 8}$
Men	4.5	$\mathbf{1 3 , 6 6 9}$
Women	6.7	$\mathbf{4 , 8 0 9}$

${ }^{1}$ Table does not include the "other" category (three employees in the US and Europe).
Notes:
The disclosures are made subject to legal restrictions on the collection of data. Employees in Australia and Asia are not legally required to disclose their disability status, which is why the quota relates solely to the companies in America and Europe. Variations in local law were taken into account when collecting the data. For example, the processes for recognizing a severe disability in Germany differ from those in the USA.
The underlying data was collected on a decentralized basis in the relevant operating companies.

S1-13

Training and skills development metrics

Employees who participated in regular performance and career development reviews, broken down by gender (\%)

	$\%$
Total	$\mathbf{5 3 . 0}$
Men	$\mathbf{4 6 . 9}$
Women	$\mathbf{7 9 . 3}$

Notes:
The underlying data was collected on a decentralized basis in the relevant operating companies. At Thiess, only the relevant eight months of Group employment were included. White-collar employees regularly take part in performance and career appraisals. This is often not the case for blue-collar employees. The calculation nevertheless included all employees. See table under 51-6.
${ }^{2}$ Total number of employees by head count and gender as of December 31, 2024", "White-collar employees" and "Blue-collar employees" columns.

Average number of training hours per employee by gender in 2024

	Number average training hours
Total	22.7
Men	23.3
Women	20.3

Notes:
Training hours for blue-collar employees are not recorded in the companies' learning management systems. The underlying data was collected on a decentralized basis in the relevant operating companies. In relation to the following units, the following calculation methodologies were used for estimation: total for the year pro rata temporis based on the relevant number of months (eight) of Group employment (Thiess) and additionally extrapolation for the training hours of blue-collar workers (CIMC and Thiess).
The above-mentioned extrapolation is based on mandatory occupational safety training at the operational units of CIMC and Thiess. The total figure was extrapolated from the number of blue-collar employees and the duration and frequency of the mandatory training.

S1-14

Health and safety metrics

Percentage of own workforce who are covered by the undertaking's health and safety management system based on legal requirements and/or recognized standards or guidelines

Notes:
The underlying data was collected on a decentralized basis in the relevant operating companies using the figures as of the December 31, 2024 reporting date. The reported occupational health and safety management systems (ISO 45001, VCA, or 4MIS BaL) are certified by accredited institutions such as BSI group or DOB GmbH. The data for the metrics was collected for employees and for a subgroup of non-employees directly integrated into the Turner organization. This relates to 2,897 non-employees employed in Turner projects by arrangement with a trade union or whose employment contracts are based on collective agreements.

Metrics on work-related accidents and occupational illnesses

Number of fatalities from work-related injuries and work-related ill health	1
Number of fatalities from work-related injuries and work-related ill health of value-chain workers	3
Number of recordable work-related accidents ${ }^{1}$	329
Rate or recordable work-related accidents	2.67
Number of cases of recordable work-related ill health ${ }^{2}$	76
Number of days lost to work-related injuries and fatalities ${ }^{3}$ from work-related accidents	$4,124.7$
Number of severe work-related accidents ${ }^{4}$	48

${ }^{1}$ With regard to the number of recordable work-related accidents, we refer here to all work-related accidents that led to an injury and subsequent medical treatment (total recordable cases/TRC). These are shown in the following table.
${ }^{2}$ Due to legal restrictions on data collection, no lost days can be recorded for notifiable work-related illnesses.
${ }^{3}$ Fatal work accidents are included in the LTFR at HOCHTEF if the fatality does not occur on the day of the accident.
${ }^{4}$ From 2025, HOCHTEF plans to report recordable work-related accidents in additional detail and -if this is in line with the reporting standard - possibly also outside of the reporting standard (company-specific), with the "severe work-related accidents" metric. The number of severe work-related accidents is already recorded as a companyspecific metric for 2024. For the time being, however, its is partly based on assumptions. It is defined as including injuries medically classified as severe, primarily based on: - Hospitalization

• Amputation
• Loss of consciousness
• Burns over 10\% or more of the total body surface area
• Accidents involving more than two workers

As companies outside Europe have not yet been able to fully determine the number of serious accidents based on the reporting standard, serious accidents are equated with lost days accidents. This assumption applies to companies outside the European Economic Area.

Notes:
The underlying data was collected on a decentralized basis in the relevant operating companies.
The data for the metrics was collected for employees and for a subgroup of non-employees. This relates to non-employees working on Turner projects by arrangement with a trade union or whose employment contracts are based on collective agreements.
In relation to Thesis, the figures include the data from May 2024 onward.
The data for the metrics was collected for employees and for a subgroup of non-employees directly integrated into the Turner organization. This relates to 2,897 non-employees employed in Turner projects by arrangement with a trade union or whose employment contracts are based on collective agreements.

S1-15

Work-life balance

The percentage of own employees entitled to take family-related leave (maternity leave, paternity leave, parental leave, and carers' leave), the percentage of entitled employees that took family-related leave, and a breakdown by gender are presented in the following.

In the European units, all employees are entitled to family-related leave by law.

Employees entitled to family leave

	Number of employees	Share of total number of employees $^{1}$
Entitled employees	$\mathbf{5 6 , 8 7 5}$	$\mathbf{1 0 0 \%}$

${ }^{1}$ The percentage relates to employees entitled to maternity and parental leave in accordance with local law in each country.
Note: The underlying data was collected on a decentralized basis in the relevant operating companies.

Family leave taken in the HOCHTIEF Group in 2024

Number of employees	Women	Men	Number of employees
Total $^{1}$	$\mathbf{2 , 1 5 3}$	$\mathbf{2 , 4 7 9}$	$\mathbf{4 , 6 3 2}$
Maternity leave and parental leave $^{2}$	$\mathbf{4 2 0}$	$\mathbf{1 , 0 9 1}$	$\mathbf{1 , 5 1 1}$
Carers' leave	$\mathbf{1 , 7 3 3}$	$\mathbf{1 , 3 8 8}$	$\mathbf{3 , 1 2 1}$

${ }^{1}$ As a percentage of the total number of entitled employees, $20.3 \%$ of women and $5.4 \%$ of men have taken family leave, corresponding to a total of $8.1 \%$ of the total workforce.
${ }^{2}$ With regard to the information on maternity leave and parental leave, it should be noted that we have a high proportion of predominantly male blue-collar employees; see S1-6.
Note: The underlying data was collected on a decentralized basis in the relevant operating companies. At Thies, only the relevant eight months of Group employment were included.

S1-16

Remuneration metrics (pay gap)

Gender Pay Gap in the HOCHTIEF Group in 2024

Gender Pay Gap ${ }^{1}$	6.7

${ }^{1}$ Calculation for each gender: gross total of the remuneration components of all employees divided by the corresponding monthly FTEs of the reference months of the gross total, the result divided by the average monthly working hours by region. The resulting hourly rates by gender are then used in the following ratio: 100\% (average gross hourly pay level of male employees minus average gross hourly pay level of female employees, divided by average gross hourly pay level of male employees times 100). The gross total of the compensation components of all employees from the payroll results for the entire year; employees who joined or left during the year are included with their actual gross total.

Notes:
Definition of remuneration components: fixed salary, payments under collective agreements, variable components $=$ STIP, LTIP, gratification, bonuses, incentives The data for the metrics was collected for employees and for a subgroup of non-employees directly integrated into the Turner organization. This relates to 2,897 non-employees employed in Turner projects by arrangement with a trade union or whose employment contracts are based on collective agreements.
The underlying data was collected on a decentralized basis in the relevant operating companies. The calculations are based on assumed average working hours per month per region. The gender pay gap indicator must be viewed in the context of the employee structure (see S1-6 Employees by gender) and the regional locations of the HOCHTIEF units (see S1-6 Employees by region). Points to note include the large proportion of male blue-collar employees and the fact that the workforce is concentrated in Australia and Asia.

S1-17

Incidents, complaints, and severe human rights impacts

	Total number of incidents of discrimination/harass- ment	Number of complaints, excluding discrimination	Total amount of most rele- vant fines as a result of the incidents	Number of severe human rights incidents
European companies	3	15	-	-
Turner	4	76	-	-
Flatiron	8	69	-	-
CIMIC	14	313	-	-
Summary	$\mathbf{2 9}$	$\mathbf{4 7 3}$	-	-

Note: The underlying data was collected on a decentralized basis in the relevant operating companies.
In the reporting year, 29 cases of discrimination and 473 grievances on other topics were received via the HOCHTIEF whistleblower systems. Any complaints via external points of contact are included. There were no material fines, sanctions, or compensation payments in this connection. No severe human rights inci-dents (forced labor, human trafficking, or illegal child labor) were identified in the reporting year. Hence, there were no related fines, penalties, or compensation payments.

ESRS S2
Workers in the value chain

Clear expectations of our business partners

We expect our business partners in the value chain, both upstream and downstream, to act with fairness and integrity in all aspects of their business activities. For us, this also means that they recognize social responsibility toward their own organization and their workers.

This is the basis for our policies, which we have formulated in our binding Code of Conduct for Business Partners.

Impacts of the HOCHTIEF strategy and business model

The actual and potential impacts of our strategy relate to workers in the upstream and downstream value chain.

Workers in the value chain

Our disclosures relate to the following workers, who may be affected by the material impacts relating to our own operations and the value chain, as well as by products, services, and our business activities:

1. Upstream value chain employees who work at our operating locations but are not part of the HOCHTIEF workforce, i.e., who are not self-employed workers or workers provided by third-party undertakings primarily engaged in employment activities. We include this group in relation to all material impacts we have identified.
2. People who work for HOCHTIEF in the upstream value chain in the production or supply of construction material products relevant to our activities (such as steel, concrete, timber, cement, aggregates, asphalt, and glass). We include this group in relation to the following identified material impacts: S2-PI1-2, S2-PI5-6, S2-NI1-4.
3. People working for entities in the downstream value chain (e.g., subcontractor employees engaged in operating buildings or infrastructure). We include this group in relation to the following identified material impacts: S2-PI1-2, S2-PI5-6, S2-NI1-4.

4. Upstream value chain workers in the operations of a joint venture involving a HOCHTIEF company who are not employed by a HOCHTIEF company. We include this group in relation to all material impacts we have identified. In contrast, we classify workers employed by a HOCHTIEF company and those who work for joint operations within the HOCHTIEF Group as belonging to our own workforce.

5. Workers who (within the prior categories) are particularly vulnerable to negative impacts, such as trade unionists, young workers, or women. We include this group in relation to the following identified material impacts: S2-PI1-2, S2-PI5-6, S2-NI1-4.

In relation to the material impacts we have identified, we do not generally distinguish between the above groups, as the impacts can affect all workers equally regardless of specific characteristics or circumstances. With regard to the inclusion of the above groups in HOCHTIEF training programs, however, we currently focus on workers in groups 1, 3 and 4 . We have due regard here to our project-based business, in which most workers in these groups are engaged.

Based on our double materiality assessment, the material impacts on value chain workers are as follows.

Material impacts

The material impacts were identified in the materiality assessment for 2024 conducted by HOCHTIEF in accordance with the double materiality principle. HOCHTIEF's assets and business activities along entire value chain were assessed for actual and potential impacts, risks, and opportunities. This process is described in detail in the ESRS 2 General Disclosures section.

Working conditions

Positive impacts (PI)
Negative impacts (NI)

Adequate wages

S2-PI1 Leading by example with regard to adequate wages can result in a positive impact on value chain workers. (potential; value chain groups 1 to 5 )

Health and safety

S2-PI2 Ensuring a safe work environment for the workers in the value chain by providing personal protective equipment (PPE) leads to a positive impact on health and safety. (actual; value chain groups 1 to 5)

S2-PI3 Increased training and awareness of health and safety issues among contractors can raise awareness and have a positive impact on health and safety.
(actual; own activities, value chain groups 1, 3, and 4)

S2-NI1 The workplace can have a negative impact on the health of workers in the value chain if adequate PPE is not provided.
(potential; value chain groups 1 to 5)
S2-NI2 Construction projects pose a high danger of severe accidents. This has a negative impact on all construction site workers.
(actual; value chain groups 1 to 5)
S2-NI3 Air pollution from dust and machine use has a negative impact on the health of workers on construction sites. (Further information also under E2-NI1.)
(actual; value chain groups 1 to 5)

Equal treatment and opportunities for all

Positive impacts (PI)
Training and skills development
S2-PI4 Involving value chain workers in HOCHTIEF's training, e.g. on health and safety, can have a positive impact on skill levels and employability of workers in the value chain. (actual; own activities, value chain groups 1, 3, and 4)

Measures against violence and harassment

S2-PI5 Requiring all suppliers and subcontractors to take action against violence and harassment (for example, through the Code of Conduct for Business Partners) can have a positive impact on value chain workers.
(actual; value chain groups 1 to 5)

S2-PI6 Providing value chain workers with an anonymous means of reporting discrimination, harassment, and violence has a positive impact on the workplaces of value chain workers.
(actual; value chain groups 1 to 5)

Diversity

S2-NI4 Insufficient measures to foster diversity through training and programs can have negative impacts on diversity in the value chain.
(potential; value chain groups 1 to 5 )

Management of impacts, risks, and opportunities

Our fundamental strategic approach and the management of the above-mentioned material impacts are contained in the HOCHTIEF Group directives and HOCHTIEF Codes of Conduct. These are presented in general below under S2-1 and in particular with regard to their application together with the relevant impacts under S2-4 and S2-5.

Interaction with strategy and business model

Our strategy takes into account the interests of our employees from the outset. We will make future changes to our strategy in line with developments with regard to the interests of these workers. We derive actions and targets based on the interests of value chain workers.

S2-1

Policies related to value chain workers

Our policies are based on our business activities. These include construction and other services on projects and in service units. Value chain workers are also deployed in this connection. These workers therefore contribute to our business success. Their interests, views, and rights inform our policies.

We ensure that the interests, views, and rights of value chain workers inform our strategy by pursuing the following strategic approaches within the HOCHTIEF Group:

• In 2023, we published our Human Rights Statement of Principles. Under this Statement of Principles, HOCHTIEF commits to making commensurate efforts to avoid adverse impacts on the human rights of individuals involved in our global operations, such as our value chain workers. In our Human Rights Statement of Principles and the above-mentioned Group directive on Human Rights Governance, we take full account of internationally recognized standards and describe our due diligence processes for the active prevention of human rights violations. The Statement of Principles was adopted by resolution of the Executive Board; its implementation is the responsibility of the relevant departments in Group companies.
• HOCHTIEF requires all joint venture partners and subcontractors (collectively "business partners") to provide their employees with a safe and healthy working environment. Business partners are obliged to have procedures in place to identify and evaluate health and safety risks in the context of their activities and to prevent, detect, and mitigate those risks. This policy is set out in the HOCHTIEF Human Rights Statement of Principles and is also enshrined in our HOCHTIEF Code of Conduct for Business Partners. All Group companies are thus required to make reasonable efforts to respond, in accordance with that directive, to human rights matters such as incidents and potential violations. In the event of any risks and/or violations, business partners are called upon to communicate them to HOCHTIEF and work with HOCHTIEF to seek suitable solutions. This includes disciplinary measures against employees or third parties, as well as the possibility of compensation for any harm incurred by those affected. The Code of Conduct for Business Partners was adopted by resolution of the Executive Board; its implementation is the responsibility of the relevant departments in Group companies.
• We reject all forms of human trafficking, forced labor, and illegal child labor. This policy is documented in the HOCHTIEF Code of Conduct for Business Partners. Remedial action is detailed in the previously mentioned Group directive on Human Rights Governance and the Code of Conduct for Business Partners.
• We want to help ensure that value chain workers are paid adequate wages, too. This strategic approach is set out in the Code of Conduct for Business Partners.
• Our commitment to diversity also includes value chain workers. The Code of Conduct for Business Partners requires business partners to oppose any form of discrimination, bullying, or harassment. This includes any form of discrimination on the basis of, for example, race, ethnicity, religion, language, gender, sexual identity or orientation, national or social origin, ideology, political opinion, trade union membership, age, health condition, disability, or personal or social circumstances.

• Value chain workers need to be able to safeguard their interests. That is why we fully recognize the formation of interest groups in accordance with local laws. Under the Code of Conduct for Business Partners, our business partners must respect their employees' right to nominate employee representatives, join trade unions, engage in collective bargaining, and form works councils. In addition, we enable all value chain workers to report matters-anonymously if they wish-via a whistleblower system. The strategic basis for this is the HOCHTIEF Code of Conduct for Business Partners; it is also enshrined in the Human Rights Statement of Principles and the Rules of Procedure. In addition, the requirement for our employees to include value chain workers in reporting channels follows from the HOCHTIEF Code of Conduct and the Group directive on the Compliance Organization.

• Occupational safety and health training is a prerequisite for safe working. The Code of Conduct for Business Partners includes the requirement for our business partners to train their employees sufficiently before they start work.

All directives contain clear, unequivocal requirements and descriptions of processes for monitoring compliance.

S2-2

Processes for engaging with value chain workers about impacts

We engage with value chain workers mainly through representatives, as direct engagement would generally be highly involved and time-consuming. In this connection, we take account of the material positive and negative actual or potential impacts of our activities in relation to working conditions as well as equal rights and opportunities for all.

HOCHTIEF implements the following processes:

• We regard the following HOCHTIEF departments and experts as representatives of these employee groups: the Procurement and Occupational Safety and Health departments. These departments have processes and procedures that also cover value chain workers:
• Procurement ensures that, across all units, business partners acknowledge the Code of Conduct for Business Partners. In this way, Procurement, as a key player in project execution, makes an important contribution to ensuring the mitigation of any potential negative impact of our business activities on material working conditions and equal opportunities for value chain workers.
• Throughout the Group, prequalification must be obtained with regard to occupational safety, health, and environmental protection before any contract is awarded. This prequalification is also a requirement of the ISO 45001 standard. The results are critical to the contract award decision and the ongoing working relationship with a contractor.
• As part of the ESG risk management process in supplier selection, Procurement works with external partners to support a supply chain ESG risk analysis. Part of this process is a media screening, which identifies and evaluates published information on risks and/or violations related to the payment of wages as well as the health and safety of workers along the value chain. The process is applied in the European units.

S2-3

Processes to remediate negative impacts and channels for value chain workers to raise concerns

HOCHTIEF uses due diligence processes to counter identified risks and/or violations of the standards of the Code of Conduct for Business Partners. These due diligence processes are provided for in the above-mentioned Code of Conduct. HOCHTIEF thus relies on communication, transparency, and the readiness of our business partners to collaborate in remediating negative impacts.

In the event that negative impacts for value chain workers arise within the Group, we have established the following processes and channels to raise concerns and report matters in relation to their working conditions, equal treatment, or equal opportunities:

• Continuous process as part of HOCHTIEF's Human Rights Corporate Management System: We identify the human rights risks arising in our business activities that may also impact value chain workers. Under the Group directive on Human Rights Governance, the managements of Group companies are responsible for ensuring that functional departments are appropriately involved in the human rights and environmental risk analysis in order to identify, assess, and prioritize such risks and that they take action to implement the human rights principles and prevent human rights risks. In fulfilling these responsibilities, they are supported by the corporate departments and/or functions of their company. We consider this approach to be effective, as it follows a mandatory, formalized process.
• Whistleblower systems that allow concerns to be openly raised with HOCHTIEF, on both a centralized and a decentralized basis, via an online platform, a hotline, or email: These provide a direct channel for value chain workers to raise concerns and report issues. Submissions can also be made anonymously and we assure whistleblowers full protection against any reprisals. In a formalized process, HOCHTIEF companies ensure that all issues reported are carefully investigated and appropriately dealt with so that suitable remedial measures can be taken. The process similarly provides for whistleblowers to be involved in follow-up and to receive feedback. Reported matters continue to be worked on until they are classified as resolved. Access is facilitated by making the whistleblower systems publicly known, accessible, and transparent. Whether value chain workers are aware of and trust in the systems is assessed in the companies on a decentralized basis and is not tracked centrally. Value chain workers on projects at HOCHTIEF Infrastructure GmbH, Germany, are additionally informed about the whistleblower system by means of fliers containing QR codes.

The effectiveness of our whistleblowing system is regularly confirmed by an internal audit conducted by Corporate Auditing. In addition, an external surveillance audit was successfully conducted in the 2024 reporting year and led to certification of the European HOCHTIEF companies to ISO 37002.

S2-4 I S2-5

Policies, actions, and targets related to material impacts on value chain workers

Working conditions

Adequate wages

IROs: S2-PI1
Time horizon: Short-, medium-term

Value chain:

(3) upstream
own activities
downstream

Policies related to working conditions

The policy with regard to adequate wages for value chain workers is documented in the Code of Conduct for Business Partners. Our business partners must ensure that their employees' wages and benefits are fair; that is, that they comply with applicable national and local laws as well as with contractual agreements. Fair pay requires the payment at all times of the applicable minimum wage under local law. Rather than sole reliance on audits as described in the following, we believe it is important to lead by example, by paying fair wages to our employees. This is reflected in the material impact under S2-PI1.

Taking action on material impacts related to value chain workers, and effectiveness of those actions

In Europe, we track the effectiveness of the policy in audits that rotate among projects and are conducted at least twice a year on the basis of interviews. Additionally, at our European units, we already carry out extended, risk-based, extended prequalification for suppliers from countries where the United Nations has identified a heightened risk of human rights violations. Fair practices in the payment of wages are part of the questionnaire used in this process.

We are not yet able to verify the effectiveness of our actions Group-wide. The results of our adequate wage calculations for our employees are made transparent by publication in this Annual Report. Please refer to the information in the Own workforce section under S1-4/S1-5: Working conditions-adequate wages. In this way, we would like in the short and medium term to also encourage our business partners across the Group to review and, if necessary, adjust their pay structure with a view to ensuring adequate wage levels. In collaboration with the HOCHTIEF companies, we intend to develop methodologies to even more fully ensure the effectiveness of our policy in the future.

Targets related to managing material negative impacts and advancing positive impacts

We aim to continue promoting the payment of adequate wages throughout the value chain. However, we have not yet formulated any targets as we first wish to assess the effectiveness of the activities described above.

Health and safety

IROs: S2-PI1-3, S2-NI 1-2,	Time horizon: Short-, medium-, and long-term	Value chain:
S2-NI1-3		upstream

In terms of strategy, the matters we have identified as material follow from the Group directive on Occupational Safety, Health, Environmental and Climate Protection and the HOCHTIEF Code of Conduct for Business Partners. Safeguarding the health of third-party employees-which also includes the health impacts of occupational accidents-is hence part of the Group strategy. In addition, under our Code of Conduct for Business Partners, our business partners along the value chain are required to enable their employees to work safely and, to that end, to provide them with the necessary equipment, including personal protective equipment (PPE). We operationalize this strategic approach by tracking, among the material matters we have identified, the consequences of serious accidents, the relevance of PPE, and the increased provision of training at our contractors. This subject area also includes the negative health impact of air pollution. Particulates and exhaust gases, for example, can cause respiratory and organ damage. (Further information on this topic can be found in the Pollution section under E2-NI1) In addition, the HOCHTIEF Sustainability Plan 2025 addresses strategic focus areas aimed at improving occupational safety performance (the accident frequency) for value chain workers.

Taking action on material impacts related to value chain workers, and effectiveness of those actions

Over 99\% od HOCHTIEF projects are delivered in accordance with certified occupational safety and health management systems. These apply also to our business partners. In the case of construction joint ventures, the joint venture partners specify throughout the Group those management systems to be used for a project at its inception.

Value chain workers are briefed on project-related safety, health hazards, and operating procedures before starting work.
Where multiple contractors are underway on a construction site in parallel, safety coordinators must be engaged in addition to the usual safety experts. In this way, we aim to rule out overlapping hazards.

Occupational safety risks are preferably minimized by technical and organizational means. Next, based on risk assessments, personal protective equipment (PPE) specified at the start of a project is supplemented as needed with additional items such as fall prevention equipment. Hence, protective equipment geared to project requirements has a positive impact on health and safety. In order to create a safe working environment, it may also be necessary to supplement technical and organizational protective measures with PPE. Where contractors are supported in the provision of PPE, instruction is given on the proper use of the equipment.

Construction projects pose a high risk of severe accidents. That means precise analysis of potential hazards is of paramount importance. Contractors identify trade-specific risks as part of risk analysis. Where necessary, HOCHTIEF conducts supplementary project-specific risk analyses. HOCHTIEF works closely with contractors to ensure that they take all project-specific hazards into account in their risk analyses. Occupational safety documents such as risk analyses, assembly instructions, and proof of instruction are submitted to HOCHTIEF by contractors at the start of a project.

Occupational safety matters are addressed in regular project meetings, attendance of which is mandatory for contractors. With these activities, we have implemented an initial approach to training employees of our business partners.

On-site implementation is verified in regular inspections by safety experts, construction managers, project managers and, where applicable, safety coordinators. In some countries, local occupational safety law requires public inspectorates to take part in health and safety inspections.

Targets related to managing material negative impacts and advancing positive impacts

Our short-, medium- and long-term goal is accident-free project delivery. This is also enshrined in the HOCHTIEF Sustainability Plan 2025, which includes Thiess. We are fully aware that accidents always cause suffering and, according to severity, can have far-reaching consequences for the family and friends of the victims as well as for others working on the project. It would not be appropriate to distinguish here between own workers and value chain workers.

Outside of the ESRS standards, we have specified improving the accident rate at our contractors through more training and increased health and safety awareness as a medium-term target in our Sustainability Plan 2025. We did not engage with value chain workers or their representatives in setting this target, but the target is publicly and thus transparently communicated. Target progress is not quantitavely measurable.

As a metric for this purpose-outside of the ESRS-we report the accident rate (LTIFR) for contractors. Thiess is included in the calculation of the metric. It is reported under "Further information" in an update to the HOCHTIEF Sustainability Plan 2025 under "Social/Update on selected targets."

Equal treatment and opportunities for all

Training and skills development

IROs S2-PI2, S2-PI3	Time horizon: Medium-term	Value chain: upstream own activities downstream

Policies related to equal treatment and opportunities for all

Training in areas such as occupational safety and health improves the qualification level of the workforce. That applies to value chain workers as well as our own workers. The Code of Conduct for Business Partners includes the requirement for our business partners to train their employees sufficiently before they start work. Through this policy, value chain workers are included in HOCHTIEF training programs.

We are not yet able to verify the effectiveness of our strategy Group-wide. The policy is driven forward by the departments responsible for occupational safety in collaboration with the specialist teams for professional development.

Taking action on material impacts related to value chain workers, and effectiveness of those actions

Our action is directed at educating value chain workers-through occupational safety training-in the same way as our own employees. We aim to implement this medium-term measure by 2025, including at Thiess. It is documented in the HOCHTIEF Sustainability Plan 2025. HOCHTIEF companies Turner and CIMIC have already integrated direct subcontractors into their occupational safety training program. Participation is tracked in learning management systems.

Targets related to managing material negative impacts and advancing positive impacts

We have not yet set any targets in relation to the material impact that we have identified.

Measures against violence and harassment

IROs S2-PI5, S2-PI6	Time horizon: Short-, medium-term	Value chain: upstream own activities downstream

Policies related to equal treatment and opportunities for all

The clear expectation that business partners and their own business partners do not tolerate inacceptable treatment of workers, such as sexual harassment or violence, is contained in the Code of Conduct for Business Partners itself. Our business partners must not exploit anyone. They must not engage in business with any company, person, or organization that disregards the standards and principles of human rights on which the Code of Conduct is based. They are required to commit, within the scope of prevailing laws and statutes, to opposing all forms of discrimination, bullying, or harassment. They ensure equal treatment and opportunities for employees, job applicants, and business partners. Furthermore, they are called upon to create an atmosphere of respectful mutual relations and to rigorously oppose any direct or indirect discrimination.

Taking action on material impacts related to value chain workers, and effectiveness of those actions

HOCHTIEF already implemented a fully accessible whistleblower system several years ago. It is available to all workers in the value chain as an overarching measure for reporting matters and grievances relating, for instance, to discrimination, harassment, and violence. The whistleblower system is brought to the attention of value chain workers, for example, in the Code of Conduct for Business Partners. Fliers and poster campaigns highlight the fact that it is there to be used. There are similar grievance mechanisms at the various Group companies. The actions taken in response to reports submitted apply to the short and medium term. To assess effectiveness, when a report is submitted, we check if similar cases have already arisen in the past. For instance, we compared a discrimination incident at a German unit in 2023 with the cases reported in 2024. None of the latter proved comparable with the 2023 incident. This is an indication for us that the measures already in place are sufficient. Should a similar case arise again, we would adjust these-for example, by providing specific training.

Targets related to managing material negative impacts and advancing positive impacts

Our aim with these actions is for each company to process whistleblower submissions and resolve them wherever possible. We have set no additional targets as we consider the action taken to be sufficient.

Diversity

| IROs: S2-NI4 | Time horizon: Short-, medium-term | Value chain: |
| :-- | :-- | :-- | :-- |
| | | (3) upstream 3 own activities |

Policies related to equal treatment and opportunities for all

We believe that inadequate measures-in terms of training, for instance-have a negative impact on diversity in the value chain. The strategic approach for this matter is set out in the Code of Conduct for Business Partners. This requires business partners to oppose any form of discrimination. Accordingly, this is something that business partners are called upon to implement in their own operations. Preventive measures, especially training, can contribute significantly to avoiding discriminatory conduct.

We are not yet able to verify the effectiveness of our policy Group-wide. However, we aim to support this policy by promoting nondiscriminatory communication on our own part. We refer in this connection to the actions described in the following.

Taking action on material impacts related to value chain workers, and effectiveness of those actions

For effective implementation of our policy, we are placing the initial focus in the short- to medium-term on training our employees as ambassadors for diversity in the value chain. All HOCHTIEF companies are already well on their way with a comprehensive diversity training program. We measure the effectiveness of training and programs by participation because, by taking part, people acquire the ability to counteract unconscious prejudice and discriminatory conduct. To this end, we make these training programs mandatory in our companies.

We will continue to develop communications campaigns, training, and programs that can also have a positive impact on diversity in the value chain.

Through the Turner School of Construction Management, Turner also offers free programs for diverse, women-owned, veteran/disabled, LGBTQ+, and small business contractors. Participants can develop long-term business relationships, build networks, and prepare their business for contract procurement opportunities.

Targets related to managing material negative impacts and advancing positive impacts

We have not adopted time-bound targets.

ESRS S3 Affected communities

Dialogue with the community

Our business is a people business as it brings us into close contact with numerous stakeholder groups. This means that stakeholder involvement-whether relating to individuals or groups-plays an important role at HOCHTIEF. We are in constant dialogue with a wide range of stakeholder groups and constructively address their various demands to take these into account in our work. Our aim here is to systematically track and give strategic consideration to major requirements and expectations in our processes. This is why we engage with stakeholders and invite them to contribute actively in various ways. Special focus is placed here on stakeholders who live in the vicinity of our projects and come into direct contact with our activities in the public arena and their impacts.

Material impacts, risks, and opportunities and their interaction with strategy and business model

The cornerstone of our strategy is our contracting work within our own activities, with projects that we carry out in the heart of society. This means we are in close contact with communities whose views, interests, and rights are potentially or actually affected by the impacts of our business.

Impacts of the HOCHTIEF strategy and business model

Our business activities have a direct influence on communities' economic, social, and cultural rights wherever we operate. This means that the views, interests, and rights of communities may be potentially or actually affected by the impacts of our business.

Due to our business models, our influence generally extends over the duration of our construction and project activity as well as beyond, especially when our activities modify infrastructure and thus local surroundings on a lasting basis or where we assume the long-term operation of a project.

Affected communities

Affected communities' include:

• Residents in the vicinity of our projects
• in the USA, Canada, and the Asia-Pacific, this includes Indigenous peoples

Our strategy in relation to affected communities is determined by our business models. In accordance with these, engagement and consultation with affected communities begins as early as in the design phase. Depending on HOCHTIEF's scope of work and responsibilities in a project, for example, this may be the case when HOCHTIEF has been awarded the order for a project and acts on behalf of the client under a contract. Fundamental issues relating to the structures we build that have an impact on affected communities are clarified in advance in the relevant statutory approval procedures.

We do not include the following groups in affected communities:

• Communities along the value chain
• Communities at one or both endpoints of the value chain.

Material impacts

The material impacts were identified in the materiality assessment for 2024 conducted by HOCHTIEF in accordance with the double materiality principle. HOCHTIEF's assets and business activities along entire value chain were assessed for actual and potential impacts, risks, and opportunities. This process is described in detail in the ESRS 2 General Disclosures section.

Communities' economic, social, and cultural rights

Positive impacts (PI)
Negative impacts (NI)

Safety-related impacts

S3-PI1 Donations and sponsorships to local organizations and employee volunteering activities have a positive impact on the sustainable development of communities, in particular with regard to our activities in relation to SDGs 4 and 11. An additional initiative is Bridges to Prosperity, a social project in countries where HOCHTIEF does not do business.
This initiative makes life in rural areas easier by building bridges for communities.
(actual; own activities)

The safety and security relevance of impact S3-PI1 relates to the improved security of communities in everyday life-for example, as a result of homeless assistance projects, food donations, youth work, and other activities such as Bridges to Prosperity. With this project, we are helping to ensure the safety of people who, without the bridges provided, would otherwise have a long and sometimes unsafe walk to get to places such as schools.

We address the safety of people in the vicinity of our construction projects-who may also be stakeholders from affected communities - in greater detail in the Consumers and end-users section.

[^0]
[^0]: * Safety-related impacts on end-users are addressed in the section on Consumers and end-users. There may be overlaps with end-users to the extent that both end-users and affected communities come into direct contact with our end products.

Rights of Indigenous peoples

A number of HOCHTIEF companies are engaged in activities that involve direct contact and dialogue with Indigenous peoples in Australia, the United States, and Canada. CIMIC explicitly engages with these stakeholder groups in contracting activities. For instance, CIMIC defines action plans together with various groups, including representatives of Aborigines and Torres Strait Islanders as well as NGOs such as Reconciliation Australia.

Solely for our operations in regions where Indigenous peoples live-the United States, Canada, and Australiawe have identified the following significant impacts:

Positive impacts (PI)

Free, prior, and informed consent

S3-PI2 Accessible, clear, and sufficient information for social actors and local communities whose rights may be affected by projects fosters consensus between HOCHTIEF and Indigenous peoples.
(actual; own activities)

Negative impacts (NI)

S3-NI1 Violations of information rights can result in negative impacts on Indigenous groups in relation to hiring, or encroachment on land, territories, resources, or cultural, intellectual, religious, or spiritual property. (potential; own activities)

Self-determination

S3-PI3 Construction projects may involve collaboration with Indigenous communities in project planning, management, and implementation. This provides Indigenous groups with opportunities to develop leadership capabilities, engineering expertise, and project management skills, enabling them to contribute effectively in decision-making processes and assume leadership roles.
(actual; own activities)

Interaction with strategy and business model

Our policy is generally based on our business models, which already include engaging and consulting with affected communities. We currently have no plans to change our strategy in the future.

S3-1

Policies related to affected communities

Directives and frameworks

Our fundamental strategic approach as well as the management of the above-mentioned material matters and impacts are contained in the following cross-cutting HOCHTIEF Group directives:

• Donations and Sponsoring: specifies focal areas for donations and sponsorships for the efficient deployment of financial resources and stipulates responsibilities and reporting processes. This is one element of the basis for the impact we have identified as S3-PI1.

• Social Engagement: specifies areas for philanthropic and social engagement (supplementary to the Group Directive on Donations and Sponsoring) and contains definitions and stipulations regarding social engagement. Throughout the Group, our strategic engagement focuses on the United Nations Sustainable Development Goals (SDGs) 4 and 11. We initiate activities relating to sustainable education and the sustainable development of cities and communities. Through social corporate citizenship activities, which also include donations and sponsorship, we not only help to improve the economic situation of those in need but also make infrastructure safer. This is the basis for the impact we have identified as S3-PI1. In addition, the Corporate Citizenship directive paves the way for engagement with Indigenous groups in relation to impacts S3-PA2, S3PA3 and S3-NA1. For these material impacts, engagement with Indigenous groups is also based on local law.

• Occupational Safety, Health, Environmental and Climate Protection: stipulates responsibilities and requirements for occupational safety, health, and environmental and climate protection for HOCHTIEF Aktiengesellschaft. This directive, whose requirements also extend to the surroundings of a project, complements our strategic commitment to the sustainable development of cities and communities, which we similarly seek to make safer through our initiatives, donations, and sponsorships. The impact we have identified as S3-PI1 further elaborates on this strategic approach.

• Human Rights Governance: specifies obligations to respect and monitor human rights and stipulates efforts to actively prevent human rights violations by means of due diligence processes. Part of the policy is the stipulation that Group companies take remedial action.

These directives are binding throughout the Group and their implementation is mandatory for the companies in the HOCHTIEF segments. Within their scope of application, the listed directives relate to the management of matters that have an impact on affected communities.

All directives contain clear, unequivocal requirements and descriptions of processes for monitoring compliance. In 2023, we additionally published our Human Rights Statement of Principles. This expressly addresses matters and processes in relation to affected communities. Another binding Group-wide framework is the HOCHTIEF Sustainability Plan 2025.

Through mandatory implementation of the HOCHTIEF Code of Conduct and the HOCHTIEF Code of Conduct for Business Partners, we ensure that our employees as well as our subcontractors and business partners respect the rights of third parties in areas such as human rights and the environment.

Our Australian Group companies also have specific inclusion plans for Indigenous peoples, which complement the Group directives and guide the teams in CIMIC's project activities in Australia.

Reconciliation Action Plan (RAP) governance at UGL

An example is the Stretch Reconciliation Action Plan at CPB Contractors. This helps ensure that Aboriginal and Torres Strait Islander peoples are able to participate in and benefit from the training, employment, and contracting opportunities on CBP projects. The plan also focuses on the development of partnerships with Aboriginal and Torres Straight Islander organizations and businesses to foster supplier diversity, actively promote appreciation of Aboriginal and Torres Strait Islander cultures, and support inclusion. UGL, Sedgman, and Thiess operate with similar plans. These aid in complying with legal requirements such as the New South Wales Aboriginal Procurement Policy and the Infrastructure Legacy Program, as well as with customer requirements regarding the inclusion of Indigenous groups. Clark Builders has developed a Progressive Indigenous Relations Strategic Plan that likewise focuses on the needs of Indigenous people in communities. Under the banner "Pause, Reflect, Embrace," Flatiron harnessed the National Day for Truth and Reconciliation in September to provide space for questions of personal and collective responsibility toward First Nations members. Clark Builders also officially honors the National Day for Truth and Reconciliation.

In our Human Rights Statement of Principles and the above-mentioned Group Directive "Human Rights Governance", we take full account of internationally recognized standards. These are:

• The UN Guiding Principles on Business and Human Rights
• The OECD Guidelines for Multinational Enterprises
• The Due Diligence Guidance for Responsible Business Conduct
• The ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy
• The UN Global Compact

S3-2

Processes for engaging with affected communities about impacts

We seek constructive dialogue with communities as well as their legitimate representatives and proxies in order to engage with them. In this connection, we take account of the material positive and negative actual or potential impacts of our activities.

The following processes are used:

• Adherence to legally required, democratically based stakeholder participation processes-for example, in the context of plan approval procedures. These are generally completed long before the actual contract award to a construction company or joint venture. It is only in subsequent processes-in approaches such as the competitive dialogue procedure, for instance-that companies are able to become involved in complex publicly tendered contracts.
• Early contractor involvement contract models are standard practice at HOCHTIEF and actively contribute to risk management, including in contracting work for the private sector.

As soon as a HOCHTIEF company becomes an active party to a project, it enters into regular dialogue with the affected communities in consultation with the client. Responsibility for this process lies with the management of the subsidiaries concerned.

The processes referred to are always project-specific and vary in terms of the timing, nature, and frequency of engagement. The HOCHTIEF Group does not have a general process for engaging with communities in the planning and approval phase.

HOCHTIEF uses other individual, project-specific channels and formats, including:

• Information events
• Direct communication with residents
• Websites and social media channels

• Press releases

• Stakeholder dialogues (establishment of community reference groups and implementation of Indigenous business forums)

In this way, we specifically reach out to affected and interested stakeholders and their representatives, inform them, and receive, analyze, and respond to their feedback. Furthermore, we provide communication channels that are accessible at all times, such as our whistleblower system. This enables us to address issues raised, suggestions, and grievances. We follow up on all issues raised in a formalized process and where necessary develop measures to provide lasting remedy.

Particularly at our subsidiaries in the USA and Australia as well as increasingly in Europe, community managers liaise between the company concerned, clients, business partners, and local stakeholders. They maintain direct contact with stakeholders, hear concerns, and have them addressed in the company.

As part of this, community managers fine-tune the strategy for engaging with stakeholders and the community in contracting projects. This includes establishing two-way communication. Community managers chair information and engagement events and respond to concerns. Lessons learned in the process are passed on to project management, clients, and supervisory authorities. Close cooperation with communities frequently leads to local initiatives on the part of our subsidiaries or project teams. Another regular facet of our engagement at our places of business and project sites comprises donation and sponsorship activities. These are likewise organized on a decentralized basis at HOCHTIEF, with the operating companies having their own budgets. Activities are coordinated with the responsible management, and the HOCHTIEF Executive Board is involved in projects that span the entire Group. In our community work, we attach special importance to long-term partnerships based on the needs and perspectives of the local population.

In view of HOCHTIEF's project-based business and the markets in which we operate, Indigenous peoples are the only group at present for whom it is necessary to have special provisions and measures for particularly vulnerable groups.

Special needs and rights of Indigenous groups

In our activities in Australia, the USA, and Canada, we already seek to take into account the special rights of Indigenous groups as stakeholders in the run-up to our projects, including their right to free, prior, and informed consent. This takes place in close consultation with clients and covers matters relating to cultural, intellectual, religious, and spiritual property, lands and territories, as well as relevant legal and official requirements. Specialpurpose project plans are thus compiled in many cases for construction projects undertaken by CIMIC Group companies. By way of example, these provide for the hiring of Indigenous workers or the inclusion of Indigenous groups in procurement processes. At CIMIC Group company CPB Contractors, for instance, this purpose is served by the CPB Contractors Aboriginal Business \& Social Enterprise (ABSE) database. In Canada, Flatiron and Clark Builders rely on inclusive procurement practices for capacity building among subcontractors and suppliers from Indigenous groups. Clark Builders is a member of the Canadian Council for Indigenous Business's (CCIB) Aboriginal Procurement Champions Group and has achieved the CCIB Bronze Partnership Accreditation in Indigenous Relations. The free, prior, and informed consent of Indigenous groups is ensured by adherence to the law.

Our subsidiaries' project teams are generally involved in implementation during project delivery. This additionally includes the observance of specific, culturally significant days of the year, festivals, and rituals, and the preservation of cultural sites of significance to Indigenous peoples. In this connection, the companies also maintain direct contact with representatives of the various Indigenous groups in order to ensure ongoing engagement.

S3-3

Processes to remediate negative impacts and channels for affected communities to raise concerns

With regard to the potential negative impact, identified as material by HOCHTIEF, of any failure to engage with Indigenous peoples in specific projects (S3-NI1), we rely on implementation of the following processes in the affected regions in which CIMIC operates:

• Continuous process as part of HOCHTIEF's Human Rights Corporate Management System: We identify the human rights risks arising in our business activities that may impact stakeholders, including affected communities.
• Accessible whistleblower systems for the reporting of all concerns and matters by external groups. These systems are provided on both a centralized and a decentralized basis via channels such as an online platform, a hotline, or email. The availability of these systems is supported by the companies' IT systems. They provide a direct means of raising concerns and reporting issues, both for our own employees and for external stakeholders, including communities in the vicinity of our projects and Indigenous groups. Submissions can also be made anonymously and we assure whistleblowers full protection against any reprisals. In a formalized process, HOCHTIEF companies ensure that all critical issues reported are investigated and appropriately dealt with so that suitable remedial measures can be taken. The process similarly provides for whistleblowers to be involved in follow-up and to receive feedback. Reported matters continue to be worked on until they are classified as resolved. We assure whistleblowers full protection against any reprisals. Access for affected communities is facilitated by making the whistleblower systems publicly known, accessible, and transparent. Whether communities are aware of and trust in the systems is assessed on a decentralized basis as part of our project activities and is not tracked centrally.

The effectiveness of our whistleblowing system is regularly confirmed by an internal audit conducted by Corporate Auditing. In addition, an external surveillance audit was successfully conducted in the reporting year and led to certification of the European HOCHTIEF companies.

S3-4 | S3-5

Policies, actions, and targets related to material impacts on affected communities

As the material impacts heavily depend on the location, lifetime, and nature of a structure, they are managed on a project-specific basis: Action in relation to material impacts is developed, implemented, and also tracked individually in the Group companies. Such action is based on the Group directives and specific supplementary provisions in the various companies, such as the reconciliation action plans at CIMIC. Suitable operational action can be derived on the basis of the decentralized project activities. No action in relation to severe human rights incidents impacting affected communities was necessary in the reporting year because no incidents were reported.

Communities' economic, social, and cultural rights

Safety-related impacts

| IROs: S3-PI1, S3-NI1 | Time horizon: Medium-term | Value chain: |
| :-- | :-- | :-- | :-- |
| | | (1) upstream (2) own activities (3) downstream |

Policies related to affected communities

HOCHTIEF has for many years focused sponsorship activities on two focal areas: "educating and promoting young talent" and "designing and preserving living spaces." These focal areas, which are addressed at Group level in the above-mentioned Donations and Sponsoring and Social Engagement directives, represent a close fit with our Group culture and strategy. They are also in line with United Nations Sustainable Development Goals 4 (Quality Education) and 11 (Sustainable Cities and Communities).

As a permanent partner to the project, we regularly invest funds in a cross-cutting volunteering and Group sponsorship project with the NGO Bridges to Prosperity (B2P). These activities come under our sponsorship focus "designing and preserving living spaces." In employee volunteering projects, we build bridges in remote regions in order to give people safe and better access to key infrastructure such as schools, hospitals, and markets. Within this collaboration, HOCHTIEF specifically aims to support people in regions where the Group itself does not operate. Through social corporate citizenship, which also includes donations and sponsorship, we can not only improve the economic situation of those in needf but also make infrastructure safer. This is highlighted by the cross-cutting Bridges to Prosperity project.

Donation and sponsorship activities at HOCHTIEF are organized on a decentralized basis in line with the structure and projectdriven geographical spread of our subsidiaries. The operational entities have their own budgets for social activities, which they coordinate with management. HOCHTIEF's Executive Board is involved in all cross-cutting projects at Group level.

Taking action on material impacts related to affected communities, and effectiveness of those actions

We focus our community work on the needs and concerns of people in the vicinity and take the following specific action to this end:

• Diverse local initiatives, many of which grow into close, longstanding partnerships
• Funding projects based on donations and sponsorship
• Volunteering by employees in the vicinity of our projects and branches or offices

Effectiveness is measured according to the type of activities involved, but is not tracked centrally due to their decentralized nature. We make sure our activities are effective by establishing processes that allow us to swiftly identify and address negative impacts. The provision of human resources for dedicated community management is one example of a direct, measurable contribution to successful engagement and sustainable development with regard to affected communities; donation and sponsorship budgets are another.

In-house training-on topics such as the Code of Conduct-and awareness-raising campaigns are designed to make our employees more aware of human rights issues, including the rights of affected communities. With these actions, we pave the way for continuous improvement and intend to carry on in the same way.

Examples from the reporting year:

Activities in the reporting year included Founder's Month at Turner, an annual campaign in which employees at the company's offices are encouraged to take part in community activities. In California alone, employees collectively volunteered more than 800 hours to give back to the community-for instance, in projects with the NGO Habitat for Humanity.

In 2024, HOCHTIEF continued its cooperation with B2P with a construction project in Rwanda. More than 22,000 people now benefit from the Isangano Bridge built in November 2024. Since the inception of the partnership in 2010, the HOCHTIEF Group has made possible a total of 30 bridges, improving the lives of more than 117,700 people in Central America and Africa every day.

Targets related to managing material negative impacts and advancing positive impacts

There are no plans to change the project-specific approach in community work and we intend to continue these efforts. We set a specific, time-bound target to advance positive impacts on affected communities. In this connection, we focus on reinforcing social engagement in our communities. By strengthening local groups through active volunteering and financial support, we contribute directly to the communities' positive development.

In many cases, there are individual quantitative and qualitative targets as part of our project activities. These specific project-level targets are aligned with the cross-cutting Group directives and thus cover material sustainability matters. The effectiveness of the action taken to achieve them is assessed, and the undertaking's performance against them tracked, on a decentralized basis.

In the HOCHTIEF Sustainability Plan 2025, we set ourselves the medium-term Group-wide target of increasing our donations and sponsorship budget by 3\% annually from 2022 to 2025. In 2024, the budget was approximately EUR 6.4 million (excluding Thiess on a like-for-like basis with the Sustainability Plan; 2023: EUR 6.1 million). We focus here on activities within our funding priorities that promote SDGs 4 and 11. Our subsidiaries decide on the appropriation of funds as part of their decentralized stakeholder management approach as well as in accordance with the Group directives. We track this goal at Group level on the basis of the annual budget increase.

We have additionally set a medium-term qualitative target of promoting employee volunteering campaigns on SDGs 4 and 11 across the Group by 2025; this target also relates directly to affected communities. We are focusing here on our companies in Europe, where corporate volunteering is not yet a long-established part of the corporate culture. The activities are trackedlikewise on a qualitative basis-via Group-wide internal reporting.

We are working to improve data collection on the impacts of our actions by 2025. Our continued aim is to establish Group-wide monitoring on the basis of specified indicators. In the reporting year, our Group-level international working group reviewed the criteria established in previous years for the tracking of social activities. The requirements under the CSRD legislation were incorporated at the same time. We intend to continue in the same way. We will identify any potential improvements after the end of the reporting period in 2025.

Rights of Indigenous peoples

Free, prior, and informed consent; self-determination

IROs: S3-PI2, S3-PI3, S3-NI1 Time horizon: Short- and medium-term
Value chain:
$\bigcirc$ upstream $\bigcirc$ own activities $\bigcirc$ downstream

Policies related to affected communities

As stated under S3.1, charitable and social activities are governed by the Group Directive on Social Engagement.

Taking action on material impacts related to affected communities, and effectiveness of those actions

Negative impacts can arise through failure to involve and inform local communities, which could negatively impact the rights of Indigenous peoples. Group companies CIMIC and Turner implement various actions to counter this.

Our companies in Australia and North America maintain a constant and active focus on effective communication and engagement with Indigenous groups. These communications-based initiatives help identify the action needed to effectively address negative impacts. Actions already established in the reporting period with a short- to medium-term time horizon include:

• Partnerships with Indigenous organizations that support Indigenous participation in employment and business opportunities, such as CareerTrackers, the Clontarf Foundation, Supply Nation at CIMIC, Clean Energy BC, and the First Nations Summit at Flatiron; construction site tours specifically for Indigenous groups;
• Provision of Indigenous occupational qualification and employment programs;
• Creation of opportunities to support and encourage participation in local sports and cultural activities;
• Creation of opportunities for Indigenous suppliers to participate in contracting projects;
• Information and cultural awareness training for Group employees
• At CIMIC, the engagement of Indigenous groups is ensured by mandatory Reconciliation Action Plans
• In the USA, community managers follow company policy regarding inclusion of Indigenous groups.

Here, too, effectiveness is measured according to the type of activities involved, but is not tracked centrally due to their decentralized nature. Scope for improvement is alsolikewise identified on a decentralized basis.

Targets related to managing material negative impacts and advancing positive impacts

Beyond the above project-specific actions, we aim to ensure that local communities are involved and well informed. We have not adopted any targets. We intend to continue our work with Indigenous groups in the established manner.

With regard to the involvement of Indigenous groups as community stakeholders, please refer to the information provided under S3-PI1.

ESRS S4 Consumers and end-users

Responsibility for our project activities

HOCHTIEF serves the business-to-business market and hence does not come into direct contact with consumers and end-users in the conventional sense. Private individuals nevertheless come into contact with our projects, as passers-by at construction sites and ultimately as those who enter and use the projects themselves. This generally only takes place after our work is complete-when a road, bridge, tunnel, or building has been officially opened. We share responsibility for the safety of these stakeholder groups and comply with the extensive range of legal requirements that apply in this regard.

Impacts and their interaction with HOCHTIEF's strategy and business model

The basis for our strategy in relation to consumers and end-users is our contracting work within our own activities. Our work is subject to quality and safety rules.

For HOCHTIEF, consumers are not a relevant group for ESRS purposes.
For the purposes of the ESRS sustainability reporting requirements, we consider the relevant group of end-users ${ }^{1}$ to be those who use our projects after completion. Depending on the project, end-users may already come into contact with the end product during the construction phase. HOCHTIEF typically only interacts directly with endusers in instances where we provide both construction services and post-handover operation-as with PPP contracts where we undertake the maintenance of infrastructure and general building projects.

The relevant group of end-users may include people who are especially vulnerable to health effects-due to a mobility impairment, for example.

However, the following groups under the ESRS reporting standard are not relevent to HOCHTIEF as we rule out any impact of our business activities on these groups:

[^0]
[^0]: ${ }^{1}$ With regard to non-safety-related impacts, there are overlaps with affected communities. These are described in the section on Affected communities. There are also overlaps where the two groups come into contact with our end products.

• End-users of products that are inherently harmful to people and/or increase risks for chronic disease
• End-users of services that potentially negatively impact their rights to privacy, to have their personal data protected, to freedom of expression and to non-discrimination
• End-users who are dependent on accurate and accessible product- or service-related information, such as manuals and product labels, to avoid potentially damaging use of a product or service.

Our activities alter people's surroundings, both during and after constructon, as when built structures such as new transportation links result in changes on an urban or individual scale. Due to our business models, our influence generally extends over the duration of our construction activity and beyond, as when our activities modify infrastructure or also working environments and thus local surroundings on a lasting basis or where HOCHTIEF companies assume the long-term operation of a project. This impact, which we have identified as being material, can hence also relate to the safety of the above-mentioned end-user group.

Our policy encompasses the following approaches:

• For the safety of end-users, we apply the statutory requirements for securing our construction sites with regard to public safety.
• We apply the statutory and technical requirements for the execution of construction projects in order to ensure the safety of the relevant group of end-users.
• For the safety of end-users, we observe and take into account knowledge about and insights into the development of safe construction projects gained, for instance, from exchanges in expert groups and industry associations.

Responsibility for implementing safe construction projects lies with the management of our units.

Material impacts

The material impacts were identified in the materiality assessment for 2024 conducted by HOCHTIEF in accordance with the double materiality principle. HOCHTIEF's assets and business activities along the entire value chain were assessed for actual and potential impacts, risks, and opportunities. This process is described in detail in the ESRS 2 General Disclosures section.

Personal safety of end-users

Positive impacts (PI)
Negative impacts (NI)
Health and safety
S3-NI4 Unsecured construction sites can have negative impacts on the safety of persons near construction sites. (potential; own activities)

Interaction with strategy and business model

The material impact on the safety of end-users relates to the business segments in which our infrastructure group operates and follows from HOCHTIEF's regional focus on developed markets. It arises directly from our decentralized project activities. As we subject safety in our projects and on our construction sites to a continuous review process through the HOCHTIEF companies' management systems, we can use this process to take account of impacts and incorporate them into our safety policies right from the project design stagefor logistical processes around construction sites, for example, that may also have a bearing on end-users.

S4-1

Policies related to consumers and end-users

Directives and frameworks

Our fundamental approach as well as the management of impacts relating to end-users are contained in the following cross-cutting HOCHTIEF Group directives:

• Occupational Safety, Health, Environmental and Climate Protection: stipulates responsibilities and requirements for occupational safety, health as well as environmental and climate protection for HOCHTIEF Aktiengesellschaft. This directive provides the basis for occupational health and safety. Its requirements apply from the design phase onward and hence also relate to construction site safety. By virtue of its scope as a fundamental policy document, this addresses material impact S4-NI1 in relation to the relevant group.
• Management systems at operating companies: these include stipulations regarding construction site safety and thus also include material impact S4-NI1 in relation to end-users.
• Human Rights Governance: specifies obligations to respect and monitor human rights and stipulates efforts to actively prevent human rights violations by means of due diligence processes. Part of the policy is the stipulation that Group companies take remedial action in the event of a human rights violations. With regard to human rights impacts in the run-up to or in an ongoing project, it is the responsibility of the project owner, which may also be HOCHTIEF, to take into account the interests of end-users-for example, by ensuring accessibility.

These directives are binding throughout the Group and their implementation is mandatory for HOCHTIEF companies. They also relate to the management of matters that have an impact on end-users and thus also on the safety of end-users in line with the material impact we have identified. The directives contain clear requirements and descriptions of processes for monitoring compliance.

In our human rights framework, we take full account of internationally recognized standards; this also extends to the rights of third parties such as end-users. We have an ongoing process to identify risks that may arise from our business activities and the people involved in them. Our process is geared to the prevention of human rights violations.

S4-2

Processes for engaging with consumers and end-users about impacts

HOCHTIEF does not normally come into direct contact with end-users, as communication with regard to their safety concerns takes place via public authorities, local authorities, and clients. Protection of the interests with regard to construction site and building safety is enshrined in project execution through the implementation of legal requirements. This includes areas such as public safety, restrictions on unauthorized access, structural inspections, and the exclusive use of officially approved construction materials.

The HOCHTIEF Group does not have a general process for engaging with end-users. Nor are there any specific requirements or actions for particular groups of end-users, as these matters are already fully taken into account in relation to legal requirements. For example, it must be ensured that people can safely pass construction sites and that no unauthorized persons have access to them. With regard to end-users, there are, for example, mandatory statutory requirements for ensuring accessibility in modern buildings. These requirements ensure that we are well-informed about the needs and perspectives of end-users with impaired mobility.

S4-3

Processes to remediate negative impacts and channels for consumers and end-users to raise concerns

As a matter of policy, we want to avoid any negative impacts on end-users. Should negative impacts nevertheless arise in the course of a project within the Group, we are able to apply the following established processes to provide or contribute to their remedy:

• Continuous occupational safety management process at HOCHTIEF: Safety risks are monitored and evaluated on an ongoing basis, any incidents are analyzed in detail, and action is taken to prevent recurrence.
• Professional collaboration among experts within the Group helps ensure that best practices are shared.
• Whistleblower systems that allow concerns to be openly raised with HOCHTIEF, on both a centralized and a decentralized basis, via an online platform, a hotline, or email: These provide a direct channel for external stakeholder groups, including end-users, to raise concerns and report issues. This is a service offering; however, we have no means of knowing whether stakeholders are aware of it. Submissions can also be made anonymously and we assure whistleblowers full protection against any reprisals. In a formalized process, HOCHTIEF companies ensure that all critical issues reported are investigated and appropriately dealt with so that suitable remedial measures can be taken. The process similarly provides for whistleblowers to be involved in follow-up and to receive feedback. Reported matters continue to be worked on until they are classified as resolved.

S4-4 | S4-5

Action and targets related to material impacts on end-users

Personal safety of end-users

Health and safety

IROs: S4-NI1	Time horizon: Short-term, medium-term	Value chain: upstream	own activities	downstream
Policies related to end-users
Our construction sites have to be safe for end-users passing by. With regard to construction site safety, the above-mentioned comprehensive management systems and the Directive on Occupational Safety, Health, Environmental and Climate Protection are part of our policy.
Taking action on material impacts on end-users and effectiveness of those actions
Action in relation to material impacts affecting consumers and the relevant group of end-users is developed and implemented on a project-specific basis in the Group companies before construction commences.
The action taken includes:
- Verification of construction site safety-for example, through regular inspections - Application of expert knowledge in the field of occupational safety and health in site meetings with safety professionals - Early contractor involvement contract models are standard practice at HOCHTIEF and actively contribute to risk management, including in contracting work for the private sector. - Use of innovative methods, such as Building Information Modeling (BIM), to minimize project risks, including in construction logistics: BIM can be used to optimize construction material delivery, collection, and storage while having due regard to safety aspects. This contributes to safe execution. Use of this approach in particular allows potential negative impacts on end-users to be identified in advance and prevented.
All activities are implemented in the short to medium term, depending on project duration.
With the exception of Building Information Modeling (BIM), the safety-related efforts are established Group-wide. BIM is used in the German companies. The activities are project-based and their effectiveness is likewise tracked at project level. This is the responsibility of management in each case.
Occupational safety and health experts work together with the teams who design and implement our projects to ensure project safety at all times. By deploying these human resources, HOCHTIEF contributes significantly to the safety of end-users. Depending on the project, safety measures may also be specified in collaboration with other parties such as joint venture partners.
No action in relation to severe human rights incidents impacting end-users was necessary in the reporting year because no incidents were reported.
Targets related to managing material negative impacts and advancing positive impacts
We do not specify any targets at present in relation to the material impact identified.

Governance information

ESRS G1

Business conduct

Implementing governance and compliance in the Group

Good governance and compliance are key to delivering on our corporate principles at HOCHTIEF. Through appropriate measures, including training and process improvements throughout the Group, we aim to avoid breaches of applicable law and corporate policies as well as the associated risks and consequences, and to increase awareness of proper conduct among all employees.

Material impacts

The material impacts were identified in the materiality assessment for 2024 conducted by HOCHTIEF in accordance with the double materiality principle. HOCHTIEF's assets and business activities throughout the value chain were assessed for actual and potential impacts, risks, and opportunities. This process is described in detail in the ESRS 2 General Disclosures section.

Corporate culture

Positive impacts (PI)
Negative impacts (NI)

Corporate culture

G1-PI1 HOCHTIEF contributes to economic and social development through tax payments and collaboration with tax authorities, reducing inequalities and enhancing fiscal transparency. (actual; own activities)

G1-NI1 Lack of a corporate culture can lead to the occurrence of cases related to the topics covered in the Code of Conduct. (potential; entire value chain)

G1-PI2 Greater capacity to take advantage of opportunities in ESG dimensions as a consequence of an active corporate culture that creates a more collaborative and creative work environment, which may lead to innovation and development of new products.
(actual; own activities)

G1-PI3 Creating long-term economic value for shareholders, investors, and the local economy through a good compliance system.
(actual; entire value chain)

Pretection of whistleblowers

Positive impacts (PI)
Protection of whistleblowers

G1-PI4 Establish mechanisms to monitor complaints, ensure anonymity, and protect whistleblowers to create an open culture.
(actual; entire value chain)

Negative impacts (NI)

G1-NI3 Failure to establish whistleblowing channels for internal and external complaints and/or failure to ensure whistleblower protection leads to high barriers for reporting and lack of trust. (potential; entire value chain)

Management of relationships with suppliers, including payment practices

Positive impacts (PI)

Management of relationships with suppliers including payment practices

G1-PI5 Promoting fair conditions such as fair payment practices for suppliers, irrespective of their market share, can have a positive impact both on suppliers as a whole as well as on the communities and workers associated with suppliers. (actual; upstream value chain)

G1-PI6: Implementation of sustainable measures by suppliers through raising awareness in the sector ("leading by example"). Promoting sustainable practices across the economy by incorporating ESG criteria and clauses in supply chain management. This can promote greater cooperation and the same interests, which in turn has a positive effect on the relationship.
(actual; upstream value chain)

Negative impacts (NI)

G1-NI4 Long/overstepped payment periods can result in

suppliers not being able to make their own payments to their suppliers or employees and thus incurring high additional costs or even going bankrupt.
(actual; upstream value chain)

G1-NI5 Procurement of materials from high-risk countries and suppliers may have negative impacts on human rights. (actual; upstream value chain)

Corruption and bribery

Positive impacts (PI)
Prevention and detection including training
G1-PI7 Ensuring a high training rate in relation to corruption prevention can raise awareness and thus reduce corruption and bribery in society as well as along HOCHTIEF's entire value chain.
(actual; entire value chain)

G1-PI8 Strictly applying anti-corruption and anti-bribery practices including, among others, audits leads to a positive impact on anti-corruption and anti-bribery.
(actual; own activities)

Incidents

G1-PI9 Existence of procedures for reporting unlawful behavior through various communication channels such as the whistleblowing hotline. This has a positive influence on the reporting of cases-reducing the likelihood that compliance cases will not be reported-and increases market participants' overall level of trust.
(actual; entire value chain)

Negative impacts (NI)

G1-NI6 Inadequate anti-corruption measures that lead to market distortions and the circumvention of environmental regulations have a potentially negative impact on the environment and society and can, for example, encourage and reinforce inequality and poverty in society.
(potential; entire value chain)

G1-NI7 Failure to investigate incidents can lead to corruption in HOCHTIEF's own operations or value chain and can increase social injustice, inequality, and economic instability of people and communities.
(potential; entire value chain)

Material opportunities and risks

Corporate culture

Opportunities (O)
Corporate culture
G1-O1 A strong business code of conduct can foster a more collaborative and creative work environment, which may lead to innovation and development of new products.
(own activities)

Protection of whistleblowers

Opportunities (O)
Protection of whistleblowers

G1-R1 Inadequate reporting systems and poor protection of whistleblowers can lead to compliance violations, sanctions up to the point of blacklisting, and fines, as well as poor reputation.
(entire value chain)

Political engagement and lobbying activities

Opportunities (O)
Political engagement and lobbying activities

G1-R2 Legal and reputational risks due to prohibited and unethical/unlawful political influence, including blacklisting. (own activities)

G1-R3 Anti-competitive behavior can cause long-term harm to HOCHTIEF's reputation, leading to decreased brand value and customer loyalty. If HOCHTIEF is guilty of anti-competitive practices, the company will face fines and penalties. (own activities)

Corruption and bribery

Opportunities (O)
Incidents

G1-R4 Cases of corruption within the HOCHTIEF Group can result in financial losses due to fines and loss of sales as well as reputational damage.
(own activities)
G1-R5 Risk of being blacklisted for public tenders in case of compliance violations/corruption cases.
(entire value chain)

G1-1

Corporate culture and business conduct policies

Corporate culture

(ROs: G1-PI1-PI3, G1-NI1	Time horizon: short-, medium- and long-term	Value chain: (1) upstream own activities	(2) downstream

In line with our guiding principles, our thoughts and actions are value-driven: We stand for integrity, accountability, innovation, delivery, and sustainability. The guiding principles serve as a roadmap. They demonstrate the values that inspire how we act at HOCHTIEF-in our daily work, both internally and externally. We promote our corporate culture among the workforce through targeted training, particularly on the valueoriented content of the HOCHTIEF Code of Conduct. Regular updates to our training programs and content ensure the ongoing evolution of the corporate culture.

HOCHTIEF has implemented a tax directive across the Group to improve its tax transparency. This directive is aimed at the management and employees with technical responsibility for tax matters. The directive comes under the remit of the Corporate Accounting and Tax departments. The content of the directive lays down the tasks, objectives, rights, and obligations of HOCHTIEF Aktiengesellschaft's Corporate Tax department as well as the mandatory duty to involve the Corporate Tax department in defined processes. The purpose of the directive is to assist those responsible at the HOCHTIEF companies in the performance of their tax-related tasks. Due to the HOCHTIEF Group's global orientation, the tax approach must center on global strategic objectives to support the Group's continued existence as a going concern. (G1-PI1)

The development of our Group-wide Code of Conduct, involving all segments, is the result of regular internal workshops and of the harmonization of our corporate culture. Internal and external audits and certifications in the European and U.S. segments likewise help to review our corporate culture. Any resulting recommendations are also passed on to CIMIC.

The principles reflect the collective beliefs enshrined in our corporate culture and guide our actions along a more success-oriented trajectory. Backed by its experience, technical excellence, and innovative solutions, HOCHTIEF realizes projects worldwide that convince our clients and benefit society. In doing so, we make efficient use of existing resources. Our employees' knowledge, dedication, and motivation pave the way for our success. In return, HOCHTIEF offers them secure, challenging, and fulfilling jobs. In this way, the HOCHTIEF Group generates sustainable earnings while at the same time creating value for its shareholders. (G1-PI2 and G1 NI1)

As a global infrastructure group, HOCHTIEF operates in countries with differing social and legal systems. Risks and business practices vary accordingly. As a matter of course, we uphold applicable international agreements such as those on the protection of human rights, anti-corruption, and sustainability.

Compliance management system (CMS)

To this end, Corporate Compliance has developed a compliance management system (CMS) that is geared to prevention, deploying appropriate measures to guard against compliance violations. The CMS applies across the HOCHTIEF Group and addresses the focus areas of anti-corruption, antitrust law, money laundering, prevention of terrorism, commercial criminal law in general, and human rights due diligence. Its structure is based on the German IDW PS980 auditing standard, ISO 37301, and the ten principles of the UN Global Compact. Responsibility for compliance lies with the Chairman of the Executive Board of HOCHTIEF Aktiengesellschaft. In this capacity, he is supported by the Chief Compliance Officer and the Corporate Compliance department. The compliance officers/managers each report on a regular basis to the Chief Compliance Officer, who in turn reports once annually to the Supervisory Board Audit/Sustainability Committee. Upholding our compliance requirements is the responsibility of all managerial staff and employees. Our aim is to establish good, successful, long-term business relationships. Due-diligence reviews are conducted throughout the Group before entering into business transactions. For Europe, for example, Corporate Compliance screens joint venture partners in a precisely defined selection procedure and approves signing subject to both integrity criteria and antitrust considerations. The other segments also use IT-assisted programs to support the business partner screening process. The CMS covers not only our own employees but also the value chain. This is reflected, for example, in the grievance mechanisms, which are accessible for and can be used by all third parties and are a key element in the proper functioning of the CMS. A stakeholder analysis ensures that the CMS takes account of stakeholder engagement.

The HOCHTIEF Code of Conduct is the key document in the CMS. It defines and clearly summarizes the rules of conduct applicable to all HOCHTIEF Group employees everywhere and at all times. For instance, HOCHTIEF adheres to the anti-corruption principles published by international organizations such as the International Chamber of Commerce and Transparency International. HOCHTIEF is also a longstanding member of the UN Global Compact, whose tenth principle deals with working against corruption. The HOCHTIEF Code of Conduct provides guidance for our business activities. In keeping with our guiding principle of integrity, HOCHTIEF first introduced a code of conduct as early as some 20 years ago. It represents the Group's set of values and contains management's commitment that HOCHTIEF's business activities must always be consistent with the law and Group policies. This expectation applies to all HOCHTIEF Group companies. HOCHTIEF's Code of Conduct, as revised in 2024, was developed and coordinated by Corporate Compliance in an extensive consultation process among the HOCHTIEF Group companies and approved by the full Executive Board. It thus serves as an umbrella framework for all HOCHTIEF Group companies, each of which has implemented codes of conduct of their own.

Whistleblower management system

HOCHTIEF implemented a whistleblower management system several years ago, which encompasses a case management system as well as a grievance mechanism. The grievance mechanism provides various reporting channels. In 2021, we supplemented our grievance mechanism with a digital whistleblower system that is available to all employees and third parties-hence both internally and externally. This is subject to ongoing refinement and revision in line with the whistleblower protection legislation. When a report is received, it first undergoes a plausibility review and the necessary measures are then taken to investigate. If allegations are substantiated, they are presented to the Compliance Committee, which draws its membership from various functions. The Committee consults on the course of action to be taken. In a globalized economy, companies bear responsibility both within their own operations and along their supply chains for respecting and meeting obligations in compliance with the rules as well as for avoiding any risks-for example, by preventing corruption, competition violations, or environmental or human rights violations. HOCHTIEF is committed to ensuring that no human rights violations occur at any of our Group companies or at any of our suppliers or business partners.

Alongside the digital system, other reporting channels are available, including a general email address and a telephone hotline. Furthermore, an external attorney has been retained for several years now as ombudsman to receive tip-offs, complaints, and concerns. The ombudsman can be contacted both from within Germany and from abroad. In addition to the reporting channels mentioned, concerns can, of course, be raised in person with Corporate Compliance, compliance managers, Corporate Auditing, or a superior.

Another pillar of the CMS is employee training. For the European units, regular training is provided, explaining the details of the reporting channels as well as how whistleblower reports are handled and investigated. All information is additionally available to employees on the intranet. This information is also contained in the HOCHTIEF Code of Conduct e-learning program, which is rolled out annually for HOCHTIEF Europe. At the European units, internal and external training programs are similarly provided for case managers who receive whistleblower reports to ensure that they know how to process them correctly. Case managers are individual members of staff at Group Compliance as well as the compliance managers of the various units. There are significantly fewer case managers than compliance managers in total so that the number of individuals with knowledge of whistleblower reports is kept to the necessary minimum.

Whistleblowers are fully protected against any reprisals. HOCHTIEF does not exert any pressure, coercion, or reprisals against whistleblowers or against anyone else who contributes to promoting compliant behavior at HOCHTIEF, and exercises zero tolerance of such actions by third parties. The same applies to threatened or attempted reprisals. Any whistleblower who does not report false information willfully or with gross negligence is thus protected against reprisals of any kind based-however indirectly-on the whistleblower's report. In this way, HOCHTIEF ensures that no whistleblower suffers any disadvantage in the company or in business dealings with HOCHTIEF as a result of complying with the law, regulations, and internal company requirements. All related information is contained in the HOCHTIEF Whistleblower System Rules of Procedure. This is publicly available on HOCHTIEF's website. The European units can also access the rules via the HOCHTIEF intranet. The HOCHTIEF whistleblower system is available in numerous languages. HOCHTIEF is subject to the legal requirements under Directive (EU) 2019/1937.

HOCHTIEF follows up on all whistleblower reports and investigates them accordingly. We thus have procedures to investigate business conduct incidents, including incidents of corruption and bribery, promptly, independently, and objectively. All matters are investigated by case managers in compliance with all procedural principles (confidentiality, anonymity, presumption of innocence, and protection against reprisals). Receipt of reports is confirmed within seven days, except in the case of those submitted in the web-based system, which confirms receipt upon submission. Additionally, at any time during the investigation, the whistleblower can have a conversation with the responsible case manager or other responsible persons involved by Corporate Compliance in investigating the matter, in order to discuss in depth the facts of the case as well as any expectations with regard to preventive and remedial measures. This includes the possibility of amicable dispute resolution. HOCHTIEF notifies each whistleblower of the status of the proceedings and any action (followup) within the following three months, unless this would compromise internal inquiries or investigations on a lasting basis and infringe upon the rights of those who are the subject of or named in the report. Other departments are involved wherever this is deemed expedient to conducting a full investigation. Departments responsible for investigating non-compliance-relevant whistleblower reports decide at their own discretion on the steps to be taken, with consideration given to the procedural principles. They keep Corporate Compliance abreast of the state of proceedings by way of regular written information. In the case of reports submitted anonymously using the web-based system, communication with the whistleblower remains with Corporate Compliance using a secure mailbox. The above information can be found in the HOCHTIEF Whistleblower System Rules of Procedure, on the Europe-wide HOCHTIEF intranet, and in the investigation manual for the European companies (internal use only).

All reports received are treated identically, irrespective of the subject matter. Following an initial plausibility review, a check is made as to whether anything is already known about the matter being reported-such as whether it has already been the subject of a whistleblower report. If compliance-related issues are involved, Corporate Compliance takes up the matter and carries out appropriate investigative measures. The outcomes of the investigation are discussed in the Compliance Committee-which comprises representatives from various functions - and specific recommendations are made for action (follow-up). Responsibility for the final decision on implementing the action (follow-up) lies with the respective management. Any necessary adjustments to the compliance management system-such as tighter controls-are initiated, and/or implemented, and communicated by Corporate Compliance. The adjustments are incorporated into training and thus passed on to training participants.

The selection of functions represented on the Compliance Committee ensures that there is a good basis for consultation on any issues that may arise. A set of rules of conduct for the Compliance Committee covers topics such as its composition, its specific role in investigating matters, and ensuring an independent investigation in the event of personal involvement. For Europe, the investigator in each matter, as a member of staff at Corporate Compliance, acts separately from the management chain involved in the matter.

If a reported matter relates to Corporate Compliance itself, the matter is investigated by Corporate Auditing in order to rule out any conflicts of interest. The Chief Compliance Officer, together with the Head of Corporate Compliance and the Chief Human Rights Officer, reports to the Supervisory Board Audit Committee once annually via the Compliance Report. This reporting also contains information on reported matters and their investigation, including action (follow-up). The Executive Board is likewise provided with regular compliance briefings which include a section on reported matters.

Training

HOCHTIEF regards the provision of training via a large number of different delivery methods as a crucial tool when it comes to enhancing its business conduct and fostering a positive corporate culture among the workforce. Accordingly, Corporate Compliance has worked for some time to develop a training program for the European units that comprehensively addresses the selection of topics (e.g., HOCHTIEF Code of Conduct, antitrust law, human rights issues, data protection), the frequency (e.g., weekly, annually, every two years, ad hoc), and the risk groups (all active employees, roles exposed to elevated antitrust law risk, etc.) for training, as well as the training format (online training, e-learning, in-person seminars). The program is reviewed at the beginning of each year in order to identify and action any need for updating. The same program identifies the risk groups and functions within the company that are most at risk in respect of specific risk areas, including corruption and bribery.

Functions-at-risk are those functions deemed to be at risk of corruption and bribery as a result of their tasks and responsibilities, where there are instances of actual or potential contact with third parties that present active and passive bribery opportunities. Approximately 76\% of functions-at-risk were covered by training programs in the reporting year. This figure is a percentage-weighted estimate. HOCHTIEF and Flatiron do not separately determine the percentage of functions-at-risk covered by training programs as they are included in the 100\% training rate. To separately report the percentage of completed training for functions-at-risk at HOCHTIEF and Flatiron, the percentage of the total workforce accounted for by functions-at-risk was determined for CIMIC and Turner as a weighting. The average percentage accounted for by functions-at-risk at CIMIC and Turner was then used to determine the figure with which HOCHTIEF and Flatiron are included in the training rate.

Risk-specific training-on antitrust law or conduct during searches-is subject to a preliminary risk-based review. It is revised on a topic-specific basis as needed.

The core component of the training concept is e-learning on the Code of Conduct in each unit. Participation in this e-learning is mandatory for all employees ${ }^{1}$, irrespective of their respective roles and the associated risks. Attainment of this target is tracked and documented on the e-learning platform. This training is completed annually or, in the case of CIMIC, every two years. It lasts around 45 minutes and covers all core areas of the Codes of Conduct (such as bribery and corruption, data protection, and human rights.).

Cybersecurity

IROs: G1-NI2
Time horizon: short-, medium- and long-term
Value chain:
$\bigcirc$ upstream $\bigcirc$ own activities $\bigcirc$ downstream

A particular risk may arise for our clients and business partners with a negative impact on their right to information security and cybersecurity.

Policies

Cybersecurity is part of our IT strategy and is embedded in our IT Directive by way of the Information Security Policy. The policy approach is likewise publicly documented in our information security guidelines. These frameworks have been approved by the Executive Board of HOCHTIEF Aktiengesellschaft. They are mandatory throughout the Group and their implementation is binding for all HOCHTIEF companies. During implementation of its policies/actions, HOCHTIEF takes into account the requirements of ISO 27001 and thus of a structured information security management system (ISMS). The policies and actions are continuously fine-tuned in consultation with the relevant stakeholders (such as our own workforce, business partners, and clients). To this end, positions, committees (such as the IT Steering Committee), and processes (such as for exception requests and concept approval requests) have been established to ensure that all requirements (relating, for example, to operations, investment spending, or information security) are addressed in a structured manner, taking the

[^0]
[^0]: ${ }^{1}$ Every active white-collar employee (does not include blue-collar employees, interns, and inactive employment relationships (in the case, for example, of parental leave, sabbatical, or long-term illness)).

material impacts into account. Implementation is tracked by processes to monitor the specified actions (IT monitoring). We use the following processes for this purpose:

• Consideration of clients and business partners in information security management
• Risk assessment and risk minimization in supply chain management
• A defined process for designing, implementing, and updating a risk-appropriate and cost-effective information security policy
• Communicated processes for risk evaluation in the case of policy exception requests
• Implementation monitoring for security measures
• Fail-safe provision

Processes for controlling the defined measures (IT monitoring) guarantee implementation.

We focus on prevention to counteract risks. The first line of defense at HOCHTIEF is security by design. This means the use of technical measures where the implementation process ensures a safe working environment on the basis of system design or configuration. Where recourse is made to organizational measures, these are subject to structured, documented procedures backed up with checks and balances. The measures are flanked by technical analysis systems.

Employee training on cybersecurity is also geared to common and current threats.

Lessons learned from emerging developments are continuously incorporated into security objectives and/or the Information Security Policy.

Initiatives implemented throughout the Group in the reporting year to protect against cybersecurity risks include the following:

• Structured requirements management processes including the management of information security risks (check list, involvement of specified departments, risk assessment, etc.)
• Internal phishing campaign to identify specific action such as a need for employee training
• Automated and manual penetration tests to detect security vulnerability in Internet-facing systems
• Mandatory training for all employees on general information security topics, plus ad-hoc information in the form of newsletters and intranet articles on current threats
• Continuous automated detection of vulnerabilities in Internet-facing systems, with reporting to support structured response processes
• Patch management on the basis of structured technical and organizational processes
• Attack detection and tracking solutions in operation
• Attack surface minimization by using technical measures for global blocking of entry points
• Use of technical means to minimize access to recognized and permitted systems or identities (for example, conditional access or MFA)
• Assessment of cybersecurity risks extended to include business-critical suppliers and business partners
• Structured reporting of business-critical security incidents

Management of relationships with suppliers

Management of relationships with suppliers

IROs:G1-PI6, G1-NI5
Time horizon: short-, medium- and long-term

Value chain:
(3) upstream
(3) own activities

H OCHTIEF procures considerable volumes of materials such as concrete, steel, and timber as well as services such as those of craft trades-corresponding to $74 \%$ of Group work done-and places strong emphasis on responsibility and fair play in procurement processes. M anaging suppliers and subcontractors is the responsibility of the procurement departments at the operational companies. The underlying processes - such as prequalification - take sustainability aspects such as human rights and environmental standards into account in supplier and contractor selection. In our projects, prequalified suppliers and subcontractors submit bids for the various trades. This way, we provide an effective basis for competition with regard to bid requests and contract awards. We specify requirement profiles, quality of service, costs, and relevant deadlines in contracts with the selected partners.

H OCHTIEF has implemented a comprehensive, multi-level risk management process in procurement. This is designed to identify social and environmental sustainability risks and/or violations at an early stage and to mitigate these through suitable prevention and remedial measures - such as targeted training - in dialogue with the respective business partner. This risk management process covers various factors, including a contractual obligation to comply with our H OCHTIEF Code of Conduct for Business Partners, supplier self-assessments, sustainability assessments by external partners, monitoring of global media, and internal assessments after completion of performance. The outcomes of the individual risk management steps are included in our supplier and subcontractor selection process. When procuring services and materials from high-risk countries, there is an elevated risk of corruption, human rights violations, and/or the restriction of personal and political freedoms. That is why, in Europe, we carry out enhanced prequalification for the relevant suppliers that is tailored to the respective risk areas.

H OCHTIEF aims to work primarily with local suppliers and subcontractors based in the vicinity of our project sites. In this way, we seek to ensure short transportation distances and strengthen local economies. Where necessary and expedient, however, we also engage supraregional partners with whom we have worked successfully in the past.

At the same time, H OCHTIEF attaches importance to the inclusion of vulnerable suppliers. In the reporting year, for instance, Group company Turner signed on to the Equity in Infrastructure Project, which promotes opportunities for minorities, women as well as small and underrepresented businesses in construction.

The inclusion of ESG criteria and clauses in our supply chain management-for example, by requiring adherence to the Code of Conduct for Business Partners or training on ESG matters-we promote sustainable practices, cooperation, and shared interests in the economy.

G1-3

Prevention and detection of corruption and bribery

Corruption and bribery

HOCHTIEF has developed various processes to prevent incidents of corruption or bribery as far as possible. These include a binding Anti-Bribery Directive and raising awareness in the shape of mandatory training. Corporate Compliance performs regular compliance audits of the European branches and projects to review adherence in areas relevant to compliance. Some of these audits are carried out with the involvement of the data protection officers; in some cases, joint audits are also conducted in cooperation with Corporate Auditing. Projects and branches are selected for audit on a risk basis. Planning for the respective audits is carried out annually.

HOCHTIEF additionally relies on the cooperation of its employees and third parties to identify and promptly address any irregularities. Grievance mechanisms are implemented to this end. Cases of corruption and bribery are dealt with in accordance with the above policies. All reports received are treated identically, irrespective of the actual subject matter.

A cornerstone of preventing and detecting corruption and bribery at HOCHTIEF constitutes diverse training programs coupled with the HOCHTIEF whistleblower management system.

In particular, a flyer campaign was conducted to raise awareness of the topic at the European HOCHTIEF companies. Corporate Compliance trains and instructs all case managers on the handling of reported matters. Case management staff are additionally provided with the HOCHTIEF investigation manual containing exhaustive, binding instructions on all relevant topics in this regard. Cases are always reported on at the annual European compliance conference organized by Corporate Compliance, along with the message that whistleblower reports are an important part of preventing potential incidents of non-compliance.

Furthermore, the Code of Conduct e-learning course mentioned above covers the topics of corruption and bribery, among others. The training encompasses various matters that are so important to HOCHTIEF that pertinent training must be completed by all employees on an annual basis (except at CIMIC, where it must be completed every two years), irrespective of their area of activity or risk profile. This notably includes the areas of corruption and bribery. To ensure that all employees are aware of the particular gravity of these topics, the respective e-learning platforms in the Group companies track statistics as per a specific cut-off date.

These topics are likewise covered in training delivered by other methods. For Europe, this notably includes weekly web-based training, providing ongoing communication on specific, irregular, and recurring compliance topics such as antitrust law, corruption, bribery, and money laundering. All employees in Europe are eligible to participate. In project training sessions lasting several hours and held at the start of a project, project employees learn about compliance risks that characteristically arise within the scope of project work. This includes training on corruption and bribery, among other matters. At the same time, staff are trained on selected compliance topics including corruption and bribery under other training formats such as onboarding and ad-hoc training.

The Executive Board and the Audit Committee of the Supervisory Board of HOCHTIEF Aktiengesellschaft are briefed on compliance issues at least once a year in the Compliance Report. In the event that cases of corruption or bribery are identified, relevant information is provided to the Executive Board and the Supervisory Board Audit Committee in the Compliance Report. This information is additionally presented in a meeting of the Supervisory Board Audit Committee. Furthermore, the Executive Board and Supervisory Board are kept apprised by the Chief Compliance Officer of HOCHTIEF Aktiengesellschaft of any additional discussion points, changes in the compliance landscape, emerging topics, or regulatory requirements that need to be met.

This includes briefing the Executive Board and the Supervisory Board on the implementation of the HOCHTIEF whistleblower system supporting the investigation of any allegations of corruption and bribery.

G1-4

Incidents of corruption or bribery

Incidents of corruption or bribery

IROs: G1-PI9, G1-NI7, G1-	Time horizon: short-, medium- and long-term	Value chain:
R4, G1-R5		(1) upstream	(2) own activities

There were no convictions for corruption or bribery offenses in 2024.
HOCHTIEF has implemented Group-wide measures (see above)-such as business partner screening, anti-corruption training, and contractual clauses-to prevent corruption and bribery as well as the resulting risk of fines and reputational damage. Nevertheless, the compliance management system is subject to an annual effectiveness review to identify risk areas and, if necessary, implement appropriate measures to prevent convictions related to corruption and bribery.

G1-5

Political influence and lobbying activities

Political influence and lobbying activities

IROs: G1-R2, G1-R3
Time horizon: short-, medium- and long-term
Value chain:
$\square$ upstream $\quad$ own activities $\quad \bigcirc$ downstream

No donations to political parties

Political donations and indirect political contributions to political parties, their elected representatives, or persons seeking political office are not permitted in the entire HOCHTIEF Group. The HOCHTIEF Code of Conduct lays down Group-wide rules concerning donations to political organizations: "HOCHTIEF's business units and companies do not make donations to political organizations, parties, or individual politicians, whether directly or indirectly."

Membership and involvement in industry associations

HOCHTIEF is involved in various industry and other associations in order to effectively represent the company's interests in societal and policy debate. We address the legal and reputational risks identified in our double materiality assessment in this context through dedicated policies on political engagement and lobbying. Primary focal areas of our activities are maintaining levels of infrastructure investment, partnership-based contracting models, the digitalization of construction processes, sustainable project delivery, and reducing bureaucracy. We consider these to be the most important issues with regard to our Group strategy. Accordingly, we advocate the inclusion of sustainability as a contract award criterion, the introduction of new technologies such as BIM for resource efficiency, and the use of partnership-based contracting models to minimize risk for all those involved.

Membership of companies within the Turner, CIMIC, and Engineering and Construction segments in associations, societies, institutions, funding organizations, and similar organizations, together with lobbying and political communication, are governed by the Group Directive on Communication. HOCHTIEF memberships that fulfill an overriding and transregional Group interest must be consistent with HOCHTIEF's orientation. Any and all lobbying activities may be engaged in or commissioned solely with the approval of the Head of Corporate Communications after consultation with the Chief Sustainability Officer or, at CIMIC, with the Executive General Manager of Corporate Affairs and Communications. For lobbying vis-à-vis the German Bundestag and the German Federal Government, HOCHTIEF Aktiengesellschaft is listed in the Lobby Register under register number R003332.

Resources to support political parties as of December 31, 2024

Before signing up to new memberships, we verify that the organizations concerned support HOCHTIEF's goals, such as the achievement of climate neutrality. If this is not the case, we refrain from membership. When Group companies leave an industry association, the reason is usually an adjustment in business strategy or withdrawal from specific markets or regions.

Members of HOCHTIEF's administrative, management and supervisory bodies did not hold a comparable position in public administration (including regulators) in the two years preceding their appointment in the current reporting period.

G1-6

Payment practices

Payment practices

IROs: G1-PI5, G1-NI4	Time horizon: short-, medium- and long-term	Value chain: upstream	(3) own activities	downstream

Targets

Due to the various different legal systems in which HOCHTIEF operates and its heterogeneous business structure, there are no standard payment terms across the HOCHTIEF Group enabling individual segments to comply with specific legal requirements. The benchmark is the HOCHTIEF Code of Conduct and the Code of Conduct for Business Partners, both of which require fair treatment of business partners. Individual segments have also implemented (standard) payment terms of their own in the form of general terms and conditions or policies. HOCHTIEF currently has no plans to develop Group-wide standard terms of payment.

Furthermore, each business unit has implemented processes that prevent late payments in various ways. For the European units, for example, due dates are entered in SAP and tracked in a workflow. This serves as the basis for prompt payment. The American and Australian units have policies for dealing with late payments and have established corresponding processes based on those policies. The Group takes an average of 21 days to pay an invoice from the date when the contractual or statutory term of payment starts to be calculated. This total figure reflects the number of days taken to pay at each Group company weighted by the companies' respective shares of Group sales. The figure for CIMIC and Turner is based on extrapolation from extensive samples.

There are no legal proceedings currently outstanding for late payments across the Group.

ESRS H1

Innovation and digital transformation

Great strategic significance of innovation and digital transformation

Innovation and digitalization are driving profound change in our businesses. This is why digital transformation of our activities plays a pivotal role for HOCHTIEF, offering tools and technologies that enhance efficiency, sustainability, and precision across the entire value chain. Digital twins, for example, enable detailed and resource-efficient planning and execution. This optimizes the utilization of resources in both the planning and construction phases as well as in the later phase of use, maintenance, and deconstruction/end-of-life. Advanced technologies such as Internet of Things (IoT) sensors, telematics, and analytics aided by artificial intelligence (AI) further enhance our construction processes, reducing costs and enabling the creation of smarter, more environmentally friendly projects. Another important goal is to improve occupational safety and health. We harness digital tools to cover safety aspects in the various construction and operating phases in order to identify risks and hazards at an early stage and take preventive action. This lets us create safer conditions for our employees and the partners in our projects.

Digital solutions play a crucial role in promoting the circular economy, facilitating the reuse of materials and enabling the design of structures that are easier to repurpose, disassemble, and recycle at the end of their life cycle.

Collaboration is key to driving this transformation. The early involvement of HOCHTIEF as a contractor combined with strong collaboration with clients and all those involved in projects enables the creation of customized, innovative solutions that address specific project challenges. By fostering a cooperative approach, we can accelerate the adoption of sustainable practices, mitigate risks, and find innovative solutions. This approach also presents our Group with the opportunity to shape the future of the industry and society. HOCHTIEF is committed to driving change in our industry by developing innovative approaches, contributing to research initiatives, and collaborating with other market players.

Material impacts

The material impacts were identified in the materiality assessment for 2024 conducted by HOCHTIEF in accordance with the double materiality principle. HOCHTIEF's assets and business activities throughout the value chain were assessed for actual and potential impacts, risks, and opportunities. This process is described in detail in the ESRS 2 General Disclosures section.

Positive impacts (PI)
Negative impacts (NI)

Innovation and digital transformation

H1-PI1 As a technically oriented, global infrastructure group with a rapidly growing presence in the high-tech, energy transition, and sustainable infrastructure markets, HOCHTIEF can contribute positively to the development of innovations within the construction industry, cross-sector industries, and society at large through its worldwide activities, broad portfolio of suppliers, and heterogeneous client base. By promoting digital solutions in our projects, we can foster digitalization and fine-tune solutions to make processes and assets more efficient, climate-friendly, and sustainable throughout their life cycle. Likewise, innovation and digitalization function as a booster for positive impacts across all dimensions of sustainability-for example, through digital systems to further optimize occupational safety and health, track the value chain of building materials, and foster alternative building materials with significantly lower carbon emissions.

Material opportunities

Opportunities (O)
Risks (R)

Innovation and digital transformation

H1-O1 Innovation and digitalization are the main drivers of a successful sustainable transformation across the entire value chain in our industry. Both contribute to significant improvements in the design, construction, and operation of projects. Deploying cutting-edge technologies and techniques allows us to execute our work much more efficiently, economically, and sustainably at lower cost-for instance, by reducing the use of construction materials, the volume of waste generated, and energy consumption. In this way, innovation and digitalization enhance our market competitiveness because our expertise lets us provide clients with more sustainable solutions that tap into higher margins, increased market share, and fresh business opportunities.

H1-1

Innovation and digital transformation in the HOCHTIEF Group

HOCHTIEF is committed to a forward-looking strategy that addresses impacts on environmental, social, and governance aspects while capitalizing on opportunities and managing risks. This approach is designed to secure a long-term competitive edge and drive sustainable goals across the construction industry. Besides cooperation, innovation and digitalization are the integral enablers of the HOCHTIEF Sustainability Plan 2025, unlocking opportunities and facilitating a successful transformation.

The HOCHTIEF Sustainability Plan 2025 was compiled in collaboration with all operational units and approved Group-wide by the Executive Board. It spans the entire life cycle-from project planning, design, and construction to operation, maintenance, and end of life. This 360-degree approach is relevant to all business activities and markets, integrating innovation and digital transformation in all project phases in order to enhance efficiency, sustainability, and stakeholder value.

Policy objectives

As a technically oriented, global infrastructure group with a growing presence in the high-tech, energy transition, and sustainable infrastructure markets, HOCHTIEF has the capability to implement and drive innovation within its projects and across the industry. Digital solutions and technologies have a positive impact on sustainability by enhancing occupational safety, and the tracking of construction materials.

This helps to foster decarbonization and establish more efficient processes across the entire life cycle of projects. Collaboration with all stakeholders paves the way to executing and running projects reliably, economically, and sustainably. By incorporating these innovations, HOCHTIEF hones its own competitive edge and unlocks new areas of business.

Organizing innovation and digital transformation at HOCHTIEF

Strategy is the responsibility of the HOCHTIEF Executive Board; implementation is coordinated closely with the operational units. Specific innovation work is directly embedded in project activities at HOCHTIEF, ensuring an optimum response to the needs of our clients and other stakeholders. This lets us address project-specific challenges with the best possible solutions, drawing on the experience and expertise of our operational units. Implementing innovation calls for management commitment, a structured, systematic approach, and the willingness to invest. Innovation is driven by all our employees and we aim to empower them to innovate where they work. We actively involve our partners in fine-tuning our activities.

Our subsidiary Nexplore is increasingly gaining traction as an independent digital solutions provider. In the area of virtual construction, demand for processes such as digital twinning and Building Information Modeling (BIM) is set to continue growing rapidly until they become the benchmark.
Nexplore is monitoring these developments closely and is charged with incorporating such processes into suitable use cases and construction projects. The digital processes already provide insights and knowledge in the planning phase that help pinpoint potential challenges and mitigate risks. They serve to precisely forecast a project's life cycle and plan the work and processes involved, thus generating sustainable added value. In the area of BIM, we have already established HOCHTIEF ViCon as a leading provider of virtual construction services.

We work both centrally and regionally with partners in science and research as well as with industry peers to promote issues of importance to our sector. As an active member of the European Network of Construction Companies for Research and Development (ENCORD), HOCHTIEF engages in future-focused sectoral dialogue.

An Innovation Group composed of members from across the Group's companies enhances coordination and implementation, while working groups such as those on Machinery, Materials, Health and Safety, and Supply Chain share best practices and develop solutions. We systematically promote innovation by actively seeking collaboration with start-ups and successfully adopting their solutions. Furthermore, we work in industry-wide R\&D networks comprising partners from science, research, and industry to advance and incorporate the most innovative approaches into our processes.

H1-2

Actions in connection with innovation and digital transformation

All actions extend across all of HOCHTIEF's business activities and cover all geographical operating regions.

Action: Implementation of Group-wide innovation summits

IROs: H1-PI1, H1-O1	Time horizon: Short-, medium-, and long-term	Value chain: upstream own activities	downstream
Relation to sustainability strategy:		HOCHTIEF Sustainability Plan 2025

Description of actions

HOCHTIEF is fostering innovation and digital transformation across the Group by implementing various actions to encourage networking, knowledge sharing, and collaboration. The company's regular innovation summits are a central pillar, offering a platform for discussing the latest technologies, ideas, and best practices. International working groups bring together teams of experts from different regions to develop cross-divisional solutions and overcome common challenges. In addition, workshops and targeted innovation forums facilitate the discussion of practical approaches and promote interdisciplinary knowledge transfer.

Specific actions implemented in the reporting year

Project

Turner Innovation Summit 2024

Outcomes

HOCHTIEF again strengthened its innovation culture in the reporting year through its companywide innovation summit, an event hosted annually by Turner. Held for the ninth time in 2024, the summit had the theme "Expanding Horizons: Exploring Beyond What Is to What Could Be." The summit featured more than 300 participants and presentations by leading experts on how technologies such as artificial intelligence (AI) are reshaping business operations and amplifying human potential across the industry. Through interactive sessions, participants shared insights to help scale innovations, enhance efficiency, and deliver long-term value to clients.

Action; Ideas management system

IROs: H1-PI1, H1-O1	Time horizon: Short-, medium-, and long-term	Value chain: upstream (2) openstr
Relation to sustainability strategy:	- HOCHTIEF Sustainability Plan 2025

Description of actions
HOCHTIEF's ideas management system creates the scope for innovation and continuous improvement by encouraging active employee participation. In this way, it is possible to identify and develop creative approaches and solutions and integrate them efficiently into projects and processes. Regular awards for the best proposals boost the motivation to participate and strengthen the company's innovative drive. Overall, the ideas management system helps encourage sustainable and efficient solutions that enhance the company's competitiveness and business success while fostering ecological and social responsibility.

Specific actions implemented in the reporting year

Project

The Ideas Room serves as an internal ideas hub at HOCHTIEF. This in-house platform offers employees the chance to publicize their ideas and best practices. In a structured process, these are evaluated and followed up by Group experts. The best ten ideas are singled out for awards. Award-winning special initiatives among the 171 proposals submitted in 2024 included on-site recycling and soil improvement without stationary plant, procurement of 3D printers for construction sites, and upcycling of site fence sheeting.

Action; Academic partnerships: sponsorship, scholarships, and awards for graduates

IROs: H1-PA!1, H1-O1	Time horizon: Short-, medium-, and long-term	Value chain: upstream (2) openstr
Relation to sustainability strategy:	- HOCHTIEF Sustainability Plan 2025

Description of actions
HOCHTIEF supports universities and colleges by offering scholarships, sponsorships, and awards. This collaboration fosters the sharing of knowledge and innovations between academic training institutes and industry.

Specific actions implemented in the reporting year

Project

Deutschlandstipendium
(German public-private scholarship),
HOCHTIEF PPP Solutions

Outcomes

For many years now, HOCHTIEF and RWTH Aachen University have been working together to promote talented construction, industrial, and energy engineering students. HOCHTIEF supported three students in the reporting year. The program combines private-sector and state funding and attaches great importance to personal contact between funding providers and recipients.

As a member of the RWTH Campus, HOCHTIEF is actively involved in the development of innovative construction and infrastructure projects. Successful examples include joint projects in the Center for Building and Infrastructure Engineering (CBI) aimed at making technologies more efficient and driving new trends.

Action: Deployment of artificial intelligence (AI)

IROs: H1-PI1, H1-O1	Time horizon: Short-, medium-, and long-term	Value chain: upstream	(3) own activities
Relation to sustainability strategy:	- HOCHTIEF Sustainability Plan 2025

Description of actions
HOCHTIEF is using artificial intelligence (AI) to drive digitalization and promote efficiency as well as sustainability in the construction industry. Our AI-based solutions help us optimize processes along the entire value chain and meet increasing demands in terms of quality and sustainability. We apply AI-based solutions to analyze consumption data by matching invoices for materials item by item with delivery notes and to optimize control processes. AI and AR technologies improve the construction process with detailed construction site monitoring, material identification, and digital documentation. We use AI-powered analytics to monitor roads in order to detect damage early on, optimize maintenance, and prolong road life.

Specific actions implemented in the reporting year

Project	Outcomes
Edgital, HOCHTIEF PPP Solutions	Edgital is the digital companion for all processes related to the life cycle of road infrastructure. The HOCHTIEF subsidiary has developed this software solution to inventorize, assess, and manage infrastructure assets at a glance. Using AI-driven technologies, Edgital enables regular, objective assessment of current road condition, thus facilitating long-term road maintenance. Edgital was one of three winners in the start-up category in the "NRW-Wirtschaft im Wandel" ("North Rhine-Westphalia region economy in transition") competition in 2024.
TOUGH Training, HOCHTIEF PPP Solutions	TOUGH Training is an interactive training software HOCHTIEF is developing to enhance occupational safety in the construction industry. By integrating gamified learning environments, TOUGH Training lets employees securely apply and grasp safety guidelines, construction techniques, and best practices in a risk-free, controlled setting. The primary focus of TOUGH Training is on enhancing employees' safety by enabling them to experience and learn about dangerous situations and processes in a virtual world. This approach not only improves learning retention but also ensures that employees are well prepared to tackle real-world challenges safely and efficiently. Cooperation also began in the reporting year with the corporate department for occupational health and safety, the AGUS Center.
NexChat, Nexplore	The NexChat application combines state-of-the-art AI technology with a protected data environment. It was developed specifically for in-house needs at HOCHTIEF and rolled out throughout the Group in the reporting year. The tool enables employees to quickly and accurately access relevant information and expert knowledge without the risk of inadvertently disclosing sensitive data. This underscores the strategic use of innovative technologies to safeguard HOCHTIEF's knowledge advantage in the long term and to optimize internal processes.

H1-3

Targets in connection with innovation and digital transformation

As part of our Sustainability Plan 2025, we set targets in connection with innovation and digital transformation. We are now working on additional targets to be included in our Sustainability Plan 2030, which will be drawn up in 2025.

Target: We aim to stimulate innovation and develop sustainable products and services

IROs: H1-PI1, H1-O1	Base year: n/a	Target year: continuous	Measurement of progress: $n / a$
	Baseline: n/a	Target: continuous	Geographical scope: worldwide
	Unit: qualitative	Value chain: upstream oen activities	(3) downstream
Relation to sustainability strategy:	- HOCHTIEF Sustainability Plan 2025

Target-setting methodologies and assumptions:

The target of fostering innovation and developing sustainable products and services is of pivotal importance to HOCHTIEF as it lays the cornerstone for long-term competitiveness in a changing market. The construction industry is facing growing pressure to reduce its ecological footprint and respond to the demand for efficient, resource-saving solutions. Innovation and sustainability are the key factors in overcoming these challenges and at the same time offering clients added value. For HOCHTIEF, this means delivering future-ready solutions based on the nonstop development of new technologies and processes in areas such as digital transformation or the integration of sustainable materials. This innovative drive not only strengthens our market position but also makes a significant contribution to achieving global climate targets and promotes the construction industry's transformation to greater sustainability.

Status and trend analysis:

HOCHTIEF continued to work on achieving this target during the reporting year, with notable progress in the energy transition, new mobility concepts, and digital solutions for sustainable infrastructures. We secured major contracts in the area of renewable energy (solar farms, grid expansion, energy storage, and battery factories). In the area of new mobility concepts, HOCHTIEF was engaged with the delivery of, for instance, battery factories, charging infrastructure, and innovative mobility projects. This shows that both sustainability and resilience are increasingly gaining acceptance as features of construction services. With projects such as the YEXIO data centers, we are expanding our product range to provide a comprehensive and sustainable package for the fast-growing digital infrastructure market. Sustainable services-such as the TOUGH Training virtual training offering-also gained in importance during the reporting year. In order to track whether the target is achieving the desired positive effects, progress is reviewed and assessed both against sources such as sustainability ratings and through continuous feedback from the operational units in Group-wide working groups or at conferences.

Target: Propose sustainable solutions in the bidding or preconstruction phases of at least $50 \%$ of construction projects by 2025

IROs:	Base year:	Target year:	Measurement
H1-PI1, H1-O1	n/a	2025	of progress: quarterly, Group-wide, and per operational unit
	Baseline:	Target:	Geographical scope:
	n/a	$50 \%$	worldwide
	Unit:	Value chain:
	percent	upstream	own activities

Relation to sustainability strategy:

Target-setting methodologies and assumptions:

Our target of proposing sustainable solutions in the bidding or preconstruction phases of at least $50 \%$ of construction projects by 2025 is a key step by HOCHTIEF toward fostering innovation and digital transformation in construction. In the early planning phase, digital technologies such as Building Information Modeling (BIM) and digital twinning offer the opportunity to simulate and optimize sustainable solutions effectively.

Integrating this type of tool enables HOCHTIEF to consider environmentally friendly and resourcesaving solutions right from the start of a project and ensure that they are implemented efficiently. This target not only supports the company's sustainable development but also sharpens our competitive edge and HOCHTIEF's position as an innovative industry leader contributing to the future viability of the construction sector.

Status and trend analysis: To increase the proportion of projects delivered sustainably, we incorporate our sustainability strategy and targets into our dialogue with clients. We share and deploy our accumulated global expertise with clients to deliver innovative ideas for the sustainable execution of each project. We also aim to propose sustainable solutions as an alternative in instances where clients do not initially request them. Early contractor involvement gives us significant leverage to propose sustainable solutions for clients in the early project phases. We aim to further intensify these efforts to propose sustainable alternatives to clients. Target achievement is tracked by our internal reporting system.

Metrics

The volume of new orders for clients in high-tech market segments in 2024 is a critical metric for HOCHTIEF because these projects make a substantial contribution to the company's business overall and are a focus of our business model. They are not only of significant economic importance but also play a pivotal role in fostering innovation and the digital transformation of the construction industry. In addition, every building structure for clients in high-tech market segments helps to drive innovation and digital transformation. This metric is also linked to the material positive impact (H1-PI1) in terms of contributing positively to the development of innovations within society at large. The exacting requirements of these markets, notably in respect of quality, speed, and our clients' complex expectations, make the use of innovative digital methods indispensable to implementing our projects.

Volume of new orders ${ }^{1}$ for clients in high-tech market segments ${ }^{2}$ within the HOCHTIEF Group (EUR billion)
HOCHTIEF Group

ADVANCED TECHNOLOGY IN DATA CENTERS

HOCHTIEF is ideally positioned in the growth market of data centers - whether in the USA, Europe or the Asia-Pacific region. The HOCHTIEF companies contribute extensive know-how and experience to meet the great demand.

Looking ahead

The HOCHTIEF Group is very well positioned with its global presence and capabilities portfolio. Our strategy is to further strengthen HOCHTIEF's position in core markets and to focus on market growth opportunities-especially on strategic growth markets, where the Group has already been successful in 2024 (for further information, please see the Markets and operating environment section; for the outlook for HOCHTIEF Aktiengesellschaft under German GAAP, please see under "HOCHTIEF Aktiengesellschaft (Holding Company): Financial Review under German GAAP (HGB)"). At the same time, we prioritize cash-backed profitability and pursue a rigorous risk management approach. Our businesses are flexible, allowing management to quickly adapt to varying market conditions. Active and disciplined capital allocation is a high priority and we continue focusing on attractive shareholder remuneration as well as investing in strategic growth opportunities to create sustainable value for all stakeholders.

Analysis of performance in 2024 relative to the prior-year outlook ${ }^{1}$

HOCHTIEF has delivered a very strong performance in 2024. During the reporting period, our segments Turner, CIMIC, and Engineering and Construction as well as our 20\% investment in Abertis HoldCo (Abertis Investment) generated operational profits before taxes and operational net profits in line with or exceeding respective segment guidances. Operational net profit of the HOCHTIEF Group came out at EUR 625 million (2023: EUR 553 million reported), above the top end of the Group's guidance range given at the start of 2024 (EUR 560-610 million), and up 13\% year on year. Nominal net profit of EUR 776 million in 2024 included non-operational effects, including a EUR 147 million one-off positive net effect at CIMIC particularly from the revaluation gain from Thiess.

The HOCHTIEF Group's net debt position amounted to EUR 120 million as of December 31, 2024 (2023: net cash position of EUR 872 million reported), or EUR 140 million net cash before the Abertis capital increase of EUR 260 million. This net cash position incorporates net debt from the full consolidation of Thiess (EUR 1.0 billion) and cash-out for M\&A activities at CIMIC (EUR 420 million); adjusted for these, HOCHTIEF Group's net cash position would-driven by further strong operational cash flow performance during the year-have exceeded the EUR 0.5 billion net cash, pre-Abertis capital increase, envisaged for FY 2024.

At 0.66, the HOCHTIEF Group's Lost Time Injury Frequency Rate (LTIFR) again improved significantly in 2024 compared with the prior-year figure ( 0.88 ). Furthermore, the 0.66 result was significantly better than the 1.10 level indicated for 2024. This positive trend is mainly due to a significant reduction in accidents in the American and European Group units. The consistent further development of safety training and training courses, particularly with regard to behavior-based prevention approaches, contributed to the positive development throughout the Group. Despite the volatility of this key metric, a positive trend has been discernible in recent years.

During the reporting period, HOCHTIEF further implemented its comprehensive Sustainability Plan 2025 with international working groups developing and supporting specific measures for the commitments made across all ESG dimensions. For example, the Group has developed a decarbonization roadmap (net zero pathway) and defined additional near-term targets for 2030.

Overall assessment of future developments

HOCHTIEF's year-end 2024 order backlog stood at EUR 67.6 billion-an end-of-year record. This corresponds to an increase of $13 \%$ year on year on a comparable basis. Fundamentals are expected to remain sound in 2025 for the activity level in the relevant markets for HOCHTIEF (also see the Markets and operating environment section). The overall outlook is therefore solid and reflected in our expectations for the key performance indicators in 2025 for HOCHTIEF Group and for HOCHTIEF Aktiengesellschaft. Exchange rates applied to the forecast are close to the spot rates at the end of 2024.

[^0]
[^0]: ${ }^{1}$ For further information, please see the Financial Review section.

For the Group, we expect an operational net profit in the range of EUR 680-730 million for 2025, subject to market conditions. This compares to a 2024 operational net profit of EUR 625 million. HOCHTIEF expects to maintain a net debt position per end-2025 similar to 2024, after the payment of a dividend of EUR 393 million (EUR 5.23 per share as proposed, see below), and adjusted by the effects of the completion of the Flatiron-Dragados merger and subsequent deconsolidation of Flatiron (EUR 0.4 billion), and the completion of the Dornan acquisition (EUR 0.4 billion) in early 2025 and net working capital changes.

We want to continuously develop and promote a good safety culture and awareness of health and safety at our workplaces throughout the Group. We are aware that the occurrence of accidents is dependent on other factors and that the sustainable improvement in accident frequency must be considered over a longer period of time. Based on the positive development of recent years, we expect a correspondingly good further development and are aiming for the LTIFR of 1.04 for 2025, which was already reported as a target in the sustainability plan for 2025.

In 2025, we intend to further develop and implement measures that support achieving our targets laid out in the Sustainability Plan 2025. The further strengthening of our sustainability enablers digitalization, innovation and collaboration should facilitate our target achievement.

Dividend

Shareholder remuneration remains a priority for HOCHTIEF. The proposed dividend of EUR 5.23 per share (was EUR 4.40 per share for the previous financial year 2023) represents a dividend payout ratio of $65 \%$ of operational net profit.

Opportunities and Risks Report

At HOCHTIEF, business segments and projects vary in terms of nature, volume, duration, complexity, and the engineering challenges they present. In light of this, one of the Group's key success factors is opportunity and risk management that is closely geared to our business activities and places the focus on individual project operations. (For an overview of current market opportunities, please see the Markets and Operating Environment and the Goals and Strategies sections.) We also regularly address non-financial topics, their impacts, and relevance, among other things through our materiality analysis.

HOCHTIEF's established risk management system embraces all layers of the organization and defines directives, responsibilities, processes, and instruments. Opportunities and risks are assessed at an early stage and suitable measures developed to take advantage of opportunities as well as for effective risk reduction. This covers both financial and non-financial aspects.

We keep constant track of developments in the markets and regions relevant to the Group and give due account to such developments in corresponding planning activities. If influencing factors in a project or segment develop differently than assumed prior to this time, this could have an impact on HOCHTIEF's key performance indicators and possibly alter the growth figures predicted for a given year or consecutive years.

The financial position and financial performance of HOCHTIEF Aktiengesellschaft as management holding company are ultimately determined by the assets of the Group companies and their ability to generate sustained positive earnings contributions and positive cash flows. The risk profile of HOCHTIEF Aktiengesellschaft is therefore essentially the same as that of the Group. The reporting of the companies to HOCHTIEF Aktiengesellschaft consequently comprises the basis for assessment of the Group position.

Group-wide risk and opportunity management

Our Group-wide risk management system is made up of various individual components. The overarching framework is provided by directives that are continuously reviewed and adapted as necessary with regard to changing legal requirements. Group-wide standards-on subjects such as occupational safety and health, social standards, and rules on conduct and compliance such as the Code of Conduct-also contribute toward minimizing risk. Finally, these Group-wide measures are complemented by the segments' and operational units' individual systems, processes, and organizational instructions that allow for the detailed identification, assessment and management of opportunities and risks in the respective markets. (For more information, see the description of the process to identify and assess material impacts, risks and opportunities in the ESRS 2 General Disclosures section of the Sustainability Statement).

The Executive Board, the Supervisory Board, and the Audit/Sustainability Committee are regularly informed about potential material control deficiencies and the effectiveness of the established controls. No material discrepancies were known to management in 2024 that would call into question the adequacy and effectiveness of the Company's risk and opportunity management. ${ }^{1}$

Definition of risks and opportunities

HOCHTIEF defines "risk" as an event with a potential impact on the expected values of relevant budgeted key financial performance indicators in relation to corporate goals. Risk in this context primarily relates to events with potential impacts on profit before tax and on liquidity. For a transparent presentation, individual risks are classified into risk categories.

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[^0]: ${ }^{1}$ The content of this paragraph is not part of the statutory audit of the annual financial statements and consolidated financial statements in accordance with Section 317 of the German Commercial Code.

The following categories of risk are analyzed in risk management in a detailed bottom-up process that have a direct or indirect impact on business activities in the HOCHTIEF Group:

• Market and regulatory risk
• Environmental risk
• Financial risk
• Personnel and social risk
• Internal and technological risk
• Project and contract risk
• Investment risk
• Legal risk (including human rights, criminal matters, and corruption risks)

In our assessment, we generally also take into account risks that arise for our stakeholders from our products and services.

Additionally, we simultaneously analyze and actively develop the opportunities that present themselves for our projects and markets. We define an "opportunity" as potential future developments or events that could lead to a positive deviation from the Group's forecasts or objectives. Identifying and exploiting opportunities can make an important contribution to maintaining and extending our market position.

Risk management with risk categories

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[^0]: ${ }^{1}$ incl. human rights, criminal matters and corruption risks

Risk management in HOCHTIEF's segments

All HOCHTIEF segments are an integral part of the HOCHTIEF risk management system and continuously improve their individual risk management in their respective market environments.

Turner and CIMIC are integrated into HOCHTIEF's risk management system. The Risk Management Steering Committee at Turner assumes a key role, coordinating and overseeing all risk-related issues. A specially developed risk control matrix allows Turner to identify and - where necessary-monitor potential process risks from an early stage. Business unit-level risk analysis is also compiled on a quarterly basis and the findings aggregated into a "risk memorandum." The Turner Engineering Group provides support in the avoidance of project risks.

CIMIC-like the other HOCHTIEF operational units-practices risk management as the identification, assessment, and treatment of risks with the potential to materially impact its operations, people, and reputation, the environment and communities in which it works, and its financial prospects. Risks are monitored on an ongoing basis and a quarterly risk report is submitted to the CIMIC Board. It is coordinated with CIMIC's business activities, embedded within existing processes, and aligned to corporate objectives, both short and longer term. Given the diversity of its operations as well as the breadth of its geographies and markets, CIMIC faces a range of risk factors that have the potential to affect the achievement of business objectives. As in all other segments, risk management at CIMIC is subject to the HOCHTIEF Group directive on risk reporting.

The Engineering and Construction segment encompasses the activities of HOCHTIEF Europe and of Flatiron in North America. At Flatiron, a risk management department covers relevant aspects of risk management. All projects are systematically analyzed and assessed with a view to risks right from the bid phase. Risks and related mitigation measures are identified in all significant projects and the current status of the risk situation coordinated and assessed in monthly meetings at top management level. Involving the Flatiron Technical Services Group-an in-house engineering center of excellence-contributes to the avoidance of project risks.

HOCHTIEF Infrastructure, which is responsible for the construction business in Europe, splits risk management into five groups: Bid and Project Control (assisting operational units in all aspects of bid preparation, and supporting operational units in risk monitoring); Data Protection and Information Security (implementing and monitoring information security); Dispute Resolution and Litigation (providing project management for dispute handling); the Technical Quality Control Group (reducing technical risks and improving project execution); and Quality Management (QM) (development, documentation, and further improvement of processes for our operating business; internal and external QM audits; continuous improvement process (CIP); best practices; and lean construction).

HOCHTIEF PPP Solutions, which delivers design, finance, build, and operate services for transportation and social infrastructure projects on a public-private partnership (PPP) basis, has implemented a risk management system for systematic risk identification, assessment, and control. Opportunities and risks are regularly analyzed in the core acquisition, execution, and divestment processes. Active risk control reduces the potential impact with corresponding measures. The range of defined measures is broad. Depending on the potential risk, they may include, for example, working actively with the client to develop an alternative technical solution, insurance against risk, or additional risk provisioning. Risk management is part of the quality management system introduced by HOCHTIEF PPP Solutions for continuous improvement of projects and services and for systematic process optimization.

Opportunity management is primarily a function of strategic management and the decentralized continuous improvement process. In order to spot opportunities and act on them at an early stage, we keep a very close watch on our markets and their development. Notable opportunities for the HOCHTIEF Group include acquisitions and increased levels of investment in our core markets.

Risk culture

HOCHTIEF pursues the continuous improvement of risk management as a key strategic goal. The importance of risk management and HOCHTIEF's strategic approach are developed further in international working groups and communicated to employees. We thus offer initial and further training on selected risk management areas inhouse and place great importance on employee participation in such training.

HOCHTIEF has a remuneration system with fixed and variable components which is regularly reviewed. A key component of this system are risk-related metrics and targets against which employees' performance can be measured on the basis of individual performance agreements tailored to each employee's job profile and responsibilities. The Group provides a wide range of systems and tools enabling employees to identify potential risks for HOCHTIEF, escalate them, and take action when necessary.

Additional evidence of successful application of opportunities and risk management at HOCHTIEF is provided by HOCHTIEF's certification according to ISO 9001:2015, which also takes into account how opportunities and risks are handled.

HOCHTIEF Insurance Broking and Risk Management Solutions

As the Company's in-house insurance broker, HOCHTIEF Insurance Broking and Risk Management Solutions GmbH is responsible for coordinating the insurance-related risk management for the HOCHTIEF Group's segments and is consequently an integral part of Group-wide risk management. This company is directly held by HOCHTIEF Aktiengesellschaft. The company's objective is to protect the consolidated balance sheet with adequate insurance covers for the HOCHTIEF Group's manifold projects and activities at a minimal total cost of risk. Localized risk management at the operational units is further supported by aggregated information obtained through collection and analysis of data as part of Group-wide insurance reporting processes.

Thanks to insurance solutions, both for transportation infrastructure projects and for social, urban, digital and energy infrastructure projects, the relevant insurable risks are covered both before and during the construction phase as well as in the operating phase. The comprehensive insurance concepts focus on the provision of proper insurance cover for property damage and financial losses. Instruments that typically serve this purpose not only offer liability insurance but also builders' risk insurance and all-risk property insurance. In addition to HOCHTIEF Group units, project insurance cover also extends to external companies, notably project partners, owners, and end users.

The reinsurance company Stonefort Reinsurance S.A. provides additional products and services to optimize the Group's risk and cost structure and for external clients. Rating agency AM Best once again rated the financial strength of Stonefort Reinsurance S.A. as "A-"
(Excellent) in 2024.

Opportunity and risk reporting

A Group-wide directive governs the uniform application of risk reporting. It encompasses risk reporting and communication, describes the structure and procedures, and lays down the risk reporting framework. This risk reporting process supplements operating risk management as part of the Group-wide processes for controlling risk. The directive is updated as needed, most recently in 2022.

Financial and non-financial risks ${ }^{1}$ are incorporated into the planning and forecasting process. In a multi-stage process, the operating and holding companies collate their risk exposures and assess them together with segment managements and controlling departments. Relevant risks are then submitted to Corporate Controlling, stating the potential impact of a risk on earnings and liquidity in the current and two subsequent years, the risk category, the possible time scale, the probability of occurrence, and any measures already taken to avert and reduce the risks identified. The resulting risk situation goes into a final risk report compiled for the Executive Board. This includes performing risk aggregation based on the methodology updated in 2024 and the introduc-

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[^0]: ${ }^{1}$ Non-financial risks in accordance with ESRS are addressed in the ESRS 2 General Disclosures section of the Sustainability statement.

tion of Monte Carlo simulation, including the calculation of a value-at-risk for the Group and a regular risk-bearing capacity test. Regular reports on the Group's current risk situation are also provided to the Supervisory Board's Audit/Sustainability Committee. At the same time, HOCHTIEF has in recent years, in the context of sustainability reporting requirements, intensively addressed potential opportunities and risks with a longer-term perspective (further information can be found in the description of the process for identifying and assessing significant impacts, risks and opportunities in the sustainability declaration). The results of the working groups are reported to the Executive Board and Supervisory Board on an ongoing basis.

Scenarios, correlations, and sensitivities

Risk scenarios compiled on a case-by-case basis present potential impacts on HOCHTIEF and correlations between risks, and make it possible to perform sensitivity analyses. The risk situation is continuously monitored using the tools available and-independently of regular updates-material changes are reported without delay (internal ad-hoc reporting). A key element of risk management at HOCHTIEF in this connection is the Investment Committee, which provides advance assessment of the risks for HOCHTIEF associated with planned capital expenditure, divestments, and investments requiring approval. In this way, such risks are avoided or at least reduced. This serves to provide standard criteria and processes ensuring that all decisions are made on the basis of identical approved principles. Project size and complexity are important criteria for the type and scope of risk analysis.

Oversight by Corporate Auditing

Corporate Auditing is an independent internal audit function responsible for monitoring business processes and risk management with regard to compliance with the law, regulations, directives, internal control systems, and corporate objectives. Ad-hoc special audits supplement the risk-based audit program.

To this end, Corporate Auditing has extensive and unrestricted powers of information and examination within the Group. It is an independent internal institution which performs audits on behalf of the HOCHTIEF Executive Board in the business segments, Group companies, project companies, and third-party entities for which it has contractual auditing powers, and which supports the Executive Board in this regard and in its managerial role with independent analyses, assessments, and recommendations. Corporate Auditing reports to management and the Executive Board on each audit and, in summary form, to the HOCHTIEF Audit/Sustainability Committee.

Corporate Auditing aims to protect corporate assets, to assess the reliability of individual areas of the risk management and monitoring systems, and to contribute toward improving those systems as well as toward cost efficiency in internal business processes.

Our Group companies Turner and CIMIC additionally have their own independent audit units. Audit findings are used to further optimize risk management and notably the early detection and control of risk. The processes operated by Corporate Auditing follow international auditing standards and undergo regular independent quality assessments.

Internal control system at HOCHTIEF

Our internal control system (ICS) is based on the principles, guidelines, and measures applied at HOCHTIEF for the organizational implementation of Executive Board decisions. It is geared to ensuring and documenting the fitness for purpose and effectiveness of the system for mitigating all material operating and financial corporate risks as well as for reducing these risks to a level that is appropriate for the Company. HOCHTIEF developed the ICS on the basis of the globally recognized Internal Control-Integrated Framework (COSO Framework) issued in 2013 by the Committee of Sponsoring Organizations of the Treadway Commission, adapting the framework to the Company's needs. The Framework defines the elements of a control system and sets the benchmark for assessing the adequacy and effectiveness of an ICS.

Internal control system in relation to non-accounting processes ${ }^{1}$

The adequacy and effectiveness of the internal control system (ICS) is ensured by measures and controls adapted to HOCHTIEF's business activities. The necessary controls are then defined and documented. Since the beginning of 2023, Group-wide formal requirements have been implemented in the form of uniform risk control matrices that also cover non-financial business processes. Regular spot checks are made by the process owners and Corporate Auditing to assess the effectiveness of the controls. These form the basis of a self-assessment of control adequacy and effectiveness. Oversight of the ICS is the responsibility of Corporate Auditing, which reviews compliance with legal requirements and internal directives as well as performing effectiveness assessment.

A further element of the ICS is a compliance management system (CMS) reflecting the enterprise's risk situation. The aim of our compliance system (for further information, please see the Governance section) is to prevent corruption, antitrust infringements, and anti-money laundering (AML) violations from the outset. This is achieved by implementing a comprehensive CMS that includes the identification of and assignment of measures to compliance risks and is subject to continuous monitoring and improvement. Among other aspects, our focus here is on regular workforce training as well as on adopting suitable processes and systematic controls. It is thus the job of the compliance organization to put organizational precautions in place so as to secure compliance with prevailing law and in-house compliance requirements on the part of the Company, its decision-making bodies, and the workforce.

The Executive Board, the Supervisory Board, and the Audit Committee are regularly informed about potential material control deficiencies and the effectiveness of the established controls. No material discrepancies were known to management in 2024 that would call into question the adequacy and effectiveness of the ICS.

Internal control and risk management system in relation to the financial reporting process

Proper and reliable financial reporting is of key significance in making management decisions as well as in providing information to stakeholders and the public. The reporting includes the Annual Financial Statements of HOCHTIEF Aktiengesellschaft, HOCHTIEF's Consolidated Financial Statements, and the Combined Management Report. Risk analysis and control definition work carried out at the beginning of the process identifies significant control deficiencies for the accounting and financial reporting processes and for other processes in material companies, organizational units, and Group functions. Risks associated with the Group financial reporting process are dealt with in the following ways at the HOCHTIEF Group: IFRS Accounting Guidelines, which are updated annually, ensure uniform accounting recognition and measurement throughout the Group. Annually updated German Commercial Code (HGB) accounting guidelines also have to be followed for German Group companies. Subsidiaries-in close consultation with Corporate Accounting-are responsible for adhering to the Group-wide accounting policies in their financial statements.

Accounting for financial instruments is carried out in consultation with the Corporate Finance department. This ensures the reliability and accuracy of the figures used.

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[^0]: ${ }^{1}$ This section on the internal control system in relation to non-accounting processes is not part of the statutory audit of the annual financial statements and consolidated financial statements according to § 317 German Commercial Code (HGIB).

The measurement of derivative financial instruments is additionally supported by a treasury management tool established throughout the industrial and banking sectors. HOCHTIEF also makes use of external service providers-for example, for the assessment of pension obligations.

The correct performance of capital, liability, expense, and income consolidation as well as interim profit elimination is aided by software-supported preparation of the consolidated financial statements and systems for validating the figures generated. If there is nonetheless any need for clarification in specific instances, the matters are investigated and remedied by Corporate Accounting. The consolidation system utilized by the Group is accessprotected. This ensures that employees are only able to access the data of relevance to them. The consolidation system is regularly reviewed by Corporate Auditing.

In the process of preparing the annual and consolidated financial statements, European Single Electronic Format (ESEF) compliance-among other things-is ensured by the use of a disclosure management system in combination with an authorization system; this is also reviewed by Corporate Auditing.

The Executive Board, the Supervisory Board, and the Audit/Sustainability Committee are regularly informed about potential material control deficiencies and the effectiveness of the established controls. No material discrepancies became known to management in 2024 that would call into question the adequacy and effectiveness of the Company's internal control and risk management system. We continuously improve our ICS and RMS on the basis of internal or external audit results. ${ }^{1}$

The members of the HOCHTIEF AG Executive Board take the necessary oath of office as part of the financial reporting process. In doing so, they confirm that the applicable accounting standards have been complied with and that the Annual and Consolidated Financial Statements convey a true and fair view of the Group's earnings, financial position and net assets and that the Group Management Report, which is combined with the Management Report of HOCHTIEF Aktiengesellschaft, presents the course of business, including the business results and the Group's position, in such a way that a true and fair view and that the significant opportunities and risks associated with the Group's expected development are described.

Sustainability statistics, which relate to the HOCHTIEF Sustainability Plan 2025 and serve to meet the requirements of non-financial reporting under the German Commercial Code (HGB), are collected, processed and analyzed Group-wide-as a rule within each year-using software-based tools. These include qualitative and quantitative information on all relevant sustainability topics. Analysis of the data is the responsibility of the respective functional departments. The results are incorporated both in annual Group reporting and in the continued development of activities relating to the Sustainability Plan. (For further information on sustainability, please see the Sustainability Statement.)

Classification of opportunities and risks

Binding definitions of risk categories ensure uniform and transparent presentation. Risk assessment and reporting serves to quantify risks with regard to potential impact and probability, after accounting for any action taken. Expected value is defined as probability of occurrence times potential impact on financial position and financial performance. The aggregated risks in the current and two subsequent years in the risk categories set out in the following are classified according to expected value as "low" (potential impact EUR 0-250 million accumulated over three years), "medium" (potential impact EUR 250-500 million accumulated over three years), or "high" (potential impact over EUR 500 million accumulated over three years). The expected value of the potential impact relates both to profit before tax and to liquidity, in each case compared to the corresponding budgeted figures. These two key figures are directly linked to the most important key performance indicators of net cash and operational net profit.

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[^0]: ${ }^{1}$ The content in this section is not part of the statutory audit of the annual financial statements and consolidated financial statements in accordance with Section 317 of the German Commercial Code.

The definition of risk applied in the HOCHTIEF Group encompasses financial and non-financial risks together with their impacts. For the internal reporting process, it is immaterial whether a reportable risk is based on financial or non-financial aspects. A reportable deviation in terms of net loss amount and expected value is given as soon as the value is above the respective reporting limits. In this way, material risks-within the meaning of Section 315c (2) in conjunction with Section 289c (3) Sentence 1 No. 3 and No. 4 of the German Commercial Code-that are likely to have a substantial negative impact on non-financial aspects are taken into account. Risks whose impact is below the reporting threshold are only included if they have a large potential impact on non-financial aspects or if the financial impact is likely to be large but currently unquantifiable.

With regard to the non-financial aspects in accordance with the German Commercial Code, sustainability management is decentralized at HOCHTIEF but centrally supervised by Corporate Department Sustainability. Non-financial aspects of our operations are controlled and monitored by HOCHTIEF's Chief Sustainability Officer. Also the Corporate Headquarters functional departments analyze the risks relevant to the thematic areas in connection with their core responsibilities and within their target systems. Impacts on the environment and society, and the resulting risks and opportunities, are additionally processed at project level. Environmental and stakeholder management plans are thus standard tools in construction project execution.

As with risks, opportunities are assessed for their impact on profit before tax and on liquidity. We see opportunities for HOCHTIEF above all in our core markets, where we actively evaluate growth potential primarily in our established market segments.

The overall risk exposure for the HOCHTIEF Group is determined by taking the sum total of the expected individual risk exposures and aggregating at Group level by segments and the stated categories. Opportunities are primarily established by closely observing markets and identifying available market potential in all segments served by the Group.

Opportunity and risk situation in the HOCHTIEF Group

The overall risk position identified at HOCHTIEF for 2024 principally relates to risks assigned to the individual categories as explained in the following.

Market and regulatory risk

The HOCHTIEF Group's economic performance is closely tied to macroeconomic trends and business cycles in the countries and regions where HOCHTIEF operates. For further information on our markets and HOCHTIEF's positioning, please see the Markets and Operating Environment and Segment Reporting sections.

Market risk ${ }^{1}$

We closely monitor world economic and geopolitical developments in the regions and markets key to HOCHTIEF. HOCHTIEF's operations focus on attractive markets in North America, Australia, Southeast Asia and Europe. We occupy outstanding positions in our chosen segments worldwide. From this base, we continue to see good opportunities to further bolster our market position and core business in line with our goals and to create sustainable value for all stakeholders and generate improving cash-backed profitability.

Changes in the geopolitical situation may have negative long-term impacts on the global economy and may lead to decreased public investment spending. This may lower the long-term growth outlook in the markets key to HOCHTIEF and/or impair future business development. With its strong global presence centered on developed markets and its prestigious local operations, HOCHTIEF is well positioned to manage potential regional fluctuations and respond flexibly to risks of this kind.

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[^0]: ${ }^{1}$ For further information on the HOCHTIEF markets, please see the Markets and Operating Environment section.

Ongoing political tensions could potentially have an impact on the global economy and trigger financial market shocks. While the Group has no operating business in the affected regions, these conflicts could impact the Group indirectly through factors such as rising commodity prices and, as a result, potentially higher energy and supply prices. Likewise, higher interest rates may compact the financial viability of construction investments of our clients. To compensate these effects in a constructive manner, HOCHTIEF strives to work with customers from an early phase onward in order to optimize project planning and design to manage these impacts equitably overall and ensure a fair balance of interests. Wherever possible, this includes the use of escalation clauses or the agreement of fixed prices with our suppliers in order to avoid input price fluctuations. This allows HOCHTIEF to reduce the risk to a negligible level.

Political uncertainties in Europe, political populism, and protectionism may have negative effects on the European economic region. In particular, tariff policy measures in a number of countries outside the European Union could have a negative effect on contract awards. Given the numerous state investment programs in individual European countries, we see very good opportunities, which we intend to continue capitalizing upon.

We rate the risks in connection with market risks as low.

Regulatory risk

Given our business activities and significant international presence, HOCHTIEF has to contend with risks arising from potential regulatory changes, at present particularly in the areas of tax and environmental protection.

Such risks can affect our key performance indicators and impact our earnings situation, notably in the case of projects lasting several years. HOCHTIEF continuously monitors national and international regulatory initiatives as well as any potential resultant changes which could affect the Company in the various markets.

We address the increasingly stringent legal requirements with regard to sustainability criteria and environment protection at operational level with energy-efficient and low-carbon solutions in building construction and civil engineering, which enable us to offer our clients sustainable solutions. HOCHTIEF is among the leading providers here and can make use of its strong market position. In addition, we are developing numerous measures to further improve our sustainability performance as part of our Sustainability Plan 2025. Environmental regulations can drive up operating costs in our projects, although these are generally passed on to clients.

We currently do not consider there to be any significant regulatory risks for HOCHTIEF within the framework of the above risk areas and therefore classify the risk as low. In addition, we are increasingly seeing business opportunities to apply our expertise to help clients meet increasing sustainability requirements.

Procurement risk

HOCHTIEF's procurement management ensures that only business partners - both subcontractors and suppli-ers-are selected that meet our ESG standards (for further information, please see the Governance section). By maintaining a constant watch over the market and close contact with subcontractors, suppliers, and institutions, we ensure that we can quickly spot changes on the procurement market and respond accordingly.

Material prices held stable for the construction industry across much of Europe in the reporting year, while the shortages seen in the preceding years have now eased. However, prices have risen for leased machinery and equipment, as well as for freight.

In the USA, raw material prices and delivery lead times have stabilized. At the same time, challenges have arisen in the area of transportation, notably due to the conflict in Gaza and its impact on the regions along the Suez Canal, as well as due to the extreme drought in the Panama Canal region. In some parts of the U.S., we faced not only a shortage of labor, but also a shortage of materials-particularly steel.

On the Australian market, raw material prices have largely stabilized, whereas concrete prices have con-tinued to rise. CIMIC has developed various strategies in response to these price increases, including improved models for indexed back-to-back pricing. The Australian market also faces a persistent labor shortage, notably in regions where new contracts were won. In this connection, CIMIC has continued its efforts to establish vocational training centers and programs, among other things to attract more women to work in the construction industry.

In general, we address price increases and shortages affecting our business with proactive procurement management. Together with our clients and partners, we actively counter these developments and man-age them through our long-standing, strong position in key local markets and the use of risk-minimizing contract models. To identify ESG-related risks in our supply chain-in areas such as human rights or the environment-we regularly conduct risk assessments of our business partners and take targeted action to mitigate risk where necessary. Through our extensive business partner prequalification process and partner evaluation in projects both during and after project execution, we stay abreast of market developments-opments as well as the technical and commercial capabilities of our partners. This also includes the sus-tainability performance of our subcontractors and suppliers.

Our proactive procurement management thus reduces business partner risk and creates alternatives to best meet the needs of our stakeholders. Based on the current global economic situation and anticipated developments as well as on our comprehensive risk management process, we classify HOCHTIEF's overall procurement risk as low.

Reputation risk

In its projects, HOCHTIEF works closely with a wide variety of stakeholder groups on an ongoing basis in order to identify local needs and requirements and respond accordingly. Stakeholder information and communication are consequently a standard part of project management and also serve to prevent risks so as, for instance, to avoid delays in project execution. At the same time, we address social risk that can arise from the Group's business activities - in an illustrative analysis on managing the impact of construction activity, for instance.

Regular, detailed market research on the Group's reputation and image provides additional indications as to how it is perceived in the public eye.

We rate the risks in connection with reputation issues as low.

Environmental risk

Our risk management takes into account environmental risks with a direct or indirect bearing on HOCHTIEF's business activities, and likewise risks to our stakeholders and the environment-air, water, and soil purity, health, species conservation, etc. - resulting from our products and services. These are taken into account as project risks.

Additional risk factors relate to climate change, including phenomena such as the proliferation of extreme weather events such as storms, increased precipitation, extreme heat waves, and droughts. At HOCHTIEF, climate risk is defined as damage caused by climate events that potentially has negative impacts on the qualitative or quantitative attainment of business targets. In order to identify the impacts of climate change for HOCHTIEF as a whole and to adequately assess the risks involved, we make use of external frameworks such as that of the Task Force on Climate-related Financial Disclosures (TCFD). In 2024, HOCHTIEF carried out a comprehensive climate scenario analysis based on internationally recognized and science-based institutions. Please refer to the climate change section of the Sustainability Statement for further details on the scenario models used, the methodology, and HOCHTIEF's corresponding actions and adaptation strategies in connection with climate change mitigation and decarbonization.

At operational level in our project activities, climate risk is treated as part of project risks because it is directly connected to project execution. Our construction projects can be held up by exceptional weather conditions such as heavy rain, floods, storms, and extreme heat and cold. This can lead to reduced productivity. It can also endanger the safety of employees, subcontractors, and third parties. For this reason, preventive and protective measures are taken in our projects. The cost risk associated with any damage that can still occur in a construction project due to unusual or exceptional weather events is assessed at project level and generally transferred to insurers.

Prevention of environmental incidents is also a top priority, as these can have a lasting negative impact on the environment, people, and wildlife, and can also adversely impact project profitability and the Company's reputation. As part of our environmental management, we identify potential hazards and factor them into project planning. We also record and analyze environmental accidents in order to be able to take preventive measures in the future.

In HOCHTIEF's core business of construction, material GHG emissions are generated in activities in the upstream and downstream value chains (Scope 3 emissions). This brings with it a major responsibility in terms of impact management, while at the same time sustainable business practices offer an opportunity to contribute actively toward climate change mitigation.

We rate the risks in connection with environmental issues as low.

Climate change drives increasing demand for resilient infrastructure and adaptive measures, including built structures for renewable energy, flood control, water supply and wastewater management, reconstruction of infrastructure damaged by extreme weather events, and investment in more resilient infrastructure. These examples demonstrate the new business opportunities that HOCHTIEF considers itself well positioned to exploit on the strength of its capabilities. We already successfully serve the growing market for sustainable certification of buildings and infrastructure projects - an area in which we see substantial additional growth potential.

Financial risk

Financial management has the task of coordinating financial requirements within the Group and safeguarding its long-term financial independence at all times. To this end, HOCHTIEF proceeds on the foundation of sound Group financing secured for the years ahead and works to limit financial risk. Financial activities in the HOCHTIEF Group are conducted on the basis of a Group-wide financial directive. The general financial directive is supplemented with functional, operating-level work instructions. They also govern the use of financial instruments and derivatives, which may only be entered into for hedging purposes.

The primary objective of financial risk management is to safeguard Group liquidity at all times. For the HOCHTIEF Group, liquidity not only means solvency in the strict sense, but also the long-term availability of the financial headroom needed for the basic operating business (such as collateral management/bank guarantees). Safeguarding liquidity at all times therefore requires integrated management of all Group financial resources, including its credit standing and hence borrowing capacity.

A further objective is to minimize financial risks affecting the value and profitability of the HOCHTIEF Group (currency, interest rate, exchange rate, and commodity price risks of all kinds, as well as counterparty risks). HOCHTIEF uses largely centralized liquidity structures-notably cash pooling-to pool liquidity at Group level, among other things to avoid cash flow bottlenecks at the level of individual entities.

Principally HOCHTIEF's operational companies have natural hedges, i.e. revenues and costs typically occur in the same currency, however, in some cases HOCHTIEF is exposed to currency risk (transaction risk) if receivables, liabilities, cash and cash equivalents, marketable securities, and pending transactions are in currencies other than the functional currency of the Group company concerned in each instance. Currency derivatives, mainly forward exchange contracts, are used to hedge against fluctuations in these payments or items caused by exchange rates.

HOCHTIEF is exposed to interest rate risk through financial items primarily consisting of interest-bearing marketable securities and financial liabilities on the liabilities side of the balance sheet. Two approaches are used to minimize this risk. Firstly, the Company uses natural hedging, meaning that it eliminates contrary interest rate risk from non-derivative financial instruments on the assets and liabilities sides. The second method is to use interest rate derivatives.

As a significant component of counterparty risk, the HOCHTIEF Group is exposed to credit risk from operations and from certain financing activities. HOCHTIEF performs risk management for operations by continuously monitoring trade receivables at operational company level. If a specific credit risk is detected, it is countered by recognizing an individual impairment in the necessary amount.

In addition, a strict separation of responsibilities is maintained within the Group between financing and trading activities on the one hand and the corresponding control and settlement activities on the other. All trading transactions are compulsorily subject to dual control at minimum. Compliance with all directives and requirements is regularly checked by the internal audit function.

Potential financial risks are tracked and monitored via the monthly reporting system. This includes cash budgeting with a long-term planning horizon ( 18 months) and thus provides the basis for coordinating and securing finance requirements at Group level. In addition to known amounts due under existing Group financing arrangements, cash budgeting also includes budgeting for cash inflows and outflows. The impacts of specified stress scenarios on the cash position are also presented.

No financial covenants feature in the respective documentation to HOCHTIEF Aktiengesellschaft's main financing instruments, comprising capital market and bank borrowing facilities, both syndicated and bilateral.

In light of our financial management, we assess our overall financial risk as low.

Human resources and social risk

All employees contribute decisively to HOCHTIEF's business success. In this connection, our human resources strategy (further information in the Own workforce section) delivers a valuable contribution to the HOCHTIEF corporate strategy. Although the situation on the labor market for some groups of employees continues to be tight, HOCHTIEF is able to meet most of its demand for qualified employees. The priority remains to convey a positive image and to maintain and further expand our attractiveness as an employer for different target groups and skill profiles. Furthermore, we want to develop and optimally deploy our employees and high-potential employees. We also ensure the achievement of these goals through the measures anchored in our Sustainability Plan 2025.

A systematic survey conducted on the basis of a risk guide captures major risk categories such as skill, motivation, staff turnover, and succession risk together with the potential impacts on HOCHTIEF. The risk management classification scheme in human resources is regularly reviewed for new risks and adapted as necessary.

We attach top priority to occupational safety and health protection for our employees (further information in the Own workforce section) because every accident also means human suffering. In addition, effective occupational health and safety prevents project risks, since accidents at work have a negative impact on profitable project execution. Deficiencies in the area of occupational safety can also harm the Company's reputation.

Safety is the foundation underpinning all of our Group's guiding principles. Detailed hazard assessments serve to identify safety risks on project sites and in our offices as well as to counter those risks either preventively or with targeted action. The lost time injury frequency rate (LTIFR) is one of the most important non-financial key performance indicators. This underscores the importance of safety for HOCHTIEF and for this reason is also part of our Sustainability Plan 2025.

Our focus is on proactively avoiding work accidents and workplace-related illness. Regular action days, intranet and poster campaigns as well as training raise employee awareness of issues surrounding occupational safety, health, and environmental protection. This applies in equal measure to the contractors for whom we are legally responsible. Contractors for whom there is no direct legal responsibility are also closely involved in our occupational safety activities.

We classify the risk to our companies and activities with regard to occupational safety and health protection as low.

Risk arising from pension obligations

Largely covered by plan assets, pension obligations at HOCHTIEF are backed by sound asset holdings. Plan assets comprise a range of different asset classes based on balanced strategic portfolio allocation as well as the matching of portfolio structure to pension durations and the expected development of pension obligations. This broadly diversified investment strategy puts HOCHTIEF in a position to offset, to the greatest possible extent, capital market movements that affect the value of plan assets and any pension plan deficit. Changes in measurement parameters such as the discount factor or life expectancies can also lead to an increase in the pension obligations as measured on actuarial principles.

Risk arising from HOCHTIEF's pension obligations is rated as low.

Internal and technological risk

HOCHTIEF addresses IT risks at all levels of the organization. Under Supervisory Board oversight and Executive Board responsibility, policies are implemented by an IT security function with the support of specialized security consultants and capable operational service providers. Continuous awareness training ensures compliance by employees in their everyday work. IT service categories are clearly set out in service certificates forming part of our service contracts. Compliance with technical availability, data security, and integrity requirements is ensured by stipulating measurable targets. Steps are taken to ensure adherence to the exacting standards required in the case of mission-critical systems. The deployment of cutting-edge hardware and software coupled with digital and physical access control protect data from unauthorized access. Critical data is kept in separate fire compartments inside certified data centers. Regular external penetration tests verify the ability of our firewall systems to withstand cyber attacks. Confidential data and files-for data storage and e-mail, for example-are protected by technical and organizational measures such as the use of encryption systems. We are also vigilant with regard to cyber crime and adapt our measures to the latest threats on an ongoing basis.

Our IT Security Directive, which applies to HOCHTIEF's segments, is continuously refined on the basis of the latest standards and with the support of experts, and is verified by audits both in Germany and internationally. This ensures that the requirements on data security, confidentiality, and availability are met.

Data protection

HOCHTIEF takes the protection of personal data very seriously-for employees, clients, and business partners alike-and consequently pays particular attention to ensuring high standards of data protection when processing such data. Consequently, HOCHTIEF has a well-developed data protection organization, with data protection officers in Germany, the Czech Republic, the United Kingdom, Poland, and Luxembourg. Data protection coordinators assist management in complying with the obligations under the EU General Data Protection Regulation (GDPR) and Group data protection requirements. They are appointed by their companies and work closely with the data protection officers in charge. Support with regard to data protection law is provided by the Legal department.

HOCHTIEF has laid down standards for the handling of personal data at HOCHTIEF Europe in a Group data protection directive as well as in work instructions. Alongside regular training for data protection coordinators and all employees, this covers internal audits to verify compliance with data protection requirements. HOCHTIEF provides information on data protection for all employees on the corporate intranet. Processing of personal data at each HOCHTIEF company is tracked in the record of processing activities.

Personal data is processed on the basis of suitable technical and organizational measures for data security. Where processing is outsourced to service providers, these are subject to a meticulous selection process and monitoring and verification rights secured in a contract processing agreement. HOCHTIEF's data protection coordinators, data protection officers, and Legal department are involved in the process leading to any such agreement. This ensures compliance with high standards of data protection whenever outside service providers are used. In accordance with undertakings they are required to sign by HOCHTIEF, service providers ensure that personal data is processed solely in accordance with statutory requirements.

HOCHTIEF expects all employees to comply with data protection requirements in their everyday work. In order to be able to respond quickly and appropriately in the event of a data breach, HOCHTIEF has implemented an incident reporting process that can also be used anonymously. Any internally reported data breaches are investigated with the involvement of the responsible data protection coordinators, data protection officers, the Legal department and, where necessary, the relevant IT departments. In individual cases, outside legal advice is sought. Without exception, all breaches are exhaustively investigated and assessed. Where applicable, they are reported to the competent supervisory authority within the period required by law. Close cooperation with the supervisory authorities in this regard is a matter of course for HOCHTIEF. Incidents are documented andif necessary-concluded with an action plan to prevent repeat occurrences as far as possible.

HOCHTIEF has not had any notable data protection incident to date. Given the rapid pace of developments, as well as the many requirements that apply and are subject to ongoing revision, HOCHTIEF will continue to place a commensurate focus on data protection in the future.

We classify internal and technological risk, including data protection risk, as low.

Project and contract risk

Project and contract risks are a key risk management category in our mainstream construction business. Engineering risks resulting from factors such as complex geology in construction projects thus feature among the challenges of our business. We address these risks with the engineering expertise and long-standing contracting experience of our expert workforce. Costing and pricing risks are inherent in all projects and the appraisal of pro-ject-specific change orders also harbors risks that are continuously monitored. Risks that require monitoringsuch as a changed demand situation-also arise in our non-construction businesses and notably in resource services, public-private partnerships, and services.

As an engineering-led, global infrastructure group, HOCHTIEF also faces contractual risks. Compliance is a key element in the implementation of our guiding principles. Our normal business operations expose us to a number of risks in connection with lawsuits, claims, and regulatory proceedings, even if it is our aim to avoid court cases wherever possible. In some cases, the outcome of legal disputes and regulatory proceedings is hard to predict. By involving our legal departments at an early stage prior to legal proceedings, assigning specialized in-house teams to accompany such proceedings, and mandating experienced law firms, we ensure that process risks are mitigated wherever possible. In addition to the costs and expenses arising from proceedings themselves, the possibility of adverse rulings in individual cases cannot be ruled out. Provisions for ongoing litigation are recognized on the basis of estimated risk. We consider these accounting provisions to be sufficient.

In the Engineering and Construction segment, risk relating to design issues significantly impacted the C470 project in Colorado, USA. The Flatiron project entailed adding tolled express lanes in each direction and replacing/widening bridges along a 20-kilometer-long segment of the C470, and reconstructing the interchange with the I-25. Flatiron claims the reimbursement of cost increases, a court case is in appeal with a ruling expected in 2025 at the earliest.

Together with partners, Flatiron completed the New Champlain Bridge corridor project in Montreal, Canada. The joint venture was responsible for the construction of a new bridge over the St. Lawrence River. Construction was affected by a crane operator strike in 2018 and several design issues. As it was not possible to reach agreement with the client on the claims involved, the joint venture has been pursuing them in court since October 2021.

In Germany, a collapse occurred in the Rastatt Tunnel project. HOCHTIEF is part of a joint venture for the construction of a tunnel as part of the Karlsruhe-Basel high-speed rail link for German rail track operator DB Netz AG. In August 2017, a damage occurred at the partially constructed tunnel, with the subsequent temporary closure of the existing rail link along the Rhine Valley. The joint venture and DB Netz AG agreed to identify the causes and responsibilities in an extrajudicial dispute resolution proceeding which is still ongoing.

In the CIMIC segment, CIMIC's wholly owned subsidiary, CPB Contractors, and its joint venture partner Hansen Yuncken, in a 50/50 joint venture, were awarded the design and construction of the new Royal Adelaide Hospital for the South Australian State Government. The project experienced difficulties and delays arising from the complex interdependencies between the State's works and the joint venture's works and a dispute between the parties arose. The arbitration to settle the dispute between the parties is ongoing. The evidence phase of the hearing is complete and the parties' closing submissions were heard in July and early August 2024. The arbitration award is expected in 2025.

CIMIC's wholly owned subsidiaries, CPB Contractors and UGL, in conjunction with their joint venture partner, Ghella Pty Ltd, were contracted to deliver the M6 Stage 1 project for Transport for NSW. During the course of 2024, the project experienced significant issues due to differing ground conditions not anticipated at time of tender (geotechnical events). As a consequence of these conditions, works in the affected areas have

stopped. A suitable revised engineering methodology is being developed and without prejudice negotiations are underway between the parties to find an appropriate commercial resolution.

On February 13, 2012, CIMIC announced that it had reported to the Australian Federal Police ("AFP") a possible breach by the Leighton International business of its Code of Ethics that, if substantiated, may have contravened Australian laws. The matter has been, and in some cases continues to be, subject to the investigations below:

In March 2014, the Australian Securities and Investment Commission ("ASIC") commenced a formal investigation into potential breaches of the Corporations Act relating to a number of matters being investigated by the AFP. In March 2017, ASIC advised CIMIC that its investigation has concluded and it will take no further action. On May 22, 2018, the UK Serious Fraud Office ("SFO") announced it has charged individuals, none of whom are CIMIC employees, and on June 26, 2018 announced it has charged a company, which is not a member of the CIMIC Group. On July 19, 201,9 the SFO announced that one individual had pleaded guilty to charges. Following trials in 2020 and 2021 the individuals were convicted on some charges. However, some of those convictions have been overturned on appeal. None of the juries' guilty findings relate to charges involving the CIMIC Group company contracts. On March 1, 2019, CIMIC entered into an investigation agreement with the Department of Justice ("DOJ"). On October 30, 2019, the US DOJ announced that in March 2019 three individuals not employed by CIMIC pleaded guilty to a charge of conspiracy to violate the Foreign Corrupt Practices Act. On November 18, 2020, the AFP advised CIMIC that it had charged an ex-employee with alleged offences relating to foreign bribery and related matters and on February 23, 2021 the AFP announced it had brought an additional charge in relation to foreign bribery. On January 11, 2021 the AFP informed CIMIC that it had charged a second ex-employee with related offences. The AFP has also indicated it may charge a further ex-employee and that its investigations continue. CIMIC does not know when the charges will be heard or the outcome of any investigation.

Based on the foregoing, we classify the risk arising from projects and contracts as low overall.
We cannot preclude the eventuality that it may be necessary to recognize significant impairment losses on our subsidiaries and associated companies in isolated cases in the future, both in the consolidated financial statements and in the annual financial statements of HOCHTIEF.

Investment risk

The investment process is governed at HOCHTIEF by an Investment Directive that defines the process, the approval procedure, and the applicable standards and instruments. As investment decisions are generally made under conditions of uncertainty, they frequently entail risk regarding the profitability of an investment-meaning the possibility of future cash inflows and returns from an investment project deviating negatively from the investment scenario, and hence of lower returns over the lifetime of the investment with an adverse impact on HOCHTIEF's financial position. Investment risk typically includes risk relating to mergers and acquisitions and to investments in companies over which HOCHTIEF does not have significant influence.

We classify overall investment risk as low.

Legal risk (including human rights, criminal offenses, and corruption)

Complex large-scale projects can involve legal risks. Provisioning has been made where necessary for all risks known to HOCHTIEF associated with legal disputes that are ongoing or are anticipated, legal claims, and official procedures relating to individual large-scale projects.

Human rights

Our efforts with regard to human rights due diligence are directed at mitigating human rights risks and preventing human rights due diligence violations. A human rights risk analysis was carried out in the re-porting year for the HOCHTIEF segments Turner, CIMIC, and Engineering and Construction in order to evaluate material human rights risks and environment-related risks in the construction business. Commu-nications activities such as human rights trainings serve to increase employee awareness and sensitivity with regard to this subject. Human rights risks were also involved in project audits in the reporting year to ensure the effectiveness of HOCHTIEFs Human Rights Corporate Management System.

We rate the risks in connection with human rights as low.

Compliance risk

A particular aim of our compliance system (further information in the Governance section) is to prevent corruption and antitrust infringements from the outset. This is put into effect by implementing a comprehensive compliance management system that is continuously monitored and improved. Among other things, one focus is on regular workforce training as well as by adopting suitable processes and systematic controls. It is thus the job of the compliance organization to put organizational precautions in place so as to secure compliance with prevailing law on the part of the Company, its decision-making bodies, and the workforce.

We therefore rate the risks in connection with compliance as low.

Opportunities from systematically pursuing the strategy

As an engineering-led, global infrastructure solutions provider with leading positions in North America, Australia and Europe, HOCHTIEF's strategy is to further strengthen its position in core markets and activities as well as to pursue growth opportunities in the areas of advanced technology, energy transition, sustainable infrastructure, and reshoring. At the same time, we are committed to cash-backed profitability and rigorous risk management. Our businesses are flexible, allowing management to quickly adapt to varying market conditions. Active and disciplined capital allocation is a high priority, and we intend to continue focusing on attractive shareholder remuneration as well as investment in strategic growth opportunities in order to generate lasting value for all stakeholders. We consistently balance economy, ecology, and social responsibility throughout all our business activities with the aim of safeguarding the Company's long-term viability. To this end, we apply a 360-degree focus, taking in our business segments and operating activities as well as our surroundings and the interests of our stakeholders.

Executive Board's overall assessment of opportunities and risks

In the 2024 reporting year, the Group continued to work on further improving its overall risk situation by increasing the focus on collaborative and lower-risk contract forms. HOCHTIEF will continue to work intensively to optimize its risk position even further. The risk management approach is kept under constant review and adjusted as necessary to preclude any volatility in HOCHTIEF's key performance indicators.

Systematic implementation of our uniform Group-wide strategy helps HOCHTIEF exploit opportunities as they arise. We expect to be able to counter potential risks and thereby avoid or reduce the negative impact on our business activities.

From the current perspective, based on their probability and potential impact on HOCHTIEF, the risks described in the foregoing report do not cast any doubt over the HOCHTIEF Group's ability to continue as a going concern.

Based on our analyses and the sound development of the business in 2024, we continue to assess HOCHTIEF's risk-bearing capacity as robust.

Report on relations with affiliated companies in accordance with Section 312 of the German Stock Corporations Act (AktG)

As there is no control agreement with our majority shareholder ACS, Actividades de Construcción y Servicios, S, A., the Executive Board of HOCHTIEF Aktiengesellschaft is required to prepare a report on relations with affiliated companies in accordance with Section 312 of the German Stock Corporations Act (AktG). This report concludes with the following statement from the Executive Board:
"We hereby declare that, according to the circumstances known to us at the time the transactions were entered into with the controlling company or any of its affiliates pursuant to Section 312 AktG, our company received appropriate consideration for each transaction.

No reportable measures were taken or not taken in the reporting period at the instigation or in the interests of the controlling company or any of its affiliates."

Consolidated Financial Statements

351 Consolidated statement of earnings
352 Consolidated statement of comprehensive income
353 Consolidated balance sheet
354 Consolidated statement of cash flows
355 Consolidated Statement of Changes in Equity
356 Notes to the Consolidated
Financial Statements
356 Accounting policies
376 Explanatory notes to the consolidated statement of earnings
383 Explanatory notes to the consolidated balance sheet
413 Other disclosures
439 Post-balance-sheet events
456 Boards

Consolidated Statement of Earnings

(EUR thousand)	Note	2024	2023
Sales	(2)	33,301,270	27,756,046
Changes in inventories		15,919	10,275
Other operating income	(3)	718,606	121,779
Materials	(4)	(24,540,943)	(20,917,756)
Personnel costs	(5)	$(6,081,043)$	$(4,811,396)$
Depreciation and amortization	(6)	$(594,415)$	$(320,593)$
Other operating expenses	(7)	$(1,664,789)$	$(1,284,646)$
Share of profits and losses of equity-method associates and joint ventures	(8)	30,148	254,245
Net income from other participating interests	(8)	83,829	59,595
Investment and interest income	(9)	206,817	147,845
Investment and interest expenses	(9)	$(471,551)$	$(300,391)$
Profit before tax		1,003,848	715,003
Income taxes	(10)	$(136,604)$	$(170,977)$
Profit after tax		867,244	544,026
Of which: Attributable to non-controlling interest	(11)	91,619	21,277
Of which: Attributable to HOCHTIEF shareholders (net profit)		775,625	522,749
Earnings per share (EUR)
Diluted and basic earnings per share	(32)	10.31	6.95

Consolidated Statement of Comprehensive Income

(EUR thousand)	Note (24)	2024	2023
Profit after tax		867,244	544,026
Items that may be reclassified subsequently to profit or loss
Currency translation differences		41,461	$(28,264)$
Changes in fair value of financial instruments
Primary		97,214	$(17,201)$
Derivative		$(15,173)$	$(10,613)$
Share of other comprehensive income of equity-method associates and joint ventures		$(80,696)$	$(37,078)$
Items that will not be reclassified to profit or loss
Remeasurement of defined benefit plans		$(3,023)$	$(30,979)$
Changes in fair value of financial instruments		6,826	4,527
Other comprehensive income (after tax)		46,609	$(119,608)$
Total comprehensive income after tax		913,853	424,418
Of which: Non-controlling interest		92,677	19,419
Of which: HOCHTIEF Group		821,176	404,999

Consolidated Balance Sheet

(EUR thousand)	Note	Dec. 31, 2024	Dec. 31, 2023
Assets
Non-current assets
Intangible assets	(12)	3,321,781	1,102,028
Property, plant and equipment	(13)	1,903,016	829,791
Investment properties	(14)	30,185	31,548
Equity-method investments	(15)	1,671,293	2,832,107
Other financial assets	(16)	137,252	219,363
Financial receivables	(17)	134,331	114,447
Other receivables and other assets	(18)	198,860	186,645
Non-current income tax assets	(19)	57,885	20
Deferred tax assets	(20)	511,661	345,677
		7,966,264	5,661,626
Current assets
Inventories	(21)	569,897	370,288
Financial receivables	(17)	53,901	146,640
Trade receivables and other receivables	(18)	7,371,079	6,891,632
Current income tax assets	(19)	146,123	159,546
Marketable securities	(22)	810,947	626,915
Cash and cash equivalents	(23)	5,720,598	5,149,536
Assets held for sale	(1)	2,016,122	-
		16,688,667	13,344,557
		24,654,931	19,006,183
Liabilities and Shareholders' Equity
Shareholders' equity	(24)
Attributable to the Group
Subscribed capital		198,941	198,941
Capital reserve		2,099,942	2,099,411
Retained earnings		$(1,673,134)$	$(1,398,873)$
Of which: Deduction for treasury stock		171,147	172,373
Accumulated other comprehensive income		39,620	$(5,931)$
Distributable profit		406,430	341,930
		1,071,799	1,235,478
Non-controlling interest		123,730	30,787
		1,195,529	1,266,265
Non-current liabilities
Provisions for pensions and similar obligations	(26)	297,679	295,443
Other provisions	(27)	482,048	322,141
Financial liabilities	(28)	6,642,624	4,550,058
Lease liabilities	(29)	507,922	326,096
Trade payables and other liabilities	(30)	417,943	187,425
Deferred tax liabilities	(20)	214,394	82,297
		8,562,610	5,763,460
Current liabilities
Other provisions	(27)	1,150,856	1,004,255
Financial liabilities	(28)	787,089	529,473
Lease liabilities	(29)	286,240	115,085
Put options granted to non-controlling interest shareholders	(33)	641,522	-
Trade payables and other liabilities	(30)	10,644,399	10,166,961
Current income tax liabilities	(31)	142,780	160,684
Liabilities associated with assets held for sale	(1)	1,243,906	-
		14,896,792	11,976,458
		24,654,931	19,006,183

Consolidated Statement of Cash Flows

(EUR thousand)	Note (36)	2024	2023
Profit before tax		1,003,848	715,003
Depreciation and amortization		594,415	320,593
Other adjustments to net profit		166,628	$(149,475)$
Changes in working capital		307,675	$(39,524)$
Interest paid		$(445,907)$	$(265,648)$
Dividends received		533,442	702,853
Interest received		211,457	165,709
Income tax paid		$(242,186)$	$(114,247)$
Cash flow from operating activities ${ }^{1}$		2,129,372	1,335,264
Intangible assets, property, plant and equipment, and investment properties
Operational purchases		$(473,704)$	$(210,789)$
Payments from asset disposals		37,379	18,259
Acquisitions and participating interests
Purchases		$(1,009,659)$	$(384,393)$
Payments from asset disposals/divestments		20,745	419,160
Changes in cash and cash equivalents due to changes in the scope of consolidation		51,058	$(1,308)$
Changes in marketable securities and financial receivables		$(114,798)$	$(90,600)$
Cash flow from investing activities		$(1,488,979)$	$(249,671)$
Payments received from sale of treasury stock		1,757	1,903
Payments into equity from non-controlling interests		-	16,345
Dividends to HOCHTIEF's and non-controlling interests		$(385,514)$	$(381,178)$
Other financing activities		-	$(20,820)$
Proceeds from new borrowing		3,888,749	2,103,713
Debt repayment		$(2,909,413)$	$(2,139,402)$
Repayment of lease liabilities		$(249,473)$	$(164,174)$
Cash flow from financing activities		346,106	$(583,613)$
Net change in cash and cash equivalents		986,499	501,980
Effect of exchange rate changes		201,900	$(158,482)$
Overall change in cash and cash equivalents		1,188,399	343,498
Cash and cash equivalents at the start of the year		5,149,536	4,806,038
Cash and cash equivalents at year-end		6,337,935	5,149,536
Of which: Included in assets held for sale		617,337	-
Of which: Cash and cash equivalents as per Consolidated Balance Sheet		5,720,598	5,149,536

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[^0]: ${ }^{1}$ In the cash flow statement, the breakdown of cash flow from operating activities has been harmonized with the presentation of the cash flow statement of the parent company ACS Actividades de Construcción y Servicios, S.A. Madrid, Spain, at the beginning of the 2024 fiscal year; however, cash flows from operating activities remain unchanged in total.

Consolidated Statement of Changes in Equity

Notes to the Consolidated Financial Statements

1. Accounting policies

General information

The Consolidated Financial Statements are prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU and with supplementary provisions of German commercial law applicable under Section 315e (1) of the German Commercial Code (HGB). There have been no changes to the accounting policies during the reporting year.

Alongside the Consolidated Statement of Earnings, the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, and the Consolidated Statement of Cash Flows, the Consolidated Financial Statements also include a Consolidated Statement of Changes in Equity. Segment reporting is provided in these Notes.

For purposes of understandability, various items are combined in the Balance Sheet and in the Statement of Earnings. These items are broken down into their constituents and commented on elsewhere in these Notes. The Statement of Earnings is presented using the nature of expense method of analysis.

The Consolidated Financial Statements are presented in euros.
HOCHTIEF Aktiengesellschaft, Essen, Germany, court of registration: Essen District Court, Commercial Register (Handelsregister) number HRB 279, is included in the consolidated financial statements of ACS Actividades de Construcción y Servicios, S.A., Madrid, Spain. The latter prepares the consolidated financial statements for the largest and smallest group of companies. The consolidated financial statements of ACS Actividades de Construcción y Servicios, S.A., Madrid, Spain, are published in the register of Comisión Nacional del Mercado de Valores; the consolidated financial statements of HOCHTIEF Aktiengesellschaft are published in the Company Register (Unternehmensregister).

The Consolidated Financial Statements relate to the 2024 reporting year, comprising the reporting period from January 1 to December 31, 2024.

The Executive Board of HOCHTIEF Aktiengesellschaft released the financial statements for publication on February 18, 2025. They are to be approved at the Supervisory Board meeting on February 19, 2025.

Basis of consolidation

The Consolidated Financial Statements include HOCHTIEF Aktiengesellschaft as well as fundamentally all German and foreign subsidiaries under its direct or indirect control. HOCHTIEF Aktiengesellschaft is normally considered to control a company when it holds the majority of the voting rights. This generally goes hand in hand with a majority shareholding. As in the prior year, eleven companies are fully consolidated by virtue of contractual arrangements. Associates and joint ventures are accounted for using the equity method. Companies in which HOCHTIEF Aktiengesellschaft holds a majority of voting rights but over which it exercises joint control by contractual arrangement with other parties are likewise accounted for using the equity method unless classified as joint operations.

Holdings in subsidiaries or associated companies or joint ventures deemed to be of minor overall significance from a Group perspective are not consolidated and are accounted for in accordance with IFRS 9.

A number of the subsidiaries included in the Consolidated Financial Statements make partial use of the exempting provisions in either Section 264 (3) or Section 264b of the German Commercial Code. A list of the companies that make use of these exemptions is included in Note 42.

The Consolidated Financial Statements as of December 31, 2024 include HOCHTIEF Aktiengesellschaft and a total of 43 German and 439 foreign consolidated companies as well as four consolidated special-purpose investment funds (Spezialfonds). The number of consolidated companies increased by 106 compared with the previous year. The number of special-purpose investment funds stayed the same. A total of three German and 124 foreign companies were consolidated for the first time in the reporting year. The additions were in the CIMIC segment (102), the Turner segment (18), and the Engineering and Construction segment (7). Two domestic and 19 foreign companies were removed from the consolidated group. The companies removed from the consolidated group relate to the Turner segment (10), the CIMIC segment (7), the Engineering and Construction segment (3), and the Corporate segment (1). An entity is generally added to or removed from the consolidated group at the time the equity stake in the entity is acquired or disposed of

21 affiliated companies of minor overall significance to the Group's financial position and results of operations were not consolidated (prior year: 26 affiliated companies). Their combined sales represented less than $1 \%$ of consolidated sales.

17 domestic and 81 foreign associates were accounted for using the equity method. This number declined by a total of two companies. The addition of 19 companies was offset by 21 removals. The additions were in the CIMIC segment (14) as well as the Engineering and Construction segment (4) and the Turner segment (1). The removals relate to the CIMIC segment (12), the Engineering and Construction segment (5) and the Turner segment (4). Due to their minor overall significance, a further ten companies were not accounted for using the equity method.

A total of 154 joint operations are included in the Consolidated Financial Statements on a proportionate basis. These relate to the CIMIC segment (80), the Turner segment (47) as well as the Engineering and Construction segment (27) (2023: 125 joint operations).

Acquisitions

Thless Group

On April 23, 2024, CIMIC Group Limited, New South Wales, Australia ("CIMIC") acquired an additional 10\% interest in Thless Group Holdings Pty Ltd, New South Wales, Australia ("Thless"), consisting of ordinary shares, Class A preference shares, and Class C preference shares previously held by Elliott Advisors (UK) Ltd, London, United Kingdom ("Elliott"). The acquisition for a cash purchase price of EUR 193.5 million increases CIMIC's ownership of Thless to 60\%. CIMIC and Elliott continue to be equally represented on the Thless Board of Directors. Under the revised shareholders agreement, however, CIMIC has greater control over the company's day-to-day operations. Consequently, CIMIC now has the ability to direct Thless' relevant activities and, as such, Thless is a controlled entity under IFRS. Elliott's retained interest is reported in the consolidated balance sheet under "non-controlling interest".

Thless is a leading global provider of diversified mining services. Its business based on long-term, low-risk contracts strengthens the Group's business profile. The acquisition supplements the resource portfolio with metals and minerals that are crucial for the global pathway to zero emissions, thus reflecting the strategic importance of the energy transition for the Group.

In accordance with IFRS 3, the business combination was accounted for as a step acquisition as follows: The purchase consideration was determined to be EUR 1,725.0 million, of which none was deferred. It comprises the cash consideration paid, the interests previously held by CIMIC remeasured at fair value, and the total value of the non-controlling interest. The fair value of the identifiable net liabilities of Thless acquired by the Group amounted to EUR 175.3 million.

The accounting for the acquisition and purchase price allocation were finalized before the issuance of these financial statements. The values of the assets and liabilities acquired include valuations of property, plant and equipment and intangible assets by external experts, as well as fair value adjustments on contract debtors, existing capitalized transaction costs, tax contingencies and for certain contracts with unfavourable terms relative to

market at acquisition date. The Group's existing stake at the date that control was obtained, was measured at fair value with the support from external experts.

The following table shows the purchase price allocation and the total amount of the consideration attributed to goodwill.
(EUR million)

Fair value of assets and liabilities of Thiess
Property, plant and equipment	1,050
Intangible assets	366
Cash and cash equivalents	62
Trade and other receivables	925
Other assets	201
Payables and other liabilities	$(2,292)$
Provisions	(115)
Lease liabilities	(362)
Less: Thiess non-controlling interest	(10)
Total fair value of net assets acquired	(175)
Cash purchase price (10\%)	194
Fair value of pre-existing interest (50\%)	1,505
Non-controlling interest (40\%)	26
Total consideration (100\%)	1,725
Goodwill	1,900

The goodwill relates the future profitability and expertise of the Thiess Group and is not deductible for income tax purposes. The fair value of the trade and other receivables is EUR 924.6 million. The gross contractual amount of trade and other receivables is EUR 956.0 million, with the best estimate at acquisition date of the contractual cash flows not expected to be collected amounting to EUR 31.4 million. The non-controlling interest has been measured at the proportionate share of acquired entity's net identifiable liabilities excluding goodwill for the ordinary shares and Class A preference shares, and at fair value for the Class C preference shares as a result of their contractual terms.

Remeasurement of CIMIC's existing 50\% stake in Thiess with a carrying amount of EUR 895.5 million resulted in a gain of EUR 592.5 million, which is recognized in other operating income. The gain results from remeasurement of CIMIC's previously equity-accounted investment at fair value, less the reclassification of the reserves of the joint venture from equity to the statement of earnings, and transaction costs.

The contribution to the Group from the date of acquisition until the end of the reporting period on December 31, 2024 to sales is EUR 2,647.8 million and EUR 101.9 million of net profit. Had the acquisition taken place on January 1, 2024, the contribution to Group sales would have been EUR 3,692.4 million by the end of the period on December 31, 2024. Net profit would have increased in accordance with the 10\% increase in shareholding in Thiess by EUR 8.2 million.

Prudentia Engineering

On February 29, 2024, CIMIC, through its wholly owned subsidiary Sedgman Pty Limited, Queensland, Australia, ("Sedgman") acquired 100\% of Prudentia Process Consulting Pty Ltd ("Prudentia"). Prudentia is a project management and engineering company based in Queensland, Australia, operating in the resources sector. The company is specialized in greenfield and brownfield engineering projects in mining and minerals processing. The purchase price was EUR 20.7 million in cash, of which EUR 6.7 million was agreed as a deferred payment that has not yet been paid. The acquisition is accounted for in accordance with IFRS 3.

Prudentia's contribution to the Group was immaterial both from the acquisition date and from January 1, 2024 to the end of the reporting period on December 31, 2024.

MinSol Engineering

On April 2, 2024, CIMIC, through its wholly owned subsidiary Sedgman, acquired 100\% of MinSol Engineering Pty Ltd ("MinSol"). Based in Western Australia, Australia, the company operates in the critical minerals processing sector and specializes in engineering of hard rock lithium concentration and refining processes. The purchase price was EUR 7.9 million in cash, of which EUR 1.8 million was agreed as a deferred payment that has not yet been paid. The acquisition is accounted for in accordance with IFRS 3.

MinSol's contribution to the Group was immaterial both from the acquisition date and from January 1, 2024 to the end of the reporting period on December 31, 2024.

PYBAR

On May 31, 2024, CIMIC, through its subsidiary Thiess acquired 100\% of PYBAR Holdings Pty Ltd ("PYBAR"). PYBAR is an underground metals mining services company operating in the hard rock mining industry based in New South Wales, Australia, with projects in Queensland, New South Wales and Tasmania. The purchase consideration was EUR 33.2 million in cash, of which none was deferred. The acquisition has been accounted for in accordance with IFRS 3.

PYBAR's contribution to the Group was immaterial both from the acquisition date and from January 1, 2024 to the end of the reporting period on December 31, 2024.

Maverick

On December 2, 2024, CIMIC, through its subsidiary Leighton Asia Limited Group, acquired 100\% of Maverick United Consulting Engineers ("Maverick"). Based in Kuala Lumpur, Malaysia, Maverick is a structural engineering design consultancy firm that primarily provides services to the data center sector. The purchase price was EUR 1.9 million in cash, of which EUR 0.6 million was agreed as a deferred payment that has not yet been paid. The acquisition is accounted for in accordance with IFRS 3.

Maverick's contribution to the Group was immaterial both from the acquisition date and from January 1, 2024 to the end of the reporting period on December 31, 2024.

Assets held for sale (disposal group)

HOCHTIEF and ACS, the respective owners of Flatiron and Dragados, announced on July 30, 2024 that they had agreed on the integration of Flatiron and Dragados in North America and on key terms for a business combination of the two companies. The integrated company, named Flatiron Dragados, will be $38.2 \%$ owned by HOCHTIEF and 61.8\% by the ACS Group. HOCHTIEF contributed its shares in Flatiron on January 17, 2025 and in return received $38.2 \%$ of the shares in the new joint venture company of Flatiron Dragados Engineering and Construction, S.L., Madrid. After completion, the consolidated assets and liabilities of Flatiron will be deconsolidated and the interest in Flatiron Dragados will be accounted for as an equity-method investment.

The assets and liabilities of Flatiron are therefore accounted for as held for sale in accordance with IFRS 5 as of December 31, 2024 and are presented separately in the consolidated balance sheet. As of the balance sheet date, the major classes of assets and liabilities held for sale are cash and cash equivalents in the amount of EUR 617 million, trade receivables in the amount of EUR 484 million, other receivables and other assets in the amount of EUR 915 million, trade payables in the amount of EUR 774 million, and other liabilities in the amount of EUR 470 million.

Consolidation policies

The financial statements of German and foreign companies included in the Consolidated Financial Statements are prepared in accordance with uniform Group accounting principles. All business combinations are accounted for using the acquisition method. Business combinations are measured at the acquisition date by allocating the consideration given to the acquired subsidiary's net assets measured at fair value. Transaction costs arising in connection with such acquisitions are recognized directly as expense. All assets, liabilities, and contingent liabilities of an acquired subsidiary that satisfy the recognition criteria are measured at full fair value regardless of any minority interest. In accordance with the optional treatment under IFRS 3, non-controlling interest is measured at the acquisition date at either fair value or the present ownership instruments' proportionate share in the recognized amounts of the acquiree's net identifiable assets. Intangible assets are recognized separately from goodwill if they are separable from the reporting entity or arise from contractual or other legal rights. Any remaining positive difference is recognized as goodwill. Goodwill is not subjected to amortization, but is tested instead for impairment in accordance with IAS 36 on an annual basis and whenever there are indications that the carrying book value may be impaired. Any remaining negative difference arising from the initial measurement is recognized in profit and loss. On divestment, a pro rata share of the divesting division's goodwill is taken into account when measuring disposal proceeds.

Income, expenses, receivables, and liabilities between consolidated companies are eliminated. Intercompany profits and losses are eliminated unless they are of minor significance. Any impairment losses recognized for consolidated companies that are included in the consolidated financial statements are reversed.

Equity-method investments include the Group's associates and joint ventures. Any goodwill increases the carrying amount of an investment. Like other goodwill, goodwill on equity-method investments is not amortized. Reductions in carrying amount due to impairment are included in the share of profits and losses of equity-method associates and joint ventures. The financial statements of all equity-method investments are prepared in accordance with uniform Group accounting policies.

Currency translation

For currency translation purposes, the following exchange rates have been used for the main Group companies outside the euro area:

	Annual average		Daily average at reporting date
(All rates in EUR)	$\mathbf{2 0 2 4}$	2023	$\mathbf{2 0 2 4}$	2023
1 U.S. dollar (USD)	0.93	0.92	0.97	0.90
1 Australian dollar (AUD)	0.61	0.61	0.60	0.61
1 British pound (GBP)	1.18	1.15	1.21	1.15
100 Polish złoty (PLN)	23.26	22.11	23.39	23.04
100 Czech koruna (CZK)	3.98	4.17	3.97	4.05

In their separate financial statements, Group companies account for transactions denominated in foreign currency using the average exchange rate on the day of recording the transaction. Exchange gains or losses up to the reporting date on the measurement of foreign currency-denominated monetary assets or liabilities are included in other operating income or other operating expenses at the average exchange rate on the reporting date. Currency translation differences relating to a net investment in a foreign company are accounted for in accumulated other comprehensive income until the company is sold. This includes foreign currency receivables from fully consolidated Group companies for which settlement is neither planned nor likely to occur in the foreseeable future and which therefore resemble equity.

Financial statements of foreign companies are translated by applying the functional currency approach. As all companies outside the euro zone operate autonomously in their own national currencies, their balance sheet items are translated into euros in accordance with IAS 21 using the average exchange rate prevailing on the reporting date. The same method is used to translate the equity of equity-method foreign associates following equity-method adjustment. Differences from the previous year's translated amount are recognized in other comprehensive income and are reversed to income or expense on sale of the equity interest. Goodwill of commercially independent foreign Group entities is translated at the exchange rate prevailing on the reporting date. Income and expense items are translated into euros using the annual average exchange rate.

Accounting policies

Revenue from Contracts with Customers

Sales are accounted for in the HOCHTIEF Group net of VAT and other taxes as well as expected reductions such as trade discounts and rebates. Revenue under construction contracts as well as under construction management and service agreements is recognized as described in the following.

The contractual terms of construction contracts in the HOCHTIEF Group are predominantly based on projects (contracts) containing a single performance obligation. Contracts generally involve various interrelated activities that are required as part of the construction process. Cumulative performance to date, including the proportionate share of net profit, is generally recognized as sales over time. Project progress is mainly determined using the input method (cost-to-cost method).

Contracts are recognized as contract assets in trade receivables or as contract liabilities in trade payables according to the relationship between the HOCHTIEF Group's performance and the customer's payments. If cumulative contract performance (contract costs and contract earnings) exceeds progress payments in a given construction contract, the project is presented as a contract asset. Where the net amount after deduction of progress payments received is negative, the difference is recognized as a liability and presented under contract liabilities. Netting is carried out at project level. Contract assets are realized within one operating cycle at the HOCHTIEF Group. In accordance with IAS 1, they are therefore included in current assets even if realization of the entire receivable or performance of the construction contract extends over more than twelve months. Partperformance already invoiced is accounted for in trade receivables.

Contract income is recognized in accordance with IFRS 15 as the income stipulated in the contract plus contract modifications. Such modifications also include change orders, which are taken into account in revenue to the extent that there is an enforceable claim. Change orders may take the form of contractual clauses customary in the industry concerning the right to remuneration for unauthorized but necessary changes (such as in response to unforeseen events) or to the right to reimbursement of additional costs in the event that the client is at fault (such as disruption to the construction process). Enforceable claims are either expressly recognized by the client or an assessment is made as to whether there is a basis for a claim against the client. Where the assessment is based on judgment, the additional revenue it warrants is estimated. Such revenue is estimated based on the principles for accounting for contracts with variable consideration. An experience-based expected value including future price reductions/discounts is additionally reduced, on the basis of the rules on accounting for constraint requirements, to an amount for which it is highly probable that a significant reversal of revenue will not occur. Where modifications in design or contract requirements are entered into, the transaction price is updated to reflect them.

Revenue from construction management and service agreements arises from maintenance and other services, which may involve a range of services and processes. If different services are closely related, they comprise a single performance obligation and are performed over time. The related revenues are therefore recognized in the HOCHTIEF Group with progress over time, which is mainly determined using the input (cost-to-cost) method. As with revenue from construction contracts, there are also incentives, variations, and claims that are subject to the same requirement of only recognizing revenue to the extent it is highly probable that there will be no significant cancellations.

Contract costs incurred during a tender process are capitalized if they are both expected to be recovered and either would not have been incurred if the contract had not been won or if they are intrinsic to the delivery of the project.

Costs incurred prior to the commencement of a contract (contract fulfillment costs) may arise due to mobilization/site setup costs, feasibility studies, environmental impact studies, and preliminary design activities as these are costs incurred to fulfill a contract. Where these costs are expected to be recovered, they are capitalized and amortized over the course of the contract consistent with the transfer of service to the customer. Where the costs, or a portion of these costs, are reimbursed by the customer, the amount received is recognized as deferred revenue and allocated to the performance obligations within the contract and recognized as revenue over the course of the contract.

The HOCHTIEF Group does not have any contracts where the period up to the transfer of the promised goods or services to the customer represents a financing component. As a consequence, the Group normally does not adjust any of the transaction prices for the time value of money.

Generally, construction and services contracts include defect and warranty periods allowing completion of the project. These obligations are not deemed to be separate performance obligations and are therefore estimated and included in the total costs of the contracts. Where required, amounts are recognized in accordance with IAS 37 under provisions.

For onerous contracts, in accordance with IAS 37, a provision for onerous contracts is recognized for the difference between the expected cost of fulfilling a contract and the transaction price where the forecast costs are greater than the forecast revenue.

Items on the Consolidated Balance Sheet

Intangible assets are reported at amortized cost. All intangible assets have a finite useful life with the exception of company names recognized as assets on initial consolidation and of goodwill. Intangible assets include concessions and other licenses with useful lives of up to 30 years. These are amortized according to the pattern of consumption of economic benefits. They also include future earnings from additions to the order backlog arising from business acquisitions; these are amortized over the period in which the corresponding work is billed. Intangible assets further encompass software for commercial and engineering applications, which is amortized on a straight-line basis over three to ten years, and entitlements to various financing arrangements with banks amortized over a maximum of seven years in accordance with the term of the arrangement. Estimated useful lives and depreciation methods are reviewed annually.

Company names and goodwill are not subject to amortization. They are tested instead for impairment in accordance with IAS 36 on an annual basis and whenever there are indications that they may be impaired. The company names recognized in the Turner, CIMIC, and Engineering and Construction segments were classified as intangible assets with an indefinite useful life as they do not have a product life cycle and are not subject to technical, technological, or commercial depletion or any other restriction.

Capitalized development costs are reported in intangible assets and amortized on a straight-line basis over five years.

Property, plant and equipment is carried at depreciated cost. Only amounts directly attributable to an item of property, plant or equipment are included in cost. Borrowing costs are included in cost in the case of qualifying assets. Property, plant and equipment is normally depreciated on a straight-line basis, except in the resource services business, where depreciation is mostly recognized on an activity basis.

Items of property, plant, machinery and equipment typically encountered in the HOCHTIEF Group are depreciated on a straight-line basis over the following uniform useful lives:

	No. of years
Buildings and investment properties	$20-50$
Technical equipment and machinery; transportation equipment	$3-10$
Other equipment and office equipment	$3-10$
Right-of-use assets	$2-70$

Estimated useful lives and depreciation methods are reviewed annually.

Investment properties are stated at amortized cost. Transaction costs are included on initial measurement. The fair values of investment properties are disclosed in the Notes. The fair values are measured using internationally accepted valuation methods, such as taking comparable properties as a guide to current market prices or by applying the discounted cash flow method. As with property, plant and equipment, investment properties are normally depreciated using the straight-line method.

Impairment losses are recognized for intangible assets (including goodwill), property, plant and equipment, or investment properties if their recoverable amount falls below their carrying amount. The recoverable amount of an asset or cash-generating unit is defined as fair value less cost of disposal or value in use, whichever is higher. Impairment testing may require assets and, in some cases, liabilities to be grouped into cash-generating units. For goodwill, impairment testing is performed on cash-generating units corresponding to the HOCHTIEF segments that feature in segmental reporting. For any asset that is part of an independent cash-generating unit, impairment is determined with reference to the recoverable amount of the unit. If the recoverable amount of a cashgenerating unit falls below its carrying amount, the resulting impairment loss is allocated first to any goodwill belonging to the unit and then to the unit's other assets, normally pro rata on the basis of the carrying amount of each asset. Except in the case of goodwill, impairment charges are reversed (up to a maximum of amortized cost) when the impairment ceases to exist.

A joint arrangement is an arrangement in which two or more parties have joint control. The parties to a joint arrangement classify it as a joint operation or a joint venture depending on their respective rights and obligations. In a joint operation, the parties have direct rights to the assets and direct obligations for the liabilities relating to the arrangement. The HOCHTIEF Group recognizes assets, liabilities, revenues, and expenses, in relation to its interests in a joint operation, relative to the Group's rights and obligations. In a joint venture, where the parties have rights to the net assets arising from the arrangement, the parties each account for their interests in the joint venture using the equity method.

Equity-method investments are stated at cost, comprising the acquired equity interest in an associate or joint venture plus any goodwill. The carrying amount is increased or decreased annually to recognize the Group's share of after-tax profits or losses, any dividends, and other changes in equity. The full carrying amount is tested for impairment in accordance with IAS 36 whenever there are indications that it may be impaired. If the recoverable amount of an equity-method investment is less than its carrying amount, an impairment loss is recognized for the difference. Any subsequent reversal of an impairment loss is recognized in profit or loss. When an equitymethod investment changes status to a financial asset in accordance with IFRS 9, the carrying amount at the date the equity method was discontinued is subtracted from the fair value of the retained interest on initial recognition as a financial asset together with any proceeds from disposing of the sold interest and any difference is recognized in profit or loss.

A service concession arrangement is an arrangement under which a public entity commissions the financing, design, development, construction or expansion as well as the operation and maintenance of public service infrastructure. HOCHTIEF is paid for its services as operator over the period of the arrangement. From HOCHTIEF's perspective, the consideration paid by the public entity for the services performed may constitute rights to a financial or to an intangible asset.

Deferred taxes arising from temporary differences in the carrying amounts of assets and liabilities between the IFRS financial statements and the tax base of individual Group companies or as a result of consolidation and the expected use of existing interest and loss carryforwards are recognized as deferred tax assets and liabilities. Exceptions include that no deferred tax liability is recognized on the initial recognition of goodwill or where it would be subject to the initial recognition exemption. Deferred tax assets from temporary differences or resulting from the anticipated use of existing interest and tax loss carryforwards in subsequent years are recognized only if it is sufficiently certain that they will be realized. Deferred tax assets and liabilities are offset within each company or tax group and type of tax provided that the criteria for offsetting are met. Deferred taxes are measured on the basis of tax rates applying or expected to apply in each country when they are realized. As before, these mostly range between $10 \%$ and $35 \%$. For domestic operations, as in the prior year, a tax rate of $31.5 \%$ is assumed, taking account of corporate income tax plus the German "solidarity surcharge" and the average rate of municipal trade tax faced by Group companies. Changes in deferred tax assets and liabilities are normally recognized in the Statement of Earnings. An exception to this comprises changes accounted for in other comprehensive income or directly in equity. For all other purposes, deferred taxes are measured on the basis of the tax regulations in force or enacted at the reporting date.

In connection with IAS 12, the OECD published the Pillar Two parameters in October 2021. Pillar Two sets out the rules for a new global minimum tax rate, which was adopted in December 2021 by the OECD and G20 states under a BEPS project. The general Pillar Two rules specify a global minimum tax rate of $15 \%$ for multinational enterprises with worldwide revenue of at least EUR 750 million.

In late December 2023, the German legislation enacting the Pillar Two rules entered into force with effect from the beginning of the 2024 fiscal year. In 2023, HOCHTIEF made use of the exception to the accounting requirements for deferred taxes in this connection, which was the subject of an amendment to IAS 12 published by the IASB in 2023. The Spanish Pillar Two legislation entered into force at the end of December 2024 with effect for 2024.

As ACS falls within the scope of Pillar Two, its application also affects HOCHTIEF. However, as ACS has held more than 80\% of the shares in HOCHTIEF since 2024, HOCHTIEF Aktiengesellschaft will no longer be considered from 2024 onward to be a partially-owned parent company under the Pillar Two rules, but as a constituent entity-i.e., as a regular business unit. For the German tax group, the assessment has shown that no local topup tax will be incurred. The Pillar Two effects are determined in full at the level of ACS.

Inventories are initially measured at cost of purchase or production. Production cost includes costs directly related to the units of production. Borrowing costs for inventories that are qualifying assets are capitalized as part of cost. Most materials and supplies are measured on a FIFO or moving-average basis.

Cash and cash equivalents consist of petty cash, cash balances at banks, and marketable securities with maturities of no more than three months at the time of acquisition that are subject to insignificant fluctuations in value only.

Non-current assets held for sale and associated liabilities are measured in accordance with IFRS 5 and presented separately in the current section of the Consolidated Balance Sheet. To be classed as assets held for sale, assets must be available for immediate sale and their sale must be highly probable. Assets held for sale can be individual non-current assets, groups of assets held for sale (disposal groups), or discontinued operations. A component of an entity is a discontinued operation if it represents a separate major line of business or geographical area of operations and is part of a single coordinated plan to dispose of a major line of business or geographical area of operations, or if it is a subsidiary acquired exclusively with a view to resale. Liabilities disposed of with assets in a single transaction are part of a disposal group or discontinued operation. Non-current assets held for sale cease to be depreciated or amortized, and are measured at their carrying amount or at fair value less costs to sell, whichever is lower. Gains or losses arising on the measurement of individual assets held for sale or of disposal groups are reported in the Statement of Earnings under profit or loss from continuing operations until their ultimate disposal. Conversely, gains or losses arising on the measurement of discontinued operations at fair value less costs to sell, profits or losses of discontinued operations, and gains or losses on their disposal are presented separately in the Statement of Earnings under profit or loss from discontinued operations.

Share-based payment transactions are measured in accordance with IFRS 2 and are reported under other provisions. The stock option plans at HOCHTIEF are accounted for Group-wide as cash-settled share-based payment transactions. Provisions for obligations under the Long-term Incentive Plans are recognized in the amount of the expected expense spread over the stipulated waiting period. The fair value of stock options is measured using generally accepted financial models, the plans being measured with the Black/Scholes option pricing model and using binomial tree methods. The computations are performed by an outside appraiser.

The parent company, ACS, also grants stock options to HOCHTIEF Group executives. ACS owes the sharebased payment to the employees. As the recipient of the service rendered, HOCHTIEF accounts for this compensation as equity-settled share-based payment in accordance with IFRS 2. It is recognized as personnel expense in the statement of earnings with a counter-entry in equity.

Provisions for pensions and similar obligations are recognized for current and future benefit payments to active and former employees and their surviving dependents. The obligations primarily relate to pension benefits, partly for basic pensions and partly for optional supplementary pensions. Varying from one country to another, the individual benefit obligations are determined for the most part by length of service and pay scales. The Turner Group's obligations to meet healthcare costs for retired staff are likewise included in pension provisions due to their pension-like nature. Provisions for pensions and similar obligations are computed by the projected unit credit method. This determines the present value of future entitlements, taking into account current and future benefits already known at the reporting date plus anticipated future increases in salaries and pensions and, for the Turner Group, in healthcare costs. The computation is based on actuarial appraisals using biometric accounting principles. Plan assets as defined in IAS 19 are offset against pension obligations. Plan assets comprise assets transferred to pension funds to meet pension obligations, shares in investment funds purchased under deferred compensation arrangements, and qualifying insurance policies in the form of pension liability insurance. If the fair value of plan assets is greater than the present value of employee benefits, the difference is reportedsubject to the limit in IAS 19—under other non-current assets.

Amounts resulting from the remeasurement of defined benefit plans are accounted for directly in equity in the period during which they arise and are recognized in other comprehensive income. The current service cost is reported under personnel costs. The net interest component, comprising the interest element of the increase in pension obligations less the anticipated returns on plan assets (each calculated using the discount factor for the pension obligations), is reported in net investment and interest income.

All remaining provisions account for all current obligations as of the reporting date that result from past events but are uncertain in their amount and/or settlement date. Provisions are recognized at the best estimate, i.e. after making allowance for price and cost increases, and are not offset against any rights to reimbursement. A provision can only be recognized on the basis of a legal or constructive obligation toward third parties. Where the effect of the time value of money is material, non-current provisions are stated at the present value of the estimated settlement amount as of the reporting date; non-current provisions are presented under non-current liabilities.

Current income tax liabilities comprise payment obligations arising from current income taxes. They are offset against tax refund entitlements if they relate to the same tax jurisdiction and are identical in nature and timing. Current tax expense is normally measured for the purposes of the annual financial statements in accordance with the interpretation of the law applied by the taxation authorities. Tax returns are prepared in accordance with applicable law, taking into account current case law and updated administrative instructions.

HOCHTIEF applies the recognition and measurement obligations arising from the application of IFRIC 23 in the Consolidated Financial Statements. IFRIC 23 clarifies how to apply the accounting and measurement requirements of IAS 12 where there is uncertainty about income tax treatments relating to current and deferred tax assets and liabilities. According to IFRIC 23, uncertain tax treatments may be accounted for separately or together with one or more other uncertain tax treatments. This is determined on the basis of which approach better predicts the resolution of the uncertainty. In making the assessment, it is to be assumed that a taxation authority will examine all amounts it has a right to examine and have full knowledge of all related information when making those examinations. If it is deemed improbable that the taxation authority will accept an uncertain tax treatment, the effect of the uncertainty is reflected for each uncertain tax treatment by using either the most likely amount or the expected value, depending on which method better predicts the resolution of the uncertainty.

The Group's companies are subject to income taxes in a large number of countries around the world. When assessing global income tax assets and liabilities, the interpretation of tax laws in particular may be subject to uncertainty. It cannot be ruled out that the various tax authorities will have a different point of view regarding the correct interpretation of tax laws. Changes in assumptions about the correct interpretation of tax laws arising, for example, from court rulings are reflected in the recognition of uncertain income tax assets and liabilities in the relevant reporting year.

Potential tax receivables as a result of recent legal developments are accounted for by reducing the tax liability or, in the case of a reimbursement claim, by recognizing an asset, if realization is probable. Reductions in tax liability mutually agreed with the tax authorities are accounted for by reducing the tax liability or by recognizing a receivable.

Contingent liabilities are possible or current obligations, based on past events, that are unlikely to lead to an outflow of resources or where a sufficiently reliable estimate of the amount of the obligation cannot be made. These are disclosed separately and not recognized on the balance sheet unless assumed in the course of a business combination. The amounts stated for contingent liabilities reflect the amount of the liability as of the reporting date.

Leases

IFRS 16 sets out the principles for the recognition, measurement, presentation, and disclosure of leases both for lessees and lessors.

The Group as a lessee

Lease recognition

The Group assesses whether a contract is or contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. In such instances, the Group recognizes a right-of-use asset and a corresponding lease liability with respect to all lease agreements, except for short-term, cancelable leases and low-value leased assets. For these leases, the Group recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased assets are consumed.

The Group has a lease portfolio, comprising predominantly property, plant, operating equipment, and fleet vehicle rentals.

Measurement and presentation of right-of-use asset

The right-of-use assets recognized by the Group comprise the initial measurement of the related lease liability, any lease payments made at or before the commencement of the contract, less any lease incentives received and any direct costs. Costs incurred by the Group to dismantle the asset, restore the site or restore the asset are included at an estimated amount in the cost of the right-of-use asset.

It is subsequently measured under the cost model with any accumulated depreciation and impairment losses applied against the right-of-use asset. If the cost of the right-of-use asset reflects that the Group will exercise a purchase option, the right-of-use asset is depreciated from the commencement date to the end of the useful life of the underlying asset. Otherwise, the Group depreciates the asset over the shorter period of either the useful life of the asset or the lease term. The depreciation starts at the commencement date of the lease and the carrying value of the asset is adjusted to reflect the accumulated depreciation balance.

Any remeasurement of the lease liability is also applied against the right-of-use asset value.

The right-of-use assets are presented within property, plant and equipment in the balance sheet.

Measurement and presentation of lease liability

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Group uses its incremental borrowing rate. HOCHTIEF presents the interest expense on the lease liability separately from the depreciation charge on the right-of-use asset.

The following items are also included in the measurement of the lease liability:

• Fixed lease payments offset by any lease incentives;
• Variable lease payments, for lease liabilities which are tied to a floating index;
• The amounts expected to be payable to the lessor under residual value guarantees;
• The exercise price of purchase options (if it is reasonably certain that the option will be exercised); and
• Payments of penalties for terminating leases, if the lease term reflects the lease terminating early.

The lease liability is separately disclosed in the balance sheet. The liabilities which will be repaid within 12 months are recognized as current and the liabilities which will be repaid in excess of 12 months are recognized as non-current.

The lease liability is subsequently measured by reducing the balance to reflect the principal lease repayments made and increasing the carrying amount by the interest on the lease liability.

The Group is required to remeasure the lease liability and make an adjustment to the right-of-use asset in the following instances:

• The term of the lease has been modified or there has been a change in the Group assessment of the purchase option being exercised, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate;
• A lease contract is modified and the lease modification is not accounted for as a separate lease, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate; and
• the lease payments are adjusted due to changes in the index or a change in expected payment under a guaranteed residual value, in which cases the lease liability is remeasured by discounting the revised lease payments using the initial discount rate. However, where the lease payments change is due to a change in a floating interest rate a revised discount rate is used.

The Group as lessor

The Group enters into lease agreements as a lessor with respect to some property subleases as well as renting equipment to its partners, suppliers, and contractors. Those leases are recognized as either finance or operating leases. If the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. If this is not the case, then the lease is recognized as an operating lease. The income received from the operating leases is recognized on a straight-line basis over the lease term. Initial direct costs incurred in negotiating and arranging operating leases are included in the carrying amount of the leased asset. Amounts due from lessees under finance leases are recognized as receivables.

Financial instruments

The following section first outlines in brief the classification, measurement, and derecognition rules relevant to the HOCHTIEF Group with regard to financial assets and liabilities. Explanatory notes are then provided on the balance sheet items within the scope of IFRS 9, comprising other financial assets, long-term loans, receivables and other assets, marketable securities, liabilities, and derivative financial instruments. The cash and cash equivalents as explained above also fall within the scope of IFRS 9.

Financial assets and liabilities-except trade receivables-that are within the scope of IFRS 9 are initially recognized at fair value plus or minus transaction costs. Financial assets are measured subsequently at amortized cost or fair value on the basis of the entity's business model for managing the financial assets and the contractual cash flow characteristics of the financial assets. The following classification criteria are applied:

• Debt instruments that are held within a business model whose objective is to collect the contractual cash flows, and that have contractual cash flows that are solely payments of principal and interest on the principal amount outstanding, are measured subsequently at amortized cost (AC);
• Debt instruments that are held within a business model whose objective is both to collect the contractual cash flows and to sell the debt instruments, and that have contractual cash flows that are solely payments of principal and interest on the principal amount outstanding, are measured subsequently at fair value through other comprehensive income (FVOCl) after adjusting for deferred taxation. Unrealized gains or losses are reclassified to profit or loss on disposal;
• All other debt instruments and equity investments are normally subsequently measured at fair value through profit or loss (FVPL).

Notwithstanding the above, the HOCHTIEF Group may make the following irrevocable designation at initial recognition of a financial asset:

• The Group may irrevocably elect to present subsequent changes in fair value of an equity investment that is neither held for trading nor contingent consideration recognized by an acquirer in a business combination in other comprehensive income after adjusting for deferred taxation. Unrealized gains or losses are reclassified to retained earnings on disposal;
• The Group may irrevocably designate a debt instrument that meets the amortized cost or FVOCl criteria as measured at FVPL if doing so eliminates or significantly reduces an accounting mismatch.

With regard to measurement, expected credit losses are taken into account in the presentation of impairments of financial assets at amortized cost or FVOCl. Quantifying expected credit losses involves determining probability of default on initial recognition of an asset and subsequently whether there has been any significant increase in credit risk on an ongoing basis at each reporting period. In making this assessment, the HOCHTIEF Group considers both quantitative and qualitative information that is reasonable and supportable, including historical experience and forward-looking information that is available without undue cost or effort. Forward-looking information includes the future prospects of the industries in which the Group's debtors operate, obtained from economic expert reports, financial analysts, governmental bodies, relevant think-tanks, and other similar organizations, as well as consideration of various external sources of actual and forecast economic information that relate to the HOCHTIEF Group's core operations. In particular, as far as available, the following information is taken into account when assessing significant movements in credit risk:

• Actual or expected significant adverse changes in business, financial, or economic conditions that are expected to cause a significant change to the borrower's ability to meet its obligations.
• Actual or expected significant changes in the operating results of the borrower.
• Significant increases in credit risk on other financial instruments of the same borrower.
• External credit rating.
• Significant changes in the value of the collateral supporting the obligation or in the quality of third-party guarantees or credit enhancements.
• Significant changes in the expected performance and behavior of the borrower, including changes in the payment status of borrowers in the Group and changes in the operating results of the borrower.
• Macroeconomic information such as market interest rates and growth rates.

Financial assets are derecognized when the contractual rights to the cash flows from the financial asset expire or substantially all the risks and rewards of ownership are transferred to another entity. The HOCHTIEF Group also derecognizes financial assets if it no longer has control over an asset, although none of the substantial risks and rewards of ownership have been either transferred or retained. If the HOCHTIEF Group retains control, it continues to recognize the asset to the extent of its continuing involvement together with an associated liability for any obligations that have been retained.

The interests in non-consolidated subsidiaries and other participating interests accounted for under other financial assets fall under the FVPL or the FVOCl measurement category. In the case of publicly listed financial assets, fair value is determined as the market price. If there is no active market, fair value is normally calculated using the most recent market transactions or a valuation method such as the discounted cash flow method. Cost may be an appropriate estimate of fair value if only insufficient recent information is available to measure fair value or if there is a wide range of possible fair value measurements and cost represents the best estimate of fair value within that range. Initial measurement is performed as of the settlement date.

Long-term loans are stated at amortized cost. Loans bearing interest at normal market rates are reported at cost, and non-interest-bearing and low-interest-bearing loans are discounted to present value. Discounting is always done using a risk-adjusted discount rate.

Receivables and other assets are generally measured at amortized cost. Subsequent measurement is based on the effective interest rate method taking into account transaction costs, which are all costs that would not have been incurred had the transaction not been entered into. Receivables comprise financial receivables, trade receivables, and other receivables. Accounting provision is made for expected credit losses on receivables. For trade receivables, using the simplified approach, expected credit losses can be determined on the basis of loss rates calculated from historical and projected data taking into account the client and the regional economic environment. If there is objective material evidence that a financial asset may be impaired, the effective interest rate method is applied to the net carrying amount. Such objective evidence of impairment includes, for example, downgrading of a debtor's credit rating and related interruptions in payment or potential insolvency. For financial receivables and other receivables, expected credit losses are determined according to credit risk on the basis of the losses expected either in the next twelve months or over the remaining term. The effective interest rate is applied in such cases to the gross carrying amount. Significant changes in credit risk are taken into account on an ongoing basis. Receivables in connection with factoring are recognized in some cases at fair value in the FVPL measurement category and derecognized if substantially all risks and rewards of ownership are transferred.

The marketable securities are classified in the AC, FVPL, or FVOCl measurement category, depending on business model and contractual cash flows. These mainly comprise securities held in special-purpose funds and investment funds, as well as interest-bearing securities with a residual term of more than three months at the time of acquisition and where there is no intention to hold the securities to maturity. Initial measurement at fair value is performed as of the settlement date and includes any transaction costs directly attributable to the acquisition of the securities. Unrealized gains or losses on debt instruments measured at fair value through other comprehensive income are reported in other comprehensive income and are reversed to income or expense on disposal. Accounting provision is made for expected credit losses on securities in the AC and FVOCl measurement categories. Expected credit losses are calculated according to credit risk on the basis of the losses expected either in the next twelve months or over the remaining term. Significant changes in credit risk are taken into account. If there is no objective evidence of impairment, the effective interest rate is applied to the gross carrying amount. If, however, there is objective evidence that a financial asset may be impaired, the effective interest rate is applied to the net carrying amount.

Liabilities are recognized at amortized cost and subsequently measured using the effective interest rate method. Supply chain finance arrangements with banks match usual payment terms and do not modify the original liability toward the supplier, hence the amounts are presented under trade payables or other liabilities.

Derivative financial instruments are measured at fair value regardless of purpose and reported under other receivables and other assets or other liabilities. Initial measurement is as of the trade date. All derivative financial instruments are measured on the basis of current market rates as of the balance sheet date. The recognition of changes in fair value depends on the purpose for which a derivative is held. Derivatives are only ever used in the HOCHTIEF Group for hedging purposes. Hedges are structured for maximum effectiveness in accordance with the HOCHTIEF Group's risk management strategy and economic risk control. A cash flow hedge is a hedge of the exposure to variability in cash flows from a hedged item, as with the hedging of variable rate loans to counter variations in payment amounts due to interest rate changes. Unrealized gains and losses are generally initially recognized in the cash flow hedge reserve, taking account of deferred taxes. The portion of the changes in value initially recognized in the cash flow hedge reserve is reclassified to income or expense as soon as the hedged item is recognized in income or expense. If a hedged planned transaction subsequently results in recognition of a financial asset or a financial liability, gains or losses recognized in the cash flow hedge reserve in the meantime are reclassified to income or expense in the period when the financial asset or financial liability affects income. If a hedged planned transaction subsequently results in recognition of a non-financial asset or liability, gains or losses recognized in equity in the meantime are taken out of the cash flow hedge reserve and subtracted from or added to the initial cost of the asset or liability. In the cases described, only the portion of changes in value that are determined to be effective for hedging purposes are recognized in the cash flow hedge reserve. The ineffective portion is recognized directly as income or expense. In the HOCHTIEF Group, only cash flow hedges are entered into.

Judgements made by management in applying the accounting policies primarily relate to the following matters:

• Determination of whether an arrangement constitutes a lease.
• Financial assets may be measured, irrespective of the business model and the presence of standard cash flow conditions, at fair value if the requirements for the fair value option are met.
• Presentation of the risk management strategy in the case of hedges by the use of hedge accounting.
• Presentation of supply chain finance agreements with suppliers.
• Assets earmarked for sale must be assessed to confirm that they are available for immediate sale and their sale is highly probable. If the result of this assessment is positive, those assets and any liabilities to be disposed of in the same transaction must be reported and accounted for as assets held for sale and liabilities associated with assets held for sale. In this connection, it must be assessed whether an asset is a non-current asset, a disposal group, or a discontinued operation.
• Determination of control or joint control

We continually reassess matters and circumstances based on currently available information to consider, under IFRS, if changes are required to previous conclusions regarding control or joint control determinations.

Thiess - Accounting for acquisitions in stages: Acquisition of additional 10\%

On April 23, 2024, CIMIC acquired an additional 10\% of Thiess comprising a portion of the ordinary shares, Class A preference shares and Class C preference shares previously held by Elliott. The acquisition, for a cash purchase price of EUR 193.5 million, increases CIMIC's ownership of Thiess to 60\%.

CIMIC and Elliott continue to have equal Thiess board representation while revisions to the shareholders agreement mean that CIMIC strengthens its governance over the day-to-day operations of the company. Consequently, CIMIC has the ability to direct Thiess' relevant activities and results in Thiess becoming a controlled entity of CIMIC under IFRS, with Elliott's retained interest recognized within non-controlling interests in the consolidated balance sheet.

The terms of the April 23, 2024 transaction mean that Elliott's existing put option over the ordinary shares and Class A preference shares (Put option), is now exercisable from April 22, 2025 to December 31, 2026. Elliott's existing put option over the Class C preference shares (Thiess option) is puttable the earlier of six months after exercise of the Put option or six months after the end of the Put option period. CIMIC holds a call option to acquire the Class C preference shares from Elliott, for a period of 42 months, starting at the end of the Put option period or the date when Elliott ceases to own any Class A preference shares or ordinary shares.

In the previous year, the Put and Thiess option were recognized as derivative financial instruments in accordance with IFRS 9 at fair value. As a consequence of the April 23, 2024 transaction and the required consolidation of Thiess, the Put option and Thiess option are required to be recognized as an option over non-controlling interest (Put options granted to non-controlling interest shareholders) and the present value of the gross redemption value is recognized as a financial liability alongside a reduction in equity within reserves.

Accordingly, amounts of EUR 550.0 million (ordinary shares and Class A preference shares) and EUR 91.5 million (Class C preference shares), totaling EUR 641.5 million, without adjustment for the probability of the assets being put to CIMIC, have been recognized in the consolidated balance sheet.

For further information on the Put option and Thiess option, please see Note 33.

• Asset disposals:
• Controlled entities and businesses: determination of loss of control and fair value of consideration,
• Other assets: determination as to whether the significant risks and rewards of ownership have transferred.

The decision made by the HOCHTIEF Group for general application in each instance is set out under Accounting Policies in these Notes.

Preparation of the IFRS Consolidated Financial Statements requires Group management to make estimates and assumptions that affect the reported amount of assets, liabilities, income and expenses, and disclosures of contingencies, commitments, and other obligations. The main estimates and assumptions relate to the following:

• Contract manufacturing and sales (Notes 1 and 2):
• Determination of stage of completion
• Estimation of total contract costs
• Estimation of total contract revenue, including recognizing revenue on contract variations and claims only to the extent it is highly probable that a significant reversal in the amount recognized will not occur in the future
• Estimation of a customer's preparedness to accept contract variations and claims
• Estimation of project completion date
• Estimation of project execution productivity
• Assessing projects on a percentage of completion basis, in particular with regard to accounting for contract modifications, the timing of profit recognition, and the amount of profit recognized.
• Estimating the economic life of intangible assets, property, plant and equipment, and of investment properties (Notes 1, 12, 13, and 14)
• The measurement of expected credit losses (Notes 1 and 33)
• Accounting for provisions (Notes 1, 26, and 27)
• Impairment testing of equity-method investments (Notes 1 and 15)
• Impairment testing of goodwill on the basis of the three-year plan (Notes 1 and 12)
• Measurement of the fair value of assets and liabilities from business combinations (Notes 1 and 33)
• The assessment of the recognition of deferred taxes considering the expected future performance of the business in line with Group strategy and the identification of uncertain income tax treatments (Notes 1, 10, and 20).

All estimates and assumptions are based on current circumstances and appraisals. Forward-looking estimates and assumptions made as of the balance sheet date with a view to future business performance take account of circumstances prevailing on preparation of the Consolidated Financial Statements and future trends considered realistic for the global and industry environment. Actual amounts can vary from the estimated amounts due to changes in the operating environment that are at variance with the assumptions and lie beyond management control. If such changes occur, the assumptions and, if necessary, the carrying amounts of affected assets and liabilities are revised accordingly.

New Accounting Pronouncements

Financial reporting standards applied for the first time in 2024

Adoption by the International Accounting Standards Board (IASB) of revised or new IFRS pronouncements has resulted in changes to accounting policies in those instances where the pronouncements have been endorsed by the EU and their application is mandatory, or early application is permitted, for the reporting period January 1 to December 31, 2024.

The new pronouncements relate to amendments to the following standards: The resulting disclosure requirements had no material impact on the HOCHTIEF Consolidated Financial Statements, but have been complied with at the appropriate places in the financial statements and notes.

Amendments to IFRS 16 Leases: Lease Liability in a Sale and Leaseback
Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures: Supplier Finance Arrangements

Amendments to IAS 1 Presentation of Financial Statements:

• Classification of Liabilities as Current or Non-current
• Non-current Liabilities with Covenants

Accounting standards to be applied after the 2024 reporting year

The International Accounting Standards Board (IASB) has issued a new accounting pronouncement in the form of IFRS 18, which is relevant to the HOCHTIEF Consolidated Financial Statements, although the detailed adjustments are currently still under analysis. This standard does not have to be applied for 2024 and has not yet been endorsed by the EU.

IFRS 18 Presentation and Disclosure in Financial Statements

Published by the IASB in April 2024, the new standard will supersede the current IAS 1 Presentation of Financial Statements. It carries forward many of the requirements from IAS 1 while replacing others with new requirements. There are also amendments to IFRS 7, IAS 33, IAS 8, and IAS 7.

The most significant changes relate to the presentation and disclosure of information in financial statements and relate to:

• Specific structural changes to the primary financial statements, mainly the statement of profit or loss.
• Establishment of general principles for aggregation and disaggregation of information in the primary financial statements and notes.
• Detailed disclosures on management-defined performance indicators in the notes.

From today's perspective, the remaining IFRS pronouncements adopted by the IASB, some of which are not yet endorsed by the EU, have no major relevance for the HOCHTIEF Group. Potential implications for the Consolidated Financial Statements are currently still being assessed:

IFRS 19 Subsidiaries without Public Accountability: Disclosures

Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures: Contracts Referencing Nature-dependent Electricity

Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures: Amendments to the Classification and Measurement of Financial Instruments

Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability
As part of its annual improvements process, the IASB published an omnibus standard, Annual Improvements Volume 11, in July 2024. This made amendments to IFRS 10, IFRS 9, IFRS 7, IFRS 1, and IAS 7 relating to clarifications, simplifications, corrections, or improvements to the consistency of individual standards.

Explanatory Notes to the Consolidated Statement of Earnings

2. Sales

The EUR 33,301,270 thousand (2023: EUR 27,756,046 thousand) sales figure comprises performance obligations recognized under the percentage of completion method in the mainstream construction business and construction management, plus products and services provided to construction joint ventures, and other related services. Secondly, the sales figure includes revenues from services such as construction planning, project development, logistics, asset management, and concessions and insurance business.

Sales generated externally are allocated in the financial year/prior year based on the location of the subgroups and are broken down by segment and geographical region in the reporting period as follows (in EUR thousand):

Included in sales are EUR 506.5 million of sales adjustments. The amount of EUR 487.5 million relates to CIMIC, of which EUR 81.0 million is a sales constraint applied to variable consideration and EUR 406.5 million is a reversal of previously recognized sales.

The composition of sales in the prior-year period is as follows (EUR thousand):

2023 Geographical region Segments	North America		Asia Pacific		Europe		Total sales
Turner	16,174,272	$58.3 \%$	-	-	-	-	16,174,272	$58.3 \%$
CIMIC	-	-	8,099,585	$29.2 \%$	-	-	8,099,585	$29.2 \%$
Engineering and Construction	1,962,480	$7.1 \%$	-	-	1,335,212	$4.8 \%$	3,297,692	$11.9 \%$
Corporate	-	-	-	-	184,497	$0.6 \%$	184,497	$0.6 \%$
HOCHTIEF Group	18,136,752	$65.4 \%$	8,099,585	$29.2 \%$	1,519,709	$5.4 \%$	27,756,046	$100.0 \%$

Revenues not related to contracts with clients, mainly relating to "Other" activities in Corporate, amount to EUR 237,155 thousand (2023: EUR 268,550 thousand).

Almost all sales are recognized over time.

Revenues recognized in the reporting period that were included in contract liabilities at the beginning of the reporting period came to EUR 1.133 million (2023: EUR 1.261 million). An amount of EUR 25 million (2023: EUR 28 million) in revenues was recognized in the reporting period in relation to performance obligations satisfied (or partially satisfied) in prior periods.

The Group's order backlog (remaining performance obligations) by segment and geographical region for the reporting period and the prior-year period is based on the domicile of the subgroups and is as follows (EUR thousand);

2024
Geographical region	North America		Asia Pacific		Europe		Total sales
Segments
Turner	31,930,035	$47.3 \%$	-	-	-	-	31,930,035
CIMIC	-	-	24,008,770	$35.5 \%$	-	-	24,008,770
Engineering and Construction	5,339,651	$7.9 \%$	-	-	6,305,726	$9.3 \%$	11,645,377
Corporate	-	-	-	-	-	-	-
HOCHTIEF Group	37,269,686	$55.2 \%$	24,008,770	$35.5 \%$	6,305,726	$9.3 \%$	67,584,182 ${ }^{1}$

${ }^{1}$ Includes EUR 2,386,659 thousand of HOCHTEF's share from equity-accounted joint ventures and associates

2023
Geographical region	North America		Asia Pacific		Europe		Total sales
Segments
Turner	24,581,263	$44.4 \%$	-	-	-	-	24,581,263
CIMIC	-	-	19,506,255	$35.3 \%$	-	-	19,506,255
Engineering and Construction	5,232,847	$9.5 \%$	-	-	6,005,032	$10.8 \%$	11,237,879
Corporate	-	-	-	-	-	-	-
HOCHTIEF Group	29,814,110	$53.9 \%$	19,506,255	$35.3 \%$	6,005,032	$10.8 \%$	55,325,397 ${ }^{2}$

${ }^{2}$ Includes EUR 6,832,530 thousand of HOCHTEF's share from equity-accounted joint ventures and associates

Contract durations vary between business activities. While revenue is earned over varying contract durations, a larger proportion of the revenue shown above is expected to be earned in the short term.

The forward order book in relation to work done is equivalent to 23 months of work.

3. Other operating income

(EUR thousand)	2024	2023
Deconsolidation gains and gains from change in the method of consolidation	593,502	-
Income from reversal of provisions	27,285	33,581
Income from disposal of intangible assets, property, plant and equipment, and investment properties	13,559	2,150
Foreign exchange gains	12,566	29,784
Income from derecognition of/reversals of impairments on receivables	3,802	1,627
Income from write-ups to non current assets (excluding financial assets)	95	6,342
Sundry other operating income	67,797	48,295
	718,606	121,779

In 2024, the income from deconsolidation gains and gains from change in the method of consolidation includes EUR 592,512 thousand relating to CIMIC. As part of a step acquisition, the gain results from the remeasurement of the $50 \%$ stake in Thiess, which was previously accounted for using the equity method.

Sundry other operating income includes income from insurance claims and other income not accounted for elsewhere.

4. Materials

(EUR thousand)	2024	2023
Raw materials and supplies	$2,428,175$	$2,186,274$
Purchased services	$22,112,768$	$18,731,482$
	24,540,943	20,917,756

5. Personnel costs

(EUR thousand)	2024	2023
Wages and salaries	$5,288,714$	$4,145,465$
Social insurance, pensions, and support	792,329	665,931
	6,081,043	4,811,396

Expenditure on pensions totaled EUR 299,422 thousand (2023: EUR 216,384 thousand). This mostly comprises new entitlements accrued during the year under defined benefit pension plans and payments into defined contribution pension schemes. Payments to state pension insurance funds are included in social insurance.

Employees (average for the year excluding employees in occupational training)

	2024	2023
Germany	3,073	3,002
International	49,833	36,411
	$\mathbf{5 2 , 9 0 6}$	$\mathbf{3 9 , 4 1 3}$

6. Depreciation and amortization

(EUR thousand)	2024	2023
Intangible assets	24,616	18,154
Property, plant and equipment	568,767	301,407
Of which: Right-of-use assets for leases	204,956	135,155
Investment properties	1,032	1,032
	$\mathbf{5 9 4 , 4 1 5}$	$\mathbf{3 2 0 , 5 9 3}$

Depreciation and amortization does not in include any impairment losses in the segments Corporate (2023: EUR 4,658 thousand), Engineering and Construction (2023: EUR 2,736 thousand) and CIMIC (2023: EUR 75 thousand).

7. Other operating expenses

(EUR thousand)	2024	2023
Insurance expenses	585,650	458,896
Rentals and lease rentals	387,690	339,381
Organization and programming	135,940	87,422
Travel expenses	126,015	74,582
Technical and business consulting	111,059	93,018
Currency losses	38,791	37,438
Other taxes	13,713	22,230
Sundry other operating expenses	265,931	171,679
	1,664,789	1,284,646

The insurance expenses mainly relate to project risk management in the Turner Group. Insurance cover from Turner and from other project stakeholders such as suppliers and clients is combined to minimize project execution risks to Turner and its clients. The insurance expenses are counterbalanced by insurance revenue reported in sales.

Sundry other operating expenses in the reporting year mostly comprise order processing, costs of materials for administrative purposes, costs of preparing the annual financial statements, and other expenses not reported elsewhere.

8. Net income from participating interests

Net income from participating interests includes all income and expenses relating to equity-method investments and participating interests.

Net income from participating interests is made up as follows:

(EUR thousand)	2024	2023
Share of profits and losses of equity-method associates and joint ventures	30,148	254,245
Of which: Positive changes in fair value	-	11,251
Of which: Negative changes in fair value	$(8,991)$	$(4,233)$
Result from non-consolidated subsidiaries	$(2,076)$	$(477)$
Of which: Positive changes in fair value	-	-
Of which: Negative changes in fair value	(12)	(575)
Result from other participating interests	(571)	42,822
Of which: Positive changes in fair value	1,488	18,205
Of which: Negative changes in fair value	$(18,079)$	(191)
Income from the disposal of participating interests	73,899	19
Expenses on disposal of participating interests	(5)	(1)
Income from long-term loans to participating interests	8,430	17,232
Net income from other participating interests	83,829	59,595
	113,977	313,840

The share of profits and losses of equity-method associates and joint ventures was EUR 472 thousand (2023: EUR 108,226 thousand) relating to associates and EUR 29,676 thousand (2023: EUR 146,019 thousand) relating to joint ventures.

Net income from other participating interests in the reporting year comprises reversals of impairments in the amount of 1,488 thousand (2023: 18,205 thousand) and impairments on investments in the CIMIC segment in the amount of EUR 17,572 thousand (2023: EUR 191 thousand). In the prior year, an additional EUR 20,573 thousand was reported here relating to dividend income from other participating interests measured at fair value through other comprehensive income.

Income from the disposal of participating interests relates to the Engineering and Construction segment.

9. Net investment and interest income

(EUR thousand)	2024	2023
Interest and similar income	174,520	123,510
Other investment income	32,297	24,335
Investment and interest income	206,817	147,845
Interest and similar expenses	$(422,220)$	$(256,516)$
Interest component of increase in non-current provisions	$(10,603)$	$(9,964)$
Of which: Net interest expense on pension obligations	$(10,555)$	$(9,829)$
Other investment expenses	$(38,728)$	$(33,911)$
Investment and interest expenses	$(471,551)$	$(300,391)$
	$(264,734)$	$(152,546)$

Interest and similar income consists of interest on cash investments, interest-bearing securities, and other longterm loans, plus profit shares and dividends from securities. Interest and similar expenses represent all interest incurred. Net interest income-the balance of interest and similar income and expenses-is at a negative EUR 247,700 thousand (2023: negative EUR 133,006 thousand).

Interest income of EUR 174,520 thousand was recorded in 2024 (2023: EUR 123,510 thousand) including financial instruments measured at fair value. Interest expenses of EUR 385,305 thousand were recorded for financial instruments not carried at fair value through profit or loss (2023: EUR 237,906 thousand).

Net interest expense on pension obligations-an amount of EUR 10,555 thousand (2023: EUR 9,829 thou-sand)—consists of EUR 24,665 thousand (2023: EUR 26,702 thousand) in annual interest on the net present value of long-term pension obligations rolled over into the new year, offset against EUR 14,110 thousand (2023: EUR 16,873 thousand) in interest income on plan assets.

That portion of investment and interest income/expenses which is not included in interest and similar income/expenses or in the interest component of increases in non-current provisions is reported in other investment income and other investment expenses. This category mostly comprises income and expenses relating to sales of securities and to derivatives as well as expenses relating to impairment losses on securities and on other longterm loans.

10. Income taxes

The HOCHTIEF Group's income taxes include income taxes paid or owed in the various countries together with deferred taxes. They break down by origin as follows:

(EUR thousand)	2024	2023
Current income taxes	179,307	127,424
Of which: Current taxes of prior periods	$(14,423)$	9,647
Deferred taxes	$(42,703)$	43,553
Of which: Relating to temporary differences	44,137	$(22,328)$
Of which: Arising from tax loss carryforwards/tax credits	$(82,633)$	43,858
Of which: Arising from writedowns or reversal of past writedowns of deferred tax assets	$(4,207)$	22,023
	136,604	170,977

The amount by which tax expense is reduced by the utilization of tax loss carryforwards and interest carryforwards for which no deferred tax assets have been recognized as well as by unrecognized temporary differences and tax credits is EUR 26,271 thousand (2023: EUR 18,966 thousand).

Deferred and current taxes are measured on the basis of tax rates enacted or substantively enacted in each country as of the reporting date. Applying an average multiplier for German municipal trade tax, the underlying Group tax rate of $31.5 \%$ as in the prior year is derived as follows:

(Percent)	2024	2023
Corporate income tax rate	15.000	15.000
Solidarity surcharge	5.500	5.500
Corporate income tax rate including solidarity surcharge	$\mathbf{1 5 . 8 2 5}$	$\mathbf{1 5 . 8 2 5}$
Average municipal trade tax rate	15.675	15.675
Group tax rate	$\mathbf{3 1 . 5 0 0}$	$\mathbf{3 1 . 5 0 0}$

The effective tax expense of EUR 136,604 thousand (2023: EUR 170.977 thousand) differs by EUR 179.608 thousand (2023: EUR 54.249 thousand) from the expected tax expense of EUR 316.212 thousand (2023: EUR 225.226 thousand). The expected tax expense is determined by applying the Group tax rate to profit before tax.

The following table shows the reconciliation of the expected tax expense to the effective tax expense:

(EUR thousand)	2024	2023
Profit before tax	$1,003,848$	715,003
Theoretical tax expense, at $31.5 \%$	316,212	225,226
Difference between the above and foreign tax rates	$(26,195)$	$(18,513)$
Differences from tax base for German municipal trade tax	3,945	5,127
Changes in valuation allowances on deferred tax assets without recognition of deferred taxes/utilization of interest carryforwards/tax credits	18,922	16,838
Tax effects on:
Tax-exempt income	$(70,814)$	$(39,730)$
Non-tax-allowable expenditure	76,287	51,598
Equity accounting of associates and joint ventures, including impairment of associates and joint ventures	35,627	$(20,838)$
Other	$(217,380)$	$(48,731)$
Effective tax charges	136,604	170,977
Effective rate of tax (percent)	13.6	23.9

As in the prior year, the tax-exempt income mostly relates to income from participating interests.

The tax-free revaluation gain following the acquisition of further shares in Thiess Group Holdings Pty by CIMIC led to a tax effect of EUR 177.7 million, which is reported under "Other".

The item "Other" includes furthermore tax income of EUR 14,423 thousand from prior-period transactions and EUR 7,932 thousand deferred tax income from prior-period transactions and other miscellaneous items. In previous year the "Other" item mainly includes tax expenses in the amount of EUR 9.647 thousand and deferred tax expenses income of EUR 2,957 thousand from prior-period transactions and other miscellaneous items.

Upon CIMIC's entry into the multiple entry consolidated group, the Income Tax Assessment Act 1997 requires the tax values of CIMIC Group's assets to be reset in accordance with the tax cost resetting principles. This calculation is supported by external advisors. The accounting impact of the change in tax group resulted in 2023 in the amount of net EUR 60.9 million tax impact is included in the position "Other".

11. Non-controlling interests

The EUR 91,619 thousand (2023: EUR 21,277 thousand) non-controlling interests in consolidated net profit relate exclusively to profit shares. EUR 69,212 thousand (2023: EUR 2,117 thousand) of this amount is attributable to the CIMIC segment.

Explanatory notes to the Consolidated Balance Sheet

12. Intangible assets

The table below shows the composition of and changes in intangible assets on the Consolidated Balance Sheet for 2024 and 2023:

(EUR thousand)	Concessions, industrial property and similar rights and assets, and licenses in such rights and assets	Goodwill arising on consolidation	Total
Cost of acquisition or production
Jan. 1, 2024	341,657	976,085	1,317,742
Additions or disposals due to changes in the scope of consolidation	369,083	1,963,176	2,332,259
Additions	17,093	-	17,093
Disposals	(19,798)	-	(19,798)
Reclassifications	(45,239)	(52,606)	(97,845)
Currency adjustments	$(2,482)$	$(35,458)$	$(37,940)$
Dec. 31, 2024	660,314	2,851,197	3,511,511
Cumulative depreciation
Jan. 1, 2024	215,714	-	215,714
Additions or disposals due to changes in the scope of consolidation	156	-	156
Additions	24,616	-	24,616
Disposals	(14,989)	-	(14,989)
Reclassifications	(37,376)	-	(37,376)
Currency adjustments	1,609	-	1,609
Impairment reversals	-	-	-
Dec. 31, 2024	189,730	-	189,730
Carrying amounts as of Dec. 31, 2024	470,584	2,851,197	3,321,781
Cost of acquisition or production
Jan. 1, 2023	469,939	992,793	1,462,732
Additions or disposals due to changes in the scope of consolidation	2,957	17,602	20,559
Additions	20,623	-	20,623
Disposals	(137,757)	-	(137,757)
Reclassifications	-	-	-
Currency adjustments	(14,105)	(34,310)	(48,415)
Dec. 31, 2023	341,657	976,085	1,317,742
Cumulative depreciation
Jan. 1, 2023	345,461	-	345,461
Additions or disposals due to changes in the scope of consolidation	-	-	-
Additions	18,154	-	18,154
Disposals	(137,301)	-	(137,301)
Reclassifications	-	-	-
Currency adjustments	(10,600)	-	(10,600)
Impairment reversals	-	-	-
Dec. 31, 2023	215,714	-	215,714
Carrying amounts as of Dec. 31, 2023	125,943	976,085	1,102,028

As in the prior year, intangible assets are not subject to any restrictions. No impairment losses were recorded in the reporting year (2023: EUR 4,658 thousand). A total of EUR 8.171 thousand (2023: EUR 11,416 thousand) was expensed for Group-wide research and development projects by the central innovation management function.

Intangible assets include company names recognized on initial consolidation. Change in company names by segments in 2024 were as follows:

The company names are tested for impairment annually and if there is any indication of impairment. Impairment testing is performed in accordance with IAS 36 as described below for goodwill.

Goodwill recognized on initial consolidation for consolidated companies in continuing operations is allocated to cash-generating units at segment level for the purposes of impairment testing as described in the following. The cash-generating units correspond to the divisions used in segment reporting.

Annual impairment testing of goodwill at segment (division) level is performed at HOCHTIEF as of March 31 in each reporting year. It is ensured as of the balance sheet date December 31 that there are no material changes in the parameters for impairment testing that would result in an impairment. Specifically, interest rate changes and their impact on cost of capital are analyzed alongside the business performance of each division in the reporting year. For the purpose of impairment testing, the recoverable amount of a division is compared with its carrying amount.

The recoverable amount for the Turner, CIMIC, and Engineering and Construction cash-generating units is measured separately for each unit as value in use. This is the present value of the expected future free cash flow from each cash-generating unit. Value in use is determined from an internal Group perspective using the discounted cash flow method. This is applied on the basis of cash flow budgets derived as a rule from the three-year budget for the detailed planning horizon as approved by the Executive Board and current at the time of impairment testing. Budgeting within the detailed planning horizon was based on rising sales and near-constant EBIT margins for the three divisions. The forecasts incorporate past experience and expected future market developments. Cash flows are assumed to remain constant in subsequent years without applying a terminal value growth rate. A sustained cash flow is determined on the basis of free cash flow in the last budget year. Budgeting premises are adjusted in line with current knowledge. Weighted average cost of capital (WACC) is used for cost of capital figures. Value in use is first measured on an after-tax basis by discounting the cash flows with an after-tax WACC determined separately for each cash-generating unit. The pretax discount rate is then found by iteration for the purposes of the Notes disclosures.

The discount rates used in impairment testing for the Turner, CIMIC, and Engineering and Construction cashgenerating units are between $11.67 \%$ and $12.16 \%$ before tax (2023: between $11.50 \%$ and $14.28 \%$ ).

The change in segment structure at the beginning of 2024 (see note 35) and the resulting change in the cashgenerating units have resulted in some cases in a reallocation of goodwill. This reallocation relates to the former Americas division and, within that, the Group companies Turner and Flatiron, which are now included in the new cash-generating units Turner and Engineering and Construction. In accordance with the requirements of IAS 36, the reallocation was carried out using the relative value approach. The relative values were determined from the fair values, and the goodwill of the former Americas division was allocated to the new cash-generating units on this basis. On this calculation basis, EUR 283 million of the former Americas division's goodwill of EUR 323 million was allocated to Turner and EUR 40 million to Flatiron in the course of the 2024 fiscal year. As of December 31, 2024, the goodwill of the Turner and the Engineering and Construction cash-generating units amounted to EUR 283 million and EUR 84 million, respectively, with EUR 53 million of the latter recognized within assets held for sale (see table below).

Due to high valuation reserves -as in the prior year-, comparison of the divisions' recoverable amounts with their carrying amounts did not reveal any impairment of goodwill.

Changes in goodwill by segment in 2024 were as follows:

(EUR thousand)	Jan. 1, 2024	Currency adjustments	Consolidation changes	Reclassifi- cations	Dec. 31, 2024
Turner	168,858	(478)	-	115,000	283,380
CIMIC	619,060	$(45,551)$	1,963,176	-	2,536,685
Engineering and Construction	188,167	10,571	-	$(167,606)$	31,132
HOCHTIEF Group	976,085	$(35,458)$	1,963,176	$(52,606)$	2,851,197
HOCHTIEF Group-recognized within assets held for sale	-	-	-	52,606	52,606
HOCHTIEF Group total	976,085	$(35,458)$	1,963,176	-	2,903,803

The addition at CIMIC under "Consolidation changes" mainly relates to the acquisition of additional shares in Thiess leading to the latter's consolidation (see note 1, Basis of consolidation-Acquisitions).

13. Property, plant and equipment

Cost of acquisition

or production
Jan. 1, 2023
Additions or disposals due to changes in the scope of consolidation
Additions
Disposals
(2,339)
Reclassifications
(188)
Curvency adjustments
Dec. 31, 2023

99,219	872,736	201,575	100,429	794,261	213,946	2,282,166
4,948	(35,181)	-	-	(9,511)	59	(39,685)
1,168	164,924	15,301	14,382	69,566	72,819	338,160
(2,339)	(174,440)	(27,471)	(83)	(93,645)	(88,938)	(386,916)
(188)	16,865	30,381	(44,921)	(576)	12	1,573
(2,051)	(27,066)	(5,739)	(1,008)	(18,718)	(6,162)	(60,744)
100,757	817,838	214,047	68,799	741,377	191,736	2,134,554

Cumulative depreciation

Jan. 1, 2023	56,718	587,187	154,547	-	478,173	136,022	1,412,647
Additions or disposals due to changes in the scope of consolidation	-	29	-	-	(338)	46	(263)
Additions	6,793	139,918	19,541	-	80,976	54,179	301,407
Disposals	(2,339)	(163,854)	(27,112)	-	(86,200)	(87,733)	(367,238)
Reclassifications	(61)	2,511	0	-	61	12	2,523
Currency adjustments	$(1,564)$	$(18,217)$	$(4,006)$	-	$(10,548)$	$(3,636)$	$(37,971)$
Impairment reversals	-	$(6,334)$	$(8)$	-	-	-	$(6,342)$
Dec. 31, 2023	59,547	541,240	142,962	-	462,124	98,890	1,304,763

Carrying amounts as of Dec. 31, 2023
Carrying amounts as of Dec. 31, 2023

41,210	276,598	71,085	68,799	279,253	92,846	829,791

In the reporting year, impairment losses of EUR 0 thousand (2023: EUR 2,736 thousand) were recognized on property, plant and equipment for the segment Engineering and Construction. As in the prior year, property, plant and equipment is not subject to any restrictions.

14. Investment properties

(EUR thousand)
Cost of acquisition or production
Jan. 1, 2024
40,997
40,997
Additions or disposals due to changes in the scope of consolidation
Additions
65
Disposals
Reclassifications
Currency adjustments
Dec. 31, 2024
40,666

Cumulative depreciation

Jan. 1, 2024
9,449
Additions
1,032
Disposals
Reclassifications
Currency adjustments
Dec. 31, 2024
10,481

Carrying amounts as of Dec. 31, 2024

Cost of acquisition or production

Jan. 1, 2023
41,405
Additions or disposals due to changes in the scope of consolidation
Additions
105
Disposals
Reclassifications
Currency adjustments
Dec. 31, 2023
40,997

Cumulative depreciation

Jan. 1, 2023
8,417
Additions
1,032
Disposals
Reclassifications
Currency adjustments
Dec. 31, 2023
9,449

Carrying amounts as of Dec. 31, 2023

As in the prior year, no impairment losses were recorded on investment properties in the reporting year.

The fair values of investment properties was EUR 37,312 thousand as of December 31, 2024 (2023: EUR 40,600 thousand). This is measured as in the past using internationally accepted valuation techniques, such as taking comparable properties as a guide to current market prices or by applying the discounted cash flow method.

Rental income from investment properties in the reporting year totaled EUR 4,709 thousand (2023: EUR 4,698 thousand). The direct operating expenses totaling EUR 110 thousand (2023: EUR 187 thousand) were entirely attributable to rented investment properties.

As in the prior year, investment properties are not subject to any restrictions.

15. Equity-method investments

(EUR thousand)	Dec. 31, 2024	Dec. 31, 2023
Equity-method associates	1,383,628	1,576,865
Equity-method joint ventures	287,665	1,255,242
	1,671,293	2,832,107

Material associate and other associates

HOCHTIEF Aktiengesellschaft holds 20\% minus one share of Abertis HoldCo, S.A. (Abertis), Madrid, Spain. The Group exerts influence on the associate's operating policy and has significant influence within the meaning of IAS 28. HOCHTIEF Aktiengesellschaft's interest in Abertis HoldCo, S.A. is therefore accounted for in the Consolidated Financial Statements as an associate using the equity method.
(EUR thousand)

	Dec. 31, 2024	Dec. 31, 2023
	100.00\%	100.00\%
Non-current assets	40,107,916	44,677,044
Current assets	5,261,753	7,099,985
Assets held for sale	-	-
Non-current liabilities	29,065,504	34,752,133
Current liabilities	5,746,838	4,358,252
Liabilities associated with assets held for sale	-	-
Equity	10,557,327	12,666,644
Non-controlling interest	2,795,582	3,897,747
Equity excluding non-controlling interest	7,761,745	8,768,897
Hybrid bond recognized in Abertis' equity	(1,975,663)	(1,974,204)
Equity attributable to owners of the company	5,786,082	6,794,693
HOCHTIEF share of equity (shareholding 20.00\%)	1,157,216	1,358,939
Other costs	56,501	56,501
Carrying amount of the investment	1,213,717	1,415,440

The owners have decided to increase Abertis' equity by EUR 1.3 billion in 2023. The payments have been made on February 15, 2024 and HOCHTIEF's share amounts to EUR 260 million.

(EUR thousand)	2024	2023
	100.00\%	100.00\%
Sales	6,072,303	5,532,094
Profit or loss from continuing operations	$(164,853)$	802,517
Post-tax profit/(loss) from discontinued operations	13,511	11,276
Profit/(loss) for the year	$(151,342)$	813,793
Non-controlling interest	$(83,302)$	416,500
Profit/(loss) for the year attributable to owners of the company	$(68,040)$	397,293
Income and expenses recognized directly in equity, after tax	$(617,294)$	64,076
Non-controlling interest	$(279,968)$	85,887
Income and expenses recognized directly in equity, after tax, attributable to owners of the company	$(337,326)$	$(21,811)$
Total comprehensive income (100\%)	$(768,636)$	877,869
Non-controlling interest	$(363,270)$	502,387
Total comprehensive income attributable to owners of the company	$(405,366)$	375,482
HOCHTIEF share of total comprehensive income attributable to owners of the company (shareholding 20.00\%)	$(81,073)$	75,096
Annual profit	$(13,608)$	79,459
Other comprehensive income	$(67,465)$	$(4,363)$
Dividends received from associate during the year	118,738	118,738

The table below shows the carrying amounts and the Group's share of items of the statement of comprehensive income in aggregate for individually immaterial equity-method associates:

(EUR thousand)	2024	2023
Carrying amounts	169,911	161,425
Profit before tax	17,615	32,657
Income taxes	$(3,535)$	$(3,890)$
Profit after tax	14,080	28,767
Other comprehensive income	3,493	$(16)$
Total comprehensive income	17,573	28,751

Investments in associates, as in the prior year, are not subject to any restrictions.

Joint ventures

The table below shows the carrying amounts and the Group's share of items of the statement of comprehensive income in aggregate for individually immaterial equity-method joint ventures:

(EUR thousand)	2024	2023
Carrying amounts	287,665	1,255,242
Profit before tax	38,273	170,035
Income taxes	$(8,597)$	$(24,016)$
Profit after tax	29,676	146,019
Other comprehensive income	$(16,724)$	$(32,700)$
Total comprehensive income	12,952	113,319

Due to the full consolidation of Thiess from April 23, 2024, the 2024 financial year only includes the amounts of Thiess as a joint venture for the period from January 1, 2024 to April 22, 2024. Accordingly, the previous year's figures in the table include both the amounts of the immaterial joint ventures and the numbers of Thiess. Thiess was reported separately as a material joint venture in the 2023 consolidated financial statements.

Profit from equity-method joint ventures contained EUR 8,991 thousand (2023: EUR 4,233 thousand) in impairment losses. In the prior year, reversals of impairment losses in the amount of EUR 11,251 thousand were also recognized there.

Investments in joint ventures are pledged within the framework of project financing in the amount of EUR 64,806 thousand (2023: EUR 103,721 thousand).

16. Other financial assets

(EUR thousand)	Dec. 31, 2024	Dec. 31, 2023
Non-consolidated subsidiaries	623	868
Other participating interests	86,762	189,628
Non-current marketable securities	49,867	28,867
	$\mathbf{1 3 7 , 2 5 2}$	$\mathbf{2 1 9 , 3 6 3}$

Impairment losses of EUR 12 thousand (2023: EUR 575 thousand) were recognized on non-consolidated subsidiaries in the reporting year. In addition, there were impairments of EUR 18,079 thousand in 2024 (2023: 191 thousand) and impairment reversals of EUR 1,488 thousand (2023: EUR 18,205 thousand) in other participating interests. As in the prior year, sundry other assets are not subject to any restrictions in the reporting year.

The full consolidation of Thiess in 2024 resulted in the derecognition of the Class C preference shares held in Thiess. In the previous year, these shares with a carrying amount of EUR 131.7 million were recognized in other participating interests as equity instruments in accordance with IFRS 9.

17. Financial receivables

(EUR thousand)	Dec. 31, 2024		Dec. 31, 2023
	Noncurrent	Current	Noncurrent	Current
Loans to non-consolidated subsidiaries and to participating interests	59,736	4,039	112,576	75,389
Financial receivables from non-consolidated subsidiaries	-	206	-	339
Financial receivables from participating interests	779	8,002	-	46,396
Interest accruals	-	12,287	-	6,231
Other financial receivables	73,816	29,367	1,871	18,285
	134,331	53,901	114,447	148,640

Loans to and financial receivables from equity-accounted companies total EUR 70,541 thousand (2023: EUR 234,288 thousand).

18. Trade receivables and other receivables

(EUR thousand)	Dec. 31, 2024	Dec. 31, 2023
Trade receivables	4,337,564	3,939,625
Contract assets	2,538,319	2,093,772
Other receivables and other assets	694,056	1,044,880
	7,569,939	7,078,277

Trade receivables include receivables from equity-accounted companies in the amount of EUR 7,224 thousand (2023: EUR 7,905 thousand).

Performance not yet billed is accounted for in contract assets if progress payments do not exceed cumulative performance (contract costs and contract earnings). Where the net amount after deduction of progress payments is negative, the difference is presented under contract liabilities.

The change in the receivables balances is mainly due to performance completed and payments received in the operating business and to reclassifications to trade receivables. Contract assets include contract obtaining/fulfillment costs of EUR 92,933 thousand (2023: EUR 81,786 thousand).

Other receivables and other assets are made up as follows:

	Dec. 31, 2024		Dec. 31, 2023
(EUR thousand)	Non-current	Current	Non-current	Current
Prepaid expenses	22,210	122,596	32,765	170,103
Claims for damages and claims under guarantee	-	133,312	-	147,539
Insurance contract assets	16,290	72,629	10,026	74,504
Tax receivables (excluding income taxes)	-	59,432	-	28,398
Derivative receivables	36,233	11,646	23,632	6,483
Pension fund credit balances	9,596	-	10,555	-
Sundry other assets	114,531	95,581	109,667	431,208
	196,860	495,196	186,645	850,235

Prepaid expenses consist of insurance premiums and other prepayments.
Claims for damages and claims under guarantee include EUR 131,734 thousand (2023: EUR 145,696 thousand), mainly in reimbursement claims under insurance policies held by the Turner Group.

As in the prior year, sundry other assets are not subject to any restrictions in the reporting year.

19. Income tax assets

EUR 204,008 thousand (2023: EUR 159,566 thousand) in income tax assets comprise amounts receivable from domestic and foreign tax authorities. These consist of EUR 57,885 thousand (2023: EUR 20 thousand) classified as non-current assets and EUR 146,123 thousand (2023: EUR 159,546 thousand) classified as current assets.

20. Deferred taxes

Deferred tax assets and liabilities break down as follows:

	Dec. 31, 2024		Dec. 31, 2023		2024	2023
(EUR thousand)	Deferred tax assets	Deferred tax liabilities	Deferred tax assets	Deferred tax liabilities	changes recognized in profit and loss
Non-current assets
Intangible assets	48,657	13,015	46,508	20,072	(11,826)	$(16,532)$
Property, plant and equipment	68,708	58,632	32,143	65,646	23,772	$(10,775)$
Financial assets	9,149	17,058	8,817	9,845	6,920	$(41,113)$
Sundry non-current assets	6,187	20,784	8,275	26,338	(701)	4,878
Current assets
Inventories	7,962	4,917	13,759	1,601	8,872	$(3,411)$
Trade receivables	2,116	56,914	1,331	57,493	$(1,171)$	949
Sundry current assets	97,792	57,311	71,194	21,919	23,242	34,226
Non-current liabilities
Pension provisions	31,728	23,285	33,148	15,515	7,315	$(20,757)$
Other provisions	10,365	76,391	4,992	68,627	5,411	5,856
Sundry non-current liabilities	90,713	3,173	87,328	13,236	$(20,509)$	$(11,694)$
Current liabilities
Other provisions	104,202	33	82,505	3,093	$(7,077)$	$(10,428)$
Trade payables	6,770	89,102	43,384	102,202	19,979	36,659
Sundry current liabilities	87,754	110,693	53,780	890	$(10,089)$	$(3,532)$
	572,103	531,308	487,164	406,477	44,138	$(35,674)$
Losses carried forward	256,472	-	182,693	-	$(86,841)$	79,227
Interest expense carried forward	-	-	-	-	-	-
Gross amount	828,575	531,308	669,857	406,477	(42,703)	43,553
Offsetting item	316,914	316,914	324,180	324,180	-	-
Reported amount	511,661	214,394	345,677	82,297	-	-

Deferred tax assets are normally recognized for tax-deductible temporary differences if it is probable that taxable profit will be available against which the deductible temporary differences can be utilized.

Deferred tax assets and deferred tax liabilities are offset within each company or tax group. The EUR 828,575 thousand (2023: EUR 669,857 thousand) gross amount of deferred tax assets includes the following tax refund entitlements arising from the expected future use of tax loss carryforwards and tax credits:
(EUR thousand)
244,532
170,753

Corporate income tax (or comparable foreign income tax)

German municipal trade tax

Deferred tax assets are only recognized for tax loss carryforwards in so far as it is sufficiently certain that the tax loss carryforwards can be utilized. To the extent that no sufficient taxable temporary differences are available, expected taxable income for the purpose of measuring deferred taxes on deductible temporary differences and/or tax loss carryforwards is derived from budget figures, taking account of restrictions due to rules to be observed with regard to minimum taxation.

Tax loss carryforwards in respect of German and foreign corporate income tax and municipal trade tax for which no deferred tax assets have been recognized amount to EUR 2,084,325 thousand (2023: EUR 1,950,244 thousand) in respect of corporate income tax and EUR 1,437,893 thousand (2023: EUR 1,434,598 thousand) in respect of municipal trade tax.

Deferred tax assets have not been recognized for EUR 139,331 thousand (2023: EUR 99,277 thousand) in tax loss carryforwards that are subject to a time limit. EUR 58,579 thousand (2023: EUR 17,998 thousand) has a time limit of three years. EUR 77,706 thousand (2023: EUR 44,877 thousand) expire within seven years and EUR 3,046 thousand within 17 years (2023: EUR 36,402 thousand).

The amount of deductible temporary differences for which no deferred tax asset was recognized in the balance sheet is EUR 52,531 thousand (2023: EUR 51,784 thousand).

German and foreign Group companies that generated losses in 2024 or prior years have EUR 49,292 thousand (2023: EUR 30,317 thousand) in unimpaired deferred tax assets relating to temporary differences or tax loss carryforwards. The recognition of the deferred tax asset in respect of tax losses is supported by the Group's forecast future taxable profits, with reference to current levels of order backlog, pipeline and past performance.

No deferred tax assets have been recognized in relation to interest expense carryforwards in the amount of EUR 424,393 thousand (2023: EUR 270,991 thousand). The change in the interest expense carryforward figures relates to adjustments made on the basis of tax audits and ongoing changes.

No deferred tax liabilities have been recognized on temporary differences in the amount of EUR 6,524 thousand (2023: EUR 23,884 thousand) in connection with investments in subsidiaries because the Group is able to control the timing of the reversal of the temporary differences and it is not probable that they will reverse in the foreseeable future.

Deferred taxes recognized directly in equity were as follows in 2024:

(EUR thousand)	2024	2023
Changes in deferred taxes recognized directly in equity	$(8,816)$	$(9,848)$
Of which: Consolidation changes / other	$(1,321)$	$(506)$
Of which: Currency translation differences	$(6,463)$	$(12,121)$
Of which: Deferred taxes recognized in other comprehensive income for the measurement of primary and derivative financial instruments not affecting profit and loss	1,173	$(1,991)$
Of which: Deferred taxes recognized in other comprehensive income for remeasurements of defined benefit plans	$(2,205)$	4,770

21. Inventories

(EUR thousand)	Dec. 31, 2024	Dec. 31, 2023
Raw materials and supplies	353,179	170,138
Work in progress	205,438	176,458
Prepayments	10,780	12,760
Finished goods	500	10,932
	$\mathbf{5 6 9 , 8 9 7}$	$\mathbf{3 7 0 , 2 8 8}$

Borrowing costs of EUR 9,494 thousand were capitalized under work in progress in accordance with IAS 23 (2023: EUR 14,904 thousand). The borrowing costs were determined on the basis of interest rates between $2.16 \%$ and $5.81 \%$ (2023: between $2.38 \%$ and $6.87 \%$ ).

As in the prior year, inventories are not subject to any restrictions.

22. Marketable securities

Marketable securities totaling EUR 810,947 thousand (2023: EUR 626,915 thousand) mainly consist of fixed-income securities with maturities of more than three months on acquisition where there is no intention to hold the securities to maturity. They also include shares measured at fair value through other comprehensive income, and securities held in special and investment funds. Shares are not acquired for the purpose of selling in the short term.

Marketable securities are pledged as security for employee benefit entitlements under semi-retirement programs in the amount of EUR 3,030 thousand (2023: EUR 3,047 thousand).

Outside of externally managed investments, direct investment activities are exclusively restricted to the purchase of bonds from top-class issuers with broad diversification to ensure that concentration risks relative to specific issuers are strictly avoided.

23. Cash and cash equivalents

Cash and cash equivalents total EUR 5,720,598 thousand (2023: EUR 5,149,536 thousand) and comprise cash in hand, cash at banks, and marketable securities with maturities at the time of acquisition of no more than three months. These are subject to an insignificant risk of changes in value. Cash and cash equivalents in the amount of EUR 279,026 thousand (2023: EUR 350,612 thousand) are restricted. They are subject to certain operational restrictions of EUR 658 thousand (2023: EUR 173,321 thousand) as well as cash in relation to the sale of receivables of EUR 278,368 thousand (2023: EUR 177,291 thousand).

24. Equity

The Consolidated Statement of Changes in Equity is part of the Consolidated Financial Statements.
The Company's capital stock is divided into 77,711,300 no-par-value bearer shares and amounts to EUR 198,940,928.00. Each share accounts for EUR 2.56 of capital stock. As of December 31, 2024, HOCHTIEF Aktiengesellschaft held a total of 2,480,121 (2023: 2,497,884) shares of treasury stock as defined in Section 160 (1) 2 of the German Stock Corporations Act (AktG). These shares were purchased from October 7, 2014 onward for the purposes provided for in the resolutions of the Annual General Meeting of May 7, 2014, May 6, 2015, and April 28, 2020, and for all other purposes permitted under stock corporation law (AktG). The holdings of treasury stock represent EUR 6,349,109.76 (3.19\%) of the Company's capital stock, compared with EUR 6,394,583.04 and $3.21 \%$ in the prior year.

In April 2024, 17,763 shares of treasury stock were transferred to members of the Company's Executive Board at a price of EUR 98.90 per share on condition that the shares be held for at least two and at least three years after transfer. The transfer settled the transferees' variable compensation entitlements. The shares represent EUR 45,473.28 (0.0229\%) of the Company's capital stock.

The capital reserve comprises EUR 2,062,398 thousand constituting the premium on shares issued by HOCHTIEF Aktiengesellschaft-as in the prior year-together with EUR 5,032 thousand (2023: EUR 4,501 thousand) for the book gain on the sale of treasury stock, and the capital stock represented by the shares canceled in 2016 (EUR 12,824 thousand) and 2014 (EUR 19,688 thousand). The change in 2024 in the amount of EUR 531 thousand relates to the book gain on the transfer of 17,763 treasury shares to members of the Company's Executive Board.

Distributable profit is identical for HOCHTIEF Aktiengesellschaft and the HOCHTIEF Group. A dividend of EUR 330,939 thousand was paid out in the reporting year (2023: EUR 300,755 thousand).

The Executive Board is unaware of any restrictions on voting rights or on transfers of shares.
There are no shares with special control rights. The Executive Board is not aware of any employee shares where the control rights are not exercised directly by the employees.

Statutory rules on the appointment and replacement of Executive Board members are contained in Sections 84 and 85 and statutory rules on the amendment of the Articles of Association in Sections 179 and 133 of the German Stock Corporations Act (AktG). Under Section 7 (1) of the Company's Articles of Association, the Executive Board comprises at least two individuals. Section 23 (1) of the Articles of Association provides that resolutions of the Annual General Meeting require a simple majority of votes cast unless there is a statutory requirement stipulating a different majority. In instances where the Act requires a majority of the capital stock represented at the time of the resolution in addition to a majority of votes cast, Section 23 (3) of the Articles of Association provides that a simple majority will suffice unless there is a mandatory requirement stipulating a different majority.

Pursuant to the resolution of the Annual General Meeting of April 27, 2022 and to Section 4 (5) of the Articles of Association inserted in accordance with that resolution, the Executive Board is authorized, subject to Supervisory Board approval, to increase the capital stock by issuing new no-par-value bearer shares for cash and/or noncash consideration in one or more issues up to a total of EUR 65,752 thousand by or before April 26, 2027 (Authorized Capital I). Detailed provisions are contained in the stated section of the Articles.

Pursuant to the resolution of the Annual General Meeting of April 26, 2023, the Executive Board is authorized, subject to Supervisory Board approval, to increase the capital stock by issuing new no-par-value bearer shares for cash and/or non-cash consideration in one or more issues up to a total of EUR 33,718 thousand by or before April 25, 2028 (Authorized Capital II). Detailed provisions are contained in the stated section of the Articles.

Pursuant to the resolution of the Annual General Meeting of April 27, 2022 and thus to the revised Section 4 (4) of the Articles of Association, the Company's capital stock has been conditionally increased by up to EUR 51,200 thousand divided into up to 20 million no-par-value bearer shares (conditional capital). The detailed stipulations are contained in the aforementioned section of the Articles of Association and the aforementioned resolution. Under that resolution, the Executive Board is authorized, subject to the approval of the Supervisory Board, to issue on one or more occasions in the period up to April 26, 2027 registered or bearer warrant-linked and/or convertible bonds, profit participation rights or participating bonds, or any combination of such instruments (collectively "bonds"), in an aggregate principal amount of up to EUR 2,000,000,000.00 with or without maturity restrictions and to grant or issue option rights or obligations to holders or creditors of warrant-linked bonds or of participatory notes with warrants or of warrant-linked participating bonds or to grant or issue conversion rights or obligations to holders or creditors of convertible bonds or convertible participatory notes or convertible participating bonds for up to 20 million no-par-value bearer shares in HOCHTIEF Aktiengesellschaft with an aggregate proportionate interest in the capital stock of up to EUR 51,200,000.00, as stipulated in greater detail in the terms and conditions of the bonds.

Authorization to repurchase shares:

The Company is authorized by resolution of the Annual General Meeting of April 27, 2022 to repurchase its own shares in accordance with Section 71 (1) 8 of the German Stock Corporations Act (AktG). This authorization expires on April 26, 2027. It is limited to 10\% of the capital stock at the time of the Annual General Meeting resolution or at the time of exercising the authorization, whichever figure is smaller. The authorization can be exercised directly by the Company or by a company in its control or majority ownership or by third parties engaged by the Company or engaged by a company in its control or majority ownership and allows the share repurchase to be executed in one or more installments covering the entire amount authorized or any fraction. The repurchase may be effected through the stock exchange or by public offer to all shareholders, or by public invitation to all shareholders to tender shares for sale, or by issuing shareholders with rights to sell shares. The conditions governing the repurchase are set forth in detail in the resolution.

By resolution of the Annual General Meeting of April 27, 2022, the Executive Board is authorized, subject to Supervisory Board approval, in the event of a sale of shares of treasury stock effected by way of an offer to all shareholders, to issue subscription rights to the shares to holders of warrant-linked and/or convertible bonds issued by the Company or by any subordinate Group company. The Executive Board is also authorized, subject to Supervisory Board approval, to sell shares of treasury stock other than through the stock exchange and other

than by way of an offer to all shareholders, provided that the shares are sold for cash at a price not substantially below the current stock market price for Company shares of the same class at the time of sale.

The HOCHTIEF Aktiengesellschaft Executive Board is further authorized, subject to Supervisory Board approval and the conditions set out in the following, to offer and transfer shares of treasury stock to third parties other than through the stock exchange and other than by way of an offer to all shareholders. Such transactions may take place in the course of acquisitions of business enterprises in whole or part or of other assets and in the course of mergers. They are also permitted for the purpose of obtaining a listing for the Company's shares on foreign stock exchanges where it is not yet listed. The shares may furthermore be offered for purchase by employees or former employees of the Company or its affiliates. Holders of bonds which the Company or a Group company subordinate to it issues or has issued may also be issued with the shares upon exercising the warrant and/or conversion rights and/or obligations attached to the bonds.

The shares may also, on condition that they be held for at least two years after transfer, be transferred to (current or past) members of the Executive Board of the Company and to (current or past) members of the executive boards and general management of companies under its control within the meaning of Section 17 of the German Stock Corporations Act (AktG), and to current or past employees of the Company or of a company under its control within the meaning of Section 17 AktG. Such transfers are only permitted for the purpose of settling the transferees' variable compensation entitlements. Further conditions of transfer are detailed in the resolution. Where shares are issued to members of the Executive Board of the Company, the decision to issue the shares is taken solely by the Supervisory Board.

Shareholders' statutory subscription rights to such shares are exempt pursuant to Sections 71 (1) 8 and 186 (3) and (4) of the German Stock Corporations Act (AktG) to the extent that the shares are used in exercise of the authorizations set out above.

The Executive Board is also authorized, subject to the Supervisory Board approval, to cancel shares of treasury stock without a further resolution of the Annual General Meeting being required for the cancellation itself or its execution.

The conditions governing awards of subscription rights and the sale, transfer, and cancellation of treasury stock are set forth in detail in the Annual General Meeting resolution.

By a further resolution of the Annual General Meeting of April 27, 2022, the Company is authorized to acquire shares of treasury stock in accordance with Section 71 (1) 8 AktG using equity derivatives as well as to exclude shareholders' rights to sell shares and subscription rights. This is not intended to increase the volume of shares that may be purchased; instead, it merely opens the way for other alternatives to purchase shares of treasury stock within and against the upper limit set in the aforementioned authorization. The Executive Board has been authorized to acquire options which, when exercised, entitle the Company to acquire shares of the Company (call options). Furthermore, the Executive Board has been authorized to sell options which, when exercised by their holder, require the Company to acquire shares of the Company (put options). Moreover, the shares can be acquired using a combination of call and put options or forward purchase agreements. Additional details of the conditions for the use of equity derivatives in the acquisition of treasury stock and for the exclusion of shareholders' rights to sell and subscription rights are set out in the Annual General Meeting resolution.

Non-controlling interests total EUR 123,730 thousand (2023: EUR 30,787 thousand) and represent that portion of the equity of consolidated Group companies which is attributable to third parties.

Accumulated other comprehensive income is part of retained earnings. It includes amounts recognized in equity for changes in the fair value of derivative and non-derivative financial instruments and exchange differences from translation of foreign entity financial statements. Accumulated other comprehensive income also includes the Group's share of changes recognized directly in the other comprehensive income of equity-method associates and joint ventures, plus the portion of other comprehensive income from the remeasurement of defined benefit plans that will not subsequently be reclassified to profit or loss.

The changes in other comprehensive income are presented on a year-on-year basis in the following table:

(EUR thousand)	2024	2023
Currency translation differences
Changes in other comprehensive income for the period	42,450	$(28,264)$
Amounts reclassified to profit or loss	(989)	-
	41,461	$(28,264)$
Changes in fair value of financial instruments - primary
Changes in other comprehensive income for the period	97,124	$(19,720)$
Amounts reclassified to profit or loss	6,916	7,046
	104,040	$(12,674)$
Changes in fair value of financial instruments - derivative
Changes in other comprehensive income for the period	$(15,173)$	$(10,613)$
Amounts reclassified to profit or loss	-	-
	$(15,173)$	$(10,613)$
Share of other comprehensive income of equity-method associates and joint ventures
Changes in other comprehensive income for the period	$(72,791)$	$(39,214)$
Amounts reclassified to profit or loss	$(7,905)$	2,136
	$(80,696)$	$(37,078)$
Remeasurement of defined benefit plans	$(3,023)$	$(30,979)$
Other comprehensive income after tax	46,609	$(119,608)$

The income tax effects relating to changes in other comprehensive income are distributed as follows:

(EUR thousand)	Before tax	2024 Taxes	After tax	Before tax	2023 Taxes	After tax
Currency translation differences	41,461	-	41,461	$(28,264)$	-	$(28,264)$
Changes in fair value of financial instruments - primary	107,147	$(3,107)$	104,040	$(5,817)$	$(6,857)$	$(12,674)$
Changes in fair value of financial instruments - derivative	$(19,453)$	4,280	$(15,173)$	$(15,479)$	4,866	$(10,613)$
Share of other comprehensive income of equitymethod associates and joint ventures	$(80,696)$	-	$(80,696)$	$(37,078)$	-	$(37,078)$
Remeasurement of defined benefit plans	$(818)$	$(2,205)$	$(3,023)$	$(35,749)$	4,770	$(30,979)$
Other comprehensive income	47,641	$(1,032)$	46,609	$(122,387)$	2,779	$(119,608)$

25. Share-based payment

The following share-based payment plans were in force for managerial staff of HOCHTIEF Aktiengesellschaft and its affiliates in 2024:

Long-term Incentive Plan 2019

The Long-term Incentive Plan 2019 (LTIP 2019) was launched by resolution of the Supervisory Board in 2019 and is open to Executive Board members and selected managerial employees. The plan is based on performance stock awards.

The conditions stipulated that for each performance stock award (PSA) exercised within a two-year exercise period following a three-year waiting period, entitled individuals received from the issuing entity a payment entitlement equal to the closing price of HOCHTIEF stock on the last stock market trading day before the exercise date, plus a performance bonus. The size of the performance bonus depended for each company on the relevant cash performance indicator in the last complete year before the exercise date. For the members of the Executive Board and managerial employees of HOCHTIEF Aktiengesellschaft, the performance bonus depended on adjusted free cash flow.

The gain was limited to EUR 477.12 per PSA.
The plan was exercised in full in 2024.

Long-term Incentive Plan 2021

The Long-term Incentive Plan 2021 (LTIP 2021) was launched by resolution of the Supervisory Board in 2021 and is open to Executive Board members and selected managerial employees. The plan is based on performance stock awards.

The conditions stipulate that for each performance stock award (PSA) exercised within a two-year exercise period following a three-year waiting period, entitled individuals receive from the issuing entity a payment entitlement equal to the closing price of HOCHTIEF stock on the last stock market trading day before the exercise date, plus a performance bonus. The size of the performance bonus depends for each company on the relevant cash performance indicator in the last three years before the exercise date. For the members of the Executive Board and managerial employees of HOCHTIEF Aktiengesellschaft, the performance bonus depends on adjusted free cash flow in the last complete year before the exercise date.

The gain is limited to EUR 292.95 per PSA.

Long-term Incentive Plan 2022

The Long-term Incentive Plan 2022 (LTIP 2022) was launched by resolution of the Supervisory Board in 2022 and is open to Executive Board members. The plan is based on performance stock awards.

The conditions stipulate that for each performance stock award (PSA) exercised within a two-year exercise period following a three-year waiting period, entitled individuals receive a payment entitlement equal to the closing price of HOCHTIEF stock on the last stock market trading day before the exercise date, plus a performance bonus. The size of the performance bonus depends on the adjusted free cash flow of the last complete year before the exercise date.

The gain is limited to EUR 261.03 per PSA.

Long-term Incentive Plan 2023

The Long-term Incentive Plan 2023 (LTIP 2023) was launched by resolution of the Supervisory Board in 2023 and is open to Executive Board members. The plan is based on performance stock awards.

The conditions stipulate that for each performance stock award (PSA) exercised within a two-year exercise period following a three-year waiting period, entitled individuals receive a payment entitlement equal to the closing

price of HOCHTIEF stock on the last stock market trading day before the exercise date, plus a performance bonus. The size of the performance bonus depends on the adjusted free cash flow of the last complete year before the exercise date.

The gain is limited to EUR 262.08 per PSA.

Long-Term-Incentive-Plan 2024

The Long-term Incentive Plan 2024 (LTIP 2024) was launched by resolution of the Supervisory Board in 2024 and is open to Executive Board members. The plan is based on performance stock awards.

The conditions stipulate that for each performance stock award (PSA) exercised within a two-year exercise period following a three-year waiting period, entitled individuals receive a payment entitlement equal to the closing price of HOCHTIEF stock on the last stock market trading day before the exercise date, plus a performance bonus. The size of the performance bonus depends on the adjusted free cash flow of the last complete year before the exercise date.

The gain is limited to EUR 463.32 per PSA.

The conditions of all plans stipulate that on exercise-and on the fulfillment of all other requisite criteriaHOCHTIEF Aktiengesellschaft normally has the option of delivering HOCHTIEF shares instead of paying out the gain in cash. Where the entitled individuals are not employees of HOCHTIEF Aktiengesellschaft, the expense incurred on exercise is borne by the affiliated company concerned.

The quantities granted, expired, and exercised under the plans so far are as follows:

	Originally granted	Outstanding at Dec. 31, 2023	Granted in 2024	Expired in 2024	Exercised/ setted in 2024	Outstanding at Dec. 31, 2024
LTIP 2019 - performance stock awards	21,485	800	-	-	800	0
LTIP 2021 - performance stock awards	12,857	12,857	-	300	11,757	800
LTIP 2022 - performance stock awards	3,133	3,133	-	-	-	3,133
LTIP 2023 - performance stock awards	34,364	34,364	-	-	-	34,364
LTIP 2024 - performance stock awards	-	-	19,312	-	-	19,312

Provisions recognized for the stated share-based payment arrangements totaled EUR 5,464 thousand as of the balance sheet date (2023: EUR 3,363 thousand). The total expense recognized for the stated arrangements in 2024 was EUR 5,610 thousand (2023: EUR 4,851 thousand). The intrinsic value of plans exercisable at the end of the reporting period was EUR 78 thousand (2023: EUR 79 thousand).

ACS Long-term Incentive Plan 2

As part of the launch of the Long-Term Incentive Plan 2023-2028 by the main shareholder ACS, stock options were granted by ACS to some Executive Board members of HOCHTIEF Aktiengesellschaft and certain executives in the HOCHTIEF Group in 2023. As the parent company, ACS owes the share-based payment to employees of the HOCHTIEF Group. HOCHTIEF does not have the obligation to settle the share-based remuneration. In accordance with IFRS 2, HOCHTIEF as the recipient of the work performance treats this as an equity-settled sharebased payment. The following terms and conditions apply:
(a) The maximum number of granted options is $3,390,000$.
(b) The beneficiaries are 99 executives with options from 15,000 to 240,000.
(c) The strike price will be EUR 31.55 per share.

(d) The options were granted to the executives on July 1, 2023 and cannot be exercised for three years from the grant date, ending the exercise date on June 30, 2028.
(e) In order to execute the options granted to each beneficiary, additional to the service condition required until the exercise date, the operational, financial and sustainability performance of the ACS Group in 2023-2025 must be compliant with the ACS Group's objectives. The criteria chosen for meeting these objectives are:

• With a weighting of $40 \%$, the Total Shareholder Return ("TSR") in the period of 2023-2025 must be higher than the median of main companies in the sector with comparable stock market capitalization and international status to ACS. In this case, the executive receives $100 \%$ of the awards assigned in this section. If the TSR in this period is less than the 25th percentile of the comparable sample, the executive receives no awards for this section. If the TSR is between the 25th and 50th percentile of the sample, the executive will receive a proportional number of rewards to result ( $0 \%$ for the 25 th percentile and $100 \%$ for the 50th percentile).
• With a weighting of $40 \%$, the average Return on Equity ("ROE") of the ACS Group in 2023-2025, measured as the percentage of net profit over equity for the previous year (Net Profit / Equity), must be more than $10 \%$. In the case of a lower result, the executive will be granted no awards.
• With a weighting of $20 \%$, the average percentile obtained in the Dow Jones Sustainability Index ("DJSI") in 2023-2025 must be greater than $85 \%$. In this case, the executive receives $100 \%$ of the awards assigned in this section. If the average DJSI percentile in the measurement period is less than the 60th percentile, the executive receives no awards in this section. If the result is between the 60th and 85th percentile, the executive will receive a proportional number of rewards to result ( $0 \%$ for the 60th percentile and $100 \%$ for the 85 th percentile).

The share-based remuneration is recognized as personnel expenses in the consolidated income statement, with a balancing entry in equity (EUR 1.5 million as of December 31, 2024; 2023: EUR 0.7 million).

26. Provisions for pensions and similar obligations

Defined benefit plans

Under defined benefit plans, the Company's obligation is to provide agreed benefits to current and former employees. The main pension obligations in Germany consist of direct commitments under the current 2000+ pension plan and deferred compensation plans. The 2000+ plan in force since January 1, 2000 takes the form of a modular defined contribution plan. The size of the annual pension component depends on employee income and age (resulting in an annuity conversion factor) and a general pension contribution reviewed by HOCHTIEF Aktiengesellschaft every three years and adjusted as necessary. The future pension amount is the sum total of the pension components earned each year. In isolated instances, length-of-service and final salary pension arrangements are in existence for executive staff, although except at Executive Board level such arrangements have no longer been offered since 1995. Benefits comprise an old-age pension, an invalidity pension, and a surviving dependents' pension, and in almost all cases are granted as a life-long annuity.

Up to December 31, 2013, employees in Germany additionally had the option of deferred compensation in a company pension plan. The deferred compensation was invested in selected investment funds. The pension amount is based on the present value of acquired fund units at retirement, subject to a minimum of the deferred compensation amount plus an increment that is guaranteed by HOCHTIEF and ranges from $3.50 \%$ down to $1.75 \%$ p.a. There is a choice at retirement between a lump-sum payment and an annuity for five or six years.

Outside of Germany, there are defined benefit pension plans at HOCHTIEF (UK) in the United Kingdom. HOCHTIEF (UK) has a length-of-service, final salary pension plan. For each year of service, 1/75th of the eligible final salary is granted as a monthly pension. Benefits comprise an old-age pension, an invalidity pension, and a surviving dependents' pension. The commitments at Turner comprise post-employment benefits in the form of medical care for retirees.

Defined benefit obligations in the HOCHTIEF Group are made up as follows:

	Dec. 31, 2024
(EUR thousand)	Germany	USA	UK
Active members	69,834	-	6,408
Final salary	6,806	-	6,408
Not final salary	63,028	-	-
Vested benefits	95,512	-	12,321
Retirees	410,036	-	18,480
Similar obligations	73	59,340	-
Total	575,455	59,340	37,209
Duration in years (weighted)	11.6	11.6	12.0

(EUR thousand)	Germany	USA	UK
Active members	72,525	-	6,334
Final salary	9,686	-	6,334
Not final salary	62,839	-	-
Vested benefits	95,596	-	12,738
Retirees	422,602	-	19,367
Similar obligations	75	46,996	-
Total	590,798	46,996	38,439
Duration in years (weighted)	11.8	11.5	13.0

Plan assets

Germany

There are no statutory or regulatory minimum funding requirements for pension plans in Germany. Domestic pension obligations are fully funded. The funded plans take the form of a contractual trust arrangement (CTA). The transferred assets are administered by an external trustee and serve exclusively to fund domestic pension obligations. The transferred cash is invested in the capital market in accordance with investment principles set out in the trust agreement and the investment guidelines. Investment decisions are not made by the trustee but by an investment committee.

The investment guidelines and decisions are based on the findings of an asset liability matching (ALM) study compiled by outside specialists at regular intervals of three to five years. This uses Monte Carlo simulation to model the development of the pension liabilities and other key economic factors over a very long forward horizon and in numerous combinations. Based on the ALM study, a range of criteria are then applied to determine the optimum asset allocation in order to ensure that pension liabilities can be met in the long term.

To assure an optimum conservative risk structure, we have also established risk overlay management using the services of an external overlay manager who is given a fixed annual risk budget and works fully autonomously in a clearly structured risk overlay management process. HOCHTIEF aims to ensure full funding of pension obligations and to fund new vested benefits on the basis of current service cost annually or at least on a timely basis. The companies pay in additional amounts from time to time in the event of any shortfall. Pension commitments in Germany in excess of the contribution assessment ceiling applied in the statutory pension insurance scheme are additionally covered using pension liability insurance. Pension liabilities from deferred employee compensation offered up to December 31, 2013 were funded by the purchase of retail fund units. Funding of the obligations served by HOCHTIEF Pension Trust e. V. as of December 31, 2024 is about 54\% (2023: 53\%); the figure for Germany as a whole is about 61\% (2023: 61\%).

UK

Funding of plan assets at HOCHTIEF (UK) is likewise on a trust basis. Statutory minimum funding requirements apply. If funding is insufficient to make up a funding shortfall, an additional restructuring plan is drawn up. Plan funding is reviewed at least once every three years. Funding of pension obligations at HOCHTIEF (UK) is about $84 \%(2023: 81 \%)$.

Defined benefit obligations are covered by plan assets as follows:

Coverage of defined benefit obligations by plan assets

(EUR thousand)	Dec. 31, 2024		Dec. 31, 2023
	Defined benefit obligations	Plan assets	Defined benefit obligations	Plan assets
Uncovered by plan assets	59,340	-	46,996	-
Partially covered by plan assets	547,997	309,658	565,490	317,043
Not fully covered by plan assets	607,337	309,658	612,486	317,043
Fully covered by plan assets	64,667	74,263	63,747	74,302
Total	672,004	383,921	676,233	391,345

Actuarial assumptions

The size of pension provisions is determined on an actuarial basis. This necessarily involves estimates. Specifically, the actuarial assumptions used are as follows:

	2024		2023
(Percent)	Germany	USA	UK	Germany	USA
Discount factor*	3.53	5.20	5.55	3.51	5.50
Salary increases	2.75	-	2.65	2.75	-
Pension increases*	$2.00^{1}$	-	3.30	$2.00^{1}$	-

• Weighted average
  ${ }^{1}$ Assuming no guaranteed increase of 1.00\% p.a. In 2024, a blanket 5.0\% (2023: 5.5\%) increase was incorporated for the next adjustment date (May 1, 2025).

The discount factors are derived from the Mercer Pension Discount Yield Curve (MPDYC) model, taking into account the company-specific duration of pension liabilities.

Mortality assumptions are based on published country-specific statistics and experience. The following mortality tables were used in the actuarial calculation of pension obligations:

Germany	Heubeck Richttafeln 2018 G
USA	PRI2012 table projected generationally with MP2021
UK	S3PMA / S3PFA_M CMI_2023 [1,25 \% year of birth

The present value of defined benefit obligations and the market value of plan assets have changed as follows:

Changes in the present value of defined benefit obligations

	2024 International			2023 International
(EUR thousand)			Total	Domestic	2023 International	Total
Defined benefit obligations at start of year	590,798	85,435	676,233	556,010	86,875	642,885
Current service cost	2,251	1,504	3,755	2,485	1,445	3,930
Past service cost	-	6,250	6,250	-	-	-
Interest expense	20,088	4,577	24,665	22,357	4,345	26,702
Remeasurements
Actuarial (gains)/losses arising from changes in demographic assumptions	-	(82)	(82)	-	1,363	1,363
Actuarial (gains)/losses arising from changes in financial assumptions	$(2,612)$	$(1,609)$	$(4,221)$	44,124	$(961)$	43,163
Actuarial (gains)/losses arising from experience adjustments	988	93	1,081	2,249	$(2,058)$	191
Benefits paid from Company assets	(398)	$(3,396)$	$(3,794)$	$(515)$	$(2,517)$	$(3,032)$
Benefits paid from funds assets	$(35,641)$	$(1,709)$	$(37,350)$	$(35,893)$	$(1,428)$	$(37,321)$
Employee contributions	-	77	77	-	74	74
Effect of transfers	(19)	-	(19)	(19)	(714)	(733)
Currency adjustments	-	5,409	5,409	-	(989)	(989)
Defined benefit obligations at end of year	575,455	96,549	672,004	590,798	85,435	676,233

Changes in the market value of plan assets

(EUR thousand)	Domestic	$\begin{gathered} 2024 \ \text { Inter- } \ \text { national } \end{gathered}$	Total	Domestic	$\begin{gathered} 2023 \ \text { Inter- } \ \text { national } \end{gathered}$	Total
Plan assets at start of year	360,192	31,153	391,345	371,098	29,243	400,341
Interest on plan assets	12,555	1,555	14,110	15,345	1,528	16,873
Remeasurements
Return on plan assets not included in net interest expense/income	11,995	$(3,337)$	8,658	5,452	(929)	4,523
Employer contributions	3,475	2,061	5,536	4,190	2,063	6,253
Employee contributions	-	77	77	-	74	74
Benefits paid	$(35,641)$	$(1,709)$	$(37,350)$	$(35,893)$	$(1,428)$	$(37,321)$
Currency adjustments	-	1,545	1,545	-	602	602
Plan assets at end of year	352,576	31,345	383,921	360,192	31,153	391,345

Investing plan assets to cover future pension obligations generated an actual return of EUR 22,768 thousand (2023: EUR 21,396 thousand).

The pension provisions are determined as follows:

Reconciliation of pension obligations to provisions for pensions and similar obligations

(EUR thousand)	Dec. 31, 2024	Dec. 31, 2023
Defined benefit obligations	672,004	676,233
Less plan assets	383,921	391,345
Funding status	288,083	284,888
Assets from overfunded pension plans	9,596	10,555
Provision for pensions and similar obligations	297,679	295,443

The fair value of plan assets is divided among asset classes as follows:

Composition of plan assets

(EUR thousand)	Fair value
	Quoted in an active market	Not quoted in an active market	Total	$\%$
Stock
U.S. equities	31,381	-	31,381	8.17
European equities	7,602	-	7,602	1.98
Emerging market equities	9,330	-	9,330	2.43
Other equities	5,391	-	5,391	1.40
Bonds
U.S. government bonds	413	-	413	0.11
European government bonds	19,527	-	19,527	5.09
Emerging market government bonds	13,084	-	13,084	3.41
Corporate bonds	54,745	2,405	57,150	14.89
Other bonds	15,428	868	16,296	4.24
Secured loans (Europe)	3,155	-	3,155	0.82
Investment funds	50,413	8,243	58,656	15.28
Real estate	-	48,250	48,250	12.57
Infrastructure	-	29,981	29,981	7.81
Insurance policies	-	77,761	77,761	20.25
Cash	4,756	-	4,756	1.24
Other	992	196	1,188	0.31
Total	216,217	167,704	383,921	100.00

Dec. 31, 2023
(EUR thousand)

Stock	29,890	-	29,890	7.64
U.S. equities	10,130	-	10,130	2.59
European equities	9,599	-	9,599	2.45
Other equities	5,918	-	5,918	1.51
Bonds
U.S. government bonds	1,863	-	1,863	0.48
European government bonds	15,178	-	15,178	3.88
Emerging market government bonds	13,702	-	13,702	3.50
Corporate bonds	56,642	2,020	58,662	14.99
Other bonds	14,964	3,360	18,324	4.68
Secured loans (Europe)	3,580	-	3,580	0.92
Investment funds	52,663	6,141	58,804	15.03
Real estate	-	50,274	50,274	12.85
Infrastructure	-	31,518	31,518	8.05
Insurance policies	-	78,052	78,052	19.94
Cash	4,817	-	4,817	1.23
Other	513	521	1,034	0.26
Total	219,459	171,886	391,345	100.00

Pension expense under defined benefit plans is made up as follows:

(EUR thousand)	Domestic	$\begin{gathered} 2024 \ \text { International } \end{gathered}$	Total	Domestic	$\begin{gathered} 2023 \ \text { International } \end{gathered}$	Total
Current service cost	2,251	1,504	3,755	2,485	1,445	3,930
Past service cost	-	6,250	6,250	-	-	-
Total personnel expense	2,251	7,754	10,005	2,485	1,445	3,930
Interest expense for accrued benefit obligations	20,088	4,577	24,665	22,357	4,345	26,702
Interest on plan assets	$(12,555)$	$(1,555)$	$(14,110)$	$(15,345)$	$(1,528)$	$(16,873)$
Net interest expense (net investment and interest income)	7,533	3,022	10,555	7,012	2,817	9,829
Total amount recognized in profit or loss	9,784	10,776	20,560	9,497	4,262	13,759

In addition to the expenses recognized in profit or loss, the Consolidated Statement of Comprehensive Income includes minus EUR 818 thousand (2023: minus EUR 35,749 thousand) in remeasurements of defined benefit plans in 2024 before deferred taxes and after changes in the scope of consolidation and exchange rate. Before deferred taxes, the cumulative amount is minus EUR 344,424 thousand (2023: minus EUR 343,606 thousand).

The Turner Group's obligations to meet healthcare costs for retired staff are included in pension provisions due to their pension-like nature. The defined benefit obligation as of December 31, 2023 came to EUR 59,340 thousand (2023: EUR 46,996 thousand). Healthcare costs accounted for EUR 1,399 thousand (2023: EUR 1,359 thousand) of the current service cost and EUR 2,703 thousand (2023: EUR 2,522 thousand) of the interest expense. In addition, past service costs of EUR 6,250 thousand were incurred for healthcare costs in 2024.

Sensitivity analysis

Pension obligations in the HOCHTIEF Group are subject to the following material risks:

Interest rate risk

For defined contribution plans, (notional) contributions are translated into benefits using a table of fixed interest rates, independent of the current market interest rate. HOCHTIEF thus bears the risk of general capital market interest rate changes with regard to the determination of benefits. Pension obligations have increased significantly in recent years due to the generally low level of capital market interest rates. The correspondingly strong impact is due to the relatively long term of the obligations.

Inflation risk

By law, company pensions in Germany must be raised level with the inflation rate at least every three years. German company pensions under the 2000+ plan rise at a fixed $1 \%$ p.a., hence there is only minor inflation risk in the pension phase. Turner plans are free from inflation risk.

Longevity risk

The granting of life-long pensions means that HOCHTIEF bears the risk of pensioners living longer than actuarial calculations predict. This risk normally averages out across all pension plan members and only comes into play if life expectancy is greater than expected.

The impact of the stated risks on the defined benefit obligations under a corresponding change in actuarial assumptions is shown in the sensitivity analysis that follows.

Impact on the defined benefit obligation

(EUR thousand)	Domestic		Dec. 31, 2024 International		Total
	Increase	Decrease	Increase	Decrease	Increase	Decrease
Discount rate $+0.50 \%$ / -0.50\%	$(30,500)$	33,766	$(4,989)$	6,017	$(35,489)$	39,783
Discount rate $+1.00 \%$ / -1.00\%	$(58,553)$	71,691	$(9,736)$	12,424	$(68,289)$	84,115
Salary increases $+0.50 \%$ / -0.50\%	204	(200)	254	(242)	458	(442)
Pension increases $+0.25 \%$ / -0.25\%	11,117	$(10,751)$	365	(357)	11,482	$(11,108)$
Life expectancy +1 year	26,337	n/a	2,373	n/a	28,710	n/a

(EUR thousand)	Domestic		Dec. 31, 2023 International		Total
	Increase	Decrease	Increase	Decrease	Increase	Decrease
Discount rate $+0.50 \%$ / -0.50\%	$(32,125)$	35,564	$(4,899)$	5,257	$(37,024)$	40,821
Discount rate $+1.00 \%$ / -1.00\%	$(60,994)$	74,733	$(9,419)$	11,574	$(70,413)$	86,307
Salary increases $+0.50 \%$ / -0.50\%	232	(226)	275	(260)	507	(486)
Pension increases $+0.25 \%$ / -0.25\%	11,299	$(11,129)$	821	(730)	12,120	$(11,859)$
Life expectancy +1 year	26,826	n/a	2,111	n/a	28,937	n/a

Future cash flows

Benefit payments

As of December 31, 2024, anticipated pension payments for future years are as follows:
(EUR thousand)
Due in 2025
43,086
Due in 2026
44,104
Due in 2027
44,002
Due in 2028
44,317
Due in 2029
45,332
Due in 2030 to 2034
210,789

Contributions to defined benefit plans

Contributions to defined benefit plans in 2025 are expected to be EUR 5,638 thousand.

Defined contribution plans

Under defined contribution plans, the Company pays into a state or private pension fund voluntarily or in accordance with statutory or contractual stipulations. It has no obligation to pay further contributions.

There are different defined contribution pension plans at Turner, Flatiron, and E.E. Cruz in the USA as well as at CIMIC in Australia. For Turner's plan, and depending on years of service, Turner contributes an employer matching contribution that is either $2.5 \%, 3.75 \%$ or $5 \%$. Additionally, Turner contributes an earnings based employer contribution that is between $3 \%$ to $9 \%$ of an employee's salary. The participant's 401 k account is held at an external Trust managed by the recordkeeper, Fidelity. Turner employees have an option to defer a portion of their base pay up to the annual IRS limits into this plan. All eligible employees are automatically enrolled in the plan immediately upon hire, and are vested in the company's contributions after three years' service. Tax relief is granted on most payments, although it is also possible to pay contributions from taxed income and receive the investment earnings free of tax; the investment risk is borne by employees. The defined contribution plans at Flatiron and E.E. Cruz are also 401k plans. All U.S. non-union employees are entitled to participate. For professional employees, a "safe harbor" contribution of $3.0 \%$ of eligible compensation is made, regardless of any employee contribution. If employees contribute $3.0 \%$ or more of their own money, the company will match $100 \%$ up

to 3.0\%. The Company match vests at 33\% per year and becomes fully vested after three years of service. For craft employees at Flatiron, 4.0\% of eligible compensation is made as a contribution payment, regardless of the employees' own participation. Employer contributions are immediately vested. Since July 1, 2024, CIMIC in Australia has paid 11.50\% (previously 11.00\%) of the wage and salary total into the statutory pension (superannuation) scheme. The contribution rate is expected to rise incrementally up to 12.0\% by 2025. Employees have a choice of investment funds and bear the investment risk. They are able to pay top-up contributions on a voluntary basis. Tax relief is granted on top-up contributions.

The following amounts were paid into defined contribution plans and state pension schemes:

(EUR thousand)	2024	2023
Amounts paid into defined contribution plans
CIMIC	202,148	131,156
Turner	73,986	68,900
Flatiron	11,763	10,922
Other	1,372	886
Total	289,269	211,864
Amounts paid into state pension schemes (employer share)	28,130	26,792

The costs are reported as part of personnel costs.

27. Other provisions

(EUR thousand)	Non- current	Dec. 31, 2024 Current	Total	Non- current	Dec. 31, 2023 Current	Total
Personnel-related provisions	213,293	447,373	660,666	141,696	346,132	487,828
Provisions for insurance claims	249,030	280,763	529,793	153,409	277,667	431,076
Provisions for project losses	-	131,787	131,787	-	146,934	146,934
Warranty obligations	-	56,858	56,858	-	37,861	37,861
Litigation risks	-	14,037	14,037	-	13,665	13,665
Sundry other provisions	19,725	220,038	239,763	27,036	181,996	209,032
Other provisions	482,048	1,150,856	1,632,904	322,141	1,004,255	1,326,396

Personnel-related provisions primarily comprise provisions for stock option schemes, holiday accrual, termination benefits, and early retirement arrangements.

Provisions for insurance claims are made up of liabilities for remaining coverage (pre-claims stage) and liabilities for incurred claims (claims stage after the occurrence of an insured event). The measurement of those provisions is based on a series of estimates and assumptions, particularly the estimate of future cash flows as well as the procedures and inputs for determining both the discount rate and the risk adjustment for non-financial risk. At each reporting date, the fulfilment cash flows for the provisions are remeasured using current discount rates. IFRS 17 provides for the option, applied at portfolio level, to recognize the impact of changes in discount rates and financial risk in other comprehensive income rather than in the consolidated income statement. This option is used at HOCHTIEF.

Provisions for project losses comprise EUR 131,787 thousand (2023: EUR 146,934 thousand) in current provisions for liabilities to customers of the Turner Group that are almost fully covered by insurance claims. The insurance claims are included in other receivables and other assets.

Items covered by sundry other provisions include contract administration, contract costs incurred subsequent to invoicing, payments for damages, and other uncertain liabilities. They are recognized on the basis of management estimates. We currently expect the bulk of these provisions to be utilized in the short term, within the next year.

Statement of provisions

(EUR thousand)	Balance at Jan. 1, 2024	Additions	Reversal of provisions	Changes in the scope of consolidation, currency adjustments, reclassifications, and transfer	Use of provisions	Balance at Dec. 31, 2024
Personnel-related provisions	487,828	536,608	$(4,072)$	73,162	(432,860)	660,666
Provisions for insurance claims	431,076	105,461	-	29,625	(36,369)	529,793
Provisions for project losses	146,934	-	-	8,883	(24,030)	131,787
Warranty obligations	37,861	36,280	$(4,734)$	1,354	(13,903)	56,858
Litigation risks	13,665	3,955	$(1,492)$	425	(2,516)	14,037
Sundry other provisions	209,032	76,254	$(16,987)$	9,781	(38,317)	239,763
Other provisions	1,326,396	758,558	(27,285)	123,230	(547,995)	1,632,904

28. Financial liabilities

(EUR thousand)	Dec. 31, 2024		Dec. 31, 2023
	Noncurrent	Current	Noncurrent	Current
Bonds or notes issued	3,251,922	481,870	2,549,315	10,117
Amounts due to banks	2,641,280	138,450	1,591,001	223,411
Promissory note loans	728,839	165,900	393,021	292,371
Financial liabilities to non-consolidated subsidiaries	-	785	-	259
Financial liabilities to participating interests	20,292	84	16,475	3,205
Sundry other financial liabilities	291	-	246	110
	6,642,624	787,089	4,550,058	529,473

Bonds

	Carrying amount Dec. 31, 2024 (EUR thousand)	Carrying amount Dec. 31, 2023 (EUR thousand)	Principal amount Dec. 31, 2024 (EUR thousand)	Coupon (\%)	Initial item (in years)	Matures
HOCHTIEF AG bond (2024)	661,962	-	650,000 EUR	4.25	6	May 2030
HOCHTIEF AG bond (2021)	498,247	497,331	500,000 EUR	0.63	8	April 2029
HOCHTIEF AG bond (2019)	50,672	50,660	50,000 EUR	2.30	15	April 2034
HOCHTIEF AG bond (2019)	499,004	498,323	500,000 EUR	0.50	8	September 2027
HOCHTIEF AG bond (2019)	249,914	249,747	250,000 EUR	1.25	12	September 2031
HOCHTIEF AG bond (2019)	85,583	89,580	1,000,000 NOK	1.67	10	July 2029
HOCHTIEF AG bond (2019)	53,433	54,178	50,000 CHF	0.77	6	June 2025
HOCHTIEF AG bond (2018)	406,661	503,558	403,367 EUR	1.75	7	July 2025
CIMIC Eurobond (2021)	619,728	616,055	625,000 EUR	3.52	8	May 2029
CIMIC USD Debt 144a (2024)	608,588	-	650,000 USD	7.00	10	March 2034
	3,733,792	2,559,432

In respect of the existing EUR 1.7 billion long-term loan originally maturing in 2028, HOCHTIEF has exercised the first maturity date extension option to 2029. The total amount is divided into EUR 1.2 billion in guarantee facilities, EUR 0.5 billion in credit facilities, and EUR 0.3 billion in term loans with an initial three-year term. These facilities are a core element of the Group's long-term financing strategy.

In March 2024, HOCHTIEF Aktiengesellschaft issued a promissory note loan for EUR 470 million. The promissory note loan has a weighted coupon of $4.43 \%$ with tranches of three, five, seven, and ten years. It was used among other purposes to repay-in March 2024, as scheduled-several promissory note loan tranches totaling EUR 285 million.

Major financing activities in the first quarter of 2024 also included an equity injection on February 15, 2024 totaling EUR 1.3 billion (HOCHTIEF's share at 20\%: EUR 260 million) by the shareholders of Abertis Infraestructuras S.A., Madrid, Spain, ("Abertis Infraestructuras").

On May 31, 2024, HOCHTIEF Aktiengesellschaft issued a EUR 650 million bond on the international capital market with a 6-year term and a coupon of $4.25 \%$ p.a. Rating agency S\&P awarded the bond a BBB- investmentgrade rating. The issue further diversified and extended the maturity profile of HOCHTIEF's long-term borrowing. In addition, it resulted in a significant expansion of the investor base, especially with regard to investors in the English-speaking world. The proceeds from the issue are to be used for general corporate purposes such as refinancing existing financial liabilities.

Parallel to the new bond transaction, a buyback offer was launched on the market for the 2018 HOCHTIEF bond issue maturing in July 2025. The nominal value of the bonds validly tendered and accepted for purchase totaled EUR 96.633 million. At a price of $98.019 \%$, the purchase resulted in a one-time positive income statement effect of approximately EUR 1.914 million. The value date for the redemption amount was June 6, 2024. This means the outstanding nominal amount of the bond is EUR 403.367 million.

Financing activities in the segments

Turner

On October 25, 2024, ahead of schedule, Turner refinanced its undrawn cash credit facility amounting to USD 400 million maturing in July 2025. The new term is five years.

CIMIC

To diversify its sources of finance, effective March 25, 2024, CIMIC Finance (USA) Pty Ltd, New South Wales, Australia, issued a fixed-interest US dollar corporate bond (144a/Reg S) with a term of ten years and a volume of USD 650 million (EUR 628 million). The bond carries a coupon of $7.0 \%$ per annum and matures on March 25, 2034. The proceeds were used to repay borrowings in connection with the revolving cash facilities.

At the beginning of October 2024, ahead of schedule, CIMIC refinanced its AUD 475 million cash credit facility maturing in December 2025. In the process, CIMIC arranged a new revolving cash credit facility in the amount of AUD 376 million with a five-year term. Additionally, two term loans were entered into in the amounts of AUD 267 million and USD 130 million, likewise with five-year terms. This meant that the overall facility amount was increased by a total of approximately AUD 356 million (EUR 213 million).

Thiess refinanced its loans for AUD 2.14 billion (EUR 1.29 billion) maturing in December 2025 ahead of schedule in November 2024. Their refinancing ahead of schedule met with a strong response on the international banking market. The banks offered a total well above the amount needed for refinancing. This and the strong demand on the banking market made it possible to optimize the borrowing terms and increase the volume to a total of AUD 2.53 billion (EUR 1.52 billion). The new financing arrangement has a term of five years and consists of a AUD 700 million (EUR 419 million) credit facility and a AUD 1.83 billion (EUR 1.10 billion) term loan.

Engineering and Construction

In August 2024, Flatiron Construction Corporation and several subsidiaries as borrowers entered into a USD 250 million (EUR 241 million) syndicated credit facility with an international banking syndicate; this was subsequently increased to USD 300 million. As before, HOCHTIEF Aktiengesellschaft is the guarantor for the new credit facility. It replaces the previous USD 300 million (EUR 290 million) syndicated facility.

Amounts due to banks

	Carrying amount Dec. 31, 2024 (EUR thousand)	Average interest rate (\%)	Carrying amount Dec. 31, 2023 (EUR thousand)	Average interest rate (\%)
Variable-rate loans	2,760,723	5.35	1,801,538	6.11
Fixed-rate loans	19,007	2.21	12,874	2.11
	2,779,730		1,814,412

Financial liabilities to equity-accounted companies total EUR 20,375 thousand (2023: EUR 19,680 thousand).

29. Lease liabilities

Lease liabilities total EUR 794,162 thousand (2023: EUR 441,181 thousand), divided into non-current liabilities of EUR 507,922 thousand (2023: EUR 326,096 thousand) and current liabilities of EUR 286,240 thousand (2023: EUR 115,085 thousand).

The following amounts are recognized in connection with leases:

(EUR thousand)	2024	2023
Interest expense on the lease liability	36,915	18,610
Short-term lease expense	288,032	286,493
Low-value lease expense	11,814	11,899
Variable lease expense not included in lease liability	64,492	26,653
Lease remeasurement expense	61	94
Other lease expense	23,290	14,242
Other lease income	2,337	676

Total cash outflows from leases amount to EUR 639,978 thousand (2023: EUR 501,421 thousand).
Certain leases contain extension options by the Group up to one year before the end of the non-cancellable contract period. Where practicable, the Group seeks to include extension options in new leases to provide operational flexibility. The extension options held are exercisable only by the Group and not by the lessors. The Group assesses at lease commencement whether it is reasonably certain to exercise the extension options, and where it is reasonably certain, the extension period has been included in the lease liability. The Group reassesses whether it is reasonably certain to exercise the options if there is a significant event or significant change in circumstances within its control.

Certain lease contracts may include an option to buy out the asset at the end of the lease term or include contingent rental guarantees where the Group could be exposed to the variability of returns in relation to return conditions at lease expiry. The Group will include the payments for the contingent rental guarantee or the buyout option only if it is reasonably certain that the payment will occur at the end of the lease term. The Group reassesses whether it is reasonably certain to exercise the options if there is a significant event or significant change in circumstances within its control.

CIMIC is party to several lease agreements with some unconsolidated companies during the reporting period. These transactions were undertaken to develop operational and financing synergies across the CIMIC Group. The companies concerned are financed by external parties and the Group does not hold any equity interests or assets such as loans or receivables with these entities. The relevant activities are directed by contractual agreements. The entities are controlled by external parties and therefore are not consolidated. The Group is only exposed to the variability of returns in relation to return conditions at lease expiry, which are not known at this time. The Group's exposure to lease liabilities due to unconsolidated companies amounts to EUR 262.9 million (2023: EUR nil).

The maturity analysis of lease liabilities is shown in Note 33.

30. Trade payables and other liabilities

(EUR thousand)

Trade payables
Contract liabilities
Other liabilities

8,942,065	7,077,223
1,617,752	2,260,653
502,525	1,016,510
$\mathbf{1 1 , 0 6 2 , 3 4 2}$	$\mathbf{1 0 , 3 5 4 , 3 8 6}$

Trade payables consist of non-current liabilities in the amount of EUR 234,758 thousand (2023: EUR 35,444 thousand) and current liabilities in the amount of EUR 8,707,307 thousand (2023: EUR 7,041,779 thousand).

Trade payables include payables to equity-accounted companies in the amount of EUR 1,097 thousand (2023: EUR 45,150 thousand).

The EUR 1,617,752 thousand (2023: EUR 2,260,653 thousand) contract liabilities represent construction contracts with a net negative balance in favor of customers where progress payments received exceed incurred contract costs including a pro rata allocation of contract net profit.

Other liabilities are made up as follows:

(EUR thousand)	Dec. 31, 2024		Dec. 31, 2023
	Non-current	Current	Non-current	Current
Liabilities from the purchase of financial assets	83,537	6,078	71,905	328,905
Liabilities to employees	-	73,020	-	40,809
Deferred income	63,537	4,029	50,659	4,014
Liabilities under derivative financial instruments	36,026	29,025	29,332	7,238
Tax liabilities (excluding income taxes)	-	59,271	-	81,053
Social insurance liabilities	-	2,631	-	2,232
Sundry other liabilities	85	145,286	85	400,278
	183,185	319,340	151,981	864,529

In the prior year, the current liabilities from the purchase of financial assets included EUR 260 million relating to the payment not yet made by HOCHTIEF as of the balance sheet date in connection with the capital increase carried out by Abertis. The equity injection was made on February 15, 2024.

31. Current income tax liabilities

The EUR 142,780 thousand (2023: EUR 160,684 thousand) in current income tax liabilities comprise amounts payable to domestic and foreign tax authorities. EUR 111,327 thousand of this amount relate to prior periods (2023: EUR 105,461 thousand).

Other disclosures

32. Basic and diluted earnings per share

Basic earnings per share are calculated by dividing the Group share of profit after tax attributable to the shares by the average number of shares in circulation. This indicator can become diluted as a result of potential shares (mainly stock options and convertible bonds). HOCHTIEF's share-based payment arrangements do not have any dilutive effect. Diluted and basic earnings per share are consequently identical.

	2024	2023
Profit after tax-attributable to HOCHTIEF shareholders (EUR thousand)	775,625	522,749
Number of shares in circulation in thousands (weighted average)	75,225	75,205
Earnings per share-attributable to HOCHTIEF shareholders (EUR)	10.31	6.95
Dividend per share (EUR)	-	4.40
Proposed dividend per share (EUR)	5.23	-

33. Reporting on financial instruments

Financial instruments include financial assets and liabilities as well as contractual claims and obligations relating to exchanges and transfers of financial assets. Financial instruments can be derivative or non-derivative.

Non-derivative financial assets mostly comprise cash and cash equivalents, marketable securities, receivables, and other financial assets. Non-derivative financial liabilities are mainly current liabilities measured at amortized cost.

According to their fair value, derivative financial instruments are reported either in other receivables and other assets or in other liabilities.

Holdings of non-derivative and derivative financial instruments are carried on the balance sheet. The following sections provide information on the management of liquidity risk, currency risk, interest rate risk, other price risk and credit risk as well as additional disclosure on financial instruments.

Financial Risk management strategy

All finance activities in the HOCHTIEF Group are conducted on the basis of a Group-wide financial directive. This is fleshed out by function-specific operating work instructions on issues such as currency and collateral management. These lay down the risk management strategy and the principles for dealing with the various classes of financial risk.

The primary objective of financial risk management is to safeguard Group liquidity at all times. For the HOCHTIEF Group, liquidity not only means solvency in the strict sense, but also the long-term availability of the financial head-room needed for the basic operating business (such as collateral management/bank guarantees). Safeguarding liquidity at all times therefore requires integrated management of all Group financial resources, including its credit standing and hence borrowing capacity.

A further objective is to minimize financial risks affecting the value and profitability of the HOCHTIEF Group (currency, interest rate, exchange rate, and commodity price risks of all kinds, as well as counterparty risks).

The HOCHTIEF Group's operating business gives rise to new or changing financial risk exposures all the time. Risk minimization therefore does not mean excluding all financial risk, but substantially reducing, within specified bounds, financial risk exposures quantifiable at any time. This serves to ensure rapid response and adaptation capability in the event of unforeseen situations.

Management of liquidity risk

HOCHTIEF Aktiengesellschaft uses largely centralized liquidity structures-notably cash pooling-to pool liquidity at Group level. The central liquidity position is calculated daily and budgeted monthly in a bottom-up process over a rolling 18-month period. Liquidity budgets are supplemented with monthly stress testing. HOCHTIEF uses liquidity budgets in active management of its cash and the loans portfolios.

The tables below show maximum payments. The tables show the worst-case scenario for HOCHTIEF, i.e. the earliest possible contractual payment date in each case. Creditors' rights of termination are taken into account. Foreign currency items are translated using the closing rate as of the balance sheet date. Interest payments on variable-rate items are translated uniformly using the last interest rate fixed prior to the balance sheet date. Both derivative and non-derivative financial instruments (for example, forward exchange contracts and interest rate swaps) are taken into account. Credit facilities granted but not yet drawn in their full amount are also included, as are financial guarantees issued by the Group. No separate disclosure is made for financial instruments whose carrying amount best reflects the maximum default risk.

The maximum payments shown in the following tables (worst-case scenario) are offset by contractually fixed receipts in the same periods that are not shown here (for example, from trade receivables).

Maximum payments as of December 31, 2024

(EUR thousand)	2025	2026	2027-2028	after 2028	Total
Non-derivative financial liabilities	9,578,504	942,163	2,906,518	3,731,722	17,158,907
Lease liabilities	286,240	480,184	16,125	11,613	794,162
Derivative financial instruments	29,025	4,250	7,141	24,635	65,051
Loan commitments and financial guarantees	18,889	9,464	7,779	5,698	41,830
	9,912,658	1,436,061	2,937,563	3,773,668	18,059,950

Maximum payments as of December 31, 2023

(EUR thousand)	2024	2025	2026-2027	after 2027	Total
Non-derivative financial liabilities	7,993,206	1,321,514	1,284,819	2,290,155	12,889,694
Lease liabilities	115,085	289,996	22,809	13,291	441,181
Derivative financial instruments	7,238	2,844	12,995	13,493	36,570
Loan commitments and financial guarantees	16,127	10,091	14,685	7,881	48,784
	8,131,656	1,624,445	1,335,308	2,324,820	13,416,229

In addition, Group liquidity is secured with cash in hand and on deposit, marketable securities holdings, undrawn revolving credit facilities, and the possibility of issues under the Commercial Paper Program. The following table shows the main liquidity instruments:

(EUR thousand)	Dec. 31, 2024	Dec. 31, 2023
Cash in hand and on deposit	5,382,537	4,759,121
Marketable securities	866,952	663,671
Undrawn revolving credit facilities (nominal)	3,661,555	2,445,762
	9,911,044	7,868,554
Undrawn guarantee facilities	1,710,954	1,781,498

No refinancing risk is currently seen with regard to the long-term guarantee and credit facilities in light of the broad international syndication of existing borrowing in each instance, the long-term maturity profile, and the diverse alternatives for refinancing. The authorized capital I in the amount of up to EUR 65,752 thousand, the authorized capital II in the amount of up to EUR 33,718 thousand, and the conditional capital in the amount of up to EUR 51,200 thousand provide appropriate scope for raising additional capital as needed.

Financial assets and financial liabilities are presented net in the balance sheet when there is a legally enforceable right to set off the recognized amounts. There must also be an intention either to settle on a net basis, or to realize the assets and settle the liabilities simultaneously. Due to a legally binding arrangement with banks, CIMIC reports financial assets in the amount of EUR 342,580 thousand (2023: EUR 397,465 thousand) and financial liabilities in the amount of EUR 19,849 thousand (2023: EUR 29,822 thousand) netted in the balance sheet with their remaining net amount of EUR 322,731 thousand (2023: EUR 367,643 thousand).

The Group companies enter into factoring agreements with banks and financial institutions. These agreements only relate to certified receivables, on a non-recourse basis, acknowledged by the client with payment only being subject to the passage of time. Under the factoring agreements:

• The certified receivables are derecognized when substantially all the risks and rewards of ownership have been transferred;
• The cash flow to the Group only arises when there is an amount certified by the client and contractually due to be paid to the Group; there are no disputes on the amounts due and the customer has acknowledged this by way of certification; and
• The receipt by the Group irrevocably removes the Group's right to the certified receivable due from the customers.

The factoring of these receivables is therefore done on a non-recourse basis. The level of non-recourse factoring across the Group was EUR 1.2 billion as of December 31, 2024 (2023: EUR 0.9 billion).

The Group enters into supply chain finance arrangements with financial institutions for suppliers which may elect to receive early payment for goods and services to improve their liquidity. The supply chain finance program is offered on a voluntary basis and suppliers can opt in and opt out at their discretion at any point in time. The terms of the arrangements are:

• The creditor arises from operational expenses relating to the supply of goods and services;
• They mirror normal credit terms;
• There are no additional credit enhancements; and:
• They are subject to the same obligations that are customary within the industry, such as warranty for defective work.

Accordingly, the terms of the arrangement do not modify the original liability, and therefore the amounts continue to be classified within trade and other payables. The average maturity date of the financial liabilities shown that come under the arrangement is 30 days after the date of invoice and also corresponds to the average maturity date of trade payables that do not come under a supplier finance arrangement. The level of supply chain finance across the Group was EUR 46.7 million as of December 31, 2024 (2023: EUR 40 million).

Management of currency risk

HOCHTIEF is exposed to currency risk (transaction risk) arising from receivables, liabilities, cash and cash equivalents, marketable securities, and pending transactions in currencies other than the functional currency of the Group company concerned in each instance. Currency derivatives, i.e. forward exchange contracts and crosscurrency swaps, are used to hedge against fluctuations in these payments or items caused by exchange rates. The prospective effectiveness between the hedged item and the hedging instrument has been confirmed for all hedging relationships using the critical terms match method. HOCHTIEF normally hedges all currency risk from foreign currency transactions.

Hedges for Group companies-with the exception of hedges in the CIMIC Group-are mainly administered via HOCHTIEF Aktiengesellschaft. A binding guideline clarifies their use as well as separate controls and responsibilities for all Group companies. Currency derivatives are normally only used to hedge risk. Any form of speculation is ruled out under a binding, Group-wide financial directive. As a matter of policy, the counterparties for derivatives entered into externally are banks with a top credit rating.

The following table shows the fair values and nominal values of currency derivatives, changes in their fair values, and their maximum remaining maturities:
(EUR thousand)
Dec. 31, 2024
Dec. 31, 2023

Assets
Forward exchange contracts/cross-currency swaps
for hedging purposes (cash flow hedge accounting)	43,016	24,111
for hedging purposes (no cash flow hedge accounting)	4,699	3,400
	47,715	27,511
Liabilities and shareholders' equity
Forward exchange contracts/cross-currency swaps
for hedging purposes (cash flow hedge accounting)	43,518	18,343
for hedging purposes (no cash flow hedge accounting)	4,716	6,365
	48,234	24,708
Changes in fair value
of derivatives held for hedging purposes (cash flow hedge accounting) - recognized in other comprehensive income	15,698	5,975
of derivatives held for hedging purposes (no cash flow hedge accounting) - recognized immediately in profit or loss	$(4,328)$	1,064
Nominal amounts
Forward exchange contracts/cross-currency swaps
for hedging purposes (cash flow hedge accounting)	$1,244,893$	870,807
for hedging purposes (no cash flow hedge accounting)	462,916	250,102
Maximum remaining maturity
(months)
for hedging purposes (cash flow hedge accounting)	60	67
for hedging purposes (no cash flow hedge accounting)	22	34

Where hedge accounting is used, unrealized gains and losses on hedges are initially recognized in other comprehensive income, taking into account deferred taxes. Gains and losses are not realized until a hedged item affects income. Derivatives are measured on the basis of current market rates as of the balance sheet date. When interpreting positive or negative fair value changes relating to derivatives, it is important to remember that they balance hedged items whose values move in the opposite direction.

The average hedging rates for forward exchange contracts are EUR/USD 1.0598 and EUR/PLN 4.3689.
In the case of cross-currency interest rate swaps, the cross-currency basis spreads that are part of the hedging instrument are not included in the hedge and HOCHTIEF Aktiengesellschaft accounts for the cost of hedging in other comprehensive income.

The table below shows the reconciliation of the cost of hedging and the reconciliation of the associated cash flow hedge reserve components. The cost of hedging mainly include the non-designated cross-currency basis spreads that are part of the cross-currency interest rate swaps.

	Jan. 1, 2024	Hedging gain or loss	Reclassified	Reclassified to inventories (basis adjustment)	Dec. 31, 2024
(EUR thousand)	21,984	$(12,695)$	6,360	-	15,649
Cash flow hedge reserve	$(336)$	914	-	-	578
Cost of hedging

The following sensitivity analyses demonstrate what material impact on HOCHTIEF Group equity and profit would result from a 10\% fluctuation in foreign currencies relative to each Group company's functional currency. The analysis is based on the risk exposure as of the balance sheet date.

Management of interest rate risk

HOCHTIEF is exposed to interest rate risk through financial items primarily consisting of interest-bearing marketable securities on the assets side and financial liabilities on the liabilities side of the balance sheet. Two approaches are used to minimize this risk. Firstly, the Company uses natural hedging, meaning that it eliminates contrary interest rate risk from non-derivative financial instruments on the assets and liabilities sides. The second method is to use interest rate derivatives. These generally take the form of interest rate swaps used in accordance with the Group annual financing strategy to manage cash flow risk from changes in interest rates for variable-rate financial items. The prospective effectiveness between the hedged item and the hedging instrument has been confirmed for all hedging relationships using the critical terms match method. As with currency derivatives, hedges for Group companies - with the exception of hedges in the CIMIC Group - are mainly administered via HOCHTIEF Aktiengesellschaft. There are also parallel regulations and a guideline, and derivatives are used solely for hedging (i.e. not speculatively) as a matter of principle. As a matter of policy, the counterparties for derivatives entered into externally are banks with a top credit rating.

The following table shows the fair values and nominal values of interest rate derivatives, changes in their fair values, and their maximum remaining maturities:
(EUR thousand)

The following sensitivity analyses demonstrate the impact that a one percentage point change in the respective market interest rate would have had on equity and profit. The analysis is based on the risk exposure as of the balance sheet date.
(EUR thousand)
Change in equity due to market value fluctuations of interest rate derivatives used for hedging (cash flow hedge accounting) and of fixed-interest securities measured at fair value through other comprehensive income (OCI)
Change in profit or loss due to unhedged variable rate interest rate exposures on primary financial instruments and to market value fluctuations in derivative financial instruments (no cash flow hedge accounting)

	Dec. 31, 2024			Dec. 31, 2023
	Market interest rate $1 \%$ increase		Risk exposure	Market interest rate $1 \%$ increase		Risk exposure
49,960		(49,960)	1,586,414	53,766	(52,191)	1,007,646
(23,297)		23,314	2,656,949	(20,706)	20,268	1,852,719

Management of other price risk

At HOCHTIEF, other price risk results from investing in current and non-current non-interest-bearing marketable securities. Price risk also results from other financial assets (mainly investments). Such items are shown in the following table.
(EUR thousand)
Dec. 31, 2024 Dec. 31, 2023
Price risk exposure on non-current assets
137,252
219,363
Price risk exposure on current assets
206,403
155,969

The following table shows the fair values and nominal values of equity options and stock forward contracts, changes in their fair values, and their maximum remaining maturities:
(EUR thousand)
Dec. 31, 2024
Dec. 31, 2023

Assets	-	-
Liabilities and shareholders' equity
Equity options and stock forward contracts
for hedging purposes (cash flow hedge accounting)	-	-
for hedging purposes (no cash flow hedge accounting)	-	996
	-	996
Changes in fair value
of derivatives held for hedging purposes (cash flow hedge accounting) - recognized in other comprehensive income	-	-
of derivatives held for hedging purposes (no cash flow hedge accounting) - recognized immediately in profit or loss	-	2,698
Nominal amounts
Equity options and stock forward contracts
for hedging purposes (cash flow hedge accounting)	-	-
for hedging purposes (no cash flow hedge accounting)	-	996
Maximum remaining maturity
(months)
for hedging purposes (cash flow hedge accounting)	-	-
for hedging purposes (no cash flow hedge accounting)	-	84

The following sensitivity analyses demonstrate the impact on HOCHTIEF Group equity and profit that would result from a $10 \%$ fluctuation in the market value of derivative and non-derivative financial instruments. The analysis is based on holdings as of the balance sheet date.
(EUR thousand)

	Dec. 31, 2024		Dec. 31, 2023
	Market value		Market value
Change in equity due to changes in	10\%	10\%
market price of unimpaired securities	$(24,428)$	$(24,428)$	15,959	$(15,959)$
Change in equity due to changes in the value	4,889	$(4,889)$	18,601	$(18,601)$
of participating interests measured at fair value

Management of credit risk

The HOCHTIEF Group is exposed to credit risk from operations and from certain financing activities.

HOCHTIEF performs risk management for operations by continuously monitoring trade receivables at divisional level. For trade receivables, using the simplified approach, expected credit losses (ECL) can be determined in accordance with IFRS 9 on the basis of loss rates calculated from historical and projected data, taking into account the client and the regional economic environment. HOCHTIEF considers the following as constituting an event of default for internal credit risk management purposes as historical experience indicates that receivables that meet either of the following criteria are generally not recoverable:

• if there is a material breach of financial covenants by the counterparty and this is not expected to be remedied in the foreseeable future; or
• information developed internally or obtained from external sources indicates that the debtor is unlikely to pay its creditors, including the HOCHTIEF Group, in full (without taking into account any collaterals held by HOCHTIEF). Irrespective of the above analysis, HOCHTIEF considers that default has occurred when a financial asset is significantly past due unless the HOCHTIEF Group has reasonable and supportable information to demonstrate that a more lagging default criterion is more appropriate.

The HOCHTIEF Group has given third parties financial guarantees and loan commitments in respect of Group companies. Financial guarantees and loan guarantees are only given in respect of companies with top credit standing, minimizing the probability of the guarantees being drawn upon.

The maximum credit risk exposure of financial assets is equivalent to their carrying amounts in the balance sheet. However, the actual credit risk exposure is lower due to collateral given in favor of the HOCHTIEF Group. The maximum risk exposure on financial guarantees issued by HOCHTIEF is the maximum amount to be paid by HOCHTIEF. The maximum credit risk for loan commitments is the amount of the commitment. As of December 31, 2024, the maximum credit risk from financial guarantees and loan commitments amounted to EUR 41,830 thousand (2023: EUR 48,784 thousand). No recourse has ever been made to these guarantees provided by HOCHTIEF and, in light of the financial circumstances, none is currently anticipated for the future.

HOCHTIEF accepts collateral to secure contract performance by subcontractors, subcontractors' warranty obligations, and claims to remuneration. Such collateral includes guarantees relating to warranty obligations, contract performance, advance payments, and receivables. Acceptance of collateral is governed by a HOCHTIEF work instruction. Among other aspects, this covers the contractual drafting, implementation, and management of all agreements. The detailed rules vary according to factors such as the country jurisdiction and applicable case law. In the case of credit risk, HOCHTIEF examines the credit rating of the party providing the collateral for all guarantees accepted. HOCHTIEF uses external specialists (such as rating agencies) to assess credit standings where possible. The fair values of accepted collateral are not disclosed as they generally cannot be measured reliably.

HOCHTIEF recognizes loss allowance for expected credit losses for financial assets measured at amortized cost or at fair value through other comprehensive income, as well as for contract assets, lease receivables, loan commitments, and financial guarantees. This does not apply to equity instruments or financial assets measured at fair value through profit or loss.

HOCHTIEF determines credit risk for financial assets on the basis of the expected credit losses, applying a threestage model to present the loss allowance. For financial instruments which are new or whose credit risk has not increased significantly since initial recognition, a loss allowance is recognized in profit or loss in the amount of the 12-month expected credit losses (Stage 1). In the case of financial instruments whose credit risk has increased significantly since initial recognition, a loss allowance corresponding to the lifetime expected credit losses is recognized through profit or loss (Stage 2). If, in addition, there is objective evidence that a financial asset is impaired in value, a loss allowance is recognized in the amount of the lifetime expected credit losses

(Stage 3). In contrast to measurement at Stage 1 and 2, the effective interest is then calculated on the basis of the net carrying amount (the gross carrying amount less recognized impairments).

Expected credit losses for trade receivables and contract assets are determined using the simplified approach based on an impairment matrix. In this instance, loss allowances are recognized in profit or loss in the amount of the lifetime expected credit losses, in accordance with Stage 2 of the general model, both on initial recognition and at each reporting date. If there are objective indications of impairment, the general requirements for transfer to the next higher stage, Stage 3, apply.

The following tables show the gross and net carrying amounts as well as the accumulated impairment amount for trade receivables, including contract assets. This does not include trade receivables measured at fair value though profit or loss in the amount of EUR 152,612 thousand (2023: EUR 91,403 thousand).

Dec. 31, 2024

(EUR thousand)	Net carrying amount	Cumulative depreciation	Gross carrying amount	Impairment matrix not applied	Impairment matrix
					Not past due	Up to 30 days past due	31 to 60 days past due	61 to 90 days past due	Over 90 days past due
Trade receivables	6,723,271	$(515,527)$	7,238,798	1,366,449	5,416,690	224,729	63,521	15,376	152,033
	6,723,271	$(515,527)$	7,238,798	1,366,449	5,416,690	224,729	63,521	15,376	152,033

Dec. 31, 2023

(EUR thousand)	Net carrying amount	Cumulative depreciation	Gross carrying amount	Impairment matrix not applied	Not past due	Up to 30 days past due	31 to 60 days past due	61 to 90 days past due	Over 90 days past due
Trade receivables	5,941,994	(290,629)	6,232,623	1,387,719	4,442,267	189,346	34,110	18,291	160,890
	5,941,994	(290,629)	6,232,623	1,387,719	4,442,267	189,346	34,110	18,291	160,890

The aging profile of trade receivables that are past due is shaped by industry-specific factors. Receipt of payment depends on acceptance (inspection) and invoice checking, which can often take a relatively long time, especially for large-scale projects. The trade receivables that are past due are from public-sector clients and industrial companies with top credit ratings are mostly subject to low credit risk.

The opening balance of impairments on trade receivables and contract assets at the beginning of the reporting period was EUR 290,629 thousand. Changes within the 2024 reporting period relate to additions, reversals, utilizations, exchange rate adjustments, and consolidation changes, and come to a total of EUR 224,898 thousand (2023: negative EUR 7,010 thousand), as a result of which impairments amounted to EUR 515,527 thousand as of December 31, 2024. In percentage terms, the loss rate on the gross carrying amount of trade receivables and contract assets is $7.12 \%$ (2023: $4.66 \%$ ). These are mostly impairments typical for the industry.

The following tables show, for 2024 and 2023, changes in the expected credit losses on the remaining financial assets that come under the general impairment model in accordance with IFRS 9:
(EUR thousand)
Financial receivables
Jan. 1, 2024
Remeasurement
(changed measurement parameters)
Repaid or derecognized financial assets
Other changes
Dec. 31, 2024
Other receivables and
other assets
Jan. 1, 2024
Remeasurement
(changed measurement parameters)
Newly acquired/issued financial assets
Dec. 31, 2024
Marketable securities
Jan. 1, 2024
Newly acquired/issued financial assets
Repaid or derecognized financial assets
Other changes
Dec. 31, 2024

1,680	-	32,586	34,266
63	-	-	63
(736)	-	-	(736)
-	-	2,194	2,194
1,007	-	34,780	35,787

Other receivables and

*The other changes relate to exchange rate adjustments.

(EUR thousand)	Stage 1 12-month expected credit losses	Stage 2 lifetime expected credit losses	Stage 3 lifetime expected credit losses	Total
Financial receivables
Jan. 1, 2023	2,158	6,235	108,251	116,644
Remeasurement (changed measurement parameters)	$(6,713)$	-	-	$(6,713)$
Transfer to stage 1	6,235	$(6,235)$	-	-
Repaid or derecognized financial assets	-	-	$(74,492)$	$(74,492)$
Other changes*	-	-	$(1,173)$	$(1,173)$
Dec. 31, 2023	1,680	-	32,586	34,266
Other current receivables and other current assets
Jan. 1, 2023	616	-	-	616
Remeasurement (changed measurement parameters)	(29)	-	-	(29)
Transfer to stage 3	(510)	-	510	-
Dec. 31, 2023	77	-	510	587
Marketable securities
Jan. 1, 2023	-	-	-	-
Newly acquired/issued financial assets	-	167	-	167
Repaid or derecognized financial assets	(28)	-	-	(28)
Other changes*	942	893	-	1,835
Dec. 31, 2023	914	1,060	-	1,974

*The other changes relate to exchange rate adjustments.

In order to enable an assessment of the HOCHTIEF Group's credit risk exposure, the following tables show the gross carrying amounts of financial assets subject to the general impairment model, by risk class based on S\&P within the ECL stages.

Dec. 31, 2024
(EUR thousand)

Risk classes	Stage 1 12-month expected credit losses	Stage 2 lifetime expected credit losses	Stage 3 lifetime expected credit losses	Total
Grade 1-5: low risk (AAA to BBB-)	2,039,574	-	-	2,039,574
Grade 6-9: average risk (BB+ to BB-)	66,689	33,627	-	100,316
Grade 10: above-average risk (B+ to CCC-)	38,048	325	-	38,373
Grade 11: doubtful (CC to C)	839	56,839	-	57,678
Grade 12: loss (D)	-	530	100,073	100,603
	2,145,150	91,321	100,073	2,336,544

(EUR thousand)	Stage 1 12-month expected credit losses	Stage 2 lifetime expected credit losses	Stage 3 lifetime expected credit losses	Total
Risk classes	2,057,025	-	-	2,057,025
Grade 1-5: low risk (AAA to BBB-)	42,769	31,585	-	74,354
Grade 6-9: average risk (BB+ to BB-)	16,152	258	-	16,410
Grade 10: above-average risk (B+ to CCC-)	378	60,451	-	60,829
Grade 11: doubtful (CC to C)	-	457	102,033	102,490
Grade 12: loss (D)	$\mathbf{2 , 1 1 6 , 3 2 4}$	$\mathbf{9 2 , 7 5 1}$	$\mathbf{1 0 2 , 0 3 3}$	$\mathbf{2 , 3 1 1 , 1 0 8}$

Capital risk management

The HOCHTIEF Group manages capital with the aim of ensuring that all Group companies can continue to operate as a going concern. Furthermore, the HOCHTIEF Group's strategic financial targets are geared to continuously increasing corporate value and maintaining sufficient liquidity reserves. The Group keeps the cost of capital as low as possible by optimizing the balance between equity and debt. These measures primarily serve to secure the best possible credit standing as well as to maximize shareholder returns. Medium-term liquidity planning at corporate units ensures that all operating businesses have sufficient liquidity at all times.

The Group's capital structure consists of the balance sheet items comprising net debt (defined as current and non-current liabilities less cash and cash equivalents) and equity. A notable aim in capital management is to maintain the HOCHTIEF Group's investment-grade rating for ongoing access to the debt capital market and to optimize the cost of capital. To meet these goals, the impact of material capital transactions and business activities is assessed in advance to check conformity with the quantitative capital requirements of rating agency S\&P. HOCHTIEF's "BBB-, outlook stable" rating meets this objective as of the reporting date. The overall capital risk management strategy did not change in the reporting year compared with the prior year.

Additional information on financial instruments

In the following, carrying amounts and fair values are shown for each class of financial instrument and carrying amounts for each IFRS 9 category as of December 31, 2024 and as of December 31, 2023.

*In accordance with IFRS 13 allocated to fair value hierarchy level 2

*In accordance with IFRS 13 allocated to fair value hierarchy level 2

As current financial instruments have short remaining maturities and are measured at market value, their carrying amounts generally correspond to market value as of the balance sheet date. Non-current securities are measured at fair value; as such, their carrying amounts also correspond to fair value. Where insufficient recent information is available for fair value measurement of shares in non-consolidated subsidiaries and other participating interests, the historical cost may be considered the best estimate of fair value.

In the disclosures on the fair value hierarchy for financial instruments measured at fair value as set out below, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions (i.e., the exit price). For non-financial assets, fair value is measured assuming the highest and best use of the asset by market participants. The following three-level hierarchy is applied that reflects the observability of the inputs to valuation techniques used to measure fair value.

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities; e.g. quoted securities.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); e.g. interest rate swaps and forward exchange contracts.

Level 3: No relevant observable inputs available, hence unobservable inputs are determined as an exit price from the perspective of a market participant that holds the asset or owes the liability; e.g. investments measured at fair value determined by business valuation.

Disclosures relating to the fair value hierarchy for financial instruments measured at fair value

(EUR thousand)	Dec. 31, 2024			Dec. 31, 2023
	Level 1	Level 2	Level 3	Level 1	Level 2	Level 3
Assets
Other financial assets	37,874	60,136	39,242	3,617	36,841	178,905
Financial receivables and other assets
Non-current	-	36,233	-	-	23,632	-
Current	164	164,094	-	185	97,701	-
Marketable securities	810,947	-	-	626,915	-	-
Liabilities
Other liabilities
Non-current	-	36,026	-	30	29,302	-
Current	74	28,951	-	164	6,078	996

There were no transfers of assets measured at fair value between Level 1 and Level 2 of the fair value hierarchy in the course of the reporting year. There were likewise no changes in Level 3 compared to the previous year.

The financial receivables and other assets as well as the other liabilities include the Group's forward exchange contracts, which are not traded in active markets. The fair values of these contracts are estimated using a valuation technique that maximizes the use of observable market inputs, e.g. market exchange and interest rates. They are therefore included in Level 2 of the fair value hierarchy.

In Level 3, the fair value of investments in unlisted entities is measured using generally recognized valuation techniques based on discounted cash flow analysis. The unobservable inputs used for this purpose are an internal rate of return of $9 \%$, growth rates of between $2.5 \%$ and $3.0 \%$, and required discount rates of between $8 \%$ and $15 \%$. Current other liabilities in Level 3 comprise the following two options. There were no significant interdependencies between the unobservable input parameters that materially affect the fair values. Changes in those input parameters had no material effect on total comprehensive income, total assets and liabilities, or equity.

Put option and Thiess option

Elliott holds an option to sell all or part of its interest in ordinary shares or Class A Preference Shares in Thiess to CIMIC (Put option). The terms of the April 23, 2024 transaction mean that the Put option is now exercisable by Elliott from April 22, 2025 to December 31, 2026. The Thiess option has a six-month notice period to exercise the Put option. The exercise price will be the lower of a cost price or a price referable to movements in the S\&P / ASX 200 Total Return index plus the accrued value of any shortfall in agreed minimum distributions.

As part of the Group's investment in the Thiess Class C Preference Shares, Elliott and CIMIC entered into an option deed (Thiess option) which includes an option for Elliott to put their Class C Preference Shares to CIMIC for a period of 42 months, starting six months after the end of the Put option period, or, six months after the date when Elliott ceases to own Class A Preference Shares or ordinary shares or notices the exercise of options related to all remaining Class A Preference Shares or ordinary shares. CIMIC holds a call option to acquire the Class C Preference Shares from Elliott, for a period of 42 months, starting at the end of the Put option period or the date when Elliott ceases to own any Class A Preference Shares or ordinary shares.

In the previous year, the Put and Thiess option were recognized as derivative financial instruments in accordance with IFRS 9 at fair value under current other liabilities (Level 3 of the fair value hierarchy). As a consequence of the April 23, 2024 transaction and the required consolidation of Thiess, the Put option and Thiess option are required to be recognized as an option over non-controlling interest (Put options granted to non-controlling interest shareholders) and the present value of the gross redemption value is recognized as a financial liability alongside a reduction in equity within reserves. The liability is presented separately in the consolidated balance sheet.

Accordingly, amounts of EUR 550.0 million (ordinary shares and Class A Preference Shares) and EUR 91.5 million (Class C Preference Shares), totalling EUR 641.5 million, without adjustment for the probability of the assets being put to CIMIC, have been recognized in the consolidated balance sheet.

Reconciliation of beginning to ending balances for Level 3 measurements of financial instrument fair values

(EUR thousand)	Balance as of Jan. 1, 2024	Currency adjustments	Gains/(losses) recognized in profit or loss	Other changes	Balance as of Dec. 31, 2024
Assets
Other financial assets	178,905	$(3,155)$	$(16,083)$	$(120,425)$	39,242
Liabilities
Other liabilities
Non-current	-	-	-	-	-
Current	996	$(9)$	-	$(987)$	-

(EUR thousand)

The currency adjustments and remaining changes in 2024 are accounted for in other comprehensive income.

Marketable securities as well as cash and cash equivalents with a carrying amount of EUR 282,056 thousand are pledged as collateral for recognized financial liabilities and unrecognized contingent liabilities as of December 31, 2024 (2023: EUR 353,659 thousand).

The following table shows the net profit from financial instruments by IFRS 9 category for 2024 and 2023:

Net profit from financial instruments

(EUR thousand)	2024	2023
At amortized cost	132,163	107,959
At fair value through profit or loss	7,290	41,937
At fair value through other comprehensive income: Debt instruments	10,849	6,085
At fair value through other comprehensive income: Equity instruments	2,570	2,019
Liabilities at amortized cost	$(421,449)$	$(256,544)$
	$(268,577)$	$(98,544)$

The calculation of net profit from financial instruments includes interest income and expenses, impairments and impairment reversals, income and expenses from currency translation, dividend income, gains and losses on disposal, and other changes in the fair value of financial instruments recognized in profit or loss or other comprehensive income.

34. Contingencies, commitments, and other financial obligations

Dec. 31, 2024 Dec. 31, 2023
(EUR thousand)
Obligations under guarantees

In the previous year, contingent liabilities primarily serve as security for bank loans, contract performance, warranty obligations, and advance payments. Most guarantees given by HOCHTIEF Aktiengesellschaft as of the reporting date related to participating interests and construction joint ventures. HOCHTIEF Aktiengesellschaft is also jointly and severally liable for all construction joint ventures in which it has an interest in Germany.

Material guarantee facilities

(EUR billion)	Total available 2024	2023	Utilized		Expires
			2024	2023
HOCHTIEF AG
Syndicated guarantee facility (EUR)	1.20	1.20	0.83	0.83	March 30, 2029
Further guarantee facilities (EUR)	1.34	1.29	0.81	0.78	n/a
Turner/Flatiron
Bonding (USD)	14.23	12.50	14.23	12.17	until further notice
Flatiron syndicated guarantee (USD)	0.30	0.00	0.00	0.00	Aug. 2, 2027
Further guarantee facilities (USD)	0.25	0.18	0.16	0.13	until further notice
CIMIC
Syndicated guarantee facility (AUD)	1.33	1.38	1.18	1.18	Nov. 6, 2026
Further guarantee facilities (AUD)	5.88	5.26	5.14	4.85	n/a

The syndicated U.S. Surety Bonding Line used by both Turner and the Flatiron Group for their operating activities was further increased in the fiscal year due to the rise in orders and the related need for greater bonding capacity. The amount outstanding as of the reporting date was approximately EUR 13.7 billion (approximately USD 14.2 billion).

In November 2023, CIMIC signed an AUD 1.3 billion (EUR 0.8 billion) three-year syndicated performance bond facility. This replaced an AUD 1.4 billion (EUR 0.85 billion) facility that expired in March 2024 and covers the CIMIC Group's operational bonding requirements in addition to the existing bilateral guarantee and bonding facilities.

Group order exposure from awarded capital expenditure projects is EUR 41,510 thousand (2023: EUR 75,465 thousand) and mostly relates to the CIMIC Group in the amount of EUR 41,074 thousand (2023: EUR 75,324 thousand).

Legal disputes

HOCHTIEF Group companies are involved in various legal disputes and arbitration proceedings in the context of their operating activities. As currently assessed, HOCHTIEF does not anticipate that the disputes and arbitration proceedings will have any material adverse impact on the Group's business and financial situation.

35. Segment reporting

HOCHTIEF Aktiengesellschaft adopted a new organizational structure in 2024 based on the management model. This provides better visibility of each segment and aligns with our strategic and operational priorities. Segmentation is based on the new internal reporting systems. The comparative figures for the previous year are reported in accordance with the new segmentation.

The Group's reportable segments are as follows:

Turner is a leading U.S. general building company providing a full range of services for projects of all types and sizes in North America and around the world, successfully pursuing opportunities in high-tech growth markets such as data centers and electric vehicle battery plants.

CIMIC is an Australian company that pools its construction, services, and PPP activities in the Asia-Pacific region and, for instance, includes the investment in Thiess, which since May 2024 has been accounted for as a subsidiary in the Consolidated Financial Statements.

Engineering and Construction bundles the construction and PPP activities in Europe together with the civil engineering company Flatiron, Wilmington, USA, in North America.

Abertis comprises the investment in the Spanish toll road operator Abertis Infraestructuras, and is equity-accounted in HOCHTIEF's Consolidated Financial Statements.

Corporate comprises Corporate Headquarters, other activities not assignable to the separately presented segments - such as management of financial resources and insurance activities -, plus consolidation effects. Insurance activities are managed from Corporate Headquarters under the responsibility of HOCHTIEF Insurance Broking and Risk Management Solutions GmbH, Essen, Germany, with companies in Luxembourg, including Stonefort Reinsurance S.A. The HOCHTIEF insurance companies primarily provide reinsurance offerings for contractors' casualty and surety, subcontractor default, liability, and occupational accident insurance.

Segments	External sales		Intersegment sales		Sales by division (external plus intersegment)
(EUR thousand)	2024	2023	2024	2023	2024	2023
Turner	19,261,763	16,174,272	2,585	10,636	19,264,348	16,184,908
CIMIC	10,212,548	8,099,585	-	-	10,212,548	8,099,585
Engineering and Construction	3,626,844	3,297,692	1,975	4,069	3,628,819	3,301,761
Abertis	-	-	-	-	-	-
Corporate	200,115	184,497	4,338	10,062	204,453	194,559
HOCHTIEF Group	33,301,270	27,756,046	8,898	24,767	33,310,168	27,780,813

Segments	Work done		Nominal profit before tax (PBT)		Nominal net profit*
(EUR thousand)	2024	2023	2024	2023	2024	2023
Turner	18,764,142	15,818,058	565,221	415,659	411,175	294,831
CIMIC	12,239,182	10,885,007	475,494	302,381	409,850	266,246
Engineering and Construction	4,300,683	3,960,323	62,331	56,696	40,444	35,738
Abertis	-	-	$(13,608)$	79,459	$(13,608)$	79,459
Corporate	171,993	207,002	$(85,590)$	$(139,192)$	$(72,236)$	$(153,525)$
HOCHTIEF Group	35,476,000	30,870,390	1,003,848	715,003	775,625	522,749

[^0]
[^0]: * Profit after tax attributable to HOCHTIEF shareholders

Segments	EBITDA		EBITDA adjusted		Materials		Ordinary depreciation/ amortization
(EUR thousand)	2024	2023	2024	2023	2024	2023	2024	2023
Turner	548,697	432,833	550,573	433,060	16,071,475	13,377,236	39,053	48,540
CIMIC	1,197,490	599,355	1,197,490	599,355	5,791,470	5,048,700	482,553	183,553
Engineering and Construction	154,808	151,888	178,866	182,199	2,549,217	2,356,547	69,372	78,000
Abertis	$(13,608)$	79,459	$(13,608)$	79,459	-	-	-	-
Corporate	$(32,821)$	$(92,625)$	$(31,807)$	$(63,882)$	128,781	135,273	3,437	3,031
HOCHTIEF Group	1,854,566	1,170,910	1,881,514	1,230,191	24,540,943	20,917,756	594,415	313,124

Segments	Share of profits and losses of equitymethod associates and joint ventures		Interest and similar income		Interest and similar expenses		Non-cash expenses
(EUR thousand)	2024	2023	2024	2023	2024	2023	2024	2023
Turner	488	3,358	74,095	49,267	15,771	15,567	290,660	252,512
CIMIC	24,064	93,783	50,054	47,848	289,498	161,194	228,766	134,292
Engineering and Construction	17,895	74,256	38,253	29,884	63,341	55,263	151,677	138,781
Abertis	$(13,608)$	79,459	-	-	-	-	-	-
Corporate	1,309	3,389	12,118	$(3,489)$	53,610	24,492	122,124	78,246
HOCHTIEF Group	30,148	254,245	174,520	123,510	422,220	256,516	793,227	603,831

Segments	Carrying amount of equitymethod investments		Purchases of intangible assets, property, plant, equipment, investment properties and financial assets				Net cash (+)/ Net debt (-)
(EUR thousand)	2024	2023	2024	2023	2024	2023
Turner	3,655	39,892	56,845	46,415	3,091,666	2,396,897
CIMIC	356,178	1,164,274	855,985	264,864	(1,734,064)	(214,175)
Engineering and Construction	86,805	233,557	522,009	459,799	1,174,549	1,038,333
Abertis	1,213,717	1,415,440	-	260,000	-	-	-
Corporate	10,938	(21,056)	(29,597)	(24,799)	(2,652,058)	(2,348,838)
HOCHTIEF Group	1,671,293	2,832,107	1,405,242	1,006,279	(119,907)	872,217
Regions			External sales by customer location			Non-current assets
(EUR thousand)			2024	2023	2024	2023
Germany			958,342	837,643	185,807	190,455
Rest of Europe			616,818	537,253	102,416	88,283
USA			20,829,110	17,444,251	486,340	614,658
Rest of America			863,109	931,226	153,562	57,833
Asia			1,126,800	632,235	451,968	257,475
Australia			8,894,616	7,228,784	3,873,908	754,663
Rest of Oceania			12,475	144,654	981	-
HOCHTIEF Group			33,301,270	27,756,046	5,254,982	1,963,367

Explanatory notes to the segmental data

Intersegment sales represent revenue generated between divisions. They are transacted on an arm's length basis. External sales mainly comprise revenue from performance obligations recognized under the percentage of completion method in the mainstream construction business, construction management, and resource services. The sum of external sales and intersegment sales adds up to total sales revenue for each division.

Work done includes work done for fully consolidated companies plus the proportional share of work done in joint ventures.

EBIT/EBITDA adjusted is derived from profit before tax as follows:
(EUR thousand)

Profit before tax	1,003,848	715,003
+ Investment and interest expenses	471,551	300,391
- Investment and interest income	$(206,817)$	$(147,845)$
- Result from long term loans to participating interests	$(8,431)$	$(17,232)$
EBIT	1,260,151	850,317
+ Depreciation and amortization	594,415	320,593
EBITDA	1,854,566	1,170,910
Adjustments
- Foreign exchange gains	$(12,566)$	$(29,784)$
+ Currency losses	38,791	37,438
- Income from disposal/write-ups of intangible assets, property, plant and equipment, and investment properties	$(13,654)$	$(8,492)$
+ Losses from disposal of non-current assets (excluding financial assets)	2,045	1,248
- Income from derecognition of/reversals of impairments on receivables	$(3,802)$	$(1,627)$
+ Impairment losses and losses on disposal of current assets (except inventories)	2,805	34,286
+ Adjustment for non-operating net expenses	13,329	26,212
EBITDA adjusted	1,881,514	1,230,191
- Depreciation and amortization	$(594,415)$	$(320,593)$
EBIT adjusted	1,287,099	909,598

Depreciation and amortization relates to intangible assets with finite useful lives, property, plant and equipment (including right-of-use assets), and investment properties.

The share of profits and losses of equity-method associates and joint ventures comprises income and expenses, including impairment losses, relating to equity-method investments.

The non-cash expenses consist of additions to provisions.

Purchases comprise additions to intangible assets, property, plant and equipment, investment properties, equitymethod investments (excluding equity-method adjustments), subsidiaries, and other participating interests.

Net cash is made up as follows:
(EUR thousand)
Cash and cash equivalents
Marketable securities
Current financial receivables
Current tax receivables (excluding income taxes)
Financial assets included in net cash
Bonds or notes issued
Amounts due to banks
Promissory note loans
Financial liabilities to participating interests
Sundry other financial liabilities
Financial liabilities included in net cash
Net cash
Net cash Flatiron*
Total net cash
Dec. 31, 2024
$5,720,598$
810,947
53,901
59,432
6,644,878
3,733,792
2,779,730
894,739
20,375
291
7,428,927
(784,049)
664,142
(119,907)

Dec. 31, 2023
$5,149,536$
626,915
146,640
28,398
5,951,489
2,559,432
1,814,412
685,392
19,680
356
5,079,272
872,217
872,217
*Included in assets/liabilities held for sale

Non-current assets comprise intangible assets, property, plant and equipment, and investment properties.

36. Notes to the Consolidated Statement of Cash Flows

The Consolidated Statement of Cash Flows classifies cash flows into operating, investing, and financing activities. Exchange rate effects are eliminated and their influence on the cash position is disclosed separately. Changes in cash and cash equivalents due to acquisitions and disposals of consolidated companies are shown separately under cash flow from investing activities. The EUR 51,058 thousand (2023: minus EUR 1,308 thousand) changes in cash and cash equivalents due to consolidation changes comprised EUR 69,728 thousand (2023: EUR 988 thousand) in cash and cash equivalents from acquisitions and EUR 18,670 thousand (2023: EUR 2,296 thousand) in cash and cash equivalents in disposals.

The EUR 5,720,598 thousand (2023: EUR 5,149,536 thousand) year-end total for cash and cash equivalents shown on the cash flow statement matches the cash and cash equivalents item on the balance sheet. The total comprises EUR 392 thousand (2023: EUR 407 thousand) in cash in hand, EUR 5,661,171 thousand (2023: EUR 5,109,326 thousand) in cash balances at banks, and EUR 59,035 thousand (2023: EUR 39,803 thousand) in marketable securities with maturities of no more than three months at the time of acquisition. Cash and cash equivalents in the amount of EUR 279,026 thousand are subject to restrictions (2023: EUR 350,612 thousand).

All non-cash income and expense and all income from asset disposals or arising on deconsolidation is eliminated in cash flow from operating activities.

Divestments relate to the deconsolidation of fully consolidated subsidiaries. This reduced non-current assets by EUR 0 thousand (2023: EUR 53,902 thousand) and current assets by EUR 17,901 thousand (2023: EUR 9,306 thousand). Non-current liabilities decreased by EUR 0 thousand (2023: EUR 56,705 thousand) and current liabilities by EUR 26,118 thousand (2023: EUR 614 thousand). No sale proceeds were generated either in 2024 or in the prior year.

Dividends of EUR 330,939 thousand (2023: EUR 300,755 thousand) were paid to HOCHTIEF's shareholders in the reporting year. Dividends paid to non-controlling interests total EUR 54,575 thousand (2023: EUR 80,423 thousand).

Liabilities from financing activities changed as follows:

Lease liabilities changed as follows:

37. Related party disclosures

Related parties as defined by IAS 24 include entities or persons that can be influenced by or that can influence HOCHTIEF Aktiengesellschaft and its subsidiaries or are subject to the control, joint control, or significant influence of HOCHTIEF Aktiengesellschaft or its subsidiaries. A significant related party is ACS, the parent company of HOCHTIEF Aktiengesellschaft. No material transactions were entered into between HOCHTIEF Aktiengesellschaft or any Group company and ACS or its affiliates during the reporting year. The main relationships between fully consolidated Group companies and related parties concern associated companies and joint ventures, whose operating transactions resulted in the following items in the financial statements:

	Associates		Joint ventures
(EUR thousand)	$\mathbf{2 0 2 4}$	2023	$\mathbf{2 0 2 4}$	2023
Income	23,863	20,035	130,624	167,131
Expenses	3,168	2,704	4,773	6,468
Receivables	7,296	8,273	381,918	513,664
Liabilities	52,665	299,592	234,412	487,892

No other material transactions were entered into between HOCHTIEF Aktiengesellschaft or any Group company and Executive Board or Supervisory Board members or persons or companies close to them during the reporting period. There were no conflicts of interest involving Executive Board or Supervisory Board members.

38. Total Executive Board and Supervisory Board compensation

The Compensation Report outlines the principles applied when determining Executive Board compensation at HOCHTIEF Aktiengesellschaft and explains the amount and composition of that compensation. The principles applied and the amount of Supervisory Board compensation are also described.

Short-term and long-term benefits

The expense for short-term and for long-term Executive Board compensation in 2024 was EUR 5,546 thousand (2023: EUR 5,511 thousand) and EUR 2,722 thousand (2023: EUR 2,746 thousand), respectively.

Post-employment benefits

In the reporting year, pension expenses for incumbent members of the Executive Board comprised service cost of EUR 431 thousand (2023: EUR 748 thousand) and pension payments of EUR 358 thousand (2023: EUR 307 thousand) in accordance with IFRS.

Share-based payment

The expense for share-based payment in 2024 was EUR 2,365 thousand (2023: EUR 2,456 thousand).

Total Executive Board and Supervisory Board compensation pursuant to Section 314 (1) No. 6 in conjunction with Section 315e HGB

Total compensation for incumbent members of the Executive Board in 2024 came to EUR 11,348 thousand (2023: EUR 11,310 thousand).

Total Executive Board compensation includes share-based payment granted in the reporting year with a fair value of EUR 2,722 thousand (2023: EUR 2,746 thousand). The corresponding number of performance stock awards (PSAs) granted for 2024 will only be determined in the following financial year (2023: 15,511 PSAs).

Payments in the amount of EUR 6,244 thousand (2023: EUR 6,759 thousand) were made to former members of the Executive Board and their surviving dependents. Pension obligations to former members of the Executive Board and their surviving dependents in accordance with IFRS totaled EUR 83,227 thousand (2023: EUR 82.212 thousand).

Total compensation for fixed compensation, meeting attendance fees, and compensation for offices held at Group companies for the members of the Supervisory Board came to EUR 2.231 thousand (2023: EUR 2,322 thousand).

No advances or loans were granted to members of the Executive Board or members of the Supervisory Board in 2024 or in 2023.

39. Auditing fees

Fees for services provided in Germany by auditors Deloitte GmbH Wirtschaftsprüfungsgesellschaft were paid and recognized as expenses as follows:

(EUR thousand)	2024	2023
Financial statement audit services	2,162	2,079
Other assurance services	470	174
	2,632	2,253

Deloitte GmbH Wirtschaftsprüfungsgesellschaft have been the auditors of HOCHTIEF Aktiengesellschaft since financial year 2023.

The fees for financial statement audits relate to fees charged by Group auditors Deloitte GmbH Wirtschaftsprüfungsgesellschaft for auditing the HOCHTIEF Group consolidated financial statements, the combined HOCHTIEF Group and HOCHTIEF Aktiengesellschaft management report, and the financial statements of HOCHTIEF Aktiengesellschaft and its domestic subsidiaries, together with fees for the review of the half-year report as of June 30, 2024 and other financial statement audit services. The auditors provided other assurance services for HOCHTIEF Aktiengesellschaft mainly in relation to agreed-upon procedures in accordance with ISAE 3000 in connection with the audit of the sustainability statement and the audit of the compensation report. Further other assurance services relate to services pursuant to German auditing standard IDW PS 910, and an audit under Section 32 (1) of the German Securities Trading Act (WpHG).

40. Events since the balance sheet date and report on post-balance-sheet events

Dornan Engineering

On July 24, 2024, our subsidiary The Turner Corporation, Wilmington, USA ("Turner") signed an agreement to acquire 100 percent of the shares in Dornan Engineering, Cork, Ireland ("Dornan"). Dornan is an engineering company with offices in Ireland, the UK, continental Europe and the Nordic countries, and provides services for complex large-scale projects for clients primarily in the high-tech sector. The closing of the acquisition took place after the balance sheet date on January 7, 2025. From this date, Turner exercises control over Dornan in accordance with IFRS 10 and the acquisition will be accounted for in accordance with IFRS 3 in 2025. It is expected to conclude the purchase price allocation within 12 months of the acquisition. The valuations are carried out by independent experts.

The agreed total purchase consideration is EUR 410 million, which was paid in cash at the time of acquisition on January 7, 2025. The purchase is not subject to any further contingent consideration.

As the closing of the transaction took place on January 7, 2025, the value of assets, liabilities, goodwill and intangibles is not yet available. The acquisition has no impact on the consolidated revenue of the HOCHTIEF Group in 2024. Dornan will be included in the HOCHTIEF consolidated financial statements 2025 on a fully consolidated basis.

The goodwill is attributable to Dornan's expertise and future market opportunities in Europe. Together with Dornan and using the Group's existing local capacities, Turner intends to offer its clients in Europe complete turnkey solutions and thus accelerate its strategic growth in Europe. In this context, Turner will implement its low-risk construction management business model in the fast-growing high-tech market.

The transaction costs incurred in 2024 in connection with the acquisition amounted to EUR 2.7 million and were recognized as an expense in the income statement in "other operating expenses".
41. Use of the exempting provisions in Section 264 (3) (and Section 264b) of the German Commercial Code The following German domestic, fully consolidated subsidiaries made partial use of the exempting provisions in 2024:

Deutsche Baumanagement GmbH, Essen,
Deutsche Bau- und Siedlungs-Gesellschaft mbH, Essen,
EDGITAL GmbH, Herne,
HOCHTIEF Americas GmbH, Essen,
HOCHTIEF Asia Pacific GmbH, Essen,
HOCHTIEF Bau und Betrieb GmbH, Essen,
HOCHTIEF Bau und Betrieb II GmbH, Essen,
HOCHTIEF BePo Hessen Bewirtschaftung GmbH, Essen,
HOCHTIEF BePo Hessen GmbH, Essen,
HOCHTIEF Data Center Partner GmbH, Essen,
HOCHTIEF Engineering GmbH, Essen,
HOCHTIEF Europe GmbH, Essen,
HOCHTIEF GC Beteiligungsgesellschaft mbH, Essen,
HOCHTIEF Infrastructure GmbH, Essen,
HOCHTIEF Insurance Broking and Risk Management Solutions GmbH, Essen,
HOCHTIEF JZF GmbH, Essen,
HOCHTIEF Labore Kassel GmbH, Essen,
HOCHTIEF Ladepartner GmbH, Essen,
HOCHTIEF Offshore Crewing GmbH, Essen,
HOCHTIEF ÖPP Projektgesellschaft mbH, Essen,
HOCHTIEF PPP Lifecycle 1 GmbH, Essen,
HOCHTIEF PPP Operations GmbH, Essen,
HOCHTIEF PPP Schulpartner Braunschweig GmbH, Braunschweig,
HOCHTIEF PPP Solutions GmbH, Essen,
HOCHTIEF PPP Transport Westeuropa GmbH, Essen,
HOCHTIEF Projektentwicklung GmbH, Essen,
HOCHTIEF Solarpartner GmbH, Essen,
HOCHTIEF Solutions Real Estate GmbH, Essen,
HOCHTIEF Soziale Infrastruktur Europa GmbH, Essen,
HOCHTIEF ViCon GmbH, Essen,
HTP Immo GmbH, Essen,
NEXPLORE Technology Holding GmbH \& Co. KG, Essen,
Projektgesellschaft Herne mbH, Essen,
Projektgesellschaft Konrad-Adenauer-Ufer Köln GmbH \& Co. KG, Essen,
synexs GmbH, Essen,
TRINAC GmbH, Essen,
ViA6West Service GmbH, Bad Rappenau.

42. Subsidiaries, associates, and other significant participating interests of the HOCHTIEF Group at December 31, 2023

The complete list of subsidiaries in accordance with the requirements of Section 313 of the German Commercial Code is published in the Unternehmensregister (Company Register) as well as on our website: www.hochtief.com/subsidiaries2023.

Fully consolidated companies

Name	Domicile	Country	Percentage stock held
Segment Turner
Turner Surety \& Insurance Brokerage Inc.	New Jersey	USA	100
Trans Hudson Brokerage LLC	Delaware	USA	100
TSIB Cell 1 IC	Vermont	USA	100
TSIB Re Inc.	Vermont	USA	100
The Turner Corporation	Wilmington	USA	100
1519531 Alberta Ltd.	Alberta	Canada	100
66 Hudson Security Services LLC	New York City	USA	100
Auburndale Company Inc.	Toledo	USA	100
Canadian Borealis Construction Inc.	Calgary	Canada	100
Canadian Borealis Holdings Inc.	Calgary	Canada	100
Canadian Turner Construction Company Ltd.	Toronto	Canada	100
CB Employees Corporation	Alberta	Canada	100
CB Partners Corporation	Alberta	Canada	100
CB Resources Corporation	Calgary	Canada	100
Clark Builders (British Columbia) Inc.	Calgary	Canada	100
Clark Builders Inc.	Alberta	Canada	100
Clark Builders (Manitoba) Inc.	Calgary	Canada	100
Clark Builders Partnership	Calgary	Canada	100
Discovery Builders JV	Ohio	USA	70
Frontier Employees Inc.	Calgary	Canada	100
Lakeside Alliance	Chicago	USA	49
Lathrop Ozarme JV	Toledo	USA	77
Maple Red Insurance Company	Burlington	USA	100
Real PM Ltd.	London	United Kingdom	100
SourceBlue Canada Ltd.	Toronto	Canada	100
SourceBlue LLC	Wilmington	USA	100
Stratus Risk Management Associates Inc.	Saddle Brook	USA	100
The Lathrop Company Inc.	Toledo	USA	100
The Turner Construction Company Foundation	New York	USA	100
The Turner Construction Company Foundation I LLC	Illinois	USA	100
Tompkins Builders Inc.	Washington D.C.	USA	100
TUJV	Atlanta	USA	80
Turner AECOM-Hunt NFL JV	Inglewood	USA	50
Turner Alpha Ltd.		Trinidad and Tobago	70
Turner Azteca JV	Dallas	USA	85
Turner Byrne Straight Line JV	San Antonio	USA	60
Turner Canada Holdings Inc.	New Brunswick	Canada	100
Turner Canada LLC	New York City	USA	100
Turner Carcon Source JV	Dallas	USA	51
Turner Carcon TM Source JV	Dallas	USA	51
Turner Clayco Memorial Stadium JV	Chicago	USA	50
Turner Clayco Witts Tower JV (Witts Tower)	Chicago	USA	51
Turner Construction and Infrastructure Spain S.L.U.	Madrid	Spain	100
Turner Construction Company	New York City	USA	100
Turner Construction Company of Ohio LLC	Columbus	USA	100
Turner Consulting and Management Services Pvt. Ltd.	Mumbai	India	100
Turner Consulting (Thailand) Ltd.	Bangkok	Thailand	49
Turner Coneric Sullland and HS Complex Replacement	Reston	USA	76
Turner-DA Everett JV	Charlotte	USA	80
Turner - d'Escoto-Brwon \& Momen-Cullen JV	Chicago	USA	50
Turner-d'Escoto-Powers \& Sons-Cullen JV	Chicago	USA	58
Turner (East Asia) Pte. Ltd.	Singapore	Singapore	100

Name	Domicile	Country	Percentage stock held
Turner Empowercom CYS13 JV	Wyoming	USA	85
Turner - Flatiron JV	Denver	USA	100
Turner-Flatiron JV	San Diego	USA	100
Turner FS360	Atlanta	USA	70
Turner FS360 III JV	Atlanta	USA	65
Turner FS360 II JV	Atlanta	USA	80
Turner FS360 IV JV	Atlanta	USA	70
Turner Holt JV	Charlotte	USA	80
Turner ImbuTec	Pittsburgh	USA	75
Turner ImbuTec II	Pittsburgh	USA	85
Turner International Consulting (Thailand) Ltd.	Bangkok	Thailand	49
Turner International Industries Inc.	Wilmington	USA	100
Turner International LLC	Wilmington	USA	100
Turner International Malaysia Sdn. Bhd.	Kuala Lumpur	Malaysia	100
Turner International Professional Services Ltd. (Ireland)	Dublin	Ireland	100
Turner International Professional Services S. de R.L. de C.V.	Mexico City	Mexico	100
Turner International Proje Yonetimi Ltd. Stl.	Istanbul	Turkey	100
Turner International Pte. Ltd.	Singapore	Singapore	100
Turner International Support Services S. de R.L. de C.V.	Mexico City	Mexico	100
Turner International (UK) Ltd.	London	United Kingdom	100
Turner-Janey III JV	Boston	USA	65
Turner - Janey II JV	Boston	USA	65
Turner/Janey/J&J JV	Boston	USA	60
Turner - Janey JV	Boston	USA	70
Turner - J&J JV	Massachusetts	USA	70
Turner KAI Offices at Overlook Core and Shell JV	Missouri	USA	70
Turner-Kiewit JV	Orlando	USA	80
Turner-Mahogany JHU Hennetta Lacks JV	Baltimore	USA	55
Turner Mahogany UMMC STC Renewal III JV	Baltimore	USA	64
Turner Management Consulting (Shanghai) Co. Ltd.	Shanghai	China	100
Turner-Martin Harris JV	Las Vegas	USA	65
Turner-McKissack JV	New York City	USA	60
Turner-One Way	Boston	USA	80
Turner One Way II	Boston	USA	75
Turner Partnership Holdings Inc.	New Brunswick	Canada	100
Turner Paschen Aviation Partners JV II	Chicago	USA	51
Turner - PCG 89 Elm	Maine	USA	51
Turner-PCL-Flatiron JV	San Diego	USA	57
Turner-PCL JV	Los Angeles	USA	50
Turner - Powers \& Sons JV	Chicago	USA	75
Turner Project Management India Pvt. Ltd.	Mumbai	India	100
Turner Promethean JV	San Antonio	USA	75
Turner-Russell JV	Georgia	USA	75
Turner SanoRubin JV	Albany	USA	51
TURNERSIRQ	Utah	USA	80
Turner Southeast Europe d.o.o Beograd	Belgrade	Serbia	100
Turner TEC JV	San Diego	USA	80
Turner TWC JV	West Des Moines	USA	90
Turner Vietnam Co. Ltd.	Ho Chi Minh	Vietnam	100
Turner Watson JV	Philadelphia	USA	60
TWF Builders JV	Memphis	USA	68
Universal Construction Company Inc.	Huntsville	USA	100
Name	Domicile	Country	Percentage stock held
Segment CIMIC
CIMIC Group Ltd.	Sydney	Australia	100
512 Wickham Street Pty. Ltd.	Sydney	Australia	100
512 Wickham Street Trust	Sydney	Australia	100
A.C.N. 126130738 Pty. Ltd.	Sydney	Australia	100
A.C.N. 151868601 Pty. Ltd.	Sydney	Australia	100
Alliance Contracting Pty. Ltd.	Perth	Australia	60
Alloy Fab Pty. Ltd.	Sydney	Australia	100
Arus Tenang Sdn. Bhd.	Kuala Lumpur	Malaysia	100

Name	Domicile	Country	Percentage stock held
Ausinds Holdings Pte. Ltd.	Singapore	Singapore	60
BCJHG Nominees Pty. Ltd.	Sydney	Australia	100
BCJHG Trust	Sydney	Australia	100
Bintai - Leighton JV	Singapore	Singapore	100
Broad Construction Pty. Ltd.	Sydney	Australia	100
Broad Construction Services (NSW/VIC) Pty. Ltd.	Sydney	Australia	100
Broad Construction Services (WA) Pty. Ltd.	Sydney	Australia	100
Broad Group Holdings Pty. Ltd.	Sydney	Australia	100
CGI3 Pty. Ltd.	Sydney	Australia	100
CGI4 Holdings Pty. Ltd.	Sydney	Australia	100
CG Investments 4 Pty. Ltd.	Sydney	Australia	100
CIMIC Admin Services Pty. Ltd.	Sydney	Australia	100
CIMIC Energy Pty. Ltd.	Sydney	Australia	100
CIMIC Finance Ltd.	Sydney	Australia	100
CIMIC Finance (USA) Pty. Ltd.	Sydney	Australia	100
CIMIC Group Investments No. 2 Pty. Ltd.	Sydney	Australia	100
CIMIC Group Investments Pty. Ltd.	Sydney	Australia	100
CIMIC Residential Investments Pty. Ltd.	Sydney	Australia	100
CMENA Pty. Ltd.	Sydney	Australia	100
Cobbora Solar Farm Pty. Ltd.	Sydney	Australia	100
Cobbora Solar Farm Trust	Sydney	Australia	100
Cobbora Solar Holdings Pty. Ltd.	Sydney	Australia	100
Cobbora Solar Mid Pty. Ltd.	Sydney	Australia	100
Cobbora Solar Mid Trust	Sydney	Australia	100
CPB Contractors (Australia) Pty. Ltd.	Sydney	Australia	100
CPB Contractors (PNG) Ltd.	Port Monestoy	Papua New Guinea	100
CPB Contractors Pty. Ltd.	Sydney	Australia	100
CPB Contractors Pty. Ltd. \& UGL Engineering Pty. Ltd.	Sydney	Australia	100
CPB Contractors (Queensland) Pty. Ltd.	Sydney	Australia	100
CPB Contractors UGL Engineering JV	Melbourne	Australia	100
CPB Contractors (Victoria) Pty. Ltd.	Sydney	Australia	100
CPB Projects Pty. Ltd.	Sydney	Australia	100
Curara Pty. Ltd.	Sydney	Australia	100
Dais Vic Pty. Ltd.	Sydney	Australia	100
Devine Constructions Pty. Ltd.	Hamilton	Australia	100
Devine Funds Pty. Ltd.	Hamilton	Australia	100
Devine Funds Unit Trust	Springwood	Australia	100
Devine Homes Pty. Ltd.	Hamilton	Australia	100
Devine Land Pty. Ltd.	Hamilton	Australia	100
Devine Management Services Pty. Ltd.	Hamilton	Australia	100
Devine Pty. Ltd.	Hamilton	Australia	100
Devine Springwood No. 2 Pty. Ltd.	Hamilton	Australia	100
D.M.B. Pty. Ltd.	Hamilton	Australia	100
Ecco Engineering Company Ltd.	Hong Kong	Hong Kong	100
EIC Activities Pty. Ltd.	Sydney	Australia	100
EIC Activities Pty. Ltd. (NZ)	Auckland	New Zealand	100
Fleetco Canada Rentals Ltd.	Vancouver	Canada	60
Fleetco Chile S.p.a.	Santiago de Chile	Chile	60
Fleetco Holdings Pty. Ltd.	Melbourne	Australia	60
Fleetco Management Pty. Ltd.	Melbourne	Australia	60
Fleetco Rentals 2017 Pty. Ltd.	Melbourne	Australia	60
Fleetco Rentals Blue Pty. Ltd.	Brisbane	Australia	60
Fleetco Rentals CT Pty. Ltd.	Melbourne	Australia	60
Fleetco Rentals DLL Pty. Ltd.	Brisbane	Australia	60
Fleetco Rentals Enzo Pty. Ltd.	Brisbane	Australia	60
Fleetco Rentals Jaml Pty. Ltd.	Brisbane	Australia	60
Fleetco Rentals KA Pty. Ltd.	Brisbane	Australia	60
Fleetco Rentals Lanz Pty. Ltd.	Brisbane	Australia	60
Fleetco Rentals LA Pty. Ltd.	Brisbane	Australia	60
Fleetco Rentals Rentals LUS Inc.	Delaware	USA	60
Fleetco Rentals Magni Pty. Ltd.	Brisbane	Australia	60
Fleetco Rentals MA Pty. Ltd.	Brisbane	Australia	60
Fleetco Rentals MEF Pty. Ltd.	Brisbane	Australia	60

Name	Domicile	Country	Percentage stock held
Fleetco Rentals NA Pty. Ltd.	Brisbane	Australia	60
Fleetco Rentals Omega Pty. Ltd.	Melbourne	Australia	60
Fleetco Rentals Pty. Ltd.	Melbourne	Australia	60
Giddens Investment Ltd.	Hong Kong	Hong Kong	100
Hamilton Harbour Developments Pty. Ltd.	Sydney	Australia	100
Hamilton Harbour Unit Trust (Devine Hamilton Unit Trust)	Hamilton	Australia	100
Hopeland Solar Farm Pty. Ltd.	Sydney	Australia	100
Hopeland Solar Farm Trust	Sydney	Australia	100
Hopeland Solar Holdings Pty. Ltd.	Sydney	Australia	100
Hunter Valley Earthmoving Co. Pty. Ltd.	Brisbane	Australia	60
HWE Mining Pty. Ltd.	Brisbane	Australia	60
ICC Infrastructure Pty. Ltd.	Sydney	Australia	100
ICC Mining Pty. Ltd.	Sydney	Australia	100
IDD Tech Pty. Ltd.	Sydney	Australia	100
Industrial Composites Engineering Pty. Ltd.	Sydney	Australia	100
Innovated Asset Solutions Pty. Ltd. \& UGL Operations and Maintenance (Services) Pty. Ltd.	Perth	Australia	100
Innovative Asset Solutions Group Pty. Ltd.	Sydney	Australia	100
Innovative Asset Solutions Pty. Ltd.	Sydney	Australia	100
Interquip Construction Pty. Ltd.	Albany	Australia	36
Interquip Pty. Ltd.	Albany	Australia	36
Jet-Cut Pty. Ltd.	Sydney	Australia	100
JHAS Pty. Ltd.	Sydney	Australia	100
JHI Investment Pty. Ltd.	Sydney	Australia	100
JH ServicesCo Pty. Ltd.	Sydney	Australia	100
Kings Square Developments Pty. Ltd.	Sydney	Australia	100
Kings Square Developments Unit Trust	Sydney	Australia	100
Leakes RD DC Holdings Pty. Ltd.	Sydney	Australia	100
Leakes RD DC Mid Pty. Ltd.	Sydney	Australia	100
Leakes RD DC Mid Trust	Sydney	Australia	100
Leakes RD DC Pty. Ltd.	Sydney	Australia	100
Leakes RD DC Trust	Sydney	Australia	100
Legacy JHI Pty. Ltd.	Sydney	Australia	100
Leighton Asia (Hong Kong) Holdings (No. 2) Ltd.	Hong Kong	Hong Kong	100
Leighton Asia Ltd.	Hong Kong	Hong Kong	100
Leighton Asia Philippines Inc.	Makati City	Philippines	100
Leighton Asia Southern Pte. Ltd.	Singapore	Singapore	100
Leighton Contractors (Asia) Ltd.	Hong Kong	Hong Kong	100
Leighton Contractors Inc.	Sebastopol	USA	100
Leighton Contractors (Indo-China) Ltd.	Hong Kong	Hong Kong	100
Leighton Contractors Infrastructure Nominees Pty. Ltd.	Sydney	Australia	100
Leighton Contractors Infrastructure Pty. Ltd.	Sydney	Australia	100
Leighton Contractors Infrastructure Trust	Chatswood	Australia	100
Leighton Contractors Lanka (Privato) Ltd.	Colombo	Sri Lanka	100
Leighton Contractors (Laos) Sole Co. Ltd.	Vientiane	Laos	100
Leighton Contractors (Malaysia) Sdn. Bhd.	Kuala Lumpur	Malaysia	100
Leighton Contractors (Mechanical \& Engineering) Pte. Ltd.	Singapore	Singapore	100
Leighton Contractors (Philippines) Inc.	Taguig City	Philippines	40
Leighton Contractors Pty. Ltd.	Sydney	Australia	100
Leighton Engineering Sdn. Bhd.	Kuala Lumpur	Malaysia	100
Leighton Foundation Engineering (Asia) Ltd.	Hong Kong	Hong Kong	100
Leighton Group Property Services Pty. Ltd.	Sydney	Australia	100
Leighton Harbour Trust	Sydney	Australia	100
Leighton Holdings Infrastructure Nominees Pty. Ltd.	Sydney	Australia	100
Leighton Holdings Infrastructure Pty. Ltd.	Sydney	Australia	100
Leighton Holdings Infrastructure Trust	Sydney	Australia	100
Leighton India Contractors Pvt. Ltd.	Mumbai	India	100
Leighton India Holdings Pte. Ltd.	Singapore	Singapore	100
Leighton Infrastructure Investments Pty. Ltd.	Sydney	Australia	100
Leighton Infrastructure Limited	Hong Kong	Hong Kong	100
Leighton International Mauritius Holdings Ltd. No. 4	Port Louis	Mauritius	100
Leighton Investments Mauritius Ltd. No. 4	Port Louis	Mauritius	100
Leighton JV	Hong Kong	Hong Kong	100

Name	Domicile	Country	Percentage stock held
Leighton Offshore Eclipse Pte. Ltd.	Singapore	Singapore	100
Leighton Offshore Pte. Ltd.	Singapore	Singapore	100
Leighton Offshore Sdn. Bhd.	Kuala Lumpur	Malaysia	100
Leighton Offshore Stealth Pte. Ltd.	Singapore	Singapore	100
Leighton (PNG) Ltd.	Port Moresby	Papua New Guinea	100
Leighton Portfolio Services Pty. Ltd.	Sydney	Australia	100
Leighton Projects Consulting (Shanghai) Ltd.	Shanghai	China	100
Leighton Properties (Brisbane) Pty. Ltd.	Sydney	Australia	100
Leighton Properties Pty. Ltd.	Sydney	Australia	100
Leighton Properties (VIC) Pty. Ltd.	Sydney	Australia	100
Leighton Properties (WA) Pty. Ltd.	Sydney	Australia	100
Leighton South East Asia Pty. Ltd.	Sydney	Australia	100
Leighton Superannuation Pty. Ltd.	Sydney	Australia	100
Leighton U.S.A. Inc.	Sebastopol	USA	100
Leighton Yongnam JV	Singapore	Singapore	100
LH Holdings Co. Pty. Ltd.	Sydney	Australia	100
LH Holdings No. 2 Pty. Ltd.	Sydney	Australia	100
LH Holdings No. 3 Pte. Ltd.	Singapore	Singapore	100
LMENA Pty. Ltd.	Sydney	Australia	100
LNWR Pty. Ltd.	Sydney	Australia	100
LNWR Trust	Sydney	Australia	100
Logistic Engineering Services Pty. Ltd.	Weinbee	Australia	100
MACA Civil Pty. Ltd.	Perth	Australia	60
MACA Crushing Pty. Ltd.	Perth	Australia	60
MACA Infrastructure Pty. Ltd.	Perth	Australia	60
MACA Ltd.	Welshpool	Australia	60
MACA Mineracao e Centrucao Civil Ltda.	Rio de Janeiro	Brazil	60
MACA Mining Pty. Ltd.	Perth	Australia	60
MACA Plant Leasing CA Pty. Ltd.	Welshpool	Australia	60
MACA Plant Leasing MA Pty. Ltd.	Welshpool	Australia	60
MACA Plant Pty. Ltd.	Perth	Australia	60
MACA Resources Pty. Ltd.	Perth	Australia	60
Marniyans Mining \& Civils Pty. Ltd.	Perth	Australia	30
Maverick United Sdn. Bhd.	Kuala Lumpur	Malaysia	100
Mintrex Pty. Ltd.	Perth	Australia	36
MIQ Engineering Pty. Ltd.	Albany	Australia	36
Network Rezolution Finance Pty. Ltd.	Sydney	Australia	100
Nexus Point Solutions Pty. Ltd.	Sydney	Australia	100
Oil Sands Employment Ltd.	Vancouver	Canada	60
Opal Insurance (Singapore) Pte. Ltd.	Singapore	Singapore	100
OPMS Cambodia Co Ltd.	Phnom Penh	Cambodia	60
Optima Activities Pty. Ltd.	Sydney	Australia	100
Pacific Partnerships Digital Pty. Ltd.	Sydney	Australia	100
Pacific Partnerships Energy 2 Pty. Ltd.	Sydney	Australia	100
Pacific Partnerships Energy Pty. Ltd.	Sydney	Australia	100
Pacific Partnerships Holdings Pty. Ltd.	Sydney	Australia	100
Pacific Partnerships Investments 2 Pty. Ltd.	Sydney	Australia	100
Pacific Partnerships Investments 2 Trust	Sydney	Australia	100
Pacific Partnerships Investments Pty. Ltd.	Sydney	Australia	100
Pacific Partnerships Investments Trust	Sydney	Australia	100
Pacific Partnerships Pty. Ltd.	Sydney	Australia	100
Pacific Partnerships Services NZ Ltd.	Auckland	New Zealand	100
Pacific Partnerships PH Finance Pty. Ltd.	Sydney	Australia	100
Pekko Engineers Ltd.	Hong Kong	Hong Kong	100
Pioneer Homes Australia Pty. Ltd.	Hamilton	Australia	100
Ports \& Co Pty. Ltd.	Pakenham	Australia	60
PT Leighton Contractors Indonesia	Jakarta	Indonesia	95
PT Thieos Contractors Indonesia	Jakarta	Indonesia	60
PT Thieos Engineering Indonesia	Jakarta	Indonesia	60
Pybar Holdings Pty. Ltd.	Orange	Australia	60
Pybar Mining Services Pty. Ltd.	Orange	Australia	60
Regional Trading Ltd.	Hong Kong	Hong Kong	100
Riverstone Rise Gladstone Pty. Ltd.	Hamilton	Australia	100

Name	Domicile	Country	Percentage stock held
Riverstone Rise Gladstone Unit Trust	Springwood	Australia	100
RTL Mining and Earthworks Pty. Ltd.	Yalloum	Australia	53
Sapphire Insurance Pte. Ltd.	Singapore	Singapore	60
Sedgman Asia Ltd.	Hong Kong	Hong Kong	100
Sedgman Botswana (Pty.) Ltd.	Gaborone	Botswana	100
Sedgman Canada Ltd.	Toronto	Canada	100
Sedgman Chile S.p.a.	Santiago de Chile	Chile	100
Sedgman Construction Pty. Ltd.	Brisbane	Australia	100
Sedgman Consulting Pty. Ltd.	Brisbane	Australia	100
Sedgman CPB JV (SCJV)	Brisbane	Australia	100
Sedgman Employment Services Pty. Ltd.	Brisbane	Australia	100
Sedgman Engineering Technology (Beijing) Co. Ltd.	Beijing	China	100
Sedgman International Employment Services Pty. Ltd.	Brisbane	Australia	100
Sedgman Labour Services Pty. Ltd.	South Bank	Australia	100
Sedgman Mozambique Ltda.	Maputo	Mozambique	100
Sedgmann MiniSol Pty. Ltd	Perth	Australia	100
Sedgman Novopro Projects Inc.	Montreal	Canada	100
Sedgman Onyx Pty. Ltd.	Brisbane	Australia	100
Sedgman Operations Employment Services Pty. Ltd.	Brisbane	Australia	100
Sedgman Operations Pty. Ltd.	Brisbane	Australia	100
Sedgman Projects Employment Services Pty. Ltd.	Brisbane	Australia	100
Sedgman Pty. Ltd.	Brisbane	Australia	100
Sedgman South Africa (Proprietary) Ltd.	Centurion	South Africa	100
Sedgman USA Inc.	Reno	USA	100
Sedgman Prudentia Holdings Pty Ltd.	Brisbane	Afghanistan	100
Sedgman Prudentia Pty. Ltd.	Brisbane	Australia	100
Segdman GmbH	Frankfurt	Germany	100
Sustaining Works Pty. Ltd.	Sydney	Australia	100
Talcdiff Pty. Ltd.	Hamilton	Australia	100
Tambala Pty. Ltd.	Port Louis	Mauritius	100
Telecommunication Infrastructure Pty. Ltd.	Sydney	Australia	100
Thai Leighton Ltd.	Bangkok	Thailand	49
Thiess Africa Investments (Pty.) Ltd.	Houghton	South Africa	60
Thiess Botswana (Proprietary) Ltd.	Gaborone	Botswana	60
Thiess Chile S.p.a.	Santiago de Chile	Chile	60
Thiess Contractors Canada Ltd.	Vancouver	Canada	60
Thiess Contractors (Malaysia) Sdn. Bhd.	Petaling Jaya	Malaysia	60
Thiess Group Finance Pty. Ltd.	Brisbane	Australia	60
Thiess Group Finance USA Pty. Ltd.	Brisbane	Australia	60
Thiess Group Holdings Pty. Ltd.	Brisbane	Australia	60
Thiess Group Investments Pty. Ltd.	Brisbane	Australia	60
Thiess India Pvt. Ltd.	Gurugram Haryana	India	60
Thiess Infrastructure Norninws Pty. Ltd.	Sydney	Australia	100
Thiess Infrastructure Pty. Ltd.	Sydney	Australia	100
Thiess Infrastructure Trust	Sydney	Australia	100
Thiess Khiehig Anvin JV LLC	Ulaanbaaier	Mongolia	48
Thiess (Mauritius) Pty. Ltd.	Port Louis	Mauritius	60
Thiess Midco Holdings Pty. Ltd.	Brisbane	Australia	60
Thiess Minecs India Pvt. Ltd.	Gurugram Haryana	India	54
Thiess Mining Canada Ltd.	Vancouver	Canada	60
Thiess Mining Maintenance Pty. Ltd.	South Bank	Australia	60
Thiess Mining USA Inc.	Holladay	USA	60
Thiess Mongolia Holdings Pte. Ltd.	Singapore	Singapore	60
Thiess Mongolia LLC	Ulaanbaaier	Mongolia	60
Thiess Mozambique Ltda.	Maputo Cidade	Mozambique	60
Thiess NZ Ltd.	Auckland	New Zealand	60
Thiess Pty. Ltd.	Brisbane	Australia	60
Thiess South Africa (Pty.) Ltd.	Houghton	South Africa	60
Thiess SQ Holdings Pty. Ltd.	Brisbane	Australia	60
Think Consulting Group Pty. Ltd.	Sydney	Australia	100
Townsville City Project Pty. Ltd.	Sydney	Australia	100
Townsville City Project Trust	Sydney	Australia	100
UGL (Asia) Sdn. Bhd.	Kuala Lumpur	Malaysia	100

Name	Domicile	Country	Percentage stock held
UGL Engineering Pty. Ltd.	Sydney	Australia	100
UGL Engineering Pvt. Ltd.	Maharashtra	India	100
UGL Integra Pty. Ltd.	Sydney	Australia	100
UGL (NZ) Ltd.	Auckland	New Zealand	100
UGL Operations and Maintenance Pty. Ltd.	Sydney	Australia	100
UGL Operations and Maintenance (Services) Pty. Ltd.	Sydney	Australia	100
UGL Pty. Ltd.	Sydney	Australia	100
UGL Rail (North Queensland) Pty. Ltd.	Sydney	Australia	100
UGL Rail Pty. Ltd.	Sydney	Australia	100
UGL Rail Services Pty. Ltd.	Sydney	Australia	100
UGL Regional Line Pty. Ltd.	Sydney	Australia	100
UGL Resources (Contracting) Pty. Ltd.	Sydney	Australia	100
UGL Resources (Malaysia) Shd. Bltd.	Petaling Jaya	Malaysia	100
UGL Solutions Pty. Ltd.	Sydney	Australia	100
UGL Unipart Rail Services Pty. Ltd.	Sydney	Australia	70
UGL Utilities Pty. Ltd.	Sydney	Australia	100
United Group Infrastructure (NZ) Ltd.	Auckland	New Zealand	100
United KG (No. 1) Pty. Ltd.	Sydney	Australia	100
United KG (No. 2) Pty. Ltd.	Sydney	Australia	100
Wai Ming M&E Ltd.	Hong Kong	Hong Kong	100
Wealth Mining Pty. Ltd.	Sydney	Australia	60
Western Port Highway Trust	Sydney	Australia	100
Wood Buffalo Employment Ltd.	Vancouver	Canada	60
Name	Domicile	Country	Percentage stock held
Segment Engineering and Construction
Deutsche Bau- und Siedlungs-Gesellschaft mbH	Essen	Germany	100
Deutsche Baumanagement GmbH	Essen	Germany	100
EDGITAL GmbH	Herne	Germany	100
HOCHTIEF (UK) Construction Ltd.	Swindon	United Kingdom	100
HOCHTIEF Bau und Betrieb GmbH	Essen	Germany	100
HOCHTIEF Bau und Betrieb II GmbH	Essen	Germany	100
HOCHTIEF BePo Hessen Bewirtschaftung GmbH	Essen	Germany	100
HOCHTIEF BePo Hessen GmbH	Essen	Germany	100
HOCHTIEF CZ a.s.	Prague	Czech Republic	100
HOCHTIEF Data Center Partner GmbH	Essen	Germany	100
HOCHTIEF Development Poland Sp. z o.o.	Warsaw	Poland	100
HOCHTIEF Engineering GmbH	Essen	Germany	100
HOCHTIEF Europe GmbH	Essen	Germany	100
HOCHTIEF Infrastructure GmbH	Essen	Germany	100
HOCHTIEF JZF GmbH	Essen	Germany	100
HOCHTIEF Labore Kassel GmbH	Essen	Germany	100
HOCHTIEF Ladepartner GmbH	Essen	Germany	100
HOCHTIEF Olfsbore Crewing GmbH	Essen	Germany	100
HOCHTIEF ÖPP Projektgesellschaft mbH	Essen	Germany	100
HOCHTIEF PPP Lifecycle 1 GmbH	Essen	Germany	100
HOCHTIEF PPP Operations GmbH	Essen	Germany	100
HOCHTIEF PPP Schulpartner Braunschweig GmbH	Brunswick	Germany	100
HOCHTIEF PPP Solutions GmbH	Essen	Germany	100
HOCHTIEF PPP Transport Westeuropa GmbH	Essen	Germany	100
HOCHTIEF Projektentwicklung GmbH	Essen	Germany	100
HOCHTIEF Solarpartner GmbH	Essen	Germany	100
HOCHTIEF Solutions Real Estate GmbH	Essen	Germany	100
HOCHTIEF Soziale Infrastruktur Europa GmbH	Essen	Germany	100
HOCHTIEF V/Con GmbH	Essen	Germany	100
HTP Immo GmbH	Essen	Germany	100
Project SP1 Sp. z o.o.	Warsaw	Poland	100
Projektgesellschaft Herne mbH	Essen	Germany	100
Projektgesellschaft Konrad-Adenauer-Ufer Köln GmbH \& Co. KG	Essen	Germany	100
synexa GmbH	Essen	Germany	100
TRINAC GmbH	Essen	Germany	100
ViAtWest Service GmbH	Bad Rappenau	Germany	100

Name	Domicile	Country	Percentage stock held
Flatiron Construction Corp.	Wilmington	USA	100
E.E. Cruz and Company Inc.	Holmdel	USA	100
FECO Equipment	Denver	USA	100
Flatiron-Blythe Development Company JV	Firestone	USA	70
Flatiron-Branch Civil JV	Broomfield	USA	60
Flatiron Constructors Canada Ltd.	Vancouver	Canada	100
Flatiron Constructors Inc.	Wilmington	USA	100
Flatiron Constructors Inc. - Blythe Development Company JV	Firestone	USA	60
Flatiron Constructors Inc. Canadian Branch	Vancouver	Canada	100
Flatiron Equipment Company Canada	Calgary	Canada	100
Flatiron Greening Canada Ltd.	Calgary	Canada	100
Flatiron Greeninge (DB) Canada Ltd.	Calgary	Canada	100
Flatiron-Skanska-Stacy and Witbec JV	San Marcos	USA	40
Flatiron/Turner Construction of New York LLC	New York City	USA	100
Flatiron West Inc.	Wilmington	USA	100
Name	Domicile	Country	Percentage stock held
Segment Corporate
Flatiron Holding Inc.	Wilmington	USA	100
HOCHTIEF Americas GmbH	Essen	Germany	100
HOCHTIEF Asia Pacific GmbH	Essen	Germany	100
HOCHTIEF Australia Holdings Ltd.	Sydney	Australia	100
HOCHTIEF Insurance Broking and Risk Management Solutions GmbH	Essen	Germany	100
HOCHTIEF USA Inc.	Delaware	USA	100
NEXPLORE Technology Holding GmbH \& Co. KG	Essen	Germany	100
Steinfort Multi-Asset Fund SiCAV-SIF	Luxembourg	Luxembourg	100
Stonefort Insurance Holdings S.A.	Steinfort	Luxembourg	100
Stonefort Insurance S.A.	Steinfort	Luxembourg	100
Stonefort Reinsurance S.A.	Luxembourg	Luxembourg	100

Interests in the following joint ventures are additionally consolidated on a proportionate basis:

Joint ventures

Name	Domicile	Country	Percentage stock held
Segment Turner
CGT Industrial	Calgary	Canada	33
Lendlease Turner	New York City	USA	50
Tishman-Turner JV I	New York City	USA	50
Turner/Plaza	New York City	USA	66
Segment CIMIC
Adelaide Metro Operations Pty. Ltd.	Sydney	Australia	50
Auckland One Rail Ltd.	Auckland	New Zealand	50
Australian Terminal Operations Management Pty. Ltd.	Melbourne	Australia	50
Canberra Metro Operations Pty. Ltd.	Canberra	Australia	50
CIP Holdings General Partner Ltd.	Wellington	New Zealand	40
CIP Project General Partner Ltd.	Wellington	New Zealand	40
Cocketos Mining Pty. Ltd.	Brisbane	Australia	30
Cornerstone Infrastructure Partners Holdings LP	Wellington	New Zealand	40
Cornerstone Infrastructure Partners LP	Wellington	New Zealand	40
Glenrowan Solar Farm Pty. Ltd.	Sydney	Australia	51
Glenrowan Solar Farm Trust	Sydney	Australia	51
Glenrowan Solar Finance Pty. Ltd.	Sydney	Australia	51
Glenrowan Solar Holdings Pty. Ltd.	Sydney	Australia	51
GSJV Guyana Inc.	Georgetown	Guyana	50
GSJV SCC	St. Michael	Barbados	50
IC Integrity Pty. Ltd.	Canning Vale	Australia	49
Kings Square No. 4 Unit Trust	Sydney	Australia	50
Kings Square Pty. Ltd.	Sydney	Australia	50
Majwe Mining JV Pty. Ltd.	Gaborone	Botswana	42
Mechatronix Pty. Ltd.	Brisbane	Australia	30

Name	Domicile	Country	Percentage stock held
Momentum Trains Holding Pty. Ltd.	Sydney	Australia	49
Momentum Trains Holding Trust	Sydney	Australia	49
Momentum Trains Pty. Ltd.	Sydney	Australia	49
Mpeet Pty. Ltd.	Sydney	Australia	50
Pulse Partnerships Pty. Ltd.	New South Wales	Australia	49
Pulse Partners Holding Pty. Ltd.	Milton	Australia	49
Pulse Partners Holding Trust	Milton	Australia	49
Pulse Partners Trust	Brisbane	Australia	49
Spark NEL DC Workforce Pty. Ltd.	Melbourne	Australia	33
U-Go Mobility Pty. Ltd.	Sydney	Australia	50
Wallan Project Pty. Ltd.	Hamilton	Australia	49
Wallan Project Trust	Hamilton	Australia	49
Segment Engineering and Construction
Aegean Motorway S.A.	Larissa	Greece	39
Dragados/Flatiron JV	Costa Mesa	USA	50
Dragados/Flatiron LLC	Wilmington	USA	50
E.E. Cruz/Nicholson LLC	Holmdel	USA	50
E.E. Cruz/Tully Construction LLC	Holmdel	USA	50
EWE Go HOCHTIEF Ladepartner Betriebsgesellschaft mbH \& Co. KG	Oldenburg	Germany	50
EWE Go HOCHTIEF Ladepartner Enrichiungs-ARGE GbR	Oldenburg	Germany	50
EWE Go HOCHTIEF Ladepartner GmbH \& Co. KG	Essen	Germany	50
FCI/Fluor/Parsons	La Mirada	USA	45
Flatiron/Kiewit JV	Longmont	USA	65
Flatiron-Zachry JV	Firestone	USA	55
Hellenic Fast Charging Service A.E.	Marousi	Greece	50
Hemertunnel Lübeck GmbH \& Co. KG	Lübeck	Germany	50
HKP Dahlemer Weg Objekt 1 tertius PE GmbH \& Co. KG	Essen	Germany	50
HKP Dahlemer Weg Objekt 2 ETW PE GmbH \& Co. KG	Essen	Germany	50
HOCHTIEF PANDION Oettingenstraße GmbH \& Co. KG	Essen	Germany	50
HOCHTIEF PIPP 1. Holding GmbH \& Co. KG	Essen	Germany	50
HTP PSP Ltd.	Swindon	United Kingdom	50
Kiewit/FCI/Manson	Oakland	USA	27
Kiewit/Flatiron General Partnership	Richmond	USA	28
LAX Integrated Express Solutions LLC	Wilmington	USA	18
Lusail HOCHTIEF Q.S.C.	Doha	Qatar	49
ÖPP Mauerstraße Berlin GmbH \& Co. oHG	Berlin	Germany	50
Palmetto Bridge Constructors	Virginia Beach	USA	40
PANSUEVIA Service GmbH \& Co. KG	Jettingen-Scheppach	Germany	50
PPAC GmbH \& Co. KG	Essen	Germany	46
SAAone Holding B.V.	Vianen	Netherlands	20
SAAone Maintenance B.V.	Vianen	Netherlands	35
Schools Public/Private Partnership (Ireland) Ltd.	Dublin	Ireland	50
Signature on the Saint Lawrence Construction G.P.	Montreal	Canada	25
Staffordshire Campus Living LLP	Swindon	United Kingdom	50
TOUGH Training GmbH	Würzburg	Germany	50
Tully Construction/E.E. Cruz LLC	New York City	USA	50
ViMiWest GmbH \& Co. KG	Essen	Germany	50
Via Solutions Nord Service GmbH \& Co. KG	Nützen	Germany	83
YEXIO Bad Lipsspringe GmbH \& Co. KG	Essen	Germany	25
YEXIO Heiligenhaus GmbH \& Co. KG	Heiligenhaus	Germany	25
Yorizon GmbH \& Co. KG	Freyung	Germany	50

Construction joint ventures included in the Consolidated Financial Statements are as follows:

Construction joint ventures

Name	Domicile	Country	Percentage stock held
Ait1 Tunnel Baulos 3.2.1 Ingenieurbau	Sindelfingen	Germany	50
Amalia Harbour - Civil Works Package	Amsteiveen	Netherlands	50
Amalia Harbour - General Works Package	Rotterdam	Netherlands	40
ARGE A7 Tunnel Altona	Hamburg	Germany	65
ARGE BALARGE A6 West	Heilbronn	Germany	60

Name	Domicile	Country	Percentage stock held
ARGE BMG Berlin	Berlin	Germany	50
ARGE Demontage Sicherheitsbeh, Krümmel	Geesthacht	Germany	38
ARGE Ersatzneubau K30	Hamburg	Germany	75
ARGE Ersatzneubau Salzgitterkai	Hamburg	Germany	60
ARGE Fuhle 101	Hamburg	Germany	50
ARGE Haus der Statistik	Berlin	Germany	50
ARGE Kanal Căcilankloster	Cologne	Germany	50
ARGE Kanalbau Hohe Pforte	Cologne	Germany	50
ARGE KKB Demontage Systeme MH	Brunsbüttel	Germany	50
ARGE KKB Sicherheitsbehälter	Brunsbüttel	Germany	33
ARGE Neubau EKZ Böblingen	Böblingen	Germany	80
ARGE RABS 1	Neckarwestheim	Germany	50
ARGE S-Bahn Berlin, S21 Neubau; VE02.2	Berlin	Germany	50
ARGE SBT 1.1 Tunnel Gloggmitz	Gloggmitz	Austria	40
ARGE Trianon Brandschutzsanierung, FFM	Frankfurt am Main	Germany	75
ARGE Tunnel Berkersklamm	Mörlenbach	Germany	80
ARGE Tunnel Rastatt	Ötigheim	Germany	50
ARGE U2/22 x U5/2 Rathaus/Frankplatz	Vienna	Austria	33
ARGE U-Bahn Nürnberg U3 SIN BA 2.2	Nuremberg	Germany	50
ARGE VE41 Hp Marienhof	Munich	Germany	50
ARGE VP12 Bahntechnik	Berlin	Germany	40
ARGE Vulcan Central Lithium Plant	Cologne	Germany	50
ARGE Vulcan Lithium Extraction Plant	Cologne	Germany	50
BAB A100, 16. Bauabschnitt	Berlin	Germany	50
Bau Blege BSI	Bonn	Germany	50
Bratislava - Rekordstrukcia NKP Rusovce	Bratislava	Slovakia	34
Bratislava - Údržba komunikácií BA II	Bratislava	Slovakia	40
Bratislava - Údržba komunikácií BA III	Bratislava	Slovakia	40
Brno - Kas. Černá pole - logistické cent	Brno	Czech Republic	55
Brno - Svatika PPO	Brno	Czech Republic	30
Citylink	Danderyd	Sweden	50
CRSH1 - Sydhavn	Copenhagen	Denmark	50
Data Centre Jawczyce	Jawczyce	Poland	60
Forth Road Bridge	Queenstlery	United Kingdom	28
London Power Tunnels Phase 2	London	United Kingdom	50
London Power Tunnels Phase 2 - Package 5	London	United Kingdom	50
Malakos Kleidi CJV (Umbrelia)	Itea-Gonnoi	Greece	40
Malakos Kleidi CJV (Sub-JV)	Itea-Gonnoi	Greece	67
Neubau Friedrich Loeffler Institut Jena	Jena	Germany	50
Olomouc - FN bud. B+urg. pfiJ, + koridor	Olomouc	Czech Republic	23
Olomouc - Horkovod I. etapa	Olomouc	Czech Republic	33
Ostrava - VŠB-TUO Nová budova EAF - pF.H	Ostrava	Czech Republic	50
Pardubice - I/36 Tmová-Fáblovka-Dubina	Pardubice	Czech Republic	50
Praha - Modernizace schodů -Karl.nám.	Prague	Czech Republic	60
Praha - Modernizace výtahu Karl. nám.	Prague	Czech Republic	55
Praha - Prodisuženi podchodủ Praha hl.n.	Prague	Czech Republic	50
Praha - Stanice Českomoravská rekonstru	Prague	Czech Republic	60
Praha 11 - Ener. úspě. Nad Opatovem 2140	Prague	Czech Republic	50
Praha 5 - Re. žs. Smíchov 2.at. apol.ob.	Prague	Czech Republic	33
Přáslavice - Výstavba sítí a komunikace	Přáslavice	Czech Republic	50
Project Phoenix (Jawczyca DC01)	Jawczyce	Poland	60
Šařa - Cesta I/75 - otcřovat	Šařa	Slovakia	60
Schiphol Amsterdam-Alinere (SAA) A1/A6	Diemen	Netherlands	35
Stuttgart 21 PFA 1. Los 3 Bad Cannstatt	Stuttgart	Germany	40
Tivdolín - Nižná - R3	Tivdolín - Nižná	Slovakia	80
V. Němčice - D2 Roz. odp. ZeleñákJVHT+MS	V.Němčice	Czech Republic	50
Valalky - Hrubé terénne úpravy území	Valalky	Slovakia	50
VIA15 (A12/A15)	Utrecht	Netherlands	25
VW Standard Factory Salzgitter	Salzgitter	Germany	50
WAW23 (DC01 office fit-out)	Jawczyce	Poland	60

The joint operations included in the Consolidated Financial Statements are as follows:

Joint operations

Name	Domicile	Country	Percentage stock held
Segment Turner
3CI-Turner JV	Urbana	USA	49
AECCM Turner NBA JV	Inglewood	USA	50
Alcala DC UTE	Alcalá de Henares	Spain	40
Barton Malow Turner Dixon JV	Detroit	USA	46
Bird-Clark Stanton JV	Northwest Territory	Canada	50
Central Street Consortium	Chicago	USA	60
Chicago Collaborative LLC	Illinois	USA	49
Clark/Scott JV	Calgary	Canada	50
Clark Turner Dawson Creek	Vancouver	Canada	100
Gilbane Turner JV	New York City	USA	50
GTBB JV	Albany	USA	55
Innovation Next +	Texas	USA	36
JE Dunn-Turner JV	Texas	USA	50
McKissack Turner LLC	Philadelphia	USA	49
Palmetto Tri-Venture	Charlotte	USA	49
Saturn Partner LLC	Columbus	USA	49
SourceBlue Del Alcala Ute	Alcalá de Henares	Spain	50
Structure Tone - Turner JV	New York City	USA	45
TAC JV	Memphis	USA	70
Tennessee Builders Alliance	Nashville	USA	48
TMP JV	Bridgewater	USA	60
Truland Partner	North Carolina	USA	49
Turner AECCM-Hunt JCIHOFV JV	Cleveland	USA	55
Turner Barringer JV	Raleigh	USA	50
Turner Barton Malow JV LLC	Detroit	USA	50
Turner Clayco JV	Chicago	USA	50
Turner EE Cruz JV	New York City	USA	100
Turner-Kokosing JV	Westerville	USA	60
Turner Lendlease JV	New York City	USA	50
Turner-McKissack JV II	New York City	USA	60
Turner-MCN St. Elizabeths New Hospital JV	Washington D.C.	USA	70
Turner Moistes JV	Pittsburgh	USA	70
Turner Paschen Aviation Partners	Chicago	USA	55
Turner Pike JV	Albany	USA	51
Turner Smoot JV Columbus Crew	Ohio	USA	70
Turner Smoot JV Hilton Columbus	Columbus	USA	70
Turner Source	Dallas	USA	75
Turner LUAMAA Atlanta Airport JV	Atlanta	USA	80
Turner-Walsh	Boston	USA	75
Turner-Walsh-Smoot JV	Columbus	USA	50
Turner-Yates-Kokosing LLC	Cincinnati	USA	33
Turner Yates Project Kansas JV	Kansas City	USA	50
Walsh/Turner JV	Columbus	USA	40
Walsh - Turner JV II	Frankfort	USA	45
Walsh-Turner JV III	Kentucky	USA	50
Weitz/Turner JV	Nashville	USA	49
Yates-Turner AWS JV	Tennessee	USA	50
Segment CIMIC
Acciona Construction Australia Pty. Ltd. \& CPB Contractors Pty. Ltd.	Sydney	Australia	50
Acciona Construction Australia Pty. Ltd. \& CPB Contractors Pty. Ltd. \& Ghells Pty. Ltd.	Melbourne	Australia	40
Acciona Infrastructure \& CPB Contractors JV	Sydney	Australia	50
Alfred Services Pty. Ltd. \& UGL Operations and Maintenance Pty. Ltd.	Perth	Australia	50
B.M.D. Constructions Pty. Ltd. \& CPB Contractors Pty. Ltd. \& Georgiou Group Pty. Ltd.	Fortitude Valley	Australia	40
CPB Bam Ghelia UGL JV	Sydney	Australia	54
CPB Black \& Veatch JV	Bundamba	Australia	50
CPB \& BMD JV	Brisbane	Australia	50
CPB Contractors \& Georgiou Group (Group ownership 50\%)	Sydney	Australia	50
CPB Contractors \& Georgiou Group (Group ownership 80\%)	Sydney	Australia	80
CPB Contractors Pty. Ltd. \& DT Infrastructure Pty. Ltd. (Group ownership 50\%)	Perth	Australia	50

Name	Domicile	Country	Percentage stock held
CPB Contractors Pty. Ltd. \& DT Infrastructure Pty. Ltd. (Group ownership 67\%)	Sydney	Australia	67
CPB Contractors Pty. Ltd. \& Ghella Pty. Ltd. JV	Sydney	Australia	75
CPB Contractors \& Spotless Facilities Services	Sydney	Australia	50
CPB Dragados Samsung JV	Sydney	Australia	40
CPB Ghella UGL JV	Sydney	Australia	78
CPB \& JHG JV	Sydney	Australia	50
CPB John Holland Dragados JV	Sydney	Australia	50
CPB Samsung John Holland JV	Sydney	Australia	33
CPB Seymour Whyte JV	Sydney	Australia	50
CPB Southbase JV	Christchurch	New Zealand	60
CPB \& United Infrastructure JV	Sydney	Australia	75
CPB Contractors Pty. Ltd. \& McConnell Dowell Constructors (Aust) Pty. Ltd.	Richmond	Australia	50
Downer EDI Works Pty. Ltd. \& CPB Contractors Pty. Ltd. (Parramatta Connect)	Sydney	Australia	50
EV LNG Australia Pty. Ltd. \& Thiess Pty. Ltd. (EVT JV)	Perth	Australia	30
First Balfour - Leighton JV	Paranaque	Philippines	40
Gammon - Leighton JV	Hong Kong	Hong Kong	50
GE Betz Pty. Ltd. \& Mcconnell Dowell Constructors (Aust) Pty. Ltd. \& United Group Infrastructure Pty. Ltd.	Sydney	Australia	50
Global Mission Support Alliance JV	Austin	USA	75
HYLC JV	Adelaide	Australia	50
IEC Boardwalk JV	Hong Kong	Hong Kong	34
JH \& CPB \& Ghella JV (Group ownership 45\%)	Melbourne	Australia	45
JH \& CPB \& Ghella JV (Group ownerhip 40\%)	Melbourne	Australia	40
John Holland and UGL Infrastructure	Sydney	Australia	50
John Holland Pty. Ltd. \& UGL Engineering Pty. Ltd. and GHD Pty. Ltd. Trading as Malabar Alliance	Malabar	Australia	50
Leighton Abigroup JV	Chatswood	Australia	50
Leighton - Able JV	Hong Kong	Hong Kong	51
Leighton - China State JV (BN 55223875-000)	Hong Kong	Hong Kong	51
Leighton - China State JV (BN 55653767-000)	Hong Kong	Hong Kong	51
Leighton China State JV (Wynn Resort)	Macau	Macau	50
Leighton - Chubb E\&M JV	Hong Kong	Hong Kong	50
Leighton - Chun Wo JV (BN 54933910-000)	Hong Kong	Hong Kong	84
Leighton - Chun Wo JV (BN 55478511-000)	Hong Kong	Hong Kong	60
Leighton - Chun Wo JV (BN 56113156-000)	Hong Kong	Hong Kong	70
Leighton - First Balfour JV	Taguig City	Philippines	50
Leighton - First Balfour JV	Taguig City	Philippines	65
Leighton Fulton Hogan JV (Sh16 Causeway Upgrade)	Auckland	New Zealand	50
Leighton - Gammon JV	Hong Kong	Hong Kong	50
Leighton - HEB JV	Freemans Bay	New Zealand	80
Leighton-Intra 13 JV	Gurgaon	India	50
Leighton John Holland JV	Singapore	Singapore	50
Leighton M\&E - Southa JV	Hong Kong	Hong Kong	50
Leighton-Ose JV	Delhi	India	50
Leighton - Total JO	Jakarta	Indonesia	67
Leighton York JV	Perth	Australia	75
LLECPB Crossing Removal JV	Chatswood	Australia	50
LS\&W JV HYD01	Mumbai	India	51
Manidia Roberts Pty. Ltd. \& MWH Australia Pty. Ltd. \& PB Australia Pty. Ltd. \& United Group Infrastructure Pty. Ltd.	Sydney	Australia	60
Metropolitan Road Improvement Alliance	Perth	Australia	71
Mitsubishi Electric Australia Pty. Ltd. \& Hyundai Rotem Company \& UGL Rail Services Pty. Ltd.	Sydney	Australia	17
Murray \& Roberts Marine Malaysia - Leighton Contractors Malaysia JV	Kuala Lumpur	Malaysia	50
NDH JV	Hong Kong	Hong Kong	55
NRT - Design \& Delivery JV	Sydney	Australia	50
NRT Systems JV	Sydney	Australia	40
N.V. Besix S.A. \& Thiess Pty. Ltd. (Best JV)	Perth	Australia	30
OWP JV (Opitus Wireless JV)	Chatswood	Australia	50
Parsons Brinckerhoff Australia Pty Ltd. \& RPS Manidia Roberts Pty. Ltd. \& Seymour Whyte Constructions Pty. Ltd. \& UGL Engineering Pty. Ltd.	Sydney	Australia	33
Rizzani CPB JV	Sydney	Australia	50
Spark NEL DC JV	Melbourne	Australia	28
T4 JV	Hong Kong	Hong Kong	55
Thiess Balfour Beatty JV	Melbourne	Australia	40
Thiess Degrennont JV	Melbourne	Australia	39
Thiess Degrennont Nacap JV	Melbourne	Australia	20

Name	Domicile	Country	Percentage stock held
Thiess John Holland JV (Airport Link)	Sydney	Australia	30
Thiess John Holland JV (Eastlink)	Sydney	Australia	30
Thiess KMC JV	Acheson	Australia	30
UGL Engineering Pty. Ltd. and ADCO Constructions Pty. Ltd. JV (Eastrail)	Perth	Australia	48
Veolia Water - Leighton - John Holland JV	Hong Kong	Hong Kong	24
WSO MT Stage 3 JV	Chatswood	Australia	50
WSP Australia Pty Limited \& UG Engineering Pty Ltd.	Sydney	Australia	50
Segment Engineering and Construction
Aecon-Flatiron-Dragados-EBC	Fort St. John	Canada	28
Branch Civil-Flatiron JV	Roanoke	USA	40
CF Constructors JV	New York City	USA	50
Dragados-VINCI-Flatiron-DCB	Hampton	USA	25
Flatiron/Aecom LLC	Broomfield	USA	70
Flatiron/Dragados/Sukut JV	Benicia	USA	35
Flatiron/Dragados/Sukut JV	Broomfield	USA	35
Flatiron Drill Tech	Broomfield	USA	50
Flatiron-Fred Smith Company 1	Broomfield	USA	87
Flatiron-Fred Smith Company 2	Broomfield	USA	67
Flatiron-Fred Smith Company JV	Broomfield	USA	67
Flatiron-Herzog	Broomfield	USA	60
Flatiron-Herzog JV	Concord	USA	60
Flatiron/Herzog JV	Morrisville	USA	60
Flatiron/Herzog MD	Morrisville	USA	60
Flatiron/Lane I-405	Renton	USA	60
Flatiron/Lane JV	Mobile	USA	60
Flatiron/LTS 1 JV	Concord	USA	50
Flatiron/LTS 2 JV	Chino	USA	50
Flatiron/Myers JV	Broomfield	USA	70
Flatiron/United JV	Broomfield	USA	67
Flusn/Balfour/Flatiron/Dragados	Greenville	USA	20
LINXG Operators	Wilmington	USA	13
Pulice / FNF / Flatiron JV	Scottedale	USA	30
Skaraska/Flatiron JV	Riverside	USA	45
Skaraska/Flatiron LBN JV	Morrisville	USA	35
Valley Transit Partners	Alameda	USA	40

The following associates are accounted for in the Consolidated Financial Statements using the equity method:

Associates

Name	Domicile	Country	Percentage stock held
Aberris HoldCo S.A.	Madrid	Spain	20
Blachant Turner JV LLC	Bridgewater	USA	50
Canberra Metro 2A Holding Trust	Canberra	Australia	75
Canberra Metro 2A Holdings Pty. Ltd.	Canberra	Australia	38
Canberra Metro 2A Pty. Ltd.	Canberra	Australia	38
Canberra Metro 2A Trust	Canberra	Australia	38
Canberra Metro Holdings Pty. Ltd.	Canberra	Australia	38
Canberra Metro Holdings Trust	Canberra	Australia	30
Canberra Metro Pty. Ltd.	Canberra	Australia	38
Canberra Metro Trust	Canberra	Australia	38
Cortex Interactive Pty. Ltd.	Adelaide	Australia	15
McKissack Turner Veloc LLC	New York City	USA	49
Metro Trains Australia Pty. Ltd.	Docklands	Australia	20
Metro Trains Melbourne Pty. Ltd.	Docklands	Australia	20
Metro Trains Sydney Pty. Ltd.	Sydney	Australia	20
Momentum Train Trust	Sydney	Australia	49
P.T. Ballast Indonesia Construction	Jakarta	Indonesia	47
Spark North East Link Holding Pty. Ltd.	Sydney	Australia	20
Spark North East Link Pty. Ltd.	Sydney	Australia	20
TMA JV III	Washington D.C.	USA	50
Torrens Connect Pty. Ltd.	Adelaide	Australia	23

Name	Domicile	Country	Percentage stock held
Trinity Alliance	Texas	USA	33
Turner/Devcon JV	Oakland	USA	60
Turner/STV JV	New York City	USA	50

43. Declaration pursuant to Section 161 of the German Stock Corporations Act

The declaration on corporate governance required by Section 161 of the German Stock Corporations Act (AktG) has been submitted on behalf of HOCHTIEF Aktiengesellschaft and made available for the general public to view at any time on the HOCHTIEF website at www.hochtief.com/about-hochtief/corporate-governance.

Essen, February 18, 2025
HOCHTIEF Aktiengesellschaft

The Executive Board

Juan Santamaría Cases

Ángel Muriel Bernal

Peter Sassenfeld

Martina Steffen

44. Boards

Supervisory Board

Pedro López Jiménez

Madrid, Chairman of the Supervisory Board of HOCHTIEF Aktiengesellschaft, Vice-Chairman of the Board of Directors of ACS, Actividades de Construcción y Servicios, S.A., Madrid
b) Abertis Infraestructuras, S.A.

ACS Servicios y Concesiones, S.L. (Chairman) ${ }^{1}$
CIMIC Group Limited ${ }^{1}$
Dragados, S.A. (Chairman) ${ }^{1}$

Nicole Simons*

Niddatal, Deputy Chairwoman of the Supervisory Board, Attorney-at-law and Member
of the Federal Board of IG Bauen-Agrar-Umwelt (the Construction, Agricultural and Environmental Employees' Union) (Deputy Federal Chairwoman)
a) SOKA-BAU Zusatzversorgungskasse des Baugewerbes AG

Zusatzversorgungskasse des Steinmetz- und Steinbildhauerhandwerks VVaG (ZVK Steinmetz) (alternating chairperson)
b) DGB-Rechtsschutz GmbH
facts - Die Infoline GmbH (Chairwoman)

Cristina Aldamiz-Echevarría González de Durana

Madrid, Director of Operations, Investees and Sustainability of ACS,
Actividades de Construcción y Servicios, S.A., Madrid
b) Melia Hotels International ${ }^{2}$

Fritz Bank*

Kreuzau, Deputy Chairman of the Group Works Council of HOCHTIEF Aktiengesellschaft

Dipl.-Ing., Dipl.-Wirtsch.-Ing. Beate Bell

Cologne, management consultant

Christoph Breimann*

Lüdinghausen, Head of Technical Office Building of HOCHTIEF Infrastructure GmbH (until March 31, 2024)

José Luis del Valle Pérez

Madrid, Member, Director and Secretary of the Board of ACS, Actividades de Construcción y Servicios, S.A., and General Secretary of the ACS Group, Madrid
b) Abertis Infraestructuras, S.A.

ACS Servicios y Concesiones, S.L. ${ }^{1}$
CIMIC Group Limited ${ }^{1}$
Dragados, S.A. ${ }^{1}$

[^0]
[^0]: ${ }^{a}$ Membership in other supervisory boards prescribed by law (as of December 31, 2023)
b) Membership in comparable domestic and international corporate governing bodies (as of December 31, 2023)
${ }^{2}$ Supervisory Board member representing employees

Ángel García Altozano

Madrid, Corporate General Manager of ACS, Actividades de Construcción y Servicios, S.A., Madrid
b) Abertis Infraestructuras, S.A.

ACS Servicios y Concesiones, S.L. ${ }^{1}$
Dragados, S.A. ${ }^{1}$

Dr. rer. pol. h. c. Francisco Javier García Sanz

Madrid, former Member of the Board of Management of Volkswagen Aktiengesellschaft, Wolfsburg, retired
b) Acerinox, S.A. ${ }^{2}$

INDRA S.A. ${ }^{2}$

Arno Gellweiler*

Oberhausen, Chairman of the Works Council North of HOCHTIEF Engineering GmbH; Chairman of the Central Works Council of HOCHTIEF Engineering GmbH, Member of the Group Works Council (from January 16, 2024)

Jörg Laue *

Pulheim CFO (management HOCHTIEF Infrastructure GmbH), graduate industrial engineer (construction engineering) (from April 1, 2024)

Natalie Moser*

Seligenstadt, independent Works Council Chairwoman, HOCHTIEF Infrastructure GmbH, Frankfurt am Main location

Nikolaos Paraskevopoulos*

Bottrop, Member of the Group Works Council of HOCHTIEF Aktiengesellschaft;
Chairman of the Works Council Essen of TRINAC GmbH

Prof. Dr. Mirja Steinkamp

Hamburg, auditor and tax consultant
a) Basler AG, Arensburg ${ }^{2}$

SUSS MicroTec SE, Garching b. München ${ }^{2}$
b) BarthHaas GmbH \& Co. KG, Nuremberg (Deputy Chairwoman)

Klaus Stümper*

Lohmar, Chairman of the Group Works Council of HOCHTIEF Aktiengesellschaft

Dipl.-Geol. MBA Christine Wolff

Hamburg, management consultant
a) $\mathrm{K}+\mathrm{S}$ Aktiengesellschaft ${ }^{2}$

SIEVERT SE
b) Sweco $\mathrm{AB}^{2}$

Björn Wißuwa*

Unna, regional manager (Westphalia), IG Bauen-Agrar-Umwelt (the Construction, Agricultural and Environmental Employees' Union) (from January 16, 2024)
a) Membership in other supervisory boards prescribed by law (as of December 31, 2024)
b) Membership in comparable domestic and international corporate governing bodies (as of December 31, 2024)
${ }^{1}$ Supervisory Board member representing employees

[^0]
[^0]: Office within the same corporate group
${ }^{2}$ Listed company

Supervisory Board Committees

Audit/Sustainability Committee

Dr. Francisco Javier García Sanz (Chairman)
Cristina Aldamiz-Echevarría González de Durana
Fritz Bank
Christoph Breimann (until March 31, 2024)
José Luis del Valle Pérez
Ángel García Altozano
Arno Gellweiler (from February 22, 2024)
Jörg Laue (from April 25, 2024)
Nicole Simons
Prof. Dr. Mirja Steinkamp
Klaus Stümper (Deputy Chairman)

Human Resources Committee

Pedro López Jiménez (Chairman)
Beate Bell
José Luis del Valle Pérez
Natalie Moser
Klaus Stümper
Björn Wiñuwa (from February 22, 2024)
Christine Wolff

Nomination Committee

Pedro López Jiménez (Chairman)
José Luis del Valle Pérez
Christine Wolff

Mediation Committee pursuant to Sec. 27 (3) of the German Codetermination Act (MitbestG)

Pedro López Jiménez (Chairman)
Beate Bell
Nikolaos Paraskevopoulos
Nicole Simons

Executive Board

Juan Santamaría Cases

Madrid, Chairman of the Executive Board of HOCHTIEF Aktiengesellschaft, Essen, and Chief Executive Officer (CEO) of ACS, Actividades de Construcción y Servicios, S.A., Madrid
b) Abertis Infraestructuras, S.A. (President)

CIMIC Group Limited (Executive Chairman) ${ }^{1}$
Flatiron Holding, Inc. (Member of the Board of Directors) ${ }^{1}$
Thiess Group Finance Pty. Ltd. (Member of the Board of Directors) ${ }^{1}$
Thiess Group Finance USA Pty. Ltd. (Member of the Board of Directors) ${ }^{1}$
Thiess Group Holdings Pty. Ltd. (Member of the Board of Directors) ${ }^{1}$
The Turner Corporation (Member of the Board of Directors) ${ }^{1}$

Peter Sassenfeld

Düsseldorf, Member of the Executive Board (Chief Financial Officer-CFO) of HOCHTIEF Aktiengesellschaft, Essen
b) CIMIC Group Limited ${ }^{1}$

Flatiron Holding, Inc. ${ }^{1}$
HOCHTIEF AUSTRALIA HOLDINGS Ltd. ${ }^{1}$
Stonefort Insurance Holdings, S.A. ${ }^{1}$
The Turner Corporation ${ }^{1}$

Ángel Muriel Bernal

Madrid, Member of the Executive Board and Chief Operating Officer (COO)
of HOCHTIEF Aktiengesellschaft, Essen
a) HOCHTIEF Infrastructure GmbH (Chairman) ${ }^{1}$
b) Abertis HoldCo, S.A. (Board Member)

Thiess Group Finance Pty. Ltd. (Alternate Director)
Thiess Group Finance USA Pty. Ltd. (Alternate Director)
Thiess Group Holdings Pty. Ltd. (Alternate Director

Martina Steffen

Velbert, Member of the Executive Board and Chief Human Resources Officer of HOCHTIEF Aktiengesellschaft, Essen, and Chief Human Resources Officer of ACS, Actividades de Construcctón y Servicios, S.A., Madrid
a) HOCHTIEF Infrastructure GmbH ${ }^{1}$
b) Member of the Board of Trustees of Kinderstiftung Essen (Essen Children's Foundation) ${ }^{2}$

[^0]
[^0]: a) Membership in other supervisory boards prescribed by law (as of December 31, 2024)
b) Membership in comparable domestic and international corporate governing bodies (as of December 31, 2024)
${ }^{1}$ Office within the same corporate group
${ }^{2}$ Non-profit enterprise

Copy of the Independent Auditor's Report:

"Independent Auditor's Report To HOCHTIEF Aktiengesellschaft, Essen/Germany Report on the Audit of the Consolidated Financial Statements and of the Combined Management Report

Audit Opinions

We have audited the consolidated financial statements of HOCHTIEF Aktiengesellschaft, Essen/Germany, and its subsidiaries (the Group) which comprise the consolidated statement of financial position as at December 31, 2024, the consolidated statement of profit and loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the financial year from January 1 to December 31, 2024, and the notes to the consolidated financial statements, including material accounting policy information. In addition, we have audited the combined management report for the parent and the group of HOCHTIEF Aktiengesellschaft, Essen/Germany, for the financial year from January 1 to December 31, 2024. In accordance with German legal requirements, we have neither audited the content of the corporate governance statement pursuant to Sections 289f and 315d German Commercial Code (HGB), which is referred to in a footnote in the chapter "Group Structure and Business Activity, Business Model and Control System" of the combined management report, nor the sustainability statement included in the combined management report. Furthermore, we have not audited the content of those parts extraneous to management reports in the combined management report that are marked as unaudited.

In our opinion, on the basis of the knowledge obtained in the audit,

• the accompanying consolidated financial statements comply, in all material respects, with the IFRS® Accounting Standards issued by the International Accounting Standards Board (IASB) (hereinafter "IFRS Accounting Standards") as adopted by the EU and the additional requirements of German commercial law pursuant to Section 315e (1) HGB and, in compliance with these requirements, give a true and fair view of the assets, liabilities and financial position of the Group as at December 31, 2024 and of its financial performance for the financial year from January 1 to December 31, 2024, and
• the accompanying combined management report as a whole provides an appropriate view of the Group's position. In all material respects, this combined management report is consistent with the consolidated financial statements, complies with German legal requirements and appropriately presents the opportunities and risks of future development. Our audit opinion on the combined management report does not cover the content of the statements referred to above and of the parts extraneous to management reports.

Pursuant to Section 322 (3) sentence 1 HGB, we declare that our audit has not led to any reservations relating to the legal compliance of the consolidated financial statements and of the combined management report.

Basis for the Audit Opinions

We conducted our audit of the consolidated financial statements and of the combined management report in accordance with Section 317 HGB and the EU Audit Regulation (No. 537/2014; referred to subsequently as "EU Audit Regulation") and in compliance with German Generally Accepted Standards for Financial Statement Audits promulgated by the Institut der Wirtschaftsprüfer (IDW). Our responsibilities under those requirements and principles are further described in the "Auditor's Responsibilities for the Audit of the Consolidated Financial Statements and of the Combined Management Report" section of our auditor's report. We are independent of the group entities in accordance with the requirements of European law and German commercial and professional law, and we have fulfilled our other German professional responsibilities in accordance with these requirements. In addition, in accordance with Article 10 (2) point (f) of the EU Audit Regulation, we declare that we have not provided non-audit services prohibited under Article 5 (1) of the EU Audit Regulation. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions on the consolidated financial statements and on the combined management report.

Key Audit Matters in the Audit of the Consolidated Financial Statements

In the following we present the key audit matters we have determined in the course of our audit:

1. Realization of the revenue, in particular the enforceability of unapproved change order claims from customer-specific construction contracts
2. Recoverability of goodwill
3. Acquisition of additional 10\% of the shares in Thiess Group Holdings Pty Ltd, New South Wales/Australia

Our presentation of these key audit matters has been structured as follows:
a) description (including reference to corresponding information in the consolidated financial statements)
b) auditor's response

1. Realization of the revenue, in particular the enforceability of unapproved change order claims from customer-specific construction contracts

a) Revenue from customer-specific construction contracts of mEUR 33,064 (prior year: mEUR 27,487) is disclosed in the consolidated statement of profit and loss within the consolidated financial statements of HOCHTIEF Aktiengesellschaft. Furthermore, the statement of financial position item "Trade accounts receivable and other receivables" includes trade receivables of mEUR 4,338 (prior year: mEUR 3,940) as well as contract assets with a value of mEUR 2,538 (prior year: mEUR 2,094), which together amount to mEUR 6,876 (prior year: mEUR 6,034) and thus count for $27.9 \%$ (prior year: $31.7 \%$ ) of the consolidated total assets. Both sales revenue and receivables from customer-specific construction contracts are therefore of considerable importance for the Group's assets, liabilities and financial performance.

A material share of the business activity of HOCHTIEF Group refers to the handling of customer-specific construction contracts. The work performed, including the pro rata result, is recognized in revenue according to the percentage of completion. The percentage of completion is calculated as the ratio of work performed to total contract performance. Revenue is recognized when the executive directors or the responsible management have assessed and estimated all relevant contract components, including - if applicable in individual cases - the components of determining the stage of completion, estimating the total contract performance and the total contract costs including cost increases, determining contractual performance claims and assessing the probability of customer approval of deviations in the total contract value and the acceptance of supplementary claims, as well as estimating the expected completion date.

The executive directors determine the project-related percentage of completion required to account for customer-specific construction contracts on the basis of detailed project calculations. When assessing the enforceability of change order claims, the executive directors incorporate their project-related findings from negotiations with the respective customer and discussions with internal or external lawyers.

Disclosure is made under the statement of financial position item "Trade accounts receivable and other receivables". In particular, the components over and above the contract price (deviations in the total contract value and change order claims) are associated with uncertainties with regard to their recognition and measurement. The recognition of change order claims is based on the estimates of the executive directors regarding the expected realizability of the amounts, as it must be highly probable for the recognition of corresponding receivables that there will be no significant cancellations in the future. The discretionary scope arises primarily in the assessment of the enforceability of unapproved change order claims.

The recognition of revenue over time, in particular the enforceability of significant unapproved change order claims, is a key audit matter because it requires significant estimates by the executive directors, in particular with regard to the total costs of a contract, the determination of the percentage of completion and, above all, the consideration of change order claims and contract risks, and also because the consolidated statement of financial position as at December 31, 2024 includes a significant amount of unapproved change order claims.

For information on the accounting policies applied, please refer to the explanations in the sections "Revenue from contracts with customers" and "Management judgment in applying accounting and valuation methods" in the "Accounting and valuation methods" chapter of the notes to the consolidated financial statements. In addition, information on the amount and breakdown of revenue can be found in the "Revenue" section in the "Notes to the consolidated statement of profit and loss" chapter of the notes to the consolidated financial statements.
b) During our audit, we obtained a detailed understanding of the underlying processes from the offer to the execution phase of construction contracts and assessed the extent to which the processes and the data used for this purpose can be influenced by subjectivity, complexity or other inherent risk factors. As part of this process, we assessed whether the requirements for revenue recognition over time in accordance with IFRS 15 are met for construction contracts. We have assessed the design and implementation of internal controls relevant to the audit to ensure the correct accounting of construction contracts in the consolidated financial statements.

We performed substantive audit procedures on construction contracts selected according to risk factors. We have:

• analyzed the originally planned contract costs underlying the determination of the percentage of completion of the individual construction contracts and the updated planned costs used for the consolidated financial statements;
• analyzed the development of margins over the course of the year for anomalies and in comparison to the prior year and took the findings gained on this basis into account when reviewing the changes in planned costs and contract values;
• verified the proper and timely allocation of the cost of material and production costs recognized on the respective production order on the basis of purchase orders, performance records and supplier invoices;
• in individual cases, obtained evidence from third parties and assessed its accounting treatment;

• verified the recognition of the amounts of revenue by comparing the underlying transaction prices with the respective contractual bases;

• obtained and evaluated the estimates of the percentage of completion and project risks from the project managers appointed by the executive directors;

• assessed the appropriate accounting treatment of construction contracts and verified the recognition of any provisions for onerous contracts;
• in particular, assessed and verified the justification for the recognition of unapproved change order claims on the basis of suitable evidence.

2. Recoverability of goodwill

a) In the consolidated financial statements of HOCHTIEF Aktiengesellschaft, goodwill of mEUR 2,851 (prior year: mEUR 976) is recognized under the statement of financial position item "Intangible assets" and accounts for $11.6 \%$ (prior year: $5.1 \%$ ) of the total consolidated assets or $238.4 \%$ (prior year: $77.1 \%$ ) of consolidated equity. Goodwill is therefore of material significance to the Group's financial position.

The recoverability of goodwill is reviewed annually at the level of the Turner, CIMIC and Engineering \& Construction segments, regardless of any indications of impairment. The effective date for the impairment test for all segments was March 31, 2024. If there are indications of impairment (triggering events) during the year, an event-driven impairment test is also carried out during the year. This involves comparing the carrying amount with the recoverable amount of the respective segment. If the carrying amount is higher than the recoverable amount, an impairment loss is recognized. The recoverable amount is the higher of the fair value less costs to sell and the value in use of the respective segment. The recoverable amount is determined using a discounted cash flow model on the basis of weighted capital costs.

A high degree of estimation uncertainty is inherent in the impairment test, particularly with regard to the expected sales and cost development of the segments for the next three years, which is also dependent on future new projects, the growth rates and future cash flows as well as the discount factors applied, which is accompanied by considerable discretionary scope on the part of the executive directors. We therefore determined the recoverability of the goodwill recognized in the consolidated statement of financial position to be a key audit matter.

Please refer to the explanations in the "Intangible assets" and "Impairment" sections in the "Accounting and valuation methods" chapter of the notes to the consolidated financial statements for information on the accounting policies applied. Information on the amount of goodwill can be found in the "Intangible assets" section in the "Notes to the consolidated statement of financial position" chapter of the notes to the consolidated financial statements. The economic development of the segments is also presented in the combined management report in the "Segment reporting" chapter.
b) During our audit, we obtained a detailed understanding of the impairment testing process of the segments and assessed the extent to which the valuation process and the data used for this purpose can be influenced by subjectivity, complexity or other inherent risk factors.

With the involvement of our internal valuation specialists, we reviewed the performance of the impairment test by the executive directors and assessed whether the valuation method applied was methodologically and arithmetically appropriate. With regard to the forecasts included in the valuation, we reconciled them with the corporate planning adopted by the executive directors of HOCHTIEF Aktiengesellschaft and approved or acknowledged by the supervisory board. With regard to existing estimates, we critically examined the assumptions and data in particular.

We also satisfied ourselves of the accuracy of the forecasts to date by comparing corporate planning from prior financial years with the results actually realized and analyzing deviations. We assessed the appropriateness of the future cash flows used in the valuation by reconciling selected planning assumptions with general and industry-specific market expectations, taking into account the expected development of inflation.

In addition, we examined whether the planning is consistent with the disclosures on strategy and mediumterm planning as well as with the forecast reporting in the combined management report.

Furthermore, we assessed the calculation of the weighted average cost of capital. For this purpose, with the support of the internal valuation specialists we engaged, we examined the parameters used by comparing them with market data, including inflation data, and related expectations.

3. Acquisition of additional 10\% of the equity interest in Thiess Group Holdings Pty Ltd, New South Wales/Australia

a) On April 23, 2024, HOCHTIEF's subsidiary CIMIC Group Limited, New South Wales/Australia, (CIMIC) acquired a further 10\% of the equity interest in Thiess Group Holdings Pty Ltd, Queensland/Australia, (Thiess) from Quarry Services Holdings Pty Ltd (UK) Ltd, London/Great Britain, (Elliott), which increased CIMIC's equity interest in Thiess to now 60\%. The purchase price was mEUR 194. Prior to this acquisition, Thiess had been jointly controlled by CIMIC and Elliott. On the day of the acquisition of the equity interest in Thiess, the shareholders of Thiess amended the articles of association of Thiess to the effect that CIMIC has since been able to control the relevant activities of Thiess and thus exercise control over Thiess. As a consequence, Thiess, which had previously been accounted for in HOCHTIEF Aktiengesellschaft's consolidated financial statements using the equity method, was fully consolidated as a subsidiary in accordance with IFRS 10. The business combination resulted in the recognition of goodwill of mEUR 1,900, which accounts for $66.6 \%$ of the total recognized goodwill and $7.7 \%$ of the consolidated total assets.

Elliott was and is the holder of a put option for $50 \%$ and now $40 \%$ of the shares in Thiess, which can be exercised between April 2025 and December 2026 under the amended terms of the transaction made on April 23, 2024. The option was accounted for as a derivative financial instrument in accordance with IFRS 9 prior to the business combination. After the full consolidation of Thiess, it was recognized as a put option on noncontrolling interests under the balance sheet item "Put options granted to non-controlling interests", which led to a reduction in equity of mEUR 654.

CIMIC's already previously held equity interest in Thiess was revalued at fair value in accordance with the regulations for step acquisitions. To this end, CIMIC's executive directors engaged independent experts in a supporting function for determining the fair value of the $50 \%$ equity interest in Thiess previously held by CIMIC at the time of the transaction in accordance with IFRS 13.

The remeasurement resulted in a gain of mEUR 593. This amount, which counts for $68.4 \%$ of the profit after tax, is recognized in the consolidated statement of profit and loss under other operating income.

We determined this matter to be a key audit matter since it is a complex transaction with a material impact on the consolidated financial statements. The contractual agreements between CIMIC and Elliott are extensive and of a complex nature, and required the executive directors' judgment, among others, as to the question whether the transaction as a whole resulted in obtaining control over Thiess. Likewise, the determination of the fair value of the equity interest already held by CIMIC prior to the transaction required several assumptions and estimates to be made by the executive directors, the use of complex measurement methods as well as expert support, and was thus subject to a considerable degree of discretion.

For information on the accounting policies applied, please refer to the explanations in the section "Management judgment in applying accounting and valuation methods" in the "Accounting and valuation methods" chapter of the notes to the consolidated financial statements. Information on the income from the divestment

and transitional consolidation and on the tax effects associated with the corporate transaction can also be found in the sections "Other operating income" and "Income taxes" in the chapter "Notes on the consolidated statement of profit and loss" of the consolidated financial statements. Information on the amount of goodwill linked to this transaction can be found in the "Intangible assets" section in the "Notes to the consolidated statement of financial position" chapter of the notes to the consolidated financial statements.
b) We obtained an understanding of the transaction as a whole based on the contractual agreements between CIMIC and Elliott and by inspecting Thiess' amended articles of association.

In light of the requirements of IFRS 10, we held discussions and undertook critical reviews with the executive directors as to which activities are relevant for managing the Thiess business and which activities most significantly affect the return on investment, and as to whether CIMIC was able to make decisions in this regard based on the amended articles of association.

We assessed the competence, capability and objectivity of the independent experts engaged by CIMIC to determine the fair value of the equity interest in Thiess, which had already been held by CIMIC prior to the transaction, at the time of the transaction in accordance with IFRS 13. With the involvement of our internal measurement specialists, we assessed the data used for measurement and the assumptions made by the executive directors. Furthermore, we examined and reviewed the measurement method as to its methodological and arithmetical appropriateness. With regard to the cash flow forecasts included for measurement purposes, we reconciled Thiess' business plan as adopted and approved by Thiess' Board. We verified the reliability of the cash flow forecasts by comparing the forecasts for prior years, including the revenue and EBIT forecasts, with the actual results. On this basis, we assessed the planning competence of the responsible management retrospectively.

We assessed the calculation of the gain on remeasurement in terms of its conformity with IFRS 3.

Finally, we audited the completeness and accuracy of the disclosures in the notes to the consolidated financial statements related to the transaction.

Other Information

The executive directors and/or the supervisory board are responsible for the other information. The other information comprises:

• the report of the supervisory board,
• the statement on corporate governance
• the sustainability statement, which contains the information on non-financial reporting pursuant to Sections 315b and 315c HGB,
• the unaudited content of the combined management report marked as "unaudited",
• the remuneration report pursuant to Section 162 German Stock Corporation Act (AktG),
• the executive directors' confirmations regarding the consolidated financial statements and the combined management report pursuant to Section 297 (2) sentence 4 and Section 315 (1) sentence 5 HGB, and
• all other parts of the annual report or "group report",
• but not the consolidated financial statements, not the audited content of the disclosures in the combined management report and not our auditor's report thereon.

The supervisory board is responsible for the report of the supervisory board. The executive directors and the supervisory board are responsible for the statement according to Section 161 AktG concerning the German Corporate Governance Code, which is part of the corporate governance statement, and for the remuneration report. Otherwise, the executive directors are responsible for the other information.

Our audit opinions on the consolidated financial statements and on the combined management report do not cover the other information, and consequently we do not express an audit opinion or any other form of assurance conclusion thereon.

In connection with our audit, our responsibility is to read the other information identified above and, in doing so, to consider whether the other information

• is materially inconsistent with the consolidated financial statements, with the audited content of the disclosures in the combined management report or our knowledge obtained in the audit, or
• otherwise appears to be materially misstated.

Responsibilities of the Executive Directors and the Supervisory Board for the Consolidated Financial Statements and the Combined Management Report

The executive directors are responsible for the preparation of the consolidated financial statements that comply, in all material respects, with IFRS Accounting Standards as adopted by the EU and the additional requirements of German commercial law pursuant to Section 315e (1) HGB, and that the consolidated financial statements, in compliance with these requirements, give a true and fair view of the assets, liabilities, financial position and financial performance of the Group. In addition, the executive directors are responsible for such internal control as they have determined necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud (i.e., fraudulent financial reporting and misappropriation of assets) or error.

In preparing the consolidated financial statements, the executive directors are responsible for assessing the Group's ability to continue as a going concern. They also have the responsibility for disclosing, as applicable, matters related to going concern. In addition, they are responsible for financial reporting based on the going concern basis of accounting unless there is an intention to liquidate the Group or to cease operations, or there is no realistic alternative but to do so.

Furthermore, the executive directors are responsible for the preparation of the combined management report that as a whole provides an appropriate view of the Group's position and is, in all material respects, consistent with the consolidated financial statements, complies with German legal requirements, and appropriately presents the opportunities and risks of future development. In addition, the executive directors are responsible for such arrangements and measures (systems) as they have considered necessary to enable the preparation of a combined management report that is in accordance with the applicable German legal requirements, and to be able to provide sufficient appropriate evidence for the assertions in the combined management report.

The supervisory board is responsible for overseeing the Group's financial reporting process for the preparation of the consolidated financial statements and of the combined management report.

Auditor's Responsibilities for the Audit of the Consolidated Financial Statements and of the Combined Management Report

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and whether the combined management report as a whole provides an appropriate view of the Group's position and, in all material respects, is consistent with the consolidated financial statements and the knowledge obtained in the audit, complies with the German legal requirements and appropriately presents the opportunities and risks of future development, as well as to issue an auditor's report that includes our audit opinions on the consolidated financial statements and on the combined management report.

Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with Section 317 HGB and the EU Audit Regulation and in compliance with German Generally Accepted Standards for Financial Statement Audits promulgated by the Institut der Wirtschaftsprüfer (IDW) will always detect a material misstatement. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements and this combined management report.

We exercise professional judgment and maintain professional skepticism throughout the audit. We also

• identify and assess the risks of material misstatement of the consolidated financial statements and of the combined management report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our audit opinions. The risk of not detecting a material misstatement resulting from fraud is higher than the risk of not detecting a material misstatement resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• obtain an understanding of internal control relevant to the audit of the consolidated financial statements and of arrangements and measures relevant to the audit of the combined management report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an audit opinion on the effectiveness of internal control or these arrangements and measures of the Group.
• evaluate the appropriateness of accounting policies used by the executive directors and the reasonableness of estimates made by the executive directors and related disclosures.
• conclude on the appropriateness of the executive directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in the auditor's report to the related disclosures in the consolidated financial statements and in the combined management report or, if such disclosures are inadequate, to modify our respective audit opinions. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to be able to continue as a going concern.

• evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements present the underlying transactions and events in a manner that the consolidated financial statements give a true and fair view of the assets, liabilities, financial position and financial performance of the Group in compliance with IFRS Accounting Standards as adopted by the EU and with the additional requirements of German commercial law pursuant to Section 315e (1) HGB.

• plan and perform the audit of the consolidated financial statements in order to obtain sufficient appropriate audit evidence regarding the financial information of the entities or of its business activities within the Group, which serves as a basis for forming audit opinions on the consolidated financial statements and on the combined management report. We are responsible for the direction, supervision and inspection of the audit procedures performed for the purposes of the group audit. We remain solely responsible for our audit opinions.

• evaluate the consistency of the combined management report with the consolidated financial statements, its conformity with German law, and the view of the Group's position it provides.
• perform audit procedures on the prospective information presented by the executive directors in the combined management report. On the basis of sufficient appropriate audit evidence we evaluate, in particular, the significant assumptions used by the executive directors as a basis for the prospective information and evaluate the proper derivation of the prospective information from these assumptions. We do not express a separate audit opinion on the prospective information and on the assumptions used as a basis. There is a substantial unavoidable risk that future events will differ materially from the prospective information.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We provide those charged with governance with a statement that we have complied with the relevant independence requirements and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, the actions taken or safeguards applied to eliminate independence threats.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements for the current period and are therefore the key audit matters. We describe these matters in the auditor's report unless law or regulation precludes public disclosure about the matter.

OTHER LEGAL AND REGULATORY REQUIREMENTS

Report on the Audit of the Electronic Reproductions of the Consolidated Financial Statements and of the Combined Management Report Prepared for Publication Pursuant to Section 317 (3a) HGB

Audit Opinion

We have performed an audit in accordance with Section 317 (3a) HGB to obtain reasonable assurance whether the electronic reproductions of the consolidated financial statements and of the combined management report (hereinafter referred to as "ESEF documents") prepared for publication, contained in the file, which has the SHA-256 value 0dd349e87c86bb963f4004b72c88ed836e80b49a9ec451605291315ed881c70f meet, in all material respects, the requirements for the electronic reporting format pursuant to Section 328 (1) HGB ("ESEF format"). In accordance with the German legal requirements, this audit only covers the conversion of the information contained in the consolidated financial statements and the combined management report into the ESEF format, and therefore covers neither the information contained in these electronic reproductions, nor any other information contained in the file identified above.

In our opinion, the electronic reproductions of the consolidated financial statements and of the combined management report prepared for publication contained in the file identified above meet, in all material respects, the requirements for the electronic reporting format pursuant to Section 328 (1) HGB. Beyond this audit opinion and our audit opinions on the accompanying consolidated financial statements and on the accompanying combined management report for the financial year from January 1 to December 31, 2024 contained in the "Report on the Audit of the Consolidated Financial Statements and of the Combined Management Report" above, we do not express any assurance opinion on the information contained within these electronic reproductions or on any other information contained in the file identified above.

Basis for the Audit Opinion

We conducted our audit of the electronic reproductions of the consolidated financial statements and of the combined management report contained in the file identified above in accordance with Section 317 (3a) HGB and on the basis of the IDW Auditing Standard: Audit of the Electronic Reproductions of Financial Statements and Management Reports Prepared for Publication Purposes Pursuant to Section 317 (3a) HGB (IDW AuS 410 (06.2022)). Our responsibilities in this context are further described in the "Group Auditor's Responsibilities for the Audit of the ESEF Documents" section. Our audit firm has applied the requirements of the IDW Quality Management Standards.

Responsibilities of the Executive Directors and the Supervisory Board for the ESEF Documents

The executive directors of the parent are responsible for the preparation of the ESEF documents based on the electronic files of the consolidated financial statements and of the combined management report according to Section 328 (1) sentence 4 no. 1 HGB and for the tagging of the consolidated financial statements according to Section 328 (1) sentence 4 no. 2 HGB.

In addition, the executive directors of the parent are responsible for such internal control that they have considered necessary to enable the preparation of ESEF documents that are free from material intentional or unintentional non-compliance with the requirements for the electronic reporting format pursuant to Section 328 (1) HGB.

The supervisory board is responsible for overseeing the process for preparing the ESEF documents as part of the financial reporting process.

Group Auditor's Responsibilities for the Audit of the ESEF Documents

Our objective is to obtain reasonable assurance about whether the ESEF documents are free from material intentional or unintentional non-compliance with the requirements of Section 328 (1) HGB.

We exercise professional judgment and maintain professional skepticism throughout the audit. We also

• identify and assess the risks of material intentional or unintentional non-compliance with the requirements of Section 328 (1) HGB, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our audit opinion.
• obtain an understanding of internal control relevant to the audit on the ESEF documents in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an assurance opinion on the effectiveness of these controls.

• evaluate the technical validity of the ESEF documents, i.e., whether the file containing the ESEF documents meets the requirements of the Delegated Regulation (EU) 2019/815, in the version in force at the balance sheet date, on the technical specification for this electronic file.

• evaluate whether the ESEF documents enable an XHTML reproduction with content equivalent to the audited consolidated financial statements and to the audited combined management report.

• evaluate whether the tagging of the ESEF documents with Inline XBRL technology (iXBRL) in accordance with the requirements of Articles 4 and 6 of the Delegated Regulation (EU) 2019/815, in the version in force at the balance sheet date, enables an appropriate and complete machine-readable XBRL copy of the XHTML reproduction.

Further Information Pursuant to Article 10 of the EU Audit Regulation

We were elected as group auditor by the general meeting on April 25, 2024. We were engaged by the supervisory board on July 1, 2024. We have been the group auditor of HOCHTIEF Aktiengesellschaft, Essen/Germany, without interruption since the financial year 2023.

We declare that the audit opinions expressed in this auditor's report are consistent with the additional report to the audit committee pursuant to Article 11 of the EU Audit Regulation (long-form audit report).

OTHER MATTER - USE OF THE AUDITOR'S REPORT

Our auditor's report must always be read together with the audited consolidated financial statements and the audited combined management report as well as with the audited ESEF documents. The consolidated financial statements and the combined management report converted into the ESEF format - including the versions to be submitted for inclusion in the Company Register - are merely electronic reproductions of the audited consolidated financial statements and the audited combined management report and do not take their place. In particular, the ESEF report and our audit opinion contained therein are to be used solely together with the audited ESEF documents made available in electronic form.

GERMAN PUBLIC AUDITOR RESPONSIBLE FOR THE ENGAGEMENT

The German Public Auditor responsible for the engagement is Michael Pfeiffer.

Düsseldorf/Germany, February 18, 2025

Deloitte GmbH

Wirtschaftsprüfungsgesellschaft

Signed:
André Bedenbecker
Wirtschaftsprüfer
(German Public Auditor)

Signed:
Michael Pfeiffer
Wirtschaftsprüfer
(German Public Auditor)"

Assurance report of the Independent German Public Auditor on a limited assurance engagement in relation to the Sustainability Statement for the Group of HOCHTIEF Aktiengesellschaft, Essen/Germany To HOCHTIEF Aktiengesellschaft, Essen/Germany

Assurance Conclusion

We have conducted a limited assurance engagement on the sustainability statement for the Group of HOCHTIEF Aktiengesellschaft, Essen/Germany, included in chapter "Sustainability statement" of the combined management report for the parent and the group, ("the Sustainability Statement") for the financial year from January 1 to December 31, 2024. The Sustainability Statement was prepared to fulfill the requirements of Directive (EU) 2022/2464 of the European Parliament and of the Council of December 14, 2022 (Corporate Sustainability Reporting Directive, CSRD) and Article 8 of Regulation (EU) 2020/852 and Sections 315b and 315c German Commercial Code (HGB) for a consolidated non-financial statement.

Based on the procedures performed and the evidence obtained, nothing has come to our attention that causes us to believe that the Sustainability Statement is not prepared, in all material respects, in accordance with the requirements of the CSRD and Article 8 of Regulation (EU) 2020/852, Sections 315b and 315c HGB for a consolidated non-financial statement, and the specifying criteria presented by the executive directors of the Company. This assurance conclusion includes that nothing has come to our attention that causes us to believe

• that the accompanying Sustainability Statement does not comply, in all material respects, with the European Sustainability Reporting Standards (ESRS), including that the process carried out by the entity to identify information to be included in the Sustainability Statement (the materiality assessment) is not, in all material respects, in accordance with the description set out in section "Description of the procedure for determining and assessing the material impacts, risks and opportunities" of the Sustainability Statement, or
• that the disclosures in the Sustainability Statement do not comply, in all material respects, with Article 8 of Regulation (EU) 2020/852.

Basis for the Assurance Conclusion

We conducted our assurance engagement in accordance with the International Standard on Assurance Engagements (ISAE) 3000 (Revised): "Assurance Engagements Other Than Audits or Reviews of Historical Financial Information", issued by the International Auditing and Assurance Standards Board (IAASB).

The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed.

Our responsibilities under ISAE 3000 (Revised) are further described in section "German Public Auditor's Responsibilities for the Assurance Engagement on the Sustainability Statement".

We are independent of the entity in accordance with the requirements of European law and German commercial and professional law, and we have fulfilled our other German professional responsibilities in accordance with these requirements. Our audit firm has applied the requirements of the IDW Quality Management Standards. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our assurance conclusion.

Responsibilities of the Executive Directors and the Supervisory Board for the Sustainability Statement

The executive directors are responsible for the preparation of the Sustainability Statement in accordance with the requirements of the CSRD and the applicable German legal and other European requirements as well as with the specifying criteria presented by the executive directors of the Company and for designing, implementing and maintaining such internal control as they have considered necessary to enable the preparation of a Sustainability Statement in accordance with these requirements that is free from material misstatement, whether due to fraud (i.e., fraudulent reporting in the Sustainability Statement) or error.

This responsibility of the executive directors includes establishing and maintaining the materiality assessment process, selecting and applying appropriate reporting policies for preparing the Sustainability Statement as well as making assumptions and estimates and ascertaining forward-looking information for individual sustainabilityrelated disclosures.

The supervisory board is responsible for overseeing the process for the preparation of the Sustainability Statement.

Inherent Limitations in Preparing the Sustainability Statement

The CSRD and the applicable German legal and other European requirements contain wording and terms that are subject to considerable interpretation uncertainties and for which no authoritative comprehensive interpretations have yet been published. The executive directors have made interpretations of such wording and terms in the Sustainability Statement. The executive directors are responsible for the reasonableness of these interpretations. As such wording and terms may be interpreted differently by regulators or courts, the legality of measurements or evaluations of the sustainability matters based on these interpretations is uncertain. The quantification of non-financial performance indicators disclosed in the Sustainability Statement is also subject to inherent uncertainties.

These inherent limitations also affect the assurance engagement on the Sustainability Statement.

German Public Auditor's Responsibilities for the Assurance Engagement on the Sustainability Statement

Our objective is to express a limited assurance conclusion based on the assurance engagement we have conducted, on whether any matters have come to our attention that cause us to believe that the Sustainability Statement has not been prepared, in all material respects, in accordance with the CSRD, the applicable German legal and other European requirements and the specifying criteria presented by the Company's executive directors and to issue an assurance report that includes our assurance conclusion on the Sustainability Statement.

As part of a limited assurance engagement in accordance with ISAE 3000 (Revised), we exercise professional judgment and maintain professional skepticism. We also

• obtain an understanding of the process used to prepare the Sustainability Statement, including the materiality assessment process carried out by the entity to identify disclosures to be reported in the Sustainability Statement.
• identify disclosures where a material misstatement due to fraud or error is likely to arise, design and perform procedures to address these disclosures and obtain limited assurance to support the assurance conclusion. The risk of not detecting a material misstatement resulting from fraud is higher than the risk of not detecting a material misstatement resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control. In addition, the risk of not detecting a material misstatement in information obtained from sources not within the entity's control (value chain information) is ordinarily higher than the risk of not detecting a material misstatement in information obtained from sources within the entity's control, as both the entity's executive directors and we as practitioners are ordinarily subject to restrictions on direct access to the sources of the value chain information.
• the forward-looking information, including the appropriateness of the underlying assumptions. There is a substantial unavoidable risk that future events will differ materially from the forward-looking information.

Summary of the Procedures Performed by the German Public Auditor

A limited assurance engagement involves the performance of procedures to obtain evidence about the sustainability information. The nature, timing and extent of the selected procedures are subject to our professional judgment.

In performing our limited assurance engagement, we

• evaluated the suitability of the criteria as a whole presented by the executive directors in the Sustainability Statement.
• inquired of the executive directors and relevant employees involved in the preparation of the Sustainability Statement about the preparation process, including the materiality assessment processes carried out by the entity to identify the disclosures to be reported in the Sustainability Statement, and about the internal controls related to this process.
• evaluated he reporting policies used by the executive directors to prepare the Sustainability Statement.
• evaluated the reasonableness of the estimates and related information provided by the executive directors. If, in accordance with the ESRS, the executive directors estimate the value chain information to be reported for a case in which the executive directors are unable to obtain the information from the value chain despite making reasonable efforts, our assurance engagement is limited to evaluating whether the executive directors have undertaken these estimates in accordance with the ESRS and assessing the reasonableness of these estimates, but does not include identifying information in the value chain that the executive directors were unable to obtain.
• performed analytical procedures or tests of details and made inquiries in relation to selected information in the Sustainability Statement.
• conducted site visits.
• considered the presentation of the information in the Sustainability Statement.
• considered the process for identifying taxonomy-eligible and taxonomy-aligned economic activities and the corresponding disclosures in the Sustainability Statement.

Restriction of Use

We issue this this report as stipulated in the engagement letter agreed with the Company (including the "General Engagement Terms for Wirtschaftsprüferinnen, Wirtschaftsprüfer and Wirtschaftsprüfungsgesellschaften (German Public Auditors and Public Audit Firms)" dated 1 January 2024 of the Institut der Wirtschaftsprüfer (IDW)). We draw attention to the fact that the assurance engagement was conducted for the Company's purposes and that the report is intended solely to inform the Company about the result of the assurance engagement. Consequently, it may not be suitable for any other than the aforementioned purpose. Accordingly, the report is not intended to be used by third parties as a basis for making (financial) decisions based on it.

Our responsibility is to the Company alone. We do not accept any responsibility to third parties. Our assurance conclusion is not modified in this respect.

Düsseldorf/Germany, February 18, 2025

Deloitte GmbH

Wirtschaftsprüfungsgesellschaft

Signed:
Michael Pfeiffer
Wirtschaftsprüfer
(German Public Auditor)

Signed:
Christian Aps
Wirtschaftsprüfer
(German Public Auditor)

Responsibilities Statements

To the best of our knowledge, and in accordance with the applicable reporting principles, the consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group, and the Group management report, which is combined with the management report of HOCHTIEF Aktiengesellschaft, includes a fair review of the development and performance of the business and the position of the Group, together with a description of the material opportunities and risks associated with the expected development of the Group.

Essen, February 18, 2025

HOCHTIEF Aktiengesellschaft

The Executive Board

Juan Santamaría Cases

Ángel Muriel Bernal

Peter Sassenfeld

Martina Steffen

Further Information

477 HOCHTIEF Sustainability Plan 2025
492 United Nations Sustainable Development Goals
494 Ten Principles of the UN Global Compact
495 Compensation report

511 Forward-looking statements
512 Five-year summary
514 Publication details and credits

In the reporting year, Turner successfully completed the new Academic Center for Thomas More University in Crestview Hills, Kentucky-a modern and innovative environment for teaching and research.

HOCHTIEF Sustainability Plan 2025

In this section, we present the targets published by HOCHTIEF in 2022 under the Sustainability Plan 2025, based on a comprehensive internal strategy process.

For our various commitments, we have specified key performance indicators (KPIs) enabling us to measure our progress and target achievement.

Further information: www.hochtief.com/sustainability

HOCHTIEF sustainability focus areas including the Sustainability Development Goals (SDGs)

Environmental

Social

Governmental

The content in this section is neither part of the statutory audit of the annual financial statements and consolidated financial statements nor part of the separate limited assurance engagement by Deloitte GmbH Wirtschaftsprüfungsgesellschaft.

Environmental Dimension: Commitments and key performance indicators

Global Environmental Management

Increase the percentage of total employees covered by Environmental Management System Certification (ISO 14001) to at least $90 \%$ by 2025

Increase awareness and knowledge regarding relevant environmental topics through trainings of at least 50\% of the employees by 2025

Zero environmental incidents with severe environmental damage (category 1)

Climate Change

Achieve Carbon Neutrality ("Net Zero") by 2045

Achieve Carbon Neutrality for scope 1 emissions by 2038 Reduce scope 1 emissions by at least 20\% until 2025 compared to base year 2019

Achieve Carbon Neutrality for scope 2 emissions by 2038 Reduce scope 2 emissions by at least $35 \%$ until 2025 compared to base year 2019

Achieve Carbon Neutrality for scope 3 emissions (in relevant categories) by 2045

Verify Net Zero path—consistent with limiting temperature rise to $1.5^{\circ} \mathrm{C}$ until the end of 2023

Circular Economy

Achieve zero waste ${ }^{1}$ to landfill by 2045

Achieve annual recycling rate for waste of at least $80 \%$ until 2025 and increase the rate consecutively afterwards

Reduce self-generated hazardous waste
to less than $1 \%$ of total waste by 2030

• Percentage of total employees covered by Environmental Management System Certification (ISO14001)
• Number of training hours per employee with respect to environmental topics
• Percentage of employees trained in environmental topics
• Number of environmental incidents (category 1 and 2)
• Direct GHG emissions (scope 1) ( $\mathrm{tCO}_{2} \mathrm{e}$ )
• Indirect GHG emissions (scope 2) ( $\mathrm{tCO}_{2} \mathrm{e}$ )
• Percentage of purchased renewable of total electricity consumption
• Percentage of produced renewables of total electricity consumption
• Other indirect GHG emissions (scope 3) (tCO2e)
• Intensity of GHG emissions (tCO2e/€)
• Waste to landfill (t)
• Waste volume by type and disposal method (t)
• Annual recycling rate for waste (\%)
• Percentage of self-generated hazardous waste of total waste
• Number of lifecycle/circularity analyses executed for construction projects
• Percentage of construction projects recording building materials digitally (BIM 6D)

Promote life-cycle analyses by actively engaging clients and carry out this analysis in at least 200 construction projects by 2025

Increase the share of construction projects recording building materials digitally (BIM 6D) by at least $10 \%$ from year to year.

Promote reuse and increase the rate of recycled building materials steadily

Water Protection

Promote water protection on all projects
implement water protection plans and execute corresponding measures in 100\% of the projects in water-stressed areas by 2023

Implement measures to reduce water consumption and achieve an annual water recycling/reuse rate of at least $10 \%$ of total water withdrawn

Biodiversity and Ecosystems

Create awareness and preserve biodiversity and ecosystems on all projects

Implement biodiversity management action plans and execute corresponding measures in 100\% of the projects in environmentally sensitive areas by 2023

Establish and implement long-term initiatives to proactively preserve ecosystems and increase biodiversity

• Percentage of recycled building materials of total building materials for the respective types of material
• Percentage of certified wood of total wood (e.g. FSC, PEFC, SFI)
• Percentage of projects in water-stressed areas that have implemented a water protection plan
• Total water consumption $\left(\mathrm{m}^{3}\right)$
• Percentage of water consumption in water-stressed areas of total water consumption
• Percentage of recycled water of total water withdrawn

Sustainable Products and Services

Stimulate innovation and develop sustainable products and services

Achieve at least 50\% of total infrastructure and building revenue from certified construction projects by 2025

Provide sustainable solutions in bidding and/or during preconstruction processes of at least 50\% of the construction projects by 2025

• Number of sustainable products and services developed
• Percentage of certified construction project revenue of total infrastructure and building revenue
• Percentage of revenue according to EU Taxonomy alignment methodology
• Number of projects with sustainable construction certification (e.g. LEED, DGNB, ISCA)
• Number of accredited auditors in sustainable construction certification (e.g. LEED, DGNB, ISCA)
• Number and percentage of construction projects with sustainable solutions in bidding processes and/or during preconstruction processes

(3)

Social Dimension: Commitments and key performance indicators

Health and Safety

Accident-free project delivery; 0 fatalities in all activities for own employees and subcontractors

LTIFR of 1.04 by 2025, with long-term objective of 0.9 by 2030
$100 \%$ of new hires trained on health and safety, by 2023

Increase the percentage of total employees covered by Occupational Health and Safety certifications (such as BS OSHAS 18001 or ISO 45001) to $100 \%$ by 2023

Improve the accident rates of contractors by increasing training and awareness of contractors in Health and Safety issues by 2025

Workplace Variety

Increase the presence of women in senior management positions by $50 \%$ until 2025 compared to 2019

At least $35 \%$ of female technical trainees among new hires by 2025 worldwide (mirroring the employment market)

Encourage generational diversity in the teams, fostering close collaboration between older and younger professionals by 2025.

• Lost time injury frequency rate (LTIFR)
• Different genders share of the total workforce
• Different genders in all management positions
• Different genders in junior management positions
• Different genders in top management positions
• Number of new hires affiliated to the different genders
• Workforce by age groups

Training, Talent and Recruitment

Increase the training hours per company to at least 20 hours per person by 2023

Increase annually the employee training on sustainability-related (climate change, sustainability standards, circular economy in construction, environmental management, diversity, equality, inclusion, anti-discrimination, anti-harassment and anti-bullying, etc.) topics

Promote specific training programs for young talent to facilitate their promotion within the company

• Total hours taught
• Hours of training per employee Group-wide

Working Environment

Further turnover ranges are determined in the Group companies and will be monitored

• Workforce breakdown by professional category
• Fixed contracts vs. temporary contracts (by gender, by professional categories)
• Group-wide turnover rate

Social Activities

Increase the budget for donation and sponsorship by $3 \%$ annually until 2025 (started in 2022)

Improve the monitoring of volunteer projects developed, implementing methodologies that allow us to measure the positive impact on the community - 2025.

Promote corporate volunteering initiatives regarding SDG 4 Quality Education and SDG 11 Sustainable cities and communities

Governance Dimension: Commitments and key performance indicators

Sustainability Governance

Integrate ESG targets in the compensation of the Executive Board and Executives Group-wide, by 2025

• Non-financial indicators linked to the variable compensation of the Executive Board
• \% of Executives with ESG targets linked to their variable compensation (Group-wide)

Anti-corruption and Anti-bribery

Maintain 100\% of the employees trained in compliance (including all new hires)

• Compliance training per employee (average)

Responsible Supply Chain

Include ESG criteria in 50\% of the significant supplier's selection process (based on procurement spend), by 2025

Increase annually the percentage of suppliers receiving systematic post project assessment, with at least $50 \%$ of significant suppliers assessed by 2025

• Expenditure in local suppliers
• \% of critical tier 1 suppliers evaluated in terms of ESG
• \% of suppliers that adhered to ethical, social and governance standards (or have certificates)
• \% of suppliers that receive a post project assessment
• \% of suppliers approved with ESG criteria
• \% of suppliers that have identified ESG risks and have implemented corrective actions
• Total consumption of building materials

Human Rights

Train 100\% of the employees in Human Rights Risks by 2025

• Number of employees trained in human rights

Sustainable Finance

Integrate the EU Sustainable Finance Action Plan/ Taxonomy and/or ESG criteria into financial decisions

• Turnover, Capex and Opex eligibility and non-eligibility according to the European Taxonomy (2022)
• Turnover, Capex and Opex aligned with the European Taxonomy (2023 onwards)
  

Enabler

Digital and Innovation

50\% of $R+D+I$ projects in sustainable-related projects by 2025

• Investment volume in R+D+i projects (EUR)
• Investment volume in $R+D+i$ sustainability-related projects
• R+D+i investment/revenues
• Number of R+D+i sustainability-related projects
• Number of patents in sustainability-related issues

Environment Update on selected targets

1 The project team of the Western Syndey Airport project is working in accordance with the strict requirements of a biodiversity construction environmental management plan. This includes salvaging and relocating animals, e.g. frogs, turtles and eels, to areas of suitable habitat retained at the airport site or nearby habitats. I 2 CPB Contractors continues to embrace sustainable innovations with its first zero-emission and self-sufficient mobile site office - EcoPro Site Facilities. The container, designed in-house, is a 100\% sustainable solution and easily transportable. | 3 At CPB Contractors' Parramatta Light Rail Stage 1 project, New South Wales' first green track for a light rail project was implemented. The track features hardy, native grass species. Furthermore, 50\% of ballasts, 60\% of rail and $90 \%$ of sleepers on the project were reused, sourced from locally decommissioned rail lines.

Global Environmental Management

Increase the percentage of total employees covered by Environmental Management System Certification (ISO 14001) to at least 90\% by 2025

Increase awareness and knowledge regarding relevant environmental topics through trainings of at least 50\% of the employees by 2025

• Group-wide coverage in terms of percentage of corporate units certified to the DIN EN ISO 14001 environmental management system standard: 97\% (2023: $75.3 \%)$
• This means we not only achieved but also significantly exceeded our targets a year early.
• Extensive environmental training was provided in all operational units during the reporting year. Topics and target groups were defined in collaboration with the international training working group and environmental experts from the operational units. Out of the relevant 13,958 employees, 9,748 were provided with environmental training, corresponding to a $70 \%$ training rate-clearly above our $50 \%$ target

Climate Change

Achieve Carbon Neutrality ("Net Zero") by $2045^{1}$

For Scope 1 and Scope 2 emissions, we aim to be climate-neutral by 2038, and have additionally specified short-term reduction targets through 2025. We thus plan to reduce Scope 1 emissions by at least 20\% and Scope 2 emissions by at least $35 \%$ compared to base year 2019 and to achieve a $50 \%$ reduction in combined Scope 1 and Scope 2 emissions by 2030.

27.5\% reduction in Scope 3 emissions by 2030 relative to our 2019 baseline

• $30 \%$ reduction in absolute GHG emissions compared to the 2019 baseline
• $41 \%$ reduction in presented GHG intensity
• Continuation of Net Zero Roadmap measures in all Group companies:
• Group-wide focus on measures that reduce embodied carbon (design, construction process, machinery, materials) and operational carbon (design, operating, and maintenance processes)
• $43 \%$ reduction in absolute Scope 1 emissions compared to the 2019 baseline
• $52 \%$ reduction in presented Scope 1 intensity
• $28 \%$ reduction in absolute Scope 2 emissions (location-based) compared to the 2019 baseline
• $40 \%$ reduction in presented Scope 2 intensity
• $49 \%$ reduction in absolute, combined Scope 1 and 2 emissions compared to the 2019 baseline, $50 \%$ reduction, taking into account higher sales
• Group-wide Green Energy Initiative for the generation and use of renewable energy developed and adopted in the reporting year
• $29 \%$ reduction in absolute Scope 3 emissions compared to the 2019 baselinealready above target
• $41 \%$ reduction in presented Scope 3 intensity
• Implementation of further measures in the Net Zero Roadmap to reduce upstream and downstream value chain emissions

Circular Economy

We aim to increase by at least 10\% from year to year the share of construction projects recording building materials digitally.

Promote life-cycle analyses by actively engaging with clients and carry out this analysis in at least 200 construction projects by 2025

In order to further improve our contribution to the circular economy, we have defined the following Group targets:

• Achieve annual recycling rate for waste of at least $80 \%$ by 2025 and increase the rate consecutively afterwards
• Reduce self-generated hazardous waste to less than $1 \%$ of total waste by 2030
• Achieve zero waste to landfill by 2045

By 2025: Promote reuse and increase the rate of recycled building materials steadily

• Digital recording on 192 active projects (2023: 18), marking an increase of $1,066 \%$ year on year.
• Substantial increase in the reporting year highlights the importance of digitalization also with regard to the circular economy
• Life-cycle analyses on a total of 143 projects (2023: 98) in all regions since 2022
• By using LCA, we develop sustainable and cost-efficient projects for our clients that are optimized over the entire life cycle
• Target once again achieved with waste recycling rate (including reuse) of $83 \%$ (2023: $88 \%$ )
• 7,184,122 metric tons of waste recovered by reuse and recycling
• The ratio of self-generated hazardous waste to total waste volume was less than $0.3 \%$ (2023: less than $1 \%$ )
• Significant improvements in recycling rates for construction materials used:
• Steel to $81 \%$ (2023: $67 \%$ )
• Concrete to $37 \%$ (2023: $22 \%$ )
• Asphalt to $45 \%$ (2023: $33 \%$ )
• The scope for using recycled construction materials depends very heavily on the type of project, regional circumstances, and also contractual arrangements

Water Protection

By 2025: Implement measures to reduce water consumption and achieve an annual water recycling/reuse rate of at least $10 \%$ of total water withdrawn

Promote water protection on all projects, implement water protection plans, and execute corresponding measures in $100 \%$ of the projects in water-stressed areas by 2023

• Water recycling rate of $27 \%$ (2023: 6\%), equivalent to a saving of 907,041 cubic meters (2023: 352,815 cubic meters).
• Close involvement of experts from the operational units coupled with the sharing of ideas in the international working group on water helped to save water by implementing water recycling on a large scale in the reporting year.
• We will continue to make wide-ranging efforts to save water and maintain this good performance.
• Water protection plans implemented for 113 out of 113 projects in water-stressed areas, corresponding to 100\% (2023: 100\%).
• Development of an approach for project-specific analysis of water risk

Biochemistry and Ecosystems

Create awareness and preserve biodiversity and ecosystems on all projects.

Implement biodiversity management action plans and execute corresponding measures in $\mathbf{1 0 0 \%}$ of the projects in environmentally sensitive areas by 2023

Establish and implement long-term initiatives to proactively preserve ecosystems and increase biodiversity

Sustainable Products and Services

We aim to stimulate innovation and develop sustainable products and services.

HOCHTIEF aims to achieve at least $50 \%$ of total infrastructure and building revenue from certified construction projects by 2025.

Provide sustainable solutions in bidding and/or during preconstruction processes of at least $50 \%$ of the construction projects by 2025.

• Biodiversity \& Ecosystems Impact Approach
• Extensive training and campaigns
• Development of an approach for project-specific risk analysis
• Target once again achieved by implementing biodiversity management action plans in 52 out of a total of 52 projects in environmentally sensitive areas, for $100 \%$ target achievement (2023: 100\%)
• Development of an approach for project-specific risk analysis
• Involvement of biodiversity experts in our projects
• Further advancement of HOCHTIEF strategy with project awards relating to the energy and mobility transition as well as to digital infrastructure.
• EUR 12.9 billion (2023: EUR 13.0 billion) generated from certified infrastructure and building construction projects
• In listings published by the renowned Engineering News-Record (ENR) industry magazine, Turner once again ranked first among the Top Green Contractors.
• Continued proposal of innovative ideas for sustainable project execution in dialogue with clients.
• Further increase in the proportion of projects with early contractor involvement
• In the reporting year, we proposed sustainable solutions in $50 \%$ of projects awarded to us

Social Update on selected targets

1 Thless' Sisters in Maintenance program aims to support Indigenous women to transition into the mining sector. The preapprenticeship program provides the women a pathway to pursue trade roles and long-term employment opportunities in the sector. 2140 runners took part in the Essen company run under the motto "together strong". Strengthening team spirit, promoting health - the sports event in the immediate vicinity of the Group's headquarters covers all this and more. | 3 In 2024, HOCHTIEF teams again took part in "Blke to Work" activities. In Germany, 107 employees cycled a total of 27,550 kilometers, thus avoiding the emission of 4,574 kilograms of $\mathrm{CO}_{2}$.

Our Goal in the Sustainability Plan

Health and Safety

Increase the percentage of total employees covered by Occupational Health and Safety certifications (such as ISO 45001) to $100 \%$ by 2023.

LTIFR of 1.04 by 2025 and long-term objective of 0.9 by 2030.

Improve the accident rates of contractors by increasing training and awareness in health and safety issues by 2025.

• Proportion increased in reporting year to 99.8\% (2023: 98.7\%)
• We aim to maintain this high level of coverage in future years, as it ensures that our occupational safety standards are adhered to by all employees.

LTIFR at 1.04 by 2025 and long-term objective of 0.9 by 2030.

• The lost time injury frequency rate (LTIFR) was 0.65 in the reporting year (2023: 0.88). This good outcome confirms the effectiveness of the management systems and prevention measures implemented in the field of occupational safety and health.
• We will continue to pursue these measures in the future in order to also achieve our target over the long term.

Improve the accident rates of contractors by increasing training and awareness in health and safety issues by 2025.

• LTIFR at contractors 2024: 0.44 (2023: 0.65); figure relates to Group companies CIMIC and Turner
• Tracking of the LTIFR at contractors in the remaining Group companies is in preparation in order to make LTIFR development measurable Group-wide in this part of the value chain.
• We provide training to raise safety and health awareness along our value chain on an ongoing basis.

100\% of new hires trained on health and safety by 2023.

• Once again in 2024, 100\% of new hires completed occupational safety and health training.
• We aim to maintain this level for the safety of our employees.

Accident-free project execution as well as zero fatalities among own employees and at subcontractors in all activities.

• It is with great sadness that we report having recorded a total of four fatal workrelated accidents in 2024, including three fatal accidents at subcontractors.
• Investigations to precisely analyze and clarify the causes of the accidents are still ongoing.

Depending on the situation on the labor market, the percentage of female technical trainees among new hires is to increase to at least $35 \%$ by 2025.

Increase the presence of women in senior management positions* by 50\% until 2025 compared to 2019.

We aim to further promote crossgenerational team working by 2025.

• The percentage of female engineering trainees stood at $30.5 \%$ in 2024 (2023: 30.1\%).
• We will continue to promote the recruitment of qualified female employees in order to achieve our target. As a benchmark, we monitor the employment market for women in technical occupations.
• The number of women in senior management positions* increased to $17.6 \%$ in 2024 (2023: 17.1\%).
• A considerable increase compared to 2019 confirms the effectiveness of the action we have taken. We aim for further improvement in the future.
• comprising the first and second level below management in each case
• We continued to promote collaboration in the reporting year through training and mentoring programs.

Training, Talent and Recruitment

$\square \square \square \square$

Increase the training hours per company to at least 20 hours per person by 2023.

We aim to promote specific training programs for young talent to facilitate their promotion within the Group.

More training with a focus on sustainability

• With 23.1 training hours per head in 2024 (Group-wide), we once again succeeded in matching the high level of the prior year (2023: 22.8 hours).
• We aim to keep up this good performance in future years.
• In the reporting year, company-specific training programs were supplemented at group level by the newly established ACS University.
• We have established suitable training programs and continue to fine-tune them.
• CIMIC offers a two-year or one-year (fast-track) graduate program for future leaders.
• At Turner, training is provided for entry-level professionals with the focus on basic engineering skills.
• Flatiron offers a forum for engineers with up to five years' professional experience.
• In Germany, young talents are offered training with various areas of focus. One example is project management.
• During the reporting period, we introduced new training programs in various formats related to the ESG dimensions.
• Environment-related training was provided in all segments-for example, on the ESG strategy at Turner and Flatiron and on relevant sustainability issues in the construction sector at HOCHTIEF Infrastructure in Germany.

Working Environment

Future turnover ranges are determined in the Group companies and will be monitored.

• The process is firmly established at HOCHTIEF. In November 2024, the target ranges were reviewed again.

Social Activities

Promote corporate volunteering initiatives regarding SDG 4 (Quality Education) and SDG 11 (Sustainable Cities and Communities).

By 2025, we aim to improve the monitoring of volunteer projects developed and to have implemented methodologies that allow us to measure the positive impact on the community.

Increase the budget for donations and sponsorship by 3\% annually until 2025 (started in 2022).

• We aim to continue supporting corporate volunteering initiatives while stepping up our efforts with regard to SDG 4 (Quality Education) and SDG 11 (Sustainable Cities and Communities).
• We have supplemented our reporting system to improve the monitoring of volunteering projects and track measurable targets.
• We increased our budget for donations and sponsoring activities across the Group to approximately EUR 6.4 million in 2024 (2023: EUR 6.1 million). Accordingly, we once again achieved our target.
• We continue to work on expanding our donation and sponsorship activities by $3 \%$ a year.

Governance Update on selected targets

8 HOCHTIEF

1 At HOCHTIEF's Annual General Meeting, CEO Juan Santamaría underlined: "Our success is based on our highly qualified and motivated employees. They deliver unique projects and top performance-with full commitment every single day. This deserves our utmost respect and recognition." | 2 HOCHTIEF's compliance managers meet once a year. At the 2024 compliance conference, they discussed topics such as risk analysis, ESG, human rights, embargoes and sanctions. | 3 Training is an important part of our compliance work.

Unit-corruption and Anti-bribery

Maintain 100\% of the employees trained in compliance training (including all new hires)

Responsible Supply Chain

By 2025: Include ESG criteria in 50\% of the significant supplier's selection process (based on procurement spend).

By 2025: Increase annually the percentage of suppliers receiving systematic post project assessment, with at least $50 \%$ of significant suppliers assessed

• During the reportig period, a training rate of more than 96 percent was achieved".
• This figure does not include CIMIC, who attend training there every two years. In 2023, CIMC had achieved a rate of 100 percent.)
• Significant increase: ESG criteria incorporated into 81\% (2023: 59\%) of key award decisions. This is based among other factors on the contractual acknowledgement of our Code of Conduct for Business Partners, ESG screening by external providers, and self-disclosure by our suppliers and subcontractors.

Tumer introduced a new supplier assessment system in the reporting year. Group-wide, around 48\% of significant suppliers underwent system-based assessment in 2024 following completion of contract execution.

• Rollout of supplier assessments to continue in 2025, including at HOCHTIEF in Europe. Flatiron plans to introduce such assessments in 2025. This means the total number of assessments will significantly increase in 2025.

Human Rights

T

Train 100\% of the employees in Human Rights Risks by 2025

Sustainability Governance

We aim to integrate ESG targets in the compensation of the Executive Board and Executives Group-wide, by 2025

• Target achievement through training on human rights matters in the European units as part of Code of Conduct training
• The 100\% target for 2025 continues to be pursued for the United States and Australia.
• Aim to achieve target also in subsequent years

- Sustainability targets have been integrated into the variable compensation for the Executive Board. The sustainability targets relate to the development of the health and safety key indicator Lost Time Injury Frequency Rate (LTIFR), the development of the proportion of women in top management positions and the reduction of $\mathrm{CO}_{2}$.

• The development of the health and safety key indicator LTIFR was also integrated into the performance-based remuneration of employees in management and expert levels 1 to 4 in the German companies.
• Similar policies for the compensation systems of other Group companies are still in the detailed planning phase and are expected to be implemented by the end of 2025 at the latest.

Sustainable Development Goals at HOCHTIEF

HOCHTIEF's contributions to the United Nations Sustainable Development Goals
HOCHTIEF is committed to the Agenda 2030 for Sustainable Development and has adopted the 17 Sustainable Development Goals (SDGs). In connection with our business activities, the goals and indicators are of relevance to sustainability management at the HOCHTIEF Group. In this overview, we point to HOCHTIEF's concrete contributions.

End poverty in all its forms everywhere:

• Construction of social infrastructure (cultural and educational properties, etc.)
• Collaboration with local subcontractors/SMEs
• Social corporate citizenship/donation and sponsorship projects for local communities

End hunger, achieve food security and improved nutrition and promote sustainable agriculture:

• Construction and preservation of transportation infrastructure
• Protection of ecosystems and sustainable processes during construction and operation of projects
• HOCHTIEF emissions target of "net zero" climate neutrality by 2045 in order to preserve the nat-

Ensure healthy lives and promote well-being for all at all ages:

• Active promotion of occupational safety and health; health offerings and sports exercise programs for employees
• Construction of healthcare properties
• Social corporate citizenship/donation and sponsorship projects for local communities

Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all:

• Extensive continuing education offerings for HOCHTIEF employees
• Construction and operation of educational properties
• Support for academic projects/collaboration with universities
• Social corporate citizenship/donation and sponsorship projects for local communities

"Achieve gender equality and empower all women and girls"

• Support for female students in STEM subjects at schools and universities
• Awareness training to combat unconscious bias
• HOCHTIEF initiatives and goals for more women in management positions

Ensure availability and sustainable management of water and sanitation for all:

• Construction of flood protection projects and water treatment plants
• Construction of water supply and wastewater disposal projects

Ensure access to affordable, reliable, sustainable, and modern energy for all:

• Construction of energy infrastructure projects
• Construction of sustainable/certified building and infrastructure projects
• Construction and operation of renewable energy projects

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[^0]: "Promote sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all"

- Support for businesses run by women and minorities
- Sustainable financing measures
- Human rights due diligence initiatives in the supply chain

Build resilient infrastructure, promote inclusive and sustainable industrialization, and foster innovation:

• Construction of sustainable, certified infrastructure projects
• Implementation of PPP models
• Expansion and new construction of transportation infrastructure as well as telecommunications grid expansion
• Group-wide digitalization and innovation projects
• Involvement in associations and industry initiatives
• Support for academic projects/collaboration with universities

Reduce inequality within and among countries:

• Support for employees in crises not of their own making
• Support for local communities

Make cities and human settlements inclusive, safe, resilient, and sustainable:

• Construction of sustainable, certified, and resilient projects
• Construction of cultural and educational properties, public buildings, and public transportation infrastructure
• Implementation of PPP models
• Corporate citizenship/donation and sponsorship projects for local communities
• Involvement in associations and industry initiatives

Ensure sustainable consumption and production patterns:

• Sustainability in procurement and in the value chain
• High standards in occupational health and safety as well as environmental protection
• Life cycle management
• Collaboration with rating company Integrity Next

Take urgent action to combat climate change and its impacts:

• Sustainability in the construction process and value chain
• Construction of flood protection projects and resilient infrastructure
• Involvement in associations and industry initiatives

Conserve and sustainably use the oceans, seas and marine resources

• Support for water protection in our project activities
• Measures to conserve biodiversity

Protect, restore, and promote sustainable use of terrestrial ecosystems:

• Sustainability in the construction process and value chain
• Measures to conserve biodiversity, e.g. rehabilitation measures

Promote peaceful and inclusive societies for sustainable development:

• Active compliance work
• Corporate citizenship/donation and sponsorship projects for local communities

Strengthen the means of implementation and revitalize the global partnership for sustainable development:

• Involvement in associations and industry initiatives
• Active participation in the "Wirtschaft macht Klimaschutz" initiative

Ten Principles of the UN Global Compact

HOCHTIEF reports in accordance with the principles of the UN Global Compact:

Index for the 10 Principles of the UN Global Compact (UNGC)
UNGC Principle	Location of the information in this Group Report (section) ${ }^{1}$
1: Businesses should support and respect the protection of internationally proclaimed human rights. 2: Businesses should make sure that they are not complicit in human rights abuses. 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining 4: Businesses should uphold the elimination of all forms of forced and compulsory labor. 5: Businesses should uphold the effective abolition of child labor. 6: Businesses should uphold the elimination of discrimination in respect of employment and occupation. 7: Businesses should support a precautionary approach to environmental challenges. 8: Businesses should undertake initiatives to promote greater environmental responsibility. 9: Businesses should encourage the development and diffusion of environmentally friendly technologies. 10: Businesses should work against corruption in all its forms, including extortion and bribery.	Goals and strategies: Own workforce: Workers in the value chain: Affected communities: Consumers and end-users: Business conduct Goals and strategies: Own workforce: Workers in the value chain: Affected communities: Business conduct Own workforce: Workers in the value chain Own workforce: Workers in the value chain Own workforce: Workers in the value chain Goals and strategies: Own workforce: Workers in the value chain Climate change: Pollution: Water and marine resources: Biodiversity and ecosystems: Resource use and circular economy Climate change: Pollution: Water and marine resources: Biodiversity and ecosystems: Resource use and circular economy: Own workforce Goals and strategies: Climate change: Pollution: Water and marine resources: Biodiversity and ecosystems: Resource use and circular economy Business conduct

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[^0]: ${ }^{1}$ The HOCHTIEF Code of Conduct likewise includes HOCHTIEF's commitment to the ten principles of the UN Global Compact.

Compensation report

This compensation report describes the essential features of the compensation systems for the Executive Board and Supervisory Board. In addition, the compensation received for 2024 by each member of the Executive Board and Supervisory Board of HOCHTIEF Aktiengesellschaft is individually disclosed. The report complies with the requirements of Section 162 of the German Stock Corporations Act (AktG) and is based on recommendations and requirements of the German Corporate Governance Code (GCGC). The compensation report for 2023 was approved by the Annual General Meeting on April 25, 2024 (agenda item 6) with a majority of $96.79 \%$ of votes cast.

Compensation of members of the Executive Board

Review of compensation in 2024

Compensation system

The current compensation system for members of the Executive Board is geared toward long-term, sustainable management. Criteria for determining the appropriateness of compensation comprise the duties of each member of the Executive Board, their personal performance, the economic situation, the performance and future prospects of the Company, as well as the customary level of compensation, taking peer companies into account. The objective of the compensation system is to support successful and sustainable management by linking the compensation of Executive Board members to both the short-term and long-term performance of the Company. It comprises personal and corporate performance parameters. Variable compensation components have a predominantly multi-year assessment basis and thus provide long-term incentives. The structure of long-term variable compensation, which also reflects share price performance, additionally ensures that the goals of management are aligned with immediate shareholder interests. The current compensation system for members of the Executive Board was adopted by resolution of the Supervisory Board following preparation by the Human Resources Committee and approved by the Annual General Meeting on April 25, 2024 (agenda item 8) with a majority of $96.84 \%$ of votes cast.

Determination and review of the compensation system

The Supervisory Board as a whole is responsible for adopting resolutions on the compensation system for members of the Executive Board and for setting individual compensation. In this, the Supervisory Board is supported by the Human Resources Committee. The latter oversees the appropriate structuring of the compensation system and prepares resolutions for the Supervisory Board.

In the event of material changes to the compensation system and, from 2021 at minimum once every four years, the compensation system is submitted to the Annual General Meeting for approval.

The compensation report was prepared jointly by the Executive Board and the Supervisory Board and is audited in terms of its form and content by the audit firm Deloitte GmbH Wirtschaftsprüfungsgesellschaft.

Relevant changes

To avoid duplication of functions, Martina Steffen, in her capacity as Chief Human Resources Officer/Labor Director of the HOCHTIEF Group, additionally assumed the role of Chief Human Resources Officer of the ACS Group from April 2024. ACS hence provides 25\% of Martina Steffen's total compensation.

Principles for determining compensation

The Executive Board compensation system contributes significantly to advancing the Group strategy.
Both the compensation system and the performance criteria (targets) for its variable components incentivize the Group's long-term, sustainable development.

The compensation system contributes significantly to ensuring alignment with the interests of shareholders, clients, employees, and other stakeholders.

Executive Board member performance is suitably recognized by setting adequate and ambitious performance criteria (targets) for the variable remuneration components (pay for performance).

The design of the compensation system reflects current market practice.

Setting of target compensation

In detail, the total target compensation comprises non-performance-related fixed compensation, fringe benefits, performance-related variable compensation comprising a Short-term Incentive Plan (STIP) and two Long-term Incentive Plans (LTIP I/II), and pension payments or pension benefits.

Fixed compensation makes up between $30 \%$ and $40 \%$ of target direct compensation, while variable compensation components equate to between $60 \%$ and $70 \%$ of target direct compensation. About two-thirds of variable compensation (LTIP I/II) are not at the immediate disposal of Executive Board members. This amount is dependent upon the development of future performance indicators and thus geared to the Company's long-term business performance.

Compensation structure

(Target direct compensation excluding fringe benefits and pension payments/pension expense)

• Fixed compensation
• one-year variable compensation at 100\% target achievement
• multi-year variable compensation at 100\% target achievement
• multi-year variable compensation at 100\% target achievement

The following table shows the contractually agreed target compensation with 100\% target achievement and the compensation structure as a percentage of target total compensation for 2023 and 2024.

Target compensation
	Sentencia Cases
	Chairman of the Executive Board Date joined: July 20, 2022
	2023	(\%)	2024	(\%)	2023 (pro rata from entry)		2024	(\%)
(EUR thousand)
Fixed compensation	499	23.42	517	23.38	191	24.39	279	24.26
Fringe benefits	1	0.05	5	0.23	2	0.26	8	0.70
Total	500	23.47	522	23.61	193	24.65	287	24.96
One-year variable compensation
Short-term Incentive Plan	649	30.46	672	30.39	241	30.78	352	30.61
Multi-year variable compensation
Long-term Incentive Plan I ${ }^{1}$	416	19.52	431	19.49	153	19.54	224	19.48
Long-term Incentive Plan II ${ }^{2}$ (five-year duration)	416	19.52	431	19.49	153	19.54	224	19.48
Total target direct compensation	1,981	93	2,056	93	740	95	1,087	95
Pension payment/pension expense	150	7	155	7	43	5	63	5
Total target overall compensation	2,131	100	2,211	100	783	100	1,150	100

Target compensation

		Chief Financial Officer Date joined: November 1, 2011
(EUR thousand)	2023	(\%)	2024	(\%)	2023	(\%)	2024 $^{3}$	(\%)
Fixed compensation	760	30.50	787	30.03	381	32.56	468	32.59
Fringe benefits	26	1.04	26	0.99	9	0.77	9	0.63
Total	786	31.54	813	31.02	390	33.33	477	33.22
One-year variable compensation
Short-term Incentive Plan	443	17.78	459	17.51	222	18.97	273	19.01
Multi-year variable compensation
Long-term Incentive Plan I ${ }^{1}$	443	17.78	459	17.51	222	18.97	273	19.01
Long-term Incentive Plan II ${ }^{2}$ (five-year duration)	443	17.78	459	17.51	222	18.97	273	19.01
Total target direct compensation	2,115	85	2,190	84	1,056	90	1,296	90
Pension payment/pension expense	377	15	431	16	114	10	140	10
Total target overall compensation	2,492	100	2,621	100	1,170	100	1,436	100

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[^0]: ${ }^{1}$ Transfer of shares with three-year lock-up period
${ }^{2}$ Granted as Long-term Incentive Plan (for details of the plans, please see pages 398 to 399); amount at grant date
${ }^{3}$ To avoid duplication of functions, Martina Steffen, in her capacity as Chief Human Resources Officer/Labor Director of the HOCHTEF Group, additionally assumed the role of Chief Human Resources Officer of the ACS Group from April 2024. ACS therefore provides 25\% of Martina Steffen's total compensation from then onward.

Third-party remuneration

When majority shareholder ACS set up the Long-Term Incentive Plan 2023-28, ACS granted Executive Board members Peter Sassenfeld and Martina Steffen 200,000 options each under Long-Term Incentive Plan 2 in 2023. ACS does not pass on the cost of the ACS stock options to HOCHTIEF.

Compliance with maximum compensation

In order to ensure that the compensation system has a balanced risk-reward profile and corresponding incentive effect, the variable compensation components are structured in such a way that they can fall in amount to zero or rise to a maximum of $200 \%$. Additionally, caps are agreed when granting LTIPs.

In addition, a compensation cap was set for all Executive Board members. The maximum annual compensation is EUR 9 million for the Chairman of the Executive Board and EUR 6 million for ordinary members of the Executive Board. HOCHTIEF defines the maximum compensation as the total compensation paid for the year in question (including fringe benefits, current service cost for post-employment benefits or the cost of the pension payment for the year concerned, and the amount paid out under the Long-term Incentive Plan for that year).

The maximum compensation for 2024 will first be able to be reviewed in 2028 to 2030 following exercise of the 2025 Long-term Incentive Plan, which is granted for 2024.

Appropriateness of compensation

The Supervisory Board regularly reviews the system and the appropriateness of individual compensation components as well as of compensation as a whole. In this connection, it considers the amount and structure of executive board compensation at peer companies (horizontal benchmark) and the ratio of Executive Board compensation to employee compensation, including over time (vertical benchmark).

The review for appropriateness and market conformity of Executive Board compensation has to date been based on comparison with compensation at the companies listed in the MDAX index. Given HOCHTIEF's index inclusion and the key indicators sales, number of employees, and market capitalization, the MDAX comparison is a valid benchmark.

For the vertical benchmark, the Supervisory Board looks at compensation both at the level of managerial employees and at the level of the workforce in Germany over time.

Application of the compensation system in 2024

Compensation components	Structure	Objectives and strategic aim
Fixed compensation	Fixed contractual compensation paid in 12 monthly installments.	- Reflects Executive Board role, experience, area of responsibility, and market conditions. - Ensures adequate income to prevent entering into inappropriate risks.
Fringe benefits	Costs of preventive medical examinations, insurance, amounts to be recognized for tax purposes for private use of company cars, expatriation expenses, tax consulting costs.	- Reimbursement of costs and compensation for economic disadvantages that arise in relation to Executive Board service.
Short-term incentive Plan (STIP)	One-year variable compensation, dependent on financial and non-financial performance criteria (targets).	- Achievement of business goals for the respective year. - Incentivizes profitable growth and stable cash flow. - Takes into account operational success at Group level. - Firmly enshirines the sustainability strategy in Executive Board compensation.
Long-term incentive Plan I (LTIP I)/Share ownership	Multi-year variable compensation, dependent on financial and non-financial performance criteria (targets). Paid out by transfer of shares.	- Provides incentive to sustainably increase corporate value over the long term. - Focus on capital market performance. - Takes the interests of our stakeholders into account.
Long-term incentive Plan II (LTIP II)	Multi-year variable compensation, dependent on financial and non-financial performance criteria (targets). Paid out by the granting of an annual Long-term incentive Plan.	- Provides incentive to sustainably increase corporate value over the long term. - Focus on capital market performance and stable cash flow. - Takes the interests of our stakeholders into account.
Pension payment/ pension benefits	- Needs appointed Executive Board members (from 2021) receive a lump-sum pension payment that is paid out directly. - The other Executive Board members receive an individual pension award setting the minimum pension age at 65 .	- Provides adequate retirement benefits.
Maximum total compensation	- Variable compensation may decrease to zero or increase to $200 \%$. - Maximum amounts (caps) for the Long-term Incentive Plans. - The maximum annual compensation is EUR 9 million for the Chairman of the Executive Board and EUR 6 million for ordinary members of the Executive Board.	- Avoids inappropriately high payouts.
Malus/clawback arrangement	- Clawback right under Section 87 (2) of the German Stock Corporations Act (AWG). - For every Executive Board member it is possible to reduce or claw back variable compensation components in the event of serious breaches of statutory obligations or in-house codes of conduct.	- Ensures appropriateness of variable compensation. - Ensures sustainable corporate development.
Continuation of payment in the event of illness	- In the event of incapacity, entitlement to the fixed annual salary and the pro rata variable compensation is retained for a period of 12 months.	- Provides adequate sickness benefits.
Arrangements in the event of termination of contract	- In the event of early termination, severance awards will not exceed the value of two years' annual compensation (severance cap). - There is no special right of termination or entitlement to any severance award in the event of a change of control. - If their contract is not extended, Executive Board members who were appointed before 2021 receive a severance award equaling one year's fixed compensation. - In the event of termination of contract, multi-year variable compensation components are paid out in accordance with the originally agreed targets and the contractually specified due dates or holding periods. - The contracts do not include a post-contractual non-compete clause. In exercise of its professional judgment, the Supervisory Board is authorized to agree a post-contractual non-compete clause (with compensation) in suitable cases.	- Cap on benefits in the event of early termination of Executive Board service in accordance with the German Corporate Governance Code. - Avoidance of inappropriately high payments.
Sideline activities	- Interests in companies and paid or unpaid sideline activities-including office in supervisory bodies or advisory boards-that affect the interests of HOCHT\&F, its subsidiaries or associates, or Executive Board service may only be assumed with the approval of the Supervisory Board. There is normally no entitlement to further compensation for holding office on the boards of other companies in which the Company has a direct or indirect interest. Only in exceptional cases may the Supervisory Board resolve not to deduct any such compensation. - Upon assumption of supervisory board positions outside the Group, the Supervisory Board will decide whether and to what extent the compensation is also to be deducted in such cases.	- Focus on Executive Board service. - Avoidance of inappropriately high payments.
Third-party remuneration	- Participation by Executive Board members in Long-term Incentive Plans of the main shareholder ACS is permitted under this remuneration system, but is only approved by the Supervisory Board after reviewing the appropriateness of the total remuneration and after assessing a potential conflict of interest. As so-called third-party remuneration, any participation in the Long-term Incentive Plans of the main shareholder ACS is not part of the total target overall remuneration within the meaning of this remuneration system and is also not included in the maximum total remuneration.	- Incentive to increase the value of the Company sustainability and over the long-term, taking into account the strategic goals of main shareholder ACS

Fixed compensation

Fixed compensation for members of the Executive Board was paid pro rata as a monthly salary.

Fringe benefits

In addition to the fixed compensation, the members of the Executive Board also received fringe benefits. These primarily comprised amounts to be recognized for tax purposes for private use of company cars and other noncash benefits.

Variable compensation

Variable compensation is intended to provide the right incentives for the Executive Board to act in keeping with the corporate strategy and in the interests of shareholders, clients, employees, and other stakeholders. In order to ensure that the corporate strategy is implemented in line with the long-term and sustainable development of the Company, financial and non-financial annual targets are derived whose attainment is incentivized with variable compensation. The variable compensation is intended as remuneration for performance. If targets are not met, variable compensation can drop to zero.

Performance criteria	Weighting	Incentive effect and strategic goal
Consolidated net profit	$40 \%$	Generating net income enables the Group to reinvest in the business, seize growth opportunities, and distribute profits to shareholders.
Adjusted free cash flow	$40 \%$	Targeting cash-backed profit ensures earnings quality and requires management to focus on free cash flow.
ESG targets 2024 1. Health \& safety 2. Women quota in senior management positions 3. Carbon reduction	$20 \%$	The ESG targets are important for implementation of the adopted Sustainability Plan 2025.

Since 2024, 80\% (2023: 90\%) of variable compensation for members of the Executive Board has been tied to financial targets and 20\% (2023: 10\%) to a non-financial environmental, social, and governance (ESG) target. In accordance with the corporate strategy, financial targets are based $50 \%$ on consolidated net profit and $50 \%$ on adjusted free cash flow. Generating net income enables the Group to reinvest in the business, seize growth opportunities, and distribute profits to shareholders. Targeting cash-backed profit ensures earnings quality and requires management to focus on free cash flow. Focusing on consolidated net profit and free cash flow is therefore an integral and essential part of the Group strategy.

In addition, at least one ESG target is included as a non-financial target. The Supervisory Board will use its professional judgment in defining this target and also retains the authority to set two or three ESG targets as well as, in the same connection, raising ESG targets to 20\% of the total. For 2024, the Supervisory Board set three ESG targets and increased their proportion of the total to $20 \%$.

Both for the individual financial targets and for the ESG targets, the potential target achievement rate ranges from $0 \%$ to $200 \%$. If actual target achievement is at or below the lower end of that range, the target achievement rate is always $0 \%$. Should the target achievement rate be $0 \%$ for all targets, the overall target achievement rate is also $0 \%$ and there is no STIP and LTIP I payout and no Long-term Incentive Plan award to fulfill the LTIP II compensation component. If actual target achievement is at or above the upper end of the range, the 200\% maximum target achievement rate applies.

In the exercise of its professional judgment and having regard to budgeting, the Supervisory Board will set targets for the key performance indicators of consolidated net profit and (adjusted) free cash flow as well as for the ESG target prior to or at the beginning of each financial year. These are set uniformly for all members of the Executive Board. The targets and benchmark parameters are not subsequently altered.

At the end of each year, on the basis of Group performance in the year concerned, the Supervisory Board determines overall target achievement for variable compensation on approval of the annual financial statements. For the purposes of target/actual comparison-if there have been any material acquisitions, divestments, or other non-recurring events-the target achievement rates for the financial targets are adjusted to factor out the effect of the transactions concerned. In accordance with the first sentence of Recommendation G. 11 of the German Corporate Governance Code, the Supervisory Board is required to have the option of allowing for exceptional developments to an appropriate extent when determining target achievement.

Consolidated net profit

Adjusted free cash flow

Plan/actual comparison (in \%)

For 2024, 80\% of overall target achievement in respect of variable compensation for members of the Executive Board was tied to financial targets and 20\% to non-financial sustainability targets. Consolidated net profit amounted to EUR 776 million in 2024. This represents a target achievement rate of $200 \%$ for this financial target. Since the plan/actual comparison of adjusted free cash flow is higer than $110 \%$, the target achievement rate for this financial target was 200\% in 2024. In addition, the following non-financial ESG targets were adopted for 2024. The first ESG target related to the health and safety indicator, LTIFR (lost time injury frequency rate). As the LTIFR indicator has fallen to $53.23 \%$ compared to the average of the last three years, this target was 200\% achieved. The second ESG target related to achieving the specified women quota in senior management positions. As the women quota has risen to $113.83 \%$ compared to the average of the last three years, the target achievement was 127.67\%. The third ESG target was based on carbon reduction. This related to the development of a Group-wide action plan and a corresponding implementation plan for the provision of renewable energy. As an action plan and implementation plan were adopted, achievement of this non-financial targets was 200\%. Taking into account the relevant weighting, the overall target achievement for the variable compensation for 2024 is $196.38 \%$.

ESG targets

LTIFR 2024 at the average of the last 3 years (in \%)

Women quota at the average of the last 3 years (in \%)

Total target achievement in 2024 for variable compensation (STIP/LTIP I / LTIP II)

	Target achievement		Weighting			Result
Consolidated net profit	200.00\%		40\%			80.00\%
Adjusted free cash flow	200.00\%		40\%			80.00\%
Health \& Safety / LTIFR (lost time injury frequency rate)	200.00\%		10\%			20.00\%
Women quota in senior management positions	127.67\%		5\%			6.38\%
Carbon reduction: development of a Group-wide action plan and implementation plan for the provision of renewable energy	200.00\%		5\%			10.00\%
Total target achievement						196.38\%
	Target compensation at 100\% (budgeted amount) (EUR thousand)			Amount granted and owed for 2024 based on overall target achievement (EUR thousand)
	Short-term Incentive Plan	Long-termIncentive Plan I	Long-termIncentive Plan II	Short-term Incentive Plan	Long-termIncentive Plan I	Long-termIncentive Plan II
Santamaría Cases	672	431	431	1,319	846	846
Muriel Bernal	352	224	224	691	439	439
Sassenfeld	459	459	459	901	901	901
Steffen	273	273	273	536	536	536

Depending on the composition of each Executive Board member's compensation, about one-third of the variable compensation is paid out in cash (STIP). About another one-third of post-tax variable compensation is paid by transferring shares in HOCHTIEF Aktiengesellschaft to an Executive Board member's custody account. Executive Board members can freely dispose of these dividend-bearing shares only after a three-year vesting period (LTIP I - Deferral). This ensures share ownership in HOCHTIEF by members of the Executive Board.

Variable compensation

'one-year variable compensation 'multi-year variable compensation

The remaining approximately one-third of the variable compensation (LTIP II) is matched by granting a Long-term Incentive Plan, which is relaunched annually and has a three-year vesting period. This ensures that the amounts awarded for long-term incentive components I (deferral) and II are dependent on achievement of the targets for the respective year and thus are linked to a minimum of four years' performance.

Under the Long-term Incentive Plan, Executive Board members are granted performance stock awards (PSAs). For this purpose, the amount for the LTIP II compensation component is converted into a quantity of performance stock awards based on the fair value per PSA. Under the plan conditions, for each PSA exercised within a two-year exercise period following a three-year waiting period, Executive Board members receive a payment entitlement equal to the closing price of HOCHTIEF stock on the last stock market trading day before the exercise date, plus a performance bonus. The size of the performance bonus depends on target achievement on adjusted free cash flow in the last complete year before the exercise date. The performance bonus can be between 0\% and $200 \%$ of the stock market closing price of HOCHTIEF stock on the last stock market trading day before the exercise date. Both the stock price and the performance bonus are capped so that the amount of compensation stays appropriate even in the event of exceptional, unforeseeable developments.

Long-term Incentive Plans exercised in 2024

Long-term Incentive Plans granted and not yet exercised

Share ownership

As a result of the LTIP I component being granted in shares, the Executive Board members hold barred HOCHTIEF shares as follows:

	Number of barred shares as of Decem- ber 31, 2024 from the granting of LTIP Component 1 in the last three years	Value based on closing price of HOCHTIEF share* as of December 30, 2024 (EUR thousand)	Value as percentage of fixed compensation (extrapolated to an annual fixed compensation)
Santamaría Cases	6,075	788	152\%
Murial Bernal	1,625	211	76\%
Sassenfeld	11,355	1,473	187\%
Steffen	4,987	647	138\%

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[^0]: ${ }^{1}$ The closing price of the HOCHTIEF share as of December 30, 2024 was EUR 129.70.

## Pension payment/pension benefits

A company pension is no longer provided for new appointees from 2021 onward. Newly appointed Executive Board members receive a lump-sum pension payment to establish private pension provision that is paid out directly. The pension payment is set for members of the Executive Board by the Supervisory Board when establishing the structure of compensation and amounts to between $20 \%$ and $40 \%$ of the applicable fixed compensation. This eliminates all interest-rate risks and other biometric risks to the Company with regard to financing pension benefits. It also cuts out the complexity resulting from actuarial calculations and administration. Financing retirement provision is thus placed in the hands of Executive Board members.

The table below shows the pension payments incurred for 2024 for members of the Executive Board in office during the reporting year:

(EUR thousand)	Pension payment
	2024	155
Santamaría Cases	2023	150
	2024	63
Muriel Bernal (pro rata from entry)	2023	43
	2024	140
Steffen	2023	114
	2024	$\mathbf{3 5 8}$
Total	$\mathbf{2 0 2 3}$	$\mathbf{3 0 7}$

All members of the Executive Board who were appointed before 2021 have company pension plans in the form of individual contractual pension arrangements that provide for a minimum pension age of 65 . The amount of the pension is determined as a percentage of fixed compensation, the percentage rising with the number of years in office. The maximum amount an Executive Board member can receive is $65 \%$ of their final fixed compensation. Surviving dependents receive $60 \%$ of the pension. For material modifications to existing contracts, the Human Resources Committee reviews pension provision for the members of the Executive Board as well as the resulting annual and long-term pension expense to the Company. With the aid of an actuarial report, the annual pension expense (service cost) needed to meet the vested pension benefits, including surviving dependents' benefits, is calculated for life from retirement age. Retirement and surviving dependents' benefits are reviewed every three years in accordance with Section 16 of the German Occupational Pensions Act (BetrAVG) and adjusted for the increase in the German consumer price index over the comparison period.

The table below shows the pension expense incurred for 2024 and the amount of the pension obligations for members of the Executive Board in office in the reporting year in accordance with IFRS:

(EUR thousand)		Service cost	Interest expense	Total	Present value of pension benefits
	2024	431	187	618	6,169
Sassenfeld	2023	377	188	565	5,335
Executive Board total	2024	431	187	618	6,169
	2023	377	188	565	5,335

Compliance with maximum compensation for 2020 by the exercise in full of LTIP 2021 in 2024.
It was not possible to review the maximum compensation for 2020 until 2024 following the exercise in full of the 2021 Long-term Incentive Plan granted to provide the LTIP II compensation component for 2020.

With all compensation components taken into account, compliance with the maximum compensation in the amount of EUR 6 million was ensured for Mr. Sassenfeld.

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[^0]: ${ }^{1}$ Transfer of shares with three-year look-up period
${ }^{2}$ Expense (amount paid out at exercise date)

None of the other members of the Executive Board were already in office in 2020, making a compliance check unnecessary.

Malus/clawback arrangement

Pursuant to Section 87 (2) of the German Stock Corporations Act (AktG), variable compensation is subject to a clawback right in the event of deterioration in the Company's situation.

In addition, all Executive Board contracts feature malus/clawback arrangements that make it possible to reduce or claw back variable compensation components in the event of serious breaches of statutory obligations or inhouse codes of conduct. The limited-term clawback right continues to apply after termination of Executive Board service. Its exercise is subject to the professional judgment of the Supervisory Board.

In the reporting year, the Supervisory Board did not reduce or claw back any variable compensation components.

Continuation of payment in the event of illness

In the event of medically certified incapacity, Executive Board members retain the right to their fixed annual salary and pro rata entitlements to variable compensation for the duration of 12 months, but not beyond the termination of their contract. The same applies if an Executive Board member is prevented from performing his or her duties on account of other reasons for which they are not responsible.

There was no such case of illness in the reporting year.

Arrangements in the event of termination of contract

In case of early termination of Executive Board mandates, severance payments will not exceed the value of two years' annual compensation (severance cap) and compensation will not be payable for more than the remaining term of the contract. There is no special right of termination or entitlement to any severance award in the event of a change of control.

If their contract is not extended (i.e., upon regular termination), Executive Board members who were appointed before 2021 receive a severance award equaling one year's fixed compensation. For the severance award to be payable, an Executive Board member must, on termination of contract, be in at least the second term of office as a member of the Executive Board and under the age of 65.

In the event of termination of contract, multi-year variable compensation components are paid out in accordance with the originally agreed targets and the contractually specified due dates or holding periods.

The contracts do not include a post-contractual non-compete clause. In exercise of its professional judgment, the Supervisory Board is authorized to agree a post-contractual non-compete clause (with compensation) in suitable cases.

No agreement on termination of contract was entered into in 2024.

Loans and advances

No loans or advances have been granted to any member of the Executive Board.

Exercise of sideline activities by Executive Board members

Interests in companies and paid or unpaid sideline activities-including office in supervisory bodies or advisory boards - that affect the interests of HOCHTIEF, its subsidiaries or associates, or Executive Board service may only be assumed with the approval of the Supervisory Board. Compensation for holding office on the boards of other companies in which HOCHTIEF has a direct or indirect interest was either not paid out to the Executive Board members or was set off against their Executive Board compensation. Only in exceptional cases may the Supervisory Board resolve not to deduct any such compensation. All corresponding sideline activities were deducted in the reporting year.

Furthermore, under all Executive Board contracts, it was stipulated that, upon assumption of supervisory board positions outside the Group, the Supervisory Board will decide whether and to what extent the compensation is to be deducted also in such cases.

The relevant Executive Board members did not assume any supervisory board positions outside the Group in the reporting year.

Third-party remuneration

No additional third-party remuneration was granted in the financial year.

Disclosures on the amount of Executive Board compensation in 2024 and 2023

Disclosure of compensation granted and owed to active Executive Board members

The following table shows the compensation granted and owed to active Executive Board members for the years 2023 and 2024. The compensation granted and owed shows the compensation contractually due to the Executive Board member for the service performed in full in the relevant year.

Compensation granted and owed
		Sententaria Cases Chairman of the Executive Board Date joined: July 20, 2022			Muriel Bernal Member of the Executive Board Date joined: April 17, 2023
	2023		2024		2023 (pro rata from entry)		2024
	(in %)	(in \%)	(thousand)	(in \%)	(thousand)	(in \%)	(in \%)	(in \%)
Fixed compensation	499	13.82	517	14.02	191	14.36	279	14.54
Fringe benefits	1	0.03	5	0.14	2	0.15	8	0.42
Total	500	13.85	522	14.16	193	14.51	287	14.96
One-year variable compensation
Short-term Incentive Plan for 2023	1,298	35.94	-	-	482	36.24	-	-
Short-term Incentive Plan for 2024	-	-	1,319	35.76	-	-	691	36.01
Multi-year variable compensation
Long-term Incentive Plan I for 2023 ${ }^{1}$	832	23.03	-	-	306	23.01	-	-
Long-term Incentive Plan I for 2024 ${ }^{1}$	-	-	846	22.94	-	-	439	22.88
Long-term Incentive Plan II for 2023 ${ }^{13}$ (LTIP 2024 - five-year duration)	832	23.03	-	-	306	23.01	-	-
Long-term Incentive Plan II for 2024 ${ }^{13}$ (LTIP 2025 - five-year duration)	-	-	846	22.94	-	-	439	22.88
Total	3,462	96	3,533	96	1,287	97	1,856	97
Pension payment	150	4	155	4	43	3	63	3
Total overall compensation (in accordance with Section 162 AktG)	3,612	100	3,688	100	1,330	100	1,919	100
Compensation granted and owed
						Steffen Member of the Executive Board Date joined: September 16, 2021
	2023		2024		2023		2024 ${ }^{2}$
	(in $\%$	(in \%)	(thousand)	(in \%)	(thousand)	(in \%)	(thousand)	(in \%)
Fixed compensation	760	22.05	787	22.38	381	20.75	468	21.03
Fringe benefits	26	0.75	26	0.74	9	0.49	9	0.40
Total	786	22.80	813	23.12	390	21.24	477	21.43
One-year variable compensation
Short-term Incentive Plan for 2023	887	25.73	-	-	444	24.18	-	-
Short-term Incentive Plan for 2024	-	-	901	25.63	-	-	536	24.09
Multi-year variable compensation
Long-term Incentive Plan I for 2023 ${ }^{1}$	887	25.73	-	-	444	24.18	-	-
Long-term Incentive Plan I for 2024 ${ }^{1}$	-	-	901	25.63	-	-	536	24.09
Long-term Incentive Plan II for 2023 ${ }^{13}$ (LTIP 2024 - five-year duration)	887	25.73	-	-	444	24.18	-	-
Long-term Incentive Plan II for 2024 ${ }^{13}$ (LTIP 2025 - five-year duration)			901	25.63			536	24.09
Total	3,447	100	3,516	100	1,722	94	2,085	94
Pension payment	-	-	-	-	114	6	140	6
Total overall compensation (in accordance with Section 162 AktG)	3,447	100	3,516	100	1,836	100	2,225	100

[^0]
[^0]: ${ }^{1}$ Transfer of shares with three-year lock-up period
${ }^{2}$ Granted as Long-term Incentive Plan (for details of the plans, please see pages 398 to 399); amount at grant date
${ }^{3}$ On reaching the age of 65, retirement, incapacity to work, or termination of employment by mutual agreement, the performance stock awards may still be exercised.
${ }^{4}$ To avoid duplication of functions, Martina Steffen, in her capacity as Chief Human Resources Officer/Labor Director of the HOCHTIEF Group, additionally assumed the role of Chief Human Resources Officer of the ACS Group from April 2024. ACS therefore provides 25\% of Martina Steffen's total compensation from then onward.

Disclosure of compensation of former Executive Board members

Mr. Fernández Verdes has received a pension of EUR 691 thousand. In addition, in accordance with the plan conditions, the 2021 LTIP was paid out in the 2024 financial year to Mr. Legorburo in the amount of EUR 449 thousand and to Mr. von Matuschka in the amount of EUR 514 thousand. The pension is a fully fixed remuneration and the LTIP 2021 is a purely variable remuneration component.

Payments to other former members of the Executive Board amounted to EUR 4,314 thousand in 2024 (2023: EUR 3,799 thousand).

Compensation of members of the Supervisory Board Structure of Supervisory Board compensation

By resolution of the Annual General Meeting of May 6, 2015, Supervisory Board members receive only fixed remuneration. The compensation system for Supervisory Board members, including the compensation arrangement under Section 18 of the Articles of Association, was confirmed by resolution of the Annual General Meeting of May 6, 2021.

In accordance with Section 18 (1) of the Articles of Association, each member of the Supervisory Board receives a fixed compensation of EUR 65,000 per calendar year plus a fee of EUR 2,000 per meeting of the Supervisory Board or the Audit Committee attended and a fee of EUR 1,500 per meeting of any other committee of the Supervisory Board attended. In addition, members of the Supervisory Board receive reimbursement of their expenses including any value added tax which may be payable on their compensation.

In accordance with Section 18 (2) of the Articles of Association, the Chairman of the Supervisory Board receives three times the amount of the above fixed fee, their deputy and the chairman of any committee of the Supervisory Board are paid twice the amount, and the other members of such committees are paid one and a half times the amount. Any member of the Supervisory Board who holds more than one of these positions at any time receives the appropriate payment for the position to which the highest payment is attached. Persons who are members of the Supervisory Board for only part of any financial year receive a pro rata share of the compensation for the financial year concerned calculated on the basis of the duration of their membership.

The fixed compensation and the attendance fees are due at the end of the respective year. The Supervisory Board compensation and the attendance fees for 2024 were paid in January 2025.

Disclosures on the amount of Supervisory Board compensation in 2024 and 2023

The expense for fixed compensation, meeting attendance fees, and compensation for offices held at Group companies came to EUR 2,231 thousand (2023: EUR 2,322 thousand, excluding value added tax) in 2024.

The following table shows the amount of total compensation payable to the individual Supervisory Board members incumbent in 2024 compared with the prior year. In addition, individual members of the Supervisory Board of HOCHTIEF Aktiengesellschaft who hold offices at Group companies received compensation for their services, which is also shown in the table. The amounts and percentages shown in the last line of the following table ("Supervisory Board total") for 2023 relate to all members of the Supervisory Board incumbent in 2023; this also includes the figures for the four former members of the Supervisory Board who left during 2023.

(EUR)	2023		2024		2023		2024
	Fixed compensation (excluding value added tax)	in \%	Fixed compensation (excluding value added tax)	in \%	Attendance fees (excluding value added tax)	in \%	Attendance fees (excluding value added tax)	in \%
Pedro López Jiménez	195,000	55.19	195,000	57.60	19,500	5.52	16,000	4.73
Nicole Simons	102,375	82.31	130,000	87.84	22,000	17.69	18,000	12.16
Cristina Aldamiz-Echevarría González de Durana (from October 13, 2023)	18,958	90.46	97,500	84.42	2,000	9.54	18,000	15.58
Fritz Bank	97,500	84.42	97,500	84.42	18,000	15.58	18,000	15.58
Beate Bell	97,500	85.53	97,500	87.05	16,500	14.47	14,500	12.95
Christoph Breimann (until March 31, 2024)	97,500	81.59	24,375	85.90	22,000	18.41	4,000	14.10
José Luis del Valle Pérez	97,500	36.68	97,500	39.15	29,500	11.10	24,000	9.64
Ángel García Altozano	97,500	81.59	97,500	84.42	22,000	18.41	18,000	15.58
Dr. rer. pol. h. c. Francisco Javier García Sanz	130,000	85.53	130,000	87.84	22,000	14.47	18,000	12.16
Arno Gellweiler (from January 16, 2024)	-	-	90,188	84.93	-	-	16,000	15.07
Jörg Laue (from April 1, 2024)	-	-	70,958	85.53	-	-	12,000	14.47
Natalie Moser	97,500	85.53	97,500	87.05	16,500	14.47	14,500	12.95
Nikolaus Paraskevopoulos	97,500	89.04	97,500	90.70	12,000	10.96	10,000	9.30
Prof. Dr. Mirja Stankamp	97,500	81.59	97,500	84.42	22,000	18.41	18,000	15.58
Klaus Stümper	97,500	78.63	97,500	81.25	26,500	21.37	22,500	18.75
Björn Willuwa (from January 16, 2024)	-	-	90,188	87.40	-	-	13,000	12.60
Christine Wolff	97,500	83.33	97,500	85.90	19,500	16.67	16,000	14.10
Supervisory Board total	1,715,097	73.87	1,705,709	76.45	323,000	13.91	270,500	12.12

(EUR)	2023		2024		2023		2024
	Compensation for offices held at subsidiaries of HOCHTEF Akbengesellschaft	in \%	Compensation for offices held at subsidiaries of HOCHTEF Akbengesellschaft	in \%	Total compensation (excluding value added tax)		Total compensation (excluding value added tax)
Pedro López Jiménez	138,832	39.29	127,526	37.67	353,332		338,526
Nicole Simons	-	-	-	-	124,375		148,000
Cristina Aldamiz-Echevarría González de Durana (from October 13, 2023)	-	-	-	-	20,958		115,500
Fritz Bank	-	-	-	-	115,500		115,500
Beate Bell	-	-	-	-	114,000		112,000
Christoph Breimann (until March 31, 2024)	-	-	-	-	119,500		28,375
José Luis del Valle Pérez	138,832	52.23	127,526	51.21	265,632		249,026
Ángel García Altozano	-	-	-	-	119,500		115,500
Dr. rer. pol. h. c. Francisco Javier García Sanz	-	-	-	-	152,000		148,000
Arno Gellweiler (from January 16, 2024)	-	-	-	-	-		106,188
Jörg Laue (from April 1, 2024)	-	-	-	-	-		82,958
Natalie Moser	-	-	-	-	114,000		112,000
Nikolaus Paraskevopoulos	-	-	-	-	109,500		107,500
Prof. Dr. Mirja Stankamp	-	-	-	-	119,500		115,500
Klaus Stümper	-	-	-	-	124,000		120,000
Björn Willuwa (from January 16, 2024)	-	-	-	-	-		103,188
Christine Wolff	-	-	-	-	117,000		113,500
Supervisory Board total	283,664	12.22	255,052	11.43	2,321,761		2,231,261

Comparative presentation of compensation and income developments

The following overview shows the relative development of the compensation granted and owed to Executive Board and Supervisory Board members in the respective year compared with the average compensation of employees (full-time equivalents) ${ }^{1}$ in Germany and key earnings indicators.

[^0]

Compensation outlook for 2025

The Supervisory Board does not plan to make any changes in 2025 to the compensation system for members of the Executive Board. An adjustment to the remuneration of Supervisory Board members is currently being examined and will be proposed to the Annual General Meeting if necessary.

[^0]: ${ }^{1}$ Fixed and variable compensation of all employees in Germany including trainees, work-study students, and interns.
${ }^{2}$ For 2022, the compensation of Mr. Marcelino Fernández Verdes as a current and former member of the Executive Board is combined.
${ }^{3}$ Includes compensation figures for former members of the Executive Board still stated on an individualized basis for 2020 and 2021 as no personal data is to be published after expiration of the 10-year period stipulated in Section 162 (5) of the German Stock Corporations Act (AktG).

Forward-looking statements

This Group Report contains forward-looking statements. These statements reflect the current views, expectations and assumptions of the Executive Board of HOCHTIEF Aktiengesellschaft concerning future events and developments relating to HOCHTIEF Aktiengesellschaft and/or the HOCHTIEF Group and are based on information currently available to the Executive Board of HOCHTIEF Aktiengesellschaft. Such statements involve risks and uncertainties and do not guarantee future results (such as profit before tax or consolidated net profit) or developments (such as with regard to possible future divestments, planned investments or acquisitions, general business activities or business strategy). Actual results (such as profit before tax or consolidated net profit), dividends and other developments (such as with regard to possible future divestments, planned investments or acquisitions, general business activities or business strategy) relating to HOCHTIEF Aktiengesellschaft and the HOCHTIEF Group may therefore differ materially from the expectations and assumptions described or implied in such statements due to, among other things, changes in the general economic, sectoral and competitive environment, capital market developments, currency exchange rate fluctuations, changes in international and national laws and regulations, in particular with respect to tax laws and regulations, the conduct of other shareholders, and other factors. Any information provided on dividends is additionally subject to the recognition of a corresponding unappropriated net profit in the published separate financial statements of HOCHTIEF Aktiengesellschaft for the fiscal year concerned and the adoption by the competent decision-making bodies of HOCHTIEF Aktiengesellschaft of appropriate resolutions taking into account the prevailing situation of the Company. Aside from statutory publication obligations, HOCHTIEF Aktiengesellschaft does not assume any obligations to update any forward-looking statements.

Five-year summary

		2020	2021	2022	2023	2024
New orders ${ }^{1}$ (EUR million)		23,070	30,162	30,067	36,677	41,800
	Of total: domestic	1,242	902	997	2,862	1,433
	international	21,828	29,260	29,070	33,815	40,367
Work done ${ }^{1}$ (EUR million)		24,550	24,857	29,187	30,870	35,476
	Of total: domestic	981	1,052	1,046	1,058	1,099
	international	23,569	23,805	28,141	29,812	34,377
Order backlog ${ }^{1}$ at year-end (EUR million)		45,840	51,916	51,404	55,325	67,584
	Of total: domestic	3,009	2,926	2,803	4,557	4,820
	international	42,831	48,990	48,601	50,768	62,764
Employees at year-end (number)		46,644	33,835	36,858	41,575	56,875
	Of total: domestic	3,445	3,289	3,261	3,238	3,445
	international	$43,199^{2}$	30,546	33,597	38,337	53,430
External sales (EUR million)		22,954	21,378	26,219	27,756	33,301
Increase/(decrease) on prior year (\%)		$-11.2$	$-6.9$	22.6	5.9	20.0
Materials (EUR million)		17,435	16,116	19,922	20,918	24,541
Materials ratio (\%)		75.9	75.3	75.9	75.3	73.7
Personnel costs (EUR million)		4,419	3,750	4,470	4,811	6,081
Payroll ratio (\%)		19.2	17.5	17.0	17.3	18.3
Depreciation and amortization (EUR million)		704	314	344	321	594
Net income from participating interests (EUR million)		127	174	293	314	114
Net investment and interest income (EUR million)		(155)	(125)	(125)	(153)	(265)
Profit before tax-continuing operations (EUR million)		882	435	677	715	1,004
Pre-tax return on sales-continuing operations (\%)		3.8	2.0	2.6	2.6	3.0
Profit after tax-continuing operations (EUR million)		550	293	515	544	867
Profit after tax-discontinued operations (EUR million)		32	(4)	-	-	-
Profit after tax-total (EUR million)		582	289	515	544	867
Return on equity (\%)		57.1	27.0	41.9	43.0	72.5
Consolidated net profit/(loss)-continuing operations (EUR million)		427	208	482	523	776
Consolidated net profit/(loss)-discontinued operations (EUR million)		-	-	-	-	-
Consolidated net profit/(loss)-total (EUR million)		427	208	482	523	776
EBITDA adjusted-continuing operations (EUR million)		1,750	1,071	1,184	1,230	1,882
EBIT adjusted-continuing operations (EUR million)		1,046	757	841	910	1,287
Earnings per share-continuing operations (EUR)		6.16	3.05	6.68	6.95	10.31
Earnings per share-discontinued operations (EUR)		-	-	-	-	-
Earnings per share-total (EUR)		6.16	3.05	6.68	6.95	10.31
Dividend per share (EUR)		3.93	1.91	4.00	4.40	$5.23^{3}$
Dividends paid (EUR million)		278	135	311	342	406
Free cash flow from operations-continuing operations ${ }^{4}$ (EUR million)		372	332	887	1,143	1,693

[^0]
[^0]: ${ }^{1}$ All figures refer to continuing operations only unless stated otherwise.
${ }^{2}$ As of the December 31, 2020 reporting date, this includes 11,862 employees at CIMIC Group company Thiees, which is reported at equity in the consolidated financial statements as of the year-end.
${ }^{3}$ Proposed dividend per share
${ }^{4}$ Free cash flow from operations: Cash flow from operations and cash flow from purchases and disposals of interglitie assets, of property, plant and equipment, and of investment properties, and change in current financial assets and investments

	$\begin{gathered} 2020 \ \text { (restated) } \end{gathered}$	2021	2022	2023	2024
Assets
Intangible assets (EUR million)	1,041	1,091	1,117	1,102	3,322
Property, plant and equipment (EUR million)	912	819	870	830	1,903
Investment properties (EUR million)	21	19	33	32	30
Financial assets (EUR million)	2,473	2,592	3,340	3,051	1,808
Other non-current assets (EUR million)	817	774	727	647	903
Non-current assets (EUR million)	5,264	5,295	6,087	5,662	7,966
As \% of total assets	31.0	32.6	33.3	29.8	32.3
Inventories (EUR million)	284	345	370	370	570
Receivables and other assets (EUR million)	5,182	5,713	6,421	7,198	7,571
Marketable securities and cash and cash equivalents (EUR million)	5,423	4,854	5,394	5,776	6,532
Assets held for sale (EUR million)	829	28	28	-	2,016
Current assets (EUR million)	11,718	10,940	12,213	13,344	16,689
As \% of total assets	69.0	67.4	66.7	70.2	67.7
Total assets (EUR million)	16,982	16,235	18,300	19,006	24,655
Liabilities and Shareholders' Equity
Attributable to the Group (EUR million)	670	801	1,134	1,235	1,072
Non-controlling interest (EUR million)	293	285	96	31	124
Shareholders' equity (EUR million)	963	1,086	1,230	1,266	1,196
As \% of total assets	5.7	6.7	6.7	6.7	4.9
As \% of non-current assets	18.3	20.5	20.2	22.4	15.0
Non-current provisions (EUR million)	840	899	662	618	780
Non-current financial liabilities (EUR million)	3,932	3,936	4,725	4,550	6,642
Other non-current liabilities (EUR million)	533	579	636	595	1,140
Non-current liabilities (EUR million)	5,305	5,414	6,023	5,763	8,562
As \% of total assets	31.2	33.3	32.9	30.3	34.7
Current provisions (EUR million)	776	891	840	1,004	1,151
Current financial liabilities (EUR million)	1,051	530	503	529	787
Other current liabilities (EUR million)	8,050	8,314	9,704	10,444	11,715
Liabilities associated with assets held for sale (EUR million)	837	-	-	-	1,244
Current liabilities (EUR million)	10,714	9,735	11,047	11,977	14,897
As \% of total assets	63.1	60.0	60.4	63.0	60.4
Total assets (EUR million)	16,982	16,235	18,300	19,006	24,655
Property, plant and equipment ratio ${ }^{a}$ (\%)	5.4	5.0	4.8	4.4	7.7
Total capital expenditure, including acquisitions (EUR million)	897	488	704	1,006	1,405
Of total: Intangible assets (EUR million)	16	9	11	21	17
Of total: Property, plant and equipment (EUR million)	602	191	396	338	744
Of total: Investment properties (EUR million)	-	-	7	-	-
Of total: Financial assets (EUR million)	279	288	290	647	644
Capital expenditure ratio ${ }^{b}$ (\%)	17.3	5.6	10.9	10.3	11.5
Depreciation and amortization ratio ${ }^{c}$ (\%)	113.9	157.0	83.1	89.4	78.1
Receivables turnover ${ }^{a}$	4.3	4.6	5.1	4.8	5.2
Total assets turnover ${ }^{a}$	1.3	1.3	1.5	1.5	1.5
Net cash/(net debt)-continuing operations (EUR million)	618	556	354	872	(120)

[^0]
[^0]: a Property, plant and equipment ratio: Property, plant and equipment as a percentage of total assets
${ }^{a}$ Capital expenditure ratio: Capital expenditure on intangible assets, property, plant and equipment and investment properties as a percentage of cumulative cost of acquisition
${ }^{b}$ Depreciation and amortization ratio: Depreciation and amortization as a percentage of intangible assets, property, plant and equipment and investment properties
${ }^{\text {c }}$ Receivables turnover: Ratio of sales to average trade receivables incl. contract assets
${ }^{\text {d }}$ Total assets turnover: Ratio of sales to average total assets

Publication Details and Credits

Published by:
HOCHTIEF Aktiengesellschaft
Alfredstraße 236, 45133 Essen, Germany
Tel.: +49 201 824-0, Fax: +49 201 824-2777
info@hochtief.de, www.hochtief.com
Project management, concept design, and overall editorial responsibility:
HOCHTIEF Corporate Communications

Information and text:

HOCHTIEF corporate departments

Design and layout:

Christiane Luhmann, Iuhmann \& friends, Kamen
Jakob Kamender, Werbeatelier JBK, Münster

Cover:

@stock.com/Tanatpon Chawsewat

Picture credits:
@stock.com/justinoque: p.108, p.110, p.174, p.222, p.277, p.288, p.321
@stock.com/Margi: p.96, p.298, p. 304
@stock.com/Richard Chambers: p.108, p. 222
@stock.com/olegkalina: p.108, p. 277
@stock.com/cnythcl: p. 108

English adaptation:

Burton, Münch \& Partner, Düsseldorf, Germany

This Group report is a translation of the original German version, which remains definitive.

For more financial reports, please see www.hochtief.com/reports.
Current financial calendar: www.hochtief.com/investor-relations/financial-calendar

This report was published on February 19, 2025.

Contacts

HOCHTIEF Capital Markets Strategy
Michael Pinkney
Tel.: + 49201 824-1824
investor-relations@hochtief.de

HOCHTIEF Investor Relations
Tobias Loskamp
Tel.: + 49201 824-1871
investor-relations@hochtief.de

HOCHTIEF Corporate Sustainability
Alexander Neumann
corporate-responsibility@hochtief.de

HOCHTIEF Corporate Communications
Dr. Bernd Pütter
Tel: + 49201 824-2610
bernd.puetter@hochtief.de

HOCHTIEF Corporate Governance/Compliance
Dr. Kai Hasselbach
Tel.: +49 201 824-1561
kai.hasselbach@hochtief.de

HOCHTIEF Human Resources
Kirsten Degenhardt
Tel: + 49201 824-2624
kirsten.degenhardt@hochtief.de

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