Annual Report (ESEF) • Mar 28, 2025
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Download Source FileCompagnie d'Entreprises CFE SA/NV ANNUAL REPORT 2024 Rethinking how we live, work, move, produce, and power our world. Annual report 2024 Pursuant to the Belgian Royal Decree of 14 November 2007 concerning the obligations of issuers of nancial instruments listed for trading on a regulated market (RD of 14 November 2007), Compagnie d’Entreprises CFE is required to make its annual nancial report available to its shareholders. This report includes: • the combined statutory and consolidated annual report of the Board of Directors (pre- pared in accordance with Articles 3:6 (et seq.) and 3:32 (et seq.) of the French Companies and Associations Code (the “CSA”)) (now also includ- ing the sustainability statement); • the declaration of the persons responsible within CFE; • the report signed by the statutory auditor. This report contains an abridged version of the stat- utory annual accounts (prepared in accordance with Article 3:17 of the CSA) and a full version of the con- solidated annual accounts. Pursuant to Article 12, §2, 3° of the RD of 14 November 2007, Trorema SRL, represented by Raymund Trost, CEO and Chairman of the Executive Committee, and MSQ SRL, represented by Fabien De Jonge, CFO, certify that, to their knowledge: a) the nancial statements, prepared in accord- ance with the applicable accounting stand- ards, give a true and fair view of the assets, nancial position and results of CFE and of the companies included in its scope of consolida- tion, b) the directors’ report contains a true and fair presentation of the business, results and posi- tion of CFE and of the companies included in its scope of consolidation, along with a description of the main risks and uncertainties to which they are exposed; The ofcial ESEF version of the Annual Report, written in English, is available on the CFE website. In addition, the annual report, the full versions of the statutory and consolidated nancial statements, and the stat- utory auditor’s report on those nancial statements are available on the website (www.cfe.be) or can be obtained free of charge and on request at this address: avenue Edmond Van Nieuwenhuyse 30 - 1160 Brussels (Belgium) - Tel. +32 2 661 18 15 - [email protected]. Annual report 2024 2 Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Contents Message from the Chairman and CEO 5 Our ambitions and achievements 9 Financial key gures 10 Real Estate Development 11 Multitechnics 13 Construction & Renovation 17 Investments 19 People 21 Sustainability 22 IT, digital & innovation 25 Legal 26 Governance Report of the Board of Directors 27 I. Statutory nancial statements 29 II. Consolidated nancial statements 32 III. Corporate governance statement 49 IV. Remuneration report 62 Sustainability statements 70 General information 74 Environmental information 90 Social information 108 Governance information 117 Annexes 119 Financial statements 126 I. Consolidated nancial statements 129 II. Notes to the consolidated nancial statements 135 III. Parent company nancial statements 216 General information 219 Annual report 2024 3 Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Financial calendar • 30 april 2025: ordinary shareholders meeting • 20 May 2025: trading update of 31 March 2025 • 28 August 2025: half-year results 2025 • 19 November 2025: trading update of 30 September 2025 Proposed dividend It will be proposed to the Ordinary General Meeting of 30 april 2025 to approve the prot appropriation with regard to the nancial year 2024, or a gross amount of € 0.40 per CFE share, corresponding to € 0.28 net per share (after deduction of 30% withholding tax). This dividend shall be payable from 21 May 2025, either by bank transfer to the holders of registered shares, or by crediting the bank account of the owners of shares in electronic form. The nancial ser- vice is provided by Banque Degroof Petercam (System Paying Agent). Investor relations Additional information is available on our website (www.cfe.be), such as: • The annual and half-yearly reports, as well as the quarterly trad- ing updates • other press releases • presentations for analysts and investors • On-line subscription to receive investor information (notices of publications, press releases, etc.) Prole of the CFE Group CFE is a multi-disciplinary group developing total solutions to complex societal challenges in the fast-growing markets of sustainable buildings, smart industries and infrastructure for tomorrow’s energy and mobility. To achieve this, the Group combines the strengths of its four segments: Real Estate Development, Multitechnics (including building management, industrial automation and energy and mobility infrastructures), Construction & Renovation and Sustainable Investments. CFE aims to play a leading role in these key markets by challenging the status quo and changing anything that needs to be changed for future generations. The Group has therefore placed innovation, sustainabil- ity and safety at the heart of its business. CFE’s ambition is to bring people, skills, materials and technology together in a community of “changing for good”. This focus has enabled the Group to assume a pioneering role in the use of sustainable building materials, large-scale renovation, advanced energy management and other high value areas for society. CFE has been recognised as a top ESG company by Sustainalytics. CFE’s strategy is expressed under the acronym “SPARC”, which serves as a compass for the Group’s entities. It guides the Shift towards innovation and sustainability, the desire to Perform and achieve operational excel- lence, to Accelarate its growth through an integrated approach, to create value and a Return for all stakehold- ers, as well as a genuine Community as agents of change both inside and outside the organisation. Shareholder information Annual report 2024 4 Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Here our Chief Executive Ofcer Raymund Trost and Chairman Luc Bertrand outline their thoughts on CFE Group’s 2024 performance and their expectations for the coming years. Message from the Chairman and CEO Raymund Trost, CEO of the CFE Group and Luc Bertrand, Chairman of the Board of Directors “We will continue to put the safety of our people first, it is never a done deal.” Continued progress in improving safety Raymund: Just like we did last year, I want to start with safety. Over the past years, we have been actively working on a true safety culture where things are openly discussed and then improved. And our efforts are paying off. The frequency rate and severity rate of accidents have dropped by 43% and 27%, respectively, since 2021. Also our leading indicators of proactive safety visits by management teams are evolving in the right direction. Annual report 2024 5 Management report Message from the Chairman and CEO Our ambitions and achievements Sustainability statements Financial statements We will continue to put the safety of our people rst, it is never a done deal. We’ve called our ambition ‘Go for Zero’ and zero is the only acceptable number of accidents. “These numbers are signs of a healthy balance sheet and attributable to CFE’S diversified revenue streams and thorough risk management.” Solid nancial performance in a challenging market Raymund: I am very proud of our teams for deliver- ing a solid performance in 2024 to which most of our businesses contributed strongly. In fact, our four busi- ness segments were protable in 2024, despite the challenging market conditions. Luc: CFE increased its net result by 5% and achieved a return on shareholder’s equity of 10%, combined with an all-time record operational cashow leading to a substantially lower debt level. These numbers are a reection of healthy balance sheet management and attributable to CFE’S diversied revenue streams and thorough risk management. Raymund: The real estate market proved difcult in 2024 , with less investments in residential and ofce buildings. However, the lower results in our Real Estate segment were matched by a signicant improvement in our Construction & Renovation and Multitechnics segments. We focused our efforts on operational excellence and I am very happy to see this pay off. 2024 was also marked by the completion of a few large operationally very challenging projects such as ZIN in No(o)rd and LuWa. Although very proud of the end results, we will do everything we can to never have underperforming projects of this size again. To that end, I am satised to see that our rigorous selective bidding process is proving efcient with no problem cases of this size entering our business since the launch of the process some years back. “The real value we are gradually unlocking lies in the combined expertise of our businesses for total solutions.” Combined expertise for total solutions in core markets Raymund: Our multidisciplinary business model clearly makes us very resilient. However, its real value which we are gradually unlocking lies in the com- bined expertise of our businesses when developing integrated solutions for our clients. We have a unique set of capabilities that combined are worth much more than the sum of the parts. Luc: CFE is strategically positioned in three fast-grow- ing markets: sustainable buildings, smart industry, and infrastructure for tomorrow’s energy and mobil- ity. These markets are key in the net-zero transition and we see them attracting massive investments over the coming years. Luc Bertrand, Chairman of the Board of Directors Annual report 2024 6 Management report Message from the Chairman and CEO Our ambitions and achievements Sustainability statements Financial statements But, equally important, they often pose very complex challenges which require multiple domains of exper- tise to work together seamlessly. This is where CFE can leverage its integrated solutions. Raymund: We already have a track record of com- bining our real estate, construction & renovation, and multitechnics activities for residential and ofce buildings. But we aim to increasingly do so for hospi- tals, schools, industrial clients such as data centers and pharmaceutical facilities, and even infrastructure projects. “We see major untapped potential in the revalorization of energy-deficient office buildings.” Sustainable buildings Raymund: The residential market was challenging in 2024 with high interest rates and ination. But thanks to our solid track record and ESG prole in Belgium, Poland and Luxembourg we were able to maintain good sales rates in all markets. We made fewer acquisitions in 2024 but, with the market stabilizing, we will rell the pipeline again with a special focus on developments that have lower risk in permit proce- dures. In the ofce and mixed-use market we are develop- ing and building multiple agship projects such as Brouck’R, EQ and Realex in Brussels, the new SD Worx headquarters in Antwerp, and the new PwC and Red Cross headquarters in Luxembourg. And there is of course Kronos, the largest development the CFE Group has ever taken on, in a prime location, which will be a true sustainable ofce of the future. These projects are often executed by multiple of our businesses working together and showcasing our expertise in bio-based construction, large-scale ren- ovation, and energy-optimizing technology. Worth mentioning is our VMA Maintenance team which closes the loop by providing clients with a quality maintenance service for their buildings and technical installations, and is proving to be a protable source of recurring revenue for CFE Group. We see major untapped potential in the revaloriza- tion of energy-decient ofce buildings. In light of the EU Taxonomy investor clients are looking for a partner who can help them in dealing with the complexity of these projects. To that end we have set up a store- front offering called Pulse which provides them with an A to Z service backed by the other CFE businesses, ranging from consultancy over energy-efciency interventions to full-on renovations. And the team has already lined up a promising set of rst pro- jects under study for clients such as Ethias, Axa and Generali. Raymund Trost, CEO of the CFE Group Annual report 2024 7 Management report Message from the Chairman and CEO Our ambitions and achievements Sustainability statements Financial statements “Key to the success of our industrial projects are the long-term relationships we build with our clients.” Smart industry Also for our industrial clients, CFE’s capability to deal with highly complex projects is proving a competitive advantage. Currently under construction are projects such as the new LCL Data Center in Brussels and a new radiopharmaceutical production facility for Full- Life Technologies in Gembloux, both being built by CFE construction companies and tted by VMA for building technology. For the new Daikin heat pump testing center in Ghent, VMA installed the building technology but also used its VMANAGER platform to control the test chambers for the heat pumps. CFE businesses are also asked by industrial clients for their specic expertise, such as MBG’s continued work on the ethane cracker for Ineos Project One which is a true showcase of technical ability. VMA is steadily growing the number of partnerships with clients for industrial automation projects in the plastic recycling, food & beverage, ne chemicals, and automotive markets. Key to the success of our industrial projects are the long-term relationships we build with our clients. These partnerships allow us to know their business inside-out and develop tailor-made solutions of very high quality. “We believe the partnership between VMA and MOBIX for energy infrastructure projects has a lot of potential.” Infrastructure for tomorrow’s energy & mobility Raymund: There is a fast-growing demand for green energy infrastructure services in light of the net-zero transition, ranging from production and storage to grid capacity. With CFE we want to further seize this market. Luc: CFE already has investments in Green Offshore and BSTOR, which build wind and battery farms respectively, both in partnership with Ackermans & van Haaren. Green Offshore participes in in the ten- dering for new developments in the Princess Elis- abeth area off the Belgian coast, and BSTOR will be building two additional battery parks. Interestingly, VMA and MOBIX are subcontractors for the installa- tion of the Tesla batteries on the latter - a partnership for joint energy infrastructure projects we believe has more potential. Raymund: Two years ago, MOBIX started its diver- sication from rail infrastructure to also include energy infrastructure, a move that is showing the rst results. They obtained new contracts for cable work on the Ores and Resa energy grids in Wallonia and concluded a partnership with EDI to install charging infrastructure for TUC Rail. Of course, energy and mobility infrastructure are closely linked in the net-zero transition. MOBIX contin- ues its work in the rail business, obtaining new orders for the renewal of rail and metro infrastructure in and around Brussels. Van Laere continues its suc- cessful work on the Oosterweelverbinding in Ant- werp and has obtained two additional orders worth almost € 400 million to be spread over the next ten years. Their contribution to the new Lock Terneuzen in North Sea Port also didn’t go unnoticed, a tech- nical feat comparable to the locks in the Panama Canal. “Our vision remains to create a real sustainable community of partners who are also committed to making a Change for Good.” Building a community of Change for Good Luc: In 2030, CFE will be 150 years young! It was a pio- neer then, as it is today. Raymund: Our vision remains to create a real sustainable community of partners who are also committed to making a Change for Good. And we are very grateful to those who have been with us for a long time. Not in the least to our HERO’s, the women and men of CFE’s businesses, who continue to demonstrate incredible know-how, creativity and commitment in nding innovative and sustainable solutions to complex challenges for a better society. We are fully aware that our success depends on the talent we continue to attract and develop. Annual report 2024 8 Management report Message from the Chairman and CEO Our ambitions and achievements Sustainability statements Financial statements Our Top Employer certication is again a nice rec- ognition of our solid HR practices, but even more val- uable is the recognition by our own people as being a great place to work in the annual ‘How are you?’ engagement survey. Luc: Central to our engagement score is CFE’s clear commitment to sustainable business. We are on track for our direct CO 2 emissions reduction plan with already a 25% reduction since 2020. As part of our CSRD reporting, which we are presenting for the rst time this year, we also calculated our indirect CO 2 emissions and have set an ambitious target of -20% by 2030. Raymund: But the biggest impact we can have lies in helping our clients in their transition. To that end we have launched the CFE Sustainability Knowledge Center which provides them with our expert knowl- edge, sustainable alternatives and tools. Luc: And CFE’s community of change for good doesn’t limit itself to the own organization and busi- ness partners. In 2024 we launched the Heroes for Good Foundation which supports non-prot organ- izations focusing on social justice, health and edu- cation. This has proven to also be a great source of engagement by our people who were able to submit their associations of choice to be supported. “We have entered 2025 with confidence and have all the cards in hand to win in the future.” Looking ahead Luc: We have entered 2025 with condence thanks to an increased order book and a very healthy balance sheet. CFE’s combination of businesses is unique in the market and I am convinced that its real value is yet to be discovered. Raymund: We are nally leaving behind some large and operationally challenging projects which have negatively impacted results over the past few years. We expect revenue to contract slightly but our net result to be similar to 2024. With our multidisciplinary business model and a continued focus on rigorous risk management we have all the cards in hand to win in the future. Annual report 2024 9 Management report Message from the Chairman and CEO Our ambitions and achievements Sustainability statements Financial statements In million euros 2020 2021 2022 2023 2024 Revenue 1,026.1 1,125.3 1,167.2 1.248.5 1,182.2 EBITDA 45.2 68.5 63.1 49.5 49.9 EBIT 38.1 58.0 51.0 33.0 32.0 Net result - share of the group 17.7 39.5 38.4 22.8 24.0 Equity - share of the group 95.3 133.8 224.7 236.8 247.8 Net nancial debt 112.4 113.0 48.9 93.3 41.7 1,182.2m REVENUE 24.0m NET RESULT 1,646.3m ORDER BOOK Fabien De Jonge : Considering the challenging mar- ket conditions, we focused our efforts on operational excellence. We entered 2025 with condence thanks to a very healthy balance sheet. Our focus will remain on rigorous risk management and exemplary project execution. Revenue amounted to € 1,182.2 million, down by 5.3% compared with the previous year while net income came to € 24.0 million, up by 5.2%. The residential and ofce markets remain unsettled. However, the rst signs of recovery are noticeable. The signicant increase in contributions from the Construction & Renovation and Multitechnics segments were offset by lower results from the Real Estate Development and Investment & Holding segments. The Group’s net nancial debt was signicantly reduced in 2024: € 41.7 million compared to € 93.3 million on 31 December 2023. This excellent performance was driven by a historically high oper- ating cash ow of € 85.3 million. Our order book was boosted by several major com- mercial successes, including additional orders for the Oosterweelverbinding project of which the execution will be spread over several years. The order book reached € 1.65 billion, which is up by 29.8% compared with 31 December 2023. Financial key gures The medium- and long-term outlook for CFE is posi- tive, thanks to its positioning in the growth markets of renovation and energy performance improvement of existing buildings, the development of infrastruc- ture linked to the energy transition and sustainable mobility as well as industrial automation (no men- tioning of BPI related markets). Priority will be given to selectively taking on new orders and improving operating performance. CFE expects a moderate contraction in turnover in 2025 and net income close to that of 2024. “We clearly owe our resilience in this challenging market to the diversified revenue streams in our multidisciplinary business model.” Fabien De Jonge, Chief Financial Ofcer Annual report 2024 10 Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Jacques Lefèvre : BPI Real Estate managed to stay the course in a difcult market, relying on its leading position in high-quality and sustainable develop- ments. In Belgium, BPI Real Estate delivered three residen- tial projects in 2024: Tervuren Square in Sint-Pie- ters-Woluwe, Arboreto in Tervuren, and the Parc building on the Erasmus Gardens site in Anderlecht. Completion of the John Martin’s project in Antwerp, which has already been sold to an investor, is sched- uled for 2025. In addition, the second phase of the residential sustainable project Godskespark in Has- selt, comprising 160 building plots for single-family homes, was launched and is already proving a com- mercial success. Sales of all these projects were sat- isfactory. The project Brouck’R, in the center of Brus- sels, was successfully started, and a sale agreement was concluded with La Loterie Nationale to house its future 6,800 sqm headquarters there. The projects EQ and Uni’Vert will be launched in 2025. Permits were obtained for Clarisse in Arlon and Move’Hub which is located near the South Station and will include the development of 38,000 sqm for ofces and 13,600 sqm of residential space. The sale in future state of completion was completed for the 10,000 sqm building for Haute École de la Province on the Bavière site in Liège to the Province. In Poland, the residential projects Bernardovo in Gdynia, Panoramiqa in Poznan, and Czysta in Wro- claw were delivered, totaling 567 residential units. Currently, 75% have been sold. Projects under con- struction are Chmielna Duo in Warsaw and the rst three phases of Cavallia in Poznan, all set for delivery in 2025. The Obrzezna project in Poznan was sold to a developer-investor. The construction of PianoForte in Warsaw is set to start in 2025. A plot of land was acquired for the development of 618 apartments opposite the Panoramiqa project in Poznan. With construction planned to start in 2026. In December 2024, one year after securing a signif- icant property in Gdańsk located at the border of the historic center, we decided to divest 50% of the shares of the SPV holding the rights to this plot to a dynamic entrant in the Polish real estate market, backed by Belgian capital. This move signies the beginning of a promising long-term partnership that aligns with our growth and diversication strategies. Arnaud Regout : In Luxembourg, residential projects Rockwood and Domaine des Vignes phase 3 were Real Estate Development Bernadovo Gdynia Brouck’R Brussels PianoForte Warsaw “We have built a strong reputation in the market as a sustainable developer of quality housing and office spaces. I am incredibly proud of the hard work by our team to bring us to this point and look forward to what 2025 will bring.” Jacques Lefèvre, CEO BPI Real Estate Annual report 2024 11 Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements EQ Brussels “In a challenging economic context, we have managed to deliver solid results. Our focus moving forward will be to maintain this resilience and seize new opportunities. With the know-how of our team and the support of a strong CFE Group, I am confident in the future.“ Arnaud Regout, Chief Investment Ofcer Chmielna Duo Warsaw delivered. Projects Mimosa and Domaine des Vignes phase 4 are ongoing and have been 50% and 60% sold, respectively. The architectural competition for the Kronos project was concluded and preliminary works are set to start by the end of 2025. Jacques Lefèvre : The real estate market remains challenging in 2025. Construction costs have sta- bilized however, and interest rates have started to decrease . Ination should also stabilize, allowing the real estate sector to re-enter a positive cycle in the mid-term. We will continue to work closely together with our Construction & Renovation colleagues in the CFE Group, as well as with external partners. Collaborating with partners with whom we have built up longstand- ing, trusting relationships is important for achieving top level quality standards and sustainability in the longer term. Our ambitious sustainability goals, ESG prole and renowned focus on rst-rate housing is giving us a solid position in the market and the ability to attract future investors. CFE Group’s highly experienced real estate experts can support clients through our new offering called Pulse which looks to revalorize energy-decient ofces, with multiple projects in the pipeline. By combining our Group’s expertise to tackle these complex challenges in one place, we can provide an integrated solution for investors and real estate managers. We want to ‘unburden’ them by making revalorization as easy as possible, while guiding them through the process. In 2025, we will start lling our project pipeline again, after a year with very few new acquisitions because of the challenging market. Arnaud Regout : Kronos remains an important agship project where we aim to set a new level of sustainable development. The demolishing permit requests have been obtained early 2025 and dis- mantling works are set to start in the fourth quarter of 2025. Annual report 2024 12 Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Automotive Volvo Peter Matton : The Group further strengthened its VMA Services offering which provides full building lifecycle maintenance and has become an important contribu- tor to the company’s growth. VMA’s Building Technolo- gies unit nalized works on ZIN in No(o)rd for Bemmo, the Grand Hôpital in Charleroi, and HOWEST Cam- pus in Bruges together with MBG. Works continued on the Marnix headquarters for ING in Brussels and the parking on the site of Blue Gate Antwerp. Works started on Full-Life Technologies in Gembloux, being carried out with BPC Group, LCL Datacenter together with MBG, Aerospace Lab in Charleroi, Green Energy Park in Zellik, the new Leonidas factory in Nivelles, and Brouck’R in Brussels with BPI Real Estate. VMA’s Industrial Automation realized a solid result in 2024 from projects for its long-time clients in the automotive sector, despite the current disruption in the market. In Process & Manufacturing Technologies (PMT), VMA continued works on the Daikin Center in Ghent and successfully delivered projects for Astra Sweets and Indaver. Multitechnics | VMA Daikin Europe Research & Development Center Ghent “VMA is at the cutting-edge of the energy transition. We have strong, innovative solutions and impressive expertise to make a real difference in the years to come.” Peter Matton, CEO VMA Annual report 2024 13 Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Peter Matton : The building market remains challeng- ing, with high construction costs and interest rates, and slower delivery times for materials. But having said that, there is still a lot of growth potential for VMA in the building technologies market which we aim to capture. Although we already have a solid position, we cer- tainly aim to expand. We see a great deal of potential and strong demand for energy-efcient buildings that comply with legislation, especially for ofce buildings, public buildings, and large-scale reno- vations. This is a market where we can bring a lot of added value with our ESCO (Energy Service Con- tracts) offering, smart energy management, preven- tive & predictive maintenance. Given our decades of experience, we want to capitalize on the energy market. This is also the expertise we bring to Pulse which looks at revalorizing real estate with an integrated offering, combining all the knowledge of the CFE Group. New to our offering will be VMA Express which pro- vides fast maintenance services to existing and new customers, thereby also opening the door for upselling the complete VMA portfolio. Marnix headquarters for ING Brussels Indaver Antwerp Grand Hopital de Charleroi The automotive sector will remain volatile. We aim to keep a healthy baseline of projects and revenues here. In PMT we are still a challenger in a market with vast potential. We will focus on three segments where we have the most expertise: food & beverage, ne chem- icals and plastic recycling. We already have solid ref- erences in these domains. Annual report 2024 14 Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements “The strength of MOBIX is the expertise we have built up as a team over the past years which we can now easily deploy in adjacent markets such as infrastructure for the energy transition. I am proud to see that clients trust us, and we can be part of such an important development.” David Vanhelmont, CEO MOBIX David Vanhelmont : 2024 was a year of transition for MOBIX with further diversication beyond rail infra- structure works as we expanded our activities into the energy market. The year was marked by the completion of the LuWa project and a slight decline in the Rail activities, due to low activity at Infrabel. The Business Unit Energy started the renewal of the signaling infrastructure in the Brussels metro tunnels in cooperation with HITACHI. In addition, new contracts were won for cable works for ORES and RESA. Together with EDI, the rst con- tract for charging infrastructure for TUC Rail was obtained, as well as a contract for the installation of battery capacity, together with VMA, for Tesla. Due to the decline in business at Infrabel, the Track activities focused on the private market in industrial environ- ments, with customers such as Arcelor Mittal and Ineos. MOBIX also continued to leverage its expertise in the renewal, electrication and provision of charging infrastructure for taxiways at Brussels Airport. Multitechnics | MOBIX David Vanhelmont : In 2025, MOBIX will continue its baseline activities for rail infrastructure but also pur- sue its active diversication into the energy market which will continue to grow considerably over the coming years. Energy infrastructure, including bat- tery and charging installations for different transport types, are particularly promising given the skillset of the company. Thanks to our ongoing, high-prole projects our brand awareness is gaining traction in the market. We are well positioned because of our in-house expertise and highly skilled people which give us a clear competitive advantage. We are a real part- ner to our clients in nding solutions and thinking with them. This is demonstrated by the fact that we are increasingly contacted by clients specialized in design and engineering where MOBIX can add its expertise in execution and installation. Brussels Airport Cable works LuWa Annual report 2024 15 Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements We bring together people, skills, materials and technology in a community of change for good. 16 Annual report 2024 Message from the Chairman and CEO Management report Sustainability statements Financial statements Our ambitions and achievements Bruno Lambrecht : The economic situation in Europe is very challenging, especially for the Construction and Renovation market, with high interest rates and costly materials. Key in navigating this market is to stay close to our long-time customers and con- tinue to be a reliable, professional and strong nan- cial partner, develop in the markets where we have already a lot of expertise, and to continue to nd synergies between our companies to develop total solutions for our clients. We will also remain focused on retaining our key talents, on risk management and selective bidding. MBG had a record year in 2024 with outstanding nancial results, continuing their strong track record. Key ingredients are a LEAN organisation with highly efcient people with a strong focus on operational excellence and customer satisfaction. MBG is shar- ing its knowhow within the Group, nding synergies with other Construction & Renovation business units. MBG leveraged its expertise in industrial projects with the ongoing works on the ethane cracker for INEOS Project One in Antwerp. Additionally, its healthcare and residential knowhow were capitalized on with the extension of the UZ Ghent hospital, Park Lane in Brussels for Nextensa, and the nalization of O’Sea in Ostend for Immobel. Construction of the renewed HOWEST Campus in Bruges was nalized and works started on the LCL datacenter, a project in collabora- tion with VMA. In 2024, the management team of Van Laere was reorganized, strengthening the representation of poject directors in the directors committee. This structural change has reinforced decision-making with a stronger operational focus. As a result, Van Laere has signicantly improved its performance, driven by a commitment to operational excellence and risk management. In Belgium, Van Laere nal- ized, together with BPC Group and VMA, the 110,000 sqm ZIN in No(o)rd for Bemmo, thereby concluding the largest renovation of its kind in Belgium. Through the consortium Sassevaart, Van Laere also delivered the New Lock Terneuzen for North Sea Port, which is on the scale of the locks used in the Panama Canal and one of the biggest in the world. Together with the continued ROCO works on the Oosterweel project, this further solidies Van Laere’s civil works expertise. Works continued in Antwerp on the Blue Gate park- ing and on the BAN-Nieuw Zuid residential devel- opment for Triple Living. Works started on the Airport Business Center in Brussels for The House of Devel- opment, and on the new wood-based headquarters of SD Worx in Antwerp. BPC Group had some operationally challenging pro- Construction & Renovation jects in 2024 but continued its successful track record of large-scale, inner-city renovations in Brussels with the delivery of K-Nopy for Eaglestone and Usquare for the VUB and ULB, and continued works on Kanal Centre Pompidou and The Arch for Cores Develop- ment. Works also progressed on new developments such as the schools of Anderlecht, the highly sus- tainable new development Realex for Atenor in the European district, and BPI Real Estate projects Erasme and The Parc. In Wallonia, BPC Group delivered Liège Expo and works are ongoing at the 40,000 sqm greenhouse and a waterpark for Pairi Daiza and the Shape Village in Mons. Works also started on the new Full-Life Technologies facilities in Gembloux. Kanal Brussels Annual report 2024 17 Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements “I am incredibly proud of the dedicated Construction & Renovation teams we have built—each with their own expertise, but all sharing the same passion for excellence. Their commitment, innovation, and drive to push boundaries in sustainability make all the difference.” Bruno Lambrecht, CEO Construction & Renovation In Poland, CFE achieved a record revenue in 2024 and maintained its close collaboration with BPI Real Estate, with the delivery of the residential projects Bernadovo in Gdansk, Czysta in Wroclaw, and Pan- oramiqa in Poznan, as well as continuing works on Chmielna Duo in Warsaw and Cavallia in Poznan. Works on BPI’s PianoForte are set to start in 2025. We also successfully delivered the new Umicore and Valeo automotive factories, the latest Majaland attraction park, and the new GLP Logistics center near Warsaw, featuring Poland’s rst wooden roof structure of this size. Works are ongoing at the Amer- ican School of Warsaw and on three very large out- lets Silwana, Karuzela and Designer Outlet, which total more than 61,000 sqm together. CLE in Luxembourg noted a relatively low level of activity. It started the construction of the Rout Lëns project (plot 14) for IKO, a complex of three residen- tial buildings with an above-ground surface area of 19,300 sqm, and continued the construction of the new Red Cross headquarters. Finally, just at the end of 2024, CLE signed a contract for the construction of the River Place project in Dommeldange, a mixed development with a residential focus, including a base of commercial and ofce spaces. At the start of 2025, CLE, in partnership, obtained an order for the construction of PwC Luxembourg’s future headquar- ters in the Cloche d’Or district for Atenor. The new campus will feature four interconnected buildings (34,500 sqm), 3,500 sqm of green spaces, and 5,700 sqm of terraces. Bruno Lambrecht : In 2025 the market will remain challenging. While the orderbooks for Van Laere, BPC Group and CLE are already well lled, MBG and CFE Polska’s orderbooks are healthy but down on previous years. The expectation is that the market will pick up again by 2026. The Construction & Renovation businesses will con- tinue to invest in sustainability and innovation by focusing on reducing carbon emissions, the circular economy and bio-based materials, in line with the expectations of our clients. We see that our geographic presence and efforts to be close to our clients is appreciated, alongside our high levels of customer service. We will continue to optimize our back ofce for Construction & Reno- vation companies in terms of processes, IT services, safety and digitalization. Rout Lëns Esch-en-Alzette Howest Bruges New lock Terneuzen Annual report 2024 18 Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Fabien De Jonge : The Rentel and SeaMade wind farms, in which Green Offshore holds 12.5% and 8.75% respectively, were faced with less favourable weather conditions than in 2023. Furthermore, unlike 2023, the price of electricity remained well below the guaran- teed price. Combined green energy production from the two parks reached 2.8 Twh in 2024. In Vietnam, Deep C Holding saw its industrial land sales decline to 80 hectares (127 hectares in 2023), partly due to the introduction of new real estate sales laws, which have led to delays in industrial land sales. It is worth noting that park service activities performed very well in 2024, posting a signicant increase in sales and operating income. Via GreenStor, CFE continues to innovate in the battery farm market. GreenStor has a 38% stake in BSTOR, a company that co-develops battery farms in Belgium. The rst 10 MW farm has been operational since the end of 2021. Construction of a second, with a capacity of 50 MW, has begun. Commissioning is scheduled for summer 2026. This project, located in La Louvière and in which BSTOR holds a 50% stake, represents a total investment of over € 70 million. Investments “The park service activities performed very well in 2024, posting a significant increase in sales and operating income.” Fabien De Jonge, Chief Financial Ofcer Fabien De Jonge : OTARY, of which Green Offshore is one of the eight shareholders, Eneco and Ocean Winds have decided to form a strategic consortium to jointly bid for offshore wind concessions in the Princess Elisabeth area off the Belgian coast. A rst call for tenders was launched in October 2024 for the construction and operation of a 700 MW offshore wind farm. Besides the existing 10 MW farm in Bastogne and the 50 MW farm whose construction has recently started in La Louvière, BSTOR is working on a third farm with a capacity of 100 MW, whose construction should start in 2025. Deep C Holding’s objective is to further extend to new zones, thereby leveraging the outstanding geo- graphic position of the Vietnamese market. BSTOR Battery park Bastogne Deep C Holding Vietnam Annual report 2024 19 Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Next generations deserve new heroes who change what needs to be changed. Annual report 2024 20 Message from the Chairman and CEO Management report Sustainability statements Financial statements Our ambitions and achievements Valérie Van Brabant : In 2024, we continued the high levels of investment in our people and their develop- ment. The CFE Academy carried out an average of 11 training courses per person. We also launched the Leading for Good program which sees all team lead- ers go through a dedicated training course to boost their leadership skills. We believe that effective lead- ership is essential for our success and to ensure that our employees achieve their personal goals. Additionally, the fourth Future Leaders track course was held at the Vlerick Business School, which sees key talent from our Group being trained in a broad spectrum of leadership skills for the future of our company. Human Resources (HR)is increasingly important within the organization as having the right people is a key success factor in today’s market and we want to make sure we continue to attract top talent to our company. We therefore continue to invest in our HR capability with the digitalization of our HR sys- tems and processes, including a new digitized talent management platform and a recruitment upskilling program for our HR community. We proactively and carefully manage succession planning to ensure smooth business continuity. People We also worked on employee engagement with an intense focus on internal communication and events where our strategy, culture and values are continuously front and center. Also, we launched the new Hello Heroes app which directly connects all employees and workers in the Group to keep them connected with each other and up to date with the latest news. The results of our efforts are clearly visible. More than 80% of our businesses improved their Employee Net Promotor Score again in 2024, we further reduced our employee turnover rate, and we were certied Top Employer for the second year in a row. Valérie Van Brabant : Our Leading for Good program will continue to be rolled out, with investment in lead- ership remaining our top focus. We started our Well- being Strategy in 2024 and will continue to invest in it throughout 2025. We aim to further develop our Diversity & Inclusion program with dedicated pro- grams in all business units that stimulate respectful behavior. We also want to further increase retention by improving how managers give feedback to their team members with our new performance review process. 2,854 77,011 NUMBER OF TRAINING HOURS NUMBER OF EMPLOYEES “At CFE, we believe that investing in our people is the cornerstone of our success. By continuously enhancing our HR capabilities and fostering a culture of leadership and development, we are not only empowering our employees to achieve their personal career goals but also driving our company’s strategic vision forward.” Valérie Van Brabant, Chief People Ofcer Employer branding will be key in the coming years to position the CFE Group as a great place to work and help attract new talent. Annual report 2024 21 Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements * The main objective of the Corporate Sustainability Reporting Directive (CSRD) is to harmonize corporate sustainability reporting and improve the availability and quality of published ESG (environmental, social and governance) data. Isabelle De Bruyne : 2024 was an important year for the implementation of the CSRD framework and reporting throughout the CFE Group. Being a stock- quoted company, we have seized the opportunity of being one of the rst in the sector to implement CSRD to further solidify our ESG leadership in everything we do. Last year we nished some large business projects that pushed the boundaries of what is feasible in terms of sustainability. Launched in 2024, we have started to consolidate all our sustainability expertise in the CFE Sustainability Knowledge Center which features a team of experts who support our clients and teams to drive sustainability, both in operations and business solutions. Also launched in 2024 is our new business initiative Pulse which aims to provide clients with an A-to-Z approach to revalorize their real estate, combining all the expertise the Group can offer. We continued to be very active in our sector fed- erations to share our knowhow and drive positive change throughout the community. In the current challenging economic context, we remain convinced that the only resilient sustainable business is the one driving sustainability in the long run. Sustainability “We aim to make it as easy as possible for our clients to do sustainable business, by leveraging the strength of our ecosystem with partners and suppliers, and by bundling all the know-how of our different businesses into practical solutions to their challenges.” Isabelle De Bruyne, Chief Sustainability Ofcer Annual report 2024 22 Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Looking beyond our core business, we were very glad to be supporting 62 non-prot organizations through our Heroes for Good Foundation. These associations are active in the domains of education, health and social justice, and have been submitted to our Foun- dation by our own employees and workers. Isabelle De Bruyne : Moving forward, we believe that the huge potential of ambitious sustainable projects, such as the ones in our project pipeline, can only be realized by a fruitful collaboration within our eco- system of clients, partners and suppliers. We aim to leverage the combined expertise of our own CFE businesses but also those of our long-time partners to develop smart total solutions for our clients. Our Sustainability Knowledge Center and our new busi- ness Pulse will remain at the forefront of driving sus- tainable business. Key in our sustainability approach is the CO 2 -Prestatieladder which our Belgian businesses are obtaining and have already obtained. We believe this is an important step in the government’s attempt to nudge businesses towards more sustainable solu- tions. GLP logistics center Warsaw Annual report 2024 23 Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements The greatest danger to our planet is the belief that someone else will change it. Robert Swan Annual report 2024 24 Message from the Chairman and CEO Management report Sustainability statements Financial statements Our ambitions and achievements IT, digital & innovation “We are making selective investments in digitalization and innovation that deliver added value for our teams and our clients.” Hans Van Dromme, Chief Digital Ofcer Hans Van Dromme : In 2025, we will continue the roll- out of ERP and prepare ourselves for the onboarding of our larger Construction & Renovation companies starting in 2026. Our transversal Innovation Board will continue the innovation roadmap and process - a series of pro- jects in the domains of AI, predictive maintenance, and site energy monitoring a Powertrack system. Cyber security focus remains a priority in our Group. We are working on both end-user awareness and training, as well as technical and response capability in our IT Department and business departments. Hans Van Dromme : In 2024, the rollout of our new ERP platform progressed with the onboarding of the rst few of our businesses. We launched multiple new transversal applications across the Group. We introduced a global talent management app for the whole Group, as well as the new Hello Heroes app, which connects all CFE employees and workers to keep them connected with each other and up to date with the latest news. For our project and site managers we introduced new applications for BIM viewing, safety management and quality control. We placed more focus on cyber security resilience, and we took further steps in the harmonization of our infrastructure and applications where possible across the Group. Hello Heroes App Annual report 2024 25 Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Legal & Compliance We remain committed to further strengthening our Compliance and Ethics processes. While we ini- tially focused on general policies for all levels of the organization, we plan to extend this in 2025 by imple- menting function-specic policies and processes to ensure harmonization across the Group. The Legal Board will continue to evolve, with a focus on building greater agility. We aim to make it eas- ier for legal experts to be deployed where needed, particularly during peak workloads or in high-priority matters. In Risk Management, we will raise the bar on assess- ments to ensure we continue to enhance our pro- cesses and adopt a proactive risk management approach, identifying and mitigating potential risks before they materialize. Philippine De Wolf : In 2024, we made signicant strides in strengthening the Legal and Compliance function at Group level. One of our key achievements was the relaunch and harmonization of the Group’s Compliance program and procedures, which became a priority follow- ing the demerger with DEME. This initiative included comprehensive training for the entire organization, designed to mitigate risks and enhance business integrity. We also introduced the transversal Legal Board in 2024, aimed at fostering greater synergy across the Group and providing stronger legal support to the business units. This is especially crucial for larger pro- jects, where the legal aspect plays an increasingly vital role. Legal is now more integrated into the Risk Manage- ment process, with representation in engagement committees for projects exceeding certain thresh- olds. This ensures thorough risk assessments are conducted. “In an increasingly complicated legal environment, it is more important than ever to have an agile legal team that is a real business partner and is able to mitigate potential risks in advance without being a hurdle to business opportunities.” Philippine De Wolf, General Counsel Annual report 2024 26 Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 27 Management report Our ambitions and achievements Management report Sustainability statements Financial statements Message from the Chairman and CEO Annual report 2024 - CFE 28 TABLE OF CONTENTS I. Statutorynancialstatements 29 1. Equity and main shareholders 29 2. Notestothestatutorynancialstatements 29 2.1. Financial position at 31/12/2024 29 2.2. Appropriationofprot 30 2.3. Outlook 2025 30 2.4. Main risks and uncertainties 30 2.5. Majoreventsaftertheclosingofthenancialyear 30 2.6. Financial instruments 30 2.7. Notices 30 II. Consolidatednancialstatements 32 1. Commentsontheconsolidatednancialstatements 32 1.1. Financial position at 31/12/2024 32 1.2. Main risks 38 1.3. Majoreventsafterthecloseofthenancialyear 47 1.4. Research and development 47 1.5. Financial instruments 47 1.6. Outlook 2025 47 III. Corporategovernancestatement 49 1. Referencecode 49 2. TheBoardofDirectorsanditsCommittees 49 2.1. Board of Directors 49 2.2. Role of the Chairman of the Board of Directors 52 2.3. Attendance, functioning and competences of the Board of Directors 52 3. ExecutiveBoardCommittees 53 3.1. The Audit Committee 53 3.2. The Nomination and Remuneration Committee 54 4. TheExecutiveCommittee 54 5. Diversitypolicy 57 6. Conictsofinterest 57 7. Externalandinternalcontrolandriskmanagement 58 7.1. External control 58 7.2. Internal control 58 7.3. Internalcontrolandriskmanagementsystems 58 8. Shareholderbase 61 9. Derogations from the 2020 Code 61 IV Remunerationreport 62 1. Remunerationpolicy 62 1.1. Governance - Procedure 62 1.2. Remunerationpolicyfornon-executivedirectors 62 1.3. CEORemunerationPolicy 63 1.4. Remunerationpolicyformembersofthe Executive Committee 64 1.5. Mandatesinsubsidiaries 64 1.6. Changessincethelastremunerationpolicy 65 1.7. Shareholder voting 65 2. Remuneration report 66 2.1. Remuneration of non-executive directors 66 2.2. Compensation of the CEO and Executive Committeemembersin2024 66 2.3. Severancepayments 68 2.4. Annual changes in remuneration and Companyperformance 69 V Sustainabilitystatements 70 1. Generalinformation 74 1.1. Basis for preparation 74 1.2. GOV-4 & 5 Notion of risk and due diligence 77 1.3. SBM-1Strategy,businessmodelandvaluechain 79 1.4. SBM-2 Interest and views of stakeholders 80 1.5. SBM-3 Material IROs and their interaction with thebusinessmodelandstrategy 84 1.6. IRO-1and2Doublematerialityassessment 87 1.7. Organisationofrolesandresponsibilitiesfor sustainabledevelopmentissues(GOV-1,2and3) 88 2. Environmentalinformation 90 2.1. EuropeanTaxonomyinformation(pursuantto article8ofRegulation2020/852) 90 2.2. ESRS E1: Climate change 97 3. Socialinformation 108 3.1. ESRS S1: Policies related to own workforce 108 3.2. ESRS S2: Workers in the value chain 114 4. Governanceinformation 117 4.1. ESRS2:IRO-1:Descriptionoftheprocessestoidentifyand assess material impacts, risks and opportunities 117 4.2. Policiesonresponsiblebusinessculture 117 4.3. Specicobjectivesandmonitoringofthesepolicies 118 5. Annexes 119 5.1. Annex1:Glossaryandabbreviations 119 5.2. Annex 2: List of references 122 5.3. Annex 3: List of omitted information 123 5.4. Annex 4: Auditor’s report 124 Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 29 Dear shareholders, Itisourprivilegetoreporttoyouonourcompany’sactivitiesduringthepastnancialyearandtosubmittoyouforapprovalthe statutoryandconsolidatednancialstatementsfortheyearended31December2024.InaccordancewithArticle3:32,section1,last paragraphoftheCodeofCompaniesandAssociations(“CSA”),thedirectors’reportsonthestatutoryandconsolidatednancial statementshavebeenintegratedintoonereport. I. STATUTORY FINANCIAL STATEMENTS 1. Equityandmainshareholders Attheendofthenancialyear,theCompany’ssharecapitalamountedto€8,135,621.14,dividedinto25,314,482shares,withnode- claredparvalue.Allsharesarefullypaidup.Eachshareconfersonevote.Therearenoshareholderownedshareswithspecialcon- trol or voting rights. Attheendofthe2024nancialyear,theshareholdersowning5%ormoreofthevotingrightsrelatingtothesharestheyholdare: Ackermans & van Haaren SA Begijnenvest,113,B-2000Anvers(Belgium) 15,725,684shares(or62.12%) VINCI Construction SAS 1973BoulevarddelaDéfense,F-92000Nanterre(France) 3,066,460shares(or12.11%) 2. Notestothestatutorynancialstatements 2.1. Financial position at 31/12/2024 IncomeStatementofCFESA(Belgianstandards) (in thousands €) 2024 2023 Operating income 17,854 19.632 Operating charges (22,009) (22,653) Operating result (4,155) (3,021) Financial income 21,869 23,351 Financial expenses (11,063) (9,268) Resultfortheperiodbeforetaxes 6,651 11,062 Income taxes on the result (9) (9) Result for the period 6,642 11,053 FinancialresultsmainlyincludetheproceedsofdividendspaidbyBPIRealEstateBelgiumSA(€8million)andGreenOffshoreNV (€8.175million),partiallycompensatedbycorporatenancialcharges. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 30 StatementofFinancialPositionofCFESAafterappropriation(Belgianstandards) (in thousand €) 2024 2023 Assets Non-current assets 314,109 310,461 Current assets 104,415 86,221 Total assets 418,524 396,682 Liabilities Netequity 139,043 142,322 Provisions for risks and expenses 3,988 4,006 Liabilitiesatmorethan1year 105,355 90,408 Liabilitiesatupto1year 170,137 159,945 Total equity and liabilities 418,524 396,682 AsofDecember31,2024,non-currentliabilitiesamountto€105millionandincludeamountsdrawndownontheconrmedbilateral creditfacilities(€75million)and€30millioninmedium-termtreasurynotes. 2.2. Appropriationofprot Protfortheyear2024 €6,641,447 Protbroughtforward €11,251,044 Prot to be allocated € 17,892,491 Other reserves €0 Remunerationofthecontribution €9,920,770 Protbroughtforward €7,971,721 2.3. Outlook 2025 Theresultsforthe2025nancialyearwilldependtoalargeextentonthedividendspaidbythemainsubsidiariesofCFE,namely CFE Contracting, BPI Real Estate Belgium, Deep C Holding and Green Offshore. 2.4. Main risks and uncertainties WerefertoChapterII.1.2oftheconsolidatednancialstatements. 2.5. Majoreventsaftertheclosingofthenancialyear NosignicantchangeinthenancialandcommercialsituationofCFEhasoccurredsince31December2024.Wealsorefertothe sectionII.3oftheconsolidatednancialstatements. 2.6. Financial instruments TheCompanyusesnancialinstrumentsforriskmanagementpurposes.Specically,thesearenancialinstrumentsintendedex- clusivelytomanagetherisksassociatedwithinterestrateuctuations.Thecounterpartiesintherelatedtransactionsareexclusively top-rankingEuropeanbanks. 2.7. Notices Researchanddevelopment Thecompanyhasnoresearchanddevelopmentactivities. Branches Atyear-end2024,theCompanydisposedofonebranch(BusinessUnit):CFETunisia.Thisbranchhasnofurtheroperationalactivity. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 31 ApplicationofArticle7:96section1oftheCSA TheprovisionsofArticle7:96oftheCSAconcerningconictsofinterestdidnothavetobeappliedduringthe2024nancialyear. TransactionsbetweenCFEandafliatedcompanies(Article7:97section4/1to4oftheCSA) NotransactionstookplacebetweentheCompanyanditsafliatedcompaniesinthe2024nancialyearnecessitatingtheapplica- tion of Article 7:97 section 4/1 to 4 of the CSA. Additionalcompensationfortheauditor EYRéviseursd’Entreprisesreceived€163,380inlump-sumfeesforthestatutoryaudit.Inaccordancewitharticle3:65,section3 oftheCSA,atotalof€152,840waspaidtoEYRéviseursd’Entreprisesasfeesforexceptionalservicesorspecialassignments.This amountisbrokendownasfollows: • othercerticationassignments(includingsustainabilityassignment):€142,500 • otherassignmentsoutsidethereview:€10,340. Acquisitionordisposaloftreasuryshares Asat31December2024,CFEheld512,557ofitsownshares,representing2%ofthecapital.Thenumberoftreasurysharesisidentical tothatat31December2023becausetheCompanydidnotbuybackorsellanyofitsownsharesduringthe2024nancialyear. On29November2024,theBoardofDirectorsdecided,however,torelaunchasharebuybackprogrammeuptoamaximumof 200,000sharesandwithinthelimitsofthe(renewed)authorisationtobuybackownshares,asgrantedbytheCompany’sExtraordi- naryGeneralMeetingon2May2024.However,thisnewbuybackprogrammewasonlylaunchedon14January2025andwillendon 19December2025atthelatest. NoticespursuanttoArticle74,section7oftheActof1April2007onpublictakeoverbids Accordingtoajointdeclarationmadeon7March2014pursuanttotheLawof2May2007onthedisclosureofmajorshareholdings inissuerswhosesharesareadmittedtotradingonaregulatedmarketthattheconcertedactionbetweenVINCIS.A.,VINCICon- structionS.A.S.andAckermans&vanHaarenNV(“AvH”)endedfollowingtheclosingofAvH’smandatorytakeoverbidforCFE,and StichtingAdministratiekantoor“HetTorentje”exercisesultimatecontroloverAvH. Asat31December2024,theCompanyhadnotreceivedanynoticationwithinthemeaningofarticle74section7ofthelawof1 April2007relatingtopublictakeoverbids. Protectionschemesincaseofapublictakeoverbid On29June2022,theextraordinarygeneralmeetingrenewedtheauthorisationoftheBoardofDirectorstoproceed,intheeventof atakeoverbidforthesecuritiesoftheCompany,withacapitalincreaseofupto€5millionwithinthelimitsofandinaccordance withtheprovisionsofArticle7:202oftheCSA.TheBoardofDirectorsisauthorisedtoexercisethesepowersifthetakeoverbidnotice isdeliveredbytheFinancialServicesandMarketsAuthority(the‘FSMA’)totheCompanynolaterthanthreeyearsafterthedateof theaforementionedExtraordinaryGeneralMeeting.TheBoardofDirectorsisalsoauthorised,foraperiodofthreeyearsfromthe dateofthisextraordinarygeneralmeeting,selloracquireupto20%ofthetreasurysharesintheeventthatsuchactionisnecessary tosafeguardtheCompanyfromseriousandimminentharm. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 32 II. CONSOLIDATED FINANCIAL STATEMENTS 1. Commentsontheconsolidatednancialstatements 1.1. Financial position at 31/12/2024 A.Keygures (in million €) 2024 2023 Change Revenue 1,182.2 1,248.5 -5.3% EBITDA % of revenue 49.9 4.2% 49.5 4.0% +0.7% Operatingincome(EBIT) % of revenue 32.0 2.7% 33.0 2.6% -3.1% Result for the period - share of the group % of revenue 24.0 2.0% 22.8 1.8% +5.2% (in million €) 2024 2023 Change Equity-shareofthegroup 247.8 236.8 +4.6% Netnancialdebt 41.7 93.3 -55.3% Orderbook 1,646.3 1,268.6 +29.8% B.Generaloverview Revenuein2024amountedto€1,182.2million,downby5.3%comparedwiththepreviousyear.Theresidentialandofcemarkets remainunsettled.However,therstsignsofrecoveryarenoticeable. Operatingincome(EBIT)was€32.0million,down3.1%comparedto31December2023.Thesignicantincreaseincontributionsfrom theConstruction&RenovationandMultitechnicssegmentswereoffsetbylowerresultsfromtheRealEstateDevelopmentandIn- vestment & Holding segments. Netincomecameto€24.0million,upby5.2%. Equitywas€247.8millionon31December2024,anincreaseof4.6%comparedto31December2023.Returnonequity(ROE) reached10.1%,asin2023. TheGroup’snetnancialdebtwassignicantlyreducedin2024:€41.7millioncomparedto€93.3millionon31December2023.This excellentperformancewasdrivenbyahistoricallyhighoperatingcashow:€85.3million. CFESA,thegroup’sparentcompany,anditssubsidiariesBPIRealEstateBelgiumandBPIRealEstateLuxembourghavetogether€ 250millionofconrmedcreditfacilitieswhicharedrawndownbyupto€78millionasat31December2024.Allthebankingcove- nantshavebeencompliedwith.During2024,newconrmedcreditfacilitiesweresetupfor€20million.CFEhasalsoobtainedthe agreementofitsnancialpartnerstoextendallmaturingcreditfacilities.Theaverageinterestrateongrossdebtisat4.22%in2024. Theorderbookisupby29.8%comparedwith31December2023,boostedbyseveralmajorcommercialsuccesses,includingaddi- tional orders for the Oosterweelverbinding projectofwhichtheexecutionwillbespreadoverseveralyears.Theorderbookreached €1.65billion. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 33 C.Segmentanalysis RealEstateDevelopment KEY FIGURES (in million €) 2024 2023 Change Revenue 125.7 157.7 -20.3% Operatingincome(EBIT) 8.5 17.4 -51.4% Result for the period - share of the group 8.0 11.7 -31.2% Netnancialdebt 95.4 100.1 -4.7% Changesincapitalemployed Breakdownbystageofprojectdevelopment (in million €) 2024 2023 Unsoldunitspostcompletion 11 0 Properties under construction 48 55 Properties in development 197 204 Total capital employed 256 259 Breakdownbycountry (in million €) 2024 2023 Belgium 82 66 GrandDuchyofLuxembourg 112 105 Poland 62 88 Total capital employed 256 259 Thecapitalemployedamountedto€256millionon31December2024,whichisdownby1.2%comparedtotheendofDecember 2023.Thegrossdevelopmentvalueoftheprojectsunderdevelopment(BPIRealEstateshare)isestimatedat€1.6billion,i.e.363,000 m² of which 58,000 m² is under construction. Acquisitions In2024,BPIRealEstateLuxembourgacquiredtwoadditionalplotsoflandonthePourpeltsiteinBertange.BPIcurrentlyownsaround 30%ofthesurfaceareaofthisfuturenewresidentialdistrict. InPoland,boostedbythecommercialsuccessofphase1ofthePanoramiqaprojectinPoznan,BPIRealEstatehassecuredphases2 and 3 in the fourth quarter of 2024. These two new phases have the potential for more than 600 additional apartments in four sepa- ratebuildings.Constructionshouldstartin2026onceplanningpermissionhasbeenobtained. Projectsinthestudyphase BELGIUM InBrussels,thepermitsfortheMove’Hubproject(54,000m²,including38,000m²ofofcespace)werereceivedattheendofthe year.AnappealhasbeenlodgedbytheSaint-GillescommuneagainsttheplanningpermissionandbyIEB(Inter-Environnement Bruxelles)againsttheenvironmentalpermit. PermitsfortheKeyWest(63,300m²)andUni’Vert(10,000m²)projectsarealsobeingchallengedbeforetheConseild’Etat. InOttignies-Louvain-la-Neuve,thepermitfortheSamayaprojectreceivedanegativeadvicebythelocalcouncil.Amodied,less densepermitwillbeintroducedinMarch2025thattakesintotakeaccounttheremarksmade. InArlon,BPIRealEstatehasobtainedthecombinedpermit(permisunique)foritsClarisseproject,comprising60residentialunits (6,350m²).Buildingpermitshavebeenobtained. InLiège,ontheBavièresite,planningpermissionhasbeengrantedforthenewschoolbuildingoftheHauteEcoleProvincialedu Barbou.ThedeedofsalewiththeProvinceshouldbesignedinApril2025. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 34 LUXEMBOURG BPIRealEstatehasappointedtheteamofarchitects,ASSARSHLandMoreno-A2M,foritsKronosprojectontheKirchbergplateau. Permitsapplicationswillbesubmittedinthersthalfof2025,anddismantlingworksarescheduledtostartinthefourthquarter. InBelval,BPIanditspartnerareactivelypreparingforthelaunchofTHEROOTSproject.Preparatoryearthworkshavebeencomplet- edandconstructionisduetostartshortly.Thisisamixed-useprojectcomprising6,000m²ofofcespace,102apartmentsanda food market. POLAND PermitapplicationsforthenextdevelopmentphasesoftheCavalliasiteinPoznanarecurrentlybeingprepared. InGdansk,aninitialpermitapplicationfor141housingunitsiscurrentlybeingprocessed. Startofconstructionandmarketingofnewprojects BELGIUM ConstructionoftheBrouck’Rproject,locatedinthecentreofBrussels,beganattheendoftheyear,atthesametimeasthesaleto LaLoterieNationaleofitsfutureheadquarters.Thisbuilding-exemplaryintermsofsustainability-withanabove-groundsurface areaof6,800m²,isunderconstruction.Thecommercialisationoftherstphaseofhousingunitsiscurrentlybeingpreparedfor launchinthespringofthisyear. Furthermore,BPIanditspartnerhavelaunchedthemajorrenovationoftheEQbuildingintheEuropeandistrict(approx.19,000m²). Advanceddiscussionsareongoingwithprospectivetenantsorbuyers. POLAND InWarsaw,BPIhaslaunchedconstructionofitsresidentialprojectPianoForte(10,000m²,101housingunits).Salesareofftoasatis- factorystart.Deliveryofthebuildingisscheduledforlate2026. Residentialprojectsunderconstructionordeliveredin2024 BELGIUM Inthersthalfoftheyear,BPIdeliveredthePUREproject(Auderghem)andtherstphaseoftheBavièreproject(19,000m²).Therst isfullysold,whilethesecondhasasalesrateofover80%. Inthefourthquarter,theArboretoprojectinTervuren(7,000m²)andthe“Parc”buildingontheErasmusGardenssiteinAnderlecht (9,000m²)weredelivered,whilethelastapartmentsintheTervurenSquareprojectinWoluwe-Saint-Pierre(12,000m²)weredeliv- eredinJanuary2025.Thesalesrateforthesethreeprojectsisaround65%.Thispercentageisrisingsteadily. InAntwerp,constructionoftheJohnMartin’sresidentialproject(10,000m²)isprogressingsatisfactorily.Asareminder,thisbuilding waspre-soldenbloctoIONResidentialPlatformNV.Deliveryisscheduledforsummer2025. LUXEMBOURG InMertert,BPIRealEstatehasdeliveredthethirdphaseoftheDomainedesVignesproject,whileconstructionofthetwoblocksof thefourthandnalphase(7,000m²)iswellunderway.75%oftheapartmentsinthislastphasehavebeensold,includingablock saleof20apartmentstotheLuxembourggovernmentwhichwillbecompletedin2025. POLAND Threeresidentialprojectsweredeliveredduringthesecondhalfof2024,namelyBernardovoinGdynia(13,000m²),therstphase ofPanoramiqainPoznan(20,000m²)andCzystainWroclaw(10,000m²).Thesethreeprojects,totalling567residentialunits,have anear80%salerate.Fourprojectsarealsocurrentlyunderconstruction:ChmielnaDuoinWarsaw(17,000m²)andtherstthree phasesoftheCavalliaproject(25,000m²)inPoznan.Theseprojectswillbedeliveredin2025. NewpartnershipinPoland InDecember2024,ayearaftersecuringamajorpropertyinGdansk,BPIRealEstatesold50%ofthisdevelopmenttoanewplayeron thePolishmarket,ownedandnancedbyBelgianinvestors.ThistransactionnotonlyfreesupBPIRealEstate’snancialresources fornewprojects,butalsolaysthefoundationsforanewlong-termpartnership.Thistransactionwillhaveapositiveimpactonearn- ings in 2025. EQUITY AND NET FINANCIAL DEBT Shareholders’equitystoodat€160.3millionon31December2024,stablecomparedwith31December2023. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 35 Netnancialdebtis€95.4millionon31December2024(€100.1millionon31December2023).Thisfollowschangesinthevalueof real estate projects. NET INCOME Themaincontributorstothe2024netincomearethemargingeneratedonapartmentssoldanddelivered,andtheprotonthe saleofthefutureheadquartersofLaLoterieNationale.Inaddition,write-downstotallingEU4.8millionwererecorded,mainlyon thestockoftheSchoettermarialproject(residentialprojectontheKirchbergplateau),whichwasfullyimpaired.Inviewofcurrent marketconditionsinLuxembourg,BPIRealEstatehasdecidednottopursueitsdesignsforthisprojectonwhichithadanoptionto purchase. Multitechnics KEY FIGURES (in million €) 2024 2023 Change Revenue 304.3 338.0 -10.0% Operatingincome(EBIT) 10.2 -4.3 n.s. Result for the period - share of the group 6.3 -6.3 n.s. Netnancialsurplus 25.5 -0.5 n.s. Orderbook 286.9 266.5 7.7% REVENUE (in million €) 2024 2023 Change VMA 213.2 252.8 -15.7% MOBIX 91.3 85.3 +7.0% Eliminations intra segment -0.2 -0.1 n.s. Total Multitechnics 304.3 338.0 -10.0% VMAachievedarevenueof€213.2millionon31December2024,downby15.7%comparedto2023.Thedropinsalesisattributable to Business Units Building Electro and HVAC,largelyduetothecompletionoftheZINproject.Conversely,theBusiness Units Mainte- nance and Industrial Automation reportedsignicantlyhigherrevenue. MOBIX’srevenueincreasedby7%to€91.3million.Track-layingandcatenarybusinessincreasedin2024.However,machineutilisa- tionremainsrelativelylow.Theeffortsmadetodiversifyitsactivitiesandclientportfolioarestartingtobearfruit. OPERATING INCOME Operatingincomeon31December2024was€10.2million,upby€14.5millioncomparedto31December2023.Bothdivisionswere protablein2024. TheZINprojectcontinuestoweighonVMA’sresults,buttoalesserextentthanin2023.Therestofthebusinessreportedgoodprot- ability,therebymorethanoffsettingthelossoftheZINproject. MOBIX’soperatingmarginimprovedsignicantlycomparedwith2023,despiteanegativecontributionfromtheLuWaproject,for whichtheProjectAvailabilityCerticatewasobtainedinthefourthquarterof2024. ORDER BOOK (in million €) 2024 2023 Change VMA 171.2 163.2 4.9% MOBIX 115.7 103.3 12.0% Total Multitechnics 286.9 266.5 7.7% Theorderbookreached€286.9million,upby7.7%comparedto31December2023,boostedbyseveralmajorcommercial successes: • afour-yearframeworkagreementwithWalloonnetworkoperatorOREStoinstallundergroundcablesinseveralWalloonprov- inces; Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 36 • installationofallthespecialtechniquesinanewindustrialbuildingintendedfortheproductionofmedicinesinGembloux; • anESCO(EnergyServiceCompany)contractfor18publicbuildingsintheFlemishmunicipalitiesofBeerseandOud-Turnhout. VMA,throughitsVManagerentity,isinchargeoftheengineering,renovationandmaintenanceofthesebuildingsaimingto substantiallyimprovetheirenergyperformance; • afour-yearframeworkcontractfortheSTIBcoveringrenewaloftheprimaryenergynetworkandtechnicalequipment; • aframeworkagreementfortherenewalofrailwaytracksintheBrusselsRegion; • installation of all special techniques for the future headquarters of La Loterie Nationale. NET FINANCIAL SURPLUS Netnancialsurplusamountedto€25.5millionon31December2024,up€26millioncomparedto31December2023.Theoperat- ingcashowgeneratedin2024(€23.5million)explainsthispositiveevolution. Construction&Renovation KEY FIGURES (in million €) 2024 2023 Change Revenue 788.5 872.6 -9.6% Operatingincome(EBIT) 8.3 -0.2 n.s. Result for the period - share of the group 10.6 -0.1 n.s. Netnancialsurplus 255.8 208.9 +22.5% Orderbook 1,343.5 983.2 +36.6% REVENUE (in million €) 2024 2023 Change Belgium 567.7 622.3 -8.8% Luxembourg 60.2 91.2 -34.0% Poland 159.1 139.7 +13.9% Others 2.1 19.7 n.s. Eliminations intra segment -0.6 -0.3 n.s. Total Construction & Renovation 788.5 872.6 -9.6% Revenueamountedto€788.5million,down9.6%comparedtothatof31December2023. Business was strong in Brussels, where the largest projects were the second phase of the Park Lane project on the Tour & Taxis site (350apartmentsforwhichtherstdeliverieshavebegun)andtheZINproject,forwhichprovisionalacceptancewasobtainedin January2025.Inaddition,severaloperationallychallengingBPCprojectsweredeliveredtothesatisfactionofthecustomer. InWallonia,businesscontractedsignicantlyduetothecombinationofthedeliveryofseveralmajorprojectsandadropinorder intake. Conversely,inFlandersbusinessremainedrelativelystrongthanksinparticulartotheconstructionoftheQbuildingforGhentUni- versityHospital,theO’SearesidentialtowerinOstendandblock21/24NieuwZuidinAntwerp.MBG(aConstruction&Renovation subsidiaryoperatinginFlanders)hasalsobeenveryactiveintheportofAntwerp,whereitstwoprojectsforINEOSareprogressing rapidly.Inaddition,activityontheOosterweelverbindingsiteispickingup.Ultimately,thiswillrepresentannualsalesofaround€40 to 50 million for CFE. InLuxembourg,thedropinsaleswasexpected,givencurrentmarketconditions.However,businessisexpectedtogrowin2025, thankstothestart-upofseveralmajorconstructionprojects,althoughitwillnotreturntopre-realestatecrisislevelsbythisyear. InPoland,sustainedactivityforBPIRealEstate(sevenbuildingsunderconstruction,threeofwhichwillbedeliveredin2024)and severalmajorprojectsinthelogisticsandretailsectorscontributedtotheincreaseinrevenue.Asmostofthesemajorprojectswere handedoverinthersthalfof2024,revenuewaslowerinthesecondhalfoftheyear. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 37 OPERATING INCOME Theoperatingincomeamountedto€8.3million,oranincreaseofmorethan€8.5millioncomparedwith31December2023.Con- struction&Renovation’smainsubsidiariesallimprovedtheirresultscomparedwith2023.ThisisparticularlytrueofMBG. ORDER BOOK (in million €) 2024 2023 Change Belgium 1,102.1 712.7 54.6% Luxembourg 150.5 78.3 92.3% Poland 90.9 190.2 -52.2% Others 0.0 2.0 n.s. Total Construction & Renovation 1,343.5 983.2 36.6% Theorderbookreached€1.3billion,anincreaseof36.6%comparedwith31December2023.Thenewordersincludeseveralmajor projectsthatwillbecarriedoutoverseveralyears. Thesituationvariesfromcountrytocountry: • in Belgium, additional orders for the OosterweelverbindingprojectinAntwerplargelyexplaintheincreaseintheorderbook; • inLuxembourg,therewereanumberofcommercialsuccessesinDecember2024; • inPoland,orderintakewasmodestduetoadropinthenumberofnewtendersinlogistics,industryand,toalesserextent,resi- dential.CFEthereforeanticipatesadropinactivityin2025. Amongthecontractswon,themostsignicantare: • constructioninpartnershipofa26,000m²conferencecentreandanadjacent18,000m²ofcebuildingintheEuropeandistrict (Realexproject); • throughtheROCOjoint-venture,inwhichtheCFEgrouphasa6.6%stake,twoadditionalordersforthenorthernpartofthe OosterweelverbindingprojectinAntwerp,inparticulartheconstructionoftunnelsundertheAlbertcanalandtheirconnec- tiontotheR1ringroad.Thesetwoordersrepresentatotalofaround€370millionforCFE’sshare.Theworkwillbespreadover around a decade; • theconstructioninLuxembourgofacomplexofthreeresidentialbuildingswithanabove-groundsurfaceareaof19,300m² (RoutLënsproject-plot14); • constructionofthenewSDWorxheadquartersinAntwerp.Thebuildingwillfeatureaninnovativehybridtimber/concretestruc- ture; • construction of a school in Deurne for AG Vespa; • theconstructioninpartnershipofthenewPWCheadquartersinLuxembourg; • twonewordersforTripleLivingontheNieuwZuidsiteinAntwerp,includingatimber-framebuilding. NET FINANCIAL SURPLUS Netnancialsurplusreachedahistoricallyhighlevel:€255.8millionat31December2024,upby€46.9millioncomparedto31De- cember2023,thanksinparticulartoasignicantimprovementinworkingcapitalrequirements. Investments&Holding CHIFFRESCLÉS (in million €) 2024 2023 Change Revenueexcludingeliminationsbetweensegments 2.0 2.3 -13.0% Eliminationsbetweensegments -38.3 -122.1 n.s. Revenueincludingeliminationsbetweensegments -36.3 -119.8 n.s. Operatingincome(EBIT) 5.1 20.1 -74.7% Result for the period - share of the group -1.0 17.4 -105.5% OPERATING INCOME Theoperatingincomeforthesegmentamountedto€5.1millioncomparedto€20.1millionon31December2023.Thischangecan beexplainedinparticularbyi)thereductioninGreenOffshore’scontributionfrom€9.9millionin2023to€4millionin2024,ii)a lowerallocationoftheHolding’scostsduetolowersalesbysubsidiaries,andiii)theabsenceofnon-recurringincome.Asaremind- er, in 2023 CFE received the termination compensation for the Eupen schools’ DBFM contract. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 38 GreenOffshore(shareCFE:50%) TheRentelandSeaMadewindfarms,inwhichGreenOffshoreholds12.5%and8.75%respectively,werefacedwithlessfavourable weatherconditionsasin2023.Furthermore,unlike2023,thepriceofelectricityremainedwellbelowtheguaranteedprice.Combined greenenergyproductionfromthetwoparksreached2.8Twhin2024(includingcurtailment).OTARY,ofwhichGreenOffshoreisone oftheeightshareholders,EnecoandOceanWindshavedecidedtoformastrategicconsortiumtojointlybidforoffshorewindcon- cessionsinthePrincessElisabethareaofftheBelgiancoast.ArsttenderwaslaunchedinOctober2024fortheconstructionand operation of a 700 MW offshore wind farm. DeepCHolding(shareCFE:50%) In Vietnam, sales of industrial land were more modest than in 2023: 80 hectares compared to 127 hectares in 2023. IAI’s share of salesfellfrom84hectaresto54hectares.Thiscanbeexplainedinpartbytheenactmentofnewrealestatesaleslaws,whichhave ledtodelaysinthesaleofindustrialland.Itisworthnotingthatserviceactivitiesperformedverywellin2024,postingasignicant increase in sales and operating income. DeepCHoldingcontributed€6.4milliontothenetincomeofthesegment. GreenStor(shareCFE:50%) GreenStorhasa38%stakeinBSTOR,acompanythatco-developsbatteryfarmsinBelgium.Therst10MWfarmhasbeenop- erationalsincetheendof2021.Constructionofasecond,withacapacityof50MW,hasbegun.Commissioningisscheduledfor summer2026.Thisproject,locatedinLaLouvièreandinwhichBSTORholdsa50%stake,representsatotalinvestmentofover€70 million.Constructionofathirdfarmisduetostartshortly.Thisfarmwillhaveacapacityof100MW.Otherprojectsarebeinginvesti- gated. GreenStor’s net income for 2024 amounted to €0.8million(0.4millionforCFE’sshare). NET FINANCIAL DEBT Netnancialdebtamountedto€227.6million,anincreasecomparedto31December2023(€201.6million). 1.2. Main risks 1.2.1. General TheExecutiveCommitteeisresponsibleforarranginganinternalcontrolandadequateriskmanagement,whichissubmittedtothe BoardofDirectorsforapproval.TheBoardofDirectorsisresponsibleforassessingtheimplementationofthisframework,takingthe recommendationsoftheAuditCommitteeintoaccount.Atleastonceayear,theAuditCommitteeevaluatestheinternalcontrol systemsthattheExecutiveCommitteehassetup,inordertoascertainthatthemainriskshavebeenproperlyidentied,reported and managed. ThesubsidiariesofCFEareresponsibleforthemanagementoftheirownoperationalandnancialrisks.Theserisks,whichvaryac- cordingtothesector,arenotcentrallymanagedbyCFE.Themanagementteamsofthesubsidiariesinquestionreporttotheirre- spective Board of Directors on their risk management. Thischapterdescribes,ingeneralterms,thenancial,economicandESG-relatedrisksfacingtheGroupontheonehand,andthe operationalrisksassociatedwiththevarioussegmentsinwhichitoperates(eitherdirectlyorindirectly)ontheother. Inordertoidentifyandeffectivelymanagesustainabledevelopmentrisksinparticular,CFEhascarriedoutadoublemateriality assessment(DMA)ofESGrisks,i.e.environmental,socialandgovernancerisks.ThisassessmentandthemanagementoftheseESG risks(inparticularinrelationtothepolicies,objectivesandactionsundertaken)arepresentedindetailandinfulltransparency,as requiredbytheCSRD,intheSustainabilityStatementdetailedinsection[72to126].Toensureacomprehensiveunderstandingofall themainrisks,includingESGrisks,thesearealsobrieydescribedinthischapter. 1.2.2. Financial, economic and ESG-related risks at Group level Interestraterisk CFEisexposedtotheeffectofinterestrateuctuationsonitsvariableratenancialdebt. Thisriskispartlymitigatedbytheimplementationof‘InterestRateSwap’(IRS)andCAP-typeinterestratehedges.However,despite thehedgesputinplace,thesteepriseininterestrateshashadanunfavourableimpactonthenancialstatementsofCFE.The averageinterestrateongrossdebtamountedto4.22%at31December2024,remainingrelativelystable. Liquidityrisk TheGroupisexposedtoliquidityriskinparticular: • obligationstorepayexistingdebt; Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 39 • the general needs of the Group. Tolimittheliquidityrisk,CFEandsomeofitssubsidiariesincreasedtheirsourcesofnancing,ofwhichtherearefour: • conrmedmedium-termbilateralcreditlines; • projectnance-typeloansthatcertainBusinessUnitssetuptonancesomeoftheirprojects; • leasingagreementsforseveralsubsidiaryheadquartersandforsomeconstructionequipment; • treasurynotestocovershortandmedium-termcashrequirements. On31December2024,theGroup’sconrmedcreditlineswere€250million,ofwhich€78millionweredrawn.Inaddition,theGroup has€173.5millionavailablecash. CFEcompliedwithallofitsnancialcovenants. Exchangeraterisks ThemajorityoftheGroup’sactivitiesarelocatedintheEurozone,therebygreatlylimitingtheexchangeraterisk. ThemainexposuresareinPoland(uctuationofthePolishzloty(“PLN”)againsttheEuro)andatDeepCHolding(foreignexchange riskagainsttotheUSdollar(“USD”)andVietnamesedong(“VND”)). Counterpartyrisk TheGroupisexposedtocounterpartyriskoncontractswithprivatecustomers. The measures for managing the aforementioned risk are: • nancialanalysisofcustomerspriortosigningthecontracts; • regular monitoring of credit risk trends throughout the life of the project; • wherenecessary,puttinginplacestart-upadvancesand/orsecurityorparentcompanyguaranteesforcustomerswhose nancialstrengthisdeemedinsufcient. Riskrelatedtolegislativeandregulatorychanges LegalinstabilityinallitsformsrepresentsasignicantriskfortheGroupintermsoflegislation,regulations,taxationandcaselaw, not to mention European regulations. TheGrouprespondstothisriskbycontinuouslymonitoringlegislation. Talentmanagementanddiversity,equityandinclusion(“DEI”)risk Theshortageofskilledtalentisaconstantchallenge,exacerbatedbyincreasedcompetitionandlabourmobility.Themainmeas- ures for managing these risks are: • training: • the attractiveness of the Group, and • putting in place talent retention strategies. Ongoingtrainingisessentialtodevelopemployees’skillsandpreparethemforfuturechallenges.Groupentitiesmustinvestonan ongoingbasisintrainingprogrammestailoredtothespecicneedsoftheconstructionsector,suchasnewtechnologiesandsus- tainablepractices.Furthermore,effectiveretentionstrategies,suchasimprovedworkingconditions,performancerecognitionand career development opportunities, are crucial to retaining talent. Finally,theabsenceofrobustdiversity,equityandinclusion(“DEI”)policiescanlimittheattractionandretentionofemployees, undermininginnovationandproductivity.Inaddition,withoutacultureofinclusion,therisksofdiscriminationandharassmentin- crease,whichcanaffectthewell-beingofemployeesandexposetheGrouptolitigation.Compliancewithnon-discrimination regulationsisessentialtoavoidlegalpenalties.Finally,aninclusiveculturestrengthensemployeecommitmentandenhancesthe Group’sreputation,attractingcustomersandpartnerswhoaresensitivetothesevalues.ByeffectivelyintegratingtheDEIprinciples, Groupentitiescanmitigatetheserisksandbenetfromamoreengagedandproductiveworkforce. Environmentalrisks Generallyspeaking,companiesintheconstructionsectorfaceanumberofmajorenvironmentalrisks.Toidentifyandmanage theserisks,weneedtoassesstheentirelifecycle(“LCA”)ofabuildingorinfrastructureproject. HighCO2emissionscontributetoclimatechange,requiringmeasurestoreducethecarbonfootprintofprojects.Theseemissions comeprimarilyfromthemanufactureofbuildingmaterialsanddevelopingprojects,butwealsohavetotakeintoaccounttheop- erationalemissionsofthebuildingsandinfrastructureweconstruct,throughouttheirentirelifecycle. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 40 Pollution,particularlyfromtheuseofconstructionmaterialsandsiteactivities,hasanimpactonairandsoilquality.Thereisariskof potentialcontaminationofnaturalenvironments,aswellasamoregeneralriskofimpactonbiodiversity. Theincreasingscarcityofmaterials,aggravatedbygrowingdemandanddisruptionstosupplychains,poseschallengesforthe sustainabilityofresources. Wastemanagementisthereforecrucial,asconstructionsitesgeneratelargequantitiesofwastethatmustbesortedandrecycled tominimisetheirimpactontheenvironment.Finally,waterusageisalsoanimportantissue,asconstructionactivitiesconsume large quantities of water, and wastewater discharges can pollute water resources. Inthisregard,theGroupiscommittedtoreducingpollutionandenvironmentalwastebyaimingfor“ZEROenvironmentalincidents”. Tothisend,allGroupteamsarecommittedtoexemplarybehaviourandtorigorouslyfollowingQuality,Health,SafetyandEnviron- mentpolicies(“QHSE”),whicharebasedontherequirementsdetailedinISO9001,ISO45001andISO14001,aswellasVCAcertica- tion. Inparticular,theGroup’sBusinessUnitsmaybesubjecttovariousriskslinkedtotheenvironmentalconditionsoftheprojectsin whichtheyareinvolved. Inadditiontotheeconomicaspects,environmentalriskscanalsobeassessedintermsofimageandreputation,astheoperation maybeaffectedoverthelongtermbytheirconsequences.Fromalongertermperspective,changesinregulationsrelatedtothe ecologicaltransitionmayalsoconstituteariskfactor. Alltheseriskscanthereforegeneratehuman,technical,nancialandlegalissues. The measures for managing the risks are: • analysingtheserisksasearlyasthetenderphaseanddevelopingsolutionswiththedevelopmentteams,takingintoaccount theseissuesasfarupstreamaspossible; • implementingappropriatetechnicalandorganisationalsolutionstoreducerisks–bearinginmindthattheserisksevolve throughout the life of the projects; • restorationcostsrelatedtomajorclimaticeventsmaybepartiallycoveredbyinsurancecompanies. TheenvironmentalissuesrelatingtotheGroup’sactivitiesandtheirpotentialimpactontheenvironmentaredetailedmorespeci- callyinsection2oftheSustainabilityStatement. 1.2.3. Operational risks at Group level Adistinctionshouldbemadebetweentheriskscommontothefourdivisionsandthosespecictoeachsegment. Riskscommontoallfoursegments Risksassociatedwithprojectexecution ThemaincharacteristicoftheGroup’smainactivitiesisthecommitmentmadewhensubmittingaproposaltoperformataskthat isbyitsnatureunique,forapricewithpredeterminedtermsandwithinanagreedtimeschedule. Therisksaremainlyrelatedto: • “upstreamphase”,i.e.beforethecontractissigned: • poor assessment of the project or client; • design and costing errors; • errors in assessing the terms of the contract; • overestimationofavailableinternalresources,and • poorevaluationofsubcontracting. • “downstreamphase”,i.e.afterthecontractissigned: • insufcientorinadequatestaffandsupplies; • difcultcustomerrelations; • encountering the unexpected; • pollution or environmental accidents; • changesimposedbytheclientduringthework; • poor contract management; • changes in the cost of materials and supplies; • supplychaindisruptionandshortagesofrawmaterialsandlabour; Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 41 • failureofpartners(co-contractors,suppliers,subcontractors)orclients; • organisational,technical,contractual,administrativeandregulatorydifcultiesinperformingthecontractualobjective, whichmayaffecttheGroup’sdeadlines,costs,cashow,qualityandreputation,and • disputeoftheinvoiceandthenalaccountbythecustomer. The measures for managing the aforementioned risks are: • “upstream”: • prioranalysis; • negotiationwiththeclienttoaimforabalancedsharingofrisks; • considerationbytheEngagementCommitteepriortosubmittingtendersforprojectsexceedingacertainthreshold; • assessmentoftheappropriatesizeofteamsinvolved,and • incorporationoffeedbackinthedesignphase. • “downstream”: • organising project site preparation; • settingupspecicandappropriatemanagementsystems; • applyingpricerevisionformulaeorupstreamconsiderationoftheimpactofvariationsincostsnotcoveredbytheformu- lae; • transferringrisktosubcontractorsandsuppliers; • prior selection of technical solutions and equipment; • dialogue with the customer and project owner; • drafting contractual clauses stipulating reciprocal commitments; • providingpaymentguarantees, • arranging insurance policies. Risksrelatedtoination InationremainsrelativelyhighinbothBelgiumandPoland,buthaslargelyrecededfromitspeakin2022-2023. Inationriskismitigatedby: • inserting a price revision clauses in contracts, and • concludinglump-sumcontractswithcertainsubcontractorsand/orsuppliers. Economicrisks TheGroup’sfoursegmentsarebynaturesubjecttostrongcyclicaluctuations.Nevertheless,thisobservationmustbequaliedfor eachsegment,sincethekeyfactorscanvarybetweenthem. Thus,theconstructionandreal-estatedevelopmentactivitiesrelatedtotheofcepropertymarketmoveinlinewiththetraditional economiccycle,whiletheresidentialbusinessdependsmoredirectlyongeneraleconomicconditions,consumercondenceand interest rates. ThemeasurestakenbytheGrouptomanagetheserisksare: • diversicationoftheGroup’sactivities; • monitoringofupstreamordersthroughthe“selective bidding” procedure, and • monitoringchangesintheorderbookandprojectperformance. Legalrisks Segmentactivitiesarebasedoncontractsthataresubjecttoacomplexregulatoryenvironmentasconcernstheplaceswhere servicesareperformedandtheeldsofactivityinvolved.Disputesmayariseduringtheperformanceofcontracts,resultinginpar- ticular from assessment differences of new elements during performance, a change in the customer’s governance, new case law, even or a misinterpretation of contractual clauses. InformationonthemaindisputesandarbitrationsinwhichtheGroupisinvolvedisprovidedinnote29(Disputes)oftheconsoli- datednancialstatements.Thesedisputesarereviewedattheyear-enddateand,ifnecessary,provisionsaremadetocoverthe estimated risks. Riskmanagementmeasuresmainlyinvolvetheinclusionofcontractualclausesto: • passingontothecustomeranyadditionalcostsand/ortimeresultingfromchangesmadeatthecustomer’srequest afterthecontracthasbeensigned • stoppingtheworkincaseofnon-payment; • excluding consequential damages; • excludingorlimitingliabilityforexistingpollution; Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 42 • limitingcontractualresponsibilityfortheentireprojecttoareasonableshareofthecontractamount; • cappingpenaltiesfordelayandperformanceatanacceptablepercentageofthecontractamount; • providingforanadjustmentofthecontractualprovisions(price,deadline)intheeventoflegislative,scalorregulatory changes; • insertingaforcemajeureclause(politicalrisk,unilateraldecisionofthecustomerorgranter,economicdisruption,bad weather)orearlyterminationoftheproject,and • ensuring that insurance cover is activated. Legislativeandregulatorycompliance Giventhediversityoftheiractivitiesandgeographicallocations,theGroup’sdifferentBusinessUnitsareexposedtoaspeciclegis- lativeandregulatoryenvironmentwhichvarydependingonthelocationwheretheservicesareprovidedandtheprofessionscon- cerned. Inparticular,thesemustcomplywiththerulesrelatingto: • theproceduresforawardingandperformingpublicorprivatelawcontracts; • constructionlaw,particularlythetechnicalrulesgoverningtheprovisionofservices,suppliesandworks,and • environmentallaw,economiclaw,labourlaw,sociallawandcompetitionlaw. TheGroup’sabilitytoadapttonewregulationsandhowitmonitorsstandardsenablesittosignicantlycontrollegislativeandreg- ulatoryrisks. ITsecurityrisks Inthedigitalandteleworkingera,ITrisksincreasinglyconstitutethreatsthatareliabletoslowdowntheactivitiesoftheBusiness Unitsorcompromisetheintegrityoftheirmostvaluableresourcesanddata. ThemainITrisksarevirusesandmalware,fraudulentemail,cyber-attacks,lossofcondentialinformation,operatingerrors,riskof physicallossortheft,andmisappropriation. CFE’sriskmanagementmeasurescanbesummarisedasfollow: • installation of professional antivirus software on all workstations and servers, with regular updates; • installingadditionalauthenticationsystemsfortechnicalusers(administrators); • implementingPrivilegedIdentityManagement(“PIM”)controlstograntspecichigh-privilegeactionsonlytostandardITusers foralimitedtimeandafterapprovalbyacentralhigh-levelexpert; • installingsecuritysolutionsforcloudsolutions(SaaS)usedbyCFEandtosecureInternetuse: • usingsecuretunnels(“VPN”)toconnectusersworkingremotely; • removingpublicaccesstocriticalapplicationsviatheInternetwithoutaVPN; • deliveringregularcybersecuritytrainingandawareness-buildingsessionsforallstaff,sharinghowtoprotectyourselffroma cybersecurityattack(phishing,datatheftetc.); • addingaprofessionalservicetoOutlookforreportingandanalysing“phishing”e-mails; • implementinganemailprotectionsolutionthatscansallincomingemailsandblocksphishingattemptsandknownmalware beforetheyreachtheinboxesofCFEemployees; • implementingawell-conguredandup-to-datecomplexpasswordandmulti-factorauthenticationstrategy; • usingexternalserviceproviderstoanalysesystemsandalertonanomaliespointingtoapotentialsecurityincident; • usingtheChiefInformationSecurityOfcerstoaudittheimplementationofoursecuritypolicies; • commissioning a red teamingexercisecarriedoutbyanethicalhackeronsomeoftheGroup’sentitiestochecktheeffective- nessofthesecurityprotectionsystemsandtheireffectiveimplementation; • restrictingaccesstocondentialandsensitiverecordsaccordingtouserproles:inthisregard,recordsandresourcesare partitionedbydepartment,withauthentication; • settingupaneffectivebackupsystem; • systematicallytrainingemployeesintheuseofapplicationsandsoftware; • systematicallycheckingeachrequestforanewapplicationagainstasecuritychecklisttoensurethatitcompliesbydesign withtheGroup’ssecuritypolicies,orgivingadviceontheirimplementation,and • anannualassessmentbytheGroup’sITpartnerofitsITsecurityandbusinesscontinuitypractices,usingamaturityquestion- naire. Theyear2024wascharacterisedbynumerousinterventionsbydedicatedITteams,withnosignicantconsequencesfortheBusi- nessUnitsconcerned. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 43 OperationalrisksspecictotheConstruction&RenovationandMultitechnicssegments Risksrelatedtocustomersolvency Boththesesegmentsareexposedtotheriskofcustomerinsolvency.Themeasuresformanagingtheserisksare: • checkingthecreditworthinessofcustomerswhensubmittingtenders; • regularlymonitoringtheoutstandingamountsowedbycustomersandadapting,ifnecessary,thepositionoftheBusinessUnit concerned vis-à-vis the customer, and • forcustomersshowingamaterialcreditrisk,requiringdownpaymentsand/orrstdemandbankguaranteesbeforework starts. Risksrelatedtothemanagementandworkforce Thechallengeofattractingandretainingtalentisessentialinagroupwheretheconstructionbusinessisevolvingveryquicklyand wherespecialisationandjob-specicexpertisegivesacompetitiveadvantageinrespondingtocallsfortender. TheConstructionandRenovationactivitiesandtheMultitechnicssegmentareexperiencingachronicshortageofqualiedsupervi- sorystaffandworkers.Thesuccessofprojects,inthestudy,preparationandexecutionphases,dependsbothonemployees’quali- cationsandskillsandontheiravailabilityinthelabourmarket. ThemeasurestakenbytheGrouptomanagetheserisksare: • increasingtheskillsoftheGroup’semployeesthroughahumancapitaldevelopmentcycle; • settingupatrainingprogrammeforeachemployee; • developingprogrammestopromoteinternalmobility,and • setting up local partnerships with economic, social, institutional and academic stakeholders. Contractualrisksrelatedtopublic-privatepartnerships Thelegalandcontractualrisksareevengreaterinapublic-privatepartnershipcontract(intheformof,forexample,Design,Build, FinanceandMaintain(“DBFM”)contracts,concessioncontracts,ESCOenergyperformancecontractsetc.),whichmayvaryindu- rationfromafewyearstoseveraldecades.Therisksareassessedbeforebidsubmissionduringthestudyphase,whichisgenerally much longer than for a conventional construction contract. The main risks connected with the operation of assets given in conces- sionrelatetomaintainingtheviabilityoftheassetinviewofthemaintenance,energyandrepairobjectivesdenedintheconces- sion contract. Foranybuildingorinfrastructurethatisoperatedunderapublic-privatepartnershipcontract,theequipmentrenewalcostandthe worksmaintenancecostmustbeprovidedforonthebasisofaforecastmajormaintenanceplan. Themeasurestomanagetheseriskscanbesummarisedasfollows: • discussionbytheEngagementCommitteepriortotendering; • settinguptheoperationinaspecialpurposevehiclewithnancingthatisforthemostpartprovidedthroughdebtwithout recourse or with limited recourse against the shareholders; • involvementofthelendersintheearlystagesoftheprojects,and • seeking advice from external consultants. Legalrisksrelatedtosocialandlabourlaw ThesocialrisksfacedbyboththeConstruction&RenovationandMultitechnicssegmentsarebasedonthecross-bordersubcon- tractingchainmainlyintheconstructionsector. ThemainrisksidentiedforconstructionsitesinBelgiumarethequalicationofrst-tiersubcontracts,occupationandtheabsence of a checkin@work statement. Failuretocomplywithsociallegislationmayconstitutealegalandreputationalrisk. The following risk management measures are therefore in place: • puttinginplacesub-contractingpolicies; • implementingtrainingapplicabletoallBusinessUnits; • carryingoutsocialauditsofsubcontractorsonsitewithparticularattentiontocompliancewithsocialobligations,and • half-yearlyanalysisofsocialrisksandestablishingactionplans. TheBPCGroupBusinessUnithasbeensummonedseveraltimesinrecentyearstoappearbeforetheCourtsandTribunalsforcases inthesematters,forallegedbreachesofemploymentlawcommittedbysubcontractors.TherstthreecasesbroughtbytheBelgian LabourInspectorateandinvolvingtheBPCBusinessUnitallresultedinfavourabledecisionsbeforetheBrusselsCourtofAppeal,which Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 44 arenownal.Thelastcaseonsocialcriminalmatters,broughtbytheInspectorateagainstatemporarycompanycomposedofBPC andapartnerforthe“JardinsdelaChasse”site,resultedinafavourablerulingatrstinstanceon17December2024.However,the LabourInspectorateappealedagainstthisdecisionon16January2025. Risksrelatedtopersonalsafety TheoftencomplexprojectsandoperationscarriedoutbytheGroup’soperatingBusinessUnitsaresubjecttohazardsthatcan jeopardisethehealth,safetyandqualityoflifeatworkofemployeesandsubcontractors. Intheeventofanaccidentornear-accident,theactivityoftheBusinessUnitconcernedmaybeseriouslyaffectedandtheresump- tionofthatactivityisconditionalontheimplementationofappropriatecorrectivemeasures. Toreducepersonalsafetyrisks,theGrouphasstrengtheneditscommitmenttosafetywiththelaunchin2023ofanew“GOFOR ZERO”safetypolicy’.Oneoftheaimsofthispolicyistoensurethatallworkers,employees,partners,subcontractors,visitorsandcus- tomersgohomeinjury-freeafterwork,whatevertheoperationalandcommercialchallenges. CFEisaimingfor“ZEROworkplaceaccidents”.Toachievethis,eachemployeeappliesthevaluesofsharedvigilancebyensuring theirownsafetyaswellasthatofthepeopleworkingalongsidethem.EachemployeealsohastheopportunitytosaySTOPifthey feelthattheworkbeingcarriedoutcouldputthematrisk. In addition, CFE is implementing the following risk management measures: • theintroductionofsafetyvisitstoconstructionsitesbyGroupandBusinessUnitmanagersfromtheConstruction&Renovation segment,withtheaimofpromotingsafetyandwell-beingintheworkplaceandfosteringacultureofsafety,visibleexemplary behaviour,riskidenticationandimprovedcommunicationbetweenworkersinalldepartments; • raising awareness of tidiness and cleanliness; • prioranalysisoftherisksinvolvedasfarupstreamoftheprojectsaspossibleandthelatestatthestartofoperations; • providing appropriate personal protective equipment; • putting in place collective protective equipment suited to prevention procedures and operating methods resulting from risk assessments(markings,railings,stairs,etc.) • conductinginternalandexternalauditstoassessproceduresrelatingtoprojectswithanimpactonwell-beingatwork; • setting up partnerships with external organisations; • organisinginnovativetrainingandawareness-raisingevents,suchasvirtualrealitytraining,tomeettheGroup’sneedsasbest aspossible; • includingclausesincontractsdedicatedtothesafetyofsubcontractors,and • complyingwithhealth-relatedandenvironmentalmeasuresputinplacebythelocalauthorities. OperationalrisksspecictotheRealEstateDevelopmentsegment Risksrelatingtotheeconomicenvironment ProjectsarecurrentlysituatedexclusivelyinBelgium,LuxembourgandPoland. Achangeintheprincipalmacroeconomicindicators,thegeopoliticalenvironmentandtheeconomiccyclemoregenerallymay impactthecondenceofhouseholds,investorsandprivateandpublicentities,andmaybringabout(i)afallindemandforhous- ingandretailproperties,aswellasothercategoriesofrealestate,(ii)lowersalepricesandlowerreturnsonwhichthosesaleprices maybecalculated,and(iii)ahigherriskofdefaultbyserviceproviders,buildingcontractorsandotherstakeholders. Variationsininterestratesmayaffecttheabilityofhouseholdsandinvestorstoacquireresidentialpropertiesand,consequently, diminish the demand for such class of assets. Ontheofcemarket,variationsinlong-terminterestratesmayalsoaffectthereturnonwhichthepriceofofcepropertiesiscalcu- lated.Suchvariationsmayalsohaveasignicantimpactonthesegment’sabilitytosellresidentialorofceproperties. However, certain factors can help mitigate these risks: • duetotheshortageofwell-locatedland,supplyanddemandareinprincipleunderincreasingpressure; • sectoraldiversicationofcustomers; • thevalueofrealestateisprimarilydeterminedbythecommercialvalueofthelocationoftheproperty,and • investmentsareconcentratedinsub-regionswithhighpurchasingpower. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 45 Risksassociatedwiththeremovalofthereduced6%VATrateonthesaleofhousing(off-plan)fol- lowingdemolition-reconstructionworkinBelgium From30June2025,thereduced6%VATratewillnolongerapplytosalesofhousing(off-plan)followingdemolition-reconstruction work. This reform has an impact on the activities of BPI Real Estate Belgium insofar as this reduced rate provided an economic stim- ulustotherealestatedevelopmentsectorandtosales.TheUnionProfessionnelleduSecteurdel’Immobilier(“UPSI”),inassociation withanumberofrealestatedevelopersincludingBPIRealEstateBelgium,lodgedanactionforannulmentwiththeConstitutional Courtagainsttheprovisionslimitingthefavourable6%VATregimeforthesupply(sales)ofrealestate.TheConstitutionalCourtre- jectedthisactionforannulmentinadecisiondated20February2025.However,thenewFederalGovernmenthassinceannounced thatthefavourable6%VATregimeforthesupply(sale)ofrealestateistobeextended.Theprecisedetailsofthisextensionarenot yetknownatthetimeofwriting. Risksrelatedtorealestateacquisitions Beforeacquiringlandfordevelopment,theBusinessUnitsintheRealEstateDevelopmentsegmentstudythenancial,technicaland townplanningfeasibilityoftherealestateproject.Thosefeasibilitystudiesarecarriedoutbyexternalexpertsorconsultantsandare basedonassumptionsconcerningeconomic,marketandotherconditions(includingestimatesofpotentialsaleprices).Despitethese BusinessUnits’diligentapproach,itispossiblethattheyfailtotakeaccountof-ordonotknow-alltherelevantfactorsneededto make an informed decision. Toreducethisrisk,thefollowingmeasureshavebeentaken: • systematicpriorreviewofallpropertyacquisitionsbytheCFE’sInvestmentCommittee,and • inserting suspensive conditions in land purchase contracts. Risksrelatedtorealestatedevelopment Allprojectsaredependentonplanning,buildingandenvironmentalpermitsbeinggranted.Consequently,anyprojectmaybeaf- fectedby(i)inabilitytoobtain,maintainorrenewthenecessarypermitsor(ii)anydelayintheobtaining,maintainingorrenewing ofthosepermits,aswellas(iii)theBusinessUnitsbeingunabletocomplywiththeconditionsofthosepermits.Infact,thenumberof appealslodgedagainstpermitsfornewprojectsisontheincrease,especiallyintheBrusselsregion. Furthermore,changesmadebythecompetentauthoritiestothelegalframeworkandtheadministrativeproceduressurrounding thelingfor,deliveryorvalidityofsuchpermitsmayhaveanegativeimpactonthenancialresultofaproject. The following management measures are therefore in place: • ensuringthatmanagersandstaffhavethenecessaryknowledgeconcerningplanningandpermitlaw; • using the services of external consultants specialising in planning law in the region concerned; • priorreviewofplanningpermitwhendevelopingbuildings, • insurance policies to cover the risk of withdrawal or cancellation of permits, and • ongoingassessmentofandcompliancewithchangestoplanningpermitsandauthorisations,andanticipationofpossible changes. Furthermore,projectdeliverymaybedelayedorcompromisedbyvariousfactors,suchasweatherconditions,buildingsiteacci- dents,naturaldisasters,industrialdisputes,shortageofequipmentorbuildingmaterials,accidentsorotherunforeseendifculties. TheBusinessUnitsintheRealEstateDevelopmentsegmentcanalsoincuradditionalprojectconstructionanddevelopmentcosts and penalties that exceed the initial estimates and lead times. To mitigate these risks, the following measures are in place: • transferringconstructionriskstosubcontractors; • almostsystematicassigningofprojectconstructiontoCFEsubsidiaries,and • arranging appropriate insurance policies. Liquidityandnancingrisks Thedevelopmentofprojectsinvolvessubstantialinvestmentsthatareprimarilynancedbyequityandexternalnancingsources. Itispossible,althoughnotlikely,thatBPIBelgium,BPILuxembourgorBPIPolandareunabletorenewtheexistingnanceagreements orattractnewnancingoncommerciallyfavourableterms. To mitigate these risks, the following managements measures are in place: • diversifyingfundingsources; • increasingconrmedcreditlines; • usingacommercialpaperandmediumtermtreasurynotesprogramme,and Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 46 • severalnewprojectnancearrangementsinbothBelgium,LuxembourgandPolandwereputinplaceonsimilartermstothose prevailingbeforethehealthcrisis. Asat31December2024,BPIBelgiumanditssubsidiaryBPILuxembourgtogetherhad€60millioninconrmedbilateralcreditlines, ofwhich€3millionhadbeendrawndownbyBPILuxembourg. Risksrelatedtospecial-purposevehicles Tocarryoutsomeoftheirrealestateprojects,BPIBelgium,BPILuxembourgand/orBPIPolandbelongtospecialpurposevehicles (“SPVs”)whichproviderealguaranteesinsupportoftheircreditfacilities. Therisk,intheeventofthefailureofthistypeofcompanyandexerciseoftheguarantees,isthattheproceedsfromsuchexercise arenotsufcienttocoversomeoralloftheamountofshareholders’equityorequivalentusedascollateralforsettingupthecredit facility. TheBusinessUnitsconcernedthereforetakemeasuresandstepstomitigaterisk,suchas: • sharing risk with partners; • nancingthroughnon-recourseorlimited-recoursedebtagainstshareholders; • payingspecialattentiontothepreparationphaseandstakeholderrelations,and • monitoring marketing and sales momentum. Risksrelatedtotheabilitytosellprojects Theactivity,nancialposition,resultsandprospectsofBusinessUnits’operatinginRealEstateDevelopmentarealmostentirelyde- pendent on the sale of its projects. Investmentsinrealestateprojectsforwhichnoplanningpermissionhasbeenobtainedyetarerelativelyilliquid.TheBusinessUnits concernedmaybeunabletondasuitablebuyerforthistypeofassetifitneedscash.Moreover,marketconditionsmayforce them sell their projects at lower prices than planned. Thesegment’sinabilitytogeneratepositivecashowfromprojectsalescanadverselyaffectitscapacitytorepayitsdebts. Tomitigatethisrisk,thefollowingmeasuresandfactorscomeintoplay: • carryingoutcarefulmarketresearchbeforeanyinvestmentandduringdevelopment; • inserting suspensive conditions in land purchase contracts. • limiting unsecured transactions, with a minimum pre-commercialisation threshold required; • elasticityofdemandintheresidentialmarket,and • adoptingaconservativeandprudentnancingstrategy,characterisedbydiversicationofnancingsourcesandabroad groupofbankingpartners. Risksrelatedtoportfolioconcentration Thevastmajorityofprojectsinthissegmentareresidential.Consequently,anyslowdownorregulatorychangesoranymarket changesaffectingtheresidentialmarketmayhaveaconsiderablenegativeimpactonthesegment’sresultsandoperations. Inthenancialyear2023,BPILuxembourgwasparticularlyaffectedbyaslowdowninthesectorandthemarkethasrecoveredonly slightlyin2024. The Group therefore takes the following risk management measures: • diversifyingtheportfolioandprojects,inBelgium,PolandandLuxembourg,and • maximisinganticipationofanylegislativechangelikelytoimpactprojectsbyprovidingforanadjustmentofthecontractual provisions(price,deadline)intheeventoflegislative,scalorregulatorychange. Risksrelatedtostakeholders The Real Estate Development segment maintains contractual relations with several parties, such as partners, investors, tenants, en- trepreneurs,nancialinstitutionsandarchitects.Thosestakeholdersmayexperiencedisruptionsintheiroperationsorbeconfronted withnancialdifcultiesthatmaycauseadelayortotalinabilitytomeettheircontractualobligations. TheBusinessUnitsoftheRealEstateDevelopmentsegmentarethereforeensuringthatthefollowingmeasuresareimplemented: • strengthening controls for awarding and monitoring works; • includingguaranteesincontractualagreements,withapreferenceforrstdemandbankguarantees; • prior screening and ongoing monitoring of stakeholder creditworthiness, and • arranging appropriate insurance policies. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 47 RisksspecictotheInvestments&Holdingsegment DEEP C HOLDING (PORT CONCESSIONS IN VIETNAM) Geopoliticalrisk ThepoliticalsituationinVietnamhasbeenstableformanyyears.However,evenifhighlyunlikely,politicalriskcanneverbecom- pletelyruledout. Therefore,otherthanmonitoringtheevolutionofthecountry’spoliticalsituation,nootherspecicmeasurestomanagethisriskare currentlyinplace. Liquidityandnancingrisks Projectdevelopmentrequiressignicantinvestment. DeepCHoldingmaybeexposedtoliquidityrisk,inparticular: • obligationstorepayexistingdebt,and • general needs. DeepCHoldinghasthereforeputinplacecorporatenancingwithitssubsidiaryInfraAsiaInvestmentHK,aswellaslocalnancing inVietnamtonancebothxedassetssuchaswarehousesorleasedinfrastructure,andtheworkingcapitalrequirementsofthe variousindustrialzonesetc. Green Offshore (minority stakes in Belgian offshore wind farms, Rentel and SeaMade) Giventhat(i)thetwowindfarmsarebuilt,nancedandfullyoperationaland(ii)aminimumpricefortheelectricityproducedis guaranteedbyagreencerticatemechanism,thesignicantresidualrisksare: • maintenancebudgetoverruns,and • theproductionofgreenelectricity,whichdependsonweatherconditionsandtheavailabilityofwindturbines. 1.3. Majoreventsafterthecloseofthenancialyear NosignicantchangeintheGroup’snancialandcommercialsituationhasoccurredsince31December2024. 1.4. Research and development In2024,theGrouppursuedanumberofinnovativeprojects.Oneoftheseprojectsinvolveskitting,whichtheBPCGroupBusinessUnit hassuccessfullytrialledonitsErasmeIandTervurensites.Thisintelligentlogisticstoolisaimedinparticularatdeliveringgoodstoa consolidationcentre,re-palletisingadhocandLEAN-compliantphaseddeliverydirectlytotheworkareaconcerned. TheGroup’sdigitaltransitionalsoacceleratedin2024bysteppingupitseffortstodeveloptoolsbasedonarticialintelligence. TheseadvancesarepartoftheGroup’sdrivetomoderniseitsapproachtothebuildingindustryandofferitscustomerssafer,sus- tainable,high-performancesolutions. Forexample,theGrouphasbeenworkingonaprojectbasedonarticialintelligence,called“AI-GeneratedIncomeForecastingfor ConstructionSites”.TheinitialaimofthisprojectwastousehistoricalcashowdatafromthesitesoftheConstruction&Renova- tionsegmenttocreatescriptsapplyingpolynomialregressionatdifferentdegreesinordertooptimisecashowforecasts.Articial intelligencewouldbeusedtoadaptthesescriptsdynamically,takingaccountofprojectsectors(residential,logistics,industrial, etc.),buildingheightsandfoundationmethods.Moreover,theteamsexploredpotentialapplicationsin2024,consideringthatfuture professionaldevelopmentcouldbenetfromtheintegrationofERPsystems,withdatabeingakeyfactor. Finally,CFEPolandcontinuestouseandupdateitsparametricdesignmodelthatgeneratesa3Dmodel,acarbonfootprintassess- mentandabudgetestimateforlogisticsorindustrialprojectsinjustafewclicks.Thistoolhelpstounderstandtheimpactofdiffer- entparametersonprojectbudgetsandcarbonfootprints,enablingtheGrouptoproposemoreoptimalbuildingstoitscustomers. 1.5. Financial instruments TheGrouphasdenedasystemofinvestmentlimitstomanagethecounterpartyrisk.Thissystemdeterminesmaximumamounts eligibleforinvestmentbycounterpartydenedaccordingtotheircreditratingpublishedbyStandard&Poor’sandMoody’s.These limitsareregularlymonitoredandupdated. 1.6. Outlook 2025 Themedium-andlong-termoutlookforCFEispositive,thankstoitspositioninginthegrowthmarketsofrenovationandenergy performanceimprovementofexistingbuildings,thedevelopmentofinfrastructurelinkedtotheenergytransitionandsustainable mobilityaswellasindustrialautomation. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 48 TheRealEstatemarketremainsdisruptedintheshortterm,bothintheresidentialandofcesectors. BPI Real Estate is expected to post a positive net income in 2025, although the extent of this will depend on the strength and speed oftherealestatemarketrecoveryinBelgiumasinLuxembourg. VMAexpectsastableactivitylevelfor2025combinedwithanimprovementinoperatingmargin. AtMOBIX,thebenetsofthediversicationofitsoperationsissettointensifyin2025. TheConstruction&Renovationsubsidiariesanticipateadeclineinsalesin2025,giventhepersistentlyunsettledeconomicenviron- ment.Prioritywillbegiventoselectivelytakingonnewordersandimprovingoperatingperformance. CFE expects a moderate contraction in turnover in 2025 and net income close to that of 2024. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 49 III. CORPORATE GOVERNANCE STATEMENT 1. Reference code Withregardtocorporategovernance,thisstatementcontainstheinformationrequiredbytheCodeofCompaniesandAssocia- tions(“CSA”),aswellasbytheBelgianCorporateGovernanceCode2020(“Code 2020”). CFEhasadoptedthe2020Codeasitscodeofreferenceandappliesitsrecommendationsinaccordancewiththe“complyorex- plain” principle. TheCompany’sCorporateGovernanceCharterandDealingCodecanbeconsultedontheCompany’swebsitewww.cfe.be.www. cfe.be. ThisCorporateGovernanceStatementdescribesthecompositionoftheCFE’sBoardofDirectorsanditsCommittees,andhowthey operate.ItcommentsonthepracticalapplicationofCFE’sgovernancerulesduringthescalyearending31December2024.Italso speciestheprovisionsoftheCode2020theCompanydoesnotcomplywithandexplainsthesederogations.Italsoincludesthe remunerationpolicyandtheremunerationreport.Lastly,itreectsthemainfeaturesoftheCompany’sinternalcontrolandrisk managementsystems. 2. The Board of Directors and its Committees 2.1. Board of Directors TheCompanyhasoptedforasingle-tierstructure.Consequently,theBoardofDirectorsisresponsibleforthegeneralconductof theCompany’sbusinessandisaccountableforitsmanagementinaccordancewitharticles7:93and7:94oftheCSA. TheBoardofDirectorsdeterminesthedirectionoftheCompany’sactivities,itsstrategyandkeypolicies.Itexaminesandapproves relatedsignicantoperations,ensuresthattheyareproperlyexecutedanddenesanymeasuresneededtocarryoutitspolicies.It decidesonthelevelofrisktheCompanyispreparedtotake. In particular, the Board of Directors: • approvesthegeneralinternalcontrolandriskmanagementsystemandchecksthatthissystemiscorrectlyimplemented; • takesallmeasuresneededtoensuretheintegrityofthenancialstatements; • supervises the activities of the auditor; • reviews the performance of the CEO and the Executive Committee, and • ensuresthatthespecialcommitteeswithintheBoardofDirectorsfunctionproperlyandefciently. 2.1.1. MembersoftheBoardofDirectorsasof31December2024 LUC BERTRAND Capacity Non-executivedirector-Chairman(sinceFebruary2016) Committees ChairoftheNominationandRemunerationCommitteesinceMay2021 Nationality and year of birth Belgian,born1951 First appointment as Director December2013 Current term of ofce expires 2025 AGM Training and experience LucBertrandobtainedacommercialengineeringdegreefromKULeu- ven in 1971. He started his career at Bankers Trust, where he worked as Vice-President and Regional Sales Manager, Northern Europe. He was appointed director of Ackermans & van Haaren in 1985 and was chair- man of the Executive Committee until 2016. He is Chairman of the Board of Directors of Ackermans & van Haaren, DEME,SIPEFandJMFinnandadirectorofDelenPrivateBank,BankVan Breda(until4May2023)andVerdantBioscience. Luc Bertrand has extensive expertise in corporate governance. Having servedonanumberofauditandriskcommittees,heiswellversedinrisk managementandinternalcontrolsystems. HewasalsoafoundingmemberofGuberna,aBelgianinstitutethat promotessoundgovernance,andformanyyearswasChairmanofits Board and then Chairman of its Board of Trustees. He is also Chairman of theInstitutdeDuveandMiddelheimPromotors,andamemberofsever- alotherboardsofnon-protassociationsandpublicinstitutionssuchas theMayervandenBerghMuseumandEuropalia. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 50 PIET DEJONGHE Capacity Non-executive director Committees MemberoftheAuditCommittee(sinceJune2022) Nationality and year of birth Belgian,born1966 First appointment as Director December2013 Current term of ofce expires 2025 AGM Training and experience PietDejonghereceived,afteradegreeinlaw(KULeuven,1989),apost- graduatedegreeinmanagement(KULeuven,1990)andanMBAfrom INSEAD(1993).Heisco-CEOofAckermans&vanHaaren.Beforejoining themin1995,hewasalawyerwithA§OShearmanandaconsultantwith BCG.AsamemberoftheinvestmentteamofAckermans&VanHaaren, PietDejongheparticipatesincontinuoustrainingtoidentifyESGrisksand opportunitiesandstaysupdatedonESGregulations.PietDejongheis alsoamemberofAckermans&VanHaaren’sESGsteeringcommittee, where he monitors and advises on Ackermans & Van Haaren’s ESG stra- tegic priorities and progress. KOEN JANSSEN Capacity Non-executive director Committees / Nationality and year of birth Belgian,born1970 First appointment as Director December2013 Current term of ofce expires 2025 AGM Training and experience KoenJanssenreceived,afteradegreeincivilengineeringandelec- tromechanics(KULeuven,1993),anMBAfromIEFSI(France,1994).He workedforRecticel,INGInvestmentBankingandINGPrivateEquitybefore joiningAckermans&vanHaarenin2001.HeisamemberoftheExec- utiveCommittee.KoenJanssenhasexpertisein,amongotherthings, offshoreenergysolutions,marineinfrastructure,environmentalprojects, energystoragefacilitiesandbiogasinstallations.Asamemberofthe Ackermans&VanHaareninvestmentteam,KoenJanssenparticipates incontinuoustrainingcoursestoidentifyESGrisksandopportunitiesand staysupdatedonESGregulations. AN HERREMANS Capacity Non-executive director Committees / Nationality and year of birth Belgian,born1982 First appointment as Director June2022 Current term of ofce expires 2026 AGM Training and experience An Herremans received a Master’s degree in Business Engineering from theKULeuvenandaMaster’sdegreeinFinancefromtheVlerickBusiness School.ShehasworkedasStrategyOfceManageratBarcoandas SeniorConsultantatRolandBergerStrategyConsultants.Sheiscurrently amemberoftheExecutiveCommitteeatAckermans&vanHaaren.As amemberoftheAckermans&VanHaareninvestmentteam,AnHerre- manstakespartincontinuoustrainingtoidentifyESGrisksandopportu- nitiesandstaysupdatedonESGregulations. WARAKU BV, represented by HELENE BOSTOEN (since1January2024followingco-optation,previouslyHélèneBostoenasanindividual) Capacity Independent Director Committees MemberoftheAuditCommitteesinceMay2021 Nationality and year of birth Belgian,born1977 First appointment as Director May2021 Current term of ofce expires 2025 AGM Training and experience HélèneBostoenisamanagementengineer(SolvayBusinessSchool, ULB,Brussels)andholdsanMBAfromINSEAD.Shebeganhercareerat MerrillLynchinNewYork.In2005,shefoundedItzaFood,nowMexma Food, which produces tortillas. In 2007, she took over the management ofafamilygroup,Fenixco,activeinresidentialrealestatedevelopment in Belgium, Poland and France. She is an independent director of Home InvestBelgiumandAbattoirNVandisco-chairoftheUPSI-BVSprofes- sional federation’s developers’ commission. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 51 LIEVE CRETEN BV, represented by LIEVE CRETEN Capacity Independent Director Committees ChairoftheAuditCommitteesinceJuly2022 MemberoftheNominationandRemunerationCommitteesinceJuly 2022 Nationality and year of birth Belgian,born1965 First appointment as Director May2022 Current term of ofce expires 2026 AGM Training and experience LieveCretenisamanagementengineer(KULeuven,1989)andalso holdsaMaster’sdegreeintaxation(1989).ShewasapartneratDeloitte forovertwentyyears,whereshedevelopedtheM&Apracticeandled theFinancialAdvisorypracticeasaManagingPartnerfrom2008to2019. ShewasamemberoftheExecutiveCommitteeofDeloitteBelgiumuntil 2019.Inaddition,shewasamemberofDeloitteFinancialAdvisory’sglob- alexecutiveteamfrom2015to2021.LieveCreteniscurrentlyactiveasan independent director in several companies and also as an independent consultant. B Global Management SRL, represented by STÉPHANE BURTON Capacity Independent Director Committees MemberoftheNominationandRemunerationCommitteesinceJune 2022 Nationality and year of birth Belgian,born1973 First appointment as Director June2022 Current term of ofce expires 2026 AGM Training and experience StéphaneBurtonreceivedaMasterinLawattheCatholicUniversity ofLeuven(1996),aMasterinSocial,Economic&TaxLawatUniversiteit Gent(1997)andaGlobalExecutiveMBAfromINSEAD(2013).Hebeganhis careerasacorporatelawyer,beforejoiningtheTAT/SabenaTechnics groupin2007.Heheldanumberofdifferentpositions,becomingdirector oftheBelgiansubsidiariesin2008andamemberoftheGroupMan- agementBoardin2009.In2014,heledamanagementbuy-outofthe Belgiansubsidiaries In2014,heledamanagementbuy-outoftheBelgiansubsidiariesofthe groupandhassincecontinued–asCEO-todeveloptheORIZIOgroup, whichwascreatedbythemergerofSabenaAerospaceandSabca,now OrizioGroup. He is also Vice-Chairman of Liege Airport and an independent director ofSECO,CharleroiAirportandSopartec/UCLouvain-TechnologyTransfer Ofce. Fernando Sistac Management et Conseil SAS, represented by FERNANDO SISTAC (since26March2024followingco-optation,previouslyFernandoSistacasanindividual) Capacity Non-executive director Committees / Nationality and year of birth French,born1959 First appointment as Director May2023 Current term of ofce expires 2027 AGM Training and experience FernandoSistacisacivilandgeotechnicalengineer(PolytechLille,1982). Until2022,hewasManagingDirectorofVinciEnvironnementandChief OperatingOfcerofEntreposeGroup(Vinci).HejoinedtheVincigroup in2000asCEOofCBC(SogeaGroup).From2012to2016,hewasDeputy Managing Director of Vinci Construction France, and from 2016 to 2018, ChiefOperatingOfcerofVinciConstructionFrance.Hewasamember of the Comex of Vinci Construction France until 2018. Inviewoftheexpiryofseveraldirectorships(includingoneasanindependentdirector),itwillbeproposed,ontherecommenda- tionoftheNominationandRemunerationCommittee,attheOrdinaryGeneralMeetingof30April2025,torenewforaperiodoffour yearstheappointmentofLucBertrand,PietDejongheandKoenJanssenasdirectorsandofWarakuBV,representedbyHélèneBos- toen as an independent director. 2.1.2. CompositionanddiversityoftheBoardofDirectors ThecompositionofCFE’sBoardofDirectorsreectsthecompany’scontrollingshareholders.CFEiscontrolledbyAckermans&van HaarenSA,aBelgiancompanywhosesharesarelistedonEuronextBrussels,andbyVINCIConstructionSAS.Asat31December2024, CFE’seight-memberBoardofDirectorsincludesfourrepresentativesputforwardbytheleadingshareholder,Ackermans&van Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 52 HaarenNV,andarepresentativeputforwardbyVINCIConstructionSAS. Thissituationofcontrolalsojustiesthepresenceon31December2024ofrepresentativesputforwardbytheleadingshareholder, Ackermans&vanHaarenNV,attheAuditCommittee(onememberoutofthree)andontheNominationandRemunerationCom- mittee(onememberoutofthree). ThecompositionoftheBoardofDirectorsisalsobasedonabalancebetweenexperience,competenceandindependence,with respectfordiversity,inparticulartheequalitybetweenmenandwomen.TheBoardofDirectorsincludesasufcientnumberofin- dependentdirectorstoensurethattheinterestsofalltheCompany’sshareholdersarerespected,andone-thirdofitsmembersare women, thus meeting the requirements of article 7:86 of the CSA. Thebalanceofattendeesisre-evaluatedeachyearbytheNominationandRemunerationCommittee. 2.2. Role of the Chairman of the Board of Directors ThedutiesoftheChairmanoftheBoardofDirectorsaredetailedintheCompany’sCorporateGovernanceCharter. TheChairmanmaintainscloselinkswiththeChairmanoftheExecutiveCommitteeandensures,inclosecollaborationwiththe latter,thattheBoardofDirectors,initscomposition,deliberations,decision-makingandimplementationofdecisions,operatesin accordancewiththeprovisionsoftheCharter,anddrawsup,againinclosecollaborationwiththeChairmanoftheExecutiveCom- mittee, the agenda for Board meetings. Generallyspeaking,theChairmanoftheBoardalsoensureseffectivecommunicationwithalldirectors,creatingaclimateoftrust thatallowsopendiscussionandconstructivecriticism,andwiththeCompany’sshareholdersandotherstakeholders. The Chairman is also in charge of the various evaluation procedures for the Board and its Committees. 2.3. Attendance, functioning and competences of the Board of Directors TheBoardofDirectorsisorganisedsoastoensurethatdecisionsaretakencollectivelyintheinterestsoftheCompanyandina waythatallowsworktobecarriedoutefciently. TheBoardofDirectorsmeetsatleastvetimesayear,attimessetatthebeginningoftheyear,andwhenevertheCompany’sin- terests so require. The Board of Directors met on six occasions in 2024. TheattendancerateforBoardmeetingsin2024isshownbelow: Name Capacity Attendance rate Luc Bertrand Non-executive director, Chairman 6/6 Piet Dejonghe Non-executive director 6/6 KoenJanssen Non-executive director 6/6 An Herremans Non-executive director 6/6 WarakuBV,representedbyHélèneBostoen Independent Director 5/6 LieveCretenBV,representedbyLieveCreten Independent Director 5/6 BGlobalManagementSRL,representedbyStéphaneBurton Independent Director 6/6 Fernando Sistac Non-executive director until 26 March 2024 2/2 FernandoSistacManagement&ConseilSAS,representedby Fernando Sistac Non-executive director since 26 March 2024 (followingco-optation) 4/4 InadditiontodeningcorporatestrategyandcultureandsupervisingtheworkoftheCommittees,theBoardofDirectorsapproves thestatutoryandconsolidatednancialstatementsandthemanagementreport,decidesontheappropriationofprotsandthe publicationofnancialandnon-nancialinformation. SpecicdecisionstakenbytheBoardofDirectorsin2024mainlyconcerned: • approvalthenancialstatementsfor2023aswellasthenancialstatementsforthersthalfof2024; • examinationofthe2024budgetupdates; • examinationofthe2025budget; Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 53 • changesinsafetyinstructions; • review of the strategic plans of the Group’s main Business Divisions; • review of matters that were presented at Engagement Committee. meetings; • examinationofthenancialsituationofCFE,changesinitsdebtlevelsanditsworkingcapitalrequirement; • reviewandupdateoftheESGstrategyanddoublematerialitymatrixaspartoftheCSRD(asshowninmoredetailintheSus- tainabilityStatement; • update of the delegation of powers; • thedevelopmentplanbyBStor; • theapprovalofanewCodeofConductandBusinessIntegrityPolicies; • examination of changes in the value of real-estate projects, and • approvaloftheacquisitionandsaleofseveralrealestateprojectsworthmorethan€10million. Duringthe2024nancialyear,theDirectorswerenotfacedwithanysituationsofconictofinterest.Consequently,articles7:96and7:97 oftheCSAarenotapplicablein2024. PeriodicreviewproceduresareorganisedbytheBoardofDirectorsinaccordancewithArticleII.6oftheCharter.Thesearehelduponthe initiativeandunderthedirectionoftheChairman.Asannouncedduringthepreviousnancialyear,anevaluationoftheoperationofthe CFEBoardofDirectorsanditsinteractionwiththeExecutiveCommitteewascarriedoutbyanindependentbody(Guberna)attheendof 2024.Theconclusionsofthisassessmentweresharedattherstboardmeetingof2025. 3. Executive Board Committees CFEhastwoCommitteeswithintheBoardofDirectors,namelytheAuditandRiskManagementCommittee(“Audit Committee”)(inac- cordancewitharticle7:99oftheCSA)andtheNominationandRemunerationCommittee(inaccordancewitharticle7:100oftheCSA). 3.1. The Audit Committee Generallyspeaking,theAuditCommitteemonitorsthepreparationandvericationoftheCompany’saccountingandnancial information,aswellastheeffectivenessofthesystemsofinternalcontrol,supervisionandriskmanagement. Asat31December2024,theAuditCommitteecomprisedthreemembers,twoofwhomareindependentwithinthemeaningofarticle 7:87oftheCSAandthe2020Code.TheseareCretenBVrepresentedbyLieveCretenandWarakuBV,representedbyHélèneBostoen 1 . Theothermember,PietDejonghe,isarepresentativeoftheleadingshareholder. Asawhole,theAuditCommitteehastherequisiteskillsinaccounting,auditingandIFRS,thanksinparticulartoitsmembers’studies andexperienceinnancialandrealestatecompanies. The Audit Committee met four times in 2024, examining in particular: • thequarterlynancialstatementsfortherstandthirdquartersof2024; • thedraft2025budgetbeforeitwaspresentedtotheBoardofDirectors; • the reports of the internal auditor; • changes in the results of the main projects; • changes in the Group’s cash position and the working capital requirement; • ITsecuritywithintheGroup; • the tax position of the various Group entities; • insurance policies; • non-nancialindicators,thedoublematerialitymatrixandtheintroductionofCSRDreports; • theGroup’soff-balancesheetcommitments,inparticularthebankguarantees,and • the auditor’s reports. In2024,theAuditCommitteepaidparticularattentiontothegroup’sinternalcontrolsandmonitoredstepstakenbyCFEtoimprove them.Italsopaidparticularattentiontosomeofthemoreloss-makingsites,suchastheZINandLuWaprojects. ThetermofofceofAuditCommitteememberscoincideswiththeirtermofofceasDirectors. Members of the Audit Committee Current mandate Participation rates LieveCretenBV,representedbyLieveCreten(Chair) 2022-2026 4/4 WarakuBV,representedbyHélèneBostoen 1 2021-2025 3/4 Piet Dejonghe 2021-2025 4/4 1 Since 1 January 2024, following the co-optation of Waraku BV as a director of the Company. Hélène Bostoen was previously a member of the Audit Committee as an individual. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 54 UnlesstheAuditCommitteedecidesotherwise,theChairmanoftheExecutiveCommittee,theCFOandtheHeadofInternalAudit attendAuditCommitteemeetings.Onceeverythreeyears,theBoardofDirectorsassessesthesize,compositionandfunctioningof theAuditCommittee,asdescribedingreaterdetailinarticleII.6oftheCharter. 3.2. The Nomination and Remuneration Committee Generallyspeaking,theNominationandRemunerationCommitteeensuresfairremunerationwithintheGroup,takingintoconsider- ationregulatorystandards,targetsset,andtherisksandtherulesofconductsetoutintheCharter.TheNominationandRemunera- tionCommitteealsoensuresthatthebestpeopleareselectedtooverseeandmanagetheCompany. Asat31December2024,TheNominationandRemunerationCommitteecomprisedthreemembers,twoofwhomareindependent withinthemeaningofarticle7:87oftheCSAandthe2020Code.TheseareLieveCretenBVrepresentedbyLieveCretenandB-Glob- alManagementSRLrepresentedbyStéphaneBurton.LucBertrandisChairmanoftheBoardofDirectorsandarepresentativeofthe leading shareholder. As a whole, the Nomination and Remuneration Committee has the requisite expertise in the area of remuneration. The Nomination and Remuneration Committee met three times in 2024 and examined, in particular: • thexedandvariableremunerationoftheCEO; • thexedandvariableremunerationofthemembersoftheExecutiveCommitteeandthedirectors; • the annual remuneration report; • the remuneration of the directors; • monitoring talent development and succession planning, and • implementation of a new LTI plan. ThetermofofceoftheNominationandRemunerationCommitteememberscoincideswiththeirtermofofceasdirectors. Members of the Nomination and Remuneration Committee Current mandate Participation rates LucBertrand,(Chairman) 2021-2025 3/3 LieveCretenBV,representedbyLieveCreten 2022-2026 3/3 BGlobalManagementSRL,representedbyStéphaneBurton 2022-2026 3/3 Wheneverremunerationisdiscussed,theCompany’sHumanResourcesDirector,i.e.Focus2LERBV,representedbyValérieVanBra- bant,isalwaysinvitedtoattendtheNominationandRemunerationCommitteemeeting. AsfortheAuditCommittee,everythreeyearstheBoardofDirectorsassessesthesize,compositionandfunctioningoftheNomina- tionandRemunerationCommittee,asdescribedingreaterdetailinarticleII.6oftheCharter. 4. The Executive Committee On29June2022,theCompany’sBoardofDirectorssetupanExecutiveCommitteecomprisingatleastvemembersofmanage- ment,anddelegatedday-to-daymanagementoftheCompanyexclusivelytotheChairmanoftheExecutiveCommittee,knownas the CEO. ThemembersoftheExecutiveCommitteeareconsideredasothermanagerswithinthemeaningoftheCSAandaspersonsdis- chargingmanagerialresponsibilitieswithinthemeaningoftheEuropeanMarketAbuseRegulation. AtitsmeetinginAugust2024,theBoardofDirectorsconrmedtheappointmentofTroremaSRL,representedbyRaymundTrost,as theCompany’sdelegateforday-to-daymanagementandupdatedthedelegationofpowerstotheExecutiveCommittee. UnderthechairmanshipoftheCEO,theExecutiveCommitteeisessentiallyresponsibleforexaminingthegeneralmanagementof theCompanyandtheCFEGroup,andmoreparticularlyfor: I. makingrecommendationstotheBoardofDirectorsconcerningthestrategyoftheCompanyandGroup; II. executingthisstrategy; III. ensuringtheday-to-dayandoperationalmanagementoftheCompanyandtheGroupandreportingtotheBoardof Directors; IV. providingtheBoardofDirectorsinduetimewithalltheinformationitneedstofullitsresponsibilities,and V. ensuringcompliancewithitsobligationstotheBoardofDirectorsandreportingtotheBoard. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 55 TheCEO,assistedbytheExecutiveCommittee,andwithinthelimitsofday-to-daymanagementandthepowersconferredonhim bytheBoardofDirectors,alsoconferreddelegationsofauthorityandestablishedalistofCompany’sauthorisedagentsandde- nedtheirsigningpowersinSeptember2024. ExecutiveCommitteemembersareappointedanddismissedbytheBoardofDirectors.Inprinciple,theyareappointedforanin- deniteperiod.TheBoardofDirectorsensuresthattheExecutiveCommitteeismadeupofpeopleofintegrity,withawiderangeof professionalskills,andwiththeknowledge,experienceandcomplementaryskillsrequiredtocarryouttheirdutiesproperly. On31December2024,theExecutiveCommitteewascomposedof: TROREMA SRL, represented by Raymund Trost Capacity Chair of the Executive Committee ChiefExecutiveOfcerofCFE(“CEO”) Nationality and year of birth Belgian,born1964 Training and experience RaymundTrostholdsaMaster’sdegreeinEconomicsandInternationalFinanceaswellasa Master’sdegreeinEuropeanAffairs&Econometrics(UniversityofLeuven-1987)andhasun- dergoneleadershiptraining(HarvardUniversity-2014). HestartedhiscareerattheMinistryofFinance(ResearchAnalyst,1987--1998).Hethenworked atBNPParibasFortis(FinancialAnalyst,1989--1991).In1991,hejoinedtheEuropeanCommission asDeputyAdministrator(Audit&Finance).In1992,hejoinedOwensCorning(EuropeanBusi- nessPlanningManager)andformanyyearsheldthepositionsofFinancialDirector,General ManagerandManagingDirector(1996--2007).HeendedhistimewiththecompanyasCEOof 3B-TheFibreglassCompany(DivestedbusinessbyOwensCorning,2007-2008).Hethenjoined SaertexasManagingDirectorofStrategy&BusinessDevelopment(2008--2010). In2011,hejoinedTycoElectronics(VPTelecomNetworks,2010-2011).HethenservedasCEOof theJorisIdeGroup(2011-2015). In 2015, he joined the CFE Group as Chairman of the Executive Committee, CFE Contracting. Via hismanagementcompany,heiscurrentlyCEOandChairmanofCFE’sExecutiveCommittee. MSQ SRL, represented by Fabien De Jonge Capacity MemberoftheExecutiveCommittee ChiefFinancialOfcerdeCFE(“CFO”) Nationality and year of birth Belgian,born1972 Training and experience FabienDeJongeholdsaMaster’sdegreeinManagement(LeuvenSchoolofManagement- 1995).HestartedhiscareeratArthurAndersen(Auditor,1995-2000). HethenworkedatBankDegroofPetercam(InternalAuditor,2000-2001). In 2002, he joined the CFE Group where he started as Project Finance Manager. In 2004, he combinedthisfunctionwiththatofHeadofFinanceatBPI.Since2014,hehasbeentheChief FinancialOfcerofCFEthroughhismanagementcompany. Focus2LER SRL, represented by Valérie Van Brabant Capacity MemberoftheExecutiveCommittee PeopleOfcerofCFE Nationality and year of birth Belgian,born1979 Training and experience ValérieVanBrabantholdsaMaster’sdegreeinBusinessAdministration(ICHEC-2004)and hasundergonetraininginHRManagement(VlerickBusinessSchool-2016-2017)aswellas traininginGeneralManagement(INSEAD-2022).Shestartedhercareeratrecruitmentagency RobertHalfandthenRobertWalters(SeniorConsultant,2004-2007). In 2007, she joined the CFE group where she started as Recruitment and Development Con- sultant(2007-2013). ShedevelopedhercareerwithinthegroupasHRManagerofLouisStevens&Co,MobixRema- com,MobixEngema,MobixEngetecandBPI(2014-2019).In2019,shewasappointedChief HumanResourcesOfcerofCFE,CFEContractingandBPI,andmemberoftheExecutiveCom- mitteeofCFEContracting(2019-2022).SheiscurrentlyChiefPeopleOfcerofCFEthroughher managementcompany. * AHO Consulting SRL, represented by Alexander Hodac, was a member of the Company’s Executive Committee until 30 September 2024. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 56 ARTIST VALLEY SA, represented by Jacques Lefèvre Capacity MemberoftheExecutiveCommittee CEO of BPI Real Estate Development Nationality and year of birth Belgian,born1962 Training and experience JacquesLefèvreholdsadegreeinCommercialEngineering(ICHEC-1988). In 2004, he joined the CFE group where he is Managing Director of BPI Real Estate Belgium, via hismanagementcompany.In2007,hewasappointedmemberoftheBoardofDirectorsof theUPSI-BVS.In2010,hewasappointedDirectorofBPIRealEstatePolandandin2014ofBPIReal EstateLuxembourg. Since2018,hehaschairedtheBoardofBPIRealEstatePoland.Since2019,hehasbeenaDirec- torofWoodShapersandWoodShapersLuxembourg.Hehasalsobeenappointedmemberof the Board of Directors CFE Polska. Bruno Lambrecht Capacity MemberoftheExecutiveCommittee CEO of Construction & Renovation Belgium and Poland Nationality and year of birth Belgian,born1971 Training and experience BrunoLambrechtholdsadegreeinCivilEngineering(KULeuven,1996)andadegreeinIndus- trialEngineering(VIVES,1993). HestartedhiscareeratDecloedtEngineeringofce(Coordinatingmonitoringthedesignof asteelstructureforapowerplantinGermany,1996-1997).HethenworkedatIBSEngineering Ofceasadesignandsupervisionmanagerforseveralprojects(1997-1998). In 1998, he joined the CFE Group as site engineer of CFE Nederland. He then worked as Project ManageratCFEPolska(2000-2004).In2004,hewasProjectManageratCFEBrabant.In2005, hejoinedCFEPolskaagainasAreaManager(2005-2009),andGeneralManagersince2009. SinceSeptember2020,hehasalsobeenCEOoftheConstruction&RenovationBelgiumseg- mentandsinceOctober2024CEOofBPCGroupSA. COEDO SRL, represented by Arnaud Regout Capacity MemberoftheExecutiveCommittee ChiefInvestmentOfcer&NewdevelopmentRealEstate Nationality and year of birth Belgian,born1978 Training and experience ArnaudRegoutholdsanMBAinCorporateFinance(SolvayBrusselsSchool-2004). HestartedhiscareeratCushman&Wakeeld(ValuationAnalyst,2003)andthenworkedat Ernst&Young(SeniorAuditor,2004-2007).From2007to2008,heworkedonseveraltaxand nancialprojectswithintheBesixgroup. In 2008, he joined the CFE Group where he was Administrative and Financial Director of BPI Lux- embourgandoftheactivitiesinMoroccoandTunisia(2008-2012).In2012,hewasappointed DeputyDirectorofBPILuxembourg.HewasthenappointedDirectorofBPILuxembourgwhere hewasresponsibleforthedevelopmentofrealestateactivities(2014-2015).Since2015,hehas beenChiefInvestmentOfcerofBPIandManagingDirectorofBPILuxembourg. CONSULTON VoF, represented by Peter Matton Capacity MemberoftheExecutiveCommittee CEO of VMA Nationality and year of birth Belgian,born1965 Training and experience Afterstudyingindustrialengineering,PeterMattonbeganhiscareerinacommercialroleat ABBIndustry.HeranhisownHVACdistributioncompanyfrom1995to1998,afterwhichhe joined ABB’s Building Division as Sales Director. PeterMattonhasheldvariousmanagementpositionsinbothprivateandpubliccompanies, including Managing Director of Equans Belux, COO of the ADB Safegate Group, Divisional Man- aging Director of Rotork PLC and Chairman of IMI Norgren Europe. In these roles, he was re- sponsibleforthebalancesheet,nance,humanresources,sales,supplychain,QHSE,R&Dand operations,amongotherthings.Atthebeginningof2024,PeterMattonjoinedtheCFEgroupas CEOofVMA,oneofthecompaniesinthegroup’smulti-technicalsegment.Heisamemberof CFE’s Executive Committee. The following are invited to attend all meetings of the Executive Committee as permanent guests: • ALCINSRL,havingasitspermanentrepresentativePhilippineDeWolfinhercapacityasGeneralCounsel; • IsabelleDeBruyneinhercapacityasChiefSustainabilityOfcer; • HexpeditionSRL,havingasitspermanentrepresentativeHansVanDrommeinhiscapacityasChiefInformationOfcer,and • GARFUNKELSRL,havingasitsrepresentativeRaphaeldeVisser,inhiscapacityasChiefCommunicationOfcer. Since 2023, the Executive Committee has also included various committees, including the Selection Committee and the Engage- ment Committee.. TheroleoftheSelectionCommitteeistoreviewandapprovecertainbusinessopportunities(prospects)thataBusinessUnit Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 57 maywishtopursueintheordinarycourseofbusiness,wherethepursuitofsuchaProspectmayhaveasignicantimpactonthe Group’snances,humanand/ornancialresourcesand/orriskexposure. TheSelectionCommitteeismadeupoftheGroupCEO,theGroupCFOandtheExecutiveCommitteememberrepresentingthe businesssegmenttowhichtherelevantBusinessUnitbelongs. TheEngagementCommittee.hasbeensetuptoexaminecertainmajorbindingofferswhich,ifaccepted,couldhaveasignicant impactontheGroup’snances,humanand/ornancialresourcesand/orriskexposure.ThisCommitteehasitselfbeensubdivided intothreesub-committeesaccordingtothebusinesssegmentconcerned,namelytheConstruction&RenovationEngagement Committee., the Multitechnics Engagement Committee. and the Real Estate Development Investment Committee. TheEngagementCommitteeismadeupofpermanentmembers,namelytheGroupCEO,theGroupCFO,theGeneralCounsel (exceptfortheRealEstateInvestmentCommittee,wheretheyarereplacedbytheHeadofLegalofBPIRealEstateSA)andtwoCFE directors(representingthereferenceshareholder),andad hoc members,whoarefor: • theConstruction&RenovationEngagementCommittee.:ExecutiveCommitteemembersrepresentingtheConstruction&Ren- ovation segment and a senior consultant acting as technical expert on the project under consideration; • theMultitechnicsEngagementCommittee.:ExecutiveCommitteemembersrepresentingtheMultitechnicssegmentandasen- ior consultant acting as technical expert on the project under consideration; • theRealEstateInvestmentCommittee:ExecutiveCommitteemembersrepresentingtheRealEstateInvestmentsegmentanda senior consultant acting as technical expert on the project under consideration OtherpeoplemaybeinvitedtotheseCommitteesonacase-by-casebasis,dependingontheirparticularexpertise.In2024,the Executive Committee met nineteen times, including one off-site meeting. TheBoardofDirectors,assistedbytheNominationandRemunerationCommitteeandtheCEO,assessesthefunctioningoftheEx- ecutiveCommittee,andinparticularthecontributionofeachExecutiveCommitteemembertotheGroup’sbusinessdevelopment andresults.TheChairmanoftheExecutiveCommittee(inthiscasetheCEO)doesnottakepartinassessingtheirownperformance. 5. Diversitypolicy TheCompanyconsidersthatadiversiedteamimprovesthedecision-makingprocessandultimatelyimprovestheoverallper- formance.DiversityandinclusionareaglobalpriorityforCFE,astheyareimportantfactorsforthesuccessoftheCompanyand itspeople.TheCompanybelievesthatitsgreateststrengthliesinthediversityofitsteamandthatitsemployeesdeservetofeelat easebybeingtheirgenuineselvesatworkeachday,irrespectiveofgender,ethnicorigin,sexualorientationorothercharacteristics. TheCompanykeepsstrivingtoimproveallaspectsofdiversitywithinitsseniormanagementteambydevelopingadiversepoolof talents,payingattentiontoskills,training,experienceandcareers. TheprocedureforselectingandappointingthemembersoftheBoardofDirectorsandExecutiveCommitteeisdescribedinthe Company’sGovernanceCharter.Itscompositionisbasedonabalancebetweenexperience,competenceandindependence,with respectfordiversity,inparticulartheequalitybetweenmenandwomen. Atpresent,threeoftheeightmembersoftheBoardofDirectorsarewomen.Bytheircomplementarity,thedirectors’areasofexper- tise cover all the Group’s activities and their associated risks and opportunities. 6. Conictsofinterest Withregardtoconictsofinterest,theCompanyissubjecttoarticles7:96and7:97oftheCSA.Directorshaveadutytoavoidany actionthatwouldbeinconictwiththeinterestsoftheCompanyanditsshareholders.TheymustimmediatelyinformtheChair- manoftheBoardofDirectorsofanypotentialconictofinterest. ExecutiveCommitteemembersarealsosubjecttospecicrulesonpreventingconictsofinterest,whicharedescribedingreater detail in chapter IV.7 of the Charter. Finally,withthelaunchofthenewCodeofConductandBusinessIntegrityPoliciesduringthe2024nancialyear,allCFEgroupem- ployeeswereremindedthattheyarealsorequiredtoavoidanyconictofinterestandtoidentifyandreportsuchsituations,where appropriate,throughtheGroup’swhistleblowingtool.TheGroup’sBusinessIntegrityPoliciesalsosetoutingreaterdetailwhichsitu- ationsaresuspectedofconstitutingconictsofinterest. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 58 7. External and internal control and risk management 7.1. External control TheStatutoryAuditor’smandateisexercisedbyEYRéviseursd’EntrepriseSRL,representedbyMarnixVanDooren.EYRéviseursd’En- treprise’sappointmentwasrenewedbytheAnnualGeneralMeetingof2May2024,forathree-yeartermexpiringatthecloseofthe AnnualGeneralMeetingof2027.TheamountoftheStatutoryAuditor’sfeesispublished,inaccordancewitharticle3:65oftheCSA, inthenotestotheconsolidatednancialstatementsandinthestatutorynancialstatements. 7.2. Internal control TheBoardofDirectorsoverseestheimplementationoftheinternalcontrolandriskmanagementreferenceframework.Generally speaking,theAuditCommitteeassiststheBoardofDirectorsinfulllingitsmonitoringresponsibilitieswithregardtotheGroup’s internalandexternalcontrolsinthebroadestsense,includingrisks. TheAuditCommittee’sresponsibilitiesincludethefollowing: • toensurethatthenancialreportingoftheCompanygivesatrue,sincereandclearpictureoftheCompany’sandGroup’s situation and outlook; • toensurethecorrectandconsistentapplicationoftheGroup’saccountingstandardsandvaluationrules,andmakeanynec- essaryrecommendationsforanymodication; • toreviewthequalityandeffectivenessoftheGroup’sinternalcontrolandriskmanagementsystem,toensurethatthemain risksareproperlyidentied,managedandreported(inparticular,examiningthedoublematerialitymatrix,asshowninmore detailintheSustainabilityStatement); • to assess the effectiveness of internal audits; • toreviewandmonitortheindependenceoftheStatutoryAuditor,inparticularwithregardtotheappropriatenessofproviding additional-totheCompany,and • tomakerecommendationstotheCompany’sBoardofDirectorsconcerningtheappointmentoftheStatutoryAuditor. In addition, since 2014, the CFE Group has also hired an internal auditor whose task is to provide assurance on the degree of con- troloveritsoperationswithintheGroup,offeradviceonhowtoimprovethem,andhelpcreateaddedvalue.TheyhelptheGroup achieveitsobjectivesbysystematicallyandmethodicallyassessingitsriskmanagement,controlandgovernanceprocesses,and making proposals to enhance their effectiveness. Reporting to general management, the internal auditor maintains a close relationship with the Executive Committee and the Audit Committee,providingthemwithassuranceontheeffectivenessofriskmanagementandinternalcontrolsystems. The internal auditor updates the risk maps drawn up for the Group’s main segments: Construction & Renovation, Multitechnics and Real Estate Development. Thesemapsarereviewedeverytwoyears.Itinvolves: • listingthemainsourcesofidentiableinternalandexternalrisksthatpreventtheattainmentofthesegment’sgoalsandmay havenancial,humanorreputationconsequences; • assessing,onaqualitativescale,thecriticalityoftherisksbasedontheirpotentialimpact,probabilityofoccurrence,andthe degree of control for the various events constituting those risks, and • deningappropriatewaystoaddressthoserisks. BasedontheriskmappingpreparedbythemainBusinessUnits,riskmatricesspecictoeachlineofbusinessallowauniformpres- entationandassessmentofeventsthatareliabletoaffecttheprojectsexaminedbythecompetentbodiesoftheBusinessUnits. Threeauditswerecarriedoutduringthe2024nancialyear.Theydidnotrevealanydysfunctionsthatarelikelytohaveamaterial impactonthebusinessandnancialstatementsoftheGroup.Thoseauditsconcerned: • the management control process in the Construction & Renovation segment and the Multitechnics segment; • thepaymentprocessatCLE,and • Checkin@Work at VMA. 7.3. Internalcontrolandriskmanagementsystems 7.3.1. Systemandorganisationofinternalcontrol CFE’sExecutiveCommitteeisresponsibleforestablishingcommonguidelinesfortheGroup. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 59 Thesedirectivesaremainlyrelatedto: • safety,qualityandenvironment; • integrity; • acceptanceofnewbusiness; • project management and monitoring; • acquisitions of shares in partnerships companies (tijdelijke maatschappen/sociétés simples) in the capital of companies • procurementandsubcontracting; • investment; • accountingandnancialmanagement; • human resource management; • legal affairs, tax and insurance management • internal and external communication, and • informationtechnologysecurity. TherespectivemanagementsoftheBusinessUnitsareresponsibleforimplementingtheseguidelinesandstructuringtheorganisa- tiontoensurethattheseproceduresareproperlyapplied. AGroup-wideexercisetorewriteandrecodifytheseguidelineswaslaunchedin2023,underthedirectionoftheGroup’sGeneral Counsel.Thisexerciseledtothepublicationin2024ofanewCodeofConductandtheBusinessIntegrityPolicies,,aswellasase- riesofotherpoliciessuchasthewhistleblowerpolicy,thehumanrightspolicy,thecrisiscommunicationplan,thequality,health, safetyandenvironment(“QSHE”)charter,etc.Thisrewritingandrecodicationexercisewillcontinuein2025.Atthesametimeas theGroup-widedirectiveswerebeingrecodied,anawareness-raisingcampaignandcompulsorytrainingcourseswerelaunched throughout the Group. CFEmaintainsdirectandregularcontroloveritsBusinessUnits,inparticularby: • thepresenceofCFE’sdirectorsand/ormembersoftheExecutiveCommitteeontheboardsofdirectorsofitssubsidiaries and the Selection Committee and Engagement Committee.; • thequarterlybudgetreview(see7.3.5.2); • selecting,monitoring(duediligence)andtakingthedecisiontoacquirestakesinthird-partycompaniesandmonitoring restructuringoperationswithinsubsidiaries; • centralisingofinsurancepolicies(subscriptionandprojectbased)coveringalloftheGroup’sinsurablerisks; • pooling the Group’s cash; • ad hocassignmentsbytheinternalauditor(see7.2)aimedat: • monitoringtheeffectiveimplementationbyeachGroupBusinessUnitoftheinternalcontrolproceduresestablishedin accordancewiththeguidelinesdenedatGrouplevel,and • centralisingtheresultsofinternalcontrolscarriedoutbysubsidiariestogainasoundknowledgeandunderstanding ofthenature,intensityandlocationoftheriskstowhichtheGroupasawholeisexposed. TheAuditCommitteeassessesatleastannuallytheinternalcontrolproceduresthattheExecutiveCommitteehasdevelopedto ensurethatthemainriskshavebeenproperlyidentied,reportedandmanaged. AtthequarterlymeetingsoftheAuditCommittee,thequarterlynancialguresandndingsofinternalauditreportsarepresented tothemembersoftheAuditCommitteeandtothestatutoryauditor. TheBoardofDirectorsisresponsibleforassessingtheimplementationofcontrolprocedureswithintheGroup,takingtherecom- mendations of the Audit Committee into account. 7.3.2. Internalcontrolobjectives Internalcontrolobjectivesaremultiple,suchascompliancewithlawsandregulations,applicationofinstructionssetbyCFE’sgen- eralmanagement,safeguardingofassetsandthereliabilityofnancialinformation. 7.3.3. Scope of internal control and risk management Thescopeofriskmanagementandinternalcontrolcoversallfullyconsolidatedsubsidiaries. TheBoardsofDirectorsofthejointly-heldcompanies,namelyGreenStor,Deep-CHolding,GreenOffshoreandtheRealEstateDevel- opmentSPVs,areresponsiblefortheirinternalcontrol.However,throughitsrepresentativesontheboardsofthesecompanies,CFE ensures that it promotes its own good practices. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 60 7.3.4. Risksidentied Foridenticationofthemainrisks,pleaserefertosectionII.1.2ofthisManagementReport. 7.3.5. Internal control activities and procedures Someoftheinternalcontrolactivitiesandproceduressetoutinsection7.2anddescribedinmoredetailbelowarecommontothe entireGroup,whileothersarespecictooneormoresegments. 7.3.5.1. ActivitiesandprocedurescommontothewholeGroup Financial reporting CFEgivesclearnancialreportinginstructionstothesubsidiarieswithdeadlinesandrulesforpreparationandvaluation.Anexternal auditofthehalf-yearlyandannualnancialstatementsalsotakesintoaccountelementsofinternalcontrolandriskmanagement atentitylevel. Theadequacyofthoseproceduresisveriedandauditedatregularintervalsandimprovedifnecessary.Anappropriateallocation ofresponsibilitiesandcoordinationbetweenthedepartmentsinvolvedguaranteeanefcientandtimelycommunicationofperiod- icalnancialinformationtothemarket. InformationsecurityismonitoredbyaperiodicalITaudit,aproactiveapproachinvolvingtheimplementationofupdates,backup facilitiesandtimelytestingoftheITinfrastructure.Businesscontinuityanddisasterrecoveryplanshavealsobeenputinplace. CFEkeepstrackofthestandardsintheareaofnancialreporting.Changesinthelegalframeworkandtheirimpactonnancial reportingareregularlymonitoredbytheFinancedepartment. SignicantchangesintheinternalcontrolenvironmentortheIFRSaccountingstandardsappliedbythegrouparesubmittedtothe Audit Committee for review and to CFE’s Board of Directors for approval. Quarterly budget review Budgetreviewmeetingsareheldquarterly.ThesemeetingsareattendedbytheCEO,theCFOandtheDirectorofFinance&Con- trollingofCFE,theCEOoftheBusinessUnitconcerned,themanagingdirectororgeneralmanageroftheBusinessUnitconcerned, its COO and CFO. The topics discussed include: • budgets(andtheirquarterlyupdates); • thevolumeofbusinessforthecurrentnancialyearandthedetailoftheorderbook; • thelatestnancialstatementsthatwerecommunicated(balancesheetandincomestatement); • theprojectedresultofthesubsidiary,withdetailsofprotmarginsperproject; • analysisoftheentity’sbalancesheet; • theanalysisofcurrentrisksincludingapresentationoflegaldisputes; • the status of guarantees granted; • investment or divestment requirements, and • the cash position and projected changes in the next 12 months. 7.3.5.2. Segment-specicbusinessauthorisationprocedures Inadditiontothespecicproceduresdescribedabove,whicharecommontotheentireGroup,authorisationproceduresspecic to the Construction & Renovation and Multitechnics segments on the one hand, and to Real Estate Development on the other, have beenputinplaceforbusinessacquisitions. Authorisation procedures specic to the Construction & Renovation and Multitechnics segments • TheSelectionCommittee(seesection4foritscomposition) TenderstudiesforDesign&Buildprojects(includingDB(R)FM,DBF,DBM)thatrepresentapotentialdesignornancingriskfora BusinessUnitmustbeapprovedinadvancebytheSelectionCommittee.IftheSelectionCommitteedecidestorespondtothe submissionrequest,itallocatesasubmissionstudybudgetandsetsatimetable.Projectprogressandthebudgetaryfollow-up ofthestudyispresentedtotheSelectionCommitteeinaccordancewiththeschedule. • TheEngagementCommittee.(seesection4foritscomposition) Projectswithahighriskproleandorvaluedatmorethan€50millionfortheConstruction&Renovationsegment,or€10 millionforMultitechnicsprojects,mustbeapprovedbytheEngagementCommitteebeforebidsubmission.Inparticular,the Committeereviewsthetechnical,commercial,contractualandnancialrisksoftheprojectsthataresubmittedtoitsscrutiny. Forprojectsvaluedatmorethan€150millionfortheConstruction&Renovationsegmentor€50millionfortheMultitechnics segment, the prior approval of the Board of Directors of CFE is also required. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 61 Authorisation procedures specic to the Real Estate Development segment • The Investment Committee TheInvestmentCommittee,whosemembershipisdetailedinsection4,isresponsibleforanalysingandapprovingallreales- tateinvestmentsmadebyBusinessUnitsactiveinpropertydevelopment,namelyBPIBelgium,BPILuxembourgandBPIPoland. Forthosevaluedatmorethan€10million,theagreementofBoardofDirectorsofthelegalentitiesconcernedandofCFE’s Board of Directors is also required. TheInvestmentCommitteeisnotempoweredtorepresenttheCompanyanddoesnotexcludethecompetenceoftheBoard ofDirectors.TheBoardofDirectorsofCFEmayatanytimedeliberateonanyinvestmentordivestmentprojectwhateverthe amount and decide, where appropriate, instead of the Investment Committee. 8. Shareholderbase TheCompany’smajorityshareholderisAckermans&vanHaaren,whichowns15,725,684shares(i.e.62.12%)oftheCompany. Ackermans&vanHaareniscontrolledbyScaldisInvest,whichowns33%.Belmasholds92.25%ofthecapitalofScaldisInvest.Ulti- matecontroloverScaldisInvestisexercisedbyStichtingAdministratiekantoor‘HetTorentje’. Stichting Administratiekantoor “Het Torentje” The ultimate controlling shareholder Control BELFIMAS NV 92.25% SCALDIS INVEST 33% ACKERMANS & VAN HAAREN Listed on the Euronext Brussels stock exchange 62.12% COMPAGNIE D’ENTREPRISES CFE Listed on the Euronext Brussels stock exchange ThelatesttransparencydeclarationmadebyVinciConstructionSASon1July2022,pursuanttothelawof2May2007onthedisclo- sure of major shareholdings in issuers whose shares are admitted to trading on a regulated market, shows that it holds 3,066,460 sharesintheCompany,representing12.11%ofthecapital. 9. Derogations from the 2020 Code Deviationsfromthe2020Coderelateexclusivelytotheremunerationofnon-executivedirectors,andinparticulartoprinciple7.6of the2020Code.Thevalidreasonsforthisderogationaresetoutintheremunerationpolicyinsection1.2below. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 62 IV REMUNERATION REPORT 1. Remunerationpolicy Thecurrentremunerationpolicyhasbeenestablishedwithintheframeworkofarticle7:89/1oftheCompaniesandAssociations Code(“CSA”)andtheBelgianCorporateGovernanceCode2020(“Code 2020”).ItwasadoptedbytheCompany’sBoardofDirec- torsuponrecommendationoftheNominationandRemunerationCommitteeandwasapprovedbytheCompany’sGeneralMeet- ingof29June2022. OntherecommendationoftheNominationandRemunerationCommittee,anupdatedremunerationpolicywillbesubmittedfor approvaltotheAnnualGeneralMeetingon30April2025(seesection1.6). Theremunerationpolicyappliestothefollowingindividuals: • the directors; • the CEO; • otherCompanyexecutiveswho,asmembersoftheExecutiveCommittee,participateinCFE’sgeneralmanagement,withinthe meaning of article 3:1 of the CSA. Theremunerationpolicyisdesignedtosupportthecompany’sperformancecultureandlong-termvaluecreation.Itaimstoattract andretainthemanagersanddirectorswithawiderangeofskillsneededindifferentareastogrowthecompany’sbusiness. Thefollowingisonlyasummaryofthecompany’sremunerationpolicy.Thiscanbeconsultedinitsentiretyonthecompany’sweb- site.Intheeventofadiscrepancybetweentheremunerationpolicyandthepresentationinthischapter,theremunerationpolicy takes precedence. 1.1. Governance - Procedure TheremunerationpolicyisestablishedbytheBoardofDirectorsontherecommendationoftheNominationandRemuneration Committee.ItisthensubmittedtotheOrdinaryGeneralMeetingforapproval.Anysignicantchangeintheremunerationpolicyis alsosubjecttoapprovalbytheGeneralMeeting. Annually,theNominationandRemunerationCommitteereceivesaproposalfromtheCEOonhowtodeterminetheperformance criteriaachievedandthelevelofremunerationforexecutive.ThememberoftheExecutiveCommitteeresponsibleforhumanre- sourcesmanagementwithinthecompanymakestheproposalfortheCEO.Theseproposalsrefertotheapplicationoftheremu- nerationpolicyand,ifanexceptionismade,shallsetoutthereasonsfortheproposedexception. The role of the Nomination and Remuneration Committee is to advise and assist the Board of Directors, and as such, it: • reviews the remuneration proposal from the CEO; • makes recommendations to the Board of Directors concerning the individual remuneration of the directors, the CEO and the membersoftheExecutiveCommittee; • evaluatestheperformanceoftheCEOand,ifdeemedappropriate,alsoevaluatestheperformanceoftheothermembersof theExecutiveCommittee,incollaborationwiththeCEO; • assessestheExecutiveCommittee’sachievementofthecompany’sstrategicobjectivesonthebasisofperformanceindica- torsandtheobjectivesoftheremunerationpolicy,and • oversees preparation of the remuneration report included in the annual report. Theindividualremunerationofthenon-executivedirectorsisapprovedbythegeneralmeetingand,whereapplicable,theindividu- alremunerationoftheCEOisapprovedbythecompany’sBoardofDirectors.Ineachcase,thisremunerationisdeterminedonthe basisoftheremunerationpolicy,ontheadviceoftheNominationandRemunerationCommittee. Ingeneral,therulesoftheCSAconcerningconictsofinterestarefollowedwheneverapplicable. 1.2. Remunerationpolicyfornon-executivedirectors Asat31December2024,theCompanyhadonlynon-executivedirectors.Thefollowingdescriptionthereforerelatestotheremuner- ationoftheCompany’snon-executivedirectors. Remunerationofthenon-executivedirectorscomprisesaxedannualsumof€20,000andattendancefeesof€2,500perBoard meeting. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 63 TheChairmanoftheBoardofDirectorsreceivesaxedannualfeeof€100,000anddoesnotreceiveanyattendancefees. Inaddition,theChairmanoftheAuditCommitteereceivesanattendancefeeof€2,500permeeting,andtheothermembers €2,000permeeting.AsfortheNominationandRemunerationCommittee,allmembers(includingtheChairman)receiveanat- tendancefeeof€1,500permeeting. Additionaldirectors’feesmayalsobeallocatedtodirectorsentrustedwithspecictasksbytheBoardofDirectors. AllthesecompensationpackageswereapprovedbytheCompany’sExtraordinaryGeneralMeetingof29June2022,ontherecom- mendationoftheNominationandRemunerationCommittee.TheyarereviewedeverytwoyearsbytheNominationandRemunera- tion Committee. Non-executivedirectorsarealsoreimbursedforexpensesincurredduringtheexecutionoftheirduties,accordingtoconditions setbytheBoardofDirectors.Thiscoversthereimbursementofanyexceptionaltravelandaccommodationexpensesincurredby non-executivedirectors(e.g.Exceptionaltripsabroad,etc.)However,noexceptionalexpenseswerechargedby,orreimbursedto, the non-executive directors during 2024. Non-executivedirectorsdonotreceivevariableremuneration,suchasbonusesorstockoptions.Theyalsodonotreceivebenetsin kindorbenetsfrompensionplans. Directorsareinvitedbutnotobligedtoholdsharesinthecompany.Thisdeviationfromprinciple7.6oftheCode2020isjustiedby thefactthattheCompany’spoliciesadequatelypromotealong-termperspective.Inaddition,severaldirectors,inthecontextof theirfunctionsatAckermans&vanHaaren(“AvH”),arealreadyexposedtochangesinthevalueoftheCompany,takingintoac- countthenumberofsharestheyholdinAvH,thevalueofwhichpartlydependsonthevalueofthecompany. TherearenoservicecontractsbetweentheCompanyandthenon-executivedirectors,allofwhomareself-employedorwork throughtheirmanagementcompany.InaccordancewiththeCompany’sarticlesofassociation,theymaybedismissedadnutum, without cause or compensation. 1.3. CEORemunerationPolicy 1.3.1. Remuneration Structure TheCEO’sremunerationincludesonlythefollowing: (i) axedannualremunerationbasedonthemarketmedianforasimilarposition; (ii) avariableShort-TermIncentive(“STI”)determinedonthebasisofperformancecriteriatobeachievedinagivennancialyear, representingatotalgrossannualpotentialrelativetobasicremunerationof75%andbasedonthefollowingperformance criteria:nancialcriteriaoftheCFEGroup(50%),non-nancialcriteriaoftheCFEgroup(25%)andtheCEO’sindividualperfor- mance(25%); (iii) avariableLong-TermIncentive(“LTI”)grantedonthebasisofperformancecriteriaassessedoverseveralnancialyearsorin theformofstockoptionsinaccordancewiththelawof26March1999(“SOP plan”).Thisrepresentsatotalgrossannualpoten- tialrelativetobasicremunerationof100%. Theplanisbasedonnancialperformanceoverveyears,thecriterionidentiedbeingReturnonEquity(“ROE”),asdetailedin section1.6below. 1.3.2. Contractual terms of the CEO TherelationshipbetweenthecompanyanditsCEOisoneofprovidingspecialistservices.Theagreementbetweenthecompany andthecompanyprovidingtheCEOservicescontainstheusualfeeprovisions(xedandvariableSTIandvariableLTIcompensa- tionorSOPPlan)inlinewiththeprovisionsoftheremunerationpolicyaswellastheusualnon-competitionandcondentialitypro- visions.Whereappropriate,theagreementswillbeadaptedtoreectchangesintheremunerationpolicy.Thisserviceagreement doesnotprovideforanybenetofanykindtoanyindividual. TheagreementsbetweenthecompanyandtheCEOalsoincludeprovisionsonthecriteriaforawardingvariableremunerationand providingforarightofrecoveryinfavourofthecompanyofallorpartofthevariableremunerationawardedonthebasisofincor- rectnancialdata,irrespectiveofwhethertheremunerationhasalreadybeenpaid. * There is no reference to the LTI plan as set out in our 29 June 2022 remuneration policy in this report. In fact, no member of the Executive Committee was eligible for this plan due to an exclusion clause. This clause stipulates that members of the Executive Committee who are shareholders under a previous LTI plan or who have a current SOP plan are excluded from a new LTI plan. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 64 Theagreementsarevalidforanindeniteperiod.BoththeCEOandtheCompanymayunilaterallyterminatetheircontractwithsix months’ notice. 1.4. RemunerationpolicyformembersoftheExecutiveCommittee 1.4.1. Remuneration structuren TheExecutiveCommittee’sremunerationincludesonlythefollowing: (i) xedannualremunerationbasedonthemarketmedianforasimilarposition; (ii) avariableShort-TermIncentive(“STI”)grantedonthebasisofperformancecriteriatobeachievedduringagivennancial year,representingatotalgrossannualpotentialrelativetobasicremunerationof50%andbasedonthefollowingperfor- mancecriteria:CFEgroupnancialcriteriaforExecutiveCommitteememberswithcross-functionalorentityresponsibilities forExecutiveCommitteemembersresponsibleforoneormoreCFEgroupsubsidiaries(50%),CFEgroupnon-nancialcriteria (25%)andindividualperformance(25%); (iii) avariableLong-TermIncentivegrantedonthebasisofperformancecriteriaassessedoverseveralnancialyears(“LTI”)pay- ableincash,andaportionintheformofstockoptionsinaccordancewiththelawof26March1999(“SOP Plan”),whichrepre- sentsatotalgrossannualpotentialrelativetobasicremunerationof50%to75%. Theplanisbasedonnancialperformanceover4years,thecriterionidentiedbeingReturnonEquity(“ROE”),asdetailedin section1.6below. 1.4.2. ContractualconditionsofthemembersoftheExecutiveCommittee ThearrangementsbetweentheCompanyandmembersoftheExecutiveCommitteetaketheformofaservicecontractwithan independentserviceprovideroraspecialistcompany. Theseagreementscontaintheusualprovisionsonremuneration(xedandvariableremuneration),non-competitionandconden- tiality,aswellasprovisionsonthecriteriaforawardingvariableremuneration,andprovidingforarightofrecoveryinfavourofthe companyofvariableremunerationawardedonthebasisofincorrectnancialdata,irrespectiveofwhetherornottheremunera- tionhasalreadybeenpaid. Theagreementsarevalidforanindeniteperiod. AllExecutiveCommitteemembersperformtheirdutiesunderadirectservicecontractorthroughacompany.Insuchacase,the ExecutiveCommitteememberhasnootherbenets.BoththememberoftheExecutiveCommitteeandtheCompanymayunilater- allyterminatethecontractwithsixmonths’notice.ForcertainmembersoftheExecutiveCommittee,thisperiodmaybeextendedto amaximumof12months,dependingonthelengthofthecontractconcernedatthetimetheunilateralagreementisterminatedby thecompany. 1.5. Mandatesinsubsidiaries Non-executivedirectors,theCEOoranymemberoftheExecutiveCommitteemayserveasanexecutiveornon-executivedirector oftheCompany’ssubsidiaries. AstheCompany’ssubsidiariesarenotlisted,theremunerationoftheirmemberswhoarenotdirectors,CEOsormembersofthe executivecommitteeofthecompanydoesnotfallwithinthescopeoftherulesoftheCompaniesCSAremunerationpolicyand remuneration report. Nevertheless,theCompanyseestoitthatasoundandadequateremunerationpolicyisappliedwithinitsvariousentities.Toem- phasisethecreationofshortandlong-termvalue,theCompanyensuresthatwithinitssubsidiaries,remunerationbasedonindi- vidualperformanceandtheperformanceofthecompanyisinplace.Inaddition,itshouldbenotedthatthecontractsofexecutive managersinsubsidiariesprovidefortherecoveryofvariableremunerationthatmayhavebeengrantedonthebasisofincorrect nancialinformation. Unlessotherwiseagreedbetweentheparties,terminationoftherelationshipbetweenthecompanyandthedirectorwillresultin terminationofthemandatesheldinthecompany’ssubsidiaries. * There is no reference to the LTI plan as set out in our 29 June 2022 remuneration policy in this report. In fact, no member of the Executive Committee was eligible for this plan due to an exclusion clause. This clause stipulates that members of the Executive Committee who are shareholders under a previous LTI plan or who have a current SOP plan are excluded from a new LTI plan. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 65 1.6. Changessincethelastremunerationpolicy InlinewiththecurrentRemunerationPolicy,theNominationandRemunerationCommitteeevaluatedtheexistingLong-TermIn- centiveplan(“LTI”)toaligntheinterestsoftheCEOandExecutiveCommitteememberswiththoseofshareholders.Italsotookinto accountchangingcompensationtrends,stakeholderviewsandexpectations,aswellasregulatorydevelopments,ESGfactorsand corporategovernance.Itconcludedthatcertainadaptationswerenecessary. Theproposedchangesmainlyconcern: • thepossibilityfortheCEOandallExecutiveCommitteememberstobeeligiblefortheLTIplan,withnoexclusionconditions. • theapprovalofanewLTIplanin2024fortheCEOandmembersoftheExecutiveCommittee,promotingsustainablegrowth andlong-termvaluecreationforthecompany.ThiswasimplementedforallExecutiveCommitteemembersinDecember 2024. Thisplanwillbespreadoverfourtoveyearsrunningfrom2023to2027,payablein2028andrepresenting: – fortheCEO,atotalgrossannualpotentialrelativetobasicremunerationof100%, – forothermembersoftheExecutiveCommittee,atotalgrossannualpotentialrelativetobasicremunerationof50%to75%, – itbeingunderstoodthat,inbothcases,theperformancecriterionwillbeCFE’saverageROEovertheentiretermoftheLTI. ThisLTIwillbepayableincashand/orpartlyintheformofstockoptions,thetermsofwhicharesetoutinsection2.2.3below. ThesedecisionsandimplementationsthereforedifferfromtheremunerationpolicyapprovedbytheOrdinaryGeneralMeeting of29June2022.Asindicatedabove,itwillbeproposedtotheOrdinaryGeneralMeetingof30April2025tovoteinfavourofanew remunerationpolicy,whichwillinparticulartakeaccountofthisnewLTI. 1.7. Shareholder voting The2024AnnualGeneralMeetingvotedunanimouslyinfavourofthepreviousremunerationreport.Asaresult,theCompanyhas notmadeanymajorchangestotheremunerationpolicyinforcesince2022butwillproposetotheAnnualGeneralMeetingon30 April2025thatitvoteinfavourofanewremunerationpolicy,assetoutinsection1.6. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 66 2. REMUNERATION REPORT Theremunerationofthenon-executivedirectors,theCEOandthemembersoftheexecutivecommitteefor2024isdetailedinthis report. 2.1. Remuneration of non-executive directors Atotalof€378,000waspaidtonon-executivedirectorsin2024,distributedasshowninthetablebelow.Nootherremunerationor benets,loansorguaranteeshavebeengrantedtothembythecompany.Nonon-executivedirectorreceivedvariableremunera- tion in accordance with the remuneration policies in force. 2024 (in thousands €) Fixed remuneration Attendance fees Audit Committee Remuneration Committee Total remuneration Luc Bertrand 100 0 0 4.5 104.5 KoenJanssen 20 15 0 0 35 Fernando Sistac Management and Conseil SAS, representedbyFernandoSistac 1 20 15 0 0 35 WarakuBV,representedbyHélèneBostoen 20 12.5 6 0 38.5 LieveCretenBV,representedbyLieveCreten 20 15 10 4.5 49.5 BGlobalManagementSRL,representedby Stéphane Burton 20 15 0 4.5 39.5 An Herremans 20 15 0 0 35 Piet Dejonghe 20 15 6 0 41 Total 240 102.5 22 13.5 378 2.2. CompensationoftheCEOandExecutiveCommitteemembersin2024 2.2.1. Total remuneration of the CEO and the Executive Committee Thetotalremunerationbrokendownbycomponent,paidbythecompanyorbyCFE,isasfollowsforthepersonsconcerned: (in thousands €) Fixedremuneration Variablecompensation Total Proportionofxedand variablecompensation Fixed,basic management remuneration Total Short Term Long Term Total TroremaSRL,rep.RaymundTrost(Ex.2024) 597 597 330 0 330 927 65/35 ExecutiveCommittee 2,753 2,753 933 0 933 3,686 75/25 The amount of xed remuneration does not take into account the severance payments referred to in section 2.3. 2.2.2. Explanationofperformanceduringtheyear2024 Fortheyear2024,theBoardofDirectorshasdecidedtograntshort-termvariablecompensation(STI)toExecutiveCommittee membersbasedontheachievementofperformancecriteriaasfollows: For the CEO: • Financialcriteria(50%ofSTI):CFEgroupnetincomereached47.5%andworkingcapital/revenueoftheMultitechnicsandCon- struction&Renovationsegmentsreached100%: • Non-nancialcriteria(25%ofSTI): – Safetycriteria(severityrate,frequencyrateandsafetysitevisitsbymembersoftheExecutiveCommittee):reached100%; – Numberoftrainingdaysperperson:reached100%; – eNPS(“Employee Net Pomotor Score”)fortheCFEgroup:reached100%; 1 Since 26 March 2024 following co-option, previously Fernando Sistac as an individual. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 67 • Individualperformance(25%):reached75%. FortheothermembersoftheExecutiveCommittee: • Financialcriteria(50%ofSTI): – TheCFEgroup’snetincomeformembersoftheExecutiveCommitteewhoperformcross-departmentalfunctionsreached 47.5%,andworkingcapital/revenueoftheMultitechnicsandConstruction&Renovationsegmentsreached100%; – NetincomeformembersoftheExecutiveCommitteeresponsibleforoneormoresubsidiariesoftheCFEgroup:reached from0%to100%; • Non-nancialcriteria(25%ofSTI): – Safetycriteria(severityrate,frequencyrateandsafetysitevisitsbymembersoftheExecutiveCommittee):reached33%to 100%; – Numberoftrainingdaysperperson:reached100%; – eNPS(“Employee Net Promotor Score”)ofentities:reached0%to100%; • Individualperformance(25%):reached75%to100%. Duringthe2024nancialyear,along-termvariableincentive(“LTI”)wasgrantedintheformofstockoptions,asdescribedin section 2.2.3. 2.2.3. Share-basedremunerationoftheCEOandtheExecutiveCommittee Asareminder,in2022,CFEsetupastockoptionplan(“SOP”)involvingsharesintheCompany(“Plan 2022”).Onlytwomembersof theExecutiveCommitteebenetedfromthisplan,namelyValérieVanBrabantandBrunoLambrecht;theothermembersofthe ExecutiveCommitteealreadybeingshareholdersoftheCompanyorhavingbenetedfromthepossibilityofbeingsoatthetime the options were granted under this 2022 Plan. Inaccordancewiththeprovisionsofthe2022Plan,eachoptiongivestherighttosubscribetooneshareintheCompany.Theexer- cisepriceis€10.31,i.e.theaverageoftheCompany’ssharepriceoverthelast30dayspriortotheofferdate,andtheoptionexer- ciseperiodis7yearsfromtheofferdate.Stockoptionsarevestedattheendofthethirdyearfollowingtheyearinwhichtheyare granted,andcanthereforeonlybeexercisedafterthecalendaryearfollowingtheyearinwhichtheyaregranted,inthiscasefrom 1January2026to16October2029.Iftheoptionshavenotbeenexercisedbytheendoftheexerciseperiod,theyautomaticallybe- comenullandvoid.Intheeventofthebeneciary’sdeath,theoptionsacceptedandvestedmay,atthechoiceofthebeneciary, eitherbeexercisedimmediately,orbeexerciseduptotheinitialtermandinaccordancewiththetermsoftheplan.“Intheeventof retirement,theoptionsacceptedandvestedmay,atthechoiceofthebeneciary,eitherbeexercisedwithin12monthsofthestart of retirement, or exercised up to the initial term and in accordance with the terms of the plan.” In the event of termination of the em- ploymentrelationshipforanyreasonotherthanthedeathorretirementofthebeneciary,stockoptionsaccepted,whethervested ornot,butnotyetexercisedwillbecancelledimmediately. Asindicatedinsection1.6,on29November2024,theBoardofDirectorsapprovedanewLTIplan,payableinparticularintheformof aSOP,andtherebysetupanewCompanystockoptionplan(“Plan2024”),ontermsverysimilartothetermsofthe2022Plan,sub- jecttotheexerciseprice,whichwassetat€5.94,thisbeingtheaverageoftheCompany’ssharepriceonthelast30dayspriorto theofferdate,andthetermoftheoptionsis5years. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 68 Name Main provisions of the Stock Option Plan InformationrelatingtothenancialyearcoveredbytheReport Identicationoftheplan Proposal date Acquisition date End of the retention period 1 Exercise period Exercise price Opening balance Closing balance Number of options heldbut notyet exercised at the beginning of the year A)Number of options granted and accepted duringtheyear B)Valueof underlying shares on the proposal date 2 A)Numberof options accepted B)Valueof underlyingshares on acquisition date C)Valueofthe exercise price | D)Gainon acquisition date 3 Stock options notyetexer- cised 4 Valérie Van Brabant Plan 2022 17/10/22 01/12/22 N/A 01/01/26 16/10/29 10.31€ 60,000 - A)60,000 B)564,000 C)618,600 D)/ 0 Bruno Lambrecht Plan 2022 17/10/22 15/12/22 N/A 01/01/26 16/10/29 10.31€ 140,000 - A)140,000 B)1,261,400 C)1,443,400 D)/ 0 Raymund Trost Plan 2024 27/12/24 30/12/24 N/A 01/01/28 26/12/29 5.94€ 0 A)142,000 B)5.94 A)142,000 B)830,700 C)843,480 D)/ 0 FabienDe Jonge Plan 2024 27/12/24 27/12/24 N/A 01/01/28 26/12/29 5.94€ 0 A)76,000 B)5.94 A)76,000 B)438,520 C)451,440 D)/ 0 Bruno Lambrecht Plan 2024 27/12/24 30/12/24 N/A 01/01/28 26/12/29 5.94€ 0 A)72,000 B)5.94 A)72,000 B)421,200 C)427,680 D)/ 0 Valérie Van Brabant Plan 2024 27/12/24 29/12/24 N/A 01/01/28 26/12/29 5.94€ 0 A)29,000 B)5.94 A)29,000 B)167,330 C)172,260 D)/ 0 Jacques Lefèvre Plan 2024 27/12/24 30/12/24 N/A 01/01/28 26/12/29 5.94€ 0 A)76,000 B)5.94 A)76,000 B)444,600 C)451,440 D)/ 0 Arnaud Regout Plan 2024 27/12/24 29/12/24 N/A 01/01/28 26/12/29 5.94€ 0 A)42,000 B)5.94 A)42,000 B)242,340 C)249,480 D)/ 0 Peter Matton Plan 2024 27/12/24 29/12/24 N/A 01/01/28 26/12/29 5.94€ 0 A)51,000 B)5.94 A)51,000 B)294,270 C)302,940 D)/ 0 2.3. Severancepayments AHOConsultingSRL,representedbyAlexanderHodac,ceasedtobeamemberoftheExecutiveCommitteeon30September2024. Inthiscontext,theservicecontractsbetweenAHOConsultingSRLandtheCompanyandBPCGroupSArespectivelywereterminat- ed.AlexanderHodac’sdeparturewastheresultofamutualdecisionbetweentheparties.AsAHOConsultingSRL,representedby AlexanderHodac,hadnotserveditsfullnoticeperiod,acompensationinlieuofnoticeof€150,000waspaid. 1 N/A : Not applicable : The stock option plans do not contain a retention condition after the acquisition of the shares. 2 The number of options granted during the year and the market value of the underlying shares on the proposal date. 3 The number of accepted options, as well as the market value of the underlying shares on the acquisition date, the value of the underlying shares at the exercise price, and the corresponding capital gain at the date of acquisition of the options (i.e., the difference between these two amounts). 4 The number of options not yet denitively accepted at the end of the nancial year. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 69 2.4. AnnualchangesinremunerationandCompanyperformance Thetablebelowgivesanoverviewoftheannualchangeintheremunerationofeachnon-executivedirectorandemployees(aver- ageonafull-timeequivalentbasis).ItalsoprovidesanoverviewofannualchangesintheCompany’sperformance. 2020 2021 2022 2023 2024 ChangesintheremunerationoftheCEOandtheExecutiveCommittee (%comparedtothepreviousyear) Luc Bertrand 0% 0% +1.46% 0% 0% KoenJanssen +6.25% 0% +17.19% -7% 0% WarakuBV,representedbyHélèneBostoen / / +75.3% -7% -6.5% LieveCretenBV,representedbyLieveCreten / / N/A 63% +5.3% FernandoSistacManagementandConseilSAS,representedby Fernando Sistac 1 / / / N/A +50.9% BGlobalManagementSRL,representedbyStéphaneBurton / / N/A 84% 0% An Herremans / / N/A 100% 0% Piet Dejonghe +6.25% 0% N/A N/A -4.7% TroremaSRL,representedbyRaymundTrost,CEO / / **N/A -0.8% +15.9% Executive Committee / / N/A -0.9% +0.3% Changeinaveragecompensationforemployeesonafull-timeequivalentbasis 2020 2021 2022 2023 2024 CFESAemployee(average) €86,061.31 €80,180.10 €80,118.92 €89,087.33 €90,353.76 EmployeeoftheBelgiansubsidiariesoftheCFEgroup (average) 58,763.00€ 59,674.00€ Ratiobetweenthehighestremuneration(inthiscase,that oftheCEOofCFESA)andthelowestamongemployeesof theBelgiansubsidiariesofCFESA: *18.57 18.10 CompanyPerformance (in thousands €) 2020 2021 2022 2023 2024 Criterion1:NetconsolidatedincomeoftheCFEGroupbefore tax 29,438 51,937 47,360 31,031 Criterion2:ReturnonequityoftheCFEGroup 20.9% 41.5% 22.0% 10.15% Criterion3:ReturnonCapitalEmployedforBPI(RealEstate Developmentsegment) 16.1% 15.7% 9.2% 6.72% Criterion 4: pre-tax income for the Multitechnics segment 18,337 10,520 -5,502 Criterion5:ProtbeforetaxfortheConstruction&Renovation Segment 6,850 12,762 2,607 * The extent of the change is explained by the termination or entry of function(s) during the nancial year or the previous one. ** Change not applicable due to the absence of data for the year in question because the persons concerned took up their functions during the nancial year or changed their status. *** Ratio pro rata to previous year. The average compensation of employees in 2024 has been calculated on the basis of the gross annual xed compensation of white-collar and blue-collar workers for the Group’s Belgian subsidiaries. The ratio between the lowest and highest remuneration has been calculated on the basis of the lowest annual xed remuneration for the Belgian subsidiaries and the xed fee for the highest remuneration (in this case that of CFE’s CEO). The variable remuneration of CFE’s CEO is mentioned in section 2.2.1. above. 1 Since 26 March 2024 following co-option, previously Fernando Sistac as an individual. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 70 DEFINITIONS Working capital requirement Inventories+tradeandotheroperatingreceivables+contractsassets+othercurrentnon-op- eratingassets–tradeandotheroperatingpayables–currenttaxliabilities–contractsliabili- ties–othercurrentnon-operatingliabilities. Capital employed Equityofrealestatedevelopmentsegment+netnancialdebtofrealestatedevelopment segment. Net nancial debt (NFD) Non-currentbonds+non-currentnancialliabilities+currentbonds+currentnancialliabili- ties - cash and cash equivalents. Net nancial surplus Cashandcashequivalents–non-currentbonds–non-currentnancialliabilities–current bonds–currentnancialliabilities. Income from operating activities Revenue+otheroperatingincome+purchases+remunerationsandsocialsecuritypayments + other operating expenses + depreciation and amortisation. Operating Income (EBIT) Incomefromoperatingactivities+shareofprot(loss)ofinvestmentsaccountedforusing equitymethod. EBITDA Income from operating activities + depreciation and amortisation. Return on equity (ROE) Netincome,shareofthegroup/equity,shareofthegroup(opening). Order book Revenuetobegeneratedbytheprojectsforwhichthecontracthasbeensignedandhas comeintoeffect(afternoticetoproceedhasbeengivenorconditionsprecedenthavebeen fullled)andforwhichprojectnancingisinplace. Gross development value TheestimatedmarketvaluetoathirdpartypurchaserofallprojectsforwhichBPIhaspur- chasedanassetorhasmadeanirrevocablecommitmenttopurchaseanasset. Average interest rate on gross nancial debt Thecontractualinterestrate(weightedaverage)ofnancialdebtinforceduringthenancial yearaftertakinghedginginstrumentsintoaccount.Financialdebtincludesdrawdownson creditfacilities,bankloansandleases). Gross dividend yield TheamountofthedividendproposedtotheAnnualGeneralMeetingdividedbythemarket capitalisationatthebalancesheetdate. Unsold units post completion Projectsforwhichconstructionhasbeencompletedduringthequartersprecedingthebalance sheet date. Projects under construction Projects under construction. Projects in development ProjectssecuredbyBPIRealEstatei)forwhichpermitapplicationsarebeingpreparedorhave beenledorii)forwhichbuildingpermitshavebeenobtainedbutconstructionhasnotyet started. Operating cash ow Cashowsfrom(usedin)operatingactivities. V SUSTAINABILITY STATEMENTS PursuanttoArticle3:32,§2oftheCompaniesandAssociationsCode,theannualreportmustincludeaSustainabilityStatement.This statement is contained in the next section of this annual report, of which it forms an integral part. OnbehalfoftheBoardofDirectors,17March2025. Luc Bertrand Chairman of the Board of Directors Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 71 Sustainability statements 2024 Our ambitions and achievements Management report Sustainability statements Financial statements Message from the Chairman and CEO Annual report 2024 - CFE 72 Contentsofthesustainabilitystatement TheSustainabilityStatementcontainsCFE’sconsolidatedsustainabilityinformationinaccordancewitharticle3:32§2oftheBel- gianCodeofCompaniesandAssociations,relatingtothenancialyearending31December2024.Thesustainabilitystatementis intendedtomeettherequirementsoftheCSRDatthedateofthisreportandisbasedonourunderstandingoftherequirements atthatdate.SincethepublicationoftheCSRDinDecember2022,variousdelegatedregulationshavebeenpublishedandthe interpretationoftheCSRDrequirementsandunderlyingESRSstandardshasevolvedcontinuously.Inaddition,theBelgianleg- islationimplementingtheCSRDwasnotapprovedandpublisheduntilDecember2024,whiletherstreportingyearisthe2024 nancialyear.Atthesametime,theEuropeanCommissionhasexpresseditsintentiontomodifytheCSRD,theCSDDDandtheEU taxonomy.Futureregulatorychanges(includingchangesininterpretation)willrequirechangestoourreportingapproachand practices.Theywillalsobeinuencedandimpactedbyothersustainability-relatedlegislation. PreparingfortheimplementationoftheCSRDandcollecting,verifyingandconsolidatingalltheprescribeddata,whichisoften newandverydetailed,requiresthecontributionofvariousrolesandteamswithintheorganisation.Theobjectives,projections andcertaindatapointsareforward-lookingandarethereforesubjecttoexternalvariablesanduncertainties.Datalimitations (e.g.useofdataestimation/extrapolationmethodsandtechniques,relianceonthirdpartydata)mayalsoaffecttheaccuracy oftheinformationdisclosed.Buildingonitspreviousnon-nancialreporting,CFEhasdevotedsignicantresourcestopreparing sustainabilitystatements,includingforitssubsidiaries,andhasmadeconsiderableeffortstoalignthemwiththespiritofthenew legislation and standards. TheSustainabilityStatementaddressessustainabilityissuesdeemedmaterialforCFE,itssubsidiariesanditsstakeholders.Other issues,althoughpotentiallyrelevant,areexcludedfromtheSustainabilityStatementbecauseoftheirlesserimportance. Althoughtaggingisnotmandatory,CFEhasdecidedtoindicatereferencestodatapointsassetoutintheEFRAGguidance.A tableofreferencespresentinthetextcanbefoundinAppendix2,andalistofomittedreferencescanbefoundinAppendix3. 1. GENERAL INFORMATION 1.1. Basis for preparation CFEcarriesoutongoingduediligenceproceduresandregularlychallengesitsDoubleMaterialityAssessment(DMA)process,in- cluding strong engagement with relevant stakeholders. Due diligence is an ongoing practice that responds to developments and mayleadtochangesinourGroup’sstrategy,businessmodel,activities,businessrelationships,operationalpractices,sourcingand salesenvironments.ForourDMA,weusethresholdsandjudgementsthatmayevolveovertimeinlinewithnewperspectives,indus- trydiscussionsanddevelopments. 1.1.1. Scope TheSustainabilityStatementsfortheyearended31December2024includeinformationfromCFESAanditssubsidiaries,inaccord- ancewithitsnancialconsolidationasdetailedintheNotetotheconsolidatednancialstatementsonpage137. ESRS 2 BP-1 5 a , ESRS 2 BP-1 5 b i ThequantitativedatapublishedinthissustainabilitystatementrelatestoCFESA(hereinafter‘thecompany’or‘CFE’)anditsfully consolidatedsubsidiaries:MBG,BPCgroup,Woodshapers,Benelmat,LTS 1 , Van LAERE, CLE, Arthur Vandendorpe, CFE Polska, CFE Bau , BPIBelgium,BPILuxembourg,BPIPolska,VMA 2 andMOBIX 3 .(Seethediagrambelow).Thesesubsidiarieswillnotpublishtheirownsus- tainabilitystatements. ThesubsidiariesintheInvestmentandHoldingssegment(GreenSTOR,DeepCHoldingandGreenOffshore)arenotincludedinthe scopeofthissustainabilitystatement.AsCFEdoesnothaveexclusiveoperationalcontrolofthesesubsidiaries,itisconsideredtobe outside the scope of the CSRD. 1 LTS is the commercial name of the Business Unit made up of the subsidiaries Terryn, Korlam and Lamcol 2 VMA is the commercial name of the Business Division made up of the subsidiaries VMA, VMA Sud, VMA Maintenance and VMA Polska 3 MOBIX is the commercial name of the Business Division made up of the subsidiaries MOBIX and MOBIX Engetec Our ambitions and achievements Management report Sustainability statements Financial statementsMessage from the Chairman and CEO Annual report 2024 - CFE 73 Table 1: CFE Group structure Construction & Renovation Real Estate Multitechnics Investments and Holding Development Multitechnique Investissements et Holding Promotion immobilières Construction & Rénovation CFE Bau Green Stor Deep C Holding ESRS 2 BP-1 5 b ii 1.1.2. ESRS reporting standards Sustainabilitystatementsfollowthestructure,formatandqualitativeandquantitativecharacteristicsprescribedbytheESRS(see Section8andAppendixFofESRS1“GeneralRequirements”)todiscloseinformationaboutmaterialimpacts,risksandopportunities inaccordancewiththedoublematerialityassessment(“DMA”)performed. CFEappliestheprinciplesofESRS1“Generalrequirements”andESRS2“Generalinformation”initssustainabilitystatement.These cross-cuttingthemesareincludedinthesections“1.1Basisforpreparation”,“1.2GOV4&5Notionofriskandduediligence“,“1.3SBM-1 Strategy,businessmodelandvaluechain”,“1.4SBM-2Interestsandviewsofstakeholders”,“1.5SBM-3MaterialIRO’sandtheirinter- actionwiththebusinessmodelandstrategy”,“1.6IRO-1and2DoubleMaterialityAssessment”and“1.7Organisationofrolesandre- sponsibilitiesforsustainabledevelopmentissues”. FollowingthecompletionoftheDMA,threesub-topicswereselectedasmaterialforCFE.Thesearethesub-topic“Climatechange mitigation”(ESRSE1)andthesub-topics“Healthandsafety”forourownworkforceandforworkersinthevaluechain(ESRSS1and ESRSS2).CFEwillthereforepublishinformationonthesethreesub-topicsinthesustainabilitystatement. InlinewiththeESRS1requirement,CFEhasincludedtheinformationprescribedundertheEUTaxonomyRegulation(Article8ofReg- ulation(EU)2020/852andaccompanyingdelegatedacts),inthe“EnvironmentalInformation”ofsustainabilitystatements. 1.1.3. Timehorizon ThetemporalscopeintheEuropeanSustainabilityReportingStandards(ESRS)oftheCorporateSustainabilityReportingDirective (CSRD)isessentialforassessingsustainabilityimpacts,risksandopportunities. Indeed,ESGthemescanbecomesignicantoverdifferenttimehorizons.Itisthereforeimportanttodeneshort-,medium-and long-termhorizonsbeforebeginningtoassessimpacts,risksandopportunities. SinceatypicalCFEbusinesscycleisdenedasveyears,wewillusethisasareferencetodenethemedium-termtimehorizon. Onthisbasis,weconsiderfourdifferenttimehorizons: • Current • ShortTermlessthanoneyear • MediumTerm1-5years • LongTermmorethan5years ThesetimehorizondenitionsareinlinewithESRSrequirements. ESRS 2 BP-2 9 a , ESRS 2 BP-2 9 b 1.1.4. Estimates and assessments InpreparingtheDMAandassessingpotentialmaterialimpacts,risksandopportunities,CFEanditssubsidiarieshaveusedtheir judgementinmakingestimatesandassumptions.Actualresultsmaydiffer. CFEanditssubsidiarieshaveusedestimatesandextrapolationsforcertainreportingdatapoints.Forexample,theCO2ofscope 3emissionsarecurrentlybasedmainlyonexpendituredata.Alltheassumptionsmadearedetailedintherelevantchapters(see table2below). CFEanditssubsidiariesregularlyreassesstheseestimatesandjudgementsbasedonexperience,thedevelopmentofESGreporting andtheavailabilityofmoregranulardatawhenconsideredrelevanttothecompany. Our ambitions and achievements Management report Sustainability statements Financial statementsMessage from the Chairman and CEO Annual report 2024 - CFE 74 Table 2: List of data with uncertainties or imprecisions Datapoint Reference Chapter concerned Description of the uncertainty or imprecision Action plan to limit uncertainty or imprecision Evaluating the IROs ESRS2 SBM- 3 48a 1.5 pp 79-84 TheevaluationoftheIROshasbeencarriedout usingthejudgementofCFEanditssubsidiariesin making estimates and assumptions. The inclusion ofstakeholderswasbasedonindirectsources. Theseestimatesandjudgementswillbereas- sessedregularlyonthebasisofavailablein- formation.Inthemediumterm,asurveywillbe carriedouttoobtaininformationdirectlyfrom stakeholders. EUtaxonomy -OPEX EU taxono- my - OPEX 2.1.3 p91 CFE will adopt a conservative approach and use thematerialityexemptionforthenumerator. Thiscautiousapproachwillbemaintainedinthe future. GHG emis- sions for scope3(to- tal) ESRS E1-6 51 2.2.5 p104 TheScope3guresdisclosedshouldbeconsid- eredasinitialestimates,mainlybasedonex- pendituredata(93%)andonly7%ondatabased on theoretical future consumption estimates. Certainnon-materialcategorieshavebeendelib- eratelyomitted. Moregranularactivitydatawillbeprogressively implementedoverthecomingyearstoreduce thepercentageofestimatesbasedonexpend- iture. As far as data for estimating future con- sumptionisconcerned,thereiscurrentlynoroom for improvement. GHG emissions for scope 3 (category1) ESRS E1-6 51 2.2.5 p104 Currentvaluesareallestimatesbasedonex- penditure data. Moregranulardatawillgraduallybecollectedto reducethedegreeofestimation,startingbycol- lectinggenericdataandthengraduallyintegrat- ingspecicinformationfrommanufacturerswhen itbecomesavailableandreliable. GHG emissions for scope 3 (category2) ESRS E1-6 51 2.2.5 p104 asforcategory1 asforcategory1 GHG emis- sions for scope3(cat- egory4) ESRS E1-6 51 2.2.5 p104 Thisdataarecurrentlyincludedinthecalculation ofcategory1. Thisdatawillbeextractedfromcategory1. GHG emis- sions for scope3(cat- egory11) ESRS E1-6 51 2.2.5 p104 Thisdataisbasedonestimatesoftheoretical future consumption. Atthisstage,thereisnopossibilityofimproving thequalityofthisdata. GHG emis- sions for scope3(cat- egory12) ESRS E1-6 51 2.2.5 p104 Thisdataarecurrentlyincludedinthecalculation ofcategory1. Thisdatawillbeextractedfromcategory1. Numberof lost-time accidents sufferedby ESRS S2-5 subcon- tractors 40 3.2.7 p117 Giventhelengthandcomplexityofthevalue chain,thisdataislimitedtosubcontractorswork- ingontheGroup'sprojects.Thisdatamaybe incomplete,asitonlyrecordsaccidentsforwhich sitemanagementteamshavebeeninformed. Aformalsystemoffeedbackfromsubcontractors willbeintroducedintheshortterm. ESRS 2 BP-2 10 a, b, c & d , ESRS 2 BP-2 11 a, 11 b i & 11 b ii 1.1.5. Incorporationbyreference ThespecicESRSdisclosurerequirementslinkedtoESRS2“GeneralInformation”arecloselyrelatedtothedisclosurerequirements alreadyinplaceforCFE,whichcanbefoundinwholeorinpartinothermorerelevantsectionsoftheannualreport.Table3below showswhereinformationfortheyearended31December2024,relatedtospecicdisclosurerequirementsoutsidesustainability statements,isincorporatedbyreferenceinthe“ManagementReport”,inparticularthe“PrincipalRisks”chapter,the“CorporateGov- ernanceStatement”andthe“RemunerationReport”. Withregardtoriskmanagement,CFEhasincludedESGrisksinitsriskchapter.FurtherdetailsonESGrisksandhowtheyareman- agedcanbefoundinthe‘ManagementReport’-II.Consolidatednancialstatements-1.2.Mainrisks’. Informationonthenancialimpactofsustainabilityissuesisincludedinthenancialstatementsinaccordancewiththerequire- mentsoftheIFRSandtheCSRDdirective.Themaineffectsofclimateandsocialissuesonthenancialstatementsaredetailedin section“2.2AdditionalinformationontheGroup’senvironmentalimpact”. ESRS 2 BP-2 16 Our ambitions and achievements Management report Sustainability statements Financial statementsMessage from the Chairman and CEO Annual report 2024 - CFE 75 Table 3: List of ESRS2 sections found in another section of the annual report ESRS 2 section Disclosure requirement Section of the annual report where information can be found GOV-1 Information on administrative, management and supervi- sorybodies(role,composition,expertise,etc.) Corporate governance statement GOV-2 Informationprovidedtothecompany'sadministrative, managementandsupervisorybodiesandsustainable developmentissuesdealtwithbythem Corporate governance statement GOV-3 Integratingsustainabledevelopmentperformanceinto incentive programmes Remuneration report GOV-5 Risk management and internal controls External and internal control and risk management 1.1.6. Phase-in provisions CFEusesthephase-inprovisionsoutlinedinESRS1“GeneralRequirements”(section10.4.-Transitionalprovision)andAppendixC (ListofPhased-inDisclosureRequirements).Thefollowingrequirementsarethereforeomittedfromthesustainabilitystatementfor theyearending31December2024. ESRS 2 BP-2 17 Table 4: Reporting requirements as part of a transitional application Reference Disclosure requirement Transitional provisions ESRS E1. IRO-1 Identicationofclimate risks Forclimaterisks,thephasing-inofprovisionsfortheyearending31December2024havebeenused. CFEhasdevelopedamethodologyforassessingclimaterisksandopportunities.Thisassessmentwill coverbothphysicalandtransitionalrisksinitsownoperations,aswellasalongtheupstreamand downstreamvaluechain(includingdetailedscenariosuggestionsandtimehorizonstobecoveredin short-,medium-andlong-termscenarioanalysis). ESRS E1-9 Anticipatednancialim- pactofmaterialphysical and transitional risks and potential climate-related opportunities. In 2024, CFE drew up guidelines for assessing climate risks and opportunities. From the next reporting year,qualitativedisclosureswillbeincluded,withmonetaryimpactsdisclosedfromthereportingyear ending31December2027. ESRS S1-7 Characteristics of non-employeeworkers in the undertaking's own workforce Inprinciple,thegroup'spoliciesandproceduresalsoapplytonon-employeeswithintheCFEwork- force.Reportingsystemswillbefurtherdevelopedandenhancedtoprovidegreatergranularity. ESRS S1-13 Characteristics of non-employeeworkers in the undertaking's own workforce These data are controlled and maintained by the group's various subsidiaries. The digitisation and consolidation of this data is currently being finalised. The quantitative data will be published from the reporting year ending 31 December 2025. 1.1.7. Changes in reporting method and prior period adjustments 2024istherstyearofESRSreporting.UnlikepreviousreportspreparedundertheNon-FinancialReportingDirective(“NFRD”),the preparationandpresentationofsustainabilityinformationhasbeensignicantlymodiedtoalignwiththesenewstandards. Thischangeismainlyduetothefactthat: • TheCSRD,throughtheESRSreportingstandards,hasdisclosurerequirementsanddatapointsthatmustbeincluded,either obligatorilyorbasedontheresultsoftheDMA; • Forgreenhousegasemissions(“GHG”),scope3isreportedforthersttime.Thereferenceyearistherefore2024; • CFEhasalsosetnewabsolutetargetsforthereductionofitsGHGemissions(scope1,2and3). ESRS 2 BP-2 13 a, b &c ; ESRS 2 BP-2 14 a, b & c 1.1.8. Informationderivedfromotherlegislationorgenerallyacceptedpositionsonsustainabilityre- porting CFE uses the GHG protocol for calculating and reporting greenhouse gas emissions. ESRS 2 BP-2 15 1.1.9. External review SustainabilitystatementsarecoveredbytheESGreview(limitedassurance)carriedoutbyCFE’sauditor,EY.Pleaserefertotheau- ditor’s limited assurance report in section 5.4 Appendix 4. Auditor’s report Pleasenotethatthecomparativegurespresentedinthetablesandthetrendsincludedinthesestatementshavenotbeensub- jected to limited assurance procedures in accordance with the requirements of the CSRD/ESRS. 1.2. GOV-4 & 5 Notion of risk and due diligence Asstipulatedinthe“ManagementReport”insection1.2“Mainrisks”,theExecutiveCommitteeputsinplaceinternalcontrolsandrisk Our ambitions and achievements Management report Sustainability statements Financial statementsMessage from the Chairman and CEO Annual report 2024 - CFE 76 management,subjecttoapprovalbytheBoardofDirectors.Thisisresponsibleforimplementingthisframeworktakingtherecom- mendationsoftheAuditCommitteeintoaccount.Atleastonceayear,theAuditCommitteeevaluatestheinternalcontrolsystems toascertainthatthemainriskshavebeenproperlyidentied,reportedandmanaged. CFE’ssubsidiariesmanagetheirownoperationalandnancialrisks,whichvaryfromsectortosector.Theserisksarenotcentralised atCFElevel.ThemanagementteamsofthesubsidiariesreportonriskmanagementtotheirrespectiveBoardofDirectors. Ontheotherhand,allidentiedrisksandtheimplementationofinternalcontrolsaredescribedindetailinthe“ManagementRe- port”.Inparticular,itdescribesingeneraltermsthenancial,economicandESGrisksfacingtheGroupandtheoperationalrisks associatedwiththevarioussegmentsinwhichitoperates(eitherdirectlyorindirectly). ESRS 2 GOV-5 ; ESRS 2 IRO-1 53 d,e,f Toidentifyandeffectivelymanagesustainabledevelopmentrisksinparticular,CFEhascarriedoutadoublematerialityassessment (DMA)ofESGrisks.Thisanalysisisrepeatedinthefollowingchapters. Duediligenceisanessentialstepintheriskmanagementprocess,asitenablesriskstobeidentiedandassessedindepth,facili- tating proactive and effective management. Table 5 : Mapping information relating to the due diligence process Mapping information relating to the due diligence process Paragraphs of the sustainability statement concerned ESRS concerned Integrating due diligence into governance,strategyandthe businessmodel 1.7Organisationofrolesandresponsibilitiesforsustainabledevelopmentissues(GOV-1,2and 3) ESRS 2 GOV-1 ESRS 2 GOV-2 ESRS 2 GOV-3 1.3SBM-1Strategy,businessmodelandvaluechain ESRS 2 SBM-1 1.5SBM-3MaterialIROsandtheirinteractionwiththebusinessmodelandstrategy ESRS 2 SBM-3 2.2.1SBM3-MaterialIROsandhowtheyinteractwiththebusinessmodelandstrategy ESRS E1 SBM-3 3.1.2SBM3-IRO'smaterialsandhowtheyinteractwiththebusinessmodelandstrategy ESRS S1 SBM-3 3.2.2SBM3-IRO'smaterialsandhowtheyinteractwiththebusinessmodelandstrategy ESRS S2 SBM-3 Engaging with external stakeholders; 1.4 SBM-2 Interests and views of stakeholders ESRS 2 SBM-2 1.6IRO-1and2Doublematerialityassessment ESRS 2 IRO1 1.7Organisationofrolesandresponsibilitiesforsustainabledevelopmentissues(GOV-1,2and 3) ESRS 2 GOV-2 2.2.3 E1-2 "Climate change mitigation" policies ESRS E1-2 3.1.3 Policies related to own workforce ESRS S1-1 3.1.4 S1-2 Engagement process with own workers and their representatives ESRS S1-2 3.2.1 SBM2 Interest and views of stakeholders ESRS 2 SBM-2 Identifyingandassessing negative impacts on people and the environment 1.5SBM-3MaterialIRO’sandtheirinteractionwiththebusinessmodelandstrategy ESRS 2 SBM-3 1.6IRO-1and2Doublematerialityassessment ESRS 2 IRO1 &2 2.2.1SBM3-MaterialIROsandtheirinteractionwiththebusinessmodelandstrategy ESRS E1 SBM-3 2.2.2E1.IRO-1:Descriptionofthetoidentifyandassessimpacts,risksandopportunities ESRS E1 IRO-1 3.1.2SBM3-MaterialIROsandtheirinteractionwiththebusinessmodelandstrategy ESRS S1 SBM-3 3.2.2SBM3-MaterialIROsandtheirinteractionwiththebusinessmodelandstrategy ESRS S2 SBM-3 Takingmeasurestoremedy negative impacts on people and the environment 2.2.4E1-1,E1-3andE1-4:Transitionplans,decarbonisationlevers,targetsandresourcesinrela- tion to climate change policies ESRS E1-3 3.1.6 S1-4 Taking action on material impact on own workforce and approaches to managing material risks ESRS S1-4 3.2.6 Taking action on material impacts on value chain workers,etc. ESRS S2-4 Monitoring the effectiveness of these efforts 2.2.4E1-1,E1-3andE1-4:transitionplans,decarbonisationlevers,targetsandresourcesinrela- tion to climate change policies ESRS E1-4 3.1.7S1-5Objectives ESRS S1-5 3.1.8 S1-6 Characteristics of the undertaking’s workforce ESRS S1-6 3.1.11S1-14Healthandsafetymetrics ESRS S1-14 3.2.7 S2-5 Targets related to managing material negative impacts,etc. ESRS S2-5 ESRS 2 GOV-4 Our ambitions and achievements Management report Sustainability statements Financial statementsMessage from the Chairman and CEO Annual report 2024 - CFE 77 1.3. SBM-1Strategy,businessmodelandvaluechain 1.3.1. Strategyandbusinessmodel CFEisamulti-disciplinarygroupdevelopingglobalsolutionstocomplexsocietalchallengesinthefast-growingmarketsofsustain- ablebuildings,intelligentindustriesandtomorrow’senergyandmobilityinfrastructures.Toachievethis,theGroupcombinesthe strengthsofitsfoursegments:RealEstateDevelopment,Multitechnics(includingbuildingmanagement,industrialautomationand energyandmobilityinfrastructures),Construction&RenovationandInvestmentsandHoldings. 1. RealEstatedevelopment: BPIRealEstate,acompanyintherealestatedevelopmentsegment,isactiveinBelgium,LuxembourgandPoland.BPIRealEstate focusesondevelopmentsincityandtowncentreswithhighgrowthpotential,apositiveenvironmentalimpact,realopportunities forsoftmobilityandwhichensuresocialwell-being.BPIRealEstatetherebyfocusesonmixedprojectscombininghousing,ofces, commercialspaceandservices.AlltheseambitionsareachievablethankstothemultipletalentsthatmakeuptheBPIRealEstate teamsandtheirfocusoninnovationandsustainableapproaches. 2. Multitechnicssegments: CFE’sMultitechnicsactivitiesaredividedintotwobusinessdivisions:VMAandMobix. VMA:VMA’sactivitiesaredividedintotwoBusinessUnits(BUs):buildingtechnologiesandindustrialautomation.Thebuildingtech- nologiesdivisionincludescommercialelectricityandHVAC(heating,ventilationandairconditioning).Theindustrialautomation divisioncoversbothrobotisationandautomation,orproductionoperationsmanagement. MOBIX:TheRail&UtilitiesactivitiesarecarriedoutbytheMOBIXcluster.MOBIXconsistsoftwoBUs,RailandUtilities.TheRailBUin- cludesrailengineeringworks(trackandcatenaryinstallation)andsignalling.TheUtilitiesBUincludesenergytransportandpublic lighting in Belgium. 3. Construction&Renovation: TheConstruction&RenovationsegmentisactiveinBelgium,Luxembourg,PolandandGermany,andspecialisesintheconstruction andrenovationofofcebuildings,residentialbuildings,hotels,schools,universities,parkinglots,industrialbuildings,andmore. 4. InvestmentsandHoldings IncollaborationwithAckermans&vanHaaren,theCFEgroupinvestsinsustainableinitiativesthroughitsstakesinDEEPCHolding, GreenstorandGreenOffshore.DEEPCHoldingisdevelopingprojectstocreateportsandrelatedindustrialzonesinVietnam.Asfor Greenstor,itisdevelopingbatteryfarmstoacceleratetheenergytransition.GreenOffshorehasinterestsindevelopingandoperat- ingBelgianoffshorewindfarms.AsCFEdoesnothaveexclusiveoperationalcontrolofthisbusinesssegment,itisconsideredtobe outside the scope of the CSRD. ESRS 2 SBM-1 40 a i,ii; ESRS 2 SBM-1 42 CFEaimstoplayaleadingroleinthesekeymarketsbyrejectingthestatusquoandchanginganythingthatcouldhaveanegative impactonfuturegenerations.TheGrouphasthereforeplacedinnovation,sustainabilityandsafetyattheheartofitsbusiness.CFE’s ambitionistobringpeople,skills,materialsandtechnologytogetherinacommunityof“changingforgood”.Thisfocushasenabled theGrouptoassumeapioneeringroleintheuseofsustainablebuildingmaterials,large-scalerenovation,advancedenergyman- agementandotherhighvalueareasforsociety.CFEhasbeenrecognisedasoneofthesector’sbestESGcompaniesbySustainaly- tics.Withascoreof28.1inDecember2024,CFEisinthe10thpercentileofSustainalytics’rankingofthebestESGcompanies,andhas beenawardedthe“Topratedindustry2024”label”. TheambitionoftheCFEgroupisclear.Itistobeamongtheleadersindevelopingsustainablebuildings,4.0industrialisationprojects andinfrastructureforthemobilityandenergiesoftomorrow. CFE’sstrategyisexpressedundertheacronym“SPARC”,whichservesasacompassfortheGroup’sentities.ItguidestheShiftto- wardsinnovationandsustainabilityaswellasthedesiretoPerformandachieveoperationalexcellence,toAccelerateitsgrowth throughanintegratedapproach,tocreatevalueandaReturnforallstakeholdersandtoestablishagenuineCommunityasagents ofchangebothinsideandoutsidetheorganisation CFEhas2,854workers.2,282arebasedinBelgium,210inLuxembourgand359inPoland. ESRS 2 SBM-1 40 a iii SeveralmethodshavebeenputinplacetocapturetheinterestsofthosewithinCFE’svaluechainandthevariousstakeholders. Thisisdescribedindetailinchapter1.4.ThisinformationwasusedintheDMAprocess.AllstagesoftheDMA(engagementwith Our ambitions and achievements Management report Sustainability statements Financial statementsMessage from the Chairman and CEO Annual report 2024 - CFE 78 stakeholders,identicationofpotentiallymaterialissues,identicationofIROs,assessmentofthedoublematerialityofpotentially materialissues)havebeenprogressivelyvalidatedbythevariousmanagementandcontrolbodies,atExecutiveCommittees,Audit Committees and Boards of Directors. ESRS 2 SBM-2 45 d TheresultsoftheDMAhaveconrmedtheGroup’sstrategy.Infact,thestrategicfocalpointsformulatedbythegrouparewellinline withthematerialthemeshighlightedbytheDMAanalysis. ESRS 2 SBM-1 42 a, b 1.3.2. Valuechainanalysis CFEisamulti-disciplinarygroupactiveinthreemarkets:sustainablebuildings,intelligentindustryandenergyandmobilityinfra- structure. TheGroup’svarioussubsidiariesareactiveatdifferentlevelsintheimplementationoftheseprojects. Tomapthegroup’sownactivities,wehavearbitrarilychosentoplaceprojectexecutionandthegeneralcontractingbusiness(MBG, VanLaere,BPCGroup,CLE,CFEPolska,AVDDandMOBIX)atthecentreofthevaluechain. Wewillthereforeconsiderupstreamthesubcontractingandsupplyofbuildingmaterials.Anddownstreamwehavethedevelopers andnallytheinvestorsandend-users. UPSTREAM TIER 2+ SUPPLIERS UPSTREAM TIER 1+ SUB- CONTRACTORS OWN SECTOR TIER 0 GENERAL CONTRACTOR DOWNSTREAM TIER 1+ REAL ESTATE DEVELOPMENT DOWNSTREAM TIER 2+ FINAL USER Figure 1 : Visualisation of the value chain Inthisspeciccase,theactivitiesofVMA,BenelmatandLTScanbeconsideredasupstreamtier+1andtherealestatedevelopment activities of BPI Real Estate and Wood shapers as downstream tier +1 in the same value chain. ESRS 2 SBM-1 42 c Thisanalysisiscomplementedbyinputfromotherconsultedorganisationsinthevaluechain,aswellasbyabenchmarkingexer- cise.FortheDMA,some109differentstakeholdersarebelisted. Thesewerelistedandcategorisedintodifferentstakeholdergroupsfollowinganinternalanalysis: • direct stakeholders and associates; • selection of companies with the highest expenditure; • partners in joint ventures; • customers(downstream)and(sub)contractors(upstream); • selection of companies operating in the same geographical area as CFE. Theseincludemarketplayers(othergeneralcontractors,realestatedevelopers,etc.),nancialpartners(nancialinstitutions,insur- ancecompanies,etc.)andsuppliersofthemainresourcesusedinourprojects(concrete,steel,etc.). ThismappingexercisegivesusabetteroverviewofourvaluechainandthevariousresourcesandstakeholderswithwhichCFE interacts.Naturally,thisvaluechainmappingexerciseisnotexhaustive. ESRS 2 SBM-1 42 ThisclusteringofthecompaniesanalysedhasenabledustoidentifymoreclearlythemainstakeholdersconcernedbytheDMA assessment. ESRS 2 BP-1 5c Our ambitions and achievements Management report Sustainability statements Financial statementsMessage from the Chairman and CEO Annual report 2024 - CFE 79 1.4. SBM-2 Interest and views of stakeholderss 1.4.1. Identicationofkeystakeholders Bygroupingdifferentstakeholdersinourvaluechain,wecanidentifygroupsofstakeholderswhocouldbe“keystakeholderscon- cernedorimpacted”.Thisprocessisillustratedinthegurebelow. Consultants End clients Financial institutions Suppliers General contractors Sub- contractors Project developers Architects & engineers CHANGING FOR GOOD cfe Direct control Indirect control Media Environmental groups and ngo’s Academic researchers Sector alliances Neighbourhood Authorities Figure 2 : Visualisation of key stakeholders concerned or impacted ESRS 2 SBM-2 45 a i ThestakeholdersaffectedbyCFEcanbedividedintotwocategories:thoseunderdirectcontrolandthoseunderindirectcontrol. Directcontrolisestablishedbycontractualagreements,nanciallinksoradeliberatechoicetocollaborate.Thisdistinctionisim- portant,asCFEcanmakedecisionsthatdirectlyinuencethesestakeholders. Conversely,CFEhasnodecision-makingpoweroverindirectly-controlledstakeholders.Yettheiropinionsareimportant,andit’s absolutelyessentialtotakeintoaccountthepositiveandnegativeimpactwehaveonthem.Nevertheless,weneedtoapproach their opinions and comments with caution, recognising that their perspective is often focused on their own concerns rather than considering the wider impact. CFEhasthereforechosennottoengagedirectlywiththiscategoryofstakeholdersaspartoftheDMAforthenancialyear2024. Theirviewsandopinionswillonlybecollectedindirectly,viaspecicstudiesorpublications.Giventhecontinuousanddynamicna- tureoftheDMAprocess,thevariousstakeholderswillbeinvolvedasandwhenrequired. ESRS 2 SBM-2 45 a Fortheotherstakeholdersconcerned,vedifferenttypesofengagementwereusedtoidentifyimpacts,risksandopportunities (IROs).Thisisexplainedinthenextsection. Theimportanceofinvolvingawiderangeofstakeholdersinthematerialityanalysisisrecognisedinordertoobtainacompleteand balancedrepresentationofimpacts,risksandopportunities. ESRS 2 SBM-2 45 b ESRS 2 SBM-2 45 a iv ESRS 2 SBM-2 45 a v Our ambitions and achievements Management report Sustainability statements Financial statementsMessage from the Chairman and CEO Annual report 2024 - CFE 80 1.4.2. Stakeholder engagement strategies Tounderstandhowrelevantstakeholdersmaybeaffected,andtoidentifyandassessCFE’sIROs,vedifferentstakeholderengage- ment processes were used for this exercise: 1. Participationintherstdoublematerialityassessment:CFE’sESGstrategybegantotakeshapeviaanin-depthanalysisof stakeholdersandthesurroundingmarketin2019.Thisassessmentwascarriedoutbothonthebasisofinternalexpertiseand withthehelpofanexternalconsultant.ThisassessmentservedasthebasisfordrawinguptheGroup’ssustainabledevelop- mentstrategyanddeningitspriorities.Thematrixwassubsequentlyrevisedandrevalidatedeverytwoyears.Thisreviewis basedonongoingexchangeswithstakeholders. 2. Quantitativeresearchmethod:Thismethodusesthetoolandmethodologyasprescribedbyanexternalconsultant(PwC). Usingthistool,CFEcarriedoutacomprehensivereviewofthepublishedmaterialitymatrices,ESGstrategiesandotherofcial reportsof40strategicallyselectedstakeholders.Stakeholderselectioncriteriaincludednancialexpenditure/turnover,geo- graphicaldistributionandgoodrepresentationofthevariousgroupswithinthevaluechainasdenedinparagraph1.4.1.The variouspublicationsofsome40stakeholderswereanalysedindetailandlinkedtotheESRSlistofsectoralsub-themes. 3. Roundtableswithinindustryalliances:CFEisalsopresentinindustryassociationssuchasUPSI/BVSandADEB/VBA,placingit inacentralpositionforidentifying,monitoringandgettinginvolvedinESG-relatedissues.It’sworthnotingthatsomeofthese bodiesaremulti-sectoral(i.e.notjustgeneralbusinessandrealestatedevelopment),whichstrengthensthedialoguewith stakeholders. 4. Externalandinternalinterviews:Afourthmethodofengagingwithourkeystakeholdersistoconductexternalandinternal interviewswiththoseidentiedasexperts,whohavesufcientexpertisebasedontheiroperationalorbusinessroletorepresent someofthekeystakeholdersconcerned.Theseexternalandinternalinterviewsalsoservedasaninterimcheckontheprovi- sionalresults.Inaddition,theinternalexpertsformedanextendedteamwhichalsoparticipatedinidentifyingIROsandreect- ingonvaluationinthedoublematerialityexercise. 5. Ongoingstakeholderengagementprocess:CFE’sstrategyisbasedoncollaborationwithallprojectstakeholders,convinced thatsuccessliesinthecommitmentoftheentireprojectvaluechain.Thiscollectiveapproach,rootedinsustainabilityand impact,extendsfromdesigntomaintenance.Trust,transparencyandmutualunderstandingarethecornerstonesofour strongpartnerships,aimedatachievinglastingsolutions.That’swhyCFEtakesthetimetomaintainanongoingdialoguewith itsstakeholderstobetterunderstandtheirinterestsanditsimpact.Thisdialoguecantakeplaceatthestartofprojects(public inquiries,neighbourhoodcommitteemeetings,monitoringofcomplaintsandincidents,etc.),duringprojects(sitevisitsand meetings,meetingswithlocalresidents,etc.)orattheend(feedback,satisfactionsurveys,etc.). ESRS 2 SBM-2 45 a Thefollowingtableprovidesanoverviewofstakeholderengagementmethodsrepresentingthemainstakeholdersinvolved.It shouldalsobenotedthatsomeofthestakeholdercategoriesidentiedintheprevioussectionarenotconsidered“key”.Stakehold- ersmarkedwithanasterisk()canbeconsideredassimpleusersofoursustainabilitystatement.Inthetablebelow,directly-con- trolledstakeholdersareshowninboldandindirectly-controlledstakeholdersarenot. Nevertheless,DMAanalysisisadynamicprocess,whichmeansthatconsultationwiththevariousstakeholdersmayevolveovertime. Table 6 : List of key stakeholders and engagement strategies Stakeholders concerned Engagement strategies Researchersanduniversities Notconsideredakeystakeholder:nomaterialinuencecouldbeidentied,butservesasasource of information in our ESG approach Architects&designofces Quantitative research method Authorities Quantitative research method Consultants Not considered a key stakeholder: no material inuence could be identied, but serves as a source of information in our ESG approach End-users • Quantitative research method • Continuous dialogue with stakeholders Environmental groups and NGOs Not considered a key stakeholder: limited inuence, dialogue on CSRD not yet mature enough. Financialinstitutions • Internal and external interviews • Quantitative research method • Panel discussions with sector alliances Generalcontractors • FormerCFEmaterialitymatrix • Panel discussions with sector alliances • Internal and external interviews Media* Not considered a key stakeholder: limited inuence, dialogue on CSRD not yet mature enough. Neighbourhood Not considered a key stakeholder: limited inuence, dialogue on CSRD not yet mature enough. Realestatedevelopers • FormerCFEmaterialitymatrixandinternalexperts • Panel discussions with sector alliances • Internal and external interviews Our ambitions and achievements Management report Sustainability statements Financial statementsMessage from the Chairman and CEO Annual report 2024 - CFE 81 Stakeholders concerned Engagement strategies Sectoralliances Panel de discussions avec les alliances sectorielles Subcontractors • FormerCFEmaterialitymatrix • Quantitative research method • Internal and external interviews Suppliers • Quantitative research method • Internal and external interviews ESRS 2 SBM-2 45 a ESRS 2 SBM-2 45 a ii ESRS 2 SBM-2 45 a iii CFEplanstosupplementthisanalysiswithamoredetailedsurveyofkeystakeholdersnextyear.Thisworkisinpreparationwiththe varioussectoralalliancestoensurethatthesectorisalignedonthemostrelevantwayofquestioningstakeholders. ESRS 2 SBM-2 45 c ii CFE’smanagementwasdirectlyinvolvedintheprocessofidentifyingIROsandassessingtheirmateriality.Atthesametime,CFE’s managementandvariousgoverningbodieswerekeptinformedoftheresultsofthestakeholderanalysisofESGaspectsatspecic meetings(ExecutiveCommittee,AuditCommitteeandBoardofDirectors). ESRS 2 SBM-2 45 d 1.4.3. Results of stakeholder engagement Theanalysisofthematerialitymatrixreviewedin2023,thedataanalysiscarriedoutduringthequantitativestudy(benchmarking) andthesectorroundtableshavehelpedidentifyinitialseriesofrelevantthemes.Theresultsareshowninthetablebelow. Inthequantitativestudy,adistinctionwasmadebetweenthemesofhighimportance(shownhereinbold)andthoseofmedium importance(assessedbytakingintoaccountthenumberoftimesthetopicwasconsideredmaterialintheanalysisofthe40data sets).Bydefault,thethemesidentiedwiththeothertwomethodsareconsideredtobeofgreatimportanceandarethereforebold inthetablebelow. Table7: Identifying themes and sub-themes during stakeholder engagement ESRS themes and sub- themes Themes and sub-themes identied Previous double materiality exercise Analyse quantitative UPSI/BVS ADEB/VBA Management of relationships with suppliers, including paymentpractices Partnerships Climate change mitigation Action for the climate Climatechangemiti- gation Climatechangemiti- gation Climatechangemiti- gation Climate change adaptation Climate change adap- tation Climatechangemiti- gation Incomingowofresources Responsible consumption and production Incomingowofre- sources Resources inow Resourcesinow Outowofresources Outowofresources Waste management Waste management Healthandsafety Health and safety Healthandsafety Health and safety Health and safety Work-lifebalance Training and talent develop- ment Quality of training Training and talent devel- opment Energy Clean, affordable energy Energy Energy Corporate culture Decent work and economic growth Corporate culture Corruptionandbribery Lossofbiodiversity Lossofbiodiversity Diversity Diversity Genderequality Genderequality Duringthisidenticationstage,aninitiallistofpotentialIROswasalsodrawnupforeachrelevanttheme. Our ambitions and achievements Management report Sustainability statements Financial statementsMessage from the Chairman and CEO Annual report 2024 - CFE 82 Externalinterviewswithexpertsfocusedonthemethodologyusedtocapturetheviewsofthevariousstakeholders.Theseinterviews enabledCFEnotonlytovalidateitsmethodology,butalsotoensuretherelevanceoftheresultscollected.Infact,theseinterviews enabledustogathertheopinionsofourintervieweesontherelevantthemesandtheassociatedIROs. Thisexerciseconrmedtheimportanceofthefollowingthemes:climatechange,thecirculareconomy,healthandsafety,governance and talent management. Ongoing dialogue with CFE’s stakeholders highlights ESG-related concerns, principles and processes. Recent consultations have not alteredpreviousanalyses.Thisprovesthatthein-houseexpertsweinterviewedareawareofthepotentiallymaterialthemesaswellas theexistingandemergingIROsinoursector.Thismeansthatourinternalknowledgeisrepresentativeofthekeyexternalstakeholders involved in this exercise. ESRS 2 SBM-2 45 a v 1.4.4. Drawingupashort-listofpotentiallymaterialthemes Acrucialstepistoestablishthenallistofrelevantmaterialthemes,andthenidentifyalltheimpacts,risksandopportunitiesfor CFE.Thisrststageinidentifyingrelevantthemesdrawsonthelessonslearnedfromstakeholderengagementmethodsdescribed inthepreviouschapter.Theyhaveenabledustodrawupaninitialshort-listofpotentialmaterialthemes:: 1. Climate change adaptation 2. Climate change mitigation 3. Energy 4. Directimpactdriversofbiodiversityloss-Changinglanduses 5. Resourceinows,includingresourceuse 6. Waste 7. Workingconditions-Work-lifebalance 8. Workingconditions-Healthandsafety(ownemployees) 9. Equaltreatmentandopportunitiesforall-Traininganddevelopingskills) 10. Workingconditions-Healthandsafety(employees) 11. Corporate culture 12. Corruptionandbribery 1.4.5. Validatingtheshort-listofpotentiallymaterialthemes CFEhascarriedoutseveraliterationsandconsistencycheckstovalidatethislist.Toachievethis,CFEusedinformationfromrating agencies and carried out several review iterations with internal experts, including the various administrative, management and con- trolbodies.Finally,theentire,extensivelistofAR16itemswasreviewedtoensurethatnothemehadbeenforgottenoroverlooked. During these iterations several themes were added, in particular the following ones: 13. Water usage 14. Resourceoutowsrelatedtoproductsandservices 15. Genderequality 16. Diversity 17. Communities’ economic, social and cultural rights - Land-related impacts 18. Protectionofwhistle-blowers 19. Managementofrelationshipswithsuppliers,includingpaymentpractices Wecanseethatnothemehasbeenremoved,butthatonthecontrary,thenalshort-listcontainsallthepotentiallymaterial themeslisted.Theshort-listofpotentiallymaterialsubjectsthereforecomprises19themes.Thefollowingstepswillconsistin: • identifyingpotentialIROslinkedtothesethemes(anexercisealreadybegunduringthepreviousphaseofdialoguewithstake- holders); • scoring these IROs; • clustering IROs into ESG topics – it is these ESG themes that are shown in the DMA graphic. 1.5. SBM-3MaterialIROsandtheirinteractionwiththebusinessmodelandstrategy Asakeyelementinidentifyingmaterialsustainabilityissues,CFEhascarriedoutaDMA.Materialityhasbeenappliedsince2019, whenCFEbeganreportingundertheNFRDregulations,buttheconcepthasevolvedundercurrentCSRDlegislation. Asof2019,allESGthemeshavebeencategorisedinamaterialitymatrixtakingintoaccountthedegreeofimportanceforthedif- ferentstakeholdersandtheimpactonthebusinessandnancialperformance.Allthehighmaterialitythemes(prioritythemes),i.e. havingbothahighimpactonCFE’sbusinessandperformanceandwhichareimportantforthestakeholders,havethereforebeen Our ambitions and achievements Management report Sustainability statements Financial statementsMessage from the Chairman and CEO Annual report 2024 - CFE 83 closelymonitored. Aregularreviewofthismatrixwasthencarriedoutandsystematicallyvalidatedbytheadministrative,managementandcontrol bodies. ThismethodologyanticipatedtosomeextentthephilosophyofaDMAundertheCSRD. In2024,CFEtookanewDMAapproachusingtheconceptof“nancialmateriality”(outside-in)and“impactmateriality”(inside-out) basedonESRS2andEFRAGIG1’simplementationguidance“Materialityassessment”.Themethodologyforidentifyingpotentially materialthemeshasbeenpresentedinchapter1.4-SBM-2Interestandviewofstakeholders.Themethodologyusedtodetermine theIROsrelatingtothesethemesandtoassessthemwillbepresentedinchapter1.6IRO-1and2Doublematerialityassessment. CFEisconvincedthattheresultspresentedgiveatrueandfairviewofitskeysustainabilityissues,includingimpacts,risksandop- portunities. The following sections provide more details on the results of the DMA and the process applied. 1.5.1. Resultsofthedoublematerialityassessmentexercise Thetablebelowsummarisesourassessmentoftheimportanceofsustainabilityissues,indicatingwhethertheyhaveanimpact ornancialmateriality(orboth).Asfarasthenancialperspectiveisconcerned,itspecieswhethertheimportanceislinkedtoa riskoranopportunity.Onlymaterialsub-themesarerepresented.TheanalysisoftheIROswascarriedoutindetailwiththevarious stakeholders. OnthebasisoftheDMA,threetopicswereselectedasmaterial:“Climatechangemitigation”,“Safetyandhealthofownworkforce” and“Safetyandhealthofsubcontractors”. CFEpresentsitsanalysisofIROsinchapter1.5.2“Impact,risksandopportunitiesformaterialthemes”.TheotherchaptersoftheSus- tainabilityStatementdetailpolicies,objectives,keyperformanceindicatorsandprogressforeachmaterialthemeinaccordance withtheCSRDformat,followingthesequenceincludedintheESRSunder“2.environmentalinformation”,and“3.socialinformation“. ESRS 2 SBM-3 48 a Table 8: DMA results Material for CFE Denition Corresponding ESRS Impact materiality Financial materiality Risk Opportunity Climate change miti- gation The process of reduc- ing CFE's GHG emissions (scope1,eet,fuelandgas; scope2,electricity;scope 3,buildingmaterials,en- ergydemandsofproperty projects). Climatechange(ESRSE1)- Climate change mitigation yes yes yes Healthandsafety Healthandsafetyindica- tors, policies and practices forallCFEemployees Ownworkforce(ESRSS1)- Working conditions - Health andsafety yes no no Healthandsafetyindica- tors, policies and practices forallsubcontractors. Valuechainworkers(ESRS S2)-Workingconditions- Healthandsafety Therstmaterialthemeisthereforethemitigationoftheeffectsofclimatechange.Indeed,theconstructionsectorhasasignicant impactongreenhousegas(GHG)emissions.Fromanancialpointofview,thereisasignicantriskofincreasingcostslinkedto possibletaxesortheneedtousematerialsortechniquesthatcouldprovemorecostly.Ontheotherhand,themovetowardsnew marketssuchasenergyrenovationandtheconstructionofbuildingsinlinewiththeEuropeantaxonomyrepresentrealopportuni- ties for the sector. Therisksandopportunitiesenvisaged,however,donotrequireanimmediateandradicaladaptationoftheGroup’sbusinessmod- el.Indeed,thecurrentmodelisalreadyinlinewiththestrategy,whichfocusesondesigninganddevelopingsustainablebuildings, intelligentindustryandinfrastructureforgreenenergyandmobility.Rather,it’satransitiontoincreasedactivityofthiskindinthe future,andboththeteamsandthecompanyarereadyforit.Furtherdetailscanbefoundinsection2.2.1. ThehealthandsafetyoftheGroup’sworkersandsubcontractorsworkingonthesitesarethetwootherkeyissues.Inparticular, thereisahighprobabilityofnegativeimpact,asthesectorisknowntobehighlyaccident-prone.Strictlyspeaking,thereisnoma- terialnancialriskoropportunityforthesethemes.Thereisthereforenoneedtoplananyradicalchangestothebusinessmodel, butrathertocontinuewiththespecicactionsputinplacetoreducetheriskofaccidentsonsiteasmuchaspossibleforeveryone involvedintheproject.Furtherdetailscanbefoundinsection3.1.2and3.2.2. ThedoublematerialityexercisealsoshowsthattwotopicsarefairlyclosetothematerialitythresholdsdenedbyCFE(seedetailsof thedenitionofthesethresholdsinchapter1.6.2).Thesetopicsconcern“talentmanagementandretention”and“managementand useofincomingresources”.Thesethemesinparticulararethereforecloselymonitoredinternally,astheycouldbecomematerialin Our ambitions and achievements Management report Sustainability statements Financial statementsMessage from the Chairman and CEO yes no no Annual report 2024 - CFE 84 a future reassessment of the internal and external context. Preventive actions are therefore taken. Asfarastalentisconcerned,theemphasisisontrainingandcommunication.CFEhasalsodevelopedaCFEAcademy,digitising trainingcoursesandfacilitatingaccesstothematthemostconvenienttimesforemployees.Themonitoringofemployeeapprais- alsanddevelopmenthasalsobeendigitised. Intermsofresources,particularattentionispaidtokeyprojectresources,aswellastodevelopmentsinthecirculareconomymar- ketandtheuseofbiobasedmaterials.Thesesubjectsaremonitoredonaregularbasis. Thedoublematerialityexercisealsoshowsthatthethemesofcorporateculture,whistleblowerprotectionandcorruptionandbrib- ery(combinedina“businessconductandcompliancewiththelaw”theme)arenotmaterial,whichmightseemsurprisingatrst glance.Acriticalanalysisandvericationofassumptionsandmaterialitythresholdshasthereforebeencarriedoutspecicallyfor thesethemes.Thisanalysisconrmedtheresultsobtained. Indeed,althoughbenchmarkingshowsthatinsimilarcompanies,thethemeofgovernanceisoftenhighlighted,thereisnotyet sufcientpublicdataonmaterialityanalysesinthecontextofCSRDatthetimeoftheDMA2024exercise.Thiscouldleadtoabiased comparison.Itisalsoimportanttounderlinethedifferencesinactivity,geographicalpresenceandstructurethatdistinguishCFE fromitspeersthatcouldbetakenasareferenceforcomparison. Theprobabilityofagovernance-relatedincidentisrelativelylowwhenassessingthenancialimpact.Severalobservationscanbe made in this regard: • Geographic:CFEhaslimiteditscommercialactivitiestoBelgium,Poland,LuxembourgandGermany.InthisEuropeanso- cio-economiccontext,solidregulations,well-enforcedlawsandapoliticallystableenvironmentsignicantlyreducethelikeli- hood of corruption-related incidents. • Asalistedcompany,theCFEgrouphasastronginformationculture.Itadherestohighstandardsofnancialreportingand transparency,reinforcingitsinternalcontrolprocesses. • Finally,thetrackrecordofthegroupconrmsthissoundmanagement. Furtherinformationcanalsobefoundinchapter4Informationongovernance. Thesamequestioncouldbeaskedofclimatechangeadaptation.ThisismainlyduetothenatureofCFE’sactivities.Intermsof opportunities,CFEdoesnotspecialiseincivilengineeringorinthecreationofspecicengineeringstructurestoprotectagainstthe effectsofclimatechange,suchasdykes,stormwaterbasins,etc.WithregardtoprojectstraditionallycarriedoutbyCFE(hous- ing,ofces,etc.),currentregulationsalreadytakeconsiderableaccountofthemainrisksinourregions.NordoesCFEhavemany buildingsorrealestateinitsportfoliothatcouldbeatrisk.Furthermore,basedontheDMA,thefollowingthemes(fromtheshort- listofpotentiallymaterialtopicsaslistedinsections1.4.4and1.4.5)werealsonotconsideredmaterial:energy,biodiversity,waste management, water use, resource use related to products and services, DE&I, economic, social, and cultural rights of communities (land-relatedimpacts),andsupplierrelationshipmanagement. 1.5.2. Impact, risks and opportunities for material themes Table 9 : IROs for material themes Topic Sub-topic Sub-sub- topic IRO type IRO description Time horizon Main affected tier in the value chain Climate change Climate change mitigation Negative Impact Carbonemissionsdue toembodiedcarbon (buildingmaterials) andoperationalcarbon (energyconsumptionof buildbuildings) Short term Own sector tier 0 Downstream tier 1+ Climate change Climate change mitigation Risk CO 2 quotas or taxes which will increase ex- penses/lower margin Mid term Own sector tier 0 Downstream tier 1+ Lowerlevelofactivityor mitigation to more ex- pensive solutions Own sector tier 0 Downstream tier 1+ Our ambitions and achievements Management report Sustainability statements Financial statementsMessage from the Chairman and CEO Annual report 2024 - CFE 85 Topic Sub-topic Sub-sub- topic IRO type IRO description Time horizon Main affected tier in the value chain Climate change Climate change mitigation Opportunity Design and construction ofEUTalignedbuildings, which differentiate from competitors Actual Downstream tier 1+ High CO 2 PL level score to have commercial ad- vantage in tenderings Own sector tier 0 Renovation market for energetic renovation has a huge potential to decrease operational carbonemissions Own sector tier 0 Downstream tier 1+ Upstreamtier1+ Own workforce Working conditions Health and safety Negative Impact Accidents,evendeadly accidentsarepossible on-site Actual Own sector tier 0 Workers in the value chain Working conditions Health and safety Negative Impact Accidents,evendeadly accidentsarepossible on-site Actual Upstreamtier1+ Thetableaboveshowsthematerialimpacts,risksandopportunitiesrelatedtosustainabledevelopmentthathavebeenidentied aspartoftheDMAprocess.Theyalsoindicatewhichlinkinthevaluechaintheseimpacts,risksoropportunitiesaremainlyassoci- atedwith.Inaddition,itspecieswhethertheimpactsarepositiveornegative,actualorpotential,aswellasthemaintimehorizon considered.Allrisksandopportunitieshaveanticipatednancialeffectsbasedonavailableknowledgeandjudgements.Further informationonhowtheeffectsofimpacts,risksandopportunitiesareaddressedisincludedinthethematicsectionsentitled“2. Environmentalinformation”and“3.Socialinformation”. ESRS 2 SBM-3 48 a ;b; 48c I, ii, iii, iv; d; f; g; h Inparticular,thedescriptionoftheanticipatednancialeffectsofsignicantrisksandopportunitiesonthenancialposition,nan- cialperformanceandcashowsovertheshort,mediumandlongtermwillbedetailedinthefollowingspecicchapters: • 2.2.1SBM3:MaterialIROs,andtheirinteractionwithstrategyandbusinessmodel-intheESRSE1section:climatechange; • 3.1.2SBM3:MaterialIROs,andtheirinteractionwithstrategyandbusinessmodel-intheESRSS1section:ownworkforce; • 3.2.2SBM3:MaterialIROs,andtheirinteractionwithstrategyandbusinessmodel-intheESRSS2section:Workersinthevalue chain. ESRS 2 SBM-3 48 e Our ambitions and achievements Management report Sustainability statements Financial statementsMessage from the Chairman and CEO Annual report 2024 - CFE 86 1.6. IRO-1and2Doublematerialityassessment 1.6.1. Descriptionoftheprocedureappliedtoassessdoublemateriality Thegurebelowillustratesthedoublematerialityassessmentprocess.. Figure 3 : Visualisation of the DMA assessment process Therst4stepshavealreadybeendescribedindetailinpreviouschapters(SBM1andSBM2). Theseincludevaluechainmapping(chap1.3.2),identicationofthemainstakeholdersinvolved(chap1.4.1),stakeholderengage- ment(chap1.4.2and1.4.3),andnallyashort-listofESGthemesrelevanttoCFEandwhichwouldbesourcesofimpact,riskandop- portunity(chap1.4.4and1.4.5).Oncethesethemeshadbeenidentied,duringengagementwithstakeholders,potentialIROswere alreadyidentiedfortheselectedthemes.Afterseveraliterations,aninternalexercisewiththehelpofmanagementandexperts enabledustoidentifythemainIROs. ESRS 2 IRO-1 53 b,c,d,g 1.6.2. DescriptionofthemethodologyusedtoevaluateIROs CFEhasdevelopeditsmethodologywithreferencetoESRS2“Generaldisclosures”andEFRAG’simplementationguideIG1“Materiality Assessment”.Thesectionsbelowdealwiththeconceptsofpre-mitigation,thedenitionandconsolidationoftheimpactandnan- cialmaterialityidentiedthroughouttheGroup’sbusinesscycles,andthecoverageobtainedintermsofDMA. Pre-mitigation CFEevaluatespotentialIROsidentiedthroughoutthebusinesscycleonthebasisofpriormitigation.Thismeansthattheassess- mentiscarriedoutbeforeanymitigationmeasures–goingbeyondwhatisexpectedofatypicalcompanyinthesectoronthe basisofmanagement“bestpractice”–areapplied. Impactmateriality Asustainabilityissueismaterialfromthepointofviewofimpactwhentheactualorpotentialimpact,positiveornegative,ofCFEon peopleortheenvironmentissignicantintheshort,mediumorlongterm.InaccordancewiththeESRS,threeparameters-“scale”, “scope”and“irremediablecharacter”(fornegativeimpactsonly)-wereusedtoassessthe“severity”ofimpacts. Becausethethemescanbediverse,touchingontheenvironmentaswellaspeople,biodiversity,etc.,itisimpossibletohaveasin- gledenitionofscaleorscope.CFEhasthereforepreparedadenitionofthelevels(from1to5)consideredbytypeofimpact. Value chain mapping Identification of key stakeholders concerned Engagement with stakeholders Identification of potentially material themes Identification of IROs Evaluation (scoring) of IROs Validation by successive iterations Clustering of hardware IROs if necessary Final double materiality matrix Our ambitions and achievements Management report Sustainability statements Financial statementsMessage from the Chairman and CEO Annual report 2024 - CFE 87 Theevaluationwascarriedoutbybusinesssector(RealEstateDevelopment,C&RandMultitechnics).ForrealestateandC&Ractiv- ities,theevaluationhasbeensplitintoconstructionandrenovationprojects.FortheMultitechnicsactivitiesaseparateanalysiswas carriedoutforVMAandMOBIX.Thisdivisionhasbeenmadetotakeaccountofsubstantialdifferencesintheimpactoftheactivities. WeightingfortheCFEgrouptoobtainanalscorebypotentialmaterialthemewascarriedoutintwophases.Firstly,basedonthe percentage of new or renovation projects in our portfolio. Thevariousbusinesssectorswerethenweightedtoobtainanalnumber.Topreventpotentiallysignicantissuesin(nancially) smallerbusinesssectorsfrombeingoverlookedbytakingaweightedaveragebasedonnancialparameters,aweightedaverage istakenforimpactmaterialitybasedonESGallocationkeysspecictothethemebeingevaluated.Thesenon-nancialguresgive abetterrepresentationoftheCFEgroup’simpact.Forexample,forworker-relatedthemes(healthandsafety,talentmanagement, etc.)theweightingwillbebasedonthenumberofemployeesperbusinesssector. Atopicmustscoreatleast3.5outof5tobeconsideredmaterial.Withascoreof3orabove,athemeisconsideredtobeoneto watch,asashort-ormedium-termre-evaluationcouldleadtoitbeingrequaliedasamaterialtheme.Thisthresholdwasdened duringworkshopswithexpertsfromthevariousAvHGroupsubsidiaries.Workshopduringwhichananalysisofthemarketandbest practiceswascarriedout.ThisthresholdwasthendiscussedandvalidatedbytheExecutiveCommitteeandtheBoardofDirectors. Financialmateriality Asustainabilitytopicisimportantfromanancialpointofviewifittriggersorcouldtriggersignicantnancialconsequencesfor CFE in the short, medium or long term. Withregardtonancialmateriality,CFEconsiderstheimpactonnetincomeusingarolling5-yearhistoricalaverage,includingoc- casionalcapitalgains.Forone-offrisksandopportunities,theeffectonequityinthemostrecentyearistakenintoaccount. Aswiththematerialityofimpact,theevaluationwascarriedoutforallfourbusinesssectors.Forrealestate,theevaluationwasalso dividedbetweennew-buildandrenovationprojects.Thisdivisionhasbeenmadebecausewecansuggestsubstantialdifferences betweentheimpactoftheactivities.Thenancialimpactisweightedbyaprobabilityfactor. Duringtheevaluation,wereducedthenancialimpactoverseveralyearstoanannualimpact.Thishasbeendonetotakeaccount ofthefactthattheevaluationwasmadefordifferenttimehorizons. Forthedenitionofnancialimportance,calculationsweremadeonthebasisofatypicalCFEbusinesscycle:theprevious3years andthenext2yearsofCFE’snetincome.Inthemeantime,theprotfortheyear2024isknown,butitdoesnotmateriallyimpactmy denitionofnancialimportance.Basedonitsexperienceandsoundmanagement,anancialimpactgreaterthan10%wascon- sideredasmaterialbytheBoardofDirectors.ThiscorrespondstoathresholdofEUR3,178,380.Inlinewiththeimpactmateriality,this thresholdcorrespondstoavalueof3.5onascaleof0to5(0correspondingtoEUR0.00). ESRS 2 IRO-1 53 a 1.7. Organisationofrolesandresponsibilitiesforsustainabledevelopmentissues (GOV-1,2and3) Toremainintouchwiththeeldandmarketwhileguaranteeingaglobalandintegratedstrategicapproachdespiteitsdecentral- isedbusinessmodel,CFEhasputinplaceclearESGgovernance.Theoverallstrategy,long-termvisionandtargetsettingisthere- sponsibilityofCFE’sExecutiveCommittee. ThisstrategyandtheESGpolicyasawhole(materiality,policies,objectives,actionplan)arepresentedannuallytotheBoardof Directorsforapproval.Theresultsofthispolicy(KPIsinlinewithobjectives)arealsopresentedtotheAuditCommitteeforvalidation atleastonceayear.In2024,thereportingprocessandinparticularmaterialitywerereviewedtoalignwithCSRDrecommendations. Thiscomplexprocessrequiredmoreregularmonitoring.Progressintermsofmaterialityandtheimplementationofdatacollection wasthereforealsopresentedateachAuditCommitteemeetingin2024.Furtherdetailsareavailableinthe“CorporateGovernance Statement”. ESRS 2 GOV-2 SpecicdetailsoftheESGcredentialsofCFE’sBoardofDirectorscanbefoundinthe“CorporateGovernanceStatement,2.Boardof Directors-2.1Composition”.SpecicinformationontheESGparametersofvariablecompensationfortheExecutiveCommitteeand managementisavailableinthe“RemunerationReport,2.4Compensationcomponents”. ESRS 2 GOV-1 & 3 Everythreeyears,thevariousBusinessUnitsarerequiredtocarryoutastrategicexercise.TheythenimplementtheGroup’sstrategy accordingtotheirownbusinesslinesinamedium-termvision.ThisambitionisvalidatedbytheExecutiveCommittee. Our ambitions and achievements Management report Sustainability statements Financial statementsMessage from the Chairman and CEO Annual report 2024 - CFE 88 Finally,everyyeartheBusinessUnitsareaskedtodenetheirspecicactionplanwithSMARTobjectives.Theseactionplansand theirrelevanceareassessedbytheSustainabilityBoard. Finally,atthelevelofeachproject,specicactionsarecarriedoutbylocalteams.Tostimulateinnovation,theimplementationof theseactionsandthesharingofgoodpractices,amanualcalledthe‘Greenbook’hasbeencreated.Itgatherstogetherallthe goodideasalreadyimplementedonotherprojects,andservestoinspireotheremployees. SustainabilityreallyliesattheheartoftheGroup’sstrategy.TheGroup’sChiefSustainabilityOfcerisapermanentguestonthe ExecutiveCommittee.ShealsooverseestheSustainabilityBoard,across-functionalbodymadeupofsustainabilitymanagersfrom thevariousBusinessUnits.EachBusinessUnit’ssustainabilitymanagerisrepresentedonthelocalManagementCommitteebya memberofthecommittee,whoactsas“ESGsponsor”. ToensureaconsistentapproachtoCSRDreportingandtosharebestpracticeswithitsmainsubsidiaries,AvHregularlyorganises workorinspirationmeetingswiththesesamesubsidiaries. Our ambitions and achievements Management report Sustainability statements Financial statementsMessage from the Chairman and CEO Annual report 2024 - CFE 89 2. ENVIRONMENTAL INFORMATION 2.1. EuropeanTaxonomyinformation(pursuanttoarticle8ofRegulation2020/852) Althoughclimatechangemitigationhasbeenidentiedasapotentialnancialrisk,CFEanditsBUsalsohavethepotentialtohave apositiveimpactinthisarea,ashighlightedbyCFE’salignmentwiththeEUTaxonomy. Comparedwith2024and2023,turnoverincreasedslightlyfrom20.0%to21.5%.Aboveall,thisreectsaverycleartrendforprojects developedbyBPIRealEstate(77.31%alignmentin2024vs.58.57%in2023).Withregardstoprojectsdevelopedbyexternalclients,the trendisfairlystable(14.85%alignmentin2024versus14.46%in2023).Althoughweareawareoftheregulationsinforceandtheim- portanceoftaxonomy,progressremainsslow. Alignedcapitalexpenditureremainsmodest,reaching13.97%in2024.ThisisinlinewithCFE’sbusinessmodel,whichisnotfocused on making major investments. Figure 4: Visualisation of aligned 2024 turnover and CAPEX gures 2.1.1. DescriptionoftheEuropeanTaxonomy TheTaxonomyRegulation 1 createsaframeworkfordeterminingtheextenttowhicheconomicactivitiescanbeconsideredenviron- mentallysustainableintheEuropeanUnion,therebyimprovingtransparency. Thesixenvironmentalobjectivessetbythetaxonomyregulationareasfollows:climatechangemitigation,climatechangeadap- tation,sustainableuseandprotectionofwaterandmarineresources,transitiontoacirculareconomy,pollutionpreventionand control,andprotectionandrestorationofbiodiversityandecosystems. Aneconomicactivityisconsideredsustainableifitcontributessubstantiallytooneoftheseobjectiveswithoutharmingtheoth- ers(DNSHprinciple)andrespectsminimumsocialguarantees.Theseguaranteesensurerespectforsocialstandardsandhuman rights at corporate level. TheEuropeanCommissionestablishestechnicalscreeningcriteria(TSC)foreligibleactivities,graduallyaddingtothem.Ifthesecri- teriaandtheminimumguaranteesaremet,theactivityissaidtobealignedwiththeTaxonomyandconsideredsustainable.Ifthe technicalscreeningcriteriaaremet,andtheminimumguaranteesarerespected,theactivitiesare“aligned”withtheTaxonomy. Theyarethenconsideredenvironmentallysustainable. 2.1.2. Scopeandmethodology CFEhasassessedhowandtowhatextentitsactivitiesareassociatedwitheconomicactivitiesconsideredsustainableaccording totheEUtaxonomy.Despitesomeuncertaintiesregardingthepracticalapplicationofthetaxonomyregulationanditsdelegated acts,CFEhasdoneitsbesttocollectreliabledataontheeligibilityandalignmentofactivitiesandtoanalysethedifferenttechnical screeningcriteria.Theresultsareshowninthetablesonthefollowingpages. AswiththisSustainabilityStatementasawhole,theanalysiscoversentitiesinthefollowingsegments:ConstructionandRenovation, RealEstateDevelopmentandMultitechnics.TheactivitiesintheInvestmentsandHoldingssegment(GreenSTOR,DeepCHolding andGreenOffshore)arenotincludedinthescopeofconsolidation,asCFEdoesnotexerciseexclusiveoperationalcontrolover these.Itisimportanttonotethatforrealestateprojects,onlyfullyconsolidatedprojects(fully-ownedbyBPIRealEstate)weretaken intoaccount(eligibilityandalignment). 1 Supervised by 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 (hereinafter “the Taxonomy Regulation” or “the Regulation”). 14,0%21,5% 21.47% of CFE’s turnover is aligned with the European taxonomy (2023 – 20.0%) 13.97% of CFE’s capital expenditure (CAPEX) is aligned with the European taxonomy (2023 - 19.4%) aligned eligible but not aligned non eligible Our ambitions and achievements Management report Sustainability statements Financial statementsMessage from the Chairman and CEO Annual report 2024 - CFE 90 Astructurefordouble-checkingandaligningnancialreportingbetweenunitsandtheconsolidationhasbeenputinplaceto maintainconsistencyintheinterpretationoftaxonomyregulationsandtheconsistencyofnancialstatements.Thisalsoavoidsthe riskofdoublecountingandinaccuraciesduetointer-companytransactionsbetweenCFEanditssubsidiaries. 2.1.3. Eligibilitycalculation Startingfromturnoverintheconsolidatednancialstatements,anoverviewwasmadeoftheGroup’sdifferententitieswithregard to the nature of their activities and their NACE codes. The list of NACE codes is a European framework that divides all economic ac- tivitiesintodifferentcodes.Tosupplementthiscalculation,acompleteanalysiswasalsocarriedoutbasedonthedifferentactivities ofCFEsubsidiaries.Thisensuresthatnopotentiallyeligibleactivityhasbeenoverlooked. DuetothedifferentsegmentsinwhichtheCFEGroupisactive,therearedifferentactivitiestotakeintoaccount.Threedifferentob- jectivescouldthereforebeappliedtotheGroup’sactivities:“climatechangemitigation”,“adaptationtoclimatechange”and“tran- sitiontoacirculareconomy”.However,giventheGroup’sactivities,itisnoteligibleforthe“climatechangeadaptation”objective. CFEdoesnotspecialiseincivilengineeringorintheconstructionofspecicengineeringstructurestoprotectagainsttheeffects ofclimatechange.TheprojectscarriedoutbytheCFEgrouparethereforenotconsideredas“facilitators”forclimatechangead- aptationaccordingtotheEuropeantaxonomy.CFE’sprojectsfocusonconstruction,renovation,realestateandmultitechnics.Al- thoughtheyincorporateelementsofsustainability,theyarenotspecicallydesignedtofacilitatetheadaptationofothereconomic activitiestotheimpactsofclimatechange.Thisanalysismaybereviewedinthefuturetotakeaccountofpossiblechangesinthe Group’s activities. BelowisanoverviewoftheenvironmentalobjectivesforwhicheligibilitycanbeappliedaccordingtoCFE’sdifferentactivities. Table 10: Overview of the environmental objectives for which eligibility can be applied according to the different activities CFE Group seg- ments European Taxonomy activity Climate change mitigation Climate change ad- aptation Sustaina- ble water usage Transition to a circu- lar econ- omy Pollution prevention Biodiversity Construction & Renovation - Real Estate Constructionofnewbuildings(CCM7.1. –CE3.1.) x x Renovationofexistingbuildings(CCM 7.2.–CE3.2.) x x Multitechnics (VMABusiness Division) Installation, maintenance and repair of electric vehicle charging stations in buildings(andparkingspacesattached tobuildings) (CCM7.4.) x Installation, maintenance and repair of energyefciencyequipment (CCM7.3.) x Installation, maintenance and repair of instruments and devices for measuring, regulatingandcontrollingtheenergy performanceofbuildings(CCM7.5.) x Installation, maintenance and repair of renewableenergytechnologies(CCM 7.6.) x Multitechnics (MOBIXBusiness Division) Infrastructure for rail transport (CCM6.14.) x Thecalculationofeligiblecapitalexpenditurefollowsthesamemethodology,makingthecalculationsimilartothatforturnover. Operatingexpenses(OPEX),asdenedundertheEUtaxonomy,includearestrictivelistofoperatingexpenses.Giventhatresearch anddevelopmentarenotexplicitlyincludedinthenancialstatements,andthatmajorexpenditureonmaintenanceandrefurbish- mentisrecordedasanassetonthebalancesheetandthereforealreadyincludedinCAPEX,CFEappliestheOPEXexemptionrule. 2.1.4. Alignmentcalculation-Substantialcontributioncriteria(SCC) IntheRealEstateDevelopmentandConstruction&Renovationsegments,theGroup’sactivitiesareprojectbased.Itwillthereforebe necessarytoanalyseonaproject-by-projectbasisifthetechnicalselectioncriteriahavebeenmetinordertocarryoutthealign- ment calculation. Forthesesegments,theenvironmentalobjectiveof“climatechangemitigation”isthemostrelevant. Our ambitions and achievements Management report Sustainability statements Financial statementsMessage from the Chairman and CEO Annual report 2024 - CFE 91 Indeed,concerningtheenvironmentalobjective“transitiontoacirculareconomy”,thecurrentregulatoryframeworkdoesnotallow certainrecyclingandreusethresholdstobereached.Themarketlackssufcientavailabilityofthesematerials,makingthecriteria forasubstantialcontributiontothisobjectivealmostimpossibletoachieve,evenforveryambitiousprojects. ForCFE’sconstruction(CCM7.1)andrenovation(CCM7.2)activities,thecriteriaforsubstantialcontributionsthereforefocusonthe project’senergyperformance.Inotherwords: • Primaryenergyconsumption,distinguishingbetweennewbuildings(atleast10%lessthantherequirementsfornear-zeroener- gybuildings)andrenovations(compliancewiththerequirementsformajorrenovations); • Buildinglifecycleassessment; • Compliance and execution of an airtightness test; • Complianceandexecutionofaqualitycontrolfollow-uporthermalintegritytest. Toprovecompliancewiththesecriteria,aseriesofdocumentsmustbesupplied.TheseincludetheEPBdeclaration,anair-tightness test,proofofthequalityoftheworkcarriedout,andalife-cycleanalysis.Pleasenotethatforrenovationprojects,onlytheEPBcal- culationwillberequested. ForCFEactivitiescarriedoutbyitsVMABusinessUnit,thecriteriarelatingtotheinstallation,maintenanceandrepairofbuilding energyperformancecontroldevices,renewableenergytechnologies,energyefciencyequipmentandrecharginginfrastructure specifywhichactivitiesanddevicescanbeincluded(basedonthespecicationsofthesubstantialcontributioncriteria). ThemainactivityrelatedtotaxonomyforMobixisinfrastructureforrailtransportation.Thisincludesworkontracks,catenariesand signalling.Mostofthecriteriacanbedemonstratedinthesupportingdocumentsofclientstudiesandpermits.Becausethese arenotalwaysavailabletoMobix,thenecessaryevidenceforsomecriteriacouldnotbegatheredtodemonstratealignment.The alignmentforMOBIXistherefore0%insteadofthepotential70%.Wehavethereforeoptedforacautiousapproach. 2.1.5. Alignmentcalculation–‘Do No Signicant Harm’(DNSH)criteria Dependingontheactivitiesaligned,thefollowingDNSHcriteriaapply: • Climatechangeadaptation:Projectsmustincludeanassessmentofphysicalclimaterisksandimplementmeasurestore- ducethem.Thisincludestakingintoaccountthefutureimpactsofclimatechangeandadaptinginfrastructureaccordingly. • Pollution:Activitiesmustusebuildingmaterialsandcomponentsthatemitlessthan0.06mgformaldehydeperm³andless than0.001mgcategory1Aand1Bcarcinogenicvolatileorganiccompounds(VOCs)perm³.Thesematerialsmustalsomeetthe criteriaofAppendixCoftheTaxonomy. • Water:Activitiesmustensuresustainableuseandprotectionofwaterresources.Thisinvolvesefcientwatermanagement, reducing consumption and preventing pollution of water resources. • Circularity:Projectsmustpromotethecirculareconomybyusingrecycledandrecyclablematerials,minimisingwasteand encouragingthereuseofresources.Thisincludesdesignfordurabilityandeaseofdisassembly. • Biodiversity:Projectsmustavoidharmingecosystemsandnaturalhabitats.Thisincludesimplementingmeasurestoprotect andrestorebiodiversity,avoidingnegativeimpactsonspeciesandtheirhabitats. Foreacheligibleandpotentiallyalignedactivity(orproject),compliancewithDNSHcriteriahasbeenassessedanddocumented. ItisimportanttonotethatmostoftheGroup’sprojectsarespreadoverseveralyears,includingtheturnoverlinkedtothem.How- ever,tocalculatethetaxonomy,weneedtotakeintoaccounttheturnovergeneratedbytheseprojectsinthecurrentyear.Onthe otherhand,manycriteriacanonlybefullyveriedwhenprojectsarefullycompleted.Alignmentisthereforeassessedonthebasis ofinformationknownatyear-end,assumingthattherestoftheprojectwillproceedunderthesameconditions,withnochangesor incidentspreventingnalalignment. Estimatesaremadefromthebeginningtocalculatethealignment.Thevaluesofthevariouscriteriaareindicatedinthespeci- cationstoinstructthegeneralcontractorinrelationtotheclient.Theseestimatedvaluesarethencheckedwhenthebuildingis handedover,andacorrectioncanbeappliedifnecessary.Thissystematicvericationprocesswillcontinuetobedevelopedand automatedtoimprovetheowofdocumentationbetweenthevariousstakeholders. 2.1.6. Minimum safeguards The CFE Group complies with the requirements of the minimum guaranteesoftheEUTaxonomy(i.e.Article18ofRegulation (EU)2020/852oftheEuropeanParliamentandoftheCouncilof18June2020ontheestablishmentofaframeworktofacilitate Our ambitions and achievements Management report Sustainability statements Financial statementsMessage from the Chairman and CEO Annual report 2024 - CFE 92 sustainableinvestmentandamendingRegulation(EU)2019/2088). Article 18 provides as follows: “The minimum safeguards referred to in point (c) of Article 3 shall be procedures implemented by an undertaking that is carrying out an economic activity to ensure the alignment with the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights, including the principles and rights set out in the eight fundamental conventions identied in the Declaration of the International Labour Organisation on Fundamental Principles and Rights at Work and the International Bill of Human Rights.” Adetailedassessmentofthedocumentsandproceduresrelatingtothesethemeswascarriedoutattheendof2024toconrm compliancewiththeseminimumrequirements.Thisinternalassessmentfollowsanassessmentcarriedoutbyanexternalexpert (Greensh)in2022. Amongthedocumentsanalysedarethefollowing:the“CodeofConduct”,the“BusinessIntegrityPolicies”manualandthe“Human RightsPolicy”.Thecontentsandavailabilityofthesedocumentsaredescribedinsection4.2.Asfarasproceduresareconcerned, weparticularlynote:allmandatorytrainingcourses,awarenessandcommunicationcampaigns,theon-siteadministrativecontrol procedure,theon-sitereceptionprocedureandthespecicon-sitesafetytrainingprocedure(toolboxmeeting),allISOcertica- tions,theengagementprocedurewithallprojectstakeholdersandtheinternalauditprocedure.Theselistsarebynomeansex- haustive. 2.1.7. Results2024-Financialyear2024 2.1.7.1 Turnover:seetable11and12 ThetablesbelowwerecalculatedusingtheGreenomytool. Forconstructionactivities(CCM7.1.;CE3.1.)andrenovation(CCM7.2.andCE3.2.),totalturnoveristhesumoftheturnoverguresfor thevariousprojects.Thistakesintoaccountdouble-countingeliminationsinaccordancewithnancialconsolidationrules. ForeligibleandalignedturnoverintheMultitechnicssegment,theanalysisisbasedontheactivityofaBU. MOBIXconsistsintheRailsBUs(whichisfullyeligibleforactivityCCM6.14)andtheUtilitiesBU’s(whichisnoteligibleforanyactivity accordingtotheTaxonomy). VMAconsistsoftheBuildingTechnologydivisions(whicharepartiallyeligibleforactivitiesCCM7.3.;7.4.;7.5.and7.6.)andindustrial automation(noteligibleforanyTaxonomyactivity). 2.1.7.2 Capitalexpenditure(CAPEX):seetable13and14 Capitalexpenditurefollowsthesamemethodologyastheturnovercalculation,whichservesasthebasisforallocatingCAPEXdif- ferencestothevariouseligibleandalignedprojectsandactivities. 2.1.7.3 Operatingexpenses(OPEX):seetable15and16 TheamountshowninthetableisconsideredinsignicantbecauseCFEusestheOPEXexemptionruleinthecontextoftaxonomy disclosure.Asaresult,eligibilityandalignmentare0%. Our ambitions and achievements Management report Sustainability statements Financial statementsMessage from the Chairman and CEO Table 11 : Turnover eligibility and alignment FinancialyearN 2024 Substantialcontributioncriteria DNSHcriteria(‘DoesNotSignicantlyHarm’) EconomicActivities(1) Code(2) Turnover(3) Proportion of Turnover,year N(4) Climate Change Mitiga- tion(5) Climate Change Adap- tation(6) Water(7) Pollution(8) Circular Econo- my(9) Biodiversity(10) Climate Change Mitiga- tion(11) Climate Change Adap- tation(12) Water(13) Pollution(14) Circular Econo- my(15) Biodiversity(16) Minimum Safe- guards(17) Proportion of Taxono- my-aligned (A.1.)or-eligible (A.2.)turnover, yearN-1(18) Category enablingactiv- ity(19) Categorytran- sitionalactivity (20) eur % Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T A. TAXONOMY-ELIGIBLE ACTIVITIES A.1.Environmentallysustainableactivities(Taxonomy-aligned) Installation,maintenanceandrepairofrenewableenergytechnologies CCM 7.6. 6.992.202,80 0,59% Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y 0,57% E Renovationofexistingbuildings CE 3.2./ CCM 7.2. 35.667.414,00 3,02% Y N/EL N/EL N/EL Y N/EL Y Y Y Y Y Y 1,48% T Installation, maintenance and repair of instruments and devices for measuring,regulationandcontrollingenergyperformanceofbuildings CCM 7.5. 11.866.095,10 1,00% Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y 1,36% E Installation, maintenance and repair of charging stations for electric vehiclesinbuildings(andparkingspacesattachedtobuildings) CCM 7.4. 824.373,00 0,07% Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y 0,09% E Constructionofnewbuildings CE 3.1./ CCM 7.1. 198.430.672,34 16,79% Y N/EL N/EL N/EL Y N/EL Y Y Y Y Y Y 16,25% Turnover of environmentally sustainable activities (Taxonomy- aligned) (A.1) 253.780.757,24 21,47% 21,47% 0,00% 0,00% 0,00% 0,00% 0,00% 20,03% Of which enabling 19.682.670,90 1,66% 1,66% 0,00% 0,00% 0,00% 0,00% 0,00% 2,30% Of which transitional 35.667.414,00 3,02% 3,02% 1,48% A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL Y/N Renovationofexistingbuildings CE 3.2./ CCM 7.2. 27.267.496,88 2,31% EL N/EL N/EL N/EL EL N/EL 8,22% Infrastructure for rail transport CCM 6.14. 62.924.354,18 5,32% EL N/EL N/EL N/EL N/EL N/EL 4,79% Constructionofnewbuildings CE 3.1./ CCM 7.1. 485.617.320,80 41,08% EL N/EL N/EL N/EL EL N/EL 43,34% Installation,maintenanceandrepairofenergyefciencyequipment CCM 7.3. 2.255.320,00 0,19% EL N/EL N/EL N/EL N/EL N/EL 0,00% Turnover of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2) 578.064.491,86 48,90% 48,90% 0,00% 0,00% 0,00% 43,39% 0,00% 58,95% A. Turnover of Taxonomy-eligible activities (A.1+A.2) 831.845.249,10 70,37% 70,37% 0,00% 0,00% 0,00% 63,19% 0,00% 78,98% B. TAXONOMY-NON-ELIGIBLE ACTIVITIES Turnover of Taxonomy-non-eligible activities 350.323.921,90 29,63% Total 1.182.169.171,00 100,00% Table 12 : Turnover eligibility and alignment by objective Proportion of turnover / Total turnover Taxonomy-aligned per objective Taxonomy-eligible per objective CCM 21,47% 70,37% CCA 0,00% 0,00% WTR 0,00% 0,00% CE 0,00% 63,19% PPC 0,00% 0,00% BIO 0,00% 0,00% Our ambitions and achievements Management report Sustainability statements Financial statements Message from the Chairman and CEO Table 13: CAPEX eligibility and alignment FinancialyearN 2024 Substantialcontributioncriteria DNSHcriteria('DoesNotSignicantlyHarm') EconomicActivities(1) Code(2) CapEx(3) Proportion of CapEx,yearN(4) Climate Change Mitigation(5) Climate Change Adaptation(6) Water(7) Pollution(8) Circular Econo- my(9) Biodiversity(10) Climate Change Mitigation(11) Climate Change Adaptation(12) Water(13) Pollution(14) CircularEconomy (15) Biodiversity(16) Minimum Safe- guards(17) Proportion of Tax- onomy-aligned (A.1.)or-eligible (A.2.)CapEx,year N-1(18) Categoryena- blingactivity(19) Categorytransi- tionalactivity(20) eur % Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T A. TAXONOMY-ELIGIBLE ACTIVITIES A.1.Environmentallysustainableactivities(Taxonomy-aligned) Installation,maintenanceandrepairofrenewableenergytechnologies CCM 7.6. 214.996,40 0,79% Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y 0,39% E Renovationofexistingbuildings CE 3.2./ CCM 7.2. 599.803,93 2,21% Y N/EL N/EL N/EL Y N/EL Y Y Y Y Y Y 1,20% T Installation, maintenance and repair of instruments and devices for measuring,regulationandcontrollingenergyperformanceofbuildings CCM 7.5. 364.858,95 1,34% Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y 0,94% E Installation, maintenance and repair of charging stations for electric vehiclesinbuildings(andparkingspacesattachedtobuildings) CCM 7.4. 25.347,80 0,09% Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y 0,06% E Constructionofnewbuildings CE 3.1./ CCM 7.1. 2.582.798,45 9,52% Y N/EL N/EL N/EL Y N/EL Y Y Y Y Y Y 16,57% CapEx of environmentally sustainable activities (Taxonomy-aligned) (A.1) 3.787.805,53 13,96% 13,96% 0,00% 0,00% 0,00% 0,00% 0,00% 19,37% Of which enabling 605.203,15 2,23% 2,23% 0,00% 0,00% 0,00% 0,00% 0,00% 1,59% Of which transitional 599.803,93 2,21% 2,21% 1,20% A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL Renovationofexistingbuildings CE 3.2./ CCM 7.2. 478.775,49 1,76% EL N/EL N/EL N/EL EL N/EL 7,07% Infrastructure for rail transport CCM 6.14. 4.130.676,32 15,22% EL N/EL N/EL N/EL N/EL N/EL 13,25% Constructionofnewbuildings CE 3.1./ CCM 7.1. 8.367.515,75 30,84% EL N/EL N/EL N/EL EL N/EL 35,47% Installation,maintenanceandrepairofenergyefciencyequipment CCM 7.3. 69.346,63 0,26% EL N/EL N/EL N/EL N/EL N/EL 0,00% CapEx of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2) 13.046.314,19 48,08% 48,08% 0,00% 0,00% 0,00% 32,60% 0,00% 67,30% A. CapEx of Taxonomy-eligible activities (A.1+A.2) 16.834.119,72 62,05% 62,05% 0,00% 0,00% 0,00% 44,33% 0,00% 86,66% B. TAXONOMY-NON-ELIGIBLE ACTIVITIES CapEx of Taxonomy-non-eligible activities 10.297.835,28 37,95% Total 27.131.955,00 100,00% Table 14: CAPEX eligibility and alignment by objective Proportion of CapEx / Total CapEx Taxonomy-aligned per objective Taxonomy-eligible per objective CCM 13,96% 62,05% CCA 0,00% 0,00% WTR 0,00% 0,00% CE 0,00% 44,33% PPC 0,00% 0,00% BIO 0,00% 0,00% Our ambitions and achievements Management report Sustainability statements Financial statements Message from the Chairman and CEO Table 15: OPEX eligibility and alignment FinancialyearN 2024 Substantialcontributioncriteria DNSHcriteria('DoesNotSignicantlyHarm') EconomicActivities(1) Code(2) OpEx(3) Proportion of OpEx,yearN(4) Climate Change Mitigation(5) Climate Change Adaptation(6) Water(7) Pollution(8) Circular Econo- my(9) Biodiversity(10) Climate Change Mitigation(11) Climate Change Adaptation(12) Water(13) Pollution(14) CircularEconomy (15) Biodiversity(16) Minimum Safe- guards(17) Proportion of Tax- onomy-aligned (A.1.)or-eligible (A.2.)OpEx,year N-1(18) Categoryena- blingactivity(19) Categorytransi- tionalactivity(20) eur % Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T A. TAXONOMY-ELIGIBLE ACTIVITIES A.1.Environmentallysustainableactivities(Taxonomy-aligned) OpEx of environmentally sustainable activities (Taxonomy-aligned) (A.1) 0,00 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% Of which enabling 0,00 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% Of which transitional 0,00 0,00% 0,00% 0,00% A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL Y/N OpExofTaxonomy-eligiblebutnotenvironmentallysustainable activities(notTaxonomy-alignedactivities)(A.2) 0,00 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% A.OpExofTaxonomy-eligibleactivities(A.1+A.2) 0,00 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% B.TAXONOMY-NON-ELIGIBLEACTIVITIES OpExofTaxonomy-non-eligibleactivities 2.761.658,00 100,00% Total 2.761.658,00 100,00% Table 16: OPEX eligibility and alignment by objective Proportion of OpEx / Total OpEx Taxonomy-aligned per objective Taxonomy-eligible per objective CCM 0,00% 0,00% CCA 0,00% 0,00% WTR 0,00% 0,00% CE 0,00% 0,00% PPC 0,00% 0,00% BIO 0,00% 0,00% Our ambitions and achievements Management report Sustainability statements Financial statements Message from the Chairman and CEO Annual report 2024 - CFE 96 2.1.8. Statement concerning activities involving the use of nuclear or fossil fuels In2024,CFEdidnotcarryoutanyactivitiesrelatedtotheuseofnuclearenergyorfossilfuels2024. Table 17 : Nuclear and fossil fuel activities Row Nuclear energy related activities YES / NO 1 Theundertakingcarriesout,fundsorhasexposurestoresearch,development,demonstrationanddeploymentofinnovative electricitygenerationfacilitiesthatproduceenergyfromnuclearprocesseswithminimalwastefromthefuelcycle. NO 2 The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to pro- duceelectricityorprocessheat,includingforthepurposesofdistrictheatingorindustrialprocessessuchashydrogenpro- duction,aswellastheirsafetyupgrades,usingbestavailabletechnologies. NO 3 Theundertakingcarriesout,fundsorhasexposurestosafeoperationofexistingnuclearinstallationsthatproduceelectricity orprocessheat,includingforthepurposesofdistrictheatingorindustrialprocessessuchashydrogenproductionfromnu- clearenergy,aswellastheirsafetyupgrades. NO Fossil gas related activities 4 Theundertakingcarriesout,fundsorhasexposurestoconstructionoroperationofelectricitygenerationfacilitiesthatpro- duceelectricityusingfossilgaseousfuels. NO 5 Theundertakingcarriesout,fundsorhasexposurestoconstruction,refurbishment,andoperationofcombinedheat/cooland power generation facilities using fossil gaseous fuels. NO 6 Theundertakingcarriesout,fundsorhasexposurestoconstruction,refurbishmentandoperationofheatgenerationfacilities that produce heat/cool using fossil gaseous fuels. NO 2.2. ESRS E1 : Climate change ReducingGHGemissionsandcombatingclimatechangeareimportantobjectivesfortheinternationalcommunity.TheParis Agreement’s1.5°Ctargetstatesthatglobalemissionsmustbesubstantiallyreducedby2030andbecomezeroby2050.InEurope, thisambitionissupportedbytheEuropeanGreenDeal. ReducingGHGemissions,bothinintensityandinabsoluteterms,hasbeenandremainsapriorityforCFE.CFEiscommittedtoim- plementing action plans to reduce these GHGs. Since2020,specicactionplanshavebeenputinplacetolimittheGroup’sdirectemissions(scope1and2).Thisappliesinparticu- lartomobilitymanagementandenergymanagementatsitesandheadquarters. Since2020,CFEhasbeenscreeningitsindirectemissions(scope3)toidentifythemainsourcesofemissionsandprioritiseaction planstotargetthesemainsources.AmoredetailedGHGProtocolanalysisofindirectemissionswascarriedoutin2024,conrming the actions taken since 2020. Implementingactionplanstoachieveourenvironmentalambitionsisacollectiveresponsibility.Everyplayer,fromtheworkerson constructionsitestosustainabilityofcers,projectdevelopers,designandmethodsdepartmentsandQHSEteams,playsacrucial role.Nevertheless,managementhasamajorresponsibilitytoensurethatactionplansareimplementedintheirBusinessUnits.To underlinetheimportanceoftheseESGobjectives,theachievementofenvironmentaltargetsisintegratedintotheirvariableremu- neration,includingshort-andlong-termbonuses.FurtherdetailsareavailableintheRemunerationreport. ESRS E1 GOV-3 13 2.2.1. SBM3:Materialimpacts,risksandopportunitiesandtheirinteractionwithstrategyandbusiness model Theconstructionsectorhasasignicantimpactongreenhousegas(GHG)emissions.Constructionactivitiesconsumelargequan- titiesofenergy,mainlyfromfossilfuels,toproducematerialssuchascement,steelandglass.Thesematerialsareresponsiblefor signicantCO2emissionsduringtheirmanufacture.Constructionsitesalsogeneratedirectemissionsthroughtheuseofmachinery andvehicles.Thebuildingsthemselves,onceconstructed,continuetocontributetoGHGemissionsthroughtheirenergyconsump- tionforheating,coolingandlighting.Finally,constructionanddemolitionwastemanagementaddsanotherlayerofemissions,in- creasingthesector’soverallcarbonfootprint. TheESRSthemeof“climatechangemitigation”ismaterialforCFEanditsvarioussubsidiaries,asGHGemissionscanhaveasignif- icantimpactonthegroup’sfutureresults,mainlyduetothenancialimpactoffuturecarbontaxes.Businessmodelsstillneedto evolve,butfacethefollowingchallenges:availabilityandscaling-upofnewtechnologies,supplychainsunabletosupportthisscal- ing-up,andcustomers’willingnessandabilitytoaccepttheseadditionalcosts. ClimatechangemitigationisthereforeapriorityissuefortheCFEgroup. ESRS E1 SBM-3 18 CFE’sactivities,whichincludetheconstructionofresidentialandnon-residentialbuildings,donotmakeasubstantialanddirect contributiontoclimatechangeadaptation.Thesetypesofprojectsfocusprimarilyoncreatinginfrastructuretomeetsociety’s needsintermsofwork,housingandeducation.Whilethesebuildingsmayincorporateelementsofsustainability,suchasenergy efciencyandtheuseofeco-friendlymaterials,theyarenotspecicallydesignedtosubstantiallymitigatetheimpactsofclimate Our ambitions and achievements Management report Sustainability statements Financial statementsMessage from the Chairman and CEO Annual report 2024 - CFE 97 changeonthecommunity,suchasextremeweathereventsorrisingsealevels.Consequently,althoughtheseprojectsareessential forurbanandsocialdevelopment,theirdirectcontributiontoclimatechangeadaptationremainslimited.AsCFEdoesnotactually holdanyrealestateinitsportfolio,thereisnorealnancialriskassociatedwithclimatechangeadaptation.Theabsenceofthese assetsmeansthatCFEisnotdirectlyexposedtothepotentialcostsassociatedwithupgradingorprotectinginfrastructureagainst climate impacts. ESRS E1 SBM-3 19c Although climate change mitigation is a material issue for CFE, involving the reduction of Scope 1 and 2 emissions as well as its en- ergyconsumption,thethemeofenergytransitionisnotconsideredamaterialsubject.ThisisbecauseScope3emissions,including embodiedandoperationalcarbon,aresignicantlyhigherthandirectemissions.Inotherwords,indirectemissionslinkedtothe materialsusedandbuildingoperationsaccountforamuchlargershareofCFE’stotalcarbonfootprint,sotheleverageeffectofthis energytransitionismuchlessrelevantthanmanagingScope3emissions.Forthisreason,CFEwillnotreportonESRSE1-5. Theassessmentofimpacts,risksandopportunitieslinkedtoclimatechangehasbeencarriedouttakingintoaccounttheGroup’s differentbusinesslines,aseachsegmentmaypresentspecicIROs.Aconsolidationexercisewasthencarriedoutasdescribedin chapter1.5oftheDMA.Thisanalysiswascarriedouttakingintoaccountdifferenttimehorizons(current,short-term,medium-term andlong-term).Ontheotherhand,theanticipatednancialeffectsofIROshavebeenomittedbyapplyingthephase-inprinciple. ESRS E1 SBM-3 19 a, b , ESRS E1 SBM-3 AR7b Although climate change is material for CFE, it does not constitute a risk requiring immediate and radical adaptation of the group’s businessmodel.Indeed,thecurrentmodelisalreadyinlinewiththestrategy,whichfocusesondesigninganddevelopingsustaina- blebuildings,intelligentindustryandinfrastructureforgreenenergyandmobility.Rather,it’satransitiontoincreasedactivityofthis kindinthefuture,andboththeteamsandthecompanyarereadyforit. ESRS E1 SBM-3 19 c, ESRS E1 SBM-3 AR 8b 2.2.2. E1.IRO-1:Descriptionoftheprocessestoidentifyandassessmaterialclimate-relatedimpacts, risks and opportunities CFE has assessed the list of ESRS themes in its DMA, including ESRS E1 climate change, ESRS E2 pollution, ESRS E3 water and marine re- sources,ESRSE4biodiversityandecosystems,andESRSE5resourceuseandcirculareconomy.OnthebasisoftheDMAcarriedout, onlyESRSE1climatechangeisidentiedasariskwithahighmaterialityofimpactandnancialimpact.Theprocessofidentifying impacts,risksandopportunitiesisdescribedinmoredetailinsection1.4.3relatingtoDMAinSustainabilityStatements.Asstipulated intheESRS,theDMAexercisecoverstheentirevaluechainandisassessedoverdifferenttimehorizons. ESRS E1.IRO-1 20 a,b,c, AR 9 et AR12a The main risks, opportunities and impacts are transition risks. These are detailed in chapter 1.5.2. Forclimaterisks,thephasing-inofprovisionsfortheyearending31December2024havebeenused.CFEhasdevelopedamethod- ologyforassessingclimaterisksandopportunities.Thisassessmentwillcoverbothphysicalandtransitionalrisksinitsownopera- tions,aswellasalongtheupstreamanddownstreamvaluechain(includingdetailedscenariosuggestionsandtimehorizonstobe coveredinshort-,medium-andlong-termscenarioanalysis). Phase in requirements for ESRS E1.IRO-1, AR 11 a, b, c & d, 21, AR 12 a, b, c & d, 21 et AR 15 AninitialanalysisindicatesthatnomajorphysicalriskshavebeenidentiedinconnectionwiththeGroup’sactivities.Thisanalysis conrmstheDMAresults. The assessment will therefore focus on transition risks. The results of this assessment could have an impact on the DMA exercise carried out. 2.2.3. E1-2 Climate change mitigation policies CFEhasdraftedapolicyentitled“ClimateChangePolicy”.Itdoesnotcoverclimatechangeadaptation,asthisthemehasnotbeen deemed material. ESRS E1-2 24, 25 ThispolicyappliestoalltheGroup’sactivitiesandisaddressedtoallGroupemployees.ItwasdraftedbytheGroup’sCSOandap- provedbytheExecutiveCommitteeandBoardofDirectors.ItisavailabletoemployeesviatheGroupintranet. Withthispolicy,CFEundertakesnotonlytomonitoritsGHGemissions,butalsotoimplementtheactionsnecessarytoachieveits ambitionsintermsofreducingtheseemissions. Our ambitions and achievements Management report Sustainability statements Financial statementsMessage from the Chairman and CEO Annual report 2024 - CFE 98 Toensurethequalityandcompletenessofthedatamonitored,thispolicyisaccompaniedbyaspecicmanualondatadenition andcollectionmethods.DataiscollectedbytheBusinessUnitsandconsolidatedbythecentralteamsinaccordancewithGHG protocol methods. ThispolicyalsoaddressestherolesandresponsibilitiesofthevariousBusinessUnitsindrawinguplocalactionplans.Itisalsobased onstandardsandcerticationsspecictothevariousbusinesses(ISO,CO2performancescale,etc.). CFEreviseditsdecarbonisationobjectivesin2024andnowaimstoreduceitsdirectemissions(scope1and2)by40%by2030com- paredwith2020emissions.Indirectemissions(scope3)needtobereducedby20%by2030,comparedwiththevaluesmeasured in 2024. ESRS E1-2 24 Thepathtodecarbonisationisacomplexone,astheconstructionsectorhasalong,fragmentedandinterdependentvaluechain. Ratherthansettingboldambitionswithoutconcreteactions,CFEbelievesinannualprogressbasedonoperationalexcellence, availabletechnologiesandinnovationefforts.ThegrowthinturnoverandCAPEXinlinewiththeEU’staxonomyisfurtherproofofthis commitment. Thereisclearlystillaneedtoimprovedatacollection,establishcomparablebaselinesforthesectorasawhole,andverifythefea- sibilityandavailabilityoftechnologiesthatcanactasleversfordecarbonisation.Asaresult,the2050transitionplanisstillunder development.Thistakesintoaccounttheevolutionofcurrenttechnologicallimitations,insufcientsectorinnovation,andtheoverall lackofvisibilityonthecommitmentsoftherestofthesector.Furthermore,Scope3emissionswereonlycalculatedthisyear,andstill havetheirlimitations,asalreadyhighlightedabove. Ontheotherhand,aGHGreductionplanfor2030hasbeenputinplace,demonstratingourdecarbonisationefforts.Thisplanis basedontheSBTiframework.Althoughnotyetformallyvalidated,CFEwilladheretotheSBTiframeworkassoonaspossible. ESRS E1-1 16a 2.2.4. E1-1,E1-3etE1-4:Transitionplans,decarbonisationlevers,targetsandresourcesinrelationtocli- mate change policies Toremainintouchwiththeeldandmarketwhileguaranteeingaglobalandintegratedstrategicapproachdespiteitsdecentral- isedbusinessmodel,CFEhasputinplaceclearESGgovernance. Theoverallstrategy,long-termvisionandtargetsettingistheresponsibilityofCFE’sExecutiveCommittee.Inparticular,thismeans thattheGroup’soverallGHGemissionreductiontargetsfor2030and2050andtherelatedtransitionplans(inlinewiththeCSRD) aretheresponsibilityoftheExecutiveCommittee. Ontheotherhand,eachBusinessUnitdevelopsitsownspecicreductionactionplans,takingintoaccountitsownbusinessandoper- atingmodel.TherelevanceoftheseplansandthepossibilityofcarryingoutcollectiveactionsareassessedatSustainabilityBoards. AsclimatechangeandthenegativeimpactofGHGemissionshavebeenidentiedasmaterialissuesatGrouplevel,theseaspects areincludedintheannualESGreviewatBoardlevel.ChangesinindicatorsandtargetsarealsopresentedannuallytotheAudit Committee and the Board of Directors. ESRS E1-1, 16 h & i In2024,100%ofScope1and2GHGemissionsaresupportedbyaGHGreductionplanfor2030.For2050,nocommitmenthasbeen madeforthereasonsexplainedinsection2.2.3.Consequently,noScope1and2GHGemissionsarecurrentlycoveredbyatransition planforthishorizon.Thisplaniscurrentlyunderdevelopment. 100%ofScope1and2GHGemissionshavereductiontargetssetfor2030(short-term).ThesetargetsarealignedwithSBTiand thereforecompatiblewiththeParisagreementstolimitglobalwarmingto1.5°Cintermsofreductionambition,althoughtheyhave notyetbeenformallyvalidatedbySBTi. ESRS E1-4, 34 e & 16 a ForScope3GHGemissions,themostsignicantemissioncategoriesweremappedin2024.Emissionsrepresentinglessthan1%of thetotalareconsiderednon-materialandwillnotbereported.Aconsultantcarriedoutanaudittoverifythatnomaterialaspect ofthescope3emissionscalculationhadbeenoverlooked,andthatthecalculationmethodologywasindeedcorrect.Thedata collectedin2024isconsideredareferencevalueforsettingthebasisforreductioneffortsin2030.Scope3emissionscomemainly fromtheemissionscategorypurchasesofgoodsandservices,andarebasedonexpendituredataforthematerialswiththehigh- estemissionsforthebusinesssector(concrete,steel,specialtechniques,façadeelements).Thiscalculationmethodwillbesubject tosubsequentadjustmentstoimproveaccuracy.Whererelevanttothecompany,moregranulardatawillbecollectedbasedon activitydata,torenecalculationsandprovidebetterinformationonactionstobetaken.Thiswillbeanongoingprocessforyears to come. Our ambitions and achievements Management report Sustainability statements Financial statementsMessage from the Chairman and CEO Annual report 2024 - CFE 99 Scope3GHGemissionshavereductiontargetssetfor2030.Althoughthesetargetsarecompatiblewiththereductionambitionsof theParisagreements,theyarenotformallyvalidatedbytheSBTi.Thesetargetswillbedeterminedaccordingtotheemissioninten- sityofthevariousmaterials. ESRS E1-4, 34 e & 16 a,g Table 18 : Percentage of GHG emissions covered by a reduction target and/or plan Datapoints 2024 Reference GHG emissions for scope 1 and 2 PercentageofScope1and2GHGemissionssupportedbyaGHGreductionplanfor2030 100% ESRS E1-1 Percentageofscope1and2GHGemissionscoveredbyatransitionplaninlinewiththeESRS 0% ESRS E1-17 Percentageofscope1and2GHGemissionscoveredbyareductiontargetfor2030 100% ESRS E1-4 Percentageofscope1and2GHGemissionscoveredbyareductiontargetinlinewiththeParisagreements 100% ESRS E1-1 16 a GHG emissions for scope 3 Percentageofscope3GHGemissionscoveredbyareductionplanfor2030 100% ESRS E1-1 Percentageofscope3GHGemissionscoveredbyatransitionplaninlinewiththeESRS 0% ESRS E1-17 Percentageofscope3GHGemissionscoveredbyareductiontargetfor2030 100% ESRS E1-4 Percentageofscope3GHGemissionscoveredbyareductiontargetinlinewiththeParisagreements 0% ESRS E1-1 16 a 2.2.4.1 Transitionplan,objectivesandprogress Directemissions:Scope1and2 Asof2021,CFEiscommittedtoreducingitsGHGemissionsintensityby40%by2030comparedwith2020’svalues.In2024,CFEreviewed itsobjectivesbycommittingtoreduceitsabsoluteGHGemissionsby40%by2030comparedwith2020’svalues.Thistargetiscom- patiblewiththeParisAgreementsandisinlinewiththeSBTi(buthasnotbeenofciallyvalidatedbytheSBTi). ESRS E1-4 33 Scope1and2emissionsmainlyconcernproductionactivities,i.e.Construction&RenovationandMultitechnics.Itisthereforein theseactivitiesthatactionsaimedatlimitingGHGemissionsaremainlydeployed.Ontheotherhand,effortsrelatingtotheeet (companycars)concernalltheGroup’sactivities. ESRS E1-4 34b Lever1-Mobilityandlogistics Therstleveractivatedconcernsmobility.Asfarascompanycarsareconcerned,amobilityplanthatbenetsworkershasbeen rolledoutacrosstheGrouptoencouragetheadoptionofalternativemodesoftransportsuchascyclingorpublictransport.Electric carsarewidelyencouraged.Tofacilitateadoption,chargingstationsareinstalledatmostoftheGroup’sworksites.Thellrateof thevansaswellastheirroutesarebeingoptimised,andtestsarebeingcarriedoutwithhybridandelectricvans.Finally,trucksand otherheavyconstructionequipmentaregraduallybeingreplacedbylesspollutingvehicles.Mobility-relatedactionsalonerepre- sentapotential28%reductionintotalGHGscope1and2emissionsby2030. Lever2-Siteenergyconsumption AsecondtoolforlimitingGHGproductionistoreduceenergyconsumptionforsiteinstallations.Onsite,wemonitorenergycon- sumptionandcannowoptimiseconsumptionbytrackingdownabnormalover-consumptioninparticular.Understandingofthis consumptionissupportedbyimprovementsintheinsulationofthebuildingsitecontainers,aswellasvariouscorrectivemeasures. Solarpanelsarealsoinstalledonmanyconstructionsites.Thepositioningofthesiteinstallationsthereforealsotakesintoaccount theoptimisationofsunlightforthesitecabins.Ingeneral,theuseofgreenelectricityisrecommendedonconstructionsiteswhen- everpossible.Thereductionpotentialoftheseactionsisoftheorderof15%by2030. Particularattentionispaidtogeneratorsusedforsitestart-uporasoccasionalback-upforwinterheatingneeds.Thesegenerators consumelargeamountsofenergy.Pilotstudiesarebeingcarriedoutwithbatteriesorhydrogengenerators.Thereductionpotential hasnotyetbeenassessed,ascurrenttechnologiesarenotyetefcient. Lever3-Ofceenergyconsumption ForexistingheadofceswhereCFEownsthepremises,energyauditshavebeencarriedoutaswellasrenovationstokeepenergy consumptiontoaminimum.Solarpanelsandenergymanagementsystemshavealsobeeninstalled.Finally,BPC,BPIRealEstate, CLE,VanLaere,VMAandCFE’sheadofcehavemovedintonewbuildingsdesignedandbuiltbythegroup’sentities,allofwhich areverylow-energybuildings.CFE’snewWoodHubheadquartersisparticularlyexemplaryintermsofenergyconsumption.The buildingisheatedandcooledbygeothermalenergyandheatpumps,andisequippedwith300solarpanels.ThismakesWoodHub almostenergyindependent,withprimaryenergyconsumptionofnomorethan8.59kWhperm².Comparedwiththecurrentaver- Our ambitions and achievements Management report Sustainability statements Financial statementsMessage from the Chairman and CEO Annual report 2024 - CFE 100 ageof180kWh/m²/yearforofcebuildings,WoodHubstandsoutasanexceptionalNZEB(NearlyZeroEnergyBuilding),designedfor thefuture.Thereductionpotentialoftheseactionsisfairlylimited(lessthan1%),astotalenergyconsumptioninofcesisverylow comparedwithconstructionsites.Nevertheless,theseactionsarenecessarytobeconsistentwithotheractionsandtoestablisha real corporate culture around the challenges of climate change. Although we have taken advantage of most of the levers for reducing GHG emissions from scopes 1 and 2, CFE continues to seek furtheroptimisationofitsenergyconsumption.Thecompanyregularlytestsnewpilotprojectsonitsworksites,andcloselymonitors technologicaladvancesandinnovationsinthiseld.Particularattentionispaidtoconstructionsitegenerators,forwhichcurrent technologyunfortunatelydoesnotyetmeetmarketexpectations. ESRS E1-3 29a, ESRS E1-3 AR21, ESRS E1-1 14, 16b,j, ESRS E1-4 34f, 16b Toensurethatthesevariousmeasuresarefollowedup,andthatworksiteschoosethesolutionsbestsuitedtotheirsituation,CFE hascompiledallsolutionsthatbringgoodresultsinahandbookcalledthe‘Greenbook’. By2024,CFEhasalreadyachievedanabsolutereductionof25%intotalscope1and2comparedwiththe2020referencevalues. Theexpectedresultsfor2024weretoachievea16%reductionon2020values.Theseexcellentresultsaredueinparticulartothe rapidadoptionofon-siteenergyoptimisationmethodsandaneffectiveeetgreeningpolicy. ESRS E1-3 29 b Table 19 : Scope 1 and 2 GHG emissions by source Scope 1 and 2 results of actions taken Unit 2020 Reference 2023 N-1 2024 N Improvement on N-1 Improvement on reference year Scope 1 tCO2eq 15,812.17 13,974.47 11,235.58 -20% -29% Fleet tCO2eq 11,713.19 9,821.61 8,329.56 -15% -29% Fuel tCO2eq 3,319.34 3,078.64 1,966.17 -36% -41% Gas tCO2eq 779.64 992.62 899.72 -9% 15% Refrigerants tCO2eq 0.00 81.60 40.13 -51% Scope 2 tCO2eq 1,872.00 1,412.11 1,954.99 38% 4% Electricity tCO2eq 1,872.00 1,342.15 1,742.15 30% -7% Electricityfortheeet tCO2eq 0.00 69,96 212.84 204% Total scope 1 and 2 tCO2eq 17,684.17 15,386.58 13,190.57 -14% -25% In the previous year’s report (2023), GHG emissions linked to electric vehicle charging were erroneously calculated in scope 1 instead of scope 2, which explains the minimal deviation in scope 1 and 2 values for 2023 (67.69 tCO2eq). However, total Scope 1 and 2 emissions for 2023 remain unchanged ESRS E1-3 29 b, ESRS E1-4 34 a,b Indirectemissions:Scope3 In2024,CFEcarriedoutacompleteanalysisofitsindirectemissionsaccordingtotheGHGProtocol.Thisanalysishighlightedthe materialcategoriesofScope3GHGemissions,whichare“purchasesofgoodsandservices”,whichaccountsfor92%ofemissions, “useofproductssold”,whichaccountsfor7%ofemissions,andtoalesserextent“goodsandequipment”,whichaccountsfor1%of emissions.Inthe“purchasesofgoodsandservices”category,thisanalysisshowsthatasmallcategoryofmaterialsisresponsible forthemajorityoftheseemissions.Theseincludeconcrete,steel,façadeelementsand,toalesserextent,technicalbuildinginstal- lationssuchasHVAC,piping,cabling,etc.Takingintoaccountthisanalysis,aswellascurrenttechnologies,informationandcon- structionmethods,CFEhasdeneditsobjectivesfor2030.CFEhascarriedoutanin-depthstudyofthestatedobjectivesofitsvalue chain, in particular those of suppliers of materials with a high impact on GHG emissions. Based on this information, CFE has set itself thetargetofreducingitsScope3emissionsby20%by2030,basedon2024values.Adetailedreductionplanhasyettobedrawn up,requiringamoregranularanalysisofthedata.Specictargetsforthe“useofproductssold”categorywillalsobedenedfrom 2025.The20%reductiontargetappliestotheentireCFEgroup. ESRS E1-3 AR21, ESRS E1-4 33, ESRS E1-4 34b As2024isthereferenceyear,sofartherearenomeasurableresultsfromtheactionsundertaken. ESRS E1-3 29 b Lever1-Sustainablesuppliersandmaterials The main lever for reducing scope 3 GHGs is therefore the commitment of suppliers who themselves have targets and reduction plans in line with the Paris agreements. Alongside this lever, CFE also wants to take a pro-active approach. Asadeveloper,BPIRealEstateiscommittedtodevelopingsustainableprojectsandlimitingboththelevelofembodiedcarbonand Our ambitions and achievements Management report Sustainability statements Financial statementsMessage from the Chairman and CEO Annual report 2024 - CFE 101 thecarboncontentofitsbuildings.BPIRealEstateusesLifeCycleAssessment(LCA)inaccordancewithEN19578andreliesonthe taxonomy’scriteriawhereverpossible. AsMultitechnicscontractorsandcompanies,CFEactivelyproposessustainableandinnovativealternativesatthetenderstageor evenduringprojectexecution.Thesemaybereusedmaterialalternatives,bio-sourcedmaterials,orothers. Acentralisedcentreofexpertisesupportseldteamsindevelopingthesesustainablevariantsandsolutions,andalsocentralises bestpracticesinadatabaseavailabletoallGroupemployees. CFE is also involved in innovative pilot projects, such as the Buildwise project to optimise site logistics through the use of consolida- tion centres with Buildwise. Lever2-Stimulatingchangeinthesector CFEparticipatesin,and/orchairs,numeroussector-specicworkinggroupsaimedatimplementinglarge-scalesustainableand innovativesolutions.Inparticular,thisconcernsthecirculareconomy,theadoptionofthe“CO2performanceladder”,therevision ofpublicspecications,etc.CFEisalsoparticularlyactiveintheBelgianAllianceforSustainableConstruction(BA4SC),whichbrings togetherrepresentativesofthevariousprofessionalassociationsintheconstructionsectoraroundthethemesofsustainabilityand climate change in particular. Lever3-Opportunitiesinthebusinessmodel CFEhasalsolaunchedthreenewBusinessUnitsaimedatbringinganew,moresustainableapproachtoconstructionprojects.They are Wood shapers, Vmanager and Pulse. WoodShapers,asubsidiaryoftheCFEgroup,specialisesinsustainableconstructionusingmainlywoodandotherbio-sourced materials.Withitsfocusonreducingcarbonfootprintsandusingrecyclablematerials,WoodShaperscontributestogreenercon- struction.Furthermore,thespacescreatedbythecompanyaredesignedtoenhancethewell-beingofoccupantsthroughhealthy materials and safer working environments. VMAoffersESCOservicesthatprovideguaranteedenergyperformancetoclientswhosodesire.In2020,VMAlaunchedVmanager, apieceofsoftwareandanApptargetingenergysavings,energyowmanagementand,ingeneral,constructiontechnologyman- agement.Thisinnovativetoolfacilitatesintelligentandsustainablemanagementofnewandrenovatedbuildingsbycombining VMA’stechnicalexpertise,intensivemonitoringandtoolstosuperviseandcontroltheiractualenergyperformance.Thedevelop- mentofVmanagercombinedwiththeknow-howofVMAmakesitpossibletoofferaglobalsolutionforenergymanagement. Finally,Pulsespecialisesinpropertyredevelopment,offeringanintegratedsolutiontoimproveenergyefciency,reducecarbon emissionsandincreaseoccupantcomfort.Thecompanyoffersservicesrangingfromenergyandenvironmentalauditstocom- pletebuildingrenovationandtheinstallationofinnovativetechnologies.Pulseaimstoincreasethevalueofitsclients’realestate assets while meeting environmental requirements and guaranteeing an optimal return on investment. ESRS E1-3 29a, ESRS E1-1 14, 16b,j SummarytableofGHGreductiontargets Table 20: GHG reduction targets Specic CO 2 reduction targets Reference year Reference value target year for the objective value 2024 reduction in 2024 compared with the reference year expected reduction in target year since refer- ence year tCO 2 eq tCO 2 eq % tCO 2 eq % tCO 2 eq Scope1-2marketbased 2020 17,683.79 2030 13,190.57 -25% -4,493.22 -40% -7,073.52 Scope 3 2024 482,306.42 2030 482,306.42 0% 0.00 -20% -96,461.28 ESRS E1-4 34 a,b Noteonreferenceselection 2020and2024havebeenchosenasthereferenceyearsforscopes1&2andscope3respectively,astheycorrespondtothetime whenspecicactionplanshavebeenputinplacetoreduceGHGemissions.Therearenoparticularfactorstohighlightoverthese yearsthatwouldmeantheycannotbeconsideredrepresentative. ESRS E1-4 AR 25 a,b 2.2.4.2 Financialresourcessupportingtheclimatechangemitigationtransitionplan Seealsotheinformationfoundinthefinancialreportonpage140:‘AdditionalinformationregardingtheGroup’senvironmental im-pact.’ Directemissions:Scope1and2 Lever1:Mobilityandlogistics Theeetofcarsandequipmentisregularlybeingreplacedbyelectricvehicles,forexample.CFEhasnotidentiedanyassets whoseeconomiclifetimeshouldbereduced.Thesearemainlyleasingcontractsvaluedunderproperty,plantandequipment.The Our ambitions and achievements Management report Sustainability statements Financial statementsMessage from the Chairman and CEO Annual report 2024 - CFE 102 otheractionsconcernraisingawarenessorswitchingtoalternativemeansoftransport,whichareincludedintheGroup’smobility plan.Thisplantakesintoaccountallaspectsofmobility(TCO,taxes,etc.)anddoesnotinvolveanyparticularcostsorinvestments. Levers2and3:Energyconsumptiononsiteandintheofces Tolimitthis,on-siteconsumptionismonitoreddailytopreventenergywastage,solarpanelsarebeinginstalledonthesitebarracks andmoreefcientgeneratorsarebeingused.Therearenomajorcostsassociatedwiththeseactions,asthereductionincon- sumptiongenerallyoffsetstheinvestmentinequipment.Theseamountsaremarginal.Atthesametime,aswitchtogreenenergy hasalreadybeeninplacesince2020. TherelocationofCFEanditssubsidiariesBPC,BPI,CLE,VMAandVanLaeretonewbuildingsthatconsumeverylittleenergy(notably WoodHub),aswellastherenovationofothergroupheadquarters,hasalsosignicantlyreducedthegroup’senergyconsumption. CFEhasnotidentiedanyassetswhoseeconomiclifetimeshouldbereduced. NoteonCAPEXalignedwithEuropeantaxonomy Capexplaysanessentialroleinthedevelopmentofsustainableactivities.Theserelatetoequipmentandmachinery,CFE’sowneet and,toalesserextent,CFE’sofcesandproductionsites.In2024,atotalofEUR27millionwasinvestedinthesecategories,13.97%of whichwasdirectlylinkedtosustainableprojects,inaccordancewiththeEUtaxonomy. Indirectemissions:Scope3 Atthisstage,itistooearlytodrawconclusionsontheresourcessupportingthetransitionplanforScope3emissions.It’sacomplex subjectbecauseitconcernstheentirevaluechain.Amoredetailedanalysiswillbecarriedoutin2025. Nevertheless, the initial trends are as follows: TheCFEgroup’sactivitieswillbedevelopedtoreducecostsintermsofCO2emissions,particularlyintermsofthechoiceofmateri- als and transporting materials and waste in the Construction & Renovation and Multitechnics segments. It is also expected that the proportionofrenovationandenergy-efciencyrenovationworkwillincreaseastheregulatoryframeworkevolves. Thenancialimpactofthechoiceofmaterialsorthedevelopmentofnewapproachestotransportisestimatedattheproject submissionstageandthenincorporatedintothecommercialoffersubmittedtothecustomer.Thisstudyiscarriedoutonapro- ject-by-projectbasis,somarginsarere-evaluatedatthestartofeachneworder.Ontheotherhand,aresidualriskisthecostofthe inefcienciesinherentinlearningnewproductiontechniquesornewapproachestologistics.Thisisbecauseitisnotalwayspossi- bletoanticipate(bothatcontractuallevelandwhenpreparingforprojectimplementation)andquantifywithsufcientaccuracy. Therealestatebusinesssystematicallyincludessolutionsforreducingtheenergyconsumptionofbuildingsduringthedevelop- mentofnewprojects.Inaddition,renovationprojectsforexistingbuildingsarebecomingincreasinglycommon.Oncethelandhas beenacquiredtodevelopaproject,afeasibilitystudyiscarriedout.Thecostpriceoftheprojectisestimatedandincorporatedinto the commercial offer made to customers. Specicframework Toensurethattheseactionsareimplemented,CFEhasstrengtheneditsmanagementteamwithlocalSustainabilityOfcerswork- inginthevariousBusinessUnits,aswellasateamworkingattheholdingcompanytoconsolidateinformationandsupportlocal teams.Thecostofthisspecicframeworkisincludedin“operatingcosts”aspresentedintheFinancialReportonpage128.Further detailswillbeprovidedfrom2025onwards. ESRS E1-3 29 ci, ESRS E1-1 16c Theresourceslinkedtothetransitionplanwillbereassessedingreaterdetailin2025toanalysethecostslinkedtothescope3re- ductionplan,oncethishasbeennalised. Similarly,ananalysiswillbemadetotakeaccountofthe2050targetsandthecorrespondingreductionplanonceithasbeennal- ised. Nosignicantcapitalinvestmentisplannedforeconomicactivitiesrelatedtothermalcoal,nuclearpowerorfossilfuel. ESRS E1-1 16 f; ESRS E1-3 29 c ii,16 c & c iii,16 c 2.2.4.3RisksofblockingGHGemissions Capitalexpenditure(CAPEX)hasbeenassessedandtheblockingriskhasnotbeenconsideredsignicant. ESRS E1-1 16 d 2.2.4.4EUbenchmarksalignedwithParisagreements NeitherCFEnoranyofitssubsidiariesareexcludedfromtheEUbenchmarksalignedwiththeParisagreements. ESRS E1-1 16 g Our ambitions and achievements Management report Sustainability statements Financial statementsMessage from the Chairman and CEO Annual report 2024 - CFE 103 2.2.5. E1-6: Gross Scopes 1, 2, 3 and Total GHG emissions 2.2.5.1 TotalGHGfootprint GrossgreenhousegasemissionsarecalculatedinaccordancewiththeGHGprotocol.Thismeansthattheyarenotlimitedtocar- bondioxide(CO2)alone,butalsoincludeothergreenhousegasessuchasmethane(CH 4 ),nitrousoxide(N 2 O),hydrouorocarbons (HFCs),peruorocarbons(PFCs),sulphurhexauoride(SF 6 )andnitrogentriuoride(NF 3 ). ESRS E1-6 AR 39b FortheCFEgroup,thelimitsofGHGreportingundernancial(accounting)andoperationalcontrolarethesame.Thisisduetothe factthatallBusinessUnitsarefullyintegratedintotheconsolidatednancialstatements.Projectsunderjointcontrol(jointventures orjointoperations)areaccountedforaccordingtoCFE’sshare(pro-rata)intheproject.Thisintegratedapproachensuresthat greenhousegas(GHG)emissionsreportingisconsistentwithnancialreporting. ESRS E1-6 50 Table 21 : GHG emissions by scope Datapoints Unit 2020 reference year 2022 2023 2024 Reference GHG emissions for scope 1 Total gross Scope 1 GHG emissions tCO2eq 15,812.17 13,914.14 13,974.48 11,235.58 ESRS E1-6 48 a Percentage of scope 1 GHG emissions from regulated emissions trading schemes % 0% 0% 0% 0% ESRS E1-6 48 b GHG emissions for scope 2 Totalgrossscope2lease-basedGHGemissions tCO2eq NC NC NC 3.520,07 ESRS E1-6 49 a, 52 a Totalgrossscope2market-basedGHGemissions tCO2eq 1.872.00 1,394.96 1,412.11 1,954.99 ESRS E1-6 49 b, 52 b Signicant GHG emissions for scope 3 Total gross indirect scope 3 GHG emissions tCO2eq NC NC NC 482,306.42 ESRS E1-6 51 Category1.Purchasedgoodsandservices tCO2eq NC NC NC 445,204.25 Category2.Capitalgoods tCO2eq NC NC NC 4,968.62 Category3.Fuelandenergy-relatedactivities tCO2eq NC NC NC Non material Category4.Upstreamtransportationanddistribution tCO2eq NC NC NC Included in Category1 Category5.Wastegeneratedinoperations tCO2eq NC NC NC Non material Category6.Businesstravel tCO2eq NC NC NC Non material Category7.Employeecommuting tCO2eq NC NC NC Non material Category8.Upstreamleasedassets tCO2eq NC NC NC Notapplicable Category9.Downstreamtransportationanddistri- bution tCO2eq NC NC NC Notapplicable Category10.Processingofsoldproducts tCO2eq NC NC NC Notapplicable Category11.Useofsoldproducts tCO2eq NC NC NC 32,133.75 Category12.End-of-lifetreatmentofsoldproducts tCO2eq NC NC NC Included in Category1 Category13.Downstreamleasedassets tCO2eq NC NC NC Notapplicable Category14.Franchises tCO2eq NC NC NC Notapplicable Category15.Investments tCO2eq NC NC NC Non material TotalGHGemissionsforscope1-2-3locationbased tCO2eq NC NC NC 497,062.07 ESRS E1-6 44, 52 a TotalGHGemissionsforscope1-2-3marketbased tCO2eq NC NC NC 495,496.99 ESRSE1-644,52b Our ambitions and achievements Management report Sustainability statements Financial statementsMessage from the Chairman and CEO Annual report 2024 - CFE 104 Datapoints Unit 2020 reference year 2022 2023 2024 Reference GHG emissions outside scope 1-2-3 Directbiogeniccarbonemissions(Scope1-2-3) NC NC NC Notapplicable ESRS E1-6 AR 43c, 45e, 46j NC means not considered ESRS E1-6 44, 46d ; ESRS E1-6 48 a,b, 49 a,b, 52 a,b, 51, AR43c, AR45e, AR46j Table 22 : Désagrégation des émissions de GES par segment d’activité Disaggregation of 2024 GHG emissions by business segment Unit Construction and Renovation segment Real Estate Develop- ment segment Multitechnics segment Investment and Holdings segment Total gross GHG emissions for scope1and2marketbased tCO2eq 6,530.58 53.81 6,518.67 87.51 TotalsignicantgrossScope3GHG emissions tCO2eq 337,228.42 36,513.53 108,564.46 Non-material TotalGHGemissionsforscope 1-2-3marketbased tCO2eq 343,759.00 36,567.34 115,083.13 Non-material ESRS E1-6 AR 41 Scope1–directemissions Direct emissions are reported according to the GHG protocol and are calculated for all Group activities. The Holdings and Invest- mentsegment,ofwhichCFEdoesnotexerciseexclusivecontrol,onlytakesintoaccountemissionslinkedtotheheadofce.Emis- sionscomemainlyfromtheeet(cars,vansandtrucks)andenergy(gasandfueloil)usedonconstructionsitesandattheGroup’s various headquarters. Theeetaloneaccountsfor74%oftheseemissions. TheemissionfactorsusedtocalculateScope1directemissionsaretakenfromthedatabasewww.CO2emissiefactoren.be. This databaseisregularlyupdated,andthefactorstakenintoaccountrelatetotheyear2024. ESRS E1-6 AR39 b Theaccuracylevelis100%basedonprimarydata. ESRS 2 BP-2 10 c Scope2–indirectemissions Scope 2 emissions, as reported according to the GHG protocol, are calculated for all group activities, with the exception of the In- vestmentsandHoldingssegment,forwhichCFEdoesnothaveoperationalmanagement.TheyincludeindirectGHGemissions mainlyarisingfromtheproductionofelectricitypurchasedandconsumedbyCFEanditssubsidiaries.Scope2emissionsbasedon locationarecalculatedbymultiplyingpurchasedelectricityvolumesbytheemissionfactorsspecictoeachcountry.Tocalculate Scope2greenhousegasemissionsusingthemarket-basedapproach,CFEreliesongreenelectricitycontractsasthecontractual instrumentsfortheelectricitypurchased.Intotal,CFE’scommitmentisreectedinthefactthat73%ofthekWhpurchasedandcon- sumedusesgreenelectricity.Thispercentageofgreenelectricitycorrespondsfullytocombinedcontractualinstruments. Percentageofcontractualinstrumentsusedforthesaleandpurchaseofenergygroupedwithattributesconcerningenergygener- ation in relation to Scope 2 GHG emissions. 73% PercentageofcontractualinstrumentsusedforthesaleandpurchaseofenergyattributeclaimsnotgroupedinrelationtoScope2 GHG emissions. 0% ESRS E1-6 45d TheemissionfactorsusedtocalculateemissionsfromelectricityusedinBelgiumcomefromthewww.CO2emissiefactoren.be data- baseandfromwww.aib-net.org.TheemissionfactorsusedtocalculateemissionsfromtheenergymixinPoland,Luxembourgand Germanycomefromthewww.aib-net.orgdatabase.Finally,theemissionfactorsusedtocalculateemissionsfromlocation-based electricityinPoland,LuxembourgandGermanycomefromtheStatistadatabase.Thesedatabasesareregularlyupdated,andthe factorstakenintoaccountrelatetotheyear2024,orthemostrecentvaluesifthosefor2024arenotavailable. ESRS E1-6 AR39b Theaccuracylevelisestimatedat100%basedonprimarydata. ESRS 2 BP-2 10 c Our ambitions and achievements Management report Sustainability statements Financial statementsMessage from the Chairman and CEO Annual report 2024 - CFE 105 Scope3–indirectemissions Scope3emissionsarereportedaccordingtotheGHGprotocol,withtheScope3inventorydividedinto15categories. CFEplanstograduallyimprovetheaccuracyofthevaluesreportedforScope3.2024isconsideredareferenceyearfordetermin- ingabasevalueonwhichCFEcansetitsdecarbonisationtargets.In2024,CFEwillonlyreportonthosecategoriesofscope3that arematerial,i.e.whosevalueisgreaterthan1%ofthetotalvalueofscope3. Thecalculationmethodusedin2024meansthatthecategories‘Upstreamtransportationanddistribution’and‘end-of-lifetreat- mentofsoldproducts’arealreadyincludedinthe‘Purchasedgoodsandservices’category.Thisisduetothefactthatalmostall theemissionfactorsusedincategory1concernfullEPDsintegratingtheendoftheproductioncycleandtransportationofproducts. Thismethodologyisappliedtoavoiddoublecounting.Nextyearthisgurewillbedisaggregatedasfaraspossibletoreectacor- rectallocation,inordertobefullyalignedwiththeGHGProtocol. ESRS E1-6 AR 46 i, 46 h Thefollowingrelevantcategorieshavebeenidentiedatthisstageasmaterialinlinewiththemethodsusedtoestimateemissions: • Category1:Purchasedgoodsandservices:Thiscategorymainlyconcernsemissionslinkedtothemanufactureanduseof materialsinprojectscarriedoutbytheGroup.In2024,thecalculationmethodusedisasfollows.CFEhaslistedthetypesof materials which, according to recent studies in the sector, account for the largest share of emissions linked to their production (around80%).CFEtheninventoriedalltheexpenseslinkedtothesematerialsandservices.Finally,theselectedexpenditureis multipliedbythecorrespondinggenericemissionfactors.TheseemissionfactorsaretakenfromgenericEPDs. • Category2:Capitalgoods:ThestartingpointforthiscategoryistheCFEbalancesheet.Capitalgoodsareclassiedunder ‘property,plantandequipment’.Thissectioncanbedividedintothefollowingcategories:•Land-Buildings-Equipment-Vehi- cles.EachofthesecategoriesisassociatedwithaCAPEXvalue,whichismultipliedbyacorrespondinggenericemissionfactor. These emission factors are taken from generic EPDs. • Category11:Useofsoldproducts:Thisconcernsenergyconsumptionforthenext50yearsinbuildingsdevelopedbyBPIReal Estate,andinbuildingsforwhichanESCO-typecontracthasbeensignedwithVmanager.Thebasisforcalculatingscope3is directlylinkedtotheprovisionalEPBofthebuildingsunderconstruction. Non-materialcategories:3.Fuelandenergy-relatedactivities,5.Wastegeneratedinoperations,6.Businesstravel,7.Employee commuting, 15. Investments. Categoriesaccountedforelsewhere:4.Upstreamtransportationanddistributionisincludedincategory1.Purchasedgoodsand services,12.End-of-lifetreatmentofsoldproductsisrecordedincategory1.Purshasedgoodsandservices CategoriesthatdonotapplytoCFEactivities:8.Upstreamleasedassets,9.Downstreamtransportationanddistribution,10.Process- ing of sold products, 13. Downstream leased assets and 14. Franchises. ESRS E1-6, AR 46 i TheScope3guresdisclosedshouldbeconsideredasinitialestimates,mainlybasedonexpendituredataorprovisionalEPB.This resultsin0%primarydata.Theseestimatesaresubjecttosubsequentadjustments.Moregranularactivitydatawillbeimplemented overthecomingyears. ESRS 2 BP-2 10 c, E1-6, AR 46 g Theconversionfactorsusedforcategories1and2comeeitherfromgenericEPDs,orfrommaterial-specicdatabases.Theseare ADEME,INIESandClimatiq.Forconcretematerials,theEPDsusedcomefromFedbeton.Forcategory11,theconversionfactorsused arethesameasthoseusedtocalculatelocationbasedonscopes1and2. ESRS E1-6 AR39 b Scope3emissionsarecalculatedandreportedforthersttimein2024.Therearenochangesinscopeormethodtoreportfor Scope1and2emissions.Scope1,2and3emissionsarepresentedforthersttimein2024,distinguishingbetween“market-based” and“location-based”values.Inthepast,onlymarket-basedvalueswerereported.Therearenoeventstoreportthatcouldhavehad asignicantimpactonthevaluesreported. ESRS E1-6 47, 42c 2.2.5.2 GHGintensitybasedonnetrevenues CarbonintensityiscalculatedbydividingthequantityofCO2producedbytheconsolidatedturnoverofthepastyearforallCFE andsubsidiaryactivities. ESRS E1-6 53, 55 & AR55 Thiscalculationmethoddiffersfromthatusedinpreviousyears.Therelativeemissionspreviouslyreportedwerecalculatedby Our ambitions and achievements Management report Sustainability statements Financial statementsMessage from the Chairman and CEO Annual report 2024 - CFE 106 takingintoaccountonlydirectemissionsfromScope1andindirectemissionsfromScope2,aswellasturnoverfrom“productive” activities,i.e.thoseresponsiblefortheseemissions(Construction&RenovationandMultitechnicssegmentsonly).Fromthisyear onwards, indirect scope 3 emissions are also taken into account. It is therefore more consistent to use consolidated turnover as the divisor.Thisvalueisidenticaltotheturnovergureinthenancialstatement. Table 23 : GHG emissions intensity Datapoints 2024 Reference Intensity of Scope 1 and 2 GHG emissions by net income Location-based(tCO2eq/M€) 12.48 Marketbased(tCO2eq/M€) 11.16 Intensity of Scope 1, 2 and 3 GHG emissions by net income Location-based(tCO2eq/€M) 420.47 ESRS E1-6 53 Marketbased(tCO2eq/€M) 419.14 ESRS E1-6 53 Thetablebelowshowsareconciliationwithnetincomeontheincomestatement. ESRS E1-6 AR 55 Table 24: Net income used for intensity calculations Revenue reconciliation 2024 Reference NetincomeusedtocalculateGHGintensity(€) 1,182,169,203.98 Otherrevenue(€) - Totalnetincome(asstatedinthenancialdeclaration)(€) 1,182,169,203.98 ESRS E1-6 AR55 2.2.6. E1-7:GHGremovalsandGHGmitigationprojectsnancedthroughcarboncredits CFEhasnodisposalorstorageofGHGsresultingfromprojectsdevelopedaspartofitsownactivitiesortowhichithascontributed in their upstream and downstream value chain. In addition, there are no GHG emission reductions or removals taken into account in theGHGemissionsdisclosedfromclimatechangemitigationprojectsoutsidetheirvaluechain,whichtheyhavenancedorintend tonancethroughthepurchaseofcarboncredits. ESRS E1-7 2.2.7. E1-8:Internalcarbonpricing CFEdoesnothaveinternal,structuredcarbonpricingsystemstosupportdecision-makingorincentivisetheimplementationof climate-relatedpoliciesandobjectives. ESRS E1-8 2.2.8. E1-9:Anticipatednancialeffectsfrommaterialphysicalandtransitionrisksandpotential climate-related opportunities In2024,guidelinesforGroupcompaniesweredrawnupincollaborationwithotherAvHGroupcompaniestodeneclimaterisks (bothphysicalandtransitional)andidentifyopportunities.Pilotprojectswerecarriedoutwithanexternalconsultanttogainabetter understandingofthedatarequirementsneededtotranslateclimaterisksintomonetaryvalue. AninitialanalysisofCFE’sactivitieshasshownthat,generallyspeaking,theydonotpresentanyphysicalclimaticrisks. Indeed,CFEisacompanywithalimitednumberofphysicalassets(suchasbuildings,machineryorland).Theriskoftheseassetsbe- ingexposedtothephysicalrisksassociatedwithnaturaldisasters(oods,storms,etc.)whichcoulddamagethemisnotverymaterial. Ourbusinessmodelisbasedoncarryingoutandsellingprojectsratherthanowningandoperatingphysicalassets,sophysicalrisks areconsiderablyreduced. ESRS E1-9 66a,b,c,d, ESRS E1-9 AR70ci, ESRS E1-9 AR69a,b Withregardtotransitionrisks,thecomplementaryanalysisexerciseisstillongoing.CFEwillthereforebegraduallyintroducinginfor- mationonthissubject. Fromthenextreportingyearonwards,qualitativeinformationwillbeprovided,andbytheyearending31December2027,amone- taryimpactshouldbereported. Phase in requirements for ESRS E1-9 67, 68,69 & AR 72,73 Our ambitions and achievements Management report Sustainability statements Financial statementsMessage from the Chairman and CEO Annual report 2024 - CFE 107 CFEcarriesoutaverylimitednumberofactivitiesforTotalEnergiesandINEOS,whichoperateintheoilandgassector. Tableau 25 : Revenus nets provenant de clients opérant dans des activités liées au charbon, au pétrole ou au gaz Value in Euros (€) Value as a percentage of total reve- nues (%) Net revenues from customers operating in coal-related industries - - Net revenues from customers operating in oil-related Industries 20,426.59 0.002% Net revenues from customers operating in gas-related Industries 33,911,454.64 2.869% Total revenues - group share 1,182,169,203.98 100.000% ESRS E1-9 67e 3. SOCIAL INFORMATION 3.1. ESRS S1: Policies related to own workforce PeopleareattheheartoftheCFEGroup’sstrategy..CFEcontributestocreatingsignicantdirectemployment(2,854workers),as wellasindirectlythroughitsvarioussubcontractorsandsuppliers.Since2020,CFEhasrunanemployerbrandingcampaignhigh- lightingthe“Framily”(family&friends)thatcharacterisesit.ThemodestsizeofthesubsidiariesandthesoundnessoftheGroup,as wellasthenumeroussynergiesarewhatmakeCFEstrongandunique. CFEwantstopayfullattentiontosafeandhealthyworkplaces.Theseverityandfrequencyofaccidentsatworkaregivenpriority attentionbyeachBoardofDirectors.CFEperformsbetterinthisareathanthesectoraverageinBelgium,accordingtoofcialFedris informationavailableatwww.fedris.be.ThisdoesnotpreventCFEfromimprovingitsscoreeveryyear.Apolicyofawarenessraising, trainingandpreventionareimportanttoolsinthisrespect.Theintegrationofsafetyintomethodsandsitepreparationalsocontrib- utestothis.Regularsitevisitsarecarriedouttocheckcompliancewithprocedures.Totakeintoaccountthespecicityandlevelof riskoftheCFEteams’variousactivities,specicobjectiveshavebeensetforeachsegment.CFEhaschosentousetheseverityrate (LTIGR)asanindicatortomonitortheeffectofsafetyactions. 3.1.1. SBM2 Interests and views of stakeholders Theinterests,opinionsandrightsofCFEstaff,includingrespectforhumanrights,aretakenintoaccountinthecompany’sstrategy andbusinessmodel.PeopleareattheheartofCFE’sstrategy,butitsworkersarealsothedrivingforcebehinditsdevelopment. ThevaluesthatdriveCFEworkersarereectedintheacronymH.E.R.O.(Happener,Engaged,ReliableandOne). CFEworkersare“Happeners”.Solution-oriented,theydaretothinkthattheycanmakeadifferenceandchangetheworld.Theyare also“committed”andpassionatepeoplewhoactivelystrivetosatisfytheircustomersandcolleaguesalike.Trustandrespectfor ourprinciplesareessentialvaluesforCFE.Wesaywhatwedoanddowhatwesay.CFEworkersare“Reliable”.Finally,webelievein thestrengthofourgroupandactasateam.Wearesimplystrongertogether,whenweactas“One”team. EachmeetingofthemanagementcommitteesofthevariousBusinessUnitsandofeachExecutiveCommitteebeginswithanup- dateonhealthandsafety. ThesafetyandhealthdashboardandKPIsarepermanentlyaccessibletoallBUmanagementcommitteesandtheExecutive Committee.Groupstrategy,includinghealthandsafetystrategy,ispresentedatleastonceayeartotheAuditCommitteeandthe BoardofDirectors.HealthandsafetyarepartoftheCommunitypillaroftheCFEgroup’sSPARCstrategy(Shift,Perform,Accelerate, ReturnandCommunity). ESRS 2 SBM-2 3.1.2. SBM3Materialimpacts,risksandopportunitiesandtheirinteractionwithstrategyandbusiness model TheDMAexercise(chap1.5.1)hasdemonstratedthathealthandsafetyarematerialsub-themesforCFEanditssubcontractors.In particular,thereisasignicantriskofnegativeimpact,asaccidentscanoccuronsite,leadingtoseriousincapacity,permanent after-effects and even death. TheheartofCFE’sbusinesshappensontheconstructionsites.TheworkiscarriedoutbyCFE’sownworkersorbysubcontractors.At present,there’snowayofcarryingouttheseprojectswithoutmanpower.Everyeffortmustthereforebemadetolimittheserisks. CFEappliesthesameapproachtosafetyonallitsprojects,regardlessofthetypeofprojectorthecountryinwhichitiscarriedout. Thesupervisionandtrainingofworkersonallprojectsisalsoofthesamestandard,irrespectiveofthecountry. Nevertheless,thepersonnelwhoaremostatriskonsitearetheworkerswhospend100%oftheirtimeonsite.Specialattentionis thereforepaidtotheirtrainingandsupervision.Sincetherisksareidentical,CFEappliesthesamerigoroussafetystandardstoall Our ambitions and achievements Management report Sustainability statements Financial statementsMessage from the Chairman and CEO Annual report 2024 - CFE 108 those working on site. Nevertheless,safetyremainstheresponsibilityofeveryworker.Eachoneisresponsiblefordoingeverythinginhisorherpowerto worksafely,nottoputanotheremployeeatrisk,andtoreportanysituationpresentingapotentialrisk. Eachprojectmaypresentspecichealthandsafetyrisks.Aspecicriskanalysisisthereforecarriedoutbeforethestartofeach project.Aspeciconboardingbrochureisproducedforeachsite.Amongotherthings,itsetsouttherulestobefollowedonsite,as wellasanyspecialpointsofattention.Everyworkerandsubcontractorreceivesthisbrochureandspecictrainingwhentheyrst arriveonsite.Acheckismadetoensurethatthisonboardingisunderstoodbeforetheworkerisallowedtostartworkonthesite. Monthlytrainingsessions,knownastoolboxmeetings,tailoredtospecicprojectsandprojectphases,arealsoorganised. Havingagoodsafetycultureintheconstructionsectoroffersmanyopportunitiesforattractingnewemployees,especiallyina contextofstrongcompetitionfortalent.Firstandforemost,awell-establishedsafetycultureimprovesacompany’simage.Potential candidatesareoftenattractedbyemployerswhoemphasisethesafetyandwell-beingoftheirworkers.Thisshowsthatthecom- panycaresaboutitsworkersandiswillingtoinvestintheirprotection. Secondly,acultureofsafetyreducesthenumberofaccidentsandincidentsonconstructionsites,resultinginasafer,morepleas- antworkingenvironment.Currentandpotentialworkersaremorelikelytostayandjoinacompanywheretheyfeelsafe. Additionally,agoodsafetyculturecanincreaseworkersatisfactionandmotivation.Whenworkersfeelprotectedandvalued,they aremorecommittedandproductive.Itcanalsoreducestaffturnover,whichisaconsiderableadvantageinasectorwheretalent retention is crucial. Finally,promotingacultureofsafetycanalsoenhanceacompany’sreputationintheindustry,attractingqualitytalentwhoare lookingforresponsibleandreliableemployers. Transitionplansaimedatreducingnegativeenvironmentalimpactsandmakingoperationsmoreenvironmentally-friendlyand climate-neutral have no known material impact on workers in the short to medium term. Nevertheless, in the longer term, we can assumethatgreaterindustrialisationofprojects,includingmoreprefabrication,shouldhaveapositiveimpactonsafety.Prefabri- cationintheconstructionindustryoffersanumberofsignicantadvantagesintermsofworkerhealthandsafety.Byprefabricating componentsinacontrolledenvironment,suchasafactory,wereducethenumberofworkersandcomplexon-siteoperations, therebyreducingtherisksassociatedwithworkingatheightanddangeroushandling.Prefabricatedelementsarrivereadyforas- sembly,reducingtheneedforarduous,repetitivephysicaltasksonthesite,andhelpingtoreducemusculoskeletaldisordersamong workers.Inaddition,prefabricationmakesitpossibletobettermanageworkingconditionsinthefactory,wheresafetystandards canbemorestrictlyenforced,includingbettermanagementofpersonalprotectiveequipmentandsafetyprocedures.Finally,pre- fabricationminimisesconstructionwasteandon-sitenuisancessuchasnoiseanddust,improvingtheoverallworkingenvironment. CFE’sactivitiestakeplacemainlyinBelgium,LuxembourgandPoland.CFEcompliesnotonlywithnationalregulations,butalsowith Europeanregulationsonhumanrightsandlabourrightsinparticular.Asaresult,noparticularriskshavebeenidentiedwithregard tochildorforcedlabour. ESRS S1-SBM-3 3.1.3. S1-1 Policies related to own workforce Inits“CodeofConduct”,CFE’srstruleistoprotectitsteamsandpartners.CFEiscommittedtozeroaccidents,tosettinganexam- pleandtoprovidingtheresources,supportandtrainingneededtoensurethesafetyandwell-beingofitsworkersandpartners. ThiscodeisavailableonthegroupintranetandontheCFEwebsite. Respectforhumanrightsisalsocoveredindetailinthiscode,aswellasinaspecicpolicy(HumanRightsPolicy)whichisavailable ontheCFEwebsite. ThesevariouscodesandpoliciesrespecttheInternationalBillofHumanRights(UnitedNations),theDeclarationonFundamental PrinciplesandRightsatWork(InternationalLabourOrganization)andtheOECDGuidelinesforMultinationalEnterprises. FurtherinformationonthisCodecanalsobefoundinchapter4.2. ESRS S1-1 20 a, b, c, ESRS S1-1 21 HealthandsafetybeingamaterialriskforCFE,aspecicpolicyhasbeendrawnup.Thispolicyisregularlyreviewedinconsultation withtheSafetyBoard(aGroup-widebodyheadedbytheGroupHeadofSafetyandmadeupofQHSEmanagersfromeachBU)to ensurethatitisalignedascloselyaspossiblewiththerealitiesofthebusiness.Itwaslastrevisedin2024andapprovedbytheEx- ecutiveCommitteeandtheBoardofDirectors.TherevisionofthisQHSEpolicyhasmadeitpossibletosimplifythetextandmakeit comprehensibletoallworkers.Theobjectiveofthispolicyhasnotchanged,however,asitisstillaimedatzeroaccidents. ThispolicyappliestoallworkersoftheCFEgroup(directors,managers,employeesandsiteworkers)aswellasitssubcontractors andpartners.Everyoneisresponsiblefortheirownsafetyandthatoftheircolleagues. Thispolicy,whichaimsforzeroworkplaceaccidentsandzeroenvironmentalincidents,species,amongotherthings: • compliance with ISO 9001, 14001 and 45001 standards; • compliancewithallapplicableQHSElaws,regulationsandindustrystandards; Our ambitions and achievements Management report Sustainability statements Financial statementsMessage from the Chairman and CEO Annual report 2024 - CFE 109 • relyingonspecictraining; • theidenticationandassessmentofallpotentialQHSErisks,andtheimplementationofcontrolmeasurestomitigatethese risks; • reporting and investigating all incidents, accidents and near-misses; • communication of QHSE policies, procedures and performance; • theExecutiveCommittee’scommitmenttoimplementingthispolicy. Thispolicyisavailableontheintranetandpostedinsiteofces.Itisalsopartoftheonboardingofworkersandsubcontractors startingworkoneachsite,andintheonboardingofallnewemployees.Aspeciccommunicationcampaign(“Goforzero”)also coversthevariousaspectsofthispolicy. ESRS S1-1 17,18,19, ESRS S1-1 23 Risksrelatingtochildlabourandforcedlabourhavebeenassessedasnon-materialgiventhegeographicalscopeoftheGroup’s activities.Nevertheless,thevariouspoliciesimplementedbyCFEremindusoftheobligationforallouremployeesandbusiness partnerstoscrupulouslyrespecttherulesandlawsinforceonthissubject.ThesetopicsarecoveredinparticularintheCodeof ConductandtheHumanRightspolicy. ESRS S1-1 22 Eachemployeeisequallyresponsibleforthesafetyofthesites,forhisorherownsafetyandforthatofthirdparties.Nevertheless, theGroup’sworkersbenetfromtrainingspecictotheiractivities.Noothergroupsorindividualshavebeenidentiedasbeing morevulnerableintermsofhealthandsafetyinouroperations. ESRS S1-1 24 a,b,c,d 3.1.4. S1-2 Engagement processes with own workforce and their representatives Healthandsafetyaretheresponsibilityofallworkers.Nevertheless,CFEhasputinplaceasolidstructuretosuperviseworkers,help setupsuitableworkproceduresandimplementsolutionstokeeptheriskofaccidentstoaminimum. 3.1.4.1 Supervisorystructure AHeadofSafetyensuresthatthesafetycultureisstandardisedacrossalltheGroup’sBUs.EachBUhasatleastoneprevention advisor.Thenumberofadvisorsdependsonthenumberofjobs,thetypeofworkandtheirgeographicallocation. Thesepreventionconsultantsmeetmonthlyaspartofa“SafetyBoard”.TheaimofthesemeetingsistodeneQHSEbestpractices, workmethodsandthemostsuitableequipment. PreventionadvisorsareresponsibleformonitoringtheseworkingmethodsintheirBU.TheyregularlyvisittheirBU’sworksitestoen- surecompliancewithsafetyrulesandtoadviseteams.Theyarealsoinvolvedinthesitepreparationphase,helpingteamstoselect thebestworkmethodsandcarryoutproject-specicriskanalysis.Finally,theywritetheonboardingbrochureforthesite. 3.1.4.2 Onboardingandtraining Onboardingworkersisanidealtimetopresenttherisksspecictotheproject,andtomakesuretheyunderstandthem.Allourown workersandsubcontractorsmustattendthisonboardingsessionbeforeenteringthesiteforthersttime. Aspecicmonthlytrainingsessioncalledatoolboxmeetingisorganisedonallsites.Thistrainingisanopportunitytopresentarisk specictotheprojectandthephaseofworkinprogress,ortoreiterategeneralsafetyrules. EachCFEgroupworkermustalsotakeandpassaspecicVCAtrainingcourse,whichisvalidfor10years. Finally,a“safetyday”isorganisedeveryyear.It’satrainingdayforallsiteoperatives,withaspecialfocusonsafetyandwell-being. 3.1.4.3 Managementinvolvement Theentiremanagementteam(includingtheextendedExecutiveCommittee)iscommittedtovisitinganongoingprojectatleast onceamonth.Theaimistoraisemanagementawarenessofsafetyrisksandshowteamsthatsafetyisapriorityformanagement. Infact,everymeetingofthemanagementandExecutiveCommitteesstartswithasafetyupdateandanassessmentoftheevolu- tionofspecicKPIs. 3.1.4.4 Continuous dialogue DialoguewithGroupemployeesonthesubjectofsafetyisongoing.Everyworkerisinvitedtosharehisorhercommentsonsafety issuesassoonasariskorshortcomingisidentied.Nevertheless,twospecictypesofsurveyhavebeencarriedoutin2023and 2024tohearemployees’viewsinamoretargetedway. Therstsurvey,calledNOSAQ,isdesignedtoaskworkersabouttheirsafetycultureandtheirperceptionofsafetywithintheGroup. Analysisoftheresponsesreceivedledtothedevelopmentofanawarenesscampaigncalled“GOforzero”.Theaimofthiscam- paignistoremindpeoplethateveryaccident,howeverminor,isonetoomany.Atthesametime,thesafetycharterwasreviewed andapprovedbytheentiremanagementteam. eNPSsurveysarealsocarriedoutonaregularbasis.Inadditiontothepositiveresultsofthissurvey,identifyingthepointsofim- provementputforwardbyemployeesallowedforarapidresponsetotheseexpectations. Our ambitions and achievements Management report Sustainability statements Financial statementsMessage from the Chairman and CEO Annual report 2024 - CFE 110 ThevariousBUmanagementcommitteesarealsoinregulardialoguewiththeiremployeesviamonthlyWorksCouncilsandWork- placePreventionandProtectionCommittees(CPPT). EachBUmustalsodrawupastrategicplanthatincludestheissueofsafety.TheseplansarevalidatedbytheGroup’svariousgov- erningbodies.SpecicsafetyKPIsarealsopresentedtotheAuditCommitteeatleastonceayear. Finally,todrawinspirationfrombestpracticesinthesector,CFEisrepresentedontheADEB-VBASafetyBoard,whichmeetsquarterly. ESRS S1-1 20b, ESRS S1-2 25, 26, 27 3.1.5. S1-3 Processes to remediate negative impacts and channels for own workers to raise concerns CFEencouragesopendialogueandtransparencyregardingethicalconcernsandpotentialviolationsofthe“CodeofConduct”, includingallhealthandsafetyconcerns. Workersareencouragedtoreportanysuspectedviolations,startingwiththeusualreportingchannelsincluding,butnotlimitedto, reportingtotheirteamleader,manager,anyotherresponsibleperson,theHRDepartmentandtheGroupComplianceDepartment. Reportscanbemadeinanylanguageandarecondential.Allreportswillbepromptlyandthoroughlyinvestigated,andappro- priatecorrectiveactionwillbetakenasnecessary.Asanalternative,workersmayalsoreportethicalconcernsorviolationsofthis CodeofConductthroughCFE’sWhistleblowingTool.Asimpliedprocedure(infographic)hasbeencommunicatedtoallworkers. UseoftheCFEalerttoolisalsopartofthetrainingcycle. ESRS S1-3 31, 32 TheGroup’svarioussubsidiariesalsohaveadigitaltoolforencodingsafetyremarksandsuggestions.Theseremarksandsugges- tionsarethenincludedinalistinguntiltheremarkisremovedorcorrected.Allworkershaveaccesstothistool.Duringsitevisitsby management or prevention advisors, their comments are also incorporated into this digital tool. ESRS S1-3 32 Otherprojectstakeholdersarealsoinvitedtocommentonsafetyissues.Thesecommentswillbeincludedinthesitelistanddealt with.A24-hourhotlineisalsoavailabletoexternalprojectstakeholders. ESRS S1-3 32 e AtthemonthlymeetingsoftheCPPTandtheCE,moregeneralcommentsconcerninghealthandsafetyarediscussedandrecorded. TheNOSAQsurveycarriedoutprovedthecommitmentandcondenceofCFEworkersintheirapproachtohealthandsafety.The verypositiveresultsoftheeNPSsurveyspointinthesamedirection.Finally,regular,mandatorysafetytrainingensuresthathealth andsafetymessagesareheardandunderstoodbyallworkers. ESRS S1-3 33 3.1.6. S1-4 Taking action on material impacts on own workforce, and approaches to managing materi- al risks 3.1.6.1 Preparationandsupervision Safetyisarealandpresentriskonallconstructionprojects.Asaresponsiblecompany,CFEalreadyhaslong-standingexpertisein monitoringsafetyonitsprojects.AllBUsbenetfromtheexperienceofseasonedpreventionconsultants,whoprovidesupportfor projectsinprogressaswellasthoseinthepipeline.Theyalsomonitorprojectsandensurethatanycommentsarefollowedup. Allprojectscurrentlyunderwayhavethematerialandpersonnelresourcesneededtoensuresafeworkingareas.Aproject-specic riskanalysisalsoenablesustodenethebestexecutionmethodsfortheprojectinquestion.Inaccordancewithcurrentlegislation, eachprojectisinsuredduringtheconstructionperiodandtheten-yearwarrantyperiod. 3.1.6.2 Proactiveapproachandsafetyculture CFEdoesn’twanttosettleforminimumsafetystandards.Asurveyonsafetyperceptionandsafetyculture(NOSAQ)identiedareas forimprovement.Followingthissurvey,acommunicationcampaignandspecictrainingcourseswerelaunchedtoreinforcethe Group’ssafetycultureandencourageaproactiveapproach. 3.1.6.3 Usingdataforcontinuousimprovement CFEmonitorstheimpactofitsactionsviaitssafetydashboard,whichincludesthenumberofincidentsandaccidents(withorwith- outdisability),aswellasproactiveactionssuchasmanagementvisitsandtoolboxmeetings.AnewNOSAQsurveywillbecarried outafterthespecicactionplanhasbeeninplaceforoneyear,tomeasureitseffects.Atargetforimprovingthefrequencyrate hasbeensetfor2030. Our ambitions and achievements Management report Sustainability statements Financial statementsMessage from the Chairman and CEO Annual report 2024 - CFE 111 Secondly,CFEinsistsonsharingexperienceandbestpractices,aswellasanalysingallincidents,inordertodriveallBUstothetop. ESRS S1-4 36, 37, 38, 39, 42 3.1.6.4 Takingcoactivityintoaccount Onitsconstructionprojects,CFEhasnumerousco-activitieswithsubcontractorsorthirdparties.Itisthereforeessentialthatthe samevigilanceandrespectfortherulesbeappliedinthesamewaytoourownworkforceastootherprojectparticipants.Forthis reason,thenumberofaccidentsinvolvingsubcontractorsisalsomonitored.Thispointiscoveredinmoredetailinthenextchapter. 3.1.6.5 Financialimpactofactionstaken Theactionsundertakenconsistmainlyofmanagement(localpreventionadvisersintheBusinessUnitsandheadofsafety),training andcommunication,andspecicresourcestoensureday-to-daysafetyonsite. Forthislastpoint,anevaluationofcostsisalwayscarriedoutduringtheprojectsubmissionphaseandisthenincorporatedintothe commercialoffersubmittedtothecustomer. Allsafety-relatedcosts(directandindirect)areincludedin“operatingcosts”aspresentedintheFinancialReportonpage162.To date,thegranularityofnancialinformationisnotyetsufcienttoprovidereliablequantitativevalues.Furtherdetailswillbeprovid- ed from 2025 onwards. ESRS S1-4 43 3.1.7. S1-5Objectives Initshealthandsafetypolicy,CFEiscommittedtozeroaccidents.ItscommunicationcampaigniscalledGOFORZERO.Thisobjec- tiveappliesnotonlytoallCFEworkers,butalsotoanyoneelseworkingonoursites. Nevertheless,withthisambitioninmind,CFEhasdecidedtosetambitiousbutrealistictargetsfor2030.CFEhasthereforesetitself thetargetofachievingamaximumseverityrateof0.52by2030.Thisobjectivehasbeendenedwiththeaimofhalvingaverage sectorvalues(source:Fedris).Internalannualtargetswerethereforesetusingalinearregressionstartingfromthereferencevalue, the2021frequencyrate,whichwas0.69. Theseverityratetarget(=numberofcalendardaysofabsencex1,000dividedbythenumberofhoursworked)concernsonlyacci- dents involving the CFE group’s own workforce. Theambitionwassetonthebasisofsectorresultsfor2021(sourceFedris.be),withtheaimofbeingatleasttwiceasgoodasthe sector(andthereforehavingaseverityrateequivalenttohalfthesectorseverityrate). ESRS S1-5 46 TheambitionlevelandquantitativetargetfortheseverityrateweredecidedbytheExecutiveCommitteeaftervalidationofthis proposalbytheSafetyBoard. ESRS S1-5 47 SafetydashboardsconstantlyshowwhetherornottheannualtargetssetforeachBUarebeingmet. Inadditiontotheseexternalobjectives,internaltargetsarealsomonitored.Proactiveobjectivesarefavoured,suchastrackinginci- dentsandnear-misses,thenumberoftoolboxmeetingsheld,andthenumberofvisitsmadebymanagement.AllBUmanagement committeeshavepermanentaccesstothesedashboards. ESRS S1-5 47 3.1.8. S1-6 Characteristics of the undertaking’s workforce Thetableinthissectiongivesanoverviewoftheworkforceattheendofthereferenceperiod,31December2024.Thetableonly includesworkersconsideredasownemployeesandnotyetnon-salariedemployeesincludedinownstaff(inaccordancewiththe phasing-inprovision). ThegurespublishedonlyincludeCFEanditsBUs,anddonotincludedatafromtheInvestmentsandHoldingssegment,whichare outside the scope of reporting. ESRS S1-6 49,ESRS S1-6 50 dii Table 26 : Number of employees by type of contract Our ambitions and achievements Management report Sustainability statements Financial statementsMessage from the Chairman and CEO Annual report 2024 - CFE 112 Number of employees by type of contract Open-ended contract Fixed-term con- tract Zero-hours con- tract Total 2022 2,937 137 0 3,074 2023 2,822 168 0 2,990 2024 2,712 142 0 2,854 Amongthe142workersonxed-termcontracts,7areonwork-studycontracts. Table 27 : Number of employees by type Number of women and men Total #Women %Women #Men %Men 2022 3,074 487 15.8% 2,587 84.2% 2023 2,990 487 16.3% 2,503 83.7% 2024 2,854 476 16.7% 2,378 83.3% ESRS S1-6 50 a,b CFEhasatotalof2,854workers.Ofthese,2,282arebasedinBelgium,210inLuxembourgand359inPoland. ESRS S1-6 51 FiguresaregivenbyheadcountandnotbyFTE.Informationonworkersandtheircontractscomesfromthesocialsecretariats.This dataisconsolidatedinasingleHRmanagementdashboard.InBelgium,thevariousGroupentitieshaveasinglesocialsecretariat forall2,282employees,whichguaranteesthereliabilityandrobustnessofthedata.InLuxembourgandPoland,thereisalsoasocial secretariatforeachcountry. Non-employees,ontheotherhand,arenottakenintoaccount.It’snotmaterial.Nevertheless,reportingsystemswillbefurtherde- velopedandenhancedinthefuturetoprovidegreatergranularity. ESRS S1-6 50 di AttheendofDecember2024,theGroup’sstaffturnover(byheadcount)fortheyearwas13.10%.Thiscorrespondsto374leavers. ESRS S1-6 50 c Alltheabove-mentionedHRindicatorshaveremainedrelativelystableoverthepast3years. ESRS S1-6 50 e 3.1.9. S1-11 Social protection InaccordancewithcurrentEuropeanandlocallegislation,allCFEgroupworkersbenetfromsocialprotectionintheeventofillness oraccidentonsiteoronthewaytoorfromwork. ESRS S1-11 3.1.10. S1-13 Training and skills development Trainingandskillsdevelopmentareofferedthroughtrainingplans,coaching,careerplans,andsoon.Theseplansfocusonboth non-technicalandtechnicalskills,tofacilitatethemaintenanceofskilledemployment. Attheendof2022,CFElaunchedits“CFEacademy”.Itisanonlinetrainingplatformthatallowseachemployeetondcustomised trainingcourses,bothintermsofcontentandformat.Thedigitalapproach(whilekeepingtheoptionofattendingface-to-face training)allowsforgreaterexibilityforemployeestotrainwhenitsuitsthembest. Specichealthandsafetytrainingsessionsareorganised,forexample,whenemployeesarehired,whentheyarriveonsite,at monthlytoolboxmeetingsandduringdedicated“safetydays”. ThenumberoftraininghourswithinCFEanditsBUsismonitoredthroughtheCFEAcademyprogram.Thisdataismeasuredasa totalandbygender.However,itisnotlistedbyworkercategory. Thisdatawillnotbepublisheduntilnextyear,inthe2025report. Phase in requirements for ESRS S1-13 83 b Anewprogrammetodigitisetheperformanceappraisalprocesswillmakeitpossibletomeasurethepercentageofworkerswho havetakenpartintheappraisal.Itwillbedeployedin2025.Thisdatawillthereforenotbepublisheduntilthenextreport2025. Phase in requirements for ESRS S1-13 83 a, 84, 85 Our ambitions and achievements Management report Sustainability statements Financial statementsMessage from the Chairman and CEO Annual report 2024 - CFE 113 3.1.11. S1-14Healthandsafetymetrics Sincesafetyisamajorconcern,CFEhasdevelopedQHSEdashboardstokeepclosetrackofthetrendintheguresandtotakethe necessaryremedialactionassoonaspossible. Theseverityrate(oneofthetraditionalsecurityindicators)waschosentobeoneoftheKPI’sgoverningoursustainabilitylinked loanswiththebanks. Thedashboards,whichcontainthemaininformationforeachsubsidiary,areupdatedatleastonceamonthtokeeptrackofthe safetydata.Theyincludetraditionalsafetyinformation(frequencyandseverityratesetc.)butalsoindicatorsofproactivesafety actions(toolboxmeetings,managementinvolvement,takingintoaccountincidentsandfeedback,etc.). Thisdatacovers100%oftheGroup’sownworkers.Thisdoesnotincludeself-employedworkers,temporarystafforsubcontractors. ThemonitoringofthisdatafollowstherulesprescribedbyISO9001andtheBelgianlegaldenitionsforsafetyindicators: • Frequencyrate=numberoflost-timeaccidentsx1milliondividedbythenumberofworkinghours. • Severityrate=numberofcalendardaysofabsencex1,000dividedbythenumberofworkinghours. • Alost-timeaccidentisanaccidentintheworkplaceresultinginatleastoneday’sincapacity,notincludingthedayoftheacci- dent. • Anaccidentwithoutincapacityisanaccidentthatdoesnotresultinincapacityforworkbeyondthedayoftheaccident. • Arstaidaccidentisanaccidentrequiringonlyrstaidonthespot.Thesearenotincludedinthisreport. • Recordableincidentsarethesumoflost-timeaccidentsandaccidentswithoutincapacity(excludingrst-aid). • Thefrequencyrateiscalculatedasfollows:numberoflost-timeaccidentsx1,000,000dividedbythenumberofhoursworked. • Theseverityrateiscalculatedasfollows:Severityrate=numberofcalendardaysofabsencex1,000dividedbythenumberof hours worked. • Therecordableincidentrateiscalculatedasfollows:numberofrecordableincidentsx1,000,000dividedbynumberofhours worked. ESRS S1-14 87 Table 28: Data on accidents involving our own workforce 2022 2023 2024 %ofworkersincludedinthehealthandsafetyriskmanagement 100 100 100 Numberofwork-relatedfatalities(ownworkforce) 0 0 0 Numberofwork-relatedfatalities(subcontractororthirdparty) 1 1 0 Numberofrecordableaccidents(excludingrstaid) 145 139 115 Numberoflost-timeaccidents 93 77 64 Frequencyrate 21.96 18.47 15.34 Severityrate 0.72 0.68 0.56 Recordableaccidentrate NC NC 27.55 Numberofcasesofillnessdirectlylinkedtowork 0 0 0 Numberofdayslostduetoanaccidentatwork 3,050 2,847 2,321 ThenumberofaccidentsreportedandthenumberofdayslostcorrespondtodatarecordedandvalidatedbyinsurersforBelgium andLuxembourg.InPoland,ontheotherhand,accidentsandtheirconsequencesarerecordedinnationalrecords.Thisinformation isthereforerobust,completeandreliable. ESRS S1-14 88 Thesafetyofsubcontractorsisalsotakenintoaccountinaspecicdashboard(seechapter3.2.7). 3.1.11.1 Incidents,complaintsandseverehumanrightsimpacts Nooffencesorcomplaintsofdiscriminationorfailuretorespecthumanrightswererecordedin2024.Noneshavebeenreappliedeither. ESRS S1-17 3.2. ESRS S2: Workers in the value chain Thisanalysisfocusesspecicallyonsubcontractorsratherthantheentirevaluechainofaconstructionproject.Themainreason isthatthevaluechaininthissectorisoftenverylongandfragmented,involvingmanydifferentplayerswithvaryingroles.Further- more,thereisnotalwaysdirectcontactwiththelowerlinksinthischain,whichmakesitdifculttoassessallthepotentialrisksand impactsinacomprehensiveandaccurateway.Byfocusingonsubcontractors,whoarekeypartnersanddirectlyinvolvedinsite operations,itispossibletoimplementmoretargetedandeffectivesafetymeasures,ensuringbettermanagementofmaterialrisks andasignicantimprovementinworkingconditions. Our ambitions and achievements Management report Sustainability statements Financial statementsMessage from the Chairman and CEO Annual report 2024 - CFE 114 3.2.1. SBM2 Interests and views of stakeholders CollaborationanddialoguewithsubcontractorsareessentialelementsofCFE’sgroupstrategy.Weconsiderthemasimportantas ourownworkforce.Byfosteringopen,ongoingcommunication,weensurethatsubcontractorsarefullyintegratedintoourprocess- esandshareoursafetyandqualityobjectives.Thiscollaborativeapproachstrengthensrelationshipsbasedontrust,improvesco- ordinationonconstructionsitesandensuresthateveryoneworkstogetherharmoniouslyandefciently.Byvaluingthecontributions ofsubcontractorsandtreatingthemaskeypartners,wecreateasafer,moreproductiveworkingenvironmentforall. ESRS 2 SBM-2 3.2.2. SBM3Materialimpacts,risksandopportunitiesandtheirinteractionwithstrategyandbusiness model TheDMAexercise(chap1.5.1)hasdemonstratedthathealthandsafetyarematerialsub-themesforCFEanditssubcontractors.In particular,thereisasignicantriskofnegativeimpact,asaccidentscanoccuronsite,leadingtoseriousincapacity,permanent after-effects and even death. TheheartofCFE’sbusinesshappensontheconstructionsites.TheworkiscarriedoutbyCFE’sownworkersorbysubcontractors.At present,there’snowayofcarryingouttheseprojectswithoutmanpower.Everyeffortmustthereforebemadetolimittheserisks. CFEconsidersthatitisjustasimportanttoghttolimitsafetyrisksonsiteforitsownworkforceasforsubcontractors,sinceevery humanbeingdeservestobetreatedequallyinthefaceofdanger.Theanalysiscarriedoutinchapter3.1.2thereforealsocoversthe entire value chain. ESRS S2-SBM-3 11 a,c 3.2.3. S2-1 Policies related to value chain workers CFEhasadoptedaseriesofpoliciesthatapplybothtoitsownworkforceandtothevariouspartiesinvolvedonsite.Theseinclude theHumanRightsPolicyandtheQHSEPolicy.Thesedocumentsaredescribedindetailinchapter3.1.3. ACodeofConductforcommercialpartnershasalsobeendrawnup.ItincludesanobligationtocomplywiththeinternalCodeof Conduct,andinparticulartorespectthesafetyrulessetoutintheQHSEpolicy. TheobligationtocomplywithlocalandEuropeanlawsandregulations,aswellaswiththeaforementionedpolicies,areanintegral partofthecontractualclausesforsub-contractors. ESRS S2-16, 17, 18, 19 3.2.4. S2-2Processesforengagingwithvaluechainworkersaboutimpacts Ongoingdialoguewiththevariouspartiesinvolvedonourworksitesisapriority,andthisprimarilyconcernssafety. Theonboardingofallsubcontractorsisformalisedbymeansofashorttrainingsessionintroducingthesite,thecontactpersons andthespecicrulesrelatingtotheproject.Itisvitaltoensurethateveryonecanidentifythevariousstakeholdersinvolved,and knowswhotocontactintheeventofanyproblems.Thesitemanagerwillensurethatallthisinformationisunderstoodbyproviding training in a language that the workers understand. Each team should have a manager who speaks one of the project’s national languages, to ensure that he or she can communicate with the site management teams at all times. Formalmeetingsareheldatleastonceaweekwithsubcontractorsworkingonthesite.Toensurethatthesemeetingsrunsmoothly, teamleadersfromthevarioussubcontractorsrepresenttheircompanies.Thesemeetingsarefollowedbyaclearreportsettingout theactionstobetakenbythevariouspartiesinvolved,anupdateonthescheduleandanoverviewofthephasestocome.ALEAN andcollaborativeapproachisadoptedonallprojects.Engagementwiththevaluechainonworksitesonsafetyissues,usingaLEAN approach,isessentialtoensureasafeandefcientworkingenvironment. Secondly,valuechainmappingenablesustoanalyseeachstageoftheconstructionprocess,fromdesigntodelivery,anddetect criticalpointswheresafetyincidentsmayoccur. Acultureofsafetymustbeestablished,withvisibleleadershipwheremanagerssettheexamplebyrespectingandvaluingsafety practices and open communication. Finally,themonitoringandevaluationofsafetyperformance,throughkeyindicatorsandregularsitevisits,ensurescompliancewith standardsandidentiesareasforimprovement. ByintegratingtheseLEANprinciplesintoworksitesafetymanagement,itispossibletocreateasafer,moreefcientandmorecol- laborativeworkingenvironment.Thekeyliesinthecommitmentofallplayersinthevaluechainandinacultureofcontinuousim- provement. Penaltiesareforeseenandcommunicatedforanyworkerwhodoesnotrespectthesafetyrulesinforceonprojects. ESRS S2-2 Our ambitions and achievements Management report Sustainability statements Financial statementsMessage from the Chairman and CEO Annual report 2024 - CFE 115 3.2.5. S2-3 Processes to remediate negative impacts and channels for value chain workers to raise concerns Toremedynegativeimpactsonsites,itisessentialtoputinplaceastructuredprocessandeffectivecommunicationchannels. Thisprocessbeginswiththeidenticationandassessmentofpotentialimpacts.Thisincludescarryingoutriskanalysestoidentify potentialhazardsandassesstheirseverityandprobability.Atthestartofsiteactivities,eachsubcontractorisrequiredtosharethis specicriskanalysiswiththesitemanagementteam,inordertoanalysetheresourcestobeimplementedandresponsibilitiesto- gether. Oncetheimpactshavebeenidentied,preventiveand/orcorrectivemeasuresmustbeimplemented.Thiscanincludemodifying workprocedures,improvingsafetyequipment,ortrainingworkerstobettermanageidentiedrisks.Itiscrucialtodocumentthese measuresandensurethattheyareclearlycommunicatedtoallteammembers. Toenableworkersinthevaluechaintovoicetheirconcerns,severalcommunicationchannelsneedtobeestablished: Onboardingnewworkers:Thisonboardingprovidesinformationandtrainingfornewworkersonaproject.Inparticular,theorgani- sational chart of site management and their contact details are provided to facilitate future exchanges. Regular meetings :Weeklysafetymeetingsareorganisedonprojectswhereworkerscandiscusssafetyissuesandproposesolu- tions. Directcommunicationlines:Subcontractorsareencouragedtocommunicateanyconcernsorcommentsdirectlywithsiteteams asamatterofpriority. Mobileapplications:Onmostworksites,amobileappenablesworkerstoreportincidentsorconcernsquicklyandeasily. Securityrepresentatives: The site’s QHSE manager, along with the entire site management team, makes regular visits to the site, enablingdirectinteractionwithallthoseinvolved. It’salsoimportanttocreateasafetyculturewhereworkersfeelcomfortablereportingproblemswithoutfearofreprisal.Thisisen- couragedbyvisible,committedleadershipthatvaluesandrespectsworkers’contributionstosafety. Finally,itisessentialtomonitorandevaluatetheeffectivenessofthemeasuresputinplace,bytrackingsafetyindicators. ESRS S2-3 27, 28 3.2.6. S2-4 Taking action on material impacts on value chain workers, and approaches to managing material risks and pursuing material opportunities related to value chain workers, and effectiveness of those actions Eachprojectisuniqueandrequiresaspecicriskanalysis.Thisexercisemustbecarriedoutbothbytheprojectmanagementteam andbysubcontractors.Thisanalysismustbecarriedoutbeforeworkbegins,toenableadialoguewiththeproject’smanagement teamsandtovalidatethemostsuitableworkingmethodsforlimitingriskstogether.Schedulingwillalsobedenedinsuchawayas tokeepco-activitiesbetweenworkerstoaminimum. Weeklysitemeetingsallowustoseewhetherornotweneedtoadaptorcorrectthechosenworkmethods. Everyoneinvolvedinaprojectisjointlyresponsiblefortheirownsafetyandthatofothers.Ontheotherhand,subcontractingagree- mentsspecifyindetailtherolesandresponsibilitiesofallpartiesinvolved.Amongotherthings,itdeneswhoisresponsibleforthe breakdownandmaintenanceofcollectiveprotectionequipment.Eachsubcontractorisresponsibleforhisorherownpersonal protectiveequipment.Ontheotherhand,thesitemanagementteamwillensurethateachemployeeusestheequipmentcorrectly. Thesitemanagementteamwillensurethataresponsible,collaborativeandrespectfulsitecultureisinplace.Thisworkingatmos- pherefacilitatescommunicationandagenuinesafetyculture. RegularchecksarecarriedoutonsitebytheBU’sQHSEmanagerandbymanagementteams.Thesevisitsenableustoidentify safetyshortcomingsandcorrectthemasquicklyaspossible.Thesevisitsarealwaysaccompaniedbyavisitreporttoensurethat everyremarkhasbeenaddressed.Controlalsoinvolvesregularmonitoringandcommunicationofsafetyindicators.Aspecic monthlydashboardalsoincludesthenumberofincidentsandaccidentsinvolvingsubcontractors. Themanagementteamwillalsoensurethatsubcontractingteamsreceivethenecessarytraining. Intheeventoffailuretocomplywiththeestablishedrules,penaltiesareapplied.Intheeventofseriousmisconduct,theperson responsiblewillbeaskedtoleavethesitewithimmediateeffectandwillnotbeallowedtoreturn.CFEalsomonitorsthecompany’s trackrecordintermsofsafetycomplianceandsafetyculture,andtakesthisintoaccountwhenselectingsubcontractors. CFEisnotawareofanyserioushumanrightsproblemsorincidentslinkedtotheupstreamordownstreamvaluechain(otherthan thesiteaccidentslistedinthefollowingchapter). Our ambitions and achievements Management report Sustainability statements Financial statementsMessage from the Chairman and CEO Annual report 2024 - CFE 116 Alltheseactionsdonotrepresentanyparticularcost.Infact,mostoftheseactionsarealreadytakenforownworkersandare thereforealreadyaccountedforinchapter3.1.6. ESRS S2-4 3.2.7. S2-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities Atthisstage,noquantiableannualtargethasbeenset.Nevertheless,theoverallobjectiveisthesameasforownworkforce,i.e.to aimforzeroaccidents. ESRS S2-5 41 Tothisend,thenumberofwork-related,lost-timeaccidentsismonitoredforallsubcontractorsworkingonourprojects.Thisinfor- mationformspartofthesafetydashboardpresentedtotheExecutiveCommitteeonamonthlybasis. Table 29: Subcontractor accident data 2022 2023 2024 Numberofwork-relatedfatalities(subcontractororthirdparty) 1 1 0 Numberofaccidentwithincapacityofsubcontractors 29 30 35 ESRS S2-5 40 Thisdatashouldbetreatedwithgreatcaution,astheyaresuppliedbythesubcontractorsthemselves,andtheirqualityorcom- pletenesscannotbeguaranteed.Itisnotpossibletomeasurethefrequencyorseverityrateforsubcontractors,asthesecalcu- lationswouldrequireknowingthenumberofdaysofincapacityandthenumberofhoursworkedbyeachsubcontractor,butthis dataisnotcommunicatedtothegeneralcontractor.PleasenotethatthisdataislimitedtoTier1(subcontractors).Giventheextent andcomplexityofthevaluechain,itiscurrentlynotphysicallypossibletoextenddatacollectiontothelowerlevelsofthechain (suppliers,manufacturers,etc.).Nevertheless,CFEiscontinuingtodevelopmorerobustprocessesforcollectingvaluechaininfor- mation. Atthisstage,subcontractorsarenotinvolvedindeningthetarget.Thisismainlyduetothesizeandcomplexityofthevaluechain involvedinCFEprojects.Theglobalambitionforcontinuousimprovementintermsofsafetyisaconcernfortheentirevaluechain. CFEanditsvariousBUsactivelyparticipateintheADEB-VBASafetyBoard,whereexamplesofbestpracticesaresharedandsec- tor-specicprojectsinitiated. ESRS S2-5 42 4. GOVERNANCE INFORMATION 4.1. ESRS2IRO-1:Descriptionoftheprocessestoidentifyandassessmaterialimpacts, risks and opportunities Thedoublematerialityexerciseshowninchapter1.5.1.alsoshowsthatthetopicsofcorporateculture,whistleblowerprotectionand corruptionandbribery(combinedina“businessconductandcompliancewiththelaw”theme)arenotmaterial,whichmightseem surprisingatrstglance.Thesameappliestothethemeofpartnership,whichcoverssuchtopicsassupplierrelationsandpayment practices etc. Nevertheless,CFEiscommittedtorespectingtheserulesofbusinessconductaswellasallstakeholders.TheGroup’sSPARCstrat- egycallsonusto“Perform”byaimingforexcellenceinourprocessesandriskmanagement(the“P”),andtoplacepeopleandthe communityattheheartofallouractivities(the“C”).Consequently,compliancewiththehigheststandardsofprobityandbusiness integrity,aswellasrespectforhumanrights,areanintegralpartoftheGroup’sstrategy. 4.2. Policiesonresponsiblebusinessculture Alltheserulesandmeasuresaresetoutinthe“CodeofConduct”andthe“BusinessIntegrityPolicies”manual.Bothdocumentsare availabletoallemployeesontheGroupintranet.ThecodeofconductisalsoavailableontheCFEgroupwebsite (https://www.cfe.be/fr/documents-de-la-societe). CFEalsoensuresthatitsentirevaluechainrespectstheserules.Therulesandmeasuresaresetoutinthe“Businessintegritypolicies forcommercialpartners”manual.Theobligationtocomplywiththeserulesandmeasuresisanintegralpartofthecontractswesign withourvariousbusinesspartners.Thisobligationappliesequallytoresponsiblebusinessculture,socialandenvironmentalissues. ESRS G1-2 15a, ESRS G1-2 15b Our ambitions and achievements Management report Sustainability statements Financial statementsMessage from the Chairman and CEO Annual report 2024 - CFE 117 Finally,specicpoliciesonhumanrightsanddataprotection,aswellasproceduresintheeventofpersonaldatabreachesand dataleaks,areavailableontheCFEgroupwebsite(https://www.cfe.be/fr/documents-de-la-societe)andontheintranet. Allthesedocumentshavebeenvalidatedbythevariousadministrative,managementandsupervisorybodies.AtExecutiveCom- mitteelevel,responsibilityforbusinesscultureissuesisassumedbytheGroup’sGeneralSecretary,whoisapermanentguest.The expertiseofthevariousmembersoftheadministrativeandsupervisorybodiescanbefoundinthechapteronthe“CorporateGov- ernanceStatement”.TherolesandresponsibilitiesofeachbodyarealsosetoutintheCorporateGovernanceCharter,alsoavaila- bleontheCFEgroupwebsite(https://www.cfe.be/fr/documents-de-la-societe). ESRS G1.GOV-1_5a, ESRS G1.GOV-1_5b Inparticular,the“BusinessIntegrityPolicies”manualincludesthefollowingpolicies: • Giftsandentertainmentpolicy • Policyonpoliticalinvolvement • Antitrustpolicy • Internationalsanctionspolicy • Conictofinterestpolicy • Policyagainstbriberyandcorruption TheCodeofConduct,whilenotexhaustive,dealswithasetofgeneralprinciplesandethicalguidelinesthatcanbeappliedatdif- ferentlevelsoftheGroupandwithinthevariousBusinessUnits.Theseinclude(amongothers): • Protecting teams and partners • diversity,equalopportunityandnon-discrimination • healthandsafety • respect and freedom from harassment • dataprivacy • Ethicalbusinessconduct(thisreferstotherulessetoutinthespecic“BusinessIntegrityPolicies”manualdescribedabove) • Financialintegrity • Themesrelatingtotheenvironment,sustainabilityandrespectforhumanrightsandcommunities ThesevariouspoliciesrespecttheInternationalBillofHumanRights(UnitedNations),theDeclarationonFundamentalPrinciplesand RightsatWork(InternationalLabourOrganization)andtheOECDGuidelinesforMultinationalEnterprises. RespectforthehumanrightsofeveryindividualisessentialtoCFEandliesattheheartofourfundamentalvalues.Werespectand protecthumanrightsandtakecarenottoexploitanyone,whereverweworkintheworld.Everyonewedobusinesswithisheldto thesamestandards.Wewillnevertolerateslavery,childlabour,forcedorcompulsorylabour,ortrafckinginhumanbeings.We respectthefundamentalrightsandfreedomsenshrinedintheUnitedNationsUniversalDeclarationofHumanRights.Ourhuman rightspolicyisalignedwithourCodeandisoverseenbyCFE’slegalandhumanresourcesdepartments.Inparticular,aspartofits humanrightspolicy(https://www.cfe.be/fr/documents-de-la-societe),CFEiscommittedtorespectingtheeightfundamentalILO conventions. Specicpoliciesonsafetyanddiversityhavealsobeenimplementedandcommunicatedtoallemployees. 4.3. Specicobjectivesandmonitoringofthesepolicies The“codeofconduct”andthevarious“businessintegritypolicies”werecompletelyrevisedin2024.Thesedocumentsareavailable ontheintranet.Toensureknowledgeandunderstandingoftherulescontainedtherein,anonlinetrainingcycle,whichismandatory forallemployees,wasrolledoutduringthelastquarterof2024concerningthe“CodeofConduct”,“BusinessIntegrityPolicies”and “HumanRightsPolicy”. ESRS G1-1 9, ESRS G1-1 10g, ESRS G1-3 20, 21a, 21b, 21c Alongsidethistrainingcycle,specictrainingcoursesandcommunicationcampaignsoncybersecurity,safetyanddiversityare alsoorganisedannually. Eachentityregularlyundergoesananalysisofrisksandproceduresbytheinternalauditunit.Internalauditisanindependentfunc- tion,anditsmaintaskistosupportmanagementandhelpitimprovethemanagementofrisks.Internalauditreportsfunctionally totheAuditCommitteeofCFEbysubmittingtheannualauditplanandpresentingthemainndingsoftheauditscarriedoutanda follow-upoftheactionplans.Ifnecessary,additionalauditassignmentsmaybecarriedoutattherequestoftheAuditCommittee or of the Executive Committee of CFE. EmployeesareexpectedtobevigilantabouttheriskstowhichourGroupcouldbeexposedinthecourseofitsactivities. Our ambitions and achievements Management report Sustainability statements Financial statementsMessage from the Chairman and CEO Annual report 2024 - CFE 118 Anybehaviourperceived(orsuspected)tobeunethicalorillegalmustbedisclosedorreportedwithoutdelaysothatCFEcanin- vestigatepromptlyandtakeappropriateaction. CFEencouragesopendialogueandtransparencyregardingethicalconcernsandpotentialviolationsofthe“CodeofConduct”. Employeesareencouragedtoreportanysuspectedviolations,startingwiththeusualreportingchannelsincluding,butnotlimited to,reportingtotheirteamleader,manager,anyotherresponsibleperson,theHRDepartmentandtheGroupComplianceDepart- ment.Reportscanbemadeinanylanguageandarecondential.Allreportswillbepromptlyandthoroughlyinvestigated,and appropriatecorrectiveactionwillbetakenasnecessary.Asanalternative,employeesmayalsoreportethicalconcernsorviola- tionsofthisCodeofConductthroughCFE’swhistleblowingtool.Asimpliedprocedure(infographic)hasbeencommunicatedtoall employees.UseoftheCFEalerttoolisalsopartofthetrainingcycle. ESRS G1-1_10a, ESRS G1-1_10c, ESRS G1-3_18a Noviolationswererecordedat2024.Noneshavebeenimposedeither. Nevertheless,theBelgianjudicialauthoritiesarecurrentlyconductinganinvestigationintoallegedcriminalactsrelatingtothecon- structionoftheGrandHotelinN’Djamena,Chad.Asareminder,thiscontract,whichdatesbackto2011,resultedinalossofmore thanEUR50millionforCFE,duetothenon-paymentofpartofitsreceivables.TheworkwascarriedoutbyCFETchad,aGroupsub- sidiaryuntilitssalein2021. Aspartofthisinvestigation,asearchwascarriedoutatCFE’sheadofceon4September2024.Inaddition,severalmembersof managementandtheBoardofDirectors,aswellasformeremployeesoftheCFEgroup,wereinterviewed.However,atthedateof thisreport,CFEhasnotyethadaccesstotheinvestigationleandnochargeshavebeenbroughtagainstCFEoritscurrentman- agersand/ordirectors,nor,toitsknowledge,againstformeremployeesoftheCFEgroup. CFEiscooperatingfullywiththecurrentinvestigation. Inthecurrentcircumstancesandinlightoftheabove,CFEisunabletoreliablyestimatethenancialconsequencesofthisongoing procedure.Consequently,noprovisionhasbeenrecognisedasat31December2024,inaccordancewiththeprovisionsofIAS37. ESRS G1-4_01, ESRS G1-4_02 5. ANNEXES 5.1. Annex1:Glossaryandabbreviations • ADEB/VBA(AssociationdesEntrepreneursBelgesdeGrandsTravaux,BelgianAssociationofMajorWorksContractors): An organisation that represents and defends the interests of the major construction companies in Belgium. • BA4SC:Oragnisationpromotingsustainableandinnovativepracticesintheconstructionsector • BACA(BelgianAllianceforClimateAction): a platform for Belgian organisations that want to reduce their GHG emissions, showclimateambitionanduseSBTi(ScienceBasedTargetsinitiative)todenetheirgoals. • BD(BusinessDivision):IntermediatestructuregroupingtogetherBusinessUnits(BU’s)underthesamemanagementwithina BusinessSegment(BS). • BREEAM(BuildingResearchEstablishmentEnvironmentalAssessmentMethod):internationalsustainabilitybenchmarkand standardfortheoptimalrealisation(newconstruction)orrenovation(buildingsinuse)andexploitationofbuildingswitha minimalenvironmentalimpact,basedonscienticallysubstantiatedsustainabilitymetricsandindicesencompassingarange ofenvironmentalissues,suchasenergyandwateruseassessment,theimpactonhealthandwell-being,pollution,transport, materials,waste,ecologyandmanagementprocesses. • BS(Businesssegment):ReportingstructuregroupingtogetherBD’sandBU’sactiveinthesamesector. • BU(Businessunit):Anyorganisationwithresources,staffandcapitalwhoseactivityisconcentratedonasingleintegrated corebusinessinagiventerritory. • Circularity: This means reusing raw materials, components and products after their useful life in order to preserve their value. • CO2PL(CO2PrestatieLadder):TheCO2PL(CO2PerformanceLadder)isasustainabilitymanagementtoolthathelpscompa- niesandgovernmentsreducetheirCO2emissionsandcosts.Itoperatesasacerticationandmanagementscheme,encour- agingorganisationstoadoptmoresustainablepracticesandreducetheircarbonfootprintacrosstheiroperationsandsupply chain. • Corporategovernance:Corporategovernancereferstothesystemofrules,practicesandprocessesbywhichacompanyis managed and monitored. • CPPT(CommitteeforPreventionandProtectionatWork):ItisaconsultativebodywithinBelgiancompanieswithatleast50 employees.Itsmaintaskistoactivelycontributetoimprovingthewell-beingofemployeesintheperformanceoftheirwork. Thisincludesaspectssuchashealth,safety,ergonomics,hygieneatwork,psychosocialaspectsandmakingtheworkplace attractive. • CSRD(CorporateSustainabilityReportingDirective):EUlegislationonESGdisclosuretocomeintoforcefrom2024.Thisdi- rective modernises and strengthens the rules governing the environmental and social information on which companies must report.Thenewruleswillprovideinvestorsandotherstakeholderswiththeinformationtheyneedtoassesstheimpactofcom- Our ambitions and achievements Management report Sustainability statements Financial statementsMessage from the Chairman and CEO Annual report 2024 - CFE 119 paniesonpeopleandtheenvironment,aswellastoevaluatethenancialrisksandopportunitiesarisingfromclimatechange andothersustainabilityissues. • DMA(DoubleMaterialityAssessment):assessesboththeimpactofthecompany’sactivitiesontheenvironmentandsociety (fromtheinsideout,impactmateriality)andtheimpactofenvironmentalandsocialissuesonthecompany’snancialperfor- mance(fromtheoutsidein,nancialmateriality). • DEI(Diversity,Equity&Inclusion): This concerns the involvement of different points of view and the avoidance of discrimina- tion,bypromotingdiversityinvariousareas,suchasgender,religiousbeliefsandorigins,aswellastheimplementationofa policyofinclusion. • DNSH(DoNoSignicantHarm):Theconceptof“DoNoSignicantHarm”(DNSH)isusedintheEUTaxonomyasoneofthecon- ditionsforclassifyinganactivityas“green”.Thismeansthataneconomicactivitymustnotonlymakeasubstantialcontribu- tiontooneormoreenvironmentalobjectives,butmustalsonotcausesignicantharmtoanyoftheseobjectives. • eNPS(employeeNetPromoterScore):Thisisanindicatorusedtomeasurethelikelihoodofyouremployeesrecommending yourorganisationasaplacetowork.TocalculatetheeNPS,employeesareaskedthefollowingquestion:“Onascaleof0to10, howlikelyareyoutorecommendourcompanyasagoodplacetowork?”Theresponsesarethenclassiedintothreecatego- ries: • Detractors(scoresfrom0to6):employeeswhoarenotverysatisedandwouldnotrecommendthecompany. • Passive(scoresof7to8):employeeswhoaresatisedbutnotenthusiastic,andwhowouldnotactivelyrecommendthe company. • Promoters(scoresof9to10):verysatisedemployeeswhowouldactivelyrecommendthecompany. TheeNPSiscalculatedbysubtractingthepercentageofdetractorsfromthepercentageofpromoters,givingascorebetween -100 and 100. • EPB(EnergyPerformanceofBuildings):Thisreferstotheefciencywithwhichbuildingsuseenergy. • EPD(EnvironmentalProductDeclaration): Standardised document providing detailed information on the environmental im- pactofaproductthroughoutitslifecycle. • ESG(Environment,SocialandGovernance):Thisisasetofcriteriausedtoassessacompany’ssustainabilityandethical impact • ESG(Policy):Statementsettingoutthecompany’sapproachtoenvironmental,socialandgovernanceissues,aswellasthe plan for achieving this, and the indicators used to measure progress. • ESRS(EuropeanSustainabilityReportingStandards):CompaniessubjecttotheCSRDwillhavetoreportinaccordancewith theEuropeanSustainabilityReportingStandards(ESRS).StandardsareadaptedtoEUpolicies,whiledrawingonandcontribut- ing to international standardisation initiatives. • EUTaxonomy:regulationsthatdeterminewhichinvestmentscanbeclassiedas‘green’andwhichcontributetotherealisa- tionoftheEUGreenDeal.Theclassicationisbasedontechnicalscreeningcriteria(TSC)andminimumcriteriatoavoidsignif- icantharm(DNSH). • Frequencyrate:Thefrequencyratemeasuresthenumberofaccidentsatworkresultinginatleastoneday’sabsencefrom workpermillionhoursworked.Itisusedtoassessthedegreetowhichemployeesareexposedtooccupationalrisks. • GHG-scope1:alldirectemissionsfromsourcesownedorcontrolledbythecompany(e.g.eet,fuelandnaturalgascombus- tion). • GHG-scope2:allindirectemissionsfromtheproductionofelectricitypurchasedbythecompany.Scope2emissionsoccur physicallyatthefacilitywheretheelectricityisgenerated. • GHG-scope2locationbased:Thismethodcalculatesemissionsusingtheaverageemissionfactoroftheelectricitynetwork wheretheenergyisconsumed.Itreectstheaverageemissionsintensityoflocalelectricitynetworks • GHG-scope2marketbased:Thismethodcalculatesemissionsbasedontheelectricitythatorganisationshavechosento purchase,oftenspeciedincontractsorinstrumentssuchasrenewableenergycerticates(RECs).Ittakesintoaccountthe company’sspecicenergysupplychoices. • GHG–scope3:indirectemissionsfromacompany’sactivities,suchasemissionsfromtheproductionofsourcedproducts (upstream)orfromproducts,servicesorprojectssoldbythecompany(downstream). • GHGprotocol(GreenhouseGasProtocol):Astandardisedglobalframeworkformeasuringandmanaginggreenhousegas (GHG)emissionsfromprivateandpublicsectoroperations,valuechainsandmitigationactions.Itprovidesthemostwidely used standards for GHG emissions accounting, helping companies, countries and cities to track their progress towards climate goals. • HumanRights:RightsasdenedintheUniversalDeclarationofHumanRights. • ILO(InternationalLabourOrganization):ThisisaspecialisedagencyoftheUnitedNations.Itsmandateistopromotesocial andeconomicjusticebyestablishinginternationallabourstandards • IRO(Impact,RisksandOpportunities); • Impacts:Theeffectsthatthecompany’sactivitieshaveontheenvironmentandsociety. • Risks:Thepotentialthreatsfacingthecompany,suchasclimateornancialrisks. • Opportunities: Potential opportunities for development and innovation • JV(JointVenture):Thisisacommercialpartnershipinwhichtwoormorecompaniesjoinforcestocarryoutajointproject. Our ambitions and achievements Management report Sustainability statements Financial statementsMessage from the Chairman and CEO Annual report 2024 - CFE 120 • KPI(KeyPerformanceIndicator):Thisisaameasureusedtoevaluatetheefciencyofacompany,aprojectoraspecic process. • Limitedassurance:Limitedassuranceisaformofauditinwhichtheauditorsprovideamoderateopiniononacompany’s nancialornon-nancialstatements.Thismeansthattheyhavenotobtainedenoughevidencetocompletelyguaranteethe veracityoftheinformation,buttheyhavecarriedoutbasicchecks. • NACEcode:ThisisaclassicationsystemforeconomicactivitiesusedinEurope • NFRD(Non-FinancialReportingDirective):TheNFRDisaEuropeandirectivethatrequireslargecompaniestopublishnon-- nancialinformation,suchastheirenvironmental,socialandgovernance(ESG)impact.Itaimstoimprovethetransparency andaccountabilityofcompanies. • NOSACQ(NordicOccupationalSafetyClimateQuestionnaire):NOSACQ-50isaquestionnaireusedtoassessthesafetycli- mateatwork.Itmeasuresco-workers’perceptionsofsecuritypolicies,proceduresandpracticesintheirorganisation. • nZEB(nearlyZeroEnergyBuildings):Anear-zeroenergybuilding(nZEB)isabuildingwithaveryhighenergyperformance. • OECD:(OrganisationforEconomicCo-operationandDevelopment): An intergovernmental organisation founded in 1961 to promotepoliciesthatimprovetheeconomicandsocialwell-beingofpeoplethroughouttheworld. • Reporting:Relatestonancialandnon-nancialreporting,withafocusonthematerialthemesidentiedintheDMA. • Riskmanagement: Structured risk management- • SBM(SustainableBusinessModel):Astrategicapproachthatintegratesenvironmental,socialandgovernance(ESG)criteria intothecompany’sactivitiesanddecisions.Theaimistocreatelong-termvaluewhileminimisingnegativeimpactsonthe environmentandsociety. • SBTi(ScienceBasedTargetsinitiative):aninitiativethatdenesbestpracticesintheareaofGHGemissionsreductionsand targets in line with the goals of the Paris Agreement. • SDGs(SustainableDevelopmentGoals):TheUnitedNationsSustainableDevelopmentGoalsareacalltoactiontopromote prosperitywhileprotectingtheplanetfromclimatechange.Theyencompassstrategiesthatsupporteconomicgrowthand meet social needs. • Severityrate:Theseverityratemeasurestheseriousnessofaccidentsatworkintermsofthenumberofworkingdayslostto temporaryincapacityperthousandhoursworked. • Sustainalytics:Acompanythatresearchesandassessesthesustainabilityoflistedcompanies,basedontheirenvironmental, socialandgovernance(ESG)performance. • TSC(TechnicalScreeningCriteria):TechnicalselectioncriteriadenedforeacheconomicactivityintheEUTaxonomyand usedtodeterminewhetheraparticularactivitycanbeclassiedas“green”. • UPSI/VBS(Unionprofessionnelledusecteurimmobilier,professionalunionoftherealestatesector): A Belgian organisation that represents the interests of real estate professionals. • Valuechain:Allactivitiesandprocessesbywhichacompanycreatesvalueforitscustomers.Thisincludesallstages,fromthe sourcingofrawmaterialstothedeliveryofthenalproductorservicetothecustomer. • ValueChain-upstream:Thisreferstothestagesandactivitiesthattakeplacebeforeanalproductorserviceisproduced. Thisincludesalloperationsrelatingtothesupplyofrawmaterials,inboundlogisticsandthepreparationprocessesrequiredto start production. • ValueChain-downstream:Thisreferstothestagesandactivitiesthattakeplaceaftertheproductionofanalproductor service. • WorksCouncil:Aworkscouncilisastaffrepresentationbodywithinacompany.Itresultsfromthemergerofstaffdelegates, theworkscouncil,theCHSCT(Health,SafetyandWorkingConditionsCommittee)andtradeuniondelegates Our ambitions and achievements Management report Sustainability statements Financial statementsMessage from the Chairman and CEO Annual report 2024 - CFE 121 5.2. Annex 2: List of references ESRS2BP-15a,ESRS2BP-15bi 74 ESRS2BP-15bii 75 ESRS2BP-29a,ESRS2BP-29b 75 ESRS2BP-210a,b,c&d,ESRS2BP-211a,11bi&11bii 76 ESRS 2 BP-2 16 76 ESRS 2 BP-2 17 77 ESRS2BP-213a,b&c;ESRS2BP-214a,b&c 77 ESRS 2 BP-2 15 77 ESRS 2 GOV-5 ; ESRS 2 IRO-1 53 d,e,f 78 ESRS 2 GOV-4 79 ESRS 2 SBM-1 40 a i,ii; ESRS 2 SBM-1 42 79 ESRS 2 SBM-1 40 a iii 79 ESRS 2 SBM-2 45 d 80 ESRS2SBM-142a,b 80 ESRS 2 SBM-1 42 c 80 ESRS 2 SBM-1 42 80 ESRS 2 BP-1 5c 80 ESRS 2 SBM-2 45 a i 81 ESRS 2 SBM-2 45 a 81 ESRS2SBM-245b 81 ESRS 2 SBM-2 45 a iv 81 ESRS 2 SBM-2 45 a v 81 ESRS 2 SBM-2 45 a 82 ESRS 2 SBM-2 45 a 82 ESRS 2 SBM-2 45 a ii 83 ESRS 2 SBM-2 45 a iii 83 ESRS 2 SBM-2 45 c ii 83 ESRS 2 SBM-2 45 d 83 ESRS 2 SBM-2 45 a v 84 ESRS 2 SBM-3 48 a 85 ESRS2SBM-348a;b;48cI,ii,iii,iv;d;f;g;h 87 ESRS 2 SBM-3 48 e 87 ESRS2IRO-153b,c,d,g 87 ESRS 2 IRO-1 53 a 88 ESRS 2 GOV-2 89 ESRS 2 GOV-1 & 3 89 ESRS E1 GOV-3 13 97 ESRS E1 SBM-3 18 97 ESRS E1 SBM-3 19c 98 ESRSE1SBM-319a,b,ESRSE1SBM-3AR7b 98 ESRSE1SBM-319c,ESRSE1SBM-3AR8b 98 ESRSE1.IRO-120a,b,c,AR9etAR12a 98 PhaseinrequirementsforESRSE1.IRO-1,AR11a,b,c&d,21, AR12a,b,c&d,21etAR15 98 ESRS E1-2 24, 25 98 ESRS E1-2 24 99 ESRS E1-1 16a 99 ESRS E1-1, 16 h & i 99 ESRS E1-4, 34 e & 16 a 99 ESRS E1-4, 34 e & 16 a,g 100 ESRS E1-4 33 100 ESRSE1-434b 100 ESRSE1-329a,ESRSE1-3AR21,ESRSE1-114,16b,j,ESRSE1-434f,16b 101 ESRSE1-329b 101 ESRSE1-329b,ESRSE1-434a,b 101 ESRSE1-3AR21,ESRSE1-433,ESRSE1-434b 101 ESRSE1-329b 101 ESRSE1-329a,ESRSE1-114,16b,j 102 ESRSE1-434a,b 102 ESRSE1-4AR25a,b 102 ESRS E1-3 29 ci, ESRS E1-1 16c 103 ESRS E1-1 16 f; ESRS E1-3 29 c ii,16 c & c iii,16 c 103 ESRS E1-1 16 d 103 ESRS E1-1 16 g 104 ESRSE1-6AR39b 104 ESRS E1-6 50 104 ESRSE1-644,46d;ESRSE1-648a,b,49a,b, 52 a,b,51,AR43c,AR45e,AR46j 105 ESRS E1-6 AR 41 105 ESRSE1-6AR39b 105 ESRS 2 BP-2 10 c 105 ESRS E1-6 45d 105 ESRSE1-6AR39b 105 ESRS 2 BP-2 10 c 106 ESRS E1-6 AR 46 i, 46 h 106 ESRS E1-6, AR 46 i 106 ESRS 2 BP-2 10 c, E1-6, AR 46 g 106 ESRSE1-6AR39b 106 ESRS E1-6 47, 42c 106 ESRS E1-6 53, 55 & AR55 107 ESRS E1-6 53 107 ESRS E1-6 53 107 ESRS E1-6 AR 55 107 ESRS E1-6 AR55 107 ESRS E1-7 107 ESRS E1-8 107 ESRSE1-966a,b,c,d,ESRSE1-9AR70ci,ESRSE1-9AR69a,b 107 Phase in requirements for ESRS E1-9 67, 68,69 & AR 72,73 108 ESRS E1-9 67e 108 ESRS 2 SBM-2 108 ESRS S1-SBM-3 109 ESRSS1-120a,b,c,ESRSS1-121 109 ESRS S1-1 17,18,19, ESRS S1-1 23 110 ESRS S1-1 22 110 ESRSS1-124a,b,c,d 110 ESRSS1-120b,ESRSS1-225,26,27 111 ESRS S1-3 31, 32 111 ESRS S1-3 32 111 ESRS S1-3 32 e 111 ESRS S1-3 33 111 ESRS S1-4 36, 37, 38, 39, 42 112 ESRS S1-4 43 112 ESRS S1-5 46 112 ESRS S1-5 47 112 ESRS S1-5 47 112 ESRS S1-6 49,ESRS S1-6 50 dii 112 ESRSS1-650a,b 113 ESRS S1-6 51 113 ESRS S1-6 50 di 113 ESRS S1-6 50 c 113 ESRS S1-6 50 e 113 ESRS S1-11 113 PhaseinrequirementsforESRSS1-1383b 113 Phase in requirements for ESRS S1-13 83 a, 84, 85 113 ESRS S1-14 87 114 ESRS S1-14 88 114 ESRS S1-17 114 ESRS 2 SBM-2 115 ESRS S2-SBM-3 11 a,c 115 ESRS S2-16, 17, 18, 19 115 ESRS S2-2 115 ESRS S2-3 27, 28 116 ESRS S2-4 117 ESRS S2-5 41 117 ESRS S2-5 40 117 ESRS S2-5 42 117 ESRSG1-215a,ESRSG1-215b 117 ESRSG1.GOV-1_5a,ESRSG1.GOV-1_5b 118 ESRSG1-19,ESRSG1-110g,ESRSG1-320,21a,21b,21c 118 ESRS G1-1_10a, ESRS G1-1_10c, ESRS G1-3_18a 119 ESRS G1-4_01, ESRS G1-4_02 119 Our ambitions and achievements Management report Sustainability statements Financial statementsMessage from the Chairman and CEO Annual report 2024 - CFE 122 5.3. Annex 3: List of omitted information Reference Justication for omission Reference Justication for omission ESRS2 BP-1 5d Notapplicable ESRS S1 3 34 Non-material data ESRS2 BP-1 5e Notapplicable ESRS S1 440b Non-material data ESRS 2 BP-2 AR2 Voluntaryreporting ESRS S1 4 41 Non-material data ESRS 2 GOV-2 AR6 Voluntaryreporting ESRS S1 4 AR 33, 35, 36, 40, 41 and 48 Voluntaryreporting ESRS 2 SBM-1 40 a iv Notapplicable ESRS S1 4 AR 43 Non-material data ESRS 2 SBM-2 45 c i Notapplicable ESRS S1 5 AR 49 Voluntaryreporting ESRS 2 SBM-2 45 c iii Notapplicable ESRS S1 6 52 Voluntaryreporting ESRS 2 IRO-1 53 h Notapplicable ESRS S1 7 Non-materialsub-theme ESRS 2 IRO-2 57 Notapplicable ESRS S1 8 Non-materialsub-theme ESRS 2 IRO-2 58 Voluntaryreporting ESRS S1 9 Non-materialsub-theme ESRS S1 10 Non-materialsub-theme ESRS E1 1-17 Notapplicable ESRS S1 12 Non-materialsub-theme ESRS E1 IRO-1 AR 11 Transitional implementation ESRS S1 13 Transitional implementation ESRS E1 IRO-1 21 Transitional implementation ESRS S1 14 89 and 90 Voluntaryreporting ESRS E1 IRO-1AR12b,c,d Transitional implementation ESRS S1 14 AR 81 and 94 Voluntaryreporting ESRS E1 IRO-1 AR15 Transitional implementation ESRS S1 15 Non-materialsub-theme ESRS E1 3 AR19d Voluntaryreporting ESRS S1 16 Non-materialsub-theme ESRS E1 4 AR 30 c Voluntaryreporting ESRS S1 17 Non-materialsub-theme ESRS E1 5 Non-materialsub-theme ESRS E1 5AR38b Voluntaryreporting ESRS S2 SBM311aiv,b,d,e Non-material data ESRS E1 7 Notapplicable SBM3 12.13 Non-material data ESRS E1 8 Notapplicable 1 AR 15,12,16 Voluntaryreporting ESRS E1 9 90 a - 100 a Notapplicable 2 24 Notapplicable ESRS E1 9AR71b Voluntaryreporting 3 29 Notapplicable ESRS E1 967(excepte) Transitional implementation 3 AR 23,24,25 Voluntaryreporting ESRS E1 9 AR72 Transitional implementation 4 AR 30,3,36,37,44 Voluntaryreporting ESRS E1 9 AR73 Transitional implementation 5 AR 45 Voluntaryreporting ESRS E1 9 AR 74 Voluntaryreporting ESRS E1 9 AR 76 Voluntaryreporting ESRS S3 Non-material theme ESRS E1 9 68 Transitional implementation ESRS E1 9 69 Transitional implementation ESRS S4 Non-material theme ESRS E2 Non-material theme ESRS G1 110b,d,e,f,h Non-material theme 1 11 Voluntaryreporting ESRS E3 Non-material theme 2 Non-material theme 318b,c Non-material theme ESRS E4 Non-material theme 3 19 Non-material theme 3 AR 7 Voluntaryreporting ESRS E5 Non-material theme 4 25 Voluntaryreporting 5 Non-material theme ESRS S1 1 AR10, 14 and 17 Voluntaryreporting 6 Non-material theme ESRS S1 2 29 Notapplicable ESRS S1 2 AR 25 and 26 Voluntaryreporting ESRS S1 3 AR 29 and 30 Voluntaryreporting Our ambitions and achievements Management report Sustainability statements Financial statementsMessage from the Chairman and CEO Annual report 2024 - CFE 123 5.4. Annex 4: Auditor’s report StatutoryAuditor’slimitedassurancereportontheconsolidatedsustainabilitystatementofCom- pagnied’EntreprisesCFESA/AannemingsmaatschappijCFENV Tothegeneralshareholders’meetingoftheCompany AspartofthelimitedassuranceengagementontheconsolidatedsustainabilitystatementofCompagnied’EntreprisesCFESA/ AannemingsmaatschappijCFENV(the“Company”orthe“Group”),weareprovidingyouwithourreportonthisengagement. WewereappointedbytheGeneralMeetingof2May2024,inaccordancewiththeproposaloftheBoardofDirectorsfollowingrec- ommendationoftheAuditCommitteeofCompagnied’EntreprisesCFESA/AannemingsmaatschappijCFENV,tocarryoutalimited assuranceengagementontheGroup’sconsolidatedsustainabilityinformation,includedinthesustainabilitystatementsofthean- nualreportasof31December2024andfortheyearthenended(the“SustainabilityStatement”). Ourmandateexpiresonthedateofthegeneralmeetingdeliberatingontheannualnancialstatementsfortheyearending31 December2026.WehavecarriedoutourassuranceengagementontheSustainabilityStatementoftheCompanyfor1consecutive nancialyear. Limitedassuranceconclusion We have conducted a limited assurance engagement on the SustainabilityStatementofCompagnied’EntreprisesCFESA/ Aannemingsmaatschappij CFE NV. Based on the procedures we have performed and the evi- dencewehaveobtained,nothinghascometoourattention thatcausesustobelievethattheSustainabilityStatement,inall material respects: • is not prepared in accordance with the requirements re- ferred to in Article 3:32/2 of the Belgian Code of Companies andAssociations,includingcompliancewithapplicable Europeansustainabilityinformationstandards(theEurope- anSustainabilityReportingStandards(“ESRSs”)) • isnotcompliantwiththeprocesscarriedoutbytheCom- pany(“theProcess”)toidentifytheinformationincludedin theSustainabilityStatementinaccordancewiththeESRS’s setoutinsection1.6.“IRO-1and2Doublematerialityassess- ment”oftheSustainabilityStatement”;and • isnotcompliantwiththerequirementsofArticle8ofEU Regulation2020/852(the“TaxonomyRegulation”)asdis- closedwithinsection2.1“EuropeanTaxonomyinformation (pursuanttoarticle8ofRegulation2020/852)”oftheSus- tainabilityStatement. Basisforconclusion We conducted our limited assurance engagement in accord- ance with International Standard on Assurance Engagements (ISAE)3000(Revised),Assuranceengagementsotherthanau- ditsorreviewsofhistoricalnancialinformation(“ISAE3000(Re- vised)”),applicableinBelgiumandissuedbytheInternational Auditing and Assurance Standards Board. Ourresponsibilitiesunderthisstandardarefurtherdescribed underthesection“StatutoryAuditor’sresponsibilitiesinrelation withthelimitedassuranceengagementonthesustainability information”. We have complied with all ethical requirements relevant to the assuranceofsustainabilityengagementinBelgium,including those relating to independence. ThermappliesInternationalStandardonQualityManagement 1(“ISQM1”),whichrequiresthermtodesign,implementand operateasystemofqualitymanagementincludingpoliciesor procedures regarding compliance with ethical requirements, professionalstandardsandapplicablelegalandregulatory requirements. WehaveobtainedfromtheCompany’sBoardofDirectorsand itsappointeestheexplanationsandinformationnecessaryfor our limited assurance engagement. Webelievethattheevidencewehaveobtainedissufcientand appropriatetoprovideabasisforourconclusion. Other matter Thescopeofourworkisonlyrestrictedtothelimitedassurance engagementontheCompany’sSustainabilityStatementwith respect to the current reporting period. Our limited assurance engagement does not extend to information relating to the comparativegures. ResponsibilitiesoftheBoardofDirectorsinrelationtothe preparationofsustainabilityinformation TheBoardofDirectorsoftheCompanyisresponsibleforde- signingandimplementingaprocesstoidentifytheinformation reportedintheSustainabilityStatementinaccordancewiththe ESRSandfordisclosingthisProcessinsection1.6.“IRO-1and2 Doublematerialityassessment”oftheSustainabilityStatement. Thisresponsibilityincludes: • understandingthecontextinwhichtheCompany’sactivi- tiesandbusinessrelationshipstakeplaceanddeveloping an understanding of its affected stakeholders. • theidenticationoftheactualandpotentialimpacts(both negativeandpositive)relatedtosustainabilitymatters,as well as risks and opportunities that affect, or could reason- ablybeexpectedtoaffect,theentity’snancialposition, nancialperformance,cashows,accesstonanceor cost of capital over the short-, medium-, or long-term; • theassessmentofthematerialityoftheidentiedimpacts, risksandopportunitiesrelatedtosustainabilitymattersby selectingandapplyingappropriatethresholds;and • makingassumptionsthatarereasonableinthecircum- stances. TheBoardofDirectorsoftheCompanyisfurtherresponsiblefor thepreparationoftheSustainabilityStatement,whichcontains Our ambitions and achievements Management report Sustainability statements Financial statementsMessage from the Chairman and CEO Annual report 2024 - CFE thesustainabilityinformationasdeterminedintheProcess: • • in accordance with the requirements referred to in Article 3:32/2 of the Belgian Code of Companies and Asso- ciations,includingcompliancewithapplicableESRS’s; • • incompliancewiththerequirementprovidedbyArticle 8ofEURegulation2020/852(the“TaxonomyRegulation”) asdescribedinsection2.1“EuropeanTaxonomyinformation (pursuanttoarticle8ofRegulation2020/852)”oftheSus- tainabilityStatement. Thisresponsibilityincludes: • designing, implementing and maintaining such internal controlthattheBoardofDirectorsdeterminesisnecessary toenablethepreparationoftheSustainabilityStatement that is free from material misstatement, whether due to fraud or error; and • theselectionandapplicationofappropriatesustainability reporting methods and making assumptions and estimates thatarereasonableinthecircumstances. TheBoardofDirectorsareresponsibleforoverseeingtheCom- pany’ssustainabilityreportingprocess. Inherentlimitationsinpreparingthesustainabilitystatement In reporting forward-looking information in accordance with ESRS,theBoardofDirectorsoftheCompanyisrequiredtopre- paretheforward-lookinginformationonthebasisofdisclosed assumptionsabouteventsthatmayoccurinthefutureand possiblefutureactionsbytheCompany.Actualoutcomesare likelytobedifferentsinceanticipatedeventsfrequentlydonot occurasexpected.Actualresultsarelikelytodifferfrompro- jectionsbecausethefutureeventswillnotgenerallyoccuras expected,andsuchdifferencescouldbematerial. StatutoryAuditor’sresponsibilitiesinrelationwiththelimited assuranceengagementonthesustainabilityinformation Ourresponsibilityistoplanandperformtheassuranceengage- menttoobtainlimitedassuranceaboutwhethertheSustaina- bilityStatementisfreefrommaterialmisstatement,whetherdue to fraud or error, and to issue a limited assurance report that includes our conclusion. Misstatements can arise from fraud or errorandareconsideredmaterialif,individuallyorintheaggre- gate,theycouldreasonablybeexpectedtoinuencedecisions ofuserstakenonthebasisoftheSustainabilityStatementasa whole. As part of a limited assurance engagement in accordance withISAE3000(Revised),asapplicableinBelgium,weexercise professional judgment and maintain professional skepticism throughout the engagement. The work performed in an en- gagementwithaviewtoobtaininglimitedassuranceisless extensive than in the case of an engagement with a view to obtainingreasonableassurance.Theproceduresperformed in a limited assurance engagement for which we refer to the ‘Summaryofworkcarriedout’sectionwhichdifferinnatureand timingarelessextensivecomparedtoareasonableassurance engagement.Wethereforedonotexpressareasonableaudit opinion in the framework of this engagement. Astheforward-lookinginformationincludedintheSustainability Statement,andtheassumptionsonwhichitisbased,relateto thefuture,theymaybeaffectedbyeventsthatmayoccurand/ orbyactionstakenbytheCompany.Actualresultsarelikelyto differ from the assumptions made, as the events assumed will notnecessarilyoccurasexpected,andsuchdifferencescould bematerial.Accordingly,ourconclusiondoesnotguarantee that the actual results reported will correspond to those con- tainedintheforward-lookingsustainabilityinformation. OurresponsibilitiesinrespectoftheSustainabilityStatement,in relation to the Process, include: • understandingtheProcessbutnotforthepurposeofpro- viding a conclusion on the effectiveness of the Process, including the outcome of the Process; and • designing and performing procedures to evaluate whether theProcessisconsistentwiththeCompany’sdescriptionof itsProcess,asdisclosedinsection1.6.“IRO-1and2Double materialityassessment”oftheSustainabilityStatement. OurotherresponsibilitiesinrespectoftheSustainabilityState- ment include: • understandingtheCompany’scontrolenvironmentandthe processesandinformationsystemsrelevanttotheprepa- rationofsustainableinformation,butwithoutevaluating thedesignofspeciccontrolactivities,obtainingsubstan- tive information on their implementation or testing the ef- fectiveness of the internal control measures in place; • identifyingareaswherematerialmisstatementsofsustain- abilityinformationarelikelytooccur,whetherduetofraud or error; and • designing and performing procedures responsive to where materialmisstatementsarelikelytoariseintheSustain- abilityStatement.Theriskofnotdetectingamaterial misstatement resulting from fraud is higher than for one resultingfromerror,asfraudmayinvolvecollusion,forgery, intentional omissions, misrepresentations, or the override of internal control. Summaryoftheworkperformed A limited assurance engagement involves performing proce- durestoobtainevidenceabouttheSustainabilityStatement. Theproceduresinalimitedassuranceengagementvaryin nature and timing from, and are less in extent than for a reason- ableassuranceengagement.Consequently,thelevelofassur- anceobtainedinalimitedassuranceengagementissubstan- tiallylowerthantheassurancethatwouldhavebeenobtained hadareasonableassuranceengagementbeenperformed. The nature, timing and extent of procedures selected depend onprofessionaljudgement,includingtheidenticationofdis- closureswherematerialmisstatementsarelikelytoariseinthe SustainabilityStatement,whetherduetofraudorerror. In conducting our limited assurance engagement, with respect to the Process, we: • ObtainedanunderstandingoftheProcessthrough: • requesting information to understand the sources of theinformationusedbymanagement(e.g.,stakehold- erengagement,businessplansandstrategydocu- ments),and • assessingtheCompany’sinternaldocumentationof its Process; and Our ambitions and achievements Management report Sustainability statements Financial statementsMessage from the Chairman and CEO Annual report 2024 - CFE • Evaluatedwhethertheevidenceobtainedfromourpro- cedureswithrespecttotheProcessimplementedbythe CompanywasconsistentwiththedescriptionofthePro- cesssetoutinsection1.6.“IRO-1and2Doublemateriality assessment”oftheSustainabilityStatement. In conducting our limited assurance engagement, with respect totheSustainabilityStatement,we: • ObtainedanunderstandingoftheCompany’sreporting processesrelevanttothepreparationofits’Sustainability Statementby: • interviewing management and relevant staff respon- sibleforconsolidatingandimplementinginternalcon- trolmeasuresrelatedtosustainabilityinformation; • whendeemedappropriate,obtainingsupportingdoc- umentation for the relevant reporting processes • EvaluatedwhethertheinformationidentiedbytheProcess isincludedintheSustainabilityStatement; • Evaluated the compliance of the structure and the prepa- rationofsustainabilityinformationwithESRSstandards; • Performedinquiresofrelevantpersonnelandanalytical proceduresonselectedinformationintheSustainability Statement; • Performedsubstantiveassuranceprocedures,basedona sample,onselectedinformationintheSustainabilityState- ment; • Foranumberoflocationscontributingtothequantitative informationincludedinthesustainabilityinformation,we carried out limited detailed testing of the data collection and calculation processes, as well as validation procedures related to the quantitative information in question, either on siteorthroughremoteconnection,basedonprofessional judgementandonasamplebasis; • Evaluated assurance information on the methods for de- veloping estimates and forward-looking information, as describedinthesection“Responsibilitiesofthestatutory auditor in relation to the limited assurance engagement on thesustainabilityinformation; • ObtainedanunderstandingoftheCompany’sprocessto identifytaxonomy-eligibleandtaxonomy-alignedeconom- ic activities and the corresponding disclosures in the Sus- tainabilityStatement; • Onasamplebasis,reconciledtheeconomicactivitieswith supportingdocumentationthatsubstantiatesthesubstan- tialcontribution,thedonotsignicantharmcontribution, and the minimum safeguard requirements; • Reconciled inputs to revenue, capital expenditure and op- eratingexpenses,withunderlyingnancialinformationof theCompany; Statementregardingindependence Ourauditrmandournetworkhavenotperformedanyen- gagementsthatareincompatiblewiththelimitedassurance engagement,andourauditrmhasremainedindependentof theCompanyduringthecourseofourmandate. Diegem, 28 March 2025 EY Réviseurs d’Entreprises SRL/EY Bedrijfsrevisoren BV StatutoryAuditor representedby MarnixVanDooren Partner Agissantaunomd’uneSRL Our ambitions and achievements Management report Sustainability statements Financial statementsMessage from the Chairman and CEO Annual report 2024 - CFE 126 Financial statements Our ambitions and achievements Management report Sustainability statements Financial statements Message from the Chairman and CEO Annual report 2024 - CFE 127 127 DEFINITIONS ................................................................................................. 128 CONSOLIDATED FINANCIAL STATEMENTS ................................................ 12 9 CONSOLIDATED STATEMENT OF INCOME ............................ 129 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME .. 129 CONSOLIDATED STATEMENT OF FINANCIAL POSITION .......... 130 CONSOLIDATED STATEMENT OF CASH FLOWS ..................... 131 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ........... 134 SHARE CAPITAL AND RESERVES .......................................... 134 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ...................... 135 INTRODUCTION ................................................................. 135 MAIN TRANSACTIONS IN 2024 AND 2023 WITH AN IMPACT ON THE SCOPE OF THE CFE GROUP ..................................... 135 1. GENERAL POLICIES ................................................................................ 138 2. SIGNIFICANT ACCOUNTING POLICIES ................................................ 13 9 3. CONSOLIDATION METHODS ................................................................ 15 4 4. SEGMENT REPORTING .......................................................................... 15 5 5. ACQUISITIONS AND DISPOSALS OF SUBSIDIARIES ........................... 160 6. O THER OPERATING INCOME AND EXPENSES ..................................... 16 0 7. PERSONNEL EXPENSES ...................................................................... .... 161 8. FINANCIAL RESULT ...................................................................... .......... 161 9. NON-CONTROLLING INTERESTS .......................................................... 16 1 10. EARNINGS PER SHARE .......................................................................... 16 2 11. INCOME TAX ....................................................................... .................. 163 12. INTANGIBLE ASSETS OTHER THAN GOODWILL .................................. 166 13. GOODWILL ...................................................................... ....................... 167 14. PROPERTY, PLANT AND EQUIPMENT ................................................... 16 8 15. INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD ................ 171 16 . OTHER NON-CURREN T FINANCIAL ASSETS ....................................... 178 17. CONSTRUCTION CONTRACTS ............................................................ 18 0 18. INVENTORIES ....................................................................... ................... 181 19. CASH AND CASH EQUIVALENTS .......................................................... 18 1 20. CAPITAL GRANTS ...................................................................... ........... 182 21. INFORMATION RELATED TO STOCK OPTION PLANS .......................... 182 22. EM PLOYEE BENEFITS ...................................................................... ....... 184 23. PROVISIONS OTHER THAN THOSE RELATING TO NON-CURREN T EMPLOYEE BENEFIT OBLIGATIONS ...................................................... 188 24. CONTINGENT ASSETS AND LIABILITIES .............................................. 18 8 25. NET FINANCIAL DEBT ........................................................................ .... 190 26. FINANCIAL RISK MANAGEMENT .......................................................... 19 3 27. OTHER COMMITMENTS GIVEN ........................................................... 200 28. OT HER COMMITMENTS RECEIVED ............................................ ......... 200 29. LITIGATION ...................................................................... ...................... 201 30. RELATED PARTIES ...................................................................... ............ 201 31. AUDIT FEES ...................................................................... ..................... 202 32. SUBSEQUENT EVENTS ................................................................... ....... 202 33. COMPANIES OWNED BY THE GROUP ................................................. 203 ALTERNATIVE PERFORMANCE MEASURES RECONCILIATION ................. 208 ST ATEMENT ON THE TRUE AND FAIR NATURE OF THE FINANCIAL STAT EMENTS AND THE TRUE AND FAIR NATURE OF THE PRESENTATION IN THE MANAGEMENT REPORT ................................. 210 GENERAL INFORMATION ABOUT THE COMPANY ...................................... 2 11 PARENT COMPANY FINANCIAL STATEMENTS ............................................. 6 Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 128 128 DEFINITIONS Working capital requirement Inventories + trade and other operating receivables + contracts assets + other current non- operating assets – trade and other operating payables – current tax liabilities – contracts liabilities – other current non-operating liabilities Capital employed Equity of real estate development segment + net financial debt of real estate development segment Net financial debt (NFD) Current and non-current financial liabilities - cash and cash equivalents Net financial surplus Cash and cash equivalents – current and non-current financial liabilities Income from operating activities Revenue + other operating income + raw materials, consumables, services and sub- contracted work + remunerations and social security payments + other operating expenses + depreciation and amortisation Operating Income (EBIT) Income from operating activities + share of profit (loss) of investments accounted for using equity method EBITDA Income from operating activities + depreciation and amortisation Return on equity (ROE) Net income, share of the group / equity, share of the group (opening) A VERAGE INTEREST RATE ON GROSS The contractual interest rate (weighted average) of financial debt in force during the FINANCIAL DEBT financial year after taking hedging instruments into account. Financial debt includes drawdowns on credit facilities, bank loans and leases. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 129 129 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED STATEMENT OF INCOME C ONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 1 The section ‘Income and expenses associated with financing activities’ presented in 2023 has been broken down into ‘Interest income’ and ‘Interest expenses’ as described in note 2.b. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements For the period ended December 31 (in € thousands) Notes 2024 2023 restated 1 Revenue 4 1,182,169 1,248,470 Other operating income 6 38,730 54,487 Raw materials, consumables, services and subcontracted work (842,639) (929,988) Personnel expenses 7 (240,232) (236,497) Other operating expenses 6 (88,159) (86,939) Depreciation and amortisation 12-14 (21,832) (21,348) Income from operating activities 28,037 28,185 Share of profit (loss) of investments accounted for using equity method 15 3,968 4,839 Operating income 32,005 33,024 Interest income 8 12,944 11,880 Interest expenses 8 (15,386) (11,041) Other financial result 8 7,240 (2,832) Financial result 4,798 (1,993) Result before tax 36,803 31,031 Income tax expenses 11 (12,840) (8,305) Result for the period 23,963 22,726 Non-controlling interests 9 - 53 Result for the period - share of the group 23,963 22,779 Earnings per share (share of the group) (EUR) (diluted and basic) 10 0.97 0.91 For the period ended December 31 (in € thousands) Notes 2024 2023 Result for the period - share of the group 23,963 22,779 Result for the period 23,963 22,726 Changes in fair value related to financial derivatives (2,070) (5,441) Exchange differences on translation (561) 1,681 Deferred taxes 11 - 1,360 Other elements of the comprehensive income to be reclassified to profit or loss in subsequent periods (2,631) (2,400) Re-measurement on defined benefit and contribution plans 21 (31) (2,400) Deferred taxes 11 48 414 Other elements of the comprehensive income not to be reclassified to profit or loss in subsequent periods 17 (1,986) Total other elements of the comprehensive income recognized directly in equity (2,614) (4,386) Comprehensive income : 21,349 18,340 - Share of the group 21,351 18,423 - Attributable to non-controlling interests (2) (83) Comprehensive income (share of the group) per share (EUR) (diluted and basic) 10 0.86 0.74 Annual report 2024 - CFE 130 130 CONSOLIDATED STATEMENT OF FINANCIAL POSITION 2 Negative investments accounted for using the equity method, previously presented under ‘Non-current provisions’ in their entirety, are, from 2024, presented firstly as a deduction from any non-current financial assets relating to these investments and the balance under ‘Non-current provisions’. The comparative figures per 31 December 2023 have been restated as described in note 2.b. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements For the period ended December 31 (in € thousands) Notes 2024 2023 restated 2 Intangible assets 12 5,981 3,881 Goodwill 13 23,929 23,894 Property, plant and equipment 14 96,023 95,087 Investments accounted for using equity method 15 176,382 185,365 Other non-current financial assets 16 120,248 118,553 Non-current financial derivatives 26 126 336 Other non-current assets 13,961 11,321 Deferred tax assets 11 9,017 8,529 Non-current assets 445,667 446,966 Inventories 18 141,375 161,844 Trade and other operating receivables 265,481 313,580 Contract assets 17 62,696 68,411 Other current non-operating assets 7,329 5,637 Current financial derivatives 26 77 2,657 Current financial assets 5,612 3,162 Cash and cash equivalents 19 173,510 154,092 Current assets 656,080 709,383 Total assets 1,101,747 1,156,349 Share capital 8,136 8,136 Share premium 116,662 116,662 Retained earnings 136,412 122,962 Treasury shares 21 (4,250) (4,410) Defined benefit and contribution pension plans 22 (12,019) (12,035) Reserves related to financial derivatives 3,536 5,606 Exchange differences on translation (709) (151) Equity – share of the group 247,768 236,770 Non-controlling interests 7 (377) Equity 247,775 236,393 Employee benefit obligations 22 8,163 9,401 Non-current provisions 23 19,445 17,807 Other non-current liabilities 25,535 26,499 Non-current financial liabilities 25 184,830 190,965 Non-current financial derivatives 26 652 125 Deferred tax liabilities 11 5,247 3,150 Non-current liabilities 243,872 247,947 Current provisions 23 16,644 15,274 Trade and other operating payables 289,176 317,761 Contract liabilities 17 208,844 201,618 Current tax liabilities 6,342 9,358 Current financial liabilities 25 30,375 56,394 Current financial derivatives 26 - - Other current non-operating liabilities 58,719 71,604 Current liabilities 610,100 672,009 Total equity and liabilities 1,101,747 1,156,349 Annual report 2024 - CFE 131 131 CONSOLIDATED STATEMENT OF CASH FLOWS Acquisi tions and disposals of subsidiaries net of cash acquired do not include entities that are not a business combination (Real Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements For the period ended December 31 (in € thousands) Notes 2024 2023 (restated) Income from operating activities 28,037 28,185 Depreciation and amortisation of (in)tangible assets and investment property 12-14 21,832 21,348 (Decrease)/increase of provisions 582 (4,639) Impairments on assets and other non-cash items (2,008) (4,721) Loss/(profit) on disposal of tangible and financial fixed assets (1,198) (929) Dividends received from investments accounted for using equity method 15 17,447 16,115 Cash flows from (used in) operating activities before changes in working capital 64,692 55,359 Decrease/(increase) in trade receivables and other current and non- current receivables 59,136 3,485 Capital decrease/(increase) of investments accounted for using equity method in the real estate development segment (4,506) (71,421) Repayment/(New borrowings given) to investments accounted for using equity method in the real estate development segment 1,517 (3,788) Decrease/(increase) in inventories 15,408 (12,623) Increase/(decrease) in trade payables and other current and non-current payables (38,086) 37,612 Income tax (paid)/received (12,856) (8,375) 85,305 249 Cash flows from (used in) operating activities Investments (16,571) (25,303) Purchases of intangible assets and of property, plant and equipment (10,846) (19,696) Increase of the investment percentage net of cash acquired/sold Capital increase of investments accounted for using equity method 15 (671) (1,550) New borrowings given to investments accounted for using equity method 15 (5,054) (4,057) Divestments 8,123 14,267 Proceeds from sales of intangible assets and property, plant and equipment 2,345 3,013 Decrease of the investment percentage net of cash acquired/sold Capital decrease of investments accounted for using equity method 15 3,444 Repayment of borrowings given to investments accounted for using equity method 15 1,784 11,254 Cash flows from (used in) investing activities (8,448) (11,036) Interest paid (15,386) (11,041) Interest received 13,088 11,281 Other financial expenses and income received/(paid) 1,806 (2,287) Receipts from new borrowings 24 44,599 86,327 Repayment of borrowings 24 (92,235) (37,996) Buy back of own shares 2 0 (835) Dividends received/(paid) (9,921) (9,969) (58,049) 35,480 18,808 24,693 19 154,092 127,149 Cash flows from (used in) financing activities Net increase/(decrease) in cash position Cash and cash equivalents, opening balance Effects of exchange rate changes on cash and cash equivalents 610 2,250 Cash and cash equivalents, closing balance 19 173,510 154,092 550 0 0 0 0 Annual report 2024 - CFE 132 132 Estate segment). They are not considered as investment operations and are directly reflected in cash flows from operating activities. We refer to section 2.d. Y. The reconciliation elements between the changes in working capital (as defined in the Alternative Performance Indicators) in the consolidated statement of financial position and the consolidated statement of cash flows mainly concern allocations and reversals of impairments, changes in consolidation scope, translation differences and reclassifications between balance sheet items. In order to improve the understanding of the cash flows relating to the financing of the Real Estate Development activities carried out through companies accounted for using the equity method and included in operating cash flow, decreases and increases in the capital of investments accounted for using the equity method in the Real Estate Development segment (-71. 421 thousand in 2023) and repayments and grants of loans to equity-accounted investments in the Real Estate Development segment (-3,788 thousand euros in 2023) were presented on separate lines. Until 2023, these were included under the heading Decrease/(increase) in current and non-current trade and other receivables. Comments on the consolidated statement of income 2024 : - Turnover was down -5.3% on the previous year, particularly in the Construction & Renovation and Multi-technical segments. Turnover in the real estate development segment is not representative of the segment's activity, given that a significant proportion of BPI's operations are carried out in companies accounted for by the equity method. - Income from auxiliary activities concerns, in particular, re-invoicing to temporary companies and gains on the disposal of fixed assets. Income from auxiliary activities in 2023 was particularly high as it was influenced by the disposal of 50% of the stake in BPI Chielmna (EUR 14.2 million) and by the recycling of positive translation adjustments following the sale of CMT and CTE and the liquidation of CFE Hungary. - Raw materials, consumables, services and sub-contracted work decreased by -9.4%. Personnel costs rose by 1.4%, mainly due to the impact of salary inflation compensated by a decrease in the number of employees. - Net financial income was positive at EUR 4.8 million (-EUR 2.0 million in 2023) and is explained by: o the increase in interest expense, linked on the one hand to corporate financing and on the other to the financing of projects wholly owned by BPI, which is more than offset by: o higher financial income from shareholder loans to jointly-controlled subsidiaries, o interest income on current accounts and bank deposits; as well as by: o the recycling of translation adjustments on the repayment of inter-company loans in foreign currencies (treated as permanent financing) and exchange gains realised following the appreciation of the PLN. Comments on the consolidated statement of financial position as at December 31, 2024 : - Intangible fixed assets increased slightly due to investments in the implementation of an ERP system by the Construction & Renovation segment. - Goodwill mainly relates to the VMA and MOBIX segments, and is stable compared with 2023. - Tangible fixed assets remains stable and consist mainly of the net book values of the head offices of several Belgian subsidiaries of the group, the equipment and vehicles. - Equity-accounted investments and other financial assets mainly include the shareholdings and shareholder loans towards Deep C Holding, Green Offshore, Greenstor and the jointly controlled real estate development project companies. The item "Investments accounted for using the equity method" has been reduced by the distribution of dividends by Green Offshore and jointly-controlled property development companies in Luxembourg, which exceeded the profit for the year from investments accounted for using the equity method. - Inventories consist mainly of property projects developed by BPI Real Estate and its fully consolidated subsidiaries. The reduction in inventories is largely due to the delivery of three large-scale residential projects in Poland (Cysta, Panoramiqa and Bernardowo). BPI Real Estate and its fully consolidated subsidiaries did not make any major acquisitions during the year. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 133 133 - Trade and other receivables fell significantly, particularly in the Construction & Renovation segment and at VMA (-EUR 48.1 million). - The cash position includes EUR 82.9 million available at CFE SA. The cash-position balance is broken down into temporary companies and foreign entities not included in the cash pooling. - Equity (group share) increased from EUR 236.8 million as at 31 December 2023 to EUR 247.8 million as at 31 December 2024. The variation is explained by three main elements: Income for the year (EUR 24.0 million), the distributed dividends (-EUR 10.0 million) and the impact of the change in value of hedging instruments (-EUR 2.1 million). - Financial debt totalled EUR 215 million, down by EUR 32 million, mainly due to improved working capital in the Construction & Renovation and Multi-technical segments. - Trade payables and other operating liabilities fell by -EUR 28.6 million. Comments on the consolidated statement of cashflows 2024 : - Operating income on activities remained stable at of EUR 28.0 million. - Depreciation of (in)tangible fixed assets and investment property remained close to the previous year's level, in the absence of major investments or disposals. - Net charges to provisions and write-downs on assets and other non-cash items are not material in 2024. - The significant improvement in operating cash flow (+EUR 85.1 million) is mainly due to stable EBITDA at +EUR 49.9 million (+EUR 49.5 million in 2023), supported by an improvement in working capital requirements. The latter fell by -EUR 20.6 million as a result of a reduction in current and non-current trade and other receivables (+EUR 59.1 million), mainly attributable to the Construction & Renovation and Multi-technical segments, and a reduction in inventories (+EUR 15.4 million), partly offset by a fall in current and non-current trade and other payables (-EUR 38.1 million), mainly attributable to the Construction & Renovation and Multi-technical segments. - Net capital increase of equity-accounted investments in the Property Development segment, which is limited to EUR 4.5 million. In 2023, this mainly concerned the injection of funds for the acquisition of the Kronos project site (EUR 64 million). - Repayment/(granting) of loans to equity-accounted investments in the Real Estate Development segment; These mainly include the partial repayment of the loan granted to BPI Chmielna (EUR 7.7 million) and new advances granted in connection with the Roots (EUR 2.3 million) and Brouck'R (EUR 2.2 million) projects. - Cash flows from investing activities decreased slightly to a net amount of EUR (8.4) million, including: o purchases of (in)tangible fixed assets, which include capitalised costs related to the implementation of a new ERP system in the Construction & Renovation segment and the acquisition of equipment and materials for the Construction & Renovation and Multi-technical segments. o loans allocated to equity-accounted investments, i.e. loans granted to Deep C Holding (EUR 2.7 million) and Greenstor (EUR 2.3 million). o the reduction in the capital of equity-accounted investments relates exclusively to Hofkouter NV, a company in the Construction & Renovation segment. o partial repayment of loans granted to LuWa (EUR 0.9 million) and Green Offshore (EUR 0.8 million). - Cash flow from (used in) financing activities amounted to -EUR 58.0 million, mainly due to the net repayment of borrowings (-EUR 47.6 million) and distribution of dividends for the 2023 financial year (-EUR 9.9 million). Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 134 financial derivatives interests CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (in € thousands) Share capital Share premium Retained earnings Treasury shares Defined benefit and contribution pension plans Reserves related to financial derivatives Exchange differences on translation Equity – share of the group Non-controlling interests Equity December 2023 8,136 116,662 122,962 (4,410) (12,035) 5,606 (151) 236,770 (377) 236,393 Comprehensive income for the period 0 0 23,963 0 16 (2,070) (558) 21,351 (2) 21,349 Dividends paid to shareholders 0 0 (9,921) 0 0 0 0 (9,921) 0 (9,921) Movements related to treasury shares and share-based payments 0 0 0 160 0 0 0 160 0 160 Change in consolidation scope and other movements 0 0 (592) 0 0 0 0 (592) 386 (206) December 2024 8,136 116,662 136,412 (4,250) (12,019) 3,536 (709) 247,768 7 247,775 Changes in the fair value of defined benefit or contribution pension plans and of derivative instruments are explained in notes 22 “Employee benefits” and 15 “Investments accounted for using equity method” respectively while the movements related to treasury shares are explained in note 21 "Information on the stock option plans", respectively. (in € thousands) Share capital Share premium Retained earnings Treasury shares Defined benefit and contribution pension plans Reserves related to Exchange differences on translation Equity – share of the group Non-controlling Equity December 2022 8,136 116,662 105,696 (3,735) (10,050) 9,687 (1,743) 224,653 (127) 224,526 Comprehensive income for the period 0 0 22,779 0 (1,985) (4,081) 1,710 18,423 (83) 18,340 Dividends paid to shareholders 0 0 (9,969) 0 0 0 0 (9,969) 0 (9,969) Movements related to treasury shares and share-based payments 0 0 0 (675) 0 0 0 (675) 0 (675) Change in consolidation scope and other movements 0 0 4,456 0 0 0 (118) 4,338 (167) 4,171 December 2023 8,136 116,662 122,962 (4,410) (12,035) 5,606 (151) 236,770 (377) 236,393 S HARE CAPITAL AND RESERVES The share capital on 31 December 2024 was divided into 25,314,482 ordinary shares. These shares are without nominal value. The owners of ordinary shares have the right to receive dividends and have one vote per share in Shareholders’ General Meetings. A dividend corresponding to €0.40 gross per share was proposed by the Board of Directors and will be submitted to the shareholders’ for approval at the general meeting. The dividend is estimated at €9,921 thousand based on the outstanding number of shares (excluding own shares) at December 31 st , 2024. The appropriation of income was not included in the financial statements at 31 December 2024. In respect of the 2023 financial year, a dividend of €9,921 thousand , corresponding to €0.40 gross per share was distributed in May 2024. Annual report 2024 - CFE 135 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS INTRODUCTION Compagnie d’Entreprises CFE SA (hereinafter referred to as the "Company" or "CFE") is a public limited company incorporated under Belgian law and headquartered in Belgium. The consolidated financial statements for the year ended 31 December 2024 include the financial statements of the company, its subsidiaries and its interests in companies accounted for using equity method (the "CFE group"). CFE is 62.12% controlled by Ackermans van Haaren (XBRU BE0003764785) whose ultimate controlling shareholder is Stichting Administratiekantoor “Het Torentje”. CFE and Ackermans & van Haaren are companies listed on Euronext Brussels. The Board of Directors authorised the publication of the CFE group's consolidated financial statements on 17 March 2025. The consolidated financial statements should be read in conjunction with the management report of the Board of Directors. MAIN TRANSACTIONS IN 2024 AND 2023 WITH AN IMPACT ON THE SCOPE OF THE CFE GROUP T RANSACTIONS IN 2024 1. Real Estate Development segment During the year 2024, the changes in scope within the real estate development segment of the CFE group are the following: - The BPI Project 2 Sp. z o.o. company, a 100% owned subsidiary of the CFE Group and consolidated using the global integration method is renamed BPI Piano Forte Sp. z o.o. . This company remains consolidated using the global integration method. - The BPI Project 8 Sp. z o.o. company, a 100% owned subsidiary of the CFE Group and consolidated using the global integration method is renamed BPI Wieslawa Sp. z o.o. . Moreover, BPI Real Estate Poland Sp. z o.o. sold 50% of its shares in BPI Wieslawa Sp. z o.o., reducing its stake from 100% to 50%. This company which was previously consolidated using the global integrati on m ethod, is now consolidated using the equity method. - The BPI Project 9 Sp. z o.o. company is renamed BPI Panowamiq Sp. z o.o. . This company remains consolidated using t he gl obal integration method. - The BPI Real Estate Poland Sp. z o.o. company acquired a 100% stake in the newly created BPI Project 10. This company has been consolidated using the global integration method. - The BPI Real Estate Poland Sp. z o.o. company acquired a 100% stake in the newly created BPI Project 11. This company has been consolidated using the global integration method. - The Mimosas Real Estate S.A.R.L. company, a fully-owned subsidiary of the CFE Group and consolidated using the global integration method, acquired a 100% stake in the newly created Mimosas Coliving S.A.R.L.. This company has b een cons olidated using the global integration method. - The BPI Real Estate Poland Sp. z o.o. company liquidated its stake (80%) in the BPI Jaracza Sp. z o.o. company. This compa ny w as consolidated using the global integration method. - The BPI Real Estate Poland Sp. z o.o. company liquidated its stake (100%) in the BPI Vilda Park Sp. z o.o. company. This company was consolidated using the global integration method. - The BPI Real Estate Poland Sp. z o.o. company liquidated its stake (100%) in the BPI Barska Sp. z o.o. company. This company was consolidated using the global integration method. - The BPI Real Estate Luxembourg SA company liquidated its stake (50%) in the Immo Marial S.A.R.L. company. This company was integrated using the equity method. - The Project Van Wellen SA company liquidated its stake (33%) in the La Réserve Promotions Développement S.A.R.L. company. This company was integrated using the equity method. 2. Multitechnics segment During the year 2024, the changes in the consolidation scope in the Multitechnics segment of the CFE Group are as follows: Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 136 - The VMA Sustainability Fund I NV company, a 100% owned subsidiary of the CFE Group and consolidated using the global integration method is renamed Pulse . This company has been transferred in the Investments & Holding segment. - The VMA Sud SA company, a 100% owned subsidiary of the CFE Group, has transferred, with retroactive effect as of 1 January 2024, some of its activities to VMA SA, itself a 100% owned subsidiary of the Group CFE. These companies remain consolidated using the global integration method. 3. Construction & Renovation segment During the year 2024, the changes in the consolidation scope in the Construction & Renovation segment of the CFE Group are as follows: - The Wood Shapers SA company, a 100% owned subsidiary of the CFE Group and consolidated using the global integration method, liquidated its stake (50%) in the Wood Gardens SA company. This company was integrated using the equity method. 4. Investments & Holding segment During the year 2024, the changes in the consolidation scope in the Investments & Holding segment of the CFE Group are as follows : - The CFE Group liquidated its stake (25%) in the PPP Betrieb Schulen Eupen SA company. This company was integrated using the equity method. - The CFE Group liquidated its stake (19%) in the PPP Schulen Eupen SA company. This company was integrated using the equity method. TRANSACTIONS IN 2023 1. Real Estate Development segment During the year 2023, the main changes in scope within the real estate development segment of the CFE Group are the following: - The BPI Real Estate Luxembourg SA company, a fully-owned subsidiary of the CFE Group and consolidated using the global integration method, acquired a 100% stake in the newly created JFK Développement 1 S.à r.l. and JFK Développement 2 S.à r.l. companies. These companies have been consolidated using the global integration method; - The BPI Real Estate Luxembourg SA company, a fully-owned subsidiary of the CFE Group and consolidated using the global integration method, acquired a 57,45% stake in the newly created Kronos RE S.à r.l., subsequently renamed JFK Real Estate S.à.R.L.. This companies has been consolidated using the equity method; - The BPI Real Estate Belgium SA company, a fully-owned subsidiary of the CFE Group and consolidated using the global integration method, sold its stake (40%) in the Barbarahof NV company. This company was integrated using the equity method. - The BPI Real Estate Poland Sp. z o.o. company, a fully-owned subsidiary of the CFE Group and consolidated using the global integration method, sold 10% of its shares in the BPI Obrzezna Sp. z o.o. company to decrease its stake from 100% to 90%. This company remains consolidated using the global integration method. The impact of this transaction is presented in the consolidated statement of changes in shareholders' equity under "Changes in consolidation scope and other movements"; - BPI Real Estate Poland Sp. z o.o., a wholly-owned subsidiary of the CFE Group and fully consolidated, sold 50% of its shares in BPI Chmielna Sp. z o.o., reducing its stake from 100% to 50%. This company was fully consolidated until 31 December 2023, and the income statement was fully consolidated for the year 2023. However, following the change in the percentage of control during the fourth quarter, in the consolidated statement of financial position as at 31 December 2023, CFE exclusively includes its share in the equity of BPI Chmielna under investments accounted for using the equity method (see note 15 "Investments accounted for using the equity method" in this report). - The BPI-Revive Matejki Sp. z o.o. company, a 50% owned subsidiary of the CFE Group and integrated using the equity method is renamed Cavallia Sp. z o.o. ; - The LRP Development BVBA company, a 33% owned subsidiary of the CFE Group and integrated using the equity method, has been absorbed by the La Réserve Promotions NV company, itself a 33% subsidiary of the CFE Group and integrated using the equity method. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 137 2. Multitechnics segment During the year 2023, the main changes in the consolidation scope in the Multitechnics segment of the CFE Group are as follows: - The VMA Nizet SA company, a fully-owned subsidiary of the CFE Group and consolidated using the global integration method, has been absorbed by the VMA Druart SA company, itself a fully-owned subsidiary of the CFE Group and consolidated using the global integration method. Following this merger by absorption, the legal name of the VMA Druart SA company was changed to VMA Sud SA ; - The Mobix Remacom NV and Mobix Stevens NV companies, fully-owned subsidiaries of the CFE Group and consolidated using the global integration method, have been absorbed, with retroactive effect as of 1 January 2023, by the Mobix Engema SA company, itself a fully-owned subsidiary of the CFE Group and consolidated using the global integration method. Following this merger by absorption, the legal name of the Mobix Engema SA company was changed to Mobix SA; - The CFE Contracting SA company, a fully-owned subsidiary of the CFE Group and consolidated using the global integration method, acquired a 100% stake in the newly created VMA Sustainability Fund I NV company. This company has been consolidated using the global integration method. 3. Construction & Renovation segment During the year 2023, the company CFE Contracting SA, a 100% subsidiary of CFE Group sold its entire stake in the company Compagnie Tunisienne d’entreprise (49.90%). This company was 100% consolidated using the global integration method. 4. Investments & Holding segment During the year 2023, the main changes in the consolidation scope in the Investments & Holding segment of the CFE Group are as follows : - Rent-A-Port, 50% owned by the CFE Group and integrated using the equity method, sold its stake in BSTOR NV to the newly created company GreenStor NV, 50% owned by the CFE Group and integrated using the equity method. Following this sale, Rent-A-Port was renamed Deep C Holding ; - The stake of Deep C Holding, 50% owned by the CFE Group and integrated using the equity method, in Infra Asia Investment Hong Kong Ltd was diluted from 94% to 84% following the $23.8 million capital increase in which it did not take part of. The impact of this transaction had a positive effect of €4,171 thousand on the CFE Group’s shareholders’ equity, as presented in the consolidated statement of changes in shareholders’ equity (on the line « Changes in consolidation scope and other movements »). - The company Construction Management Tunisie SA, held at 99.96% by the Group CFE were sold. This company was consolidated using the global integration method. - The company CFE Hungary Epitoipari KFT held at 100% by the Group CFE were dissolved. This company was consolidated using the global integration method. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 138 1. GENERAL POLICIES IFRS AS ENDORSED BY THE EUROPEAN UNION The accounting principles used at 31 December 2024 are the same as those used for the consolidated financial statements at 31 December 2024, except for the standards and/or amendments to standards described below as endorsed in the European Union, mandatorily applicable as of 1 January 2024. STANDARDS AND INTERPRETATIONS APPLICABLE FOR THE ANNUAL PERIOD BEGINNING ON OR AFTER 1 JANUARY 2024 - Amendments to IAS 1 Presentation of Financial Statements : classification of Liabilities as Current or Non-current and Non- current Liabilities with Covenants; - 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. The application of these standards and interpretations had no material impact on the consolidated financial statements of CFE. STANDARDS AND INTERPRETATIONS PUBLISHED, BUT NOT YET APPLICABLE FOR THE ANNUAL PERIOD BEGINNING ON 1 JANUARY 2024 The Group did not apply early any of the following new standards and interpretations, application of which was not mandatory at 31 December 2024. - Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability (applicable for annual periods beginning on or after 1 January 2025) - IFRS 18 Presentation and Disclosure in Financial Statements (applicable for annual periods beginning on or after 1 January 2027, but not yet endorsed in the EU) - IFRS 19 Subsidiaries without Public Accountability – Disclosures (applicable for annual periods beginning on or after 1 January 2027, but not yet endorsed in the EU) - Amendments to IFRS 9 and IFRS 7 Classification and Measurement of Financial Instruments (applicable for annual periods beginning on or after 1 January 2026, but not yet endorsed in the EU) - Annual Improvements – Volume 11 (applicable for annual periods beginning on or after 1 January 2026, but not yet endorsed in the EU) - Amendments to IFRS 9 and IFRS 7 Contracts Referencing Nature-dependent Electricity (applicable for annual periods beginning on or after 1 January 2026, but not yet endorsed in the EU) Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 139 2. SIGNIFICANT ACCOUNTING POLICIES A) A DDITIONAL INFORMATION ON THE IMPACT OF THE MACROECONOMIC ENVIRONMENT ON THE CONSOLIDATED FINANCIAL STATEMENTS This environment is prompting some of CFE's customers, particularly property developers, to postpone the start-up of projects for which building permits have already been obtained, and calls for tender for new projects. B) RESTATEMENT OF COMPARATIVE FIGURES Following the review of the 2023 annual report by the Financial Services and Markets Authority ("FSMA") in 2024, the CFE group has adapted the presentation of certain headings in the financial statements, which had the following effects on the comparative figures - On the consolidated income statement : o the item "Income and expenses from financing activities", which amounted to € 839 thousand at 31 December 2023, has been broken down into "Interest income" (€ 11,880 thousand) and "Interest expense" (-€ 11,041 thousand), and o The item “Other financial income and expenses" has been renamed "Other financial result”. - On the consolidated statement of financial position: o An amount of € 24,237 thousand corresponding to equity-accounted investments with a negative value has been moved from "Non-current provisions" to "Other non-current financial assets" (as a deduction from our receivables from the companies concerned). o This reclassification also results in a decrease in the balance sheet total by this amount. - Consolidated statement of cash flows: o Net cash flow from (used in) operating activities: § To improve understanding of cash flows relating to the financing of real estate development activities carried out through equity-accounted companies and included in operating cash flow, capital decreases and increases for equity-accounted investments in the "Real Estate Development" segment (-€ 71,421 thousand in 2023) and loan repayments and grants to equity-accounted investments in the "Real Estate Development" segment (-€ 3,788 thousand in 2023) have been presented on separate lines. § Until 2023, these were included under the heading Decrease/(increase) in current and non-current trade and other receivables. § This reclassification has no impact on total cash flow from (used in) operating activities or on the associated financial covenants. o Cash flow from (used in) investment activities: § The item "Change in percentage interest net of cash acquired" (€ 0.00 thousand at 31 December 2023) has been split between "Acquisition of percentage interest net of cash acquired/transferred" and "Disposal of percentage interest net of cash acquired/transferred”. § The item "Decrease/(increase) in capital of investments accounted for using the equity method" (-€ 1,550 thousand at 31 December 2023) has been split between "Increase in capital of investments accounted for using the equity method" (-€ 1,550 thousand) and "Decrease in capital of investments accounted for using the equity method" (€ 0.00 thousand). § The item "Repayment /(granting) of loans allocated to investments accounted for using the equity method" (-€ 7,197 thousand at 31 December 2023) has been split between "Granting of loans allocated to investments accounted for using the equity method" (-€ 4,057 thousand) and "Repayment of loans allocated to investments accounted for using the equity method" (€ 11,254 thousand). Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 140 C) ADDITIONAL INFORMATION ON THE ENVIRONMENTAL IMPACT OF THE GROUP When assessing climate-related issues, the following points should be taken into account: - The CFE Group has set itself clear objectives to limit its direct negative impact on the climate by focusing on its direct CO 2 emissions (scope 1 and 2), its water consumption and its waste production. CFE's first objective is to reduce CO 2 emissions linked to the transport of employees and materials by 40% before 2030 (compared with 2020). The fleet of cars and equipment is regularly being replaced by electric vehicles, for example. CFE has not identified any assets whose economic lifetime should be reduced. These are mainly leasing contracts valued under property, plant and equipment (note 14 - rights of use). The other actions concern raising awareness or switching to alternative means of transport, which are included in the Group's mobility plan. This plan takes into account all aspects of mobility (TCO, taxes, etc.) and does not involve any particular costs or investments. Reducing energy consumption is a challenge for both construction sites and head offices. Here too, the aim is to reduce C0 2 emissions by 40% by 2030. To limit this, on-site consumption is monitored daily to prevent energy wastage, solar panels are being installed on the site barracks and more efficient generators are being used. There are no major costs associated with these actions, as the reduction in consumption roughly offsets the investment in equipment. These amounts are marginal. At the same time, a switch to green energy has already been in place since 2020. The relocation of CFE and its subsidiaries BPC, BPI, CLE, VMA and Van Laere to new buildings that consume very little energy (notably Wood Hub), as well as the renovation of other group headquarters, has also significantly reduced the group's energy consumption. CFE has not identified any assets whose economic lifetime should be reduced. In terms of reducing water consumption and waste production, the actions undertaken on site do not entail any significant costs or specific investments. - At the same time, the CFE group's activities will be developed to reduce costs in terms of CO2 emissions, particularly in terms of the choice of materials and transporting materials and waste in the Construction & Renovation and Multi- technical segments. It is also expected that the proportion of renovation and energy-efficiency renovation work will increase as the regulatory framework evolves. In 2024, CFE has set itself the objective of reducing its CO2 emissions (scope 3) by 20% before 2030 (compared to 2024). The financial impact of the choice of materials or the development of new approaches to transport is estimated at the project submission stage and then incorporated into the commercial offer submitted to the customer. This study is carried out on a project-by-project basis, so margins are re-evaluated at the start of each new order. On the other hand, a residual risk is the cost of the inefficiencies inherent in learning new production techniques or new approaches to logistics. This is because it is not always possible to anticipate (both at contractual level and when preparing for project implementation) and quantify with sufficient accuracy. The real estate development business systematically includes solutions for reducing the energy consumption of buildings during the development of new projects. In addition, renovation projects for existing buildings are becoming increasingly common. Once the land has been acquired to develop a project, a feasibility study is carried out. The cost price of the project is estimated and incorporated into the commercial offer made to customers. The assets related to these activities are therefore the Mobix fleet of vehicles and equipment, as well as the head office buildings of the CFE group entities. Given the factors described above, at the end of 2024 the CFE group does not anticipate replacing assets used in the operation of its business through an investment plan or allocating provisions for the decommissioning of assets. For the purposes of impairment testing, the cash flows generated by these three segments were estimated on the basis of a three-year plan. The aforementioned factors have been taken into account to estimate sales and margin trends based on information currently available. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 141 D) ACCOUNTING POLICIES AND METHODS (A) STATEMENT OF COMPLIANCE The consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS) approved by the European Union. (B) BASIS OF PRESENTATION The financial statements are stated in thousands of euros, rounded to the nearest thousand. Equity instruments and equity derivatives are stated at cost where they do not have a quoted market price in an active market and where other methods of reasonably estimating fair value are clearly inappropriate and/or inapplicable. Accounting policies are applied consistently. The financial statements are presented before the appropriation of parent-company income proposed to the Shareholders' General Meeting. (C) MAIN JUDGEMENTS AND ASSUMPTIONS The preparation of financial statements according to the IFRS standards requires the use of estimates, as well as the formulation of judgments and assumptions that affect the amounts shown in those financial statements, particularly with regard to the following items: - the measurement of provisions and post-employment obligations (we refer to the disclosure 22 Employee benefits) ; - the measurement of income or losses on construction contracts using the percentage of completion method. We refer to the disclosure 17 Construction contracts. Income from construction contracts is calculated on the basis of the percentage of completion of the project multiplied by the estimated income on completion. This includes identified additional costs as well as any penalties for delay or compensation provided for contractually in accordance with Group rules. Salary and equipment expenses not allocated to projects are excluded from the percentage-of-completion calculation; - the evaluation of revenues from real estate development projects. Sales are determined based on the sold percentage of the projects; the estimated margin on the entire project is applied. The profitability of projects is re-estimated at least three times a year in order to integrate market developments based on internal knowledge and available external data (i.e. the market price for each type of property depending on its characteristics). Revenues (and costs) are therefore revised to reflect changes in the scope of the project (volume, project design, etc.), price changes and other project events; - the assessment of the value of real estate development assets (refer to notes "15. Investments accounted for using the equity method", "16. Other non-current financial assets", and "18. Inventories"). o Projects under construction and/or built but not sold. Regular review of project profitability analyses ensures that future cash flows from projects will cover investments made in real estate development projects, whether wholly owned by CFE or in partnerships. If the analysis reveals a risk of impairment on a project, BPI requests a valuation of the project from an external expert. o Projects under review. BPI ensures that the net book value of the project is lower than its resale value (without taking into account the potential issuance of construction permits). - estimates used in impairment tests (we refer to the disclosure 13 Goodwill) ; - the valuation of financial instruments at fair value (we refer to the disclosure 26 Financial risk management) ; - the assessment of control. In this respect, the CFE group takes into account the statutes, in particular concerning decision- making affecting the daily management of the subsidiary as well as specific clauses (right of veto, etc.); - the qualification of the nature of the transaction as a business combination or an acquisition of assets when a company is acquired. These estimates assume the operation is a going concern and are made on the basis of the information available at the time they were established. Estimates may be revised if the circumstances on which they were based alter or if new information becomes available. Actual results may be different from these estimates. (D) CONSOLIDATION PRINCIPLES The consolidated financial statements include the financial statements of the CFE group and the financial statements of its subsidiaries and the entities over which it has control. The CFE group controls an entity if : - it has power over the entity ; Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 142 - it is exposed to, or entitled to, variable returns from the controlled entity ; - it has the ability to exert power over the entity in order to influence the returns obtained. If the CFE group does not have the majority of voting rights in an entity, it is presumed to have enough rights to exert power over the entity if it has the ability to manage the core businesses of the entity on its own. The CFE group takes into account all facts and circumstances when it assess whether the voting rights held are sufficient to give the power to manage the entity, including the following: - the voting rights held by the CFE group compared to the voting rights held by the other partners and how there are spread among them ; - the potential voting rights held by the CFE group and by other stakeholders or other parties ; - the rights arising from other agreements ; - other facts and circumstances, if any, that prove that the CFE group has the ability (or otherwise) to manage the entity’s core businesses when decisions have to be taken, including voting trends at previous shareholder meetings. The CFE group consolidates the subsidiary from the date on which it obtains control, and ceases to consolidate it when the group no longer controls the entity. In particular, the income and expenses of a subsidiary acquired or sold during the financial year are included in the consolidated statement of income and in other elements of the consolidated statement of comprehensive income from the date the CFE group acquires control of the subsidiary until the date on which it ceases to control it. If necessary, adjustments are made to statutory accounts of subsidiaries in order to align their accounting methods with those used by the group. All assets and liabilities, equity, revenue, expenses and cash flows related to transactions between group companies are eliminated in the consolidated financial statements. Changes to the group’s interest in a subsidiary that do not result in a loss of control are recognized as equity transactions. The carrying amounts of the group’s interests and non-controlling interests are adjusted to reflect changes in their relative interests in the subsidiary. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity. When the CFE group grants an option to sell to the non-controlling interests of a subsidiary (i.e. where the non-controlling interests have a "put"), the related financial liability is initially deducted from non-controlling interests in equity. Associated companies are entities in which the CFE group exercises a significant influence. Significant influence is the power to take part in financial and operating policy decisions of a company without, however, exercising control or joint control over these policies. A joint venture is an arrangement whereby the parties having joint control over the entity have rights to the entity’s net assets. A joint control is the sharing of the control over an entity among different parties based on legal agreements and where all decisions related to core businesses require the agreement of all parties. Assets, liabilities, revenue and expenses from associates and joint ventures are accounted for using equity method in the consolidated financial statements unless the interest in the associate is, partly or fully, classified as held-for-sale. In that case, it is accounted for in accordance with IFRS 5. Under the equity method, an investment in an associate or joint venture is first recorded at cost in the consolidated financial statements and then adjusted to record the share of the group in the net result and in the comprehensive income of the associate or joint venture. If the group’s share in the losses of an associate or joint venture is greater than its participation, the CFE group ceases to recognize its share in the future losses. If applicable, the share of losses is first deducted from the financial assets related to the associated company. In the absence of financial assets or when the losses exceed the financial assets, a provision is made. Additional losses are recognized only to the extent that the CFE group has entered into a legal or implicit obligation, or has made payments on behalf of the associate or joint venture. A participation in an associate or a joint venture is recognized under the equity method from the date when the entity becomes an associate a joint venture. When acquiring the participation in an associate or a joint venture, any surplus of the cost of the participation over the share of the net fair value of the identifiable assets and liabilities of the entity is recognized as goodwill, which is included in the carrying amount of the participation. Any surplus of the group’s share of the net fair value of the identifiable assets and liabilities over the cost of the participation, after revaluation, is immediately recognized in the consolidated statement of income of the financial year in which the participation was acquired. A joint operation is a partnership in which the parties who exercise joint control over the company have rights to the assets and obligations with respect to the entity’s liabilities. Joint control is the contractually agreed sharing of control over an entity, which only exists if decisions with regard to the relevant activities require the unanimous consent of the parties sharing control. When Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 143 an entity of the CFE group entity starts its activities in the context of a joint operation, the CFE group, as a co-participant, recognizes the following items in respect to its interests in the joint operation: - its assets, including its share of any assets held jointly ; - its liabilities, including its share of any liabilities incurred jointly ; - its revenue from the sale of its share of the output arising from the joint operation ; - its share of the revenue from the sale of its share of the output by the joint operation ; - its expenses, including its share of any expenses incurred jointly. (E) FOREIGN CURRENCIES (1) TRANSACTIONS IN FOREIGN CURRENCIES Transactions in currencies other than the euro are recognized at the exchange rate on the transaction date. Monetary assets and liabilities denominated in foreign currencies are converted at the closing rate. Gains and losses resulting from these transactions, as well as the conversion of monetary assets and liabilities denominated in foreign currencies, are recognized in the consolidated statement of income. Non-monetary assets and liabilities denominated in foreign currencies are converted at the foreign exchange rate on the transaction date. (2 ) FINANCIAL STATEMENTS OF FOREIGN ENTITIES The assets and liabilities of the companies of the CFE group whose functional currencies are other than the euro are converted into euros at the exchange rate on the balance sheet date. The income statements of foreign entities, excluding foreign entities in hyperinflationary economies, are converted into euros at an average exchange rate for the year (approximating the foreign exchange rates prevailing at the dates of the transactions). Components of shareholders’ equity are converted at historical rates. The conversion differences arising from this conversion are recognized in the other elements of the comprehensive income, and are accumulated in a separate equity reserve, i.e., ‘exchange differences on translation’. These differences are recognized in the consolidated statement of income of the financial year during which the entity is sold or liquidated. (3) EXCHANGE RATES CurrenciesClosing rate 2024 Average rate 2024 Closing rate 2023 Average rate 2023 Polish Zloty 4,27 4,31 4,34 4,54 U.S. Dollar 1,04 1,08 1,11 1,08 Tunisian Dinar 3,31 3,37 3,41 3,36 Romanian Leu 4,97 4,97 4,98 4,95 British Pound 0,83 0,85 0,87 0,87 Vietnamese Dong 26.531,00 27.117,91 26.883,00 25.773,48 Units of foreign currency per euro (F) INTANGIBLE ASSETS (1) RESEARCH AND DEVELOPMENT COSTS Expenditures on research activities, undertaken with the prospect of gaining new scientific or technical knowledge and understanding are recognized in the consolidated statement of income as an expense as incurred. Development costs, whereby research results are applied to the planning or design of new or improved processes such as IT tools, are recognised as an asset if the process is technically and commercially feasible, the company has sufficient resources to complete the development, the attributable expenditure can be reliably identified, the CFE Group intends to complete and use the related intangible asset, and the intangible asset will generate future financial benefits through internal use. Capitalized expenditures include all costs directly attributable to the asset necessary for its creation, production and prepar ation in view of its intended use. Other development expenditures are recognized as an expense as incurred. Development costs recognized as an asset are included in the consolidated statement of financial position at their acquisition cost less accumulated depreciation (see below) and impairment. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 144 (2) RECOGNITION AND MEASUREMENT OF LICENSES All intangible assets are capitalized only if it is probable that future economic benefits will flow to the entity and if its cost can be measured reliably. These criteria are applicable on initial recognition and for subsequent expenditures. All intangible assets are accounted for at historical cost less accumulated depreciation and impairment losses. Historical cost includes the purchase price of licenses as well as costs incurred during the implementation period of the software. Implementation costs include the costs of suppliers or consultants working on the project as well as the direct salary costs of staff members whose main task is the implementation of the tool. (3) SUBSEQUENT EXPENDITURES Subsequent expenditures on intangible assets are recognized as an asset only if it allows the asset to generate future economic benefits beyond the performance level that was defined at the outset. All other expenditures are recognized when incurred. (4) DEPRECIATION Intangible fixed assets are amortised on a straight-line basis over their estimated useful life. Across the CFE group, these are essentially made up of software licences with an estimated useful life ranging from 3 to 5 years. (G) PROPERTY, PLANT AND EQUIPMENT (1) RECOGNITION AND MEASUREMENT All property, plant and equipment are capitalized only if it is probable that future economic benefit will flow to the entity and its cost can be measured reliably. These criteria are applicable at initial recognition and in relation to subsequent expenditures. All property, plant and equipment are included in the consolidated statement of financial position at their historical acquisition cost less accumulated depreciation and impairment losses. Historical cost includes the original purchase price, borrowing costs incurred during the construction period, and related direct costs (e.g. non recoverable taxes and transport costs). The cost of assets produced by the company includes the cost of materials, direct labor costs and an appropriate proportion of overheads. (2) SUBSEQUENT EXPENDITURES Subsequent expenditures are only recorded as an asset only if it allows the asset to generate future economic benefits beyond the performance level that was defined at the outset. Repairs and maintenance costs, which do not increase the future economic benefits of the asset to which they relate, are recognized as costs when incurred. (3) DEPRECIATION Depreciation is calculated from the date on which the asset is ready to be used. Depreciation is calculated according to the straight-line method, and on the basis of the estimated useful economic life of these assets, i.e.: trucks : 5 years other vehicles : 3 to 5 years other equipments : 5 years IT hardware : 3 years office equipment : 5 years office furniture : 10 years renovation of buildings/new buildings : 20-33 years cranes : 8-12 years with/without residual value of 1% excavators : 7 years without residual value tracklayers : 10 years with residual value of 5% containers and site installations : 5 years various site equipments : 5 years Land is not depreciated as it is deemed to have an indefinite life. (H) LEASES Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 145 The CFE group acts mainly as a lessee under lease contracts. Leases are recognized in the consolidated statement of financial position as rights of use and lease obligations at the present value of the future lease payments at a pre-determined discount rate. The CFE Group uses an incremental borrowing rate that differs depending on the nature of the asset underlying the contract. The discount rate is revised to the remaining rents in either of the following situations to revalue the rental liability: - to each lease where a substantial change in the term of the lease has occurred but has not resulted in the recognition of a separate lease ; - to new contracts booked after the date on which this rate was revised. Accrued rights of use are depreciated on a straight-line basis over their useful life, or over the term of the lease if the lease does not provide for transfer of ownership at the end of the lease term, while the corresponding obligations are recognized as financial debts. The lease payments associated for lease contracts of up to 12 months’ duration and lease contracts of low-value underlying assets are expensed over the period in which the asset is used. All minimum lease payments are recorded partly as financing cost and partly as depreciation of the outstanding obligation, which results in a constant periodic interest on the remaining balance of the obligation. Financial expenses are charged directly in the consolidated statement of income. Where a lease contract is terminated before the lease term has expired, any compensation paid to the lessor is expensed in the period in which the lease contract is terminated. (I) FINANCIAL ASSETS Each category of investments is recognized at its fair value upon the initial recognition of the asset. The measurement method will evolve according to the categories stated below : (1) INVESTMENTS IN DEBT SECURITIES AND OTHER INVESTMENTS Investments in debt securities are presented as financial assets and are measured at their amortized cost, determined on the basis of the “effective interest rate method” if the two conditions below are met: - the “Solely payments of principal and interests” criterion as defined by IFRS 9; - the assets are held for collection. The effective interest rate method is used to calculate the amortized cost of a financial asset or liability and to allocate financial income or financial expense during the period under review. The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts over the future expected life of the financial instrument or, where appropriate, over a shorter period, in order to obtain the net book value of the financial asset or liability. Profit or loss is recognized in the consolidated statement of income. Impairment losses are recognized in the consolidated statement of income. (2) CASH AND CASH EQUIVALENTS We refer to paragraph (L) (3) TRADE RECEIVABLES We refer to paragraph (K) (4) FINANCIAL ASSETS DESIGNATED AT FAIR VALUE THROUGH PROFIT AND LOSS Derivative instruments are recognized at fair value through the consolidated statement of income, unless there is documentation of hedge accounting (we refer to paragraph W). (J) INVENTORIES Raw materials are measured at weighted average cost or net realizable value if the latter is lower. The cost of land, buildings under construction, and buildings intended for sale are valued at their individualized cost or net realizable value if the latter is lower. This includes the cost of land, construction costs, development costs, and project monitoring costs. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 146 The net realizable value corresponds to the estimated selling price in the normal course of business after deducting estimated completion costs and costs necessary to complete the sale. (K) TRADE RECEIVABLES Current trade receivables are measured at amortized cost, which is generally identical to their nominal value less any impairment losses. The measurement of financial assets is made on the basis of the estimated loss model, which requires taking the discounted value of the estimated losses into account if the debtor proves to be in default. The estimated losses are calculated on the basis of the weighted average of the losses to be incurred according to several occurrence scenarios. This analysis is carried out on a case-by-case basis for project. (L) CASH AND CASH EQUIVALENTS Cash and cash equivalents include cash and term deposits with an original maturity date of less than three months. (M) IMPAIRMENT OF NON-FINANCIAL ASSETS The carrying amounts of non-current assets (with the exception of financial assets that fall within the scope of IFRS 9, deferred taxes and non-current assets held for sale) are reviewed at each closing date to determine whether there is any indication that an asset has lost value. If any such indication exists, the asset’s recoverable amount is estimated. For intangible assets with an indefinite useful life and goodwill, the recoverable amount is estimated at each closing date. An impairment loss is recognized whenever the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. Impairment losses are recognized in the consolidated statement of income. (1) ESTIMATES OF RECOVERABLE AMOUNTS The recoverable amount of non-financial assets is the greater of the fair value less costs for selling the asset and its value in use. Value in use is the present value of estimated future cash flows. In order to determine the value in use, estimated future cash flows are discounted using a pre-tax interest rate that reflects both current market interest rates and risks specific to the asset. For assets that do not generate cash flows themselves, the recoverable amount is determined for the cash-generating unit to which the assets belong. (2) REVERSAL OF IMPAIRMENT With the exception of goodwill for which impairment losses are never reversed, impairments on non-financial assets are only reversed if there has been a change in the estimates used to determine the recoverable amount. An asset impairment can only be reversed to the extent that the asset’s carrying amount, which has increased after the reversal of an impairment loss, does not exceed the net carrying amount of the amortization that would have been determined, if no amortization would have been recognized for this asset. (N) PURCHASE OF TREASURY SHARES When CFE shares are bought back by the company or a company of the CFE group, the amount paid, including costs directly attributable to the acquisition, is recognized as a deduction from equity. The proceeds from the sale of shares are directly included in the total equity, with no impact on consolidated statement of income. if treasury shares are reissued, any difference between the carrying amount and the consideration is recognized as share premium. (O) PROVISIONS Provisions are made if the company has a legal or an implicit obligation as a result of events that have occurred in the past, if it is probable that an outflow of resources generating economic benefits will be required to settle the obligation, and if the amount of the obligation can be reliably estimated. The amount recorded as provision corresponds to the best estimate of the necessary expenditure to settle the current obligation at the balance sheet date. This estimate is obtained by using a pre-tax interest rate that reflects both the current market assessments and the specific debt risks. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 147 Provisions for restructuring are made if the company has approved a detailed and formal restructuring plan, if the restructuring has either started or has been announced publicly, and if the employees affected have been notified of the plan main features. Provisions are not set aside for costs that relate to the company's normal activities. Current provisions are provisions directly linked to each business line’s own operating cycle, whatever the expected time of settlement of the obligation. Provisions for after-sales service cover the obligations of the entities of the CFE group within the framework of the statutory guarantees relating to completed projects. They are estimated statistically on the basis of expenses incurred in previous years or individually on the basis of specifically identified problems. Provisions for after-sales services are provided from the start of the work. Provisions for litigation with regard to activities mainly relate to disputes with customers, subcontractors, co-contractors or suppliers. Other provisions for current risks mainly consist of provisions for delay penalties and other risks related to operations. Non-current provisions correspond to provisions not directly linked to the operating cycle and whose maturity generally exceeds one year. (P) EMPLOYEE BENEFITS (1) POST-EMPLOYMENT BENEFITS Post-employment benefits include pension plans and life insurance. The company operates a number of defined-benefit and defined-contribution pension plans throughout the world. In Belgium, some pension schemes based on defined contribution plans are subject to a minimum guaranteed return by the employer and are therefore qualified as defined benefit plans. The assets of these plans are generally held by separate institutions and are generally financed through contributions from the subsidiaries concerned and from employees. These contributions are determined on the basis of recommendations from independent actuaries. Post-employment benefits are either funded or non-funded. a) Defined contributions plans Contributions to these pension plans are recognized as an expense in the consolidated statement of income when incurred. b) Defined benefits plans For these pension plans, costs are estimated separately for each plan using the projected unit credit method. The projected unit credit method considers each period of service as giving rise to an additional unit of benefit entitlement and measures each unit separately. Under this method, the cost of providing pensions is charged to the consolidated statement of income so as to spread the cost evenly over the remaining careers of employees covered by the plan, in accordance with the advice of actuaries who carry out a full assessment of these plans every year. The amounts charged to the consolidated statement of income consist of current service cost, interest cost, the expected return on plan assets and past service cost. The pension obligations recognized on the consolidated statement of financial position are measured as the present value of the estimated future cash outflows, discounted at a rate corresponding to the yield on high-quality corporate bonds with a maturity similar to that of the pension obligations, less any unrecognized past service costs and the fair value of plan assets. Actuarial gains and losses are calculated separately for each defined-benefit plan. Actuarial gains and losses comprise the effects of differences between actuarial assumptions and actual figures, and the effects of changes in actuarial assumptions. Actuarial gains and losses on commitments or assets related to post-employment benefits and resulting from adjustments based on experience and/or changes in actuarial assumptions are recognized in other elements of the consolidated statement of comprehensive income in the period in which they arise, and are the object of a separate reserve in equity. These differences and the changes in the recognized asset limit are presented in the consolidated statement of comprehensive income. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 148 Interest expenses resulting from the accretion effect relating to pension obligations and similar liabilities, and financial income resulting from the expected return on plan assets, are recognized in the consolidated statement of income under financial items. The introduction of or changes to a new post-employment benefit plan or other long-term plans may increase the present value of the obligation with respect to defined-benefit plans for services rendered in previous periods, i.e. the past service cost. The past service cost related to post-employment benefit plans is recognized in income on a straight-line basis over the average period until the related benefits are received by employees. Benefits received after the adoption of or changes to a post- employment benefit plan, and past service costs relating to other long-term benefits, are immediately taken to income. Actuarial calculations related to post-employment obligations and other long-term benefits are carried out by independent actuaries. Bonuses granted to company employees and senior executives are based on targets relating to key financial and non-financial indicators. The estimated amount of bonuses is recognized as an expense in the year to which they relate. (Q) FINANCIAL LIABILITIES (1) LIABILITIES AT AMORTIZED COST Interest-bearing borrowings are recognized at their fair amount less attributable transaction costs. Any difference between this net amount (after transaction costs) and repayment value is recognized in the consolidated statement of income over the life of the loan, using the effective interest-rate method. See paragraph J (2) for the definition of this method. (2) FINANCIAL LIABILITIES DESIGNATED AT FAIR VALUE THROUGH PROFIT AND LOSS Derivative instruments are recognized at fair value through the consolidated statement of income, unless there is documentation of hedge accounting (we refer to paragraph X). (R) TRADE AND OTHER PAYABLES Trade and other current payables are recognized at amortized cost. (S) INCOME TAXES Income tax for the financial year comprises current and deferred tax. Income tax is recognized in the consolidated statement of income, except to the extent that it relates to items recognized directly in equity or in the other elements of the consolidated statement of comprehensive income. In this case, deferred tax is also recognized in these elements. Current tax is the expected tax payable on the taxable income for the past year, as well as any adjustment to taxes paid or payable with regard to previous years. It is calculated using the valid tax rates at the balance sheet date. Deferred tax is calculated using the liability method for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts. The applicable tax rates at the closing date are used to calculate deferred tax assets and liabilities. Under this method, the company is required to make a provision for deferred taxes for the difference between the fair value of the net assets acquired and their tax base, in the event of a business combination. The following temporary differences are not taken into account: non-deductible goodwill, the initial recognition of assets or liabilities that do not affect accounting profit or taxable profit, and differences relating to participations in subsidiaries to the extent that they will probably not reverse in the foreseeable future. A deferred tax asset is only recognized to the extent that it is probable that future taxable profit will be available to offset the tax advantage. A deferred tax asset is reduced to the extent that it is no longer likely that the related tax benefit will be realized. (T) REVENUE FROM CONSTRUCTION AND SERVICE CONTRACTS If the profit and loss that result from a construction contract can be estimated reliably, contract revenue and expenses, including borrowing costs incurred if the contract exceeds the accounting period, are recognized in the consolidated statement of income over time, in proportion to the contract's percentage of completion at the closing date. The percentage of completion is calculated as the proportion between the contract costs at the closing date and the total estimated contract costs. Most of the income is gradually recognized if one of the following criteria is met: Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 149 - the customer simultaneously receives and consumes the benefits generated by the service provided by the company as it is implemented; - the service provided by the company creates or enhances an asset over which the customer obtains control progressively as it is being created or enhanced; - the service provided by the company creates an asset without possible alternative use by the company, and the latter has an enforceable right to payment for the service completed to date. (1) CONTRACT COSTS Contract costs are recognized as an expense in the consolidated statement of income for the financial year in which the services to which they relate are provided, and the incurred costs that relate to future contract activities are capitalized if the entity is expecting to recover them. A correction will be made for the cost of equipment that has been purchased but not yet manufactured, or that is being manufactured, at the reporting date. In the event that the forecast at the completion of the construction work shows a deficit, the expected loss on completion is immediately recognized as an expense. (2) CONTRACT REVENUE Revenue from a construction contract includes the revenue initially defined in the contract, as well as any modifications to the work specified in the contract, claims and performance bonuses to the extent that it is highly probable that there will be no significant reversal in the cumulative recognized revenue when the uncertainty associated with the variable components is subsequently resolved. If the outcome of a construction contract cannot be reliably estimated, contract revenue is recognized to the extent that the contract costs incurred are likely to be recovered. The transaction price is determined as the amount that reflects the consideration to which the entity expects to be entitled in exchange for providing the promised goods and services to the customer. A modification to the contract may lead to an increase or decrease in the transaction price. It relates to an instruction from the customer with regard to the scope of the work defined by the contract. In applying this principle, performance bonuses and claims are generally considered to be included in the transaction price only if an agreement has been made with the customer. The most common variable components, such as the price of the materials and remuneration of site personnel should only be included in the transaction price if it is highly probable that there will be no subsequent significant downward adjustment to the revenue recognized. Performance bonuses constitute a part of the contract revenue if the contract's percentage of completion indicates that the specified performance level will actually be reached or exceeded, and the amount of the performance bonus can be reliably determined. (3) CONTRACT BALANCES A contract asset is the entity's right to a consideration in exchange for the transfer of the goods or services to a customer. If the entity provides goods or services to a customer before the customer has paid for the consideration, or before the consideration is due, a contract asset is recognized for the contingent consideration acquired. A contract liability is the entity's obligation to transfer goods or services to a customer, for which the group has received a consideration prior to the transfer of goods or services to that customer. A contract liability is recognized when the consideration is received in advance, or when the payment is due (whichever is earlier). Contract liabilities are recognized as revenue when the entity has completed the contract. Work in progress reflects the net position of assets and liabilities on contracts. A provision for onerous contracts is made if the expected economic benefits from a contract are lower than the unavoidable costs of meeting the contractual obligations. Unavoidable contract costs reflect the least net cost of exiting from the contract, which is the lower of the cost of fulfilling it and any compensation or penalties arising from the failure to fulfil it. The cost of fulfilling a contract includes the costs directly related to the contract ('full direct costs'), these being: - the incremental costs of fulfilling the contract ; and - an allocation of other costs directly related to fulfilling the contract. (4) COSTS TO FULFILL OR OBTAIN A CONTRACT CFE has assessed that the cost of obtaining contract (e.g. commissions paid), as well as the related costs of fulfilling that are not covered by a specific IFRS standard, which should normally be capitalized as defined in IFRS 15 if they meet certain specific criteria, Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 150 have no significant impact on the recognition of revenue and margins of projects. As such, these costs of winning or implementing a contract are not recognized separately in accordance with IFRS 15, but are included in the recognition of the project and therefore recognized when they are incurred. (5) SPECIFIC CONSIDERATIONS RELATING TO REVENUE BY SEGMENT a) Revenue from construction and multitechnics contracts CFE is responsible for the overall management of a project in which various goods and services are included, such as demolition, earthworks, soil remediation, foundation work, procurement of materials, construction of the shell and facades, installation of technical facilities (electricity, HVAC, etc.), and the finishing works. Revenue recognition must reflect, according to IFRS 15: • On one hand, the pace of fulfillment of performance obligations corresponding to the transfer of control of a good or service to the customer; • On the other hand, the amount to which the seller expects to be entitled as compensation for the activities performed. The performance obligations aimed at transferring goods and services are not treated separately in the context of the contract, as the entity provides a significant service of integrating goods and services (the inputs) into the building (the combined output) for which the customer has concluded a contract. This is why the goods and services are not treated separately. The entity recognises all the goods and services under the contract as one and the same performance obligation. Revenue from construction contracts are recognized according to the percentage of completion using the cost-based method, i.e., according to the share of the contract costs incurred for its completion to date relative to the total estimated costs. Ownership is progressively transferred to the buyer during the construction period, so revenue is recognized over time when the entity's performance does not create an asset with an alternative use for the entity and the entity has an enforceable right to payment for performance completed to date, which satisfies the third criterion defined by IFRS 15.35. To the extent that the contract explicitly identifies each unit individually, and the customer can benefit from each unit individually, the construction of each unit should be considered as a separate performance obligation, and revenue are recognized separately for each performance obligation. The transfer of control of a good or service can occur at a specific point in time corresponding to the completion of the work. This is particularly the case for a limited number of contracts, mainly in the Multitechnics segment, where installation and execution work covers a very short period. For such contracts, revenue is recognized at the precise moment when the work is completed. b) Real estate developments CFE is responsible for the overall management of real estate projects in which several building blocks under construction (or to be constructed) are sold to the customers. Taking into account the local regulator that governs the transfer of ownership to the end customer, the performance obligation is satisfied progressively or at a specific point in time. Revenue is recognized when the material risks and rewards of ownership have been substantially transferred to the buyer, and no uncertainty remains regarding the recovery of the amounts due, the associated costs or the possible return of goods. In so-called mixed projects, and in particular real estate developments including residential, office and/or retail units, they will be subdivided in one or more performance obligations, depending on whether the different units that are developed are separate or not within the meaning of the IFRS 15 standard. Moreover, depending on the contractual framework, the development of the project and the monitoring of its construction will be considered as either a single performance obligation or as two separate obligations. The income is recognized when each performance obligation, taken individually, is satisfied, i.e.: - if the local regulator makes the ownership of the construction gradually transferable throughout the execution of the construction work, and if the group is contractually restricted from redirecting the properties to other customers, and has an enforceable right to payment for the work carried out, the revenue from the construction of these residential properties will therefore be gradually recognized according to the cost-based method, i.e. based on the share of contract costs incurred for its realisation to date relative to the estimated total costs, and according to the degree of ownership transferred at the closing date. This concerns projects developed in Belgium and Luxembourg ; - if the legislator provides that the transfer of risks and benefits, as well as the right to enforceable payment, is only established when the residential unit is fully built and delivered, revenue is only recognized at a specific point in time, i.e. upon the signing of the notarial deed or the transfer protocol between CFE and the end customer. This applies only to projects developed in Poland. If the development of a project and the monitoring of its construction are considered as two separate obligations, the income relating to the development of the project will generally be recognized at a specific time when it is sold, and the income relating to the monitoring of the construction will be recognized as a percentage of completion, as previously explained. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 151 (U) OTHER INCOME (1) RENTAL INCOME AND FEES Rental income and costs are recognized on a straight-line basis over the term of the lease. (V) CHARGES (1) FINANCIAL EXPENSES Financial expenses comprise interest payable on borrowings, foreign exchange losses, and losses on hedging instruments that are recognized in the consolidated statement of income. All interest and other costs incurred in connection with borrowings, except those that were eligible for capitalisation, are recognized in the consolidated statement of income as financial expenses. Interest costs relating to lease contracts are recognized in the consolidated statement of income using the effective interest rate method. (2) COSTS FOR RESEARCH AND DEVELOPMENT, ADVERTISING AND PROMOTIONAL COSTS AND COSTS RELATING TO THE DEVELOPMENT OF IT SYSTEMS Research, advertising and promotional costs are recognized in the consolidated statement of income of the financial year in which they were incurred. Development costs and development costs for IT systems are recognized as an expense when they are incurred if they do not meet the criteria for intangible assets. (W) HEDGE ACCOUNTING The company uses derivative financial instruments primarily to reduce exposure to adverse fluctuations in interest rates, foreign exchange rates, commodity prices and other market risks. The company’s policy prohibits the use of such instruments for speculation purposes. The company does not hold or issue financial instruments for trading purposes. Derivatives that do not qualify as hedging instruments under the IFRS 9 standard, however, are presented as instruments held for trading. Derivative financial instruments are initially measured at their fair value. Subsequent to initial recognition, derivative financial instruments are measured at their fair value. Recognition of any resulting unrealized gain or loss depends on the nature of the derivative and the effectiveness of the hedge. The fair value of interest rate swaps is the estimated value that the company would receive or pay when exercising the swap at the closing date, taking current interest rate curves and the solvency of the counterparty of the swap into account. The fair value of a forward exchange contract is the quoted value on the stock exchange on closing date, i.e. the present value of the quoted forward price. Hedge accounting is applicable if the conditions of the IFRS 9 standard are met : - the hedging relationship must be clearly designated and documented on the date the hedging instrument is put in place ; - the economic link between the hedged item and the hedging instrument must be documented, as well as the potential sources of inefficiency ; - the retrospective ineffectiveness must be measured at each closing ; - the hedging relationship consists only of eligible hedging instruments and eligible hedged items ; - the hedge ratio of the hedging relationship is consistent with that resulting from the quantity of the hedged item that is actually hedged by the entity, and the quantity of the hedging instrument that the entity actually uses to hedge that quantity of the hedged item. Changes in the fair value from one period to another are recognized differently depending on the accounting qualification of the instrument. (1) CASH-FLOW HEDGES Where a derivative financial instrument hedges variations in the cash flow of a recognized liability, a firm commitment or an expected transaction of the company, the effective part of any profit or loss resulting from the derivative financial instrument is recognized directly in other elements of the consolidated statement of comprehensive income and is the object of a reserve that is separate from equity. If the firm commitment or the expected future transaction leads to the recognition of a non-financial asset or liability, the Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 152 cumulative profits or losses are extracted from the ‘equity’ heading and are included in the initial assessment of the value of the asset or liability. Otherwise, the cumulative profits or losses are extracted from the ‘equity’ heading and recognized in the consolidated statement of income at the same time as the hedged transaction. The non-effective portion of the profit or loss on the financial instrument is recognized in the consolidated statement of income. Profits or losses arising from the temporary value of the financial derivative instrument are recognized in the consolidated statement of income. If a hedging instrument or a hedging relationship has expired, but the hedged transaction has yet to take place, the cumulative unrealized profit or loss at that time remains under the ‘equity’ heading and is recognized according to the principle explained above at the time the transaction takes place. If the hedged transaction is not expected to take place, the cumulative unrealised profit or loss recognized under ‘equity’ is immediately recognized in the consolidated statement of income. (2) FAIR VALUE HEDGES For any derivative financial instrument hedging variations in the fair value of a recognized receivable or debt, any profit or loss resulting from the remeasurement of the hedging instrument is recognized in the consolidated statement of income. The value of the hedged item is also measured at the fair value attributable to the hedged risk. The related loss or profit is recognized in the consolidated statement of income. The fair value of the hedged items, in respect of the hedged risk, is their carrying amount on the closing date converted into euros at the exchange rate in effect on the closing date. (3) HEDGE OF AN INVESTMENT IN A FOREIGN COUNTRY If a foreign currency debt hedges a net investment in a foreign entity, conversion differences arising from the conversion of the debt into euros are recognized directly as “exchange differences on translation” under the other elements of the consolidated statement of comprehensive income. If a derivative financial instrument hedges a net investment relating to foreign operations, the effective portion of the profit or loss on the hedging instrument is recognized directly in “exchange differences on translation” under the other elements of the comprehensive income statement, and the ineffective portion is recognized in the consolidated statement of income. (4) INSTRUMENTS RELATED TO CONSTRUCTION CONTRACTS If a derivative financial instrument hedges exposure to variations in the cash flow of a recognized obligation, a firm commitment or a planned transaction of the company in the context of a construction contract (mainly forward purchases of raw materials, or forward purchases or sales of foreign currencies), this instrument will not be the object of cash flow hedging documentation as described in point (1) above. Any profit or loss resulting from the derivative financial instrument is recognized in the consolidated statement of income as a financial income or financial expense. Any profit or loss realized on the derivative financial instrument is considered to be a cost under the construction contract (see section (U) above). This element is, however, not considered for determining the percentage of completion of the construction contract. (X) SEGMENT REPORTING A segment is a distinguishable component of the CFE group that generates revenue and incurs expenses and whose operating income and losses are regularly reviewed by management in order to take decisions or determine its performance. The CFE group’s continuing operations consist of four operating segments : Real Estate Development, Multitechnics, Construction & Renovation and Investments & Holding. (Y) CASH FLOWS WITH RESPECT TO COMPANIES CONSOLIDATED USING THE EQUITY METHOD Cash flows related to the financing of companies consolidated using the equity method (capital decrease/increase and new borrowings given/repayments of borrowings given) are, in principle, included in cash flows from investing activities. However, regarding the Real Estate Development segment, these cash flows are presented in cash flows from operating activities. Indeed, the development of real estate projects is carried out either through consolidated subsidiaries or through joint ventures. All these projects are managed by the same management team of CFE's real estate segment. Cash flows related to projects under development held by consolidated subsidiaries are by definition allocated to the "working capital variations" items, i.e., in Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 153 operating cash flows. To ensure consistency for the reader of the financial statements, CFE has historically opted to also include in these same "working capital variations" items, the cash flows related to the financing of real estate projects held through joint ventures. This reasoning is based on the fact that projects held in joint ventures and projects held by consolidated subsidiaries are similar from an economic point of view and both relate to the main revenue-generating activities of the CFE group and are therefore both operational in nature. Thus, CFE has decided to group the cash flows of all its real estate projects in operating activities, regardless of the underlying legal structure. By choosing to present cash flows in operating activities, CFE based its decision on the principle of IAS 7 paragraph 11, namely that an entity presents its cash flows related to operating, investing, and financing activities in the most appropriate manner for its business. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 154 3. CONSOLIDATION METHODS S COPE OF CONSOLIDATION Companies in which the group, directly or indirectly, holds the majority of voting rights enabling control to be exercised, are fully consolidated. Companies over which the group exercises joint control with other shareholders are consolidated using the equity method. This applies in particular to Deep C Holding, Green Offshore, GreenStor and certain subsidiaries of BPI. The change in the scope of consolidation of the CFE group between December 2023 and December 2024 is summarised as follows: NNuummbbeerrooffeennttiittiieess2200224422002233Global integration 63 64 Equity method 87 91 TToottaall115500115555 INTRA-GROUP OPERATIONS Reciprocal operations and transactions relating to assets and liabilities and income and expenses between integrated companies are eliminated in the consolidated financial statements. This elimination is carried out : - in full if the operation is carried out between two subsidiaries consolidated using the global integration method; and - up to the holding percentage of the company accounted for using the equity method for the internal result realised between a fully consolidated company and a company accounted for using the equity method. TRANSLATION OF THE FINANCIAL STATEMENTS OF FOREIGN COMPANIES & ESTABLISHMENTS In most cases, the operating currency of companies and establishments corresponds to the currency of the country concerned. The financial statements of foreign companies whose operating currency is different from that used in preparing the group’s consolidated financial statements are translated at the closing rate for the items of the consolidated statement of financial position and at the average rate for the period for the items of the consolidated statement of income. Any resulting conversion differences are recognised as exchange differences resulting from the translation in the consolidated reserves. Goodwill relating to foreign companies is considered to be part of the assets and liabilities acquired and, as such, is converted at the exchange rate applicable on the closing date. FOREIGN CURRENCY TRANSLATIONS Transactions in foreign currency are converted into euros at the exchange rate on the transaction date. Financial assets and monetary liabilities denominated in foreign currencies are converted into euros at the exchange rate applicable at the closing date of the period. The resulting exchange profits and losses are recognised in the ‘foreign exchange income’ heading, and are presented under ‘other financial income and expenses’ in the consolidated statement of income. Foreign exchange profits and losses on loans denominated in foreign currencies or on foreign exchange derivatives used to hedge participations in foreign subsidiaries are recorded under the heading ‘exchange differences on translation’ resulting from the conversion in ‘other elements’ of the consolidated statement of comprehensive income, and are the object of a separate reserve in equity. When the loans are repaid, the translation differences recorded in equity are recycled into the income statement. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 155 4. SEGMENT REPORTING O PERATING SEGMENTS Segment reporting is presented in respect of the group's operating segments. Segment results and assets and liabilities include items that can be directly attributed to a segment. The CFE group can be divided into four operating segments : Real Estate Development The Real Estate Development segment develops real estate projects in Belgium, Luxembourg and Poland. Multitechnics The Multitechnics segment includes the activities of the VMA and MOBIX divisions: - VMA specializes in developing technical building installations, their automated management (smart buildings) and long- term maintenance as well as in automating production lines in the automotive, chemical and food industries; - MOBIX is a leading player in Belgium for carrying out railway works (laying tracks, catenaries and signalling) and the installation of cables and pipelines as well as the installation public lighting. Construction & Renovation The Construction & Renovation segment includes all CFE subsidiaries active in Belgium, Poland, the Grand Duchy of Luxembourg and in Germany, which specialize in the construction and renovation of office buildings, residential buildings, hospitals, hotels, schools, car parks and industrial buildings. The companies Wood Shapers (construction and promotion of projects using bio- based and hybrid materials) and LTS (production and assembly plants for prefabricated wooden elements) are also part of this segment. Investments & Holding Besides the holding activities, this segment includes participations in Deep C Holding, Green-Offshore, GreenStor and in a Design Build Finance and Maintenance contract in Belgium. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 156 CONSOLIDATED STATEMENT OF INCOME FFoorr tthhee ppeerriioodd eennddeedd DDeecceemmbbeerr 3311,, EElliimmiinnaattiioonnss RReeaalleessttaatteeMMuullttii--CCoonnssttrruuccttiioonnIInnvveessttmmeennttssCCoonnssoolliiddaatteedd22002244bbeettwweeeennddeevveellooppmmeenntttteecchhnniiccss&&RReennoovvaattiioonn&&HHoollddiinnggttoottaall(in € thousands) sseeggmmeennttss Revenue 125,699 304,309 788,462 1,978 (38,279) 1,182,169 EBITDA 17,932 20,160 17,443 (5,277) (389) 49,869% Revenue 14.27% 6.62% 2.21% 4.22% Depreciation and amortisation (1,283) (9,959) (9,950)(640) 0 (21,832) Income from operating activities 16,649 10,201 7,493 (5,917) (389) 28,037Share of profit (loss) of investments (8,188) (22) 788 11,390 0 3,968 accounted for using equity method Operating income (EBIT) 8,461 10,179 8,281 5,473 (389)32,005% Revenue 6.73% 3.34% 1.05%2.71% Financial result 3,913 (606) 7,952 (6,461) 0 4,798 Income tax expenses (4,351) (3,258) (5,656) 328 97 (12,840) Result for the period - share of the 8,023 6,315 10,577 (660) (292) 23,963 group % Revenue 6.38% 2.08% 1.34% 2.03% FFoorrtthheeppeerriiooddeennddeeddDDeecceemmbbeerr3311,,EElliimmiinnaattiioonnssRReeaalleessttaatteeMMuullttii--CCoonnssttrruuccttiioonnIInnvveessttmmeennttssCCoonnssoolliiddaatteedd22002233bbeettwweeeennddeevveellooppmmeenntttteecchhnniiccss&&RReennoovvaattiioonn&&HHoollddiinnggttoottaall(in € thousands)sseeggmmeennttss Revenue 157,696 337,951 872,647 2,274 (122,098) 1,248,470 EBITDA 30,422 5,383 9,666 4,799 (737)49,533% Revenue 19.29% 1.59% 1.11% 3.97% Depreciation and amortisation (1,053) (9,708) (9,715)(872) 0(21,348) Income from operating activities 29,369 (4,325) (49)3,927(737)28,185Share of profit (loss) of investments (11,952) 28 (171) 16,934 0 4,839 accounted for using equity method Operating income (EBIT) 17,417 (4,297) (220) 20,861 (737) 33,024% Revenue 11.04% (1.27%) (0.03%) 2.65% Financial result (821) (1,205) 2,827 (2,794) 0 (1,993) Income tax expenses (4,980) (769) (2,675) (64) 183(8,305) Result for the period - share of the 11,669 (6,271) (68) 18,003 (554) 22,779group % Revenue 7.40% (1.86%) (0.01%) 1.82% During the 2024 financial year, a larger number of real estate development projects in Poland were recognized as revenue upon completion, amounting to €79,919 thousand (2023: €7,872 thousand). B REAKDOWN OF REVENUE Breakdown by geographical area Year ended 31 December 2024 2023 (in € thousands) Belgium 856,938 990,003 Poland 225,731 105,144 Luxembourg 67,591 114,670 Others 31,909 38,653 CCoonnssoolliiddaatteeddttoottaall11,,118822,,11669911,,224488,,447700 The breakdown of revenue by country is based on the countries in which services are provided. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 157 In 2024, no customer accounted for more than 10% of group revenue. Breakdown by business area For the period ended December 31 2024 2023 (in € thousands) Real Estate Development 125,699 157,696 VMA 213,151 252,788 MOBIX 91,253 85,285 Eliminations inter segments (95) (122) Multitechnics 304,309 337,951 Construction & Renovation 788,462 872,647 Investments & Holding & eliminations inter-segments (36,301) (119,824) Total consolidated 1,182,169 1,248,470 The CFE group's revenue from construction & renovation segment includes revenue generated for the benefit of the real estate development segment. The elimination of the revenue common to the construction & renovation segment and the real estate development segment, is carried out at the level of eliminations between segments. As the construction and the sales of the real estate development segment do not take place simultaneously, internally generated revenue is accounted for under work in progress and reversed at the time of sale. CONSOLIDATED STATEMENT OF FINANCIAL POSITION Eliminations For the period ended December 31, 2024 Real estate Multi- Construction Investments Consolidated between (in € thousands) development technics & Renovation & Holding total segments AASSSSEETTSS Goodwill 0 23,017 912 0 0 23,929 Property, plant and equipment 5,134 47,768 39,433 3,711 (23) 96,023 Non-current loans to consolidated group 0 0 0 40,000 (40,000) 0 companies Other non-current financial assets 90,202 0 0 30,046 0 120,248 Investments accounted for using equity method 95,928 159 1,050 79,245 0 176,382 Other non-current assets 10,368 1,707 16,296 162,463 (161,749) 29,085 Inventories 126,541 6,624 9,011 25 (826) 141,375 Cash and cash equivalents 7,230 2,533 80,300 83,447 (0) 173,510 Internal cash position - Cash pooling - assets 9,774 59,768 218,449 22,537 (310,528) 0 Other current assets 13,261 123,678 202,703 17,639 (16,086) 341,195 Total assets 358,438 265,254 568,154 439,113 (529,212) 1,101,747 LIABILITIES Equity 160,328 98,892 113,982 37,176 (162,603) 247,775 Non-current borrowings to consolidated group 40,000 0 0 0 (40,000) 00companies Non-current financial liabilities 31,690 26,158 19,477 107,505 0 118844,,883300 Other non-current liabilities 32,401 2,050 20,011 4,580 (0) 5599,,004422 Current financial liabilities 18,490 6,086 5,462 337 (0) 3300,,337755 Internal cash position - Cash pooling - liabilities 22,222 4,555 17,982 265,769 (310,528) 00 Other current liabilities 53,307 127,513 391,240 23,746 (16,081) 557799,,772255 TToottaall lliiaabbiilliittiieess 119988,,111100 116666,,336622 445544,,117722 440011,,993377 ((336666,,660099)) 885533,,997722 TToottaall eeqquuiittyy aanndd lliiaabbiilliittiieess 335588,,443388 226655,,225544 556688,,115544 443399,,111133 ((552299,,221122)) 11,,110011,,774477 Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 158 EElliimmiinnaattiioonnss FFoorrtthheeppeerriiooddeennddeeddDDeecceemmbbeerr3311,,22002233RReeaalleessttaatteeMMuullttii--CCoonnssttrruuccttiioonnIInnvveessttmmeennttssCCoonnssoolliiddaatteeddbbeettwweeeenn33(in € thousands) ddeevveellooppmmeenntttteecchhnniiccss&&RReennoovvaattiioonn&&HHoollddiinnggttoottaallsseeggmmeennttss AASSSSEETTSS Goodwill 0 22,982 912 0 0 2233,,889944 Property, plant and equipment 5,642 45,988 39,469 4,012 (24) 9955,,008877 Non-current loans to consolidated group 0 0 0 44,000 (44,000) 00companies Other non-current financial assets 89,108 0 171 29,274 0 111188,,555533 Investments accounted for using equity method 104,502 182 3,531 77,150 0 118855,,336655 Other non-current assets 9,839 2,085 11,307 180,107 (179,271) 2244,,006677 Inventories 145,285 7,349 10,010 25 (825) 116611,,884444 Cash and cash equivalents 4,390 3,249 78,045 68,408 0 115544,,009922 Internal cash position - Cash pooling - assets 17,749 42,529 167,981 23,753 (252,012) 00 Other current assets 25,346 136,210 241,129 14,864 (24,102) 339933,,444477 TToottaall aasssseettss 440011,,886611 226600,,557744 555522,,555555 444411,,559933 ((550000,,223344)) 11,,115566,,334499 LLIIAABBIILLIITTIIEESS EEqquuiittyy 115599,,114411 8888,,889977 9900,,997755 7777,,550000 ((118800,,112200)) 223366,,339933 Non-current borrowings to consolidated group 40,000 0 4,000 0 (44,000) 00companies Non-current financial liabilities 53,424 26,054 18,838 92,649 0 119900,,996655 Other non-current liabilities 29,473 1,882 21,093 4,534 0 5566,,998822 Current financial liabilities 10,341 5,835 4,951 35,267 0 5566,,339944 Internal cash position - Cash pooling - liabilities 18,435 14,386 9,368 209,823 (252,012) 00 Other current liabilities 91,047 123,520 403,330 21,820 (24,102) 661155,,661155 TToottaall lliiaabbiilliittiieess 224422,,772200 117711,,667777 446611,,558800 336644,,009933 ((332200,,111144)) 991199,,995566 TToottaall eeqquuiittyy aanndd lliiaabbiilliittiieess 440011,,886611 226600,,557744 555522,,555555 444411,,559933 ((550000,,223344)) 11,,115566,,334499 C ONSOLIDATED STATEMENT OF CASH FLOWS FFoorrtthheeppeerriiooddeennddeeddDDeecceemmbbeerr3311,,22002244RReeaalleessttaatteeMMuullttii--CCoonnssttrruuccttiioonnIInnvveessttmmeennttssCCoonnssoolliiddaatteedd(in € thousands) ddeevveellooppmmeenntt tteecchhnniiccss && RReennoovvaattiioonn && HHoollddiinngg ttoottaall Cash flows from (used in) operating activities 25,399 19,937 17,052 2,304 6644,,669922before changes in working capital Cash flows from (used in) operating activities 12,672 23,487 37,375 11,771 8855,,330055Cash flows from (used in) investing activities (322) (3,860) (851) (3,415) ((88,,444488))Cash flows from (used in) financing activities (9,586) (20,303) (34,781) 6,621 ((5588,,004499))Net increase/(decrease) in cash position 2,764 (676) 1,743 14,977 18,808 FFoorrtthheeppeerriiooddeennddeeddDDeecceemmbbeerr3311,,22002233RReeaalleessttaatteeMMuullttii--CCoonnssttrruuccttiioonnIInnvveessttmmeennttssConsolidated (in € thousands) ddeevveellooppmmeenntt tteecchhnniiccss && RReennoovvaattiioonn && HHoollddiinngg total Cash flows from (used in) operating activities 28,596 4,944 14,645 7,174 55,359 before changes in working capital Cash flows from (used in) operating activities (33,668) 7,630 27,139 (852) 249 Cash flows from (used in) investing activities (830) (5,581) (9,160) 4,535 (11,036) Cash flows from (used in) financing activities 34,377 (5,482) (11,528) 18,113 35,480 Net increase/(decrease) in cash position (121) (3,433) 6,451 21,796 24,693 The cash flow from (used in the context of) financing activities includes the amounts of cash pooling compared to other segments. A positive amount corresponds to a use of liquidity in the cash pooling. This item also includes cash-flows related to external financing, especially and primarily in real estate development and investments & holding segments. 3 Negative investments accounted for using the equity method, previously presented under ‘Non-current provisions’ in their entirety, are, from 2024, presented firstly as a deduction from any non-current financial assets relating to these investments and the balance under ‘Non-current provisions’. The restatement is described in note 2.b. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 159 OTHER INFORMATION Year ended 31 December 2024 Real estate Multi- Construction Investments & Consolidated (in € thousands) development technics & Renovation Holding () total Raw materials, consumables, services and (75,044) (148,957) (640,436) 21,798 (842,639) subcontracted work Depreciation and amortisation (1,283) (9,959) (9,950) (640) (21,832) Investments 1,017 12,544 13,259 312 27,132 Year ended 31 December 2023 Real estate Multi- Construction Investments & Consolidated (in € thousands) development technics & Renovation Holding () total Raw materials, consumables, services and (83,362) (196,045) (727,470) 76,889 (929,988) subcontracted work Depreciation and amortisation (1,053) (9,708) (9,715) (872) (21,348) Investments 4,616 12,828 21,556 3,665 42,665 () For the "Raw materials, consumables, services, and subcontracted work" category, the "Investments & Holding" segment also includes inter- segment eliminations. The investments include the acquisitions of intangible assets and property, plant and equipment and the discounted rents related to the right-of-use of assets under the scope of IFRS 16 Leases. GEOGRAPHICAL INFORMATION The operations of the group in the construction & renovation, multitechnics and real estate development segments are mainly based in Belgium, Luxembourg and Poland. The property, plant and equipment are mainly based in Belgium. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 160 5. ACQUISITIONS AND DISPOSALS OF SUBSIDIARIES ACQUISITIONS AND DISPOSALS FOR THE PERIOD ENDED 31 DECEMBER 2024 During the first half of 2024, the companies PPP Betrieb Schulen Eupen SA and PPP Schulen Eupen SA were liquidated. This transaction has an immaterial impact on the income statement. In the cash flow statement, the effect of the transaction (+€550 thousand) is presented under the line item “Decrease of the investment percentage net of cash acquired/sold.” As far as the multitechnics, construction & renovation and investments & holding segments are concerned, no material acquisition or disposal within the meaning of IFRS 3 Business Combinations and having a significant impact on the CFE Group’s financial statements were carried out in 2024. Acquisitions and disposals in the real estate development segment are not considered as business combinations; therefore the consideration paid is allocated to the land and buildings accounted for in inventories. The main acquisitions and disposals that have occurred in the real estate development segment are described in the introduction of this report. 6. OTHER OPERATING INCOME AND EXPENSES Other operating income, which amounted to €38,730 thousand (2023 : €54,487 thousand) as at 31 December 2024, are mainly related to : - other compensation and miscellaneous rebilling amounting to €35,446 thousand (2023 : €36,193 thousand) ; - capital gains on disposals of financial shares amounting to €1,979 thousand, (2023: €17,146 thousand) of which €1,163 thousand related to the disposal of 50% of the stake in BPI Wieslawa Sp. z.o.o. ; - capital gains on disposals of intangible assets and property, plant and equipment amounting to €1,305 thousand (2023 : €1,148 thousand). In 2023, other operating income included the capital gain from the disposal of 50% of the stake in BPI Chmielna (€14,250 thousand) and the positive recycling of foreign exchange differences following the sale of CMT and CTE companies and the liquidation of CFE Hungary (€2,443 thousand). Other operating expenses are made up of the following elements : Year ended 31 December 2024 2023 (in € thousands) Miscellaneous services and goods (84,838) (81,237) Impairment of assets - Inventories (215) (387) - Trade and other operating receivables 392 (6,587) Net additions to provisions (excluding provisions for retirement benefit obligations) (1,837) 2,793 Other operating expenses (1,661) (1,521) Consolidated total (88,159) (86,939) Miscellaneous services and goods and other operating expenses mainly include overheads, various taxes, sales commissions and miscellaneous fees. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 161 7. PERSONNEL EXPENSES Year ended 31 December 2200224422002233(in € thousands) Remuneration (145,524) (148,459) Mandatory social security contributions (45,135) (45,315) Other wage costs (44,488) (39,555) Service cost related to defined-benefit pension plans (5,084) (3,167) Consolidated total (240,231) (236,496) The average full-time equivalent number of staff in 2024 was 2,775 (2023 : 2,914), which represents 2,990 people as at 1 January 2024 (2023: 3,074) and 2,854 as at 31 December 2024 (2023 : 2,990). 8. FINANCIAL RESULT Year ended 31 December 2024 2023 (in € thousands) Interest income 12,944 11,880 Interest expenses (15,386) (11,041) Other financial expenses and income 7,240 (2,832) Realized / unrealized translation gains/(losses) 5,360 388 Defined benefit plan financial cost (189) (323) Impairment of financial assets 0 0 Other 2,069 (2,897) Financial result 4,798 (1,993) The financial result amounts to €4,798 thousand as of December 31, 2024, compared to (€1,993 thousand) as of December 31, 2023. This increase is mainly explained by: • The positive effect of recycling unrealized foreign exchange differences historically recognized in other comprehensive income, related to euro-denominated intra-group loans granted by BPI Real Estate Belgium SA to BPI Real Estate Poland Sp.z.o.o., which were repaid in 2024. The repayment of these loans is considered as a partial disposal under IAS 21, resulting in the recycling of translation differences through the income statement. The recycling of unrealized foreign exchange differences is the sole impact of this transaction in the financial statements; • The increase in realized foreign exchange gains by CFE Polska Sp.z.o.o., linked to the appreciation of the PLN against the euro; partially offset by, • The increase in the cost of gross financial debt. Interest income amount to €12,944 thousand and mainly consist of interest on loans granted to SPVs in the Real Estate Development and Investments & Holding segments, which are consolidated under the equity method, as well as interest income from term deposits. Interest expenses amount to €15,386 thousand and primarily consist of interest charges related to corporate financing of CFE SA and BPI Real Estate Belgium SA, project financing in the Real Estate Development segment consolidated using the full integration method, as well as interest expenses on lease liabilities. 9. NON-CONTROLLING INTERESTS As of December 31, 2024, the share of non-controlling interests in the result for the period is nil (2023 : loss of €53 thousand). Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 162 10. EARNINGS PER SHARE Basic earnings per share are the same as diluted earnings per share due to the absence of any potentially dilutive ordinary shares in circulation. It is calculated as follows : For the period ended December 31 2024 2023 Result for the period - share of the group (in € thousands) 23,963 22,779 Comprehensive income - share of the group (in € thousands) 21,351 18,423 Number of ordinary shares at balance sheet date 25,314,482 25,314,482 Weighted average number of ordinary shares outstanding during the period 24,801,925 24,905,237 Earnings per share, based on the weighted average number of ordinary shares outstanding during the period (basic) : Earnings per share (share of the group) (€) 0.97 0.91 Comprehensive income per share (share of the group) (€) 0.86 0.74 During 2024, the stock option plans had no dilutive effect. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 163 11. INCOME TAX R ECOGNIZED IN COMPREHENSIVE INCOME Year ended 31 December 2024 2023 (in € thousands) Current taxes Tax expense for the period 11,014 8,630 Additions to / (release from) provisions in previous periods 132 17 Total current tax expenses 11,146 8,647 Deferred taxes Additions to and releases from deferred taxes relating to losses from previous periods 0 (27) Additions to and releases from temporary differences 1,694 (315) Total deferred tax expenses/income 1,694 (342) Income tax for the period 12,840 8,305 Tax (income)/expense recognized in other elements of the comprehensive income (48) (1,774) 4Total tax expense recognized in comprehensive income 12,792 6,531 RECONCILIATION OF THE EFFECTIVE TAX RATE Year ended 31 December 2024 2023 (in € thousands) Pre-tax income for the period 36,805 31,031 of which share in the profit/(loss) from investments accounted for using equity 3,968 4,839 method Pre-tax income for the period, excluding investments accounted for using equity 32,837 26,192 method Income taxes at 25% 8,209 6,548 Tax impact of non-deductible expenses 2,610 2,477 Tax impact of non-taxable revenue (1,830) (3,246) Tax credit 0 0 Effect of different tax rates applicable to subsidiaries operating in other jurisdictions (719) (1,031) Tax impact of using previously unrecognized losses (3,708) (1,470) Tax impact of adjustments to current and deferred tax relating for previous periods 4,203 11 Tax impact of deferred tax assets on unrecognized losses for the period 4,074 5,016 Tax expense 12,840 8,305 Effective tax rate for the period 39.10% 31.71% The income tax expenses amounted to €12,840 thousand as at 31 December 2024, compared to €8,305 thousand at the end of 2023. The effective tax rate amounted to 39.10% compared to 31.71% in 2023. 4 This amount has been adjusted. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 164 RECOGNIZED DEFERRED TAX ASSETS AND LIABILITIES Year ended 31 December ASSETS LIABILITIES (in € thousands)52024 2023 2024 2023 Property, plant and equipment and intangible assets 210 80 (13,687) (10,961) Leases liabilities 12,484 9,727 0 0 Employee benefits 1,662 1,833 0 0 Provisions 2,383 2,290 0 0 Fair value of derivative instruments 0 0 0 0 Working capital 3,247 5,694 (92) (3,545) Other items 3,292 307 (5,729) (46) Tax losses 42,567 41,707 0 0 Gross deferred tax assets/(liabilities) 65,845 61,638 (19,508) (14,552) Unrecognized deferred tax assets (42,567) (41,707) 0 0 Tax netting (14,261) (11,402) 14,261 11,402 Net deferred tax assets/(liabilities) 9,017 8,529 (5,247) (3,150) Tax loss carried forward and other temporary differences for which no deferred tax assets are recognized amounted to €170,504 thousand as at 31 December 2024. As tax losses are mainly recognized by Belgian companies, these do not have an expiration date. The "tax netting" item reflects the netting of deferred tax assets and liabilities per entity. PILLAR II The Pillar Two legislation is effective starting from the financial year beginning 1 January 2024. Pillar Two legislation has been enacted or substantively enacted in certain jurisdictions in which CFE operates (ao. Belgium). Ackermans en van Haaren NV (AvH NV) is the Ultimate Parent Entity (‘UPE’) for Pillar Two purposes of the CFE Group’s constituent entities. These constituent entities are therefore in scope of the Pillar Two consequences applicable to the AvH Group. As a consequence of the fact that CFE is part of the AvH Group, the outcome of Pillar Two impact can only be assessed at the level of the AvH Group. Based on an assessment made by the AVH Group, the AvH Group has identified potential exposure to Pillar Two top-up-taxes in certain jurisdictions. Based on the current legislation, the AvH group is, in principle, obliged to pay, in Belgium or any other relevant jurisdiction, an additional tax on the profits of constituent entities taxed at an effective rate lower than 15%. For the 2024 financial year, the total impact of these additional taxes on the consolidated net result of the AvH group amounts to 0.5 million euros. This assessment was made based on the most recent financial information of the constituent entities of the AvH group; these being the 'Country-by-Country Reporting' and the consolidated financial statements. The main jurisdictions exposed to the Top-Up Taxes Pillar II are Mexico, the United Arab Emirates, Saudi Arabia, and Spain. Since the CFE group is not active in these jurisdictions, no obligation related to these additional taxes has been recognized in the consolidated financial statements closed on December 31, 2024. As of December 31, 2024, the CFE group has applied the exception to recognize and disclose deferred tax assets and liabilities related to Pillar II taxes. 5 Deferred tax assets included in the “Tangible fixed assets” section as of December 31, 2023 have been allocated between the “Tangible fixed assets” and “Lease liabilities” sections. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 165 TAX LOSSES FOR WHICH NO DEFERRED TAX ASSETS ARE RECOGNIZED Deferred tax assets are not recognized in cases where it is not probable that a future taxable profit will be sufficient to enable subsidiaries to recover their tax losses. DEFERRED TAX INCOME (EXPENSE) RECOGNIZED IN COMPREHENSIVE INCOME Year ended 31 December 2024 2023 (in € thousands) Deferred taxes on the effective portion of changes in the fair value of cash flow hedge 0 1,360 Deferred taxes on the revaluation of defined benefit liabilities 48 414 Total 48 1,774 Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 166 12. INTANGIBLE ASSETS OTHER THAN GOODWILL YYeeaarreennddeedd3311DDeecceemmbbeerr22002244DDeevveellooppmmeenntt LLiicceennsseessTToottaall(in € thousands) ccoossttss AAccqquuiissiittiioonn ccoossttss BBaallaannccee aatt tthhee eenndd ooff tthhee pprreevviioouuss ppeerriioodd 77,,775511 22,,222211 99,,997722 Effects of changes in foreign exchange rates 19 0 19 Acquisitions 428 2,619 3,047 Disposals (127) (380) (507) Transfers between asset items 441 (1) 440 BBaallaannccee aatt tthhee eenndd ooff tthhee ppeerriioodd 88,,551122 44,,445599 1122,,997711 DDeepprreecciiaattiioonn aanndd aammoorrttiissaattiioonn BBaallaannccee aatt tthhee eenndd ooff tthhee pprreevviioouuss ppeerriioodd ((55,,667766)) ((441155)) ((66,,009911)) Effects of changes in foreign exchange rates (14) 0 (14) Depreciation and amortisation (955) 0 (955) Disposals 117 380 497 Transfers between asset items (429) 2 (427) BBaallaannccee aatt tthhee eenndd ooff tthhee ppeerriioodd ((66,,995577)) ((3333)) ((66,,999900)) NNeett ccaarrrryyiinngg aammoouunntt AAss aatt JJaannuuaarryy 11,, 22002244 22,,007755 11,,880066 33,,888811 AAss aatt DDeecceemmbbeerr 3311,, 22002244 11,,555555 44,,442266 55,,998811 As of December 31, 2024, acquisitions of intangible assets amounted to €3,047 thousand (2023 : €2,605 thousand) and primarily concern the capital expenditure relating to the implementation of a new ERP system in Construction & Renovation. Depreciation and amortisation of intangible assets amounted to €(955) thousand as at 31 December 2024 (2023 : €(888) thousand). Intangible assets meeting the definition of IAS 38 Intangible Assets are only recognized to the extent that future economic benefits are probable. YYeeaarreennddeedd3311DDeecceemmbbeerr22002233DDeevveellooppmmeenntt LLiicceennsseessTToottaall(in € thousands)ccoossttss Acquisition costs BBaallaannccee aatt tthhee eenndd ooff tthhee pprreevviioouuss ppeerriioodd7,457 415 7,872 Effects of changes in foreign exchange rates 76 0 76 Acquisitions 798 1,807 2,605 Disposals (495) 0 (495) Transfers between asset items 0 (1) (1) BBaallaannccee aatt tthhee eenndd ooff tthhee ppeerriioodd7,751 2,221 9,972 DDeepprreecciiaattiioonn aanndd aammoorrttiissaattiioonnBBaallaannccee aatt tthhee eenndd ooff tthhee pprreevviioouuss ppeerriioodd(5,110) (415) (5,525) Effects of changes in foreign exchange rates (54) 0 (54) Depreciation and amortisation (888) 0 (888) Disposals 291 0 291 Transfers between asset items 0 0 0 BBaallaannccee aatt tthhee eenndd ooff tthhee ppeerriioodd(5,676) (415) (6,091) DDeepprreecciiaattiioonn aanndd aammoorrttiissaattiioonnNet carrying amount As at January 1, 2023 2,347 0 2,347 As at December 31, 2023 2,075 1,806 3,881 Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 167 13. GOODWILL Year ended 31 December 2024 2023 (in € thousands) Acquisition costs Balance at the end of the previous period 29,916 29,745 Changes in consolidation scope 0 0 Transfers between asset items () 0 0 Other changes 35 171 Balance at the end of the period 29,951 29,916 Depreciation Balance at the end of the previous period (6,022) (6,022) Depreciation during the period 0 0 Transfers between asset items () 0 0 Changes in consolidation scope 0 0 Balance at the end of the period (6,022) (6,022) Net carrying amount at December 31 23,929 23,894 In accordance with IAS 36 Impairment of assets, this goodwill was tested for impairment at 31 December 2024. The following assumptions were used in the impairment tests : Impairment Net goodwill Parameters of the model applied to cash flow Gross goodwill losses Business value projections value recognized in the period GGrroowwtthh rraattee YYeeaarreennddeedd3311DDeecceemmbbeerr2200224422002233((tteerrmmiinnaallDDiissccoouunnttrraatteeSSeennssiittiivviittyyrraattee(in € thousands)vvaalluuee)) VMA 14,991 14,956 0.50% 10.20% 5% 18,881 0 MOBIX 8,026 8,026 0.50% 10.20% 5% 10,159 0 BPC Group 911 911 0.50% 10.20% 5% 911 0 Total 23,929 23,894 29,951 0 Cash-flows figures used in the impairment tests were taken from the three-year plans presented to the CFE Board of Directors. A growth rate of 0.5% was used in determining the terminal value. The discount rate used is 10.2% (compared to 10.2% as at 31 December 2023) and corresponds to the weighted average cost of capital applicable to the CFE group. Future cash flows have been estimated by taking into account CFE past financial performance, future performance assumptions and the impact of environmental risks and commitments of climate change on the CFE activities. When establishing these assumptions, CFE did not identify any assets whose useful life was expected to be reduced, nor any material impact on the change in the profitability of its activities based on the information known to date (note 2.C Additional information relating to the environmental impact of the group). A sensitivity analysis was carried out by varying cash flows and discount rate figures by 5%. Since the value in use of the entities is still higher than their carrying amount including goodwill, there was no indication of impairment. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 168 14. PROPERTY, PLANT AND EQUIPMENT Year ended 31 December 2024 (in € thousands) Land and buildings Fixtures and equipment Furniture, fittings and vehicles Under construction Total Acquisition costs Balance at the end of the previous period 80,050 85,662 69,003 1,891 236,606 Effects of changes in foreign exchange rates 29 15 43 0 87 Changes in consolidation scope (7) 0 (4) 0 (11) Acquisitions 4,277 4,104 15,704 0 24,085 Transfers between asset items 2,246 59 (325) (1,840) 140 Disposals (2,777) (7,977) (9,642) (10) (20,406) Balance at the end of the period 83,818 81,863 74,779 41 240,501 Depreciation and amortisation Balance at the end of the previous period (26,410) (70,876) (44,233) 0 (141,519) Effects of changes in foreign exchange rates (14) (11) (22) 0 (47) Changes in consolidation scope 0 0 0 0 0 Depreciation and amortisation (4,623) (4,229) (12,025) (1) (20,878) Transfers between asset items (778) (17) 510 (1) (286) Disposals 2,242 7,289 8,722 (1) 18,252 Balance at the end of the period (29,583) (67,844) (47,048) (3) (144,478) Net carrying amount As at January 1, 2024 53,640 14,786 24,770 1,891 95,087 As at December 31, 2024 54,235 Property, plant and equipment mainly include the net book values of the headquarters of several Belgian subsidiaries of the group, the fleet of equipments and vehicles. As of December 31, 2024, acquisitions of property, plant and equipment amounted to €24,085 thousand. These mainly include the acquisition of equipment at Mobix and the group's vehicle fleet. As of December 31, 2023, acquisitions of property, plant and equipment amounted to €40,061 thousand, the most important of which relates to the construction costs of the new headquarters of Van Laere NV, the acquisition of equipment at Mobix, the furnishing work on the WoodHub buildings and discounted rents related to the WoodHub right-of-use of assets. Depreciation and amortisation of property, plant and equipment amounted to €(20,878) thousand (2023 : €(20,460) thousand). Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements 38 14,019 27,731 96,023 Annual report 2024 - CFE 169 YYeeaarr eennddeedd 3311 DDeecceemmbbeerr 22002233 LLaanndd aanndd FFiixxttuurreess aanndd FFuurrnniittuurree,, ffiittttiinnggss UUnnddeerr TToottaall(in € thousands)bbuuiillddiinnggss eeqquuiippmmeenntt aanndd vveehhiicclleess ccoonnssttrruuccttiioonn Acquisition costs Balance at the end of the previous period 64,717 107,298 59,088 5,597 236,700 Effects of changes in foreign exchange rates 113 73 168 2 356 Changes in consolidation scope 0 (100) (300) 0 (400) Acquisitions 13,548 5,886 15,367 5,260 40,061 Transfers between asset items 3,425 (8,437) 2,028 (8,916) (11,900) Disposals (1,753) (19,058) (7,348) (52) (28,211) Balance at the end of the period 80,050 85,662 69,003 1,891 236,606 Depreciation and amortisation Balance at the end of the previous period (26,422) (91,147) (41,422) 0 (158,991) Effects of changes in foreign exchange rates (66) (58) (89) 0 (213) Changes in consolidation scope 0 100 298 0 398 Depreciation and amortisation (4,956) (5,233) (10,271) 0 (20,460) Transfers between asset items 3,819 7,663 422 0 11,904 Disposals 1,215 17,799 6,829 0 25,843 Balance at the end of the period (26,410) (70,876) (44,233) 0 (141,519) Net carrying amount As at January 1, 2023 38,295 16,151 17,666 5,597 77,709 As at December 31, 2023 53,640 14,786 24,7701,89195,087 The net book value of property, plant and equipment recognized as right of use of assets amounted to €49,939 thousand as at 31 December 2024 compared to €47,828 thousand as at 31 December 2023. These assets mainly include the group’s vehicle fleet, the headquarters, as well as the equipments of certain subsidiaries. Changes in property, plant and equipment recognized under the right of use are presented in the table on next page. The CFE Group has a limited number of leases with renewal options and exercises significant judgement in determining whether it is reasonable certain that these extension and termination options will be exercised. As of December 31, 2024, the Group has no leases with renewal options that are reasonably certain not to be exercised or termination options that are reasonably certain to be exercised. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 170 YYeeaarr eennddeedd 3311 DDeecceemmbbeerr 22002244 LLaanndd aanndd FFiixxttuurreess aanndd FFuurrnniittuurree,, ffiittttiinnggss TToottaall(in € thousands)bbuuiillddiinnggss eeqquuiippmmeenntt aanndd vveehhiicclleess Acquisition costs Balance at the end of the previous period 32,359 7,133 34,764 74,256 Effects of changes in foreign exchange rates 27 0 26 53 Changes in consolidation scope 0 0 0 0 Acquisitions 2,223 1,017 13,349 16,589 Transfers between asset items (176) (334) 237 (273) Disposals (887) (969) (7,252) (9,108) Balance at the end of the period 33,546 6,847 41,124 81,517 Depreciation and amortisation Balance at the end of the previous period (6,325) (4,522) (15,581) (26,428) Effects of changes in foreign exchange rates (13) 0 (10) (23) Changes in consolidation scope 0 0 0 0 Depreciation and amortisation (3,318) (771) (9,444) (13,533) Transfers between asset items 176 160 (13) 323 Disposals 836 703 6,544 8,083 Balance at the end of the period (8,644) (4,430) (18,504) (31,578) Net carrying amount As at January 1, 2024 26,034 2,611 19,183 47,828 As at December 31, 2024 24,902 2,417 22,620 49,939 Year ended 31 December 2023 Land and Fixtures and Furniture, fittings Total (in € thousands) buildings equipment and vehicles Acquisition costs Balance at the end of the previous period 28,463 14,706 26,124 69,293 Effects of changes in foreign exchange rates 97 0 91 188 Changes in consolidation scope 0 0 0 0 Acquisitions 12,516 721 11,435 24,672 Transfers between asset items (3,751) (6,559) 3,488 (6,822) Disposals (4,966) (1,735) (6,373) (13,074) Balance at the end of the period 32,359 7,133 34,764 74,256 Depreciation and amortisation Balance at the end of the previous period (10,770) (8,386) (13,365) (32,521) Effects of changes in foreign exchange rates (64) 0 (30) (94) Changes in consolidation scope 0 0 0 0 Depreciation and amortisation (3,925) (1,478) (7,500) (12,903) Transfers between asset items 3,635 3,607 (739) 6,503 Disposals 4,799 1,735 6,053 12,586 Balance at the end of the period (6,325) (4,522) (15,581) (26,428) Net carrying amount As at January 1, 2023 17,693 6,320 12,759 36,772 As at December 31, 2023 26,034 2,611 19,183 47,828 Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 171 15. INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD C HANGES OVER THE PERIOD The interests in investments accounted for using equity method are detailed as follows: Year ended 31 December 2024 2023 (in € thousands) Balance at the end of the previous period 185,365 110,865 Transfers between asset items 3,581 10,766 Share of profit (loss) of investments accounted for using equity method 3,968 4,839 Capital increase/(decrease) 1,732 71,421 Dividends (17,447) (16,115) Changes in consolidation scope (76) 10,628 Other changes (741) (7,039) Balance at the end of the period 176,382 185,365 All entities in which the CFE Group has a significant influence are accounted for using equity method, mainly including the stakes in Deep C Holding and Green Offshore under the investments & holding segment, and in project companies held in joint control in the real estate development segment, mainly JFK Real Estate. As of December 31, 2024, the equity (in CFE share) of Deep C Holding, Green Offshore and JFK Real Estate to investments accounted for using equity method amounted to €70,251 thousand (including the minority interests), €19,976 thousand and €62,348 thousand, respectively. The CFE Group has no stakes accounted for using equity method that are listed on a public market. As of December 31, 2024, the CFE Group’s share of profit (loss) of investments accounted for using equity method amount to €3,968 thousand (compared to €4,839 thousand in 2023) and mainly results from the activities of the real estate development segment and the investments in port concessions through Deep C Holding (€6,367 thousand as at 31 December 2024, as CFE’s share) as well as in the concessionary companies of offshore wind farms such as Rentel and SeaMade through Green Offshore (€4,054 thousand as at 31 December 2024, as CFE’s share). Dividends distributed by equity accounted investments amounted to €17,447 thousand and derives from Green Offshore (€8,175 thousand) and certain project companies in the real estate development segment (mainly Gravity : €6,321 thousand and M1 : €2,560 thousand). Capital increases in investments accounted for using the equity method amounted to €1,732 thousand and relate to real estate development activities (€4,505 thousand) offset by a capital decrease of the entity Hofkouter NV in the Construction & Renovation segment (€3,444 thousand). In 2024, changes in the scope of consolidation were related to the disposal of the entire stake in Wood Garden SA, Immo Marial S.À R.L., La Réserve Promotion NV, PPP Betrieb Schulen Eupen SA, and PPP Schulen Eupen SA. The item 'Transfers from one asset category to another' mainly concerns the reclassification of equity-accounted investments, whose value is negative, to the items 'Other non-current financial assets' and 'Non-current provisions' (refer to notes 16 and 23, respectively). When the group's share of losses in an associate or joint venture exceeds its investment in them, the CFE group ceases to recognize its share of future losses. Losses beyond this amount are not recognized, except for the amount of the CFE group's commitments to these equity-accounted investments. If applicable, the share of losses is first deducted from the financial assets related to the associate. In the absence of financial assets or when the losses exceed the financial assets, a provision is made among non-current provisions, as the group considers it has an obligation to support these companies and their projects. The other changes are mainly due to the change in the market value of the interest rate hedging instruments in the Rentel and SeaMade offshore wind farm concession companies as well as the change in the exchange rate differences when integrating foreign currency investments (mainly Deep C Holding). Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 172 CREDIT RISK The amount of loans granted to real estate development companies consolidated using the equity method, which are subordinated to other debts (mainly bank loans granted for project financing), amounts to €47,007 thousand as of December 31, 2024 (December 31, 2023: €36,720 thousand). Credit risk is first assessed at the value level of the company consolidated using the equity method. Additionally, an evaluation concerning potential impairments of the loans is also carried out. We consider that it is not necessary to record impairments of the loans as long as there are no indicators of impairment at the level of the equity-accounted company. F INANCIAL INFORMATION RELATING TO INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD The list of the most significant investments accounted for using the equity method is set out in note 33, based on their percentage of interests in the CFE group, the segment in which they operate and the geographical area of their head office. The condensed financial statements by segment presented below are based on the accounts prepared on the basis of the IFRS accounting methods for investments accounted for using the equity method, or, failing this, on the basis of their statutory accounts. Intercompany transactions are not eliminated. The reconciliation with the contribution to the consolidated accounts is presented after the financial indicators. FISCAL YEAR 2024 Multitechnics and December 2024 Real estate Construction & Investments & Holding Total (in € thousands) development Renovation 100% % Share 100% % Share 100% % Share 100% % Share Income Statement Revenue 101,930 46,751 11,936 2,984 56,491 22,834 170,357 72,569 Depreciation (20) (10) (12) (3) (2,576) (1,288) (2,608) (1,301) Interest income and (26,832) (12,667) 32 8 (1,351) (653) (28,151) (13,312) expenses Result for the period - (15,765) (8,188) 2,314 766 24,781 11,390 11,330 3,968 share of the group Financial position Non-current assets 57,189 30,373 43 11 376,958 106,638 434,190 137,022 Current assets 885,269 468,416 15,675 4,217 339,474 129,225 1,240,418 601,858 Equity () 136,897 95,928 3,650 1,209 202,421 96,229 342,968 193,366 Non-current liabilities 430,293 232,346 393 98 296,726 73,298 727,413 305,742 Current liabilities 375,268 170,516 11,674 2,921 217,284 66,336 604,226 239,773 Cash and cash equivalents 26,010 11,726 9,873 2,745 75,166 32,907 111,048 47,378 Non-current financial 121,789 60,495 0 0 289,688 70,913 411,477 131,409 liabilities Current financial liabilities 17,329 9,157 11,652 2,913 69,543 17,746 98,524 29,816 Net Financial Debt 113,108 57,925 1,778 167 284,066 55,753 398,952 113,845 () including minority interests (€16,984 thousand) Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 173 The information in the segment Real estate development is described hereunder: December 2024 JFK-RE Others Total Real estate development (in € thousands) 100% % Share 100% % Share 100% % Share Income Statement Revenue 0 0 101,930 46,751 101,930 46,751 Depreciation 0 0 (20) (10) (20) (10) Interest income and (1,580) (908) (25,252) (11,760) (26,832) (12,667) expenses Result for the period (2,557) (1,469) (13,208) (6,719) (15,765) (8,188) - share of the group Financial position Non-current assets (11,864) (6,816) 69,053 37,189 57,189 30,373 Current assets 360,860 207,314 524,408 261,102 885,269 468,416 Equity 108,525 62,348 28,372 33,581 136,897 95,928 Non-current 240,000 137,880 190,293 94,466 430,293 232,346 liabilities Current liabilities 472 271 374,796 170,245 375,268 170,516 Cash and cash 101 58 25,909 11,668 26,010 11,726 equivalents Non-current 0 0 121,789 60,495 121,789 60,495 financial liabilities Current financial 0 0 17,329 9,157 17,329 9,157 liabilities Net Financial Debt (101) (58) 113,210 57,983 113,108 57,925 In the real estate development, non-current assets and current assets mainly relate to JFK Real Estate: €348,997 thousand (100%), Cavallia Sp. Z.o.o : €61,970 thousand (100%), The Roots Office SàRL : €31,648 thousand (100%), BPI Chmielna Sp. z o.o. : €62,547 thousand (100%), Debrouckère Land SA : €26,908 thousand (100%), Debrouckère Development SA : €21,600 thousand (100%), Joma 2060 SA : 20,582 thousand (100%, Bavière Développement SA : €21,218 thousand (100%), Erasmus Gardens SA: €29,365 thousand, MG Immo SRL : €24,176 thousand (100%), Arlon 53 SA : €22,383 thousand (100%), Goodways SA : €23,454 thousand (100%). Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 174 The information in the segment Investments and Holding is described hereunder: December 2024 Total Investments & Deep C Holding Green Offshore Others (in € thousands) Holding 100% % Share 100% % Share 100% % Share 100% % Share Income Statement Revenue 42,238 21,119 0 0 14,253 1,715 56,491 22,834 Depreciation (2,713) (1,357) 137 69 0 0 (2,576) (1,288) Interest income and (1,281) (640) 253 126 (323) (139) (1,351) (653) expenses Result for the period - 12,734 6,367 8,108 4,054 3,939 969 24,781 11,390 share of the group Financial position Non-current assets 107,739 53,869 38,485 19,243 230,734 33,526 376,958 106,638 Current assets 201,172 102,355 8,903 4,452 129,398 22,418 339,474 129,225 Equity () 140,502 70,251 39,952 19,976 21,967 6,002 202,421 96,229 Non-current liabilities 91,718 45,859 2,242 1,121 202,766 26,318 296,726 73,298 Current liabilities 76,692 40,115 5,194 2,597 135,399 23,624 217,284 66,336 Cash and cash equivalents 54,068 27,034 4,420 2,210 16,678 3,663 75,166 32,907 Non-current financial 89,581 44,791 1,121 561 198,986 25,562 289,688 70,913 liabilities Current financial liabilities 16,421 8,211 315 157 52,807 9,378 69,543 17,746 Net Financial Debt 51,935 25,967 (2,984) (1,492) 235,115 31,278 284,066 55,753 () including minority interests (€16,984 thousand) As of December 31, 2024, the contributions of Deep C Holding and Green Offshore in the consolidated statement of comprehensive income post-tax amounted to €7,001 thousand and €2,975 thousand, respectively. For the period ended December 312024 2023 (in € thousands) Green Green Deep C Deep C Offshore Offshore Share of profit (loss) of investments accounted for using 6,367 4,054 4,363 9,903 equity method Changes in fair value related to financial derivatives (49) (1,438) (46) (3,756) Exchange differences on translation 671 - (3,357) - Deferred taxes 12 360 12 939 Comprehensive income : 7,001 2,975 972 7,086 Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 175 Condensed financial information by segments includes information from joint ventures and associated companies. The latter ones concern mainly Hofkouter NV, included in the Construction & Renovation segment and Luwa SA, included in the Investments & Holding segment. The information of the associated entities is described hereunder: DDeecceemmbbeerr 22002244Hofkouter Luwa Others TOTAL (in € thousands) 100% % Share 100% % Share 100% % Share 100% % Share Income Statement Revenue 0 0 14,216 1,706 0 0 14,216 1,706 Depreciation 0 0 0 0 0 0 0 0 Interest income and 0 0 (60) (7) (597) (9) (657) (16) expenses Result for the period - 2,759 966 0 0 (677) (14) 2,082 952 share of the group Financial position Non-current assets 0 0 196,370 23,564 0 0 196,370 23,564 Current assets 2,844 996 49,666 5,960 19,362 1,152 71,872 8,107 Equity 2,823 988 12,794 1,535 (13,234) (1,189) 2,383 1,334 Non-current liabilities 0 0 177,937 21,352 0 0 177,937 21,352 Current liabilities 22 8 55,305 6,637 32,596 2,341 87,922 8,985 Cash and cash 2,772 970 12,087 1,450 1,812 28 16,671 2,448 equivalents Non-current financial 0 0 177,937 21,352 0 0 177,937 21,352 liabilities Current financial 0 0 14,787 1,774 0 0 14,787 1,774 liabilities Net Financial Debt (2,772) (970) 180,637 21,676 (1,812) (28) 176,053 20,679 Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 176 Comparative information - Financial Year 2023 MMuullttiitteecchhnniiccss aanndd DDeecceemmbbeerr22002233RReeaalleessttaatteeIInnvveessttmmeennttssCCoonnssttrruuccttiioonn&&TToottaall(in € thousands) ddeevveellooppmmeenntt&&HHoollddiinnggRReennoovvaattiioonn 100% % Share 100% % Share 100% % Share 100% % Share Income Statement Revenue 148,541 66,858 11,450 2,862 48,476 23,537 208,467 93,257 Result for the period - 3,788 480 (363) (142) 39,433 16,768 42,858 17,106 share of the group Financial position Non-current assets 63,937 32,383 12,271 3,922 188,001 87,197 264,209 123,502 Current assets 805,054 404,232 2,372 840 193,983 93,661 1,001,408 498,733 Equity 147,207 79,642 10,819 3,710 167,881 87,883 325,907 171,235 Non-current liabilities 448,046 237,224 343 171 114,573 52,265 562,962 289,660 Current liabilities 273,737 119,750 3,481 881 99,529 40,710 376,748 161,341 Net Financial Debt 222,749 111,145 (5,452) (1,469) 113,353 46,043 330,650 155,719 The information in the segment Real estate development is described hereunder: DDeecceemmbbeerr 22002233 TToottaallRReeaalleessttaatteeJJFFKK--RREEOOtthheerrss(in € thousands) ddeevveellooppmmeenntt100% % Share 100% % Share 100% % Share Income StatementRevenue 732 421 147,809 66,438 148,541 66,858 Result for the period - share of the (2,246) (1,291) 6,035 1,770 3,788 480 group Financial position Non-current assets 0 0 63,937 32,383 63,937 32,383 Current assets 352,261 202,374 452,793 201,858 805,054 404,232 Equity 109,754 63,053 37,453 16,589 147,207 79,642 Non-current liabilities 241,840 138,937 206,206 98,287 448,046 237,224 Current liabilities 667 383 273,070 119,367 273,737 119,750 Net Financial Debt 1,564 898 221,185 110,247 222,749 111,145 In the real estate development, multitechnics and construction & renovation segments, non-current assets and current assets mainly relate to JFK Real Estate: €352,261 thousand (100%), Cavallia Sp. Z.o.o : €39,046 thousand (100%), The Roots Office SàRL : €31,742 thousand (100%), BPI Chmielna Sp. z o.o. : €26,614 thousand (100%), Debrouckère Land SA : €26,025 thousand (100%), Bavière Développement SA : €25,412 thousand (100%), Erasmus Gardens SA: €25,050 thousand, MG Immo SRL : €24,696 thousand (100%), Arlon 53 SA : €22,706 thousand (100%), Goodways SA : €21,550 thousand (100%). Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 177 The information in the segment Investments and Holding is described hereunder: g December 2023 TToottaallIInnvveessttmmeennttss&&DDeeeeppCCHHoollddiinnggGGrreeeennOOffffsshhoorreeOOtthheerrss(in € thousands) HHoollddiinng100% % Share 100% % Share 100% % Share 100% % Share Income Statement Revenue 46,025 23,013 0 0 2,451 524 48,476 23,537 Result for the period - share 9,640 4,820 19,669 9,835 10,124 2,113 39,433 16,768 of the group Financial position Non-current assets 115,070 57,535 50,253 25,127 22,677 4,535 188,000 87,197 Current assets 165,086 82,543 9,255 4,628 19,642 6,490 193,983 93,661 Equity () 119,712 59,856 55,040 27,520 (6,871) 507 167,881 87,883 Non-current liabilities 93,889 46,945 3,938 1,969 16,746 3,351 114,573 52,265 Current liabilities 66,555 33,278 530 265 32,444 7,167 99,529 40,710 Net Financial Debt 85,055 42,528 (2,799) (1,400) 31,097 4,915 113,353 46,043 Condensed financial information by segments includes information from joint ventures and associated companies. The latter ones concern mainly Hofkouter NV, included in the Construction & Renovation segment and Luwa SA, included in the Investments & Holding segment. The information of the associated entities is described hereunder: December 2023 Hofkouter Luwa Others TOTAL (in € thousands) 100% % share 100% % share 100% % share 100% Q/P Income Statement Revenue 0 0 25,641 3,077 0 0 25,641 3,077 Result for the period (445) (156) 1,160 139 (576) (9) 139 (26) - share of the group Financial position 0 Non-current assets 8,546 2,991 208,922 25,071 0 0 217,468 28,062 Current assets 1,381 483 42,867 5,144 19,260 1,149 63,508 6,776 Equity 9,903 3,466 2,427 291 5,488 328 17,818 4,085 Non-current liabilities 0 0 191,083 22,930 0 0 191,083 22,930 Current liabilities 24 8 58,279 6,993 13,772 821 72,075 7,823 Net Financial Debt (1,284) (449) 193,914 23,270 (1,955) (30) 190,675 22,790 The reconciliation between the share of the CFE group in the net assets of these companies and the carrying amount of the investments accounted for using equity method is as follows : Multitechnics December 2024 Real estate Investments and Construction Total (in € thousands, CFE's % share)development & Holding & Renovation Net assets of partners before reconciliation items 67,511 1,209 88,266 156,986 Exclusion of non-controlling interests 0 0 (16,984) (16,984) Reconciliation items 0 0 7,963 7,963 Negative investments accounted for using equity method 28,417 0 0 28,417 CFE Group's carrying amount of the investment 95,928 1,209 79,245 176,382 Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 178 Multitechnics December 2023 Real estate Investments and Construction Total (in € thousands, CFE's % share) development & Holding & Renovation Net assets of partners before reconciliation items 79,642 3,710 87,883 171,235 Exclusion of non-controlling interests 0 0 (15,153) (15,153) Reconciliation items 29 (0) 4,418 4,447 Negative investments accounted for using equity method 24,833 3 0 24,836 CFE Group's carrying amount of the investment 104,504 3,713 77,148 185,365 The reconciliation items mainly concern the cancellation of negative equity of investments for which CFE has no financial support commitments. 16. OTHER NON-CURRENT FINANCIAL ASSETS As of December 31, 2024, other non-current financial assets amounted to €120,248 thousand, an increase compared to December 2023 (€118,553 thousand), and only include loans granted to investments accounted for using the equity method. In 2024, the increase in the account balance of these non-current financial receivables is mainly explained by : - the loan of € 3,762 thousand granted by BPI Real Estate Poland Sp. z o.o. for the Wieslawa project in Warsaw, in respect of which BPI sold 50% of its shares held at the end of the financial year in order to reduce its stake from 100% to 50% and thereby change its consolidation method to the equity method; - the granting of loans to project companies in the real estate development segment, which mainly concern Cavallia (€2,824 thousand), Brouck’R (€2,185 thousand), Move’hub (€1,392 thousand), Arlon 53 (€1,478 thousand), and Roots (€2,317 thousand) ; - the granting of additional loans to Green Stor (€2,339 thousand); offset by - the partial repayment of the loans granted to Emely (€2,876 thousand), Chmielna (€7,709 thousand), Green Offshore (€848 thousand) and LuWa (€936 thousand). In 2023, the decrease in the account balance of these non-current financial receivables is mainly due to : - the loan of € 9,677 thousand granted by BPI Real Estate Poland Sp. z o.o. for the Chmielna project in Warsaw, in respect of which BPI sold 50% of its shares held at the end of the financial year in order to reduce its stake from 100% to 50% and thereby change its consolidation method to the equity method; - the granting of loans to project companies in the real estate development segment, which mainly concern Cavallia (€1,899 thousand), Brouck’R (€4,001 thousand), Move’hub (€1,511 thousand), Bavière Développement (€1,126 thousand), Key West (€804 thousand) and Immo Kirchberg, the entity holding the share of JFK Real Estate for the Kronos project (€1,840 thousand) ; - the granting of loans to LuWa SPV (€3,236 thousand); offset by - the partial repayment of the loans granted to Arlon 53 (€7,752 thousand), MG Immo (€4,950 thousand), Deep C Holding (€9,518 thousand) and PPP Schulen Eupen (€1,641 thousand) and - the short-term reclassification of a loan granted to Tulip Antwerpen for an amount of 1,233 thousand euros, and - the reclassification of an amount of 24,237 thousand euros as explained in note 2.b. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 179 Year ended 31 December 62024 2023(in € thousands) BBaallaanncceeaatttthheeeennddoofftthheepprreevviioouussppeerriioodd111188,,555533113388,,229944Changes in consolidation scope 3,762 9,677 Increases 24,375 20,042 Repayments (25,123) (25,063) Transfers between asset items (1,829) (25,470) Impairment / reversals of impairment 66 (326) Effects of changes in foreign exchange rates 444 1,399 Balance at the end of the period 120,248 118,553 The "Increases" and "Repayments" lines include: - the grants and repayments related to the financing of SPVs in the Real Estate Development segment, which are included in the “Repayment/(New borrowings given) to investments accounted for using equity method in the real estate development segment " line of the consolidated cash flow statement. - the financing grants related to other segments (mainly the Investment and Holding segment) included in the " New borrowings given to investments accounted for using equity method" line of the consolidated cash flow statement, and - the financing repayments related to other segments (mainly the Investment and Holding segment) included in the “Repayment of borrowings given to investments accounted for using equity method" line of the consolidated cash flow statement. The amount of loans granted to real estate development companies consolidated using the equity method that are subordinated to other liabilities (mainly bank loans granted to finance projects) totaled € 47,007 thousand at 31 December 2024 (31 December 2023 : € 36,720 thousand). If the project developed by the real estate development company is financed by a project financing, it should be noted that there is no recourse on the repayment of the loan principal. However, two clauses are generally included in credit agreements that can be considered as conditional recourse: - Cost overrun clause: this represents the difference between the budgeted project costs as estimated at the time the credit was granted and the costs actually incurred. The risk of CFE having to make additional injections under the "cost overrun" clause is limited by the application of fixed-sum prices in construction contracts and by the safety margin calculated at the time of the project's initial feasibility (contingencies). - Cashflow deficiency clause. Under this clause, shareholders undertake to finance the SPV's operating costs and the interest and commissions on the bank loan to the extent that these are not covered by drawings on the facility. BPI believes that this potential recourse is not quantifiable. Accordingly, the carrying amount of BPI's receivables from real estate development companies accounted for using the equity method represents an estimate of BPI's maximum exposure to the financial obligations of these companies. Regarding credit risk; regular review of project profitability analyses ensures that future cash flows from projects will cover investments and loans made in these real estate companies. 6 As explained in note 2.b, an amount of 24,237 thousand euros was reclassified from the "Non-current provisions" category to the "Other non-current financial assets" category. This amount was included in the "Transfers from one category to another" section in 2023, and the opening balance (for the 2023 fiscal year) was not restated. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 180 17. CONSTRUCTION CONTRACTS The Group carries out a diversity of projects, all with different aspects regarding e.g. nature and scope, type of clients, type of contract and payment conditions and geographical location. Most of the turnover is paid by milestone payments after execution of the work and approval by the client. Contract assets and contract liabilities in compliance with IFRS 15 Revenue from contracts with customers relate to the work in progress of construction projects executed by the Group and services rendered. Work in progress shows the balance of revenue recognized on those contracts less progress billings, advance payments and potential provisions for losses. The net amount due by or to customers is determined on a contract-by-contract basis as the difference between these items. As described in paragraphs (K) and (T) of the section relating to significant accounting policies, the costs and revenues of construction contracts are recognized in expenses and revenue respectively based on the percentage of completion of the contract activity at the closing date. The percentage of completion is calculated based on the "cost to cost" method. An expected loss on a construction contract is recognized as an expense immediately. Contract asset are the entity's right to receive consideration in exchange for the transfer of goods or services it has provided to a customer, when this right depends on something other than the passage of time (e.g., the entity's future performance). If the entity provides goods or services to a customer before the customer pays the consideration or before the consideration is due, a contract asset is recognized for the conditional consideration earned. Contract liabilities represent the excess of progress billing over costs incurred and recognized profits and losses. These include provisions for losses to completion amounting to €19,908 thousand (December 31, 2023: €17,636 thousand), advances received amounting to €7,485 thousand (December 31, 2023: €10,799 thousand), as well as deferred income and accrued expenses related to ongoing projects, as recorded under the "Contract liabilities" item, amounting to €181,451 thousand (December 31, 2023: €173,183 thousand). Advances are amounts received by the Group before the corresponding work has been performed. (in € thousands) 31 December 2023 Business related changes Other changes 31 December 2024 Contract assets 68,411 (5,908) 193 62,696 Contract liabilities (201,618) (6,553) (673) (208,844) CCoonnssttrruuccttiioonnccoonnttrraaccttssiinnpprrooggrreessss--((113333,,220077)) ((1122,,446611)) (480)((114466,,114488)) nneett (in € thousands) 31 December 2022 Business related changes Other changes 31 December 2023 Contract assets 100,714 (32,538) 235 68,411 Contract liabilities (193,480) (21,185) 13,047 (201,618) CCoonnssttrruuccttiioonnccoonnttrraaccttssiinnpprrooggrreessss--(92,766) (53,723) 13,282 (133,207) nneett ‘Business-related changes’ relate to the progress of projects, changes in contract price estimates, and amendments to contracts. The increase in net contract as at 31 December 2024 is primarily attributable to the multitechnics and construction & renovation segments. Due to the high number of individual projects (with all different aspects regarding nature, type of clients, contract and payment conditions) a more detailed description of changes in contract assets and contract liabilities compared to prior year is not deemed relevant. In 2024, the item “Other changes” relates to exchange rate differences (€(480) thousand). The remaining performance obligations, i.e. the revenue to be generated in the next few years for the projects in progress at 31 December 2024 amount to €1,641 million (2023 : €1,104 million), of which €733 million should be executed in 2025 (as of December 31, 2023, €457 million were to be executed in 2024). Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 181 18. INVENTORIES As of December 31, 2024, inventories amounted to €141,374 thousand (2023 : €161,844 thousand) and are mainly derived from real estate projects developed by BPI Real Estate Belgium SA and its fully consolidated subsidiaries. The inventories are detailed as follows : Business Year ended 31 December Allowances/reversals Other 2023 related 2024 (in € thousands) of impairment losses changes changes Raw materials and auxiliary products 11,115 (330) 0 9 10,794 Impairments on inventories of raw materials and auxiliary products (31) 0 (38) 0 (69) Finished products and properties held for sale 152,614 (15,078) 0 (4,990) 132,546 Impairments on inventories of finished products and properties held for (1,854) 0 (178) 135 (1,897) sale Inventories 161,844 (15,408) (216) (4,846) 141,374 Business Year ended 31 December Allowances/reversals Other 2022 related 2023 (in € thousands) of impairment losses changes changes Raw materials and auxiliary products 9,859 1,227 0 29 11,115 Impairments on inventories of raw materials and auxiliary products (33) 0 (5) 7 (31) Finished products and properties held for sale 160,113 11,396 0 (18,895) 152,614 Impairments on inventories of finished products and properties held for (1,472) 0 (382) 0 (1,854) sale Inventories 168,467 12,623 (387) (18,859) 161,844 In 2024, “Other changes” (€(4,846) thousand) include exchange-rate variations (€ 1,375 thousand) as well as the impact of the change in consolidation method for BPI Wieslawa (€ (6,336) thousand), from full consolidation to investments accounted for using equity method following the sale of 50% of the shares. Business related changes (€15,408 thousand) are mainly explained by : - the delivery of the Bernardowo project located in the Gdansk region, Panoramiqa project in Poznan (1st phase), and Czysta project in Wroclaw; offset by, - the acquisition of two additional plots on the Pourpelt site in Bertange and the construction of the Piano Forte residential project. The breakdown of inventories by stage of project development in the Real Estate Development segment is as follows: Year ended 31 December2023 2024 (in € thousands) Unsold units post completion 41,830 24,374 Properties under construction 38,557 81,024 Properties in development 46,153 39,886 Inventories Real Estate Development segment 126,541 145,285 19. CASH AND CASH EQUIVALENTS Year ended 31 December 2024 2023 (in € thousands) Short-term bank deposits 38,247 27,215 Cash in hand and at bank 135,263 126,877 Cash and cash equivalents 173,510 154,092 Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 182 The cash position includes €82.9 million available at CFE SA. The cash-position balance is broken down into temporary companies and foreign entities not included in the cash pooling. Short-term bank deposits consist of money placed with financial institutions with a duration of a few days to a few months. These deposits are subject to a floating rate interest, which is usually linked to Euribor or Ester rates with a floor at 0%. 20. CAPITAL GRANTS The CFE group did not receive any capital grant in 2024. 21. INFORMATION RELATED TO STOCK OPTION PLANS S TOCK OPTION PLANS In the second half of 2022, the Board of Directors approved a stock option plan to involve the members of the Executive Committee in the long-term growth of the Group. The plan provides that each option is for one CFE share and is granted free of charge. Options have a term of seven years. Options are cancelled if the contractual relationship is terminated before the vesting date. During 2022, 200,000 options were granted to two beneficiaries, members of the Executive Committee, who accepted them in full. In December 2024, the Board of Directors, on the recommendation of the Nominations and Remuneration Committee, approved a second stock option plan to involve the members of the Executive Committee in the long-term development of the Group. The plan provides that the options each relate to one CFE share and are granted free of charge. The options have a lifespan of 5 years. The options are cancelled if the contractual relationship is terminated before the vesting date. During 2024, 488,000 options were granted to seven beneficiaries, members of the Executive Committee, who accepted them in full. During the financial year At year-end Number of Options Options Expired Number of Strike price Year granted exercisable Exercise period granted exercised options options (in euros) options 2022 200,000 0 0 200,000 0 10.31 01/01/2026 – 10/16/2029 2023 0 0 0 200,0000 10.31 01/01/2026 – 10/16/2029 2024 488,000 0 0 688,000 0 7.21 01/01/2026 – 12/26/2029 For the outstanding stock options at the end of the period, the weighted average remaining contractual life is as follows : Number of years December 2022 6,8 December 2023 5,7 December 2024 4,9 Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 183 The value of the options, calculated on the basis of their value when granted, is determined by an independent expert on the basis of the following assumptions : VVaalluueeaaccccoorrddiinnggttootthheeBBllaacckkNumber of Quoted Expected && SScchhoolleess mmeetthhoodd Year granted options Dividend yield Volatility Interest rate market price duration exercised (€/share) Total value (k€) 2022 10.46 0 4.31% 33.10% 2.66% 7.0 2.406 481 2024 5.77 0 10.25% 35.79% 2.24% 5.0 0.739 361 The total value of the options granted in 2022 amounts to €481 thousand as of December 31, 2024. The fair value is recognized in the consolidated statement of income on a straight-line basis over the vesting period (3 years). Consequently, during the period ending 31 December 2024, an expense of €160 thousand was recognized in this respect, the impact of which is presented on the line “Movements related to treasury shares and share-based payments” in the consolidation statements of changes in equity. The total value of the options granted in 2024 amounts to €361 thousand. Since these were granted on December 27, 2024, the expense related to the 2024 financial year is insignificant and has not been recognized. TREASURY SHARES CFE did not acquire any new treasury shares during the 2024 financial year. At the end of the financial year 2024, the number of own shares held was 512,557 , at an average price of €8.91 per share. During the financial year Year Balance at start of year Year-end balance Purchases Sales 2022 0 1,241,650 849,492 392,158 2023 392,158 120,399 0 512,557 2024 512,557 0 0 512,557 Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 184 22. EMPLOYEE BENEFITS The CFE group contributes to pension and early retirement plans in several of the countries in which it operates. These benefits are recognised in accordance with IAS 19 and are regarded as "post-employment" and "long-term benefit plans". As of December 31, 2024, the CFE group's net liability relating to obligations for ‘post-employment’ benefits for pensions and early- retirement amounted to €8,096 thousand (2023 : €9,198 thousand) and corresponds to the item "Employee benefit obligations" in the consolidated statement of financial position. This item also includes provisions for other employee benefits for an amount of €67 thousand as at 31 December 2024 (2023: €203 thousand). MAIN CHARACTERISTICS OF THE CFE GROUP’S POST-EMPLOYMENT BENEFIT PLANS Post-employment benefit plans are classified either as defined-contribution or defined-benefit plans. Defined-contribution plans Defined-contribution pension plans are those under which the company makes certain contributions to an entity or separate fund in accordance with the plan arrangements. Where contributions have been made, the company has no additional obligation. Defined-benefit plans All plans that are not defined-contribution plans are presumed to be defined-benefit plans. These plans are either funded externally through pension funds or insurance companies ("funded plans") or funded within the CFE group ("unfunded plans"). For the main plans, an actuarial valuation is carried out every year by independent actuaries. Post-employment benefit plans in which the CFE group takes part confer benefits to staff on retirement and death. All plans are funded externally through an insurance company unrelated to the CFE group. Obligations under defined-benefit plans for are exclusively in Belgium. Belgian post-employment benefit plans are invested in "Class 21" type plans, which implies that the insurer guarantees a minimum interest rate on the contributions paid. All plans comply with local regulations and minimum funding requirements. Most of the CFE group's post-employment benefit plans are defined-benefit. MAIN CHARACTERISTICS OF DEFINED-BENEFIT PLANS Belgian retirement plans « Class 21 » type A number of staff members are covered by a "Class 21" type insurance-funded defined-contribution plan. Belgian law requires the employer to guarantee for insured defined-contribution plans a minimum return of 3.25% on employer contributions and a minimum return of 3.75% on employee contributions paid prior to January 1, 2016, and a minimum return equal to a proportion (currently 85%) of the average of the last 24 months of the 10-year OLO rates. The rate is a minimum of 1.75% and a maximum of 3.75%. So far, the minimum rate of 1.75% has always applied, but this rate is subject to change in the future. As a result of the modification of this law at the end of 2015, these pension schemes have been accounted for as defined- benefit plans. Construction workers are covered by the defined-contribution pension plan funded by the "fbz-fse Constructiv" multi-employer pension fund. This pension plan is also governed by Belgian law, requiring a minimum return as mentioned above. Risk relating to defined-benefit plans Defined-benefit plans generally expose the employer to actuarial risks such as changes in interest rates, wages and inflation. The potential impact of these risks is illustrated by a sensitivity analysis, details of which are set out below. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 185 The risk arising from benefits being spread over time is limited, since most plans involve a lump-sum payment. However, there is an option to pay annuities. If this option is used, the payment of annuities is handled through an insurance policy that converts the lump sum into an annuity. The risk of death in service is entirely covered through insurance. The insolvency risk of insurance companies is taken into account in the calculation of the fair value of plan assets. Governance of defined-benefit plans The administration and governance of insured plans are handled by the insurance company. CFE ensures that insurance companies comply with all retirement laws. Defined-benefit plan assets Plan assets invested with an insurance company are not subject to the fluctuations of an active market as they are "Class 21" insurance policies (with interest rate guarantees). These are mainly debt instruments such as government and corporate bonds and real estate. Plan assets do not include the CFE group's own financial instruments or any building used by the CFE group. The fair value of the insurance policies corresponds to the discounted value of contributions paid, taking into account the return contractually agreed with the insurance company (Belgium). INFORMATION RELATING TO DEFINED-BENEFIT AND EARLY RETIREMENT PLANS Year ended 31 December 2024 2023 (in € thousands) Provisions taken for defined-benefit and early retirement plan obligations (8,096) (9,198) Accrued rights, partly or fully funded (59,407) (59,270) Fair value of plan assets 51,312 50,072 Provisions taken for obligations in the consolidated statement of financial position (8,096) (9,198) Liabilities (8,096) (9,198) Assets 0 0 CHANGES IN PROVISIONS TAKEN FOR DEFINED-BENEFIT AND EARLY RETIREMENT PLAN OBLIGATIONS Year ended 31 December 2024 2023 (in € thousands) As at January 1 (9,198) (8,372) Expenses recognized in profit or loss (3,550) (3,490) Expenses recognized in other elements of the comprehensive income (31) (2,400) Contributions to plan assets 4,428 4,927 Other movements 255 137 Transfers to liabilities associated with assets held for sale 0 0 AAssaattDDeecceemmbbeerr3311((88,,009966))((99,,119988)) Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 186 EXPENSES RECOGNIZED IN INCOME IN RESPECT OF DEFINED-BENEFIT AND EARLY RETIREMENT PLANS YYeeaarr eennddeedd 3311 DDeecceemmbbeerr 2200224422002233 (in € thousands) Expenses recognized in profit or loss (3,550) (3,490) Service cost (3,360) (3,167) Discounting effects (1,827) (1,929) Return on plan assets (-) 1,612 1,713 Unrecognized past service cost 25 (107) EXPENSES RECOGNIZED IN THE OTHER ELEMENTS OF THE COMPREHENSIVE INCOME IN RESPECT OF DEFINED -BENEFIT AND EARLY RETIREMENT PLANS Year ended 31 December 2024 2023 (in € thousands) Expenses recognized in other elements of the comprehensive income (31) (2,400) Actuarial gains and losses 810 (2,765) Return on plan assets (excluding amounts recognized in profit or loss) (841) 365 Effect of changes in foreign exchange rates 0 0 CHANGES IN PROVISIONS TAKEN FOR DEFINED-BENEFIT AND EARLY RETIREMENT PLAN OBLIGATIONS Year ended 31 December 2024 2023 (in € thousands) As at January 1 (59,270) (54,962) Service cost (3,360) (3,167) Discounting effects (1,827) (1,929) Contributions to plan assets (571) (581) Benefits paid to beneficiaries 4,300 3,589 Revaluation of liabilities (assets) 834 (2,872) Actuarial gains and losses resulting from changes to demographic assumptions 0 0 Actuarial gains and losses resulting from changes to financial assumptions 1,571 (2,491) Actuarial gains and losses resulting from experience adjustments (737) (381) Unrecognized past service cost 0 0 Other movements 487 652 As at December 31 (59,407) (59,270) Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 187 CHANGES IN DEFINED-BENEFIT AND EARLY RETIREMENT PLAN ASSETS Year ended 31 December 2024 2023 (in € thousands) As at January 1 50,072 46,590 Return on plan assets (excluding amounts recognized in profit or loss) (841) 365 Return on plan assets 1,614 1,713 Contributions to plan assets 5,254 5,641 Benefits paid to beneficiaries (4,300) (3,589) Other movements (487) (648) As at December 31 51,312 50,072 MAIN ACTUARIAL ASSUMPTIONS AT THE END OF THE PERIOD (EXPRESSED AS WEIGHTED AVERAGES ) 2024 2023 Discount rate at December 31 3.35% 3.15% Expected rate of salary increases 3.10% 3.20% Inflation rate 2.10% 2.20% Mortality tables MR-5/FR-5 MR-5/FR-5 Taking into account the current macroeconomic environment which has led to a slight decrease in long term interest rates, the rates prevailing on the financial markets have led the CFE group to apply a discount rate of 3.35% (compared to 3.15% at 31 December 2023) in determining its commitments to be provisioned in the consolidated statement of financial position for defined-benefit and early retirement plans as at 31 December 2024 (duration of 10.5 years). OTHER CHARACTERISTICS OF DEFINED-BENEFIT PLANS 2024 2023 Duration (in years) 10.50 11.00 Average real return on plan assets 1.54% 4.40% Contributions expected to be made to the plans in the next financial year 4,136 4,090 (in € thousands) SENSITIVITY ANALYSIS (IMPACT ON THE AMOUNT OF OBLIGATIONS) 2024 2023 Discount rate 25bp increase -2.47% -2.52% 25bp decrease 2.57% 2.64% Salary growth rate 25bp increase 1.72% 1.79% 25bp decrease -1.64% -1.70% Inflation rate 25bp increase 1.12% 1.15% 25bp decrease 0.30% 0.35% Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 188 23. PROVISIONS OTHER THAN THOSE RELATING TO NON- CURRENT EMPLOYEE BENEFIT OBLIGATIONS As of December 31, 2024, these provisions amounted to €36,089 thousand, which represents an increase of €3,008 thousand compared to year-end 2023 (€33,081 thousand). Provisions for negative After-sales (in € thousands) investments accounted Other risks Total service for using equity method 7Balance at the end of the previous period15,713 598 16,770 33,081 Effects of changes in foreign exchange rates 32 0 64 96 Transfers between items 0 1,924 (849) 1,075 Additions to provisions 1,869 0 4,440 6,309 Used provisions (2,172) 0 (2,300) (4,472) Balance at the end of the period 15,442 2,522 18,125 36,089 of which current: 1,545 0 15,099 16,644 non-current: 13,897 2,522 3,026 19,445 The provision for after-sales service increased by €271 thousand and amounted to €15,442 thousand as at 31 December 2024. The change in 2024 was mainly the result of additions to and/or use of provisions recognized in relation to 10-year warranties. When the CFE group’s share in the losses from investment accounted for using equity method exceeds the carrying amount of the investment, the CFE Group ceases to recognize its share of future losses. Losses beyond this amount are not recognized, except for the amount of the CFE Group's commitments to these investments accounted for using the equity method. If applicable, the share of losses is first deducted from financial assets towards the associate. In the absence of financial assets or when losses exceed financial assets, a provision is made among non-current provisions, as the Group considers it has an obligation to support these companies and their projects. Provisions for other risks decreased by €1,355 thousand and amounted to €18,125 thousand as at 31 December 2024. Provisions for other current risks (€15,099 thousand) mainly include provisions for current litigation (€9,779 thousand) as well as provisions for other current liabilities (€4,304 thousand). As regards other current liabilities, we cannot provide more information on the assumptions made, or on the time of the probable cash outflow, given that negotiations with the customers are in still in progress. Provisions for other non-current risks include the provisions for risks not directly related to construction site operations in progress. 24. CONTINGENT ASSETS AND LIABILITIES Based on available information at the date on which the financial statements were approved by the Board of Directors, CFE is not aware of any significant contingent assets or liabilities, with the exception of contingent assets or liabilities related to construction contracts (for example, the group's claims against customers or claims by subcontractors), which can be described as normal in the construction & renovation and multitechnics sectors and are handled by applying the percentage of completion method when the revenue is recognized. Belgian judicial authorities are currently conducting an investigation into alleged criminal acts relating to the construction of the Grand Hôtel de N'Djamena in Chad. As a reminder, this contract, which dates back to 2011, resulted in a loss of more than €50 million for CFE due to the non-payment of part of its receivables. The work was carried out by CFE Chad, a subsidiary of the Group until its sale in 2021. As part of this investigation, a search was conducted at CFE's headquarters on September 4, 2024. In addition, several members of management and the board of directors, as well as former employees of the CFE Group, were interviewed. As of the date of this report, CFE has not yet had access to the investigation file, and no charges have been filed against CFE or 7 Negative investments accounted for using the equity method, previously presented under ‘Non-current provisions’ in their entirety, are, from 2024, presented firstly as a deduction from any non-current financial assets relating to these investments and the balance under ‘Non-current provisions’. In this respect, an amount of 24.237 thousand euros was reclassified from “Provisions for investment accounted for using the negative equity method” to “Other non-current financial assets”. The restatement is described in note 2.b. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 189 its current officers and/or directors, nor, to its knowledge, against any former CFE Group employees. CFE is cooperating fully with the ongoing investigation. Under the current circumstances and in light of the above, CFE is unable to reliably estimate the financial consequences of the ongoing proceedings. Therefore, no provision has been recorded as of December 31, 2024, in accordance with the requirements of IAS 37. CFE also sees to it that the companies of the group take the necessary organisational measures to ensure that the current laws and regulations are observed, including the rules on compliance. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 190 25. NET FINANCIAL DEBT B REAKDOWN OF THE NET FINANCIAL DEBT AS DEFINED BY THE GROUP 2024 2023 (in € thousands) Non-current Current Total Non-current Current Total Bank loans and other financial debts 72,306 14,040 86,346 42,519 37,679 80,198 Bonds 0 0 0 0 0 0 Drawings on credit facilities 75,000 2,985 77,985 112,492 0 112,492 Lease debts 37,523 11,356 48,879 35,954 10,465 46,419 Total long-term financial debt 184,829 28,381 213,210 190,965 48,144 239,109 Short-term financial debts 0 1,995 1,995 0 8,250 8,250 Cash equivalents 0 (38,247) (38,247) 0 (27,215) (27,215) Cash 0 (135,264) (135,264) 0 (126,877) (126,877) Net short-term financial debt/(cash) 0 (171,516) (171,516) 0 (145,842) (145,842) Total net financial debt 184,829 (143,135) 41,694 190,965 (97,698) 93,267 Derivative instruments used as interest-rate 526 (77) 449 (211) 0 (211) hedges Bank loans and other financial debts (€86,346 thousand) mainly concern the medium-term bank loans of the real estate development segment and allocated to the financing of certain projects, treasury notes issued by CFE SA and BPI Real Estate Belgium SA as well as the financing of the headquarters of Van Laere NV and VMA NV. As of December 31, 2024, the lease debts amounted to €48,879 thousand and relate to contracts that meet the criteria of the scope of application of IFRS 16 Leases. As of December 31, 2024, short-term financial debts amounted to €1,995 thousand and relate to treasury notes issued by BPI Real Estate Belgium SA. DEBT MATURITY SCHEDULE BBeettwweeeenn 55 YYeeaarreennddeedd3311DDeecceemmbbeerr22002244BBeettwweeeenn11BBeettwweeeenn22BBeettwweeeenn33MMoorreetthhaannLLeesssstthhaann11yyeeaarraanndd1100TToottaall((iinn€€tthhoouussaannddss))aanndd22yyeeaarrssaanndd33yyeeaarrssaanndd55yyeeaarrss1100yyeeaarrssyyeeaarrss Bank loans and other financial debts 19,104 11,400 37,871 18,484 6,210 3,769 96,838 Drawings on credit facilities 3,192 10,115 65,697 0 0 0 79,004 Lease debts 13,337 11,194 8,926 11,634 11,603 0 56,694 Total long-term financial debt 35,632 32,709 112,494 30,118 17,813 3,769 232,536 Short-term financial debts 1,995 0 0 0 0 0 1,995 Cash equivalents (38,247) 0 0 0 0 0 (38,247) Cash (135,264) 0 0 0 0 0 (135,264) Net short-term financial debt/(cash) (171,516) 0 0 0 0 0 (171,516) TToottaall nneett ffiinnaanncciiaall ddeebbtt ((113355,,888844)) 3322,,770099 111122,,449944 3300,,111188 1177,,881133 33,,776699 6611,,002200 BBeettwweeeenn55YYeeaarreennddeedd3311DDeecceemmbbeerr22002233BBeettwweeeenn11BBeettwweeeenn22BBeettwweeeenn33MMoorreetthhaannLLeesssstthhaann11yyeeaarraanndd1100TToottaall((iinn€€tthhoouussaannddss))aanndd22yyeeaarrssaanndd33yyeeaarrssaanndd55yyeeaarrss1100yyeeaarrssyyeeaarrss Bank loans and other financial debts 38,639 13,853 18,197 2,797 6,858 5,305 85,648 Drawings on credit facilities 0 20,479 17,708 75,930 0 0 114,117 Lease debts 11,845 9,421 7,662 11,750 11,132 2,302 54,112 Total long-term financial debt 50,484 43,752 43,566 90,477 17,991 7,607 253,877 Short-term financial debts 8,250 0 0 0 0 0 8,250 Cash equivalents (27,215) 0 0 0 0 0 (27,215) Cash (126,877) 0 0 0 0 0 (126,877) Net short-term financial debt/(cash) (145,842) 0 0 0 0 0 (145,842) TToottaall nneett ffiinnaanncciiaall ddeebbtt ((9955,,335588)) 4433,,775522 4433,,556666 9900,,447777 1177,,999911 77,,660077 110088,,003355 Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 191 CASH FLOWS RELATING TO FINANCIAL LIABILITIES Non-cash movements Total (in € thousands) Other 2023 Cash flow Transfers non-cash 2024 changes movements Non-current financial liabilities Other non-current financial debts 190,965 (7,706) (6,856) 8,425 1,570 184,829 Current financial liabilities Bonds 0 0 0 0 0 0 Other current financial debts 56,394 (39,930) 6,856 7,055 13,912 30,376 Total 247,359 (47,636) 0 15,480 15,482 215,205 Non-cash movements Total (in € thousands) Other 2022 Cash flow Transfers non-cash 2023 changes movements Non-current financial liabilitiesOther non-current financial debts 154,048 55,508 (36,213) 17,622 (18,591) 190,965 Current financial liabilitiesBonds 0 0 0 0 0 0 Other current financial debts 21,994 (7,177) 36,213 5,364 41,577 56,394 Total176,042 48,331 0 22,986 22,986 247,359 As of December 31, 2024, the CFE Group’s financial debts amounted to €215,205 thousand, a decrease of €32,154 thousand compared to December 31, 2023 mainly explained by the evolution of the working capital. Cashflows mainly include the decrease of the drawings on corporate credit facilities (€(34,515) thousand), the reimbursement of BPI Real Estate Belgium SA treasury notes (€(6,250) thousand), new loans obtained to finance projects in the Real Estate Development segment (€12,574 million), refinancing of CFE SA treasury notes (€ 35 million reimbursed and €30 million issued) and the principal repayments on leasing liabilities (€(12,830) thousand). In 2024, interests paid on leases amounted to €(1,8) million (2023 8 : €(1.0) million). CREDIT FACILITIES AND BANK TERM LOANS As of December 31, 2024, CFE SA held confirmed long-term bank credit facilities of €190 million (2023: €170 million), of which €75 million was drawn as at 31 December 2024 (2023: €90 million). For some of them, sustainability and safety criteria for which (non- )compliance has an effect on the margin applied by the bank have been included. CFE SA also has the facility of issuing treasury notes up to an amount of €50 million. This source of financing was used to an amount of €30 million as at 31 December 2024 (2023: €35 million). To limit the interest rate risk, interest rate hedging contracts have been put in place for a notional amount of €80 million (2023: €70 million); the fair value of these derivatives amounts to €(175) thousand (2023: €(336) thousand). As of December 31, 2024, BPI Real Estate Belgium SA and its subsidiary BPI Real Estate Luxembourg SA together have confirmed long-term bank credit facilities of €60 million (2023: €60 million), of which € 3 million was drawn at 31 December 2024 (2023: €22.5 million). BPI Real Estate Belgium SA also has the facility of issuing treasury notes up to an amount of €40 million. An amount of €10.25 million was drawn from this source of funding as of December 31, 2024 (2023: 16.5 million). To limit the interest rate risk, interest rate hedging contracts have been put in place for a notional amount of €32,4 million (2023: €32,4 million); the fair value of these derivatives amounts to €(272) thousand (2023: 125 thousand). 8 Amount as at December 31 2023 (€(1.0) million) is restated. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 192 FINANCIAL COVENANTS Bilateral credit facilities are subject to specific covenants that take into account factors such as financial debt and the ratio of debt to equity or non-current assets, as well as generated cash flows. The covenants applicable to the IFRS consolidated financial statements of CFE group, the statutory financial statements of CFE SA and the IFRS stand-alone financial statements of BPI Real Estate Belgium have been fully met at the end of December 2024 and are detailed below. Ratio name Formula Requirement December 2024 CFE SA, consolidated financial statements IFRS Net financial debt / (Equity - intangible assets - Solvency ratio <1.65 0.19 goodwill) Non-current financial debt / Property, plant and Long-term net financial debt <1 0.78 equipment Coverage of financial debt by cash flow Operating cash flow + net current financial debt >0 >0 181,6 M€ CFE SA, statutory financial statements, Belgian accounting standards Equity Equity >125 M€ 139 M€ BPI Real Estate Belgium SA, consolidated financial statements IFRS – Stand Alone Minimum equity Group equity + Subordinated Debts >70 M€ 200,3 M€ Solvency ratio Net financial debt / (Equity + subordinated debts) <1.65 0.47 Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 193 26. FINANCIAL RISK MANAGEMENT CAPITAL MANAGEMENT At year-end 2024, the capital structure of the CFE group is made up of a net financial debt €41,694 thousand (we refer to note 25) and of a net equity position of €247,775 thousand. Moreover, CFE SA also has confirmed bank credit facilities (we refer note 25), whereas CFE SA and BPI SA have the option of issuing treasury notes. The CFE Group’s equity includes share capital, share premium, retained earnings, treasury shares and non-controlling interests. The CFE group does not own any convertible bonds. The entire equity is used to finance the operations described in the corporate purposes of CFE and its subsidiaries. INTEREST RATE RISK The interest rate risk management is assured within the group at the level of the operating segments. Construction and renovation activities are characterized by a cash surplus. Cash management is mainly centralized through the cash pooling. On the other hand, CFE SA and BPI Real Estate Belgium SA also uses derivative instruments (IRS & CAP) to hedge the interest rate risk relating to drawings on its confirmed credit facilities. The tables hereunder present the outstanding amounts and the related effective average rate by source of financing. Effective average interest rate before considering derivatives products - 12/31/2024 Fixed rate Floating rate Total Type of debts Amounts Quota Rate Amounts Quota Rate Amounts Quota Rate Bank loans and other 53,824 52.41% 2.97% 32,522 29.43% 7.38% 86,346 40.50% 5.91% financial debts Lease debts 48,879 47.59% 3.71% 0 0.00% 0.00% 48,879 22.93% 3.71% Drawings on credit facilities 0 0.00% 0.00% 77,985 70.57% 4.44% 77,985 36.58% 4.44% Total 102,703 100% 3.21% 110,507 100% 5.03% 213,210 100% 4.79% Effective average interest rate before considering derivatives products - 12/31/2023 Fixed rate Floating rate Total Type of debts Amounts Quota Rate Amounts Quota Rate Amounts Quota Rate Bank loans and other financial debts 59,958 56.36% 1.72% 20,240 15.25% 6.35% 80,198 33.54% 2.89% Lease debts 46,419 43.64% 3.53% 0 0.00% 0.00% 46,419 19.41% 3.53% Drawings on credit facilities 0 0.00% 0.00% 112,492 84.75% 5.40% 112,492 47.05% 5.40% Total 110066,,337777110000%%22..9900%%113322,,773322110000%%55..5555%%223399,,110099110000%%44..2266%% Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 194 Effective average interest rate after considering derivatives products - 12/31/2024 Fixed rate Floating rate Floating rate capped + inflation Total Type of debts Amounts Quota Rate Amounts Quota Rate Amounts Quota Rate Amounts Quota Rate Bank loans and other 53,824 31.17% 2.97% 32,522 80.29% 7.38% 0 0.00% 0.00% 86,346 40.50% 5.91% financial debts Lease debts 48,879 28.30% 3.53% 0 0.00% 0.00% 0 0.00% 0.00% 48,879 22.93% 3.53% Drawings on credit facilities 70,000 40.53% 2.95% 7,985 19.71% 5.09% 0 0.00% 0.00% 77,985 36.58% 3.65% Total 172,703 100% 2.99% 40,507 100% 6.09% 0 0.00% 0.00% 213,210 100% 4.22% Effective average interest rate after considering derivatives products - 12/31/2023 Fixed rate Floating rate Floating rate capped + inflation Total Type of debts Amounts Quota Rate Amounts Quota Rate Amounts Quota Rate Amounts Quota Rate Bank loans and other financial debts 59,958 37.74% 1.72% 20,240 25.23% 6.35% 0 0.00% 0.00% 80,198 33.54% 2.89% Lease debts 46,419 29.22% 3.53% 0 0.00% 0.00% 0 0.00% 0.00% 46,419 19.41% 3.53% Drawings on credit facilities 52,500 33.04% 3.19% 59,992 74.77% 6.16% 0 0.00% 0.00% 112,492 47.05% 3.19% Total 115588,,887777110000%%22..9933%%8800,,223322110000%%66..1199%%0000..0000%%00..0000%%223399,,110099110000%%33..9999%%SENSITIVITY TO THE INTEREST RATE RISK The CFE group is subject to the risk of interest rate fluctuations on its result for the period, taking into account : - cash flows relating to financial instruments at floating rate after hedging ; - financial instruments at fixed rate, recognised at fair value in the consolidated statement of financial position through profit and loss ; - derivative instruments not qualified as hedges. On the other hand, the variation in the value of derivatives qualified as cash flow hedges does not directly impact the consolidated statement of comprehensive income, and is recognized in ‘other elements of the comprehensive income’. In the event that the value of the derivatives has to be restated, the impact is recognized in the consolidated statement of income. In the analysis below, it is assumed that the figures for the financial debt and the derivative instruments as at 31 December 2024 remain constant over the year. The consequence of a variation of 50 basis points in the interest rate at the closing date would be an increase or decrease in the equity and result for the period, as indicated by the figures below. For the purposes of this analysis, it is assumed that the other parameters remain constant. (in € thousands) 12/31/2024 Result for the period Equity Impact of the Impact of the sensitivity Impact of the Impact of the sensitivity calculation calculation sensitivity calculation sensitivity calculation +50bp -50bp +50bp -50bp Non-current debts (+ portion due in the year) 554 (554) with variable rates after accounting hedge Net short-term financial debt () 10 (10) Derivatives not qualified as hedge Derivatives qualified as highly potential or 875 (950) certain cash flow Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 195 (in € thousands) 12/31/20239Result for the period Equity Impact of the Impact of the sensitivity Impact of the Impact of the sensitivity calculation calculation sensitivity calculation sensitivity calculation +50bp -50bp +50bp -50bpNon-current debts (+ portion due in the year) 683 (683) with variable rates after accounting hedge Net short-term financial debt () 41 (41) Derivatives not qualified as hedge Derivatives qualified as highly potential or 1.348 (1.256) certain cash flow ( ) excluding cash at bank and in hand. DESCRIPTION OF CASH FLOW HEDGE OPERATIONS At the closing date, the instruments qualified as cash flow hedges relate to CFE SA and BPI Real Estate Belgium SA and have the following characteristics: (in € thousands) 12/31/2024 < 1 year Between 1 and 2 years Between 2 and 5 years > 5 years Notional Fair value asset Fair value liability Swap of interest rate receive floating rate and pay fixed rate Interest rate options (cap, collar) Interest rate derivatives - highly probable projected cash flow hedges 0 Swap of interest rate receive floating rate and pay fixed rate 0 32,416 50,000 0 82,416 150 (618) Interest rate options (cap, collar) 10000 0 10,000 20,000 53 (34) Interest rate derivatives - certain cashflow hedge 10,000 32,416 60,000 0 102,416 203 (652) (in € thousands) 12/31/2023 < 1 year Between 1 and 2 years Between 2 and 5 years > 5 years Notional Fair value asset Fair value liability Swap of interest rate receive floating rate and pay fixed rate Interest rate options (cap, collar) Interest rate derivatives - highly probable projected cash flow hedges 0 Swap of interest rate receive floating rate and pay fixed rate 0 10,000 72,416 0 82,416 158 (125) Interest rate options (cap, collar) 10,000 10,000 20,000 178 Interest rate derivatives - certain cashflow hedge 0 20,000 82,416 0 102,416 336 (125) EXCHANGE RATE RISKS Distribution of the long term financial debts by currency The breakdown of outstanding long-term debts (without considering lease debts which are mainly in euros) by currency is as follows : (in € thousands) 2200224422002233Euro 159,293 187,612 Polish zloty 5,038 5,078 Other currencies 0 0 TToottaalllloonngg--tteerrmmddeebbttss116644,,333311119922,,669900 As of December 31, 2024, the outstanding long-term financial debts (excluding lease debts) amounted to €164,331 thousand compared to €192,690 thousand as of December 31, 2023. 9 Comparatives figures as at December 31, 2023 were restated to calculate the interest rate sensitivity on the financial debts taking into account derivatives instruments. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 196 The following table discloses the fair value and the notional amount of exchange rate instruments issued (forward sales/purchase agreements) (+ : asset / - : liability) : The fair value variation of exchange rate instruments is considered as construction costs. This variation is presented as an operating result. The CFE group, is exposed to exchange rate fluctuation risk on its result for the period. The following analysis is performed supposing that the amount of financial assets/liabilities and derivatives as at 31 December 2024 is constant over the year. A variation of 5% of exchange rate (appreciation of the EUR) at closing date would have as a consequence an increase or a decrease of the equity and the result for the period for the amounts disclosed here below. For the purposes of this analysis, it is assumed that the other parameters remain constant. 10 Comparatives figures were restated and computed after intercompany eliminations. 12/31/2024 PLN - Zlotys ((iinn€€tthhoouussaannddss))Notional Fair value Forward purchases 0 0 Forward sales 0 0 31/12/2023 PLN - Zlotys (in € thousands) Notional Fair value Forward purchases 0 0 Forward sales 12,625 2,657 31/12/2024 (€ thousands) Result for the period Impact of sensitivity calculation - Impact of sensitivity calculation - depreciation of 5% of the EUR appreciation of 5% of the EUR Non-current debts (+ portion due within the year) (271) 271 with variable rates after accounting hedge Net short term financial debt (386) 386 Working capital (783) 783 1031/12/2023 (€ thousands)Result for the period Impact of sensitivity calculation - Impact of sensitivity calculation - depreciation of 5% of the EUR appreciation of 5% of the EUR Non-current debts (+ portion due within the year) (254) 254 with variable rates after accounting hedge Net short term financial debt (181) 181 Working capital (2.953) 2.953 Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 197 RISK RELATED TO RAW MATERIALS Raw materials and consumables incorporated into the works constitute an essential element of the cost price. Although some contracts include price revision clauses or revision formulas, the risk of price fluctuation of raw materials remains significant. CREDIT AND COUNTERPARTY RISK The CFE group is exposed to credit risk in the event of insolvency of its clients. It is exposed to the counterparty risk in the context of cash deposits, subscription of negotiable debt securities, financial receivables and derivative products. The CFE group set up procedures in order to avoid and limit the concentration of credit risk. Financial instruments The CFE group has defined a system of investment limits to manage the counterparty risk. This system determines maximum amounts eligible for investment by counterparty defined according to their credit ratings published by Standard & Poor’s and Moody’s. These limits are regularly monitored and updated. Customers With regard to the risk on trade receivables, the group has set up procedures to limit this risk. It should be noted that a significant part of the consolidated revenue is realized with public or semi-public customers. In addition, the CFE group considers that the concentration of the counterparty risk for customers is limited due to the large number of customers. In order to reduce the current risk, the CFE group regularly monitors its outstanding trade receivables and adapts its position towards them. The analysis of credit risk exposure at year-end 2024 and 2023 is as follows : Situation as of December 31, 2024Closing Not due < 3 months < 1 year > 1 year (in € thousands) Trade and other operating receivables 292,102 216,613 28,458 12,031 35,000 Total gross carrying amount 292,102 216,613 28,458 12,031 35,000 Expected credit losses - Trade and other (26,621) (0) 0 0 (26,621) operating receivables Total expected credit losses (26,621) (0) 0 0 (26,621) Total net carrying amount 265,481 216,613 28,458 12,031 8,379 Situation as of December 31, 2023 Closing Not due < 3 months < 1 year > 1 year (in € thousands) Trade and other operating receivables 338,571 251,297 43,912 9,934 33,428 Total gross carrying amount 338,571 251,297 43,912 9,934 33,428 Expected credit losses - Trade and other (24,991) 0 0 (3,286) (21,705) operating receivables Total expected credit losses (24,991) 0 0 (3,286) (21,705) Total net carrying amount 313,580 251,297 43,912 6,648 11,723 Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 198 The following table discloses the changes in expected credit losses on trade and other operations receivables : (in € thousands) 2200224422002233Cumulated expected credit losses - opening balance (24,991) (23,208) Change in consolidation scope 2 4,821 Expected credit losses (reversal/recognized) during the period 392 (6,587) Translation differences and transfers between asset items (2,024) (17) CCuummuullaatteeddeexxppeecctteeddccrreeddiittlloosssseess--cclloossiinnggbbaallaannccee((2266,,662211))((2244,,999911)) As of December 31, 2024, expected credit losses reversed and recognised during the year amounted to €392 thousand (2023: (6,587): it mainly concerned two construction projects). As of December 31, 2024, the item ‘Translation differences and transfers between assets items’ related mainly to reclassification against the caption ‘Provisions’. LIQUIDITY RISK CFE SA and BPI Real Estate Belgium SA have bilateral credit facilities that allow them to significantly reduce the liquidity risk. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 199 CARRYING AMOUNTS AND FAIR VALUE BY ACCOUNTING POLICY December 31, 2024FAMMFVV / FAMMFVV / (in € thousands) FLFVPL (3) - FLFVPL (3) - Assets/ Total of net Fair value Derivatives not Derivatives liabilities Fair value of carrying measurement designated as designated as measured at the class amount by level hedging hedging amortised cost instruments instruments Non-current financial assets 0 126 120,248 120,374 120,374 Financial loans and receivables (1) 0 0 120,248 120,248 Level 2 120,248 Derivatives 0 126 0 126 Level 2 126 Current financial assets 0 77 438,991 439,068 439,068 Trade and other operating receivables 0 0 265,481 265,481 Level 2 265,481 Derivatives 0 77 0 77 Level 2 77 Cash Equivalents (2) 0 0 38,247 38,247 Level 1 38,247 Cash at bank and in hand (2) 0 0 135,263 135,263 Level 1 135,263 Total assets 0 203 559,239 559,442 559,442 Non-current financial liabilities 0 652 184,830 185,482 201,200 Financial debts 0 0 184,830 184,830 Level 2 200,548 Derivatives 0 652 0 652 Level 2 652 Current financial liabilities 0 0 319,551 319,551 323,922 Trade and other operating payables 0 0 289,176 289,176 Level 2 289,176 Financial debts 0 0 30,375 30,375 Level 2 34,746 Derivatives 0 0 0 0 Level 2 0 Total liabilities 0 652 504,381 505,033 525,122 DDeecceemmbbeerr 3311,, 22002233 FFAAMMMMFFVVVV // FFAAMMMMFFVVVV // (in € thousands) FFLLFFVVPPLL((33))--FFLLFFVVPPLL((33))--AAsssseettss//TToottaallooffnneettFFaaiirrvvaalluueeDDeerriivvaattiivveessnnoottDDeerriivvaattiivveesslliiaabbiilliittiieessFFaaiirrvvaalluueeooffccaarrrryyiinnggmmeeaassuurreemmeennttddeessiiggnnaatteeddaassddeessiiggnnaatteeddaassmmeeaassuurreeddaatttthheeccllaassssaammoouunnttbbyylleevveellhheeddggiinngghheeddggiinnggaammoorrttiisseeddccoossttiinnssttrruummeennttss iinnssttrruummeennttss Non-current financial assets 0 336 142,790 114433,,112266143,126 Financial loans and receivables (1) 0 0 142,790 114422,,779900Level 2 142,790 Derivatives 0 336 0 336 Level 2 336 Current financial assets 0 2,657 467,672 447700,,332299470,329 Trade and other operating receivables 0 0 313,580 331133,,558800Level 2 313,580 Derivatives 0 2,657 0 22,,665577Level 2 2,657 Cash Equivalents (2) 0 0 27,215 2277,,221155Level 1 27,215 Cash at bank and in hand (2) 0 0 126,877 112266,,887777Level 1 126,877 Total assets 0 2,993 610,462 661133,,445555613,455 Non-current financial liabilities 0 125 190,965 119911,,009900205,549 Financial debts 0 0 190,965 119900,,996655Level 2 205,424 Derivatives 0 125 0 112255125 Current financial liabilities 0 0 374,155 337744,,115555376,495 Trade and other operating payables 0 0 317,761 331177,,776611Level 2 317,761 Financial debts 0 0 56,394 5566,,339944Level 2 58,734 Derivatives 0 0 0 000 Total liabilities 0 125 565,120 556655,,224455582,044 (1) Included in item “Other non-current financial assets” (2) Included in item “Cash and cash equivalents” (3) FAMMFV : Financial assets mandatorily measured at fair value through profit and loss FLFVPL : Financial liabilities measured at fair value through profit and loss Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 200 The fair value of financial instruments can be classified according to three levels (1 to 3) based on the degree to which the inputs to the fair value measurements are observable : - Fair value measurements of level 1 are based on quoted prices (unadjusted) in active markets for identical assets or liabilities ; - Fair value measurements of level 2 are based on inputs, other than quoted prices included within level 1, that are observable for the asset or liability, either directly (through prices) or indirectly (through input derived from prices) ; - Fair value measurements of level 3 are based on valuation techniques comprising inputs which are unobservable for the asset or liability. The fair value of financial instruments has been determined using the following methods : - For short-term financial instruments, such as trade receivables and payables, the fair value is considered not to be significantly different from the carrying amount measured at amortized cost ; - For floating rate liabilities, the fair value is considered not to be significantly different from the carrying amount measured at amortized cost ; - For derivative financial instruments (foreign currency, interest rate or forecasted cash flows), the fair value is determined using valuation models discounting future cash flows based on future interest rate curves, foreign currency curves or other forward prices ; - For the other derivative instruments, the fair value is determined by discounting future estimated cash flows ; - For fixed rate liabilities, the fair value is considered not to be significantly different from the carrying amount measured at amortized cost due to the fact that fixed and variables rates are not significantly different. 27. OTHER COMMITMENTS GIVEN Other commitments given by the CFE group for the financial year ended 31 December 2024, other than real security interests, amounted to €364,022 thousand (2023 : €357,628 thousand) and break down as follows : Year ended 31 December 2024 2023 (in € thousands) Performance guarantees and performance bonds (a) 277,654 263,051 Bid bonds (b) - - Retentions (c) - 1,749 Other commitments given (d) 86,368 92,828 Total other commitments given 364,022 357,628 (a) Guarantees given in relation to the performance of works contracts. If the construction entity fails to perform, the bank (or insurance company) undertakes to compensate the customer to the extent of the guarantee. (b) Guarantees provided as part of tenders relating to works contracts. (c) Security provided by a bank to a client to replace the use of retention money. (d) Letters of credit – completion guarantee, Breyne Act – mortgage mandates and mortgages The caption “other commitments given” relates mainly to the completion guarantees (Breyne Act) and mortgages linked to the financing of projects in the Real Estate division (mainly Pourpelt, Herrenberg and Mimosas). 28. OTHER COMMITMENTS RECEIVED Other commitments received by the CFE group as of 31 December 2024 amounted to €53,264 thousand (2023 : €48,589 thousand) and break down as follows: Year ended 31 December2024 2023 (in € thousands) Performance guarantees and performance bonds 47,338 43,175 Other commitments received 5,926 5,414 Total other commitments received 53,264 48,589 Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 201 29. LITIGATION CFE group is exposed to a number of claims that may be regarded as normal in the construction and multitechnics sectors. In most cases, the CFE group seeks to conclude a transaction agreement with the counterparty, which substantially reduces the number of lawsuits. CFE group tries to recover outstanding receivables from its customers. However, it is not possible to estimate these potential assets. 30. RELATED PARTIES Ackermans & van Haaren (AvH) owns 15,725,684 CFE shares as at 31 December 2024, being the main shareholder of the CFE group with a stake of 62.12%. CFE SA entered into a service contract with Ackermans & van Haaren. The remuneration due by CFE SA under this contract amounted to €373 thousand for the financial year ended 31 December 2024 (2023 : €350 thousand). As of December 31, 2024, the CFE Group has joint control with Ackermans & van Haaren over Deep C Holding NV, Green Offshore NV and GreenStor NV. As of December 31, 2024, the day-to-day management of CFE has been carried out by Trorema SRL represented by Raymund Trost, CEO and Chairman of the Executive Committee. The other six members of the Executive Committee are MSQ SRL represented by Fabien De Jonge, Artist Valley SA represented by Jacques Lefevre, COEDO SRL represented by Arnaud Regout, Focus2LER SRL represented by Valérie Van Brabant, CONSULTON SNC represented by Peter Matton and Bruno Lambrecht. The only transactions between CFE and the members of the Executive Committee are : - invoicing for their services through their management company; - transactions under the long-term incentive plans (we refer to note 21 "Information on stock option plans") The amount of remuneration and other benefits granted directly or indirectly to the management of CFE, mentioned above, is as follows (amounts expressed globally and in € thousands) : Year ended 31 December2024 22002233(in € thousands) Fixed remuneration 3,350 2,790 Short-term variable remuneration 1,263 1,533 Other benefits 0 0 TToottaall44,,66113344,,332233 Transactions with related parties mainly concerned transactions with companies in which CFE has a significant influence or a joint control. Such transactions are carried out on a market price basis. There were no significant changes in the nature of transactions with associated parties during the financial year 2024 compared to financial year 2023. Commercial and financing transactions between the CFE group and investments accounted for using equity method are summarized as follows : Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 202 3 Year ended 31 December 220022442200223(in € thousands) Assets with related parties 169,313 166,699 Non-current financial assets 146,142 143,955 Trade and other operating receivables 15,223 15,874 Other current assets 7,948 6,870 Liabilities with related parties 8,962 15,154 Other non-current liabilities 8,901 14,936 Trade and other operation payables 61 218 The decrease in other non-current liabilities is mainly explained by changes in the current accounts in the real estate segment (De Brouckere Office : +€2.7 million compensated by Gravity : -€ 6.3 million and M1 : -€2.7 million) 3 Year ended 31 December 220022442200223(in € thousands) Expenses and income with related parties 7777,,558888 5522,,440077 Revenue and other operating income 68,902 44,362 Purchases and other operating expenses (264) (445) Financial expenses and income 8,951 8,490 The increase in Revenue and other operating income towards the entities consolidated under the equity method is manly linked to the Polish projects Chmielna and Cavallia jointly developed. 31. AUDIT FEES The remuneration of the auditor for the whole group, including CFE SA, for the financial year 2024 breaks down as follows : (in € thousands) EErrnnsstt && YYoouunngg A A m m o o u u n n t t % % Audit Audit fees 830 81.8% Other attestation missions 158 15.6% Other missions outside the audit 20 2.0% Subtotal audit 1,008 99.3% Non-audit Tax consulting missions 7 0.7% Subtotal non-audit 7 0.7% Total audit and non-audit fees 1,015 100% 32. SUBSEQUENT EVENTS No significant changes have occurred in the financial and commercial situation of the CFE group since 31 December 2024. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 203 33. COMPANIES OWNED BY THE GROUP M AIN ENTITIES ACCOUNTED FOR USING GLOBAL INTEGRATION IN 2024 GROUP NAME HEAD OFFICE OPERATING SEGMENT INTEREST (%) EUROPE Belgium BPI PURE SA Brussels Real estate development 100% BPI REAL ESTATE BELGIUM SA Brussels Real estate development 100% BPI SAMAYA SA Brussels Real estate development 100% BPI SERENITY VALLEY SA Brussels Real estate development 100% BPI PARK WEST SA Brussels Real estate development 100% PROJECTONTWIKKELING VAN WELLEN NV Brussels Real estate development 100% WOLIMMO SA Brussels Real estate development 100% ZEN FACTORY SA Brussels Real estate development 100% BRANTEGEM NV Aalst Multitechnics 100% MOBIX NV Mechelen Multitechnics 100% MOBIX ENGETEC SA Manage Multitechnics 100% VMA NV Sint-Martens-Latem Multitechnics 100% VMA Sud SA Jumet Multitechnics 100% VMA BE.MAINTENANCE SA Brussels Multitechnics 100% ARTHUR VANDENDORPE NV Zedelgem Construction & Renovation 100% BATIMENTS ET PONTS CONSTRUCTION (BPC) SA Brussels Construction & Renovation 100% BPC GROUP SA Brussels Construction & Renovation 100% BENELMAT SA Gembloux Construction & Renovation 100% DESIGN & ENGINEERING SA Brussels Construction & Renovation 100% GROEP TERRYN NV Moorslede Construction & Renovation 100% GROEP TERRYN CONSTRUCT NV Moorslede Construction & Renovation 100% KORLAM NV Moorslede Construction & Renovation 100% LAMCOL SA Marche-en-Famenne Construction & Renovation 100% MBG NV Wilrijk Construction & Renovation 100% TERRYN TIMBER PRODUCTS NV Moorslede Construction & Renovation 100% VAN LAERE NV Zwijndrecht Construction & Renovation 100% WEFIMA NV Zwijndrecht Construction & Renovation 100% WOOD SHAPERS SA Brussels Construction & Renovation 100% CFE CONTRACTING SA Brussels Investments & Holding 100% HDP CHARLEROI SA Brussels Investments & Holding 100% PULSE SA Brussels Investments & Holding 100% Grand Duchy of Luxembourg BPI REAL ESTATE LUXEMBOURG S.À R.L. Leudelange Real estate development 100% CENTRAL PARC S.À R.L. Luxembourg Real estate development 100% HERRENBERG S.À R.L. Leudelange Real estate development 100% IMMO KIRCHBERG S.À R.L. Leudelange Real estate development 100% JFK DEVELOPPEMENT 1 S.À R.L. Leudelange Real estate development 100% JFK DEVELOPPEMENT 2 S.À R.L. Leudelange Real estate development 100% MIMOSAS REAL ESTATE S.À R.L. Leudelange Real estate development 100% MIMOSAS COLIVING S.À R.L. Leudelange Real estate development 100% POURPELT SA Leudelange Real estate development 100% PRINCE HENRI S.À R.L. Leudelange Real estate development 100% COMPAGNIE LUXEMBOURGEOISE D’ENTREPRISES CLE SA Leudelange Construction & Renovation 100% IMMO-BECHEL CLE S.À R.L. Leudelange Construction & Renovation 100% WOOD SHAPERS LUXEMBOURG SA Leudelange Construction & Renovation 100% SOCIETE FINANCIERE D’ENTREPRISES SFE SA Leudelange Investments & Holding 100% Poland BPI BERNADOWO SP. Z O.O. Warsaw Real estate development 100% BPI PIANO SP. Z O.O. Warsaw Real estate development 100% BPI OBRZEZNA SP. Z O.O. Warsaw Real estate development 90% BPI WAGROWSKA SP. Z O.O. Warsaw Real estate development 100% BPI PANOWAMIQ SP. Z O.O. Warsaw Real estate development 100% BPI PROJECT 10 SP. Z O.O. Warsaw Real estate development 100% BPI PROJECT 11 SP. Z O.O. Warsaw Real estate development 100% BPI CZYSTA SP. Z O.O. Warsaw Real estate development 100% BPI REAL ESTATE POLAND SP. Z O.O. Warsaw Real estate development 100% BPI WOLARE SP. Z O.O. Warsaw Real estate development 100% Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 204 BPI WROCLAW SP. Z O.O. Warsaw Real estate development 100% VMA POLSKA SP. Z O.O. Kobierzyce Multitechnics 100% CFE POLSKA SP. Z O.O. Warsaw Construction & Renovation 100% Other European countries CFE BAU GMBH Berlin, Germany Construction & Renovation 100% VMA MIDLANDS LTD Yorkshire, UK Multitechnics 100% CFE CONTRACTING AND ENGINEERING SRL Bucharest, Romania Investments & Holding 100% AMERICA United States VMA US INC South Carolina Multitechnics 100% MAIN ENTITIES OF THE JOINT VENTURES CONSOLIDATED USING THE EQUITY METHOD IN 2024 GROUP NAME HEAD OFFICE OPERATING SEGMENT INTEREST % EUROPE Belgium ARLON 53 SA Brussels Real estate development 50% BAVIERE DEVELOPPEMENT SA Liège Real estate development 30% BATAVES 1521 SA Brussels Real estate development 50% DEBROUCKERE DEVELOPMENT SA Brussels Real estate development 50% DEBROUCKERE LAND SA Brussels Real estate development 50% DEBROUCKERE LEISURE SA Brussels Real estate development 50% DEBROUCKERE OFFICE SA Brussels Real estate development 50% ERASMUS GARDENS SA Brussels Real estate development 50% ESPACE ROLIN SA Brussels Real estate development 33.33% FONCIERE DE BAVIERE SA Liège Real estate development 30% FONCIERE DE BAVIERE A SA Liège Real estate development 30% FONCIERE DE BAVIERE C SA Liège Real estate development 30% GOODWAYS SA Antwerp Real estate development 50% IMMOANGE SA Brussels Real estate development 50% IMMO PA 33 1 SA Brussels Real estate development 50% IMMO PA 44 1 SA Brussels Real estate development 50% IMMO PA 44 2 SA Brussels Real estate development 50% JOMA 2060 NV Brussels Real estate development 70% KEYWEST DEVELOPMENT SA Brussels Real estate development 50% LES JARDINS DE OISQUERCQ SA Brussels Real estate development 50% LES 2 PRINCES DEVELOPMENT SA Brussels Real estate development 50% LIFE SHAPERS NV Brussels Real estate development 70% MG IMMO SRL Brussels Real estate development 50% PRE DE LA PERCHE CONSTRUCTION SA Brussels Real estate development 50% PROMOTION LEOPOLD SA Brussels Real estate development 30.44% SAMAYA DEVELOPMENT SA Brussels Real estate development 50% TERVUREN SQUARE SA Brussels Real estate development 37.5% TULIP ANTWERP NV Brussels Real estate development 70% VICTOR BARA SA Brussels Real estate development 50% VICTOR SPAAK SA Brussels Real estate development 50% VICTOR ESTATE SA Brussels Real estate development 50% VICTOR PROPERTIES SA Brussels Real estate development 50% VAN MAERLANT RESIDENTIAL SA Brussels Real estate development 40% LUWA MAINTENANCE SA Wierde Multitechnics 25% LIGHTHOUSE PARKING NV Gent Construction & Renovation 33.33% BPG CONGRES SA Brussels Investments & Holding 49% BPG HOTEL SA Brussels Investments & Holding 49% GREEN OFFSHORE NV and its subsidiaries Antwerp Investments & Holding 50% GREENSTOR NV and its subsidiaries Antwerp Investments & Holding 50% DEEP C HOLDING NV and its subsidiaries Antwerp Investments & Holding 50% Grand Duchy of Luxembourg BAYSIDE FINANCE SRL Luxembourg Real estate development 40% BEDFORD FINANCE SRL Luxembourg Real estate development 40% CHATEAU DE BEGGEN S.À R.L. Luxembourg Real estate development 50% EMELY S.À R.L. Leudelange Real estate development 50% GRAVITY SA Luxembourg Real estate development 50% JFK REAL ESTATE S.À R.L. Luxembourg Real estate development 57.45% Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 205 M1 SA Luxembourg Real estate development 33.33% M7 S.À R.L. Leudelange Real estate development 33.33% THE ROOTS REAL ESTATE S.À R.L. Luxembourg Real estate development 50% THE ROOTS OFFICE S.À R.L. Luxembourg Real estate development 50% Poland CAVALLIA SP. Z O.O. Warsaw Real estate development 50% BPI CHMIELNA SP. Z O.O. Warsaw Real estate development 50% BPI WIESLAWA SP. Z O.O. Warsaw Real estate development 50% AFRICA TTuunniissiiaa BIZERTE CAP 3000 SA and its subsidiary Tunis Investments & Holding 20% A SSOCIATED ENTITIES CONSOLIDATED USING THE EQUITY METHOD IN 2024 GROUP NAME HEAD OFFICE OPERATING SEGMENT INTEREST % EUROPE Belgium EUROPEA HOUSING SA Brussels Real estate development 33% MALL OF EUROPE SA Brussels Real estate development 1.5% HOFKOUTER NV Zwijndrecht Construction & Renovation 35% LUWA SA Wierde Investments & Holding 12% M AIN ENTITIES ACCOUNTED FOR USING GLOBAL INTEGRATION IN 2023 GROUP NAME HEAD OFFICE OPERATING SEGMENT INTEREST (%) EUROPE Belgium BPI PURE SA Brussels Real estate development 100% BPI REAL ESTATE BELGIUM SA Brussels Real estate development 100% BPI SAMAYA SA Brussels Real estate development 100% BPI SERENITY VALLEY SA Brussels Real estate development 100% BPI PARK WEST SA Brussels Real estate development 100% PROJECTONTWIKKELING VAN WELLEN NV Brussels Real estate development 100% WOLIMMO SA Brussels Real estate development 100% ZEN FACTORY SA Brussels Real estate development 100% BRANTEGEM NV Aalst Multitechnics 100% MOBIX NV Mechelen Multitechnics 100% MOBIX ENGETEC SA Manage Multitechnics 100% VMA NV Sint-Martens-Latem Multitechnics 100% VMA Sud SA Jumet Multitechnics 100% VMA BE.MAINTENANCE SA Brussels Multitechnics 100% VMA SUSTAINABILITY FUND I NV Brussels Multitechnics 100% ARTHUR VANDENDORPE NV Zedelgem Construction & Renovation 100% BATIMENTS ET PONTS CONSTRUCTION (BPC) SA Brussels Construction & Renovation 100% BPC GROUP SA Brussels Construction & Renovation 100% BENELMAT SA Gembloux Construction & Renovation 100% DESIGN & ENGINEERING SA Brussels Construction & Renovation 100% GROEP TERRYN NV Moorslede Construction & Renovation 100% GROEP TERRYN CONSTRUCT NV Moorslede Construction & Renovation 100% KORLAM NV Moorslede Construction & Renovation 100% LAMCOL SA Marche-en-Famenne Construction & Renovation 100% MBG NV Wilrijk Construction & Renovation 100% TERRYN TIMBER PRODUCTS NV Moorslede Construction & Renovation 100% VAN LAERE NV Zwijndrecht Construction & Renovation 100% WEFIMA NV Zwijndrecht Construction & Renovation 100% WOOD SHAPERS SA Brussels Construction & Renovation 100% CFE CONTRACTING SA Brussels Investments & Holding 100% HDP CHARLEROI SA Brussels Investments & Holding 100% Grand Duchy of Luxembourg BPI REAL ESTATE LUXEMBOURG S.À R.L. Leudelange Real estate development 100% CENTRAL PARC S.À R.L. Luxembourg Real estate development 100% HERRENBERG S.À R.L. Leudelange Real estate development 100% IMMO KIRCHBERG S.À R.L. Leudelange Real estate development 100% Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 206 JFK DEVELOPPEMENT 1 S.À R.L. Leudelange Real estate development 100% JFK DEVELOPPEMENT 2 S.À R.L. Leudelange Real estate development 100% MIMOSAS REAL ESTATE S.À R.L. Leudelange Real estate development 100% POURPELT SA Leudelange Real estate development 100% PRINCE HENRI S.À R.L. Leudelange Real estate development 100% COMPAGNIE LUXEMBOURGEOISE D’ENTREPRISES CLE SA Leudelange Construction & Renovation 100% IMMO-BECHEL CLE S.À R.L. Leudelange Construction & Renovation 100% WOOD SHAPERS LUXEMBOURG SA Leudelange Construction & Renovation 100% SOCIETE FINANCIERE D’ENTREPRISES SFE SA Leudelange Investments & Holding 100% Poland BPI BERNADOWO SP. Z O.O. Warsaw Real estate development 100% BPI PROJECT II SP. Z O.O. Warsaw Real estate development 100% BPI OBRZEZNA SP. Z O.O. Warsaw Real estate development 90% BPI WAGROWSKA SP. Z O.O. Warsaw Real estate development 100% BPI JARACZA SP. Z O.O. Warsaw Real estate development 80% BPI PROJECT VIII SP. Z O.O. Warsaw Real estate development 100% BPI PROJECT IX SP. Z O.O. Warsaw Real estate development 100% BPI VILDA PARK SP. Z O.O. Warsaw Real estate development 100% BPI BARSKA SP. Z O.O. Warsaw Real estate development 100% BPI CZYSTA SP. Z O.O. Warsaw Real estate development 100% BPI REAL ESTATE POLAND SP. Z O.O. Warsaw Real estate development 100% BPI WOLARE SP. Z O.O. Warsaw Real estate development 100% BPI WROCLAW SP. Z O.O. Warsaw Real estate development 100% VMA POLSKA SP. Z O.O. Kobierzyce Multitechnics 100% CFE POLSKA SP. Z O.O. Warsaw Construction & Renovation 100% Other European countries CFE BAU GMBH Berlin, Germany Construction & Renovation 100% VMA MIDLANDS LTD Yorkshire, UK Multitechnics 100% CFE CONTRACTING AND ENGINEERING SRL Bucharest, Romania Investments & Holding 100% AMERICA United States VMA US INC South Carolina Multitechnics 100% MAIN ENTITIES OF THE JOINT VENTURES CONSOLIDATED USING THE EQUITY METHOD IN 2023 GROUP NAME HEAD OFFICE OPERATING SEGMENT INTEREST % EUROPE Belgium ARLON 53 SA Brussels Real estate development 50% BAVIERE DEVELOPPEMENT SA Liège Real estate development 30% BATAVES 1521 SA Brussels Real estate development 50% DEBROUCKERE DEVELOPMENT SA Brussels Real estate development 50% DEBROUCKERE LAND SA Brussels Real estate development 50% DEBROUCKERE LEISURE SA Brussels Real estate development 50% DEBROUCKERE OFFICE SA Brussels Real estate development 50% ERASMUS GARDENS SA Brussels Real estate development 50% ESPACE ROLIN SA Brussels Real estate development 33.33% FONCIERE DE BAVIERE SA Liège Real estate development 30% FONCIERE DE BAVIERE A SA Liège Real estate development 30% FONCIERE DE BAVIERE C SA Liège Real estate development 30% GOODWAYS SA Antwerp Real estate development 50% IMMOANGE SA Brussels Real estate development 50% IMMO PA 33 1 SA Brussels Real estate development 50% IMMO PA 44 1 SA Brussels Real estate development 50% IMMO PA 44 2 SA Brussels Real estate development 50% JOMA 2060 NV Brussels Real estate development 70% KEYWEST DEVELOPMENT SA Brussels Real estate development 50% LA RESERVE PROMOTION NV Gent Real estate development 33% LES JARDINS DE OISQUERCQ SA Brussels Real estate development 50% LES 2 PRINCES DEVELOPMENT SA Brussels Real estate development 50% LIFE SHAPERS NV Brussels Real estate development 70% MG IMMO SRL Brussels Real estate development 50% PRE DE LA PERCHE CONSTRUCTION SA Brussels Real estate development 50% Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 207 PROMOTION LEOPOLD SA Brussels Real estate development 30.44% SAMAYA DEVELOPMENT SA Brussels Real estate development 50% TERVUREN SQUARE SA Brussels Real estate development 37.5% TULIP ANTWERP NV Brussels Real estate development 70% VICTOR BARA SA Brussels Real estate development 50% VICTOR SPAAK SA Brussels Real estate development 50% VICTOR ESTATE SA Brussels Real estate development 50% VICTOR PROPERTIES SA Brussels Real estate development 50% VAN MAERLANT RESIDENTIAL SA Brussels Real estate development 40% LUWA MAINTENANCE SA Wierde Multitechnics 25% LIGHTHOUSE PARKING NV Gent Construction & Renovation 33.33% WOOD GARDENS SA Brussels Construction & Renovation 50% BPG CONGRES SA Brussels Investments & Holding 49% BPG HOTEL SA Brussels Investments & Holding 49% PPP BETRIEB SCHULEN EUPEN SA Eupen Investments & Holding 25% PPP SCHULEN EUPEN SA Eupen Investments & Holding 19% GREEN OFFSHORE NV and its subsidiaries Antwerp Investments & Holding 50% GREENSTOR NV and its subsidiaries Antwerp Investments & Holding 50% DEEP C HOLDING NV and its subsidiaries Antwerp Investments & Holding 50% Grand Duchy of Luxembourg BAYSIDE FINANCE SRL Luxembourg Real estate development 40% BEDFORD FINANCE SRL Luxembourg Real estate development 40% CHATEAU DE BEGGEN S.À R.L. Luxembourg Real estate development 50% EMELY S.À R.L. Leudelange Real estate development 50% GRAVITY SA Luxembourg Real estate development 50% IMMO MARIAL S.À R.L. Leudelange Real estate development 50% JFK REAL ESTATE S.À R.L. Luxembourg Real estate development 57.45% M1 SA Luxembourg Real estate development 33.33% M7 S.À R.L. Leudelange Real estate development 33.33% THE ROOTS REAL ESTATE S.À R.L. Luxembourg Real estate development 50% THE ROOTS OFFICE S.À R.L. Luxembourg Real estate development 50% Poland CAVALLIA SP. Z O.O. Warsaw Real estate development 50% BPI CHMIELNA SP. Z O.O. Warsaw Real estate development 50% AFRICA TTuunniissiiaa BIZERTE CAP 3000 SA and its subsidiary Tunis Investments & Holding 20% A SSOCIATED ENTITIES CONSOLIDATED USING THE EQUITY METHOD IN 2023 GROUP NAME HEAD OFFICE OPERATING SEGMENT INTEREST % EUROPE Belgium EUROPEA HOUSING SA Brussels Real estate development 33% MALL OF EUROPE SA Brussels Real estate development 1.5% HOFKOUTER NV Zwijndrecht Construction & Renovation 35% LUWA SA Wierde Investments & Holding 12% Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 208 ALTERNATIVE PERFORMANCE MEASURES RECONCILIATION As shown below, the CFE group uses alternative performance measures to assess the group’s financial performance. The definitions of those performance measures are presented in the ‘Definition’ section of this report. The net financial debt, EBITDA, return on equity and debt ratio, have been computed using the consolidated statement of income and the consolidated statement of financial position : Net financial debt Year ended 31 December 2024 (in € thousands) Real Estate Multi- technics Construction & Renovation Investments & Holding Eliminations between segments Consolidated total Non-current borrowings from consolidated companies of the group () 40,000 0 0 0 (40,000) 0 + Non-current financial liabilities 31,690 26,158 19,477 107,505 0 184,830 + Current financial liabilities 18,490 6,086 5,462 337 0 30,375 + Internal cash position - Cash pooling - liabilities () 22,222 4,555 17,982 265,769 (310,528) 0 Financial liabilities 112,402 36,799 42,921 373,611 (350,528) 215,205 - Non-current loans to consolidated companies of the group () 0 0 0 (40,000) 40,000 0 - Cash and cash equivalents (7,230) (2,533) (80,300) (83,447) 0 (173,510) - Internal cash position - Cash pooling - assets () (9,774) (59,768) (218,449) (22,537) 310,528 0 C C a a s s h h a a n n d d c c a a s s h h e e q q u u i i v v a a l l e e n n t t s s ( ( 1 1 7 7 , , 0 0 0 0 4 4 ) ) ( ( 6 6 2 2 , , 3 3 0 0 1 1 ) ) ( ( 2 2 9 9 8 8 , , 7 7 4 4 9 9 ) ) ( ( 1 1 4 4 5 5 , , 9 9 8 8 4 4 ) ) 3 3 5 5 0 0 , , 5 5 2 2 8 8 ( ( 1 1 7 7 3 3 , , 5 5 1 1 0 0 ) ) N N e e t t f f i i n n a a n n c c i i a a l l d d e e b b t t 9 9 5 5 , , 3 3 9 9 8 8 ( ( 2 2 5 5 , , 5 5 0 0 2 2 ) ) ( ( 2 2 5 5 5 5 , , 8 8 2 2 8 8 ) ) 2 2 2 2 7 7 , , 6 6 2 2 7 7 0 0 4 4 1 1 , , 6 6 9 9 5 5 Net financial debt Year ended 31 December 2023 (in € thousands) Real Estate Multi- technics Construction & Renovation Investments & Holding Eliminations between segments Consolidated total Non-current borrowings from consolidated companies of the group () 40,000 0 4,000 0 (44,000) 0 + Non-current financial liabilities 53,424 26,054 18,838 92,649 0 190,965 + Current financial liabilities 10,341 5,835 4,951 35,267 0 56,394 + Internal cash position - Cash pooling - liabilities () 18,435 14,386 9,368 209,823 (252,012) 0 Financial liabilities 122,200 46,275 37,157 337,739 (296,012) 247,359 - Non-current loans to consolidated companies of the group () 0 0 0 (44,000) 44,000 0 - Cash and cash equivalents (4,390) (3,249) (78,045) (68,408) 0 (154,092) - Internal cash position - Cash pooling - assets () (17,749) (42,529) (167,981) (23,753) 252,012 0 Cash and cash equivalents (22,139) (45,778) (246,026) (136,161) 296,012 (154,092) Net financial debt 100,061 497 (208,869) 201,578 - 93,267 () These account balances relate to the cash positions with regard to group entities belonging to other group operating segments (mainly CFE SA and CFE Contracting SA). W W o o r r k k i i n n g g c c a a p p i i t t a a l l r r e e q q u u i i r r e e m m e e n n t t YYeeaarr eennddeedd 3311 DDeecceemmbbeerr (in € thousands) 2 2 0 0 2 2 4 4 2 2 0 0 2 2 3 3 Inventories 141,375 161,844 + Trade and other operating receivables 265,481 313,580 + Contracts assets 62,696 68,411 + Other current non-operating assets 7,329 5,637 - Trade and other operating receivables (289,176) (317,761) - Current tax liabilities (6,342) (9,358) - Contracts liabilities (208,844) (201,618) - Other current non-operating liabilities (58,719) (71,604) Working capital requirement (86,200) (50,869) Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 209 EBITDA Year ended 31 December (in € thousands) 2024 2023 Income from operating activities 28,037 28,185 Depreciation and amortisation of intangible assets and property, plant and equipment 21,832 21,348 Consolidated EBITDA 49,869 49,533 Return on equity (ROE) Year ended 31 December (in € thousands) 2024 2023 Equity - share of the group, at opening 236,770 224,653 Net result - share of the group 23,963 22,779 Return on equity (ROE) 10.1% 10.1% Capital employed Year ended 31 December (in € thousands) 2024 2023 Net financial debt 41,695 93,267 Equity - share of the group 247,768 236,770 Capital employed 289,463 330,037 Debt ratio Year ended 31 December (in € thousands) 2024 2023 Net financial debt 41,695 93,267 Capital employed 289,463 330,037 Debt ratio 14.4% 28.3% The capital employed from the real estate development segment has been computed using the consolidated statement of financial position and the consolidated statement of income per segment : Capital employed – Real Estate Development Year ended 31 December (in € thousands) 2024 2023 Equity - real estate development segment 160,328 159,141 Net financial debt - real estate development segment 95,398 100,061 Capital employed 255,726 259,202 Return on equity (ROE) - Real Estate Development Year ended 31 December (in € thousands) 2024 2023 Equity, at opening - Real Estate Development 159,141 118,749 Net result from continuing operations - share of the group - Real Estate Development 8,023 11,669 Return on equity (ROE) - Real Estate Development 5.0% 9.8% Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 210 STATEMENT ON THE TRUE AND FAIR NATURE OF THE FINANCIAL STATEMENTS AND THE TRUE AND FAIR NATURE OF THE PRESENTATION IN THE MANAGEMENT REPORT Article 12, paragraph 2, 3° of the Royal Decree of 14.11.2007 on the obligations of issuers of financial instruments admitted to trading on a regulated market) We certify, in the name and on behalf of Compagnie d’Entreprises CFE SA and on that company's responsibility, that, to our knowledge, 1. the financial statements, prepared in accordance with the applicable accounting standards, give a true and fair view of the assets, financial position and results of Compagnie d’Entreprises CFE SA and of the companies included in its scope of consolidation; 2. the management report contains a true and fair presentation of the business, results and position of Compagnie d’Entreprises CFE SA and of the companies included in its scope of consolidation, along with a description of the main risks and uncertainties to which they are exposed. SIGNATURES Name : Fabien De Jonge Raymund Trost Acting on behalf of a BV/SRL Acting on behalf of a BV/SRL Role : Chief Financial Officer Chief Executive Officer and Chairman of the Executive Committee Date : 17 March 2025 Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 211 GENERAL INFORMATION ABOUT THE COMPANY Company name : Compagnie d’Entreprises CFE Head office : Avenue Edmond Van Nieuwenhuyse 30, 1160 Bruxelles (Belgium) Telephone : + 32 2 661 12 11 Legal form : Public limited company (société anonyme (SA)) Incorporated under Belgian law Date of incorporation : 21 June 1880 Duration : Indefinite Accounting period : From 1 January to 31 December Trade Register entry : RPM Brussels 0400 464 795 – VAT 400.464.795 Place where legal documentation can be consulted : Head office CORPORATE PURPOSE (ARTICLE 2 OF THE ARTICLES OF ASSOCIATION) “ The purpose of the company is to study and execute any work or construction within each and every of its specialist areas, in particular electricity and the environment, in Belgium or abroad, singly or jointly with other natural or legal persons, for its own account or on behalf of third parties belonging to the public or private sector. It may also perform services related to these activities, directly or indirectly operate them or license them out or carry out any purchase, sale, rent or lease operation whatsoever in respect of such undertakings. It may directly or indirectly acquire, hold or sell equity interests in any company or undertaking existing now or in the future by way of acquisition, merger, spin-off or any other means. It may carry out any commercial, industrial, administrative or financial operations or operations involving movable or immovable property that are directly or indirectly related to its purpose, even partially, or that could facilitate or develop that purpose, either for itself or for its subsidiaries. The general meeting may change the corporate purpose subject to the conditions specified in Article five hundred and fifty-nine of the Belgian Companies Code. ” Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 212 Audit report dated 28 March 2025 on the Consolidated Financial Statements of Compagnie d'Entreprises CFE SA/Aannemingsmaatschappij CFE NV as of and for the year ended 31 December 2024 (continued) 1 Independent auditor’s report to the general meeting of Compagnie d'Entreprises CFE SA/ Aannemingsmaatschappij CFE NV for the year ended 31 December 2024 In the context of the statutory audit of the Consolidated Financial Statements) of Compagnie d'Entreprises CFE SA/Aannemingsmaatschappij CFE NV (the “Company”) and its subsidiaries (together the “Group”) , we report to you as statutory auditor . This report includes our opinion on the consolidated statement of financial position as at 31 December 2024, the consolidated statement of income and consolidated statement of comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cashflows for the year ended 31 December 2024 and the disclosures including material accounting policy information (all elements together the “Consolidated Financial Statements”) as well as our report on other legal and regulatory requirements. These two reports are considered one report and are inseparable . We have been appointed as statutory auditor by the shareholders’ meeting of 2 May 2024, in accordance with the proposition by the Board of Directors following recommendation of the Audit Committee. Our mandate expires at the shareholders’ meeting that will deliberate on the Consolidated Financial Statements for the year ending 31 December 2026. We performed the audit of the Consolidated Financial Statements of the Group during 4 consecutive years. Report on the audit of the Consolidated Financial Statements Unqualified opinion We have audited the Consolidated Financial Statements of Compagnie d'Entreprises CFE SA/Aannemingsmaatschappij CFE NV, that comprise of the consolidated statement of financial position on 31 December 2024, the consolidated statement of income and consolidated statement of comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cashflows of the year and the disclosures including, material accounting policy information, which show a consolidated balance sheet total of € 1.101.747.000 and of which the consolidated income statement shows a profit for the year of € 23.963.000. In our opinion, the Consolidated Financial Statements give a true and fair view of the consolidated net equity and financial position as at 31 December 2024, and of its consolidated results for the year then ended, prepared in accordance with the International Financial Reporting Standards as adopted by the European Union (“IFRS”) and with applicable legal and regulatory requirements in Belgium. Basis for the unqualified opinion We conducted our audit in accordance with International Standards on Auditing (“ISA’s”) applicable in Belgium. In addition, we have applied the ISA's approved by the International Auditing and Assurance Standards Board (“IAASB”) that apply at the current year-end date and have not yet been approved at national level. Our responsibilities under those standards are further described in the “Our responsibilities for the audit of the Consolidated Financial Statements” section of our report. We have complied with all ethical requirements that are relevant to our audit of the Consolidated Financial Statements in Belgium, including those with respect to independence. We have obtained from the Board of Directors and the officials of the Company the explanations and information necessary for the performance of our audit and we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key audit matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Consolidated Financial Statements of the current reporting period. These matters were addressed in the context of our audit of the Consolidated Financial Statements as a whole and in forming our opinion thereon, and consequently we do not provide a separate opinion on these matters. Revenue recognition and contract accounting (segments Construction & Renovation and Multitechnics) Description of the key audit matter For the majority of its contracts (hereafter the “contracts” or the “projects”), the Group recognizes revenue and profit on the stage of completion based on the proportion of contract Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 213 Audit report dated 28 March 2025 on the Consolidated Financial Statements of Compagnie d'Entreprises CFE SA/Aannemingsmaatschappij CFE NV as of and for the year ended 31 December 2024 (continued) 2 costs incurred for the work performed to the balance sheet date, relative to the estimated total costs of the contract at completion. The recognition of revenue and profit therefore relies on estimates in respect of the forecasted total costs on each contract. Cost contingencies may also be included in these estimates to take into account specific uncertain risks, or disputed claims against the Group. The revenue of contracts may also include variations and claims, which are recognized on a contract-by-contract basis when the additional revenue can be measured reliably. Revenue recognition and contract accounting often involves a high degree of judgment due to the complexity of projects, uncertainty about costs to complete and uncertainty about the outcome of discussions with clients on variation orders and claims. This is a key audit matter because there is a high degree of risk and related management judgement in estimating the amount of revenue and associated profit or loss to be recognized, and changes to these estimates could give rise to important variances. Summary of the procedures performed • We obtained an understanding of the process related to the contract follow-up, the revenue and margin recognition and when applicable the provisions for losses at completion, and we considered the design and implementation of the related key internal controls, including management review controls. • Based on quantitative and qualitative criteria, we selected a sample of contracts to challenge the most significant and complex project estimates and judgments. As part of this testing, we gained an understanding of the current status and history of the projects, and discussed the judgments inherent to these projects with senior executive and financial management. We analyzed differences with prior project estimates and assessed consistency with the developments of the project during the year. • We determined the proper calculation of the percentage of completion and the related revenue and margin recognized for a sample of projects. • We compared the financial performance of projects against budget and historical trends. • We completed site visits for certain projects, observed the stage of completion of these projects, and discussed with site personnel the status and complexities of the project that could impact its’ total forecasted cost. • We analyzed correspondence with customers around variation orders and claims and considered whether this information is consistent with the estimates made by management. • We inspected selected contracts for key clauses. We identified relevant contractual clauses impacting the (un)bundling of contracts, delay penalties, bonuses or success fees, and we assessed whether these key clauses have been appropriately reflected in the amounts recognized in the Consolidated Financial Statements. • We assessed the adequacy of the information disclosed in notes 2 and 17 to the Consolidated Financial Statements. Revenue recognition and valuation of inventories (Real Estate Development segment) Description of the key audit matter The valuation of the land positions and the incurred constructions costs for residential property developments are based on the historical cost or lower net realizable value. The assessment of the net realizable values involves assumptions relating to future market developments, permit decisions of governmental bodies, discount rates and future changes in costs and selling prices. These estimates are sensitive to scenarios and assumptions used and involve as such significant management judgement. Risk exists that potential impairments of inventories are not appropriately accounted for in the Consolidated Financial Statements. Revenues and results are recognized to the extent that components (housing units) have been sold and based on the percentage of completion of the development. The recognition of revenue and profit therefore relies on estimates in relation to the forecast total costs on each project. This often involves a high degree of judgment due to the complexity of projects and uncertainty about costs to complete. This is a key audit matter because there is a high degree of risk associated with estimating the amount of revenue and related profit to be recognized for the period, and changes to these estimates could give rise to important variances. Summary of the procedures performed • We obtained an understanding of the process related to the contract follow-up, the revenue and margin recognition, and we considered the design and implementation of the related key internal controls, including management review controls. • We have selected a sample of project developments and verified the costs incurred to date for land Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 214 Audit report dated 28 March 2025 on the Consolidated Financial Statements of Compagnie d'Entreprises CFE SA/Aannemingsmaatschappij CFE NV as of and for the year ended 31 December 2024 (continued) 3 purchases and work in progress. We also recalculated the percentage of completion at balance sheet date, agreed sales values to contracts, and verified the accuracy of the revenue recognition formula. • We performed an assessment of the calculations of net realizable values and challenged the reasonableness and consistency of the assumptions and model used by management. • We evaluated the financial performance of specific projects against budget and historical trends, specifically in view of assessing the reasonableness of the costs to complete. • We assessed the adequacy of the information disclosed in notes 2 and 18 to the Consolidated Financial Statements. Responsibilities of the Board of Directors for the preparation of the Consolidated Financial Statements The Board of Directors is responsible for the preparation of the Consolidated Financial Statements that give a true and fair view in accordance with the IFRS Accounting Standards and with applicable legal and regulatory requirements in Belgium and for such internal controls relevant to the preparation of the Consolidated Financial Statements that are free from material misstatement, whether due to fraud or error. As part of the preparation of Consolidated Financial Statements, the Board of Directors is responsible for assessing the Company’s ability to continue as a going concern, and provide, if applicable, information on matters impacting going concern, The Board of Directors should prepare the financial statements using the going concern basis of accounting, unless the Board of Directors either intends to liquidate the Company or to cease business operations, or has no realistic alternative but to do so. Our responsibilities for the audit of the Consolidated Financial Statements Our objectives are to obtain reasonable assurance whether the Consolidated Financial Statements are free from material misstatement, whether due to fraud or error, and to express an opinion on these Consolidated Financial Statements based on our audit. Reasonable assurance is a high level of assurance, but not a guarantee that an audit conducted in accordance with the ISA’s will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and 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. In performing our audit, we comply with the legal, regulatory and normative framework that applies to the audit of the Consolidated Financial Statements in Belgium. However, a statutory audit does not provide assurance about the future viability of the Company and the Group, nor about the efficiency or effectiveness with which the board of directors has taken or will undertake the Company's and the Group’s business operations. Our responsibilities with regards to the going concern assumption used by the board of directors are described below. As part of an audit in accordance with ISA’s, we exercise professional judgment and we maintain professional skepticism throughout the audit. We also perform the following tasks: • identification and assessment of the risks of material misstatement of the Consolidated Financial Statements, whether due to fraud or error, the planning and execution of audit procedures to respond to these risks and obtain audit evidence which is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting material misstatements resulting from fraud is higher than when such misstatements result from errors, since fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control; • obtaining insight in the system of internal controls that are relevant for the audit and with the objective to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control; • evaluating the selected and applied accounting policies, and evaluating the reasonability of the accounting estimates and related disclosures made by the Board of Directors as well as the underlying information given by the Board of Directors; • conclude on the appropriateness of the Board of Directors’ use of the going-concern basis of accounting, and based on the audit evidence obtained, whether or not a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s or Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 215 Audit report dated 28 March 2025 on the Consolidated Financial Statements of Compagnie d'Entreprises CFE SA/Aannemingsmaatschappij CFE NV as of and for the year ended 31 December 2024 (continued) 4 Consolidated Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on audit evidence obtained up to the date of the auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going-concern; • evaluating the overall presentation, structure and content of the Consolidated Financial Statements, and evaluating whether the Consolidated Financial Statements reflect a true and fair view of the underlying transactions and events. We communicate with the Audit Committee within the Board of Directors 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. Because we are ultimately responsible for the opinion, we are also responsible for directing, supervising and performing the audits of the subsidiaries. In this respect we have determined the nature and extent of the audit procedures to be carried out for group entities. We provide the Audit Committee within the Board of Directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with the Audit Committee within the Board of Directors, we determine those matters that were of most significance in the audit of the Consolidated Financial Statements of the current period and are therefore the key audit matters. We describe these matters in our report, unless the law or regulations prohibit this. Report on other legal and regulatory requirements Responsibilities of the Board of Directors The Board of Directors is responsible for the preparation and the content of the Board of Directors’ report on the Consolidated Financial Statements and other information included in the annual report. Responsibilities of the auditor In the context of our mandate and in accordance with the additional standard to the ISA’s applicable in Belgium, it is our responsibility to verify, in all material respects, the Board of Directors’ report on the Consolidated Financial Statements and the other information included in the annual report, as well as to report on these matters. Aspects relating to Board of Directors’ report The Board of Directors’ report on the Consolidated Financial Statements contains the consolidated sustainability information that is subject to our separate limited assurance report. This section does not cover the assurance on the consolidated sustainability information included in the Board of Directors’ report. In our opinion, after carrying out specific procedures on the Board of Directors’ report, the Board of Directors’ report is consistent with the Consolidated Financial Statements and has been prepared in accordance with article 3:32 of the Code of companies and associations. In the context of our audit of the Consolidated Financial Statements, we are also responsible to consider whether, based on the information that we became aware of during the performance of our audit, the Board of Directors’ report and other information included in the annual report, being: • Key financial figures contain any material inconsistencies or contains information that is inaccurate or otherwise misleading. In light of the work performed, there are no material inconsistencies to be reported. Independence matters Our audit firm and our network have not performed any services that are not compatible with the audit of the Consolidated Financial Statements and have remained independent of the Company during the course of our mandate. The fees related to additional services which are compatible with the audit of the Consolidated Financial Statements as referred to in article 3:65 of the Code of companies and associations were duly itemized and valued in the notes to the Consolidated Financial Statements. European single electronic format (“ESEF”) Not applicable because English is not an official language in Belgium. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 216 Audit report dated 27 March 2025 on the Consolidated Financial Statements of Compagnie d'Entreprises CFE SA/ Aannemingsmaatschappij CFE NV as of and for the year ended 31 December 2024 5 Other communications. • This report is consistent with our supplementary declaration to the Audit Committee as specified in article 11 of the regulation (EU) nr. 537/2014. Diegem, 28 March 2025 EY Bedrijfsrevisoren BV Statutory auditor Represented by Marnix Van Dooren * Partner Acting on behalf of a BV/SRL Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 217 PARENT COMPANY FINANCIAL STATEMENTS P ARENT COMPANY STATEMENTS OF FINANCIAL POSITION AND COMPREHENSIVE INCOME (BEGAAP) Year ended 31 December (in € thousands) 2024 2023 Start-up costs 0 0 Non-current assets 314,109 310,461 Intangible assets 82 112 Property, plant and equipment 1,427 1,611 Financial assets 312,600 308,739 - Related parties 312,595 308,732 - Other 5 7 Current assets 104,415 86,221 Receivables at more than 1 year 0 0 Inventories and work in progress 0 0 Receivables at up to 1 year 10,520 8,892 - Trade receivables 6,590 7,319 - Other receivables 3,930 1,573 Cash investments 5,065 5,009 Cash equivalents 82,870 67,961 Prepaid expenses 5,960 4,359 Total assets 418,524 396,682 Equity 139,043 142,322 Share capital 8,136 8,136 Share premium 116,662 116,662 Revaluation surplus 0 0 Reserves 6,274 6,274 Retained earnings/(losses) 7,972 11,251 Provisions and deferred taxes 3,988 4,006 Liabilities 275,492 250,353 Non-current liabilities 105,355 90,408 Current liabilities 166,257 156,923 - Current portion of amounts payable after more than one year falling due within one year 53 53 - Financial debt 0 35,000 - Trade payables 4,947 5,241 - Tax liabilities, social liabilities and down payments on orders 894 922 - Other payables 160,363 115,707 Prepaid income 3,880 3,022 Total equity and liabilities 418,524 396,682 Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 218 Year ended 31 December (in € thousands) 2024 2023 RESULT Sales of goods and services 17,854 19,632 Costs of goods sold and services provided (22,009) (22,653) - Merchandise (76) (225) - Services and other goods (16,022) (15,127) - Remuneration and social security payments (5,500) (6,321) - Depreciation, amortisation, impairment and provisions (181) 315 - Other (230) (1,295) Operating income (4,155) (3,021) Financial income 21,869 23,351 Financial expenses (11,063) (9,268) Result before tax 6,651 1 1 1 1 , , 0 0 6 6 2 2 Tax (current and adjustments) (9) (9) Result for the period 6,642 11,053 APPOPRIATION OF INCOME Result for the period 6,642 11,053 Retained earnings from previous period 11,251 10,954 Dividend (9,921) (9,921) Legal reserve 0 0 Other reserves 0 (835) Retained earnings carried forward 7,972 11,251 ANALYSIS OF STATEMENTS OF FINANCIAL POSITION AND COMPREHENSIVE INCOME As of December 31, 2024, non-current liabilities amount to € 105 million and include amounts drawn down on the confirmed bilateral credit facilities (€75 million) and €30 million in medium-term treasury notes. Financial results mainly include the proceeds of dividends paid by BPI Real Estate Belgium SA (€8 million), Green Offshore NV (€8.175 million) partially compensated by corporate financial charges. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 219 GENERAL INFORMATION ABOUT THE COMPANY Registered ofce: Avenue Edmond Van Nieuwenhuyse 30, 1160 Brussels RLP Brussels n° 0400.464.795 Email address: [email protected] Website: https://www.cfe.be Date of incorporation, latest amendments to the articles of association The Company was incorporated by notarial deed of 21 June 1880, published in the Annexes to the Moniteur Belge of 27 June 1880 under number 911, of which the articles of association have been amended several times, most recently by notarial deed of 2 May 2024, published in extracts in the Annexes to the Moniteur Belge of 6 June 2024 under number 24085750. Duration of the Company Unlimited Company form - Applicable law Public Limited Company incorporated under Belgian law Purpose of the Company The purpose of the company is to study and provide any work or construction within each and every of its specialist areas, in par- ticular electricity and the environment, in Belgium and abroad, singly or jointly with other natural or legal persons, for its own ac- count or on behalf of third parties belonging to the public or private sector. It may also perform services related to these activities, directly or indirectly operate them or license them out or carry out any purchase, sale, rent or lease operation whatsoever in respect of such undertakings. It may directly or indirectly acquire, hold or sell equity interests in any company or undertaking existing now or in the future by way of acquisition, merger, spin-off or any other means. It may carry out any commercial, industrial, administrative or nancial operations or operations involving movable or immovable property that are directly or indirectly related to its purpose, even partially, or that could facilitate or develop that purpose, either for itself or for its subsidiaries. The company’s share capital Issued capital At the end of the nancial year, the Company’s share capital amounted to € 8,135,621.14, divided into 25,314,482 shares, with no de- clared par value. All shares are fully paid up. Authorised capital In virtue of the decision of the extraordinary general meeting of shareholders of 2 May 2024, the Board of Directors is authori sed, in the ve-year period of the publication of the amendment to the articles of association of 6 June 2022,, to increase the Company’s capital – in one or more operations – by up to a maximum amount of € 3,000,000 (excluding the premium on resignation).. In virtue of the decision of the extraordinary general meeting of shareholders of 29 June 2022, the Board of Directors may also make use of the authorised capital, in the event of a public bid for the shares issued by the Company, on the conditions and within the limits of Article 7:202 of the CAC. The Board of Directors is allowed to use these powers if the notice of a takeover bid is given to the Company by the Financial Services and Markets Authority (FSMA) not later than three years after the date of the aforementioned extraordinary general meeting. The capital increases decided upon by virtue of these authorisations may be carried out in accordance with the terms and condi - tions to be determined by the Board of Directors, and in particular by contributions in cash or in kind, by capitalisation of available or unavailable reserves or of share premiums, with or without the creation of new shares, whether preference shares or not, wit h or without voting rights, issued below, above or at par value, within the limits permitted by law. Type of shares The Company’s shares are fully paid up and are registered or in electronic form. Any holder of shares may at any time, at their own expense, request the conversion of their fully paid-up shares into another form, within the limits of the law, suspend ownership, usu- fruct or bare. Message from the Chairman and CEO Our ambitions and achievements Management report Sustainability statements Financial statements Annual report 2024 - CFE 220 Place where the Company’s documents may be consulted The statutory and consolidated nancial statements of the Company are led with the National Bank of Belgium. The coordinated version of the Company’s articles of association can be consulted at the ofce of the Commercial Court of Brussels, Brussels divi- sion. The annual nancial report is sent to the registered shareholders and any person who so requests. The coordinated version of the articles of association and the annual nancial report are also available on the website (www.cfe.be). 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