Annual Report (ESEF) • Apr 29, 2022
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File529900TYYSRJH2VJSP602021-01-012021-12-31529900TYYSRJH2VJSP602020-01-012020-12-31ifrs-full:EquityAttributableToOwnersOfParentMemberiso4217:EUR529900TYYSRJH2VJSP602020-01-012020-12-31iso4217:EURxbrli:shares529900TYYSRJH2VJSP602020-12-31xbrli:shares529900TYYSRJH2VJSP602021-01-012021-12-31ifrs-full:EquityAttributableToOwnersOfParentMember529900TYYSRJH2VJSP602021-12-31529900TYYSRJH2VJSP602019-12-31529900TYYSRJH2VJSP602019-12-31ifrs-full:IssuedCapitalMember529900TYYSRJH2VJSP602019-12-31ifrs-full:CapitalReserveMember529900TYYSRJH2VJSP602019-12-31ifrs-full:RetainedEarningsMember529900TYYSRJH2VJSP602019-12-31ifrs-full:ReserveOfCashFlowHedgesMember529900TYYSRJH2VJSP602019-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember529900TYYSRJH2VJSP602019-12-31ifrs-full:EquityAttributableToOwnersOfParentMember529900TYYSRJH2VJSP602019-12-31ifrs-full:NoncontrollingInterestsMember529900TYYSRJH2VJSP602020-01-012020-12-31ifrs-full:RetainedEarningsMember529900TYYSRJH2VJSP602020-01-012020-12-31ifrs-full:NoncontrollingInterestsMember529900TYYSRJH2VJSP602020-01-012020-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember529900TYYSRJH2VJSP602020-01-012020-12-31ifrs-full:ReserveOfCashFlowHedgesMember529900TYYSRJH2VJSP602020-12-31ifrs-full:IssuedCapitalMember529900TYYSRJH2VJSP602020-12-31ifrs-full:CapitalReserveMember529900TYYSRJH2VJSP602020-12-31ifrs-full:RetainedEarningsMember529900TYYSRJH2VJSP602020-12-31ifrs-full:ReserveOfCashFlowHedgesMember529900TYYSRJH2VJSP602020-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember529900TYYSRJH2VJSP602020-12-31ifrs-full:EquityAttributableToOwnersOfParentMember529900TYYSRJH2VJSP602020-12-31ifrs-full:NoncontrollingInterestsMember529900TYYSRJH2VJSP602021-01-012021-12-31ifrs-full:RetainedEarningsMember529900TYYSRJH2VJSP602021-01-012021-12-31ifrs-full:NoncontrollingInterestsMember529900TYYSRJH2VJSP602021-01-012021-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember529900TYYSRJH2VJSP602021-01-012021-12-31ifrs-full:ReserveOfCashFlowHedgesMember529900TYYSRJH2VJSP602021-01-012021-12-31ifrs-full:CapitalReserveMember529900TYYSRJH2VJSP602021-01-012021-12-31ifrs-full:IssuedCapitalMember529900TYYSRJH2VJSP602021-12-31ifrs-full:IssuedCapitalMember529900TYYSRJH2VJSP602021-12-31ifrs-full:CapitalReserveMember529900TYYSRJH2VJSP602021-12-31ifrs-full:RetainedEarningsMember529900TYYSRJH2VJSP602021-12-31ifrs-full:ReserveOfCashFlowHedgesMember529900TYYSRJH2VJSP602021-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember529900TYYSRJH2VJSP602021-12-31ifrs-full:EquityAttributableToOwnersOfParentMember529900TYYSRJH2VJSP602021-12-31ifrs-full:NoncontrollingInterestsMember CONSOLIDATED FINANCIAL STATEMENTS AS AT 31 DEcember 2021 Consolidated income statement T€ Notes 2021 2020 Revenue (1) 15,298,536 14,749,744 Changes in inventories -118,649 17,695 Own work capitalised 8,835 5,763 Other operating income (2) 211,260 205,809 Construction materials, consumables and services used (3) -9,415,079 -9,304,347 Employee benefits expenses (4) -3,843,579 -3,713,069 Other operating expenses (5) -823,814 -910,529 Share of profit or loss of equity-accounted investments (6) 92,110 66,214 Net income from investments (7) 36,102 57,173 EBITDA 1,445,722 1,174,453 Depreciation and amortisation expense (8) -549,614 -543,801 EBIT 896,108 630,652 Interest and similar income 26,962 27,890 Interest expense and similar charges -39,532 -48,492 Net interest income (9) -12,570 -20,602 EBT 883,538 610,050 Income tax expense (10) -287,135 -210,986 Net income 596,403 399,064 attributable to: non-controlling interests 10,697 3,847 attributable to: equity holders of the parent company 585,706 395,217 Earnings per share (€) (11) 5.71 3.85 Statement of total comprehensive income T€ Notes 2021 2020 Net income 596,403 399,064 Differences arising from currency translation 27,064 -34,743 Recycling of differences arising from currency translation 3,637 576 Change in interest rate swaps 20,077 -12,170 Recycling of interest rate swaps 10,585 11,862 Change in cost-of-hedging reserves 0 -209 Recycling of cost-of-hedging reserves 103 -215 Change in currency hedging instruments 0 3,726 Recycling of currency hedging instruments -1,537 13,829 Deferred taxes on neutral change in equity (10) -6,510 -2,028 Other income from equity-accounted investments 4,820 -10,032 Total of items which are later recognised ("recycled") in the income statement 58,239 -29,404 Change in actuarial gains or losses 34,985 -17,513 Deferred taxes on neutral change in equity (10) -9,251 5,530 Other income from equity-accounted investments 37 -23 Total of items which are not later recognised ("recycled") in the income statement 25,771 -12,006 Other income 84,010 -41,410 Total comprehensive income 680,413 357,654 attributable to: non-controlling interests 10,299 3,963 attributable to: equity holders of the parent company 670,114 353,691 Consolidated balance sheet T€ Notes 31.12.2021 31.12.2020 Goodwill (12) 447,679 449,566 Rights from concession arrangements (13) 492,829 511,890 Other intangible assets (14) 28,395 33,061 Property, plant and equipment (15) 2,533,116 2,571,007 Equity-accounted investments (16) 403,163 418,993 Other investments (17) 195,388 187,638 Receivables from concession arrangements (20) 524,570 561,763 Other financial assets (23) 259,971 234,066 Deferred taxes (18) 104,444 185,364 Non-current assets 4,989,555 5,153,348 Inventories (19) 969,103 1,069,909 Receivables from concession arrangements (20) 46,001 42,427 Contract assets (21) 1,348,241 1,071,329 Trade receivables (22) 1,447,374 1,511,850 Non-financial assets 143,203 112,377 Income tax receivables 52,396 48,147 Other financial assets (23) 266,644 268,100 Cash and cash equivalents (24) 2,963,251 2,856,954 Current assets 7,236,213 6,981,093 Assets 12,225,768 12,134,441 Share capital 102,600 110,000 Capital reserves 2,085,806 2,315,384 Retained earnings and other reserves 1,859,100 1,660,762 Non-controlling interests 24,316 22,074 Total equity (25) 4,071,822 4,108,220 Provisions (26) 1,235,924 1,224,244 Financial liabilities1 (27) 710,610 992,111 Other financial liabilities (29) 95,788 105,203 Deferred taxes (18) 104,063 61,291 Non-current liabilities 2,146,385 2,382,849 Provisions (26) 1,097,705 1,008,376 Financial liabilities2 (27) 483,005 163,896 Contract liabilities (21) 1,117,348 1,023,809 Trade payables (28) 2,421,430 2,462,827 Non-financial liabilities 536,945 477,048 Income tax liabilities 51,163 218,481 Other financial liabilities (29) 299,965 288,935 Current liabilities 6,007,561 5,643,372 Equity and liabilities 12,225,768 12,134,441 1 Thereof T€ 452,402 concerning non-recourse liabilities from concession arrangements (2020: T€ 526,792) 2 Thereof T€ 200,338 concerning non-recourse liabilities from concession arrangements (2020: T€ 70,405) Consolidated cash flow statement T€ Notes 2021 2020 Net income 596,403 399,064 Deferred taxes 106,413 -42,437 Non-cash effective results from consolidation 10,375 -2,132 Non-cash effective results from equity-accounted investments 26,605 3,834 Other non-cash effective results -9,679 -5,903 Depreciations/reversal of impairment losses 553,165 544,640 Change in non-current provisions -3,982 87,296 Gains/losses on disposal of non-current assets -62,952 -54,027 Cash flow from earnings 1,216,348 930,335 Change in inventories 105,797 -102,573 Change in receivables from concession arrangements, contract assets and trade receivables -159,118 484,641 Change in non-financial assets -30,585 13,754 Change in income tax receivables -4,534 -5,113 Change in other financial assets -3,402 6,540 Change in current provisions 126,599 127,863 Change in contract liabilities and trade payables 60,870 -226,277 Change in non-financial liabilities 61,197 -17,016 Change in income tax liabilities -176,670 85,564 Change in other financial liabilities 24,059 -18,058 Cash flow from operating activities 1,220,561 1,279,660 Purchase of financial assets -19,289 -40,338 Purchase of property, plant, equipment and intangible assets -456,338 -450,955 Inflows from asset disposals 123,072 131,212 Change in other financing receivables -17,819 16,255 Change in scope of consolidation -7,185 -5,772 Cash flow from investing activities -377,559 -349,598 Issue of bank borrowings 126,600 1,273 Repayment of bank borrowings -90,577 -71,417 Repayment of bonds 0 -200,000 Change in lease liabilities -61,046 -63,689 Change in other financing liabilities -2,072 -57,443 Change in non-controlling interests due to acquisition -2,750 1,200 Distribution of dividends -714,061 -105,813 Cash flow from financing activities -743,906 -495,889 Net change in cash and cash equivalents 99,096 434,173 Cash and cash equivalents at the beginning of the period 2,856,804 2,459,969 Change in cash and cash equivalents due to currency translation 7,201 -38,033 Change in restricted cash and cash equivalents 0 695 Cash and cash equivalents at the end of the period (33) 2,963,101 2,856,804 Statement of changes in equity T€ Share capital Capital reserves Retained earnings Hedging reserves1 Foreign currency reserves Group equity Non-controlling interests Total equity Balance as at 1.1.2020 110,000 2,315,384 1,531,174 -86,849 -47,505 3,822,204 33,695 3,855,899 Net income – – 395,217 – – 395,217 3,847 399,064 Differences arising from currency translation – – – – -34,266 -34,266 99 -34,167 Change in currency hedging instruments – – – 17,131 – 17,131 0 17,131 Change in equity-accounted investments – – -23 -2,593 -7,439 -10,055 0 -10,055 Change in actuarial gains and losses – – -17,494 – – -17,494 -19 -17,513 Change in interest rate swap – – – -308 – -308 0 -308 Deferred taxes on neutral change in equity – – 5,494 -2,028 – 3,466 36 3,502 Other income – – -12,023 12,202 -41,705 -41,526 116 -41,410 Total comprehensive income – – 383,194 12,202 -41,705 353,691 3,963 357,654 Transactions concerning non-controlling interests – – 2,590 0 1 2,591 -2,111 480 Distribution of dividends2 – – -92,340 – – -92,340 -13,473 -105,813 Balance as at 31.12.2020 110,000 2,315,384 1,824,618 -74,647 -89,209 4,086,146 22,074 4,108,220 1 The hedging reserve includes also the cost of hedging, see cash flow hedges section in item (34) Financial instruments. 2 The total dividend payment of T€ 92,340 corresponds to a dividend per share of € 0.90 based on 102,600,000 shares. T€ Share capital Capital reserves Retained earnings Hedging reserves1 Foreign currency reserves Group equity Non-controlling interests Total equity Balance as at 1.1.2021 110,000 2,315,384 1,824,618 -74,647 -89,209 4,086,146 22,074 4,108,220 Net income – – 585,706 – – 585,706 10,697 596,403 Differences arising from currency translation – – – – 31,059 31,059 -358 30,701 Change in currency hedging instruments – – – -1,434 – -1,434 0 -1,434 Change in equity-accounted investments – – 37 4,720 100 4,857 0 4,857 Change in actuarial gains and losses – – 35,038 – – 35,038 -53 34,985 Change in interest rate swap – – – 30,662 – 30,662 0 30,662 Deferred taxes on neutral change in equity – – -9,264 -6,510 – -15,774 13 -15,761 Other income – – 25,811 27,438 31,159 84,408 -398 84,010 Total comprehensive income – – 611,517 27,438 31,159 670,114 10,299 680,413 Transfers – -236,978 236,978 – – – – – Transactions concerning non-controlling interests – – -814 0 0 -814 -1,936 -2,750 Own shares -7,400 7,400 – – – – – – Distribution of dividends2 – – -707,940 – – -707,940 -6,121 -714,061 Balance as at 31.12.2021 102,600 2,085,806 1,964,359 -47,209 -58,050 4,047,506 24,316 4,071,822 1 The hedging reserve includes also the cost of hedging, see cash flow hedges section in item (34) Financial instruments. 2 The total dividend payment of T€ 707,940 corresponds to a dividend per share of € 6.90 based on 102,600,000 shares. Consolidated statement of fixed assets as at 31 DecemBer 2021 Acquisition and production costs T€ Balance as at 1.1.2021 Additions in scope of consolidation Disposals in scope of consolidation Currency translation Additions Transfers Disposals Balance as at 31.12.2021 I. Intangible assets 1. Concessions, software, licences, rights 143,434 9 500 216 2,529 16 4,941 140,763 2. Goodwill 688,459 0 5,114 4,816 0 0 0 688,161 3. Advances paid 16 0 0 0 2 -16 0 2 Total 831,909 9 5,614 5,032 2,531 0 4,941 828,926 II. Rights from concession arrangements 551,793 0 0 0 0 0 0 551,793 III. Tangible assets 1. Properties and buildings 1,543,200 1,119 1,660 5,218 32,289 21,974 41,538 1,560,602 2. Right-of-use assets 428,029 0 115 1,768 75,729 0 29,396 476,015 3. Technical equipment and machinery 2,984,763 1,039 2,907 -3,457 186,584 22,449 142,081 3,046,390 4. Other facilities, furniture and fixtures and office equipment 1,313,330 106 1,023 2,070 153,883 2,031 95,094 1,375,303 5. Advances paid and facilities under construction 64,963 0 0 235 80,891 -46,454 0 99,635 6. Investment property 141,888 0 0 80 135 0 4,714 137,389 Total 6,476,173 2,264 5,705 5,914 529,511 0 312,823 6,695,334 Accumulated depreciation T€ Balance as at 1.1.2021 Additions in scope of consolidation Disposals in scope of consolidation Currency translation Additions1 Transfers Disposals Balance as at 31.12. 2021 Carrying amount as at 31.12. 2021 Carrying amount as at 31.12. 2020 I. 1. 110,389 9 354 220 6,959 0 4,853 112,370 28,393 33,045 2. 238,893 0 5,114 1,036 5,667 0 0 240,482 447,679 449,566 3. 0 0 0 0 0 0 0 0 2 16 349,282 9 5,468 1,256 12,626 0 4,853 352,852 476,074 482,627 II. 39,903 0 0 0 19,061 0 0 58,964 492,829 511,890 III. 1. 688,875 90 623 2,240 37,202 0 21,199 706,585 854,017 854,325 2. 99,144 0 89 386 63,281 0 14,950 147,772 328,243 328,885 3. 2,165,909 907 1,794 -2,666 263,724 0 135,262 2,290,818 755,572 818,854 4. 811,960 95 678 1,146 153,806 0 83,889 882,440 492,863 501,370 5. 0 0 0 0 0 0 0 0 99,635 64,963 6. 139,278 0 0 0 -86 0 4,589 134,603 2,786 2,610 3,905,166 1,092 3,184 1,106 517,927 0 259,889 4,162,218 2,533,116 2,571,007 1 Of this amount, impairments of T€ 7,708, reversal of impairment losses T€ 0 Consolidated statement of fixed assets as at 31 December 2020 Acquisition and production costs T€ Balance as at 1.1.2020 Additions in scope of consolidation Disposals in scope of consolidation Currency translation Additions Transfers Disposals Balance as at 31.12.2020 I. Intangible assets 1. Concessions, software, licences, rights 141,627 5,752 5 -1,607 2,722 132 5,187 143,434 2. Goodwill 689,185 7,330 800 -7,256 0 0 0 688,459 3. Advances paid 149 0 0 0 39 -132 40 16 Total 830,961 13,082 805 -8,863 2,761 0 5,227 831,909 II. Rights from concession arrangements 551,793 0 0 0 0 0 0 551,793 III. Tangible assets 1. Properties and buildings 1,564,127 500 19,563 -17,933 23,769 23,329 31,029 1,543,200 2. Right-of-use assets 381,781 0 0 -4,276 93,170 0 42,646 428,029 3. Technical equipment and machinery 2,958,911 3,047 23,857 -51,866 216,183 77,360 195,015 2,984,763 4. Other facilities, furniture and fixtures and office equipment 1,275,820 1,258 1,255 -15,432 164,410 -6,100 105,371 1,313,330 5. Advances paid and facilities under construction 119,615 0 0 -3,619 43,610 -94,589 54 64,963 6. Investment property 145,800 0 0 -47 222 0 4,087 141,888 Total 6,446,054 4,805 44,675 -93,173 541,364 0 378,202 6,476,173 Accumulated depreciation T€ Balance as at 1.1.2020 Additions in scope of consolidation Disposals in scope of consolidation Currency translation Additions1 Transfers Disposals Balance as at 31.12. 2020 Carrying amount as at 31.12. 2020 Carrying amount as at 31.12. 2019 I. 1. 104,429 4,767 5 -1,662 7,651 0 4,791 110,389 33,045 37,198 2. 235,680 0 800 -503 4,516 0 0 238,893 449,566 453,505 3. 0 0 0 0 0 0 0 0 16 149 340,109 4,767 805 -2,165 12,167 0 4,791 349,282 482,627 490,852 II. 21,436 0 0 0 18,467 0 0 39,903 511,890 530,357 III. 1. 696,481 0 18,585 -6,634 38,977 -433 20,931 688,875 854,325 867,646 2. 55,434 0 0 -751 65,416 0 20,955 99,144 328,885 326,347 3. 2,147,172 2,403 23,374 -34,408 258,167 7,068 191,119 2,165,909 818,854 811,739 4. 773,982 433 1,107 -9,392 150,251 -6,635 95,572 811,960 501,370 501,838 5. 0 0 0 0 0 0 0 0 64,963 119,615 6. 140,499 0 0 0 356 0 1,577 139,278 2,610 5,301 3,813,568 2,836 43,066 -51,185 513,167 0 330,154 3,905,166 2,571,007 2,632,486 1 Of this amount, impairments of T€ 5,929, reversal of impairment losses T€ 0 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Basic principles The STRABAG Group is a leading European technology group for construction services. STRABAG SE has its headquarters in Triglavstraße 9, 9500 Villach, Austria. From its core markets of Austria and Germany, STRABAG is present via its numerous subsidiaries in all countries of Eastern and South-East Europe including Russia, in selected markets in North and Western Europe and the Arabian Peninsula, as well as in the project business in Africa, Asia and the Americas. STRABAG’s activities span the entire construction industry (Building Construction & Civil Engineering, Transportation Infrastructures, Tunnelling, construction-related services) and cover the entire value-added chain in the field of construction. The consolidated financial statements of Strabag SE, at the reporting date 31 December 2021, were drawn up under application of Section 245a Paragraph 2 of the Austrian Commercial Code (UGB) in accordance with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), including the interpretations of the International Financial Reporting Interpretations Committee (IFRIC). Applied were exclusively those standards and interpretations adopted by the European Commission before the reporting deadline and published in the Official Journal of the European Union. Further reporting requirements of Section 245a Paragraph 1 of the Austrian Commercial Code (UGB) were fulfilled as well. In addition to a statement of total comprehensive income and the consolidated balance sheet, the financial statements include a cash flow statement in accordance with IAS 7, and a statement of changes in equity (IAS 1). The disclosures in the Notes also contain a segment reporting section in accordance with IFRS 8. In order to improve the clarity of the representation, various items in the balance sheet and the income statement have been combined. These items have been shown separately and are explained in the Notes. The income statement has been drawn up in accordance with the nature of expense method. The consolidated financial statements were shown in T€. The presentation in T€ may result in rounding differences. Changes in accounting policies New and revised standards and interpretations that are effective for the 2021 financial year The IASB has made the following amendments to the existing IFRS and passed several new IFRS and IFRIC, which have also been adopted by the European Commission. Application thus became mandatory on 1 January 2021. Application for financial years which begin on or after (according to IASB) Application for financial years which begin on or after (according to EU endorsement) Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 Interest Rate Benchmark Reform – Phase 2 1.1.2021 1.1.2021 Amendments to IFRS 4 – Deferral of IFRS 9 1.1.2021 1.1.2021 Amendments to IFRS 16 Leases-Covid-19-Related Rent Concessions 1.4.2021 1.4.2021 Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 – Interest Rate Benchmark Reform (IBOR Reform) Phase 2 The Phase 2 amendments address issues arising from the implementation of the reform. Leases, financing arrangements and interest rate hedges concluded by the STRABAG SE Group mainly use the EURIBOR as the interest rate benchmark. EURIBOR rates have been calculated in accordance with the specifications of the EU Benchmark Regulation since 2019. As a result, EURIBOR can continue to be used as the benchmark interest rate and no changes were made to existing contracts. As at 31 December 2021, no material contracts to lending, financing and interest rate hedges using LIBOR or another international interest rate benchmark exist that need to be changed. The amendment therefore had no impact on the IFRS consolidated financial statements. The first-time adoption of the other IFRS standards had no impact on the consolidated financial statements as at 31 December 2021. Future changes of financial reporting standards The IASB and the IFRIC approved further standards and interpretations. However, these were neither required to be applied in the 2021 financial year nor adopted by the European Commission. The amendments affect the following standards and interpretations: Application for financial years which begin on or after (according to IASB) Application for financial years which begin on or after (according to EU endorsement) Impact on the consolidated financial statements Annual Improvements to IFRS 2018–2020 1.1.2022 1.1.2022 minor Amendments to IFRS 3 – References to Conceptual Framework 1.1.2022 1.1.2022 no Amendments to IAS 16 – Proceeds before Intended Use 1.1.2022 1.1.2022 minor Amendments to IAS 37 – Onerous Contracts: Cost to Fulfilling a Contract 1.1.2022 1.1.2022 no IFRS 17 Insurance Contracts 1.1.2023 1.1.2023 no Amendments to IAS 1 – Disclosure of Accounting Policies 1.1.2023 1.1.2023 minor Amendments to IAS 1 – Classification of Liabilities as Current or Non-Current 1.1.2023 n. a.1 is being analysed Amendments to IAS 8 – Definition of Accounting Estimates 1.1.2023 1.1.2023 minor Amendments to IAS 12 – Deferred Tax related to Assets and Liabilities arising from a Single Transaction 1.1.2023 n. a.1 minor IFRS 17 Insurance Contracts: Initial Application of IFRS 17 and IFRS 9 – Comparative Information 1.1.2023 n. a.1 no 1 n. a. – endorsement process is still in progress Amendments to IAS 37 – Onerous Contracts: Cost to Fulfilling a Contract Provisions for pending losses from construction contracts are recognised according to IAS 37. The amendment to IAS 37 stipulates that, for the purpose of assessing whether a contract is onerous, all costs that relate directly to a contract must be included in estimating the cost of fulfilling that contract (full cost approach). Before this clarification, a marginal cost approach was also possible with regard to the definition of unavoidable costs, in which only the incremental costs for fulfilling the contract were to be taken into account. When determining the provisions for pending losses from construction contracts, the corporate group has always considered all costs directly attributable to the contract. Therefore, clarification of “costs to fulfil a contract” results in no need to adjust the method for assessing provisions. Early application of the new standards and interpretations is not planned. Consolidation The financial statements of the domestic and foreign companies included in the scope of consolidation are drawn up in ac-cordance with uniform methods of accounting and valuation. The annual financial statements of the domestic and foreign group companies are adapted accordingly. Subsidiaries Entities whose financial and operating policies are controlled by the group constitute subsidiaries. The consolidated financial statements include the financial statements of the parent company and entities (including structured entities) over which the group has control. An entity is considered to be under control if the following criteria are met: The parent company has power over the investee. The parent company is exposed to variable returns on the investment. The parent company has the ability to affect the returns from the investment through its power over the investee. Control over an entity is reassessed if facts and circumstances indicate that there are changes to one or more of the three elements of control discussed above. Owning a majority of the voting rights is not always necessary to have power and control over an investee, but can be achieved through other rights or contractual agreements which give the parent company the possibility to affect the returns of the investee. A subsidiary is included in the consolidated financial statements from the date on which the parent company acquired control. Conversely, the entity is deconsolidated when control ends. Capital consolidation is performed in accordance with IFRS 3 using the acquisition method. The cost of acquisition of the subsidiary is measured as the sum of the fair values of assets given, equity instruments issued and liabilities assumed. Contingent considerations are also measured at their fair value from the date of the business combination. Later deviations from this value are recognised in profit or loss. Transaction costs are also recognised immediately in profit or loss. Non-controlling interests are recognised based on their proportional interest in the net assets of the acquired entity (partial goodwill method). The option of recognising non-controlling interests at fair value is not used. In business combinations achieved in stages (step acquisitions), the existing equity interest of the entity is remeasured at fair value from the date of acquisition. The resulting profit or loss is recognised in the income statement. The acquisition costs, contingent considerations, existing equity interests and non-controlling interests are to be compared with all identifiable assets and liabilities of the subsidiary, measured at fair value. Any remaining difference on the assets side is classified as goodwill. Differences arising from the capital consolidation on the liabilities side are recognised immediately in profit and loss following another review. Goodwill is subjected to an impairment test in accordance with IAS 36 at least once a year. In the 2021 financial year, T€ 0 (2020: T€ 7,330) in goodwill arising from capital consolidation were recognised as assets. Impairments in the amount of T€ 5,667 (2020: T€ 4,516) were made. Immaterial subsidiaries are not consolidated; these are reported at amortised cost and recognised in the item other investments. Transactions with non-controlling interests that do not result in loss of control Differences arising from the acquisition or disposal of investments in affiliated entities without acquisition or loss of control are recognised in full in equity outside profit or loss. Disposal of subsidiaries When control over a subsidiary is lost, any remaining investment is remeasured at fair value. The difference to the existing carrying amounts is recognised in profit or loss. Associates, joint arrangements or financial assets are initially recognised at this fair value. All previous amounts recognised to date in other income are accounted for as if the assets and liabilities of the affected entities had been sold directly. Structured entities Structured entities are entities that are not controlled by voting rights, but mainly through contractual arrangements for a specific business purpose. The business purpose is usually restricted to a narrow field of activity. Structured entities typically have little equity capital and rely on owner financing. Associates Entities in which the group exercises significant influence constitute associates. This is generally the case with a holding of between 20 % and 50 % of the voting rights. Investments in associates are accounted for using the equity method and recognised in the item equity-accounted investments. The acquired investment is initially measured at cost. Any differences that arise are treated according to the principles of consolidation. In subsequent years, the carrying amount of the investment increases or decreases in proportion to the share of profit or loss and/or the investee’s other income. Distributions reduce the carrying amount of the investment. As soon as the group’s share of losses equals or exceeds the interest in the associate, no further losses are recognised unless the group is liable for the associate’s losses. At the end of every accounting period, the group determines whether there are any indications for an impairment of the investment in the associate. If there are, then the difference between the carrying amount and the recoverable amount is recognised as an impairment expense in the income statement. In the year under review, as in the previous year, the initial equity measurement of newly acquired entities did not result in any goodwill, which is reported under equity-accounted investments. Associates which are immaterial and therefore not recognised using the equity method, are recognised at amortised cost and accounted for in the item other investments. Joint arrangements Joint ventures are entities over which the group exercises joint control together with a third entity. Joint control exists when the determination of the financial and operating policies requires the unanimous consent of all parties to the joint control. STRABAG accounts for joint ventures using the equity method and these are recognised in the item equity-accounted investments. Joint ventures which are immaterial and therefore not recognised using the equity method, are recognised at amortised cost and accounted for in the item other investments. Consortia are quite common in the construction industry in Austria and Germany. According to the Institute of Public Auditors in Germany (IDW) and a statement by the Austrian Financial Reporting and Auditing Committee (AFRAC), the typical German and Austrian construction consortium meets the requirements to be classified as a joint venture. Earnings from construction consortia are presented proportionately under share of profit or loss of equity-accounted investments. The receivables from and payables to construction consortia include mainly in- and outflows of cash, charges resulting from services as well as proportional contract results and are recorded under trade receivables and trade payables. Joint arrangements for the execution of construction work in the remaining countries are accounted for either as joint ventures or as joint operations depending on the substance of the arrangement. Investments In accordance with IFRS 9, investments which do not constitute subsidiaries, joint ventures or associates are recognised at fair value through profit or loss and are stated under other investments. Consolidation procedures As part of the consolidation of intercompany balances, any trade receivables, loans and other receivables existing within the group are set off against the corresponding liabilities and provisions of the subsidiaries included in the consolidated financial statements. Expenses and revenues from intra-group transactions are eliminated. Results incurred from intra-group transactions that are recognised in the non-current and current assets are eliminated if they are material. Non-controlling interests are taken into consideration during the elimination of intra-group profits or losses. Unrealised profits from transactions between group entities and associates are eliminated in proportion to the group’s share in the associate. Non-controlling interests in equity and profits of companies controlled by the parent company are shown separately in the consolidated financial statements. The necessary tax deferrals are made for consolidation procedures. Scope of consolidation The consolidated financial statements as at 31 December 2021 include STRABAG SE as well as all major domestic and foreign subsidiaries over which STRABAG SE either directly or indirectly has control. Associates and joint ventures are reported in the balance sheet using the equity method (equity-accounted investments). Group companies which are of minor importance for the purpose of giving a true and fair view of the financial position, financial performance and cash flows of the group are not consolidated. The decision to include an entity in the scope of consolidation is based on quantitative and qualitative considerations. Subsidiaries and equity-accounted investments included in the 2021 consolidated financial statements are given in the list of investments. The financial year for all consolidated and associated companies, with the exception of the following companies that are included in the scope of consolidation on the basis of an interim report effective 31 December 2021, is identical with the calendar year. Companies Reporting date Method of inclusion EFKON INDIA Pvt. Ltd., Mumbai 31.3. consolidation Thüringer Straßenwartungs- und Instandhaltungsgesellschaft mbH & Co. KG, Apfelstädt 30.9. equity-accounted investment The number of consolidated companies changed in the 2020 and 2021 financial years as follows: Consolidation Equity method Balance as at 31.12.2019 285 27 First-time inclusions in year under report 14 2 First-time inclusions in year under report due to merger/accretion 3 0 Merger/accretion in year under report -8 -1 Exclusions in year under report -14 -4 Balance as at 31.12.2020 280 24 First-time inclusions in year under report 5 0 First-time inclusions in year under report due to merger/accretion 3 0 Merger/accretion in year under report -4 0 Exclusions in year under report -18 -2 Balance as at 31.12.2021 266 22 Additions to scope of consolidation The following companies formed part of the scope of consolidation for the first time on the reporting date: Consolidation Direct stake % Date of acquisition or foundation DCO d.o.o., Ljubljana 100.00 1.1.2021 1 Metallica Stahl- und Fassadentechnik GmbH, Stuttgart 100.00 1.1.2021 1 Rezidence Herálecká s.r.o., Prague 100.00 10.2.2021 STRABAG SCARBOROUGH PROJECT INC., Ontario 100.00 6.4.2021 STRABAG UK LIMITED, London 100.00 1.1.2021 1 Merger/Accretion DRUMCO SA, Timisoara 100.00 23.7.2021 2 SEF Netz-Service GmbH, Munich 100.00 20.10.2021 2 STRABAG PFS s.r.o., Prague 100.00 1.8.2021 2 1 Due to its increased business volumes, the company was included in the scope of consolidation of the group for the first time effective 1 January. The foundation/acquisition of the company occurred before 1 January 2021. 2 The companies listed under Merger/Accretion were merged with/accrued on already consolidated companies and as such are at once represented as additions to and removals from the scope of consolidation. Companies included for the first time were consolidated at the date of acquisition or a near reporting date, provided this had no significant difference to an inclusion at the date of acquisition. Additions to assets and liabilities from initial consolidations are comprised as follows: T€ Initial consolidations Acquired assets and liabilities Other non-current assets 1,204 Current assets 2,292 Non-current liabilities -107 Current liabilities -1,738 Resulting loss from initial consolidation 269 Trade-off (purchase price) 1,920 Non-cash effective purchase price component -1,920 Acquired cash and cash equivalents 182 Net cash inflow from initial consolidations 182 All companies which were consolidated for the first time in 2021 contributed T€ 77,117 (2020: T€ 112,850) to revenue and with a loss of T€ 1,629 (2020: loss of T€ 14,639) to net income after minorities. Assuming a fictitious first-time consolidation on 1 January 2021 for all new acquisitions, consolidated revenue and net income would only insignificantly change in the fiscal year. Disposals from the scope of consolidation As at 31 December 2021, the following companies were no longer included in the scope of consolidation: Disposals from scope of consolidation BEWO - Projekt Q4a Reininghausstraße GmbH & Co KG, Graz Sale Bug-AluTechnic GmbH, Vienna Fell below significant level Chustskij Karier, Zakarpatska Sale Eckstein Holding GmbH, Spittal an der Drau Fell below significant level EFKON SOUTH AFRICA (PTY) LTD, Pretoria Sale EVOLUTION ONE Sp. z o.o., Warsaw Fell below significant level Lift-Off GmbH & Co. KG, Cologne Fell below significant level Nordbahnhof Projekt EPW8 GmbH & Co KG, Vienna Sale Nordbahnhof Projekt EPW8 Komplementär GmbH, Vienna Sale Nordbahnhof Projekt Taborstraße 123 GmbH & Co KG, Vienna Sale Nordbahnhof Projekt Taborstraße 123 Komplementär GmbH, Vienna Sale RE Klitschgasse Errichtungs GmbH, Vienna Fell below significant level Sakela Beteiligungsverwaltung GmbH, Vienna Fell below significant level Shanghai Changjiang-Züblin Construction&Engineering Co.Ltd., Shanghai Sale SQUARE One GmbH & Co KG, Vienna Sale Zezelivskij karier TOW, Zezelev Sale Züblin Ground and Civil Engineering LLC, Dubai Fell below significant level Züblin Inc., Saint John/NewBrunswick Fell below significant level Merger/Accretion1 DRUMCO SA, Timisoara Merger Griproad Spezialbeläge und Baugesellschaft mbH, Cologne Merger SEF Netz-Service GmbH, Munich Merger STRABAG PFS s.r.o., Prague Merger at-equity Leopold Ungar Platz 3 GmbH, Vienna Sale SQUARE Two GmbH & Co KG, Vienna Sale 1 The companies listed under Merger/Accretion were merged with already consolidated companies or, as a result of accretion, formed part of consolidated companies. The disposals of assets and liabilities from deconsolidation are composed as follows: T€ Disposals from scope of consolidation Disposals of assets and liabilities Other non-current assets 2,719 Current assets 38,819 Non-current liabilities -474 Current liabilities -30,877 Resulting loss from deconsolidation -6,469 Trade-off received (purchase price) 3,718 Non-cash effective purchase price component -728 Disposals of cash and cash equivalents -10,358 Net cash outflow from deconsolidations -7,368 Resulting profit in the amount of T€ 1,107 (2020: T€ 1,332) and losses in the amount of T€ 7,576 (2020: T€ 1,496) are recognised in profit or loss under other operating income or other operating expenses. One of the STRABAG Group’s business fields is real estate project development. SQUARE One GmbH & Co. KG, Vienna, is a project company for a commercial project in Vienna that was sold as a share deal in the 2021 financial year. In these cases, the disposal profit was not presented as a deconsolidation gain from an economic point of view; instead, the sales revenues from project developments and the corresponding expenses were presented gross. There were no significant restrictions on the use of assets or risks related to structured entities at the end of the reporting period. Non-controlling interests As of 31 December 2021, the amount of the non-controlling interests stood at T€ 24,316 (2020: T€ 22,074) in the STRABAG SE Group and is thus immaterial. The non-controlling interests comprise numerous subsidiaries and mainly affect the project development companies. Besides the above-mentioned investments, the ownership interests in other subsidiaries in the financial year changed only insignificantly or had insignificant impact. The changes are represented in the list of investments. Currency translation The items contained in the financial statements of each group entity are measured on the basis of the currency corresponding to the currency of the primary economic environment in which the entity operates (functional currency). The functional currency of STRABAG’s subsidiaries is the respective local currency, with the exception of the following companies, whose functional currency is the euro: AKA Zrt., Budapest AMFI HOLDING Kft., Budapest BHK KRAKÓW JOINT VENTURE Sp. z o.o., Warsaw EVOLUTION TWO Sp. z o.o., Warsaw EXP HOLDING Kft., Budapest Ranita OOO, Moscow The consolidated financial statements are prepared in euro, STRABAG’s reporting currency. Foreign currency transactions are translated into the functional currency at the foreign exchange rate on the day of the trans-action. On the reporting date, monetary items are translated at the closing rate, while non-monetary items are translated at the rate on the day of the transaction. Exchange differences are recognised in profit or loss. Assets and liabilities of group entities whose functional currency is not the euro are translated from the respective local currency into euro at the average exchange rate on the reporting date. As well as the corresponding profit for the period, the income statements of foreign group entities whose functional currency is not the euro are translated at the average exchange rate for the reporting period. The differences resulting from the use of both rates are reported outside profit or loss. Monetary items in form of receivables or payables which settlement is neither planned nor likely to occur in the foreseeable future are, in substance, a part of an entity´s net investment in a foreign operation. Currency translation differences arising on such monetary items are initially recognised in other comprehensive income and reclassified from equity to profit and loss on disposal of the net investment. The most important currencies, including their average exchange rates, are listed under item (34) Financial instruments. Currency translation differences of T€ 30,701 (2020: T€ -34,167) were recognised directly in equity in the financial year. Forward exchange operations (hedging), excluding deferred taxes, in the amount of T€ -1,434 (2020: T€ 17,131) were recognised directly in equity. Restatements in accordance with IAS 29 (Financial Reporting in Hyperinflationary Economies) were not necessary. Accounting policies Goodwill Goodwill from a business combination is initially measured at cost. This is calculated as the excess of the consideration transferred over the identifiable assets acquired and liabilities assumed. Subsequent to initial recognition, goodwill is measured at cost less accumulated impairment losses. Goodwill is not amortised, rather, it is subjected to an annual impairment test in accordance with IAS 36. The group conducts its annual test for goodwill impairment at year’s end. Testing is also performed if events or circumstances indicate that the figure could be impaired. For the purpose of the impairment test, goodwill is assigned to one or more of the group’s cash-generating units that should benefit from the synergy effects of the combination. The recoverability of goodwill is determined by comparing the carrying amount of the respective cash-generating unit (CGU) or units with the recoverable amount. If the goodwill is impaired, an impairment loss is recognised. A reversal of impairment losses once the reasons for the impairment no longer apply is not foreseen for goodwill. Rights from concession arrangements Service concession arrangements between the STRABAG Group and the public sector to build, operate, maintain and finance infrastructure facilities are treated in accordance with the requirements of IFRIC 12. A right from a concession arrangement is recognised if the consideration does not represent an enforceable right to payment, but instead a right to charge a usage fee is granted. The right from the concession arrangement is accounted for at the fair value of the consideration and subsequently recognised less depreciation over the period of the concession and impairment losses. If the reasons for the previously recognised impairment no longer apply, these assets are written back through profit or loss. The amount may not exceed the carrying amount that would have resulted if no impairment loss had been recognised in previous periods. other Intangible assets Acquired intangible assets are recognised at their initial costs less depreciation and impairment if applicable. Development costs for an internally generated intangible asset are capitalised if the group can demonstrate the technical feasibility of completing the intangible asset so that it will be available for internal use or sale and if it can demonstrate the intent to complete the intangible asset and use or sell it. The group must also demonstrate that the intangible asset will generate probable future economic benefits, that it has adequate resources to complete the asset and that it is able to reliably measure the expenditure attributable to the asset during its development. The construction costs for these assets comprise all construction costs directly attributable to the construction process as well as production-related overheads. Borrowing costs are capitalised for qualified assets. Research costs which do not fulfil these criteria are recognised as an expense in the period in which they are incurred. Costs that have already been recognised as an expense are not capitalised in a subsequent period. The subsequent measurement of intangible assets with definite useful lives is performed at cost less accumulated depreciation and impairment losses. Within the group, there are no intangible assets with indefinite useful lives. The following useful lives were assumed for intangible assets using the straight-line method: Intangible assets Useful life in years Property rights/utilisation rights/other rights 3–50 Software 2–5 Patents, licences 3–10 Property, plant and equipment Property, plant and equipment is initially recognised at cost. STRABAG performs subsequent measurements using the cost model – cost less accumulated depreciation and impairment losses. If the reasons for a previously recognised impairment loss no longer apply, these assets are written back through profit or loss. The amount may not exceed the carrying amount that would have resulted if no impairment loss had been recognised in the previous periods. Subsequent acquisition costs are capitalised if it is probable that future economic benefits will flow to the group and if the costs can be reliably determined. Repair and maintenance costs which do not constitute significant maintenance expenditures are recognised as expenses in the period in which they are incurred. Depreciable property, plant and equipment is depreciated using the straight-line method over the expected useful life. If there is an indication that an asset may be impaired and if the present values of the future cash inflow surpluses are below the carrying amounts, the amount is revalued to the lower recoverable amount in accordance with IAS 36. The following useful lives were assumed for property, plant and equipment: Property, plant and equipment Useful life in years Buildings 10–50 Investments in third-party buildings 5–40 Machinery 3–15 Office equipment/furniture and fixtures 3–10 Vehicles 4–9 INVESTMENT PROPERTY Investment property is property held to earn rentals or for the purpose of capital gains. Investment property is initially measured at cost. STRABAG uses the cost model for subsequent measurements, i.e. the measurement is performed at cost less accumulated depreciation and impairment losses. If the present values of the future cash inflow surpluses are below the carrying amounts, the amount is revalued to the lower recoverable amount in accordance with IAS 36. The recoverable amount of this investment property is disclosed separately. The fair value is determined using recognised methods such as derivation from the current market price of comparable properties or the discounted cash flow method. The useful life of investment property varies between 10 and 35 years. Investment property is depreciated using the straight-line method. The presentation in the balance sheet is under property, plant and equipment. Leases A lease is a contractual arrangement in which the lessor (owner) grants the lessee (user) the right to control an identified asset for a specified period of time in exchange for a consideration. The STRABAG SE Group is a lessee of real estate properties (offices, storage spaces, etc.). A large number of the contracts are stand-alone contracts with comparatively low annual rental payments, of both limited and unlimited duration and with ordinary termination rights. Leases are to be presented as a right-of-use asset and a corresponding lease liability in the balance sheet. The lease payments are split into a financing and a principal component. The finance costs are recognised in profit or loss over the term of the lease, resulting in a constant periodic interest rate on the remaining amount of the liability for each period. The right-of-use asset is amortised on a straight-line basis over the shorter of the two periods of useful life or term of lease. Lease payments are made at the group’s incremental borrowing rate, i.e. the rate of interest that the group would have to pay to borrow the funds necessary to obtain an asset of a similar value and at similar terms in a similar economic environment. Payments for short-term leases and leases for which the underlying asset is of low value are recognised as an expense. Short-term leases are leases with a term of up to twelve months. To a minor extent, the group also acts as a lessor. This essentially involves office space, in particular the Tech Gate Center in Vienna. These leases are to be classified as operating leases. Rental income from these leases is shown in other operating income. Government grants Government subsidies and investment grants are offset against the cost of the assets and amortised in proportion to their useful lives. A government grant is recognised when there is reasonable assurance that the grant will be received, and the group complies with the necessary conditions for receiving the grant. The response to the Covid-19 pandemic included various subsidy programmes to support businesses affected by the crisis. STRABAG made use of these measures in Austria during the 2021 financial year. Applications were made for the revenue shortfall bonus (“Ausfallsbonus”) in the amount of T€ 917, the investment promotion bonus (“Investitionsförderungprämie”) in the amount of T€ 2,091, the fixed cost subsidy (“Fixkostenzuschuss II”) / loss compensation subsidy (“Verlustersatz II”) in the amount of T€ 4,316 and for other subsidies to a lesser extent. Short-time work compensation in the amount of T€ 14,644 was claimed in Austria and Germany in the 2020 financial year, along with other subsidies to a minor extent. Borrowing costs Borrowing costs that are directly attributable to the acquisition or production of a qualifying asset are recognised as part of the cost of that asset. Qualifying assets are assets that necessarily take a substantial period of time (over six months) to get ready for their intended use or sale. Other borrowing costs are recognised as an expense in the period in which they are incurred. Impairment of non-financial assets Assets that are subject to depreciation or amortisation, as well as associates, are tested for impairment whenever events or changes in circumstances indicate that their carrying amount may no longer be recoverable. Assets that have an indefinite useful life, such as goodwill or intangible assets not yet available for use, are tested for impairment annually as such assets are not subject to depreciation or amortisation. To identify the need for impairment, the recoverable amount is determined. The recoverable amount is the higher of fair value of the asset less costs to sell and value in use. If it is not possible to determine the recoverable amount for an individual asset, then the recoverable amount is determined for the smallest identifiable group of assets (cash-generating unit) to which the asset in question can be assigned. Considering that, as a rule, market prices are not available for individual units, the present value of net cash inflows is used to determine the fair value less costs to sell. The forecast of the cash flows is based on STRABAG’s latest planning, with a planning horizon of at least four years. The last detailed planning year forms the basis for calculating the perpetuity if applicable legislation and legal requirements do not limit the usability of the cash-generating unit to a shorter period of time. For the purpose of determining the fair value less costs to sell, the cash-generating unit is measured from the viewpoint of an independent market participant. In calculating the value in use of an asset, on the other hand, the cash flows are considered based on the previous use. For the net cash inflows beyond the detailed planning period, individual growth rates derived from market information are determined based on long-term business expectations in both methods of calculation. Net cash inflows are discounted at the cost of capital, which is calculated as the weighted average cost of equity and debt. Consideration is given to the different yield and risk profiles of STRABAG’s various areas of expertise by determining the individual costs of capital using comparison companies. The cost of equity corresponds to the required rate of return for investors, while the cost of debt is based on the long-term financing conditions available to comparison companies. Both components are derived from capital market information. The following table shows the parameters growth rate and cost of capital for the impairment tests: % 2021 2020 Growth rate 0.0–0.5 0.0–0.5 Cost of capital (after taxes) 5.7–8.3 5.2–8.0 Cost of capital (before taxes) 6.9–11.4 7.2–10.5 The Management Board has calculated the budgeted gross margin based on past developments and on expectations for future market development. If the recoverable amount of an asset is lower than the carrying amount, the impairment is recognised immediately in profit or loss. In the case of impairment losses related to cash-generating units which contain goodwill, existing goodwill is initially reduced. If the impairment exceeds the carrying amount of the goodwill, the difference is generally apportioned proportionally over the remaining non-current assets of the cash-generating unit. With the exception of goodwill, non-financial assets for which an impairment loss was charged in the past are reviewed at every balance sheet date to determine whether the impairment loss should be reversed. Financial assets Financial assets are recognised in the consolidated balance sheet if STRABAG has a contractual right to receive cash or other financial assets from another party. Regular way purchases and sales of financial assets are recognised using settlement date; trade date for derivatives. Financial assets that are not measured at fair value through profit or loss are initially recognised at fair value plus transaction costs which are directly attributable to the acquisition. Transaction costs which arise upon the acquisition of financial assets measured at fair value through profit or loss are immediately recognised as an expense. Receivables bearing no interest or interest below the market rate are initially recognised at the present value of the expected future cash flows. For purposes of subsequent measurement, financial assets are classified in one of the following categories in accordance with IFRS 9, with each category having its own measurement requirements. The classification is determined at initial recognition. For measurement and accounting purposes, financial assets are to be assigned to one of the following categories: Financial assets measured at amortised cost (AC) Financial assets measured at fair value through profit or loss Financial assets, classified as debt instruments under IAS 32, measured at fair value through other comprehensive income (FVOCI-debt) Financial assets, classified as equity instruments under IAS 32, measured at fair value through other comprehensive income (FVOCI-equity) Financial assets measured at amortised cost Financial assets in this category are measured at amortised cost if the objective of the business model is to hold the financial asset to collect the contractual cash flows, and the contractual terms of the instrument give rise to cash flows that are solely payments of principal and interest on the principal amount outstanding. These are classified as current financial assets if they mature within twelve months after the reporting date or within the usual business cycle. Otherwise they are classified as non-current financial assets. As part of the subsequent measurement, financial assets measured at amortised cost are valued using the effective interest method. When applying the effective interest method, all directly attributable fees, fees paid or received, transaction costs and other premiums or discounts included in the calculation of the effective interest rate are amortised over the expected life of the financial instrument. Interest income from the application of the effective interest method is recognised through profit or loss under interest income from financial instruments. Service concession arrangements which provide an absolute contractual right to receive payment are shown separately. All receivables from concession arrangements are accounted for under the special balance sheet item receivables from concession arrangements. The receivables are carried at the present value of the payments to be made. The accumulation amount calculated annually using the effective interest method is recognised in revenue. Impairment allowances are made for expected credit losses. Trade receivables, receivables from consortia, receivables from subsidiaries and receivables from participation companies, as well as other receivables, are measured at amortised cost less impairment allowances for expected credit losses. Financial assets measured at fair value through profit or loss A financial asset that is to be classified as a debt instrument under IAS 32 is measured at fair value through profit or loss if it is held for trading purposes, the cash flow criteria are not met, or it is designated as at FVPL at initial recognition. A financial asset at STRABAG is assigned to this category if it was principally acquired with an intention to sell in the short term. Derivatives also belong to this category if they are not qualified as hedging instruments. Assets in this category are recognised as current assets if the asset is expected to be realised within twelve months. All other assets are classified as non-current. Value changes of financial assets measured at fair value through profit or loss are recognised through profit or loss. This category includes securities reported under non-current financial assets and securities reported under cash and cash equivalents. The fair value option may be elected for financial assets which, based on the underlying business model and the contractual cash flows, are classified as measured at amortised cost if doing so eliminates or significantly reduces a measurement or recognition inconsistency. The fair value option is not elected at STRABAG. Financial assets which represent equity instruments under IAS 32 are also measured at fair value through profit or loss. Value changes are recognised through profit or loss in the income statement. This category contains mainly investments below 20 % that are held under other investments. Without exception, equity instruments are measured at fair value. If an equity instrument is not held for trading purposes, there exists an irrevocable option at initial recognition to measure value changes not in the income statement but in the other comprehensive income. Equity investments recognised in the other comprehensive income may not be later reclassified to the income statement. The option is not exercised at STRABAG. Impairment of financial assets and contract assets For the recognition of impairments, STRABAG allows for expected credit losses under IFRS 9. The expected loss impairment model is used for debt instruments for which subsequent measurement is made at amortised cost. The impairment require-ments under IFRS 9 are also applied to non-financial contract assets. Equity instruments measured at fair value through profit or loss or through other comprehensive income are not within the scope of the IFRS 9 impairment requirements. IFRS 9 outlines a three-stage model to determine the scope of the risk provision, requiring expected credit losses to be measured from initial recognition at an amount equal to the twelve-month expected credit losses or, if the credit risk has worsened significantly, the full expected credit losses over the remaining life of the financial instrument. The general impairment model (general approach) is used for receivables from concession arrangements and for current and non-current other financial assets in the group. Besides the general impairment model, the simplified impairment model (simplified approach) is used for trade receivables and for contract assets under IFRS 15. The simplified impairment model requires a risk provision equal to the expected losses over the full remaining life of the financial instrument to be recognised for trade receivables or contract assets regardless of the respective credit quality. Application of the 30-days-past-due criterion is not useful in the construction sector, on the one hand because of incomplete performance recognition, on the other hand because contracts are often fulfilled for public-sector clients, whose internal pro-cesses to release payment may be lengthy but usually result in full and complete payment. To determine the expected credit losses, trade receivables and contract assets are grouped into different portfolios with similar risk characteristics. In establishing the portfolios, STRABAG also considers the underlying country risk and the creditworthiness. During the initial recognition of financial assets, STRABAG takes into consideration the probability of defaults and continually monitors the development of the credit risk in each reporting period, taking into account all reasonable and supportable information and forecasts. This includes especially the following indicators: internal estimate of creditworthiness by the client external information on creditworthiness based on the corresponding country risk Macroeconomic information (such as market interest rates) and other forecasts are included in the assessment of the credit risk. Besides the application of the general and the simplified impairment approach, financial assets are impaired if there is objective evidence of credit default indicators. STRABAG makes such impairments if the debtor has significant financial difficulty; if there is a high probability that insolvency proceedings will be commenced against the debtor; if a breach of contract and payment default has occurred; or if the issuer’s technological, economic, legal and market environment changes substantially. Impairments lower the carrying amount of the financial assets. The impairment loss or gain resulting from the application of the impairment requirements is recognised through profit or loss in the other operating expense or income. A financial asset defaults if bankruptcy proceedings have been started or it is highly probable that there is no reasonable ex-pectation for repayment. These financial assets are then derecognised. When derecognising financial assets, STRABAG continues to undertake enforcement measures to attempt to recover the receivables that are due. During the year under report, there were no changes with regard to the impairment approaches and criteria that were applied. Derecognition of a financial asset Financial assets are derecognised when the contractual rights to receive payment from the financial assets no longer exist or if the financial assets are transferred along with all substantial risks and rewards. An asset is also derecognised if the substantial risks and rewards of ownership of the asset are neither transferred nor retained but control is relinquished. If control is retained, such transferred financial assets are recognised to the extent of the continuing involvement. Derivative financial instruments and hedging Derivative financial instruments are employed exclusively to mitigate risks arising from movements in currency exchange rates and interest rates. The utilisation of financial derivatives is subject to internal guidelines and controls. Derivative financial instruments are classified as financial assets measured at fair value through profit and loss or as derivatives used for hedging purposes at the date of contract conclusion. Derivative financial instruments are initially recognised at cost and measured at fair value in subsequent periods. Unrealised gains or losses on the measurement are recognised in the income statement if the conditions for hedge accounting under IFRS 9 are not met. Derivative financial instruments are stated under other financial assets or other financial liabilities. Derivative financial instruments are measured based on observable market data (interest and exchange rates) and non-observable market data (the competition’s credit rating). The fair value is determined using generally accepted methods of mathematical finance. On application of the hedge accounting requirements, the group designates derivative financial instruments as hedging instruments to either: hedge the exposure to changes in the fair value of a recognised asset or liability (fair value hedge), or to hedge the exposure to variability in cash flows (cash flow hedge). In the case of fair value hedge accounting, the change in the fair value of the hedged item that is attributable to the hedged risk and the change in the fair value of the hedging derivative are recognised in the income statement. Fair value hedging is not used in the STRABAG Group. If, however, a derivative financial instrument is used as a hedging instrument in a cash flow hedge, the effective unrealised gains or losses from the hedging instrument are initially accounted for under other income. They are reclassified to profit or loss when the hedged item affects profit or loss. Any changes resulting from the ineffectiveness of these financial instruments are recognised immediately in profit or loss in the income statement. When concluding a hedging transaction, STRABAG documents the clear hedging relationship between the hedging instrument and the hedged item, the objective of its risk management, and the underlying strategy. It is also established that there exists an economic relationship between the hedged item and the hedging instrument and that credit risk does not dominate the resulting value changes. The hedging relationship’s hedging ratio reflects the ratio between the designated nominal amount of the hedged item actually used by STRABAG and the designated nominal amount actually designated by STRABAG to hedge the nominal amount of the hedged item. An assessment is made at the beginning of the hedging relationship, with documentation provided continually thereafter, of whether the derivatives used in the hedge are effective or not in offsetting the changes in fair value or cash flow of the hedged item. Hedging relationships are adjusted when there are changes in the hedged item. The critical term match method is used to determine the prospective hedge effectiveness. The retrospective determination of hedge ineffectiveness is made on the basis of the dollar offset method. The relief provided in IFRS 9 due to the interest rate benchmark reform was applied. For further details, please refer to the section “Amendments to IFRS 9, IAS 39 and IFRS 7 – Interest Rate Benchmark Reform”. Current and deferred income taxes The income tax payables and receivables contain mainly rights and obligations regarding domestic and foreign income taxes. These comprise the current year as well as possible rights and obligations from previous years. The receivables/payables are calculated based on the tax regulations in the respective countries. Deferred taxes are measured using the balance sheet liability method for all temporary differences between the valuation of the balance sheet items in the IFRS financial statements and the existing tax value at the individual companies. Furthermore, any realisable tax advantage from existing losses carried forward will be included in the calculation. Exceptions to this comprehensive tax deferral are balances from non-tax-deductible goodwill. Deferred tax assets may only be recognised if the associated tax advantage is likely to be realisable. The calculation of the tax deferral is based on the usual income tax rate in the respective country at the point of the predicted reversal. Recognition is made of deferred tax liabilities arising from temporary differences in relation to investments in subsidiaries and associates unless the timing of the reversal of the temporary differences in the group can be determined and the temporary differences are unlikely to reverse in response to this influence in the foreseeable future. Inventories Inventory costs include cost of purchase and production and are required to be stated at the lower of cost and net realisable value. Production costs include all direct costs as well as appropriate parts of overhead arising in the production. Distribution costs, as well as costs for general administration, are not included in the production costs. Borrowing costs related to production are recognised for inventories which are to be classified as qualifying assets. Contract assets and contract liabilities Regarding construction contracts with customers, revenue is recognised over time as required by IFRS 15, as the construction projects are built on the customers’ properties and the customers thus always control the assets that are created or enhanced. Construction is performed based on stand-alone contracts. The allocation of the transaction price to each performance obligation is made on the basis of the work estimate for the respective stand-alone item. If significant integration services are provided, a separate performance obligation is assumed. Transaction prices for construction contracts in the STRABAG SE Group are determined on the basis of the contract value agreed with the customer. Contractual penalties or bonus payments during the construction period may lead to amendments of the transaction price. These are carried with the most probable value by reason and amount on the basis of the project controlling. Revenue recognition over time is made using the output-oriented method on the basis of the work performed. The actual work performed, and the corresponding revenue are determined at the level of the stand-alone item according to the work estimate. Because of unforeseen deviations in the budgeted costs, the best indicator here is the percentage of completion as derived directly from the actual work performed. The performance completed to date, one of the key corporate governance figures, must be directly determined by the construction site team on a monthly basis. The contract asset represents the group’s right to consideration from construction contracts with customers. If the value of a contract asset of a construction contract exceeds the payments received for it, then this is shown on the assets side under contract assets. In the opposite case, the figure is reported on the equity and liabilities side under contract liabilities. Payments for construction contracts are usually made parallel to the performance on the basis of regular invoicing. Payments of advance consideration before the actual performance are common practice, especially in building construction. Agreements covering extended terms of payment or staggered invoicing of performance completed are made only on a case-by-case basis with special approval by the Management Board of STRABAG SE. If it is probable that the costs exceed the recoverable proceeds, an onerous contract provision is recognised in accordance with IAS 37. Any costs directly attributable to the contract are taken into account to determine the costs. The onerous contract provision, considered individually, is recognised at the amount that is required for the completion of the obligation from the construction contract. Up to the value of the contract asset, an impairment is recognised. If the value of the respective contract asset is exceeded, an onerous contract provision is recognised on the equity and liabilities side under the current provisions. With regard to impairment, see the section “Impairment of financial assets and contract assets”. Inventories that have not yet been used in the construction process but are already present on the construction sites are no longer accounted for as a separate asset but are instead assigned to the respective contract and recognised as a contract asset. Claims and variation orders in connection with construction contracts involve any modification or change (actual construction progress) to the contractually agreed scope of work (agreed specifications). Due to the existing contractual agreements, these modifications to the work to be performed cannot be invoiced until the client approves the changes or agrees to their invoiceability. Modifications or changes to the work to be performed include agreed changes to the work to be performed as well as disputed claims for additional costs due to disruption or due to changes in the scope of work. In the event of agreed changes to the work to be performed, the client actively intervenes in the construction process and changes the scope of work. Changes to the work to be performed are regularly commissioned by the contractor before execution. In this case, a contract modification as defined by IFRS 15.18 exists in which all parties to the contract have agreed to the change in the scope of work and/or price. As a rule, the contract modification is accounted for as part of the original contract in accordance with IFRS 15.21(b), as the changes in the work to be performed are not distinct from the order before contract modification and the contract remains a single performance obligation. Claims for additional costs arising from disruption are incurred when adjustments must be made to the construction process due to disruptions that lie within the client’s sphere of influence. Claims for additional costs also arise in the case of changes ordered by the client who believes these do not result in additional costs, due, e.g. to guarantees for completeness, but which, in the opinion of the contractor, are not included in the scope of the contract. The complexity of construction contracts often leads to different legal views regarding the existence of a legal claim between the client and the contractor, which often results in protracted legal disputes. In accordance with IFRS 15.19, the disputed claims for additional costs involve contract modifications for which the parties to the contract have not yet reached a final agreement with regard to the scope and/or price of the contract. The variable consideration from these contract modifications is therefore estimated in accordance with the provisions of IFRS 15.50-59 and recognised as revenue as part of the original contract in accordance with IFRS 15.21(b). The estimate is based on qualitative and quantitative criteria. The large number of individual claims and variation orders in a construction project, the uncertainty over a long period of time, the individuality of the circumstances, the legal enforceability of the claim and the quality of the documentation are taken into account when estimating the variable consideration. The variable consideration is measured in such a way that there is no reversal of previously recognised revenue in subsequent periods. The corresponding expense is recognised in profit or loss immediately when it is incurred. The consideration for revenue from project developments which, on the basis of the work performed by the reporting date, are realised over time, is recorded under contract assets. The contract asset represents the group’s right to considerations from project developments. Revenue is recognised over time if a contractual agreement excludes the possibility of any alternative use and there exists a right to payment including a profit margin on the work performed. These conditions are always met if real estate projects are sold already prior to their completion. In these cases, the revenue is recognised pro rata based on the degree of completion of the work. If the real estate projects are only partially sold, for example, in the case of owner-occupied flats, the revenue is recognised pro rata only for those parts already sold. The project is then presented pro rata under contract assets. The advances received are offset against the cost of the contract asset. If the advances received exceed the value of the contract asset, presentation is made on the equity and liabilities side under contract liabilities. The notes on construction contracts with customers apply by analogy. Cash and cash equivalents The cash and cash equivalents include all liquid financial assets which at the date of acquisition or investment have a remaining term of less than three months. This comprises bank deposits, time deposits and cash on hand. Cash and cash equivalents are measured at amortised cost. Provisions The following defined benefit plans for which provisions must be recognised exist within the group. The company’s obligation relating to defined benefit plans consists in fulfilling the promised benefits to current and former employees. Defined contribution plans in the form of financing through third-party support funds exist for employees of Austrian subsidiaries whose employment began after 1 January 2003. The severance payments obligations are funded by the regular payment of contributions into the employee provident fund. Provisions for severance payments The group is legally required to provide a one-off severance payment to employees of Austrian subsidiaries in the case of termination or at the date of retirement if their employment began before 1 January 2003. The level of this payment depends on the number of years at the company and amount due at the date of severance and comes to between two and twelve monthly salaries. A provision is made for this obligation. Additionally, the severance payment rights in other countries in the case of termination or retirement amount from one to three monthly salaries. Due to the relatively insignificant amounts involved, provisions for severance payments arising from these obligations are determined using financial mathematical methods. Pension provisions The provisions for pensions are formed for obligations from the right to future pension payments and current payments to present and past employees and their dependents. The group’s pension promises in Germany, Austria and Netherlands exist on the basis of individual contracts or internal labour-management agreements. The obligations are based on a number of different pension arrangements. The number of different employee benefit plans is the result of the group’s enterprise acquisitions in Germany. New agreements are not concluded within the group. As a rule, the pension promises foresee the granting of monthly old age, invalidity and survivors’ benefits. With some promises, the pension arrangement foresees benefits to be paid in the form of a capital payment. The benefit plans exist in various designs. The range of plan structures includes specified benefit systems (e.g. specified amount per year of employment), dynamic systems (e.g. % per year of employment) and benefit promises (e.g. specified promise). Plans also exist with or without survivors’ benefits. In Switzerland, the legal regulations governing pension plans require payments to be made into pension foundations. One half of the contributions are made by the employer, the other half by the employee. The employee contributions depend on the amount of insured income as well as on age and are treated as reduction of the service cost. At retirement, employees can choose to receive a one-off severance payment, regular monthly pension payments or a hybrid of the two options. As restructuring contributions are required if the pension foundation has insufficient funds for coverage, the promises are categorised as defined benefit plans in accordance with IAS 19. Within the STRABAG Group, the obligations of the pension funds are reinsured. Measurement of severance and pension provisions The group’s obligations relating to defined benefit plans are determined separately for each plan using actuarial principles in accordance with the projected unit credit method. The projected unit credit method is used to determine the discounted pension entitlements acquired up to the end of the accounting period. The existing plan assets at their fair value are subtracted from the defined benefit obligations. This yields the defined benefit liability (asset) to be recognised. Determination of the net defined benefit liability at the end of the reporting year is based on an actuarial report from a certified actuarial analyst. The rate used to discount severance and pension provisions is determined on the basis of market yields at the end of the re-spective reporting period on high-quality fixed-interest industrial bonds with a comparable term. The assumptions relating to discounting, pay rises and fluctuation that are used to calculate the severance and pension provi-sions vary in proportion to the economic situation of each specific country. Life expectancy is calculated according to the respective country’s mortality tables. Actuarial gains and losses are recognised in equity outside profit or loss. The service cost is stated in employee benefits expenses, while the interest component of the allocation to the provision is reported in the net interest income. If the present value of a defined benefit obligation changes in response to plan amendments, the resulting effects are recognised in profit or loss as past service cost in the year of the amendment. Any income resulting from a settlement is also recognised directly in the income statement. The company is exposed to various risks in relation to the defined contribution severance and pension plans. Besides the general actuarial risks such as the longevity risk and the interest rate risk, the group is also exposed to currency risk as well as to capital market risk or investment risk. More information concerning the risks is available in the sensitivity analysis under item (26) Provisions. Other provisions The other provisions take into consideration all realisable risks and uncertain obligations. They are recognised at the respective amount which, according to commercial judgement, is necessary at the balance sheet date to cover future payment obligations of the group. Hereby the respective amount which arises as the most probable on careful examination of the facts is recognised. Long-term provisions are, as far as they are not immaterial, entered into the accounts at their discounted discharge amount as at the balance sheet date. The discharge amount also includes the cost increases to be considered on the reporting date. Provisions which arise from the obligation to recultivate gravel sites are allocated according to the rate of utilisation. Non-financial liabilities Non-financial liabilities are carried at the repayment amount. Contract liabilities under IFRS 15 are qualified as non-financial liabilities. Financial liabilities The financial liabilities at STRABAG comprise non-derivative liabilities and derivatives with a negative fair value on the reporting date. For measurement and accounting purposes, financial liabilities are to be assigned to one of the following categories: Financial liabilities measured at amortised cost (FlaC) Financial liabilities measured at fair value through profit or loss (FVPL) Non-derivative financial liabilities are recognised in the consolidated balance sheet if STRABAG has a contractual obligation to transfer cash or other financial assets to another party. Initial recognition of non-derivative financial liabilities is made at fair value. Financial liabilities that are not measured at fair value through profit or loss are initially recognised at fair value plus transaction costs, which are directly attributable to the acquisition. A financial liability is classified as current provided the company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting period. During subsequent measurement of non-derivative financial liabilities carried at amortised cost, any premiums or discounts between the amount received and the repayment amount are spread over the financing term using the effective interest method and recognised in interest expense on an accrual basis. A financial liability is only measured at fair value through profit or loss if it is held for trading purposes or designated as such at initial recognition. Derivatives with negative market value also belong to this category if they are not designated as hedging instruments. Transaction costs which arise upon the acquisition of financial liabilities measured at fair value through profit or loss are immediately recognised as an expense. The fair value option was not exercised for financial liabilities. Financial liabilities are derecognised if the contractual obligations are discharged, cancelled or have expired. Costs related to the issue of corporate bonds are offset over the term using the effective interest method. Contingent liabilities Contingent liabilities are present or possible future obligations for which an outflow of resources is not probable. They are – as long as IFRS 3 does not require recognition on acquisition – not reflected in the balance sheet. Revenue recognition The revenue within the STRABAG SE Group comprises revenue from construction contracts with customers, which regularly account for more than 80 % of the total revenue, revenue from project developments, revenue from construction materials, revenue from facility management, and other revenue. The revenue from construction contracts with customers is recognised over time as required by IFRS 15. Revenue recognition over time is made using the output-oriented method on the basis of the work performed at the reporting date. For further information, please see the notes on contract assets. The recognition of revenue from construction contracts performed in consortia is made over time corresponding to the actual work performed by the reporting date. Impending losses arising from further construction work are accounted for by means of appropriate depreciation. The revenue from project developments is recognised at a point in time after the performance obligation is satisfied by the STRABAG SE Group and after the customer assumes control and has the opportunity to derive benefit from the project. Alternatively, the revenue is recognised over time on the basis of the work performed by the reporting date if a contractual agreement for the STRABAG SE Group excludes the possibility of any alternative use and the contractual agreement foresees a right to payment including the profit margin on the work performed. For real estate projects that are sold already prior to their completion, the revenue is therefore recognised pro rata and the right to payment including the profit margin is presented under the contract assets. For further information, please see the notes on contract assets. The revenue from construction materials, from the facility management, and the other revenue is recognised with satisfaction of the performance obligation upon obtainment of control by the customer. Interest income is recognised as it accrues using the effective interest method. Interest related to concession models and default interest are part of the transaction price of contracts with customers and are therefore recognised under revenue. Other income, such as rental income or expenses passed through, is stated on the basis of the amount accrued in accordance with the respective agreements. The revenue from dividends and the share of profits from investments are recognised if a legal right to payment exists. Net interest income Net interest income includes interest income and interest expenses as well as foreign exchange gains and losses on financing, as these are not part of the operating business. Changes in value as well as gains and losses on disposals of securities are also included in net interest income. impact of the covid-19 pandemic On 11 March 2020, the World Health Organisation (WHO) officially declared Covid-19 a pandemic. STRABAG’s European core markets as well as many of its international markets were to varying degrees affected in the 2021 financial year and remain so today. Construction activity, however, was able to continue largely unrestricted in most countries. The workflows were reorganised in line with the national regulations. Due to the mostly small-scale and decentralised structures compared to other industries, the risk of simultaneous infection or quarantine of a critical portion of the workforce in the construction sector is relatively low. The Management Board of STRABAG SE has therefore been working together with the local management, the occupational safety specialists and the specialists from the service companies to continuously evaluate the risks in the individual group countries. This ensures that necessary decisions are made quickly and implemented effectively. Risks resulting from disruptions in the supply chain due to restrictions in the movement of goods, services and people could be partially cushioned by the high level of value added in raw materials within the group. The existing construction equipment, machinery and other vehicles benefit the group in this regard as well. The construction industry in general benefitted here from a high domestic value-added factor. Declines in the property and facility services segment, specifically in real estate management and industrial services, occurred to a lower-than-expected extent. From today’s perspective, the impact of the Covid-19 pandemic in the real estate development business also appears to be manageable. The construction delays in this respect remained within acceptable limits. Overall, the construction sector has been only slightly affected by the Covid-19 pandemic. Based on the current business development and the order backlog, there is no threat to the company as a going concern. However, the uncertainties that nonetheless exist were taken into account in the medium-term planning prepared in December 2021. The cost of capital used in connection with impairment testing is increased by market risk premiums and beta factors; no growth factors were used. Increased insolvencies can be expected in the coming years following expiration of the national support and deferral programmes. In determining the ECL, the higher credit risk for private clients from the previous year is therefore retained. IMPACT OF CLIMATE CHANGE Climate change is a reality associated with increasing economic impacts and risks for businesses in the future. When preparing the consolidated financial statements, possible risks must be taken into account, especially in the valuation of property, plant and equipment, inventories and provisions. Significant goodwill at the STRABAG SE Group is reported under item (12) Goodwill. Even if an additional risk premium is applied for possible delays or the non-awarding of construction projects, especially in road construction, no amortisation of goodwill is required. Property, plant and equipment consists largely of construction equipment, machinery and the vehicle fleet, which are utilised in a decentralised manner. Temperature increases or severe weather will not have any significant impact on property, plant and equipment in the future. The future need for environmentally friendly technology and equipment was taken into account when determining the useful life and residual values. In the case of inventories, particularly real estate projects without an investor, relevant environmental aspects such as energy efficiency were taken into account when determining the sales price for the valuation. When forming provisions, climate-related risks and probable regulatory changes are also assessed. In total, the risks to assets and liabilities resulting from climate change can nevertheless be classified as comparatively low. Consequently, there are no risks that could jeopardise the continuation of the company as a going concern. On the contrary, the construction sector, as a result of the construction and technology measures required to adapt to climate change, will make a significant contribution to protecting ourselves against the expected impacts. As part of the sustainability strategy adopted in the 2021 financial year, STRABAG has set itself the goal of achieving climate neutrality along the entire value chain by the year 2040. When designing and building construction projects, the company focuses on ecologically compatible, sustainable construction methods as well as on the efficient use of resources and their recycling in order to limit any negative impact of construction on the environment as far as possible. Estimates The preparation of financial statements in conformity with IFRS requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities and the reported amounts of revenue and expenses. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. (a) Recoverability of goodwill The group conducts an annual test to determine whether its goodwill is impaired in accordance with the accounting policies described in the section “Impairment of non-financial assets”. The recoverable amount of the CGUs was determined using fair value less costs of disposal. These calculations are based on assumptions about the expected business development and the recoverable margin. Estimates about the expected business development are based on the facts and circumstances prevailing at the time of preparation of the consolidated financial statements as well as on realistic assumptions about the future development of the global and industry-specific environment. In response to changes in these underlying conditions which deviate from the assumptions and are beyond the Management Board’s control, actual values may deviate from the estimated values. All other things remaining equal, an annual 5 % decrease of the free cash flow used to calculate the recoverable amount would result in a total impairment loss of all goodwill of T€ 527 (2020: T€ 3,553), while an isolated increase of the cost of capital by one percentage point would lead to an impairment of goodwill of T€ 1,323 (2020: T€ 7,668). These two effects together would trigger an impairment loss of T€ 1,815 (2020: T€ 8,319). An extended sensitivity analysis was performed due to the current uncertainty from the Covid-19 pandemic. An annual decrease of 10 % in the recoverable free cash flows and a simultaneous increase of 3 percentage points in the weighted average cost of capital would result in an impairment loss of T€ 11,644 (2020: T€ 15,617). The depreciation would relate to a Slovak concrete production company in the segment International + Special Divisions in the amount of T€ 7,170 (2020: T€ 6,792) as well as several German construction companies in the segment North + West in the amount of T€ 4,474 (2020: T€ 8,825). (b) Recognition of revenue from construction contracts with customers and project developments The revenue from construction contracts with customers is recognised over time. The group estimates the work performed by the reporting date as a percentage of the total volume of the order backlog as well as the remaining contract cost to be incurred. If it is probable that the production costs will exceed the recoverable proceeds, an impairment is recognised up to the value of the contract asset; if the value of the respective contract asset is exceeded, an onerous contract provision is recognised. Technically complex and demanding projects, in particular, involve the risk that the estimate of the total cost deviates considerably from the actual cost incurred. In the event of changes to the contract’s scope and/or price that remain disputed between the parties to the contract (claims and variation orders), revenue from claims and variation orders is estimated in accordance with the provisions on variable consideration under IFRS 15.50ff for the respective project. The estimate is based on qualitative and quantitative criteria. The following factors must be taken into account when estimating the variable consideration: The amount of consideration is susceptible to external factors such as the actions of third parties or court rulings. There are different legal views regarding the contractually agreed claims. The uncertainty about the amount of consideration remains over a longer period of time. The company’s experience from similar construction projects is limited by the individual nature of the projects. Due to the large number of individual claims and variation orders in a construction project, a contract will have a broad range of possible consideration amounts. The actual claims arising from claims and variation orders may therefore differ from the estimated amount, especially in the case of complex construction projects with a large number of different claims and variation orders as well as counterclaims of the client. The above also applies to over-time recognition of revenue from project developments. (c) Equity-accounted investments The group holds a 30 % investment in Lafarge Cement CE Holding GmbH. Lafarge operates cement works in Austria, Hungary, the Czech Republic and Slovenia. The carrying amount of the investment amounted to T€ 210,487 on 31 December 2021 (2020: T€ 217,181). As earnings developed according to plan and because of the ongoing distributions, an impairment test was not required. Deviations from the expected business development as well as developments in the economic environment that are beyond the Management Board’s control may influence the value of the investment. (d) Income taxes STRABAG has to calculate the actual income tax expected for each taxable entity and must assess the temporary differences arising from the different treatment of certain balance sheet items in the IFRS consolidated financial statements and the statutory financial statements required for tax purposes. The existence of temporary differences usually results in the recognition of deferred tax assets and liabilities in the consolidated financial statements. The management must make assessments in the calculation of current and deferred taxes. Deferred tax assets are recognised to the extent that their use is probable. The use of deferred tax assets depends on the possibility of realising sufficient taxable income under the respective tax type and jurisdiction under consideration of any possible legal restrictions regarding the maximum loss carryforward period. A number of different factors is used to assess the probability of the future usability of deferred tax assets, such as the past financial performance, operational planning, loss carryforward periods and tax planning strategies. If the actual results deviate from these estimates, or if these estimates must be adjusted in future periods, this could have a negative impact on the financial position, financial performance and cash flows. In the event of a changed assessment of the recoverability of deferred tax assets, the deferred tax assets which have been recognised are written down in profit or loss or, depending on their original formation, outside profit or loss; impaired deferred tax assets are similarly recognised either in profit or loss or outside profit or loss. (e) Fair value of derivatives and other financial instruments The fair value of financial instruments that are not traded in an active market is determined by using suitable valuation techniques selected from among a number of different methods. The assumptions used are mainly based on market conditions existing at the balance sheet date. The group uses present value techniques to determine the fair value of a number of financial assets that are not traded in an active market. (f) Rights from leases and lease liabilities Within the STRABAG SE Group, a large number of the contracts are lease contracts with comparatively low annual rental ex-penses, of both limited and indefinite duration and with ordinary termination rights. The lease liability is determined by estimating the most likely duration in consideration of extension options and termination rights. All economic aspects for exercising or not exercising the options are taken into account. Deviations between the actual lease terms and these assumptions have an impact on the respective carrying amounts. The risk is reduced by the large number of stand-alone contracts, however. (g) Severance and pension provisions The present value of the severance and pension obligations depends on a number of different factors based on actuarial as-sumptions. One of the assumptions used to determine the net expenses or income for pensions is the discount rate. Any change to these assumptions will influence the carrying amount of the pension obligation. The group determines the appropriate discount rate at the end of every year. The discount rate is the interest rate used to determine the present value of future cash flows required to settle the obligation. For the purpose of determining the discount rate, the group employs the interest rate of highest-grade industrial bonds in the same currency in which the benefits are paid and which have terms to maturity equivalent to those of the pension obligations. Additional substantial assumptions relating to severance and pension obligations are based in part on market conditions. Further information and sensitivity analyses can be found in item (26) Provisions. (h) Other provisions Other construction-related provisions, in particular, involve the risk that in individual cases the actual costs for warranty obligations or remaining performance obligations will turn out higher than expected. The balance sheet item other construction-related provisions is composed of several individual projects together, however, as a result of which the risk is reduced to the individual consideration of the projects. Group companies STRABAG AG and F. Lang u. K. Menhofer Baugesellschaft m.b.H. & Co. KG issued an acknowledgement as part of a settlement in the antitrust proceedings against them in Austria. Subsequently, the Federal Competition Authority (BWB) in July 2021 filed an application with the Cartel Court for a fine against the two companies in the amount of € 45.37 million. The settlement is being made against the background of a criminal and antitrust investigation that was opened in spring 2017 against STRABAG AG and F. Lang u. K. Menhofer Baugesellschaft m.b.H. & Co. KG, along with several other construction companies, regarding allegations of anti-competitive agreements for construction projects in Austria in the period from 2002 to 2017. Both group companies cooperated fully with the Federal Competition Authority from the outset and ultimately issued an acknowledgement as part of a settlement. Their cooperation had a corresponding positive effect on the amount of the fine. In October, the Cartel Court imposed the fine of € 45.37 million, thus confirming the amount requested by the Federal Competition Authority. The ruling was made public on 3 February 2022. Claims for damages by the contracting parties are now to be expected. Corresponding provisions were made in the consolidated financial statements for damage control and claims resulting from the cartel violations. Given the complexity of the matter (long period of time, large number of projects, very different clients, heterogeneous structures, etc.), it is extremely difficult to estimate the extent to which STRABAG will be negatively impacted as a result. The actual amounts may therefore deviate from the amount provided for. Provisions for ongoing and pending legal proceedings are formed on the basis of current assessments. The outcome of these legal proceedings cannot be determined or is subject to uncertainties. The actual claims from the legal proceedings may therefore differ from the provision amounts. Notes on the items of the consolidated income statement (1)Revenue Revenue is represented as follows: Revenue 2021 T€ North + West South + East International + Special Divisions Other Group Business Construction 7,069,774 4,699,981 1,412,964 13,182,719 Germany 5,596,984 121,277 132,341 5,850,602 Austria 16,469 2,083,675 76,004 2,176,148 Poland 1,033,961 0 19,893 1,053,854 Czech Republic 0 776,714 14,767 791,481 Hungary 0 487,798 3,137 490,935 Great Britain 35,783 0 368,628 404,411 Other countries, each below € 300 million 386,577 1,230,517 798,194 2,415,288 Construction materials 148,620 111,600 341,457 601,677 Facility management 0 0 508,694 508,694 Project development 0 0 679,104 679,104 Other 99,553 113,019 96,922 16,848 326,342 Total 7,317,947 4,924,600 3,039,141 16,848 15,298,536 Revenue 2020 T€ North + West South + East International + Special Divisions Other Group Business Construction 7,239,493 4,407,277 1,203,687 12,850,457 Germany 5,669,229 129,801 123,725 5,922,755 Austria 16,115 1,841,626 43,617 1,901,358 Poland 1,068,432 70 6,724 1,075,226 Czech Republic 0 717,186 12,443 729,629 Hungary 0 530,189 1,734 531,923 Chile 0 0 375,661 375,661 Other countries, each below € 300 million 485,717 1,188,405 639,783 2,313,905 Construction materials 130,741 96,945 313,988 541,674 Facility management 0 0 492,752 492,752 Project development 0 0 546,103 546,103 Other 91,640 98,609 113,679 14,830 318,758 Total 7,461,874 4,602,831 2,670,209 14,830 14,749,744 Service concession arrangements to develop, design, build, operate and finance infrastructure facilities are part of the operating business of STRABAG SE. Interest income from these concession arrangements is therefore recognised in revenue from project development amounting to T€ 59,880 (2020: T€ 59,568). The interest income is calculated using the effective interest method. All values presented under revenue involve revenue from contracts with customers. In the 2021 financial year, revenue from approved claims in the amount of T€ 190,862 (2020: T€ 197,347) was recognised. The costs were already recognised in profit or loss in previous periods. This involves a large number of individual projects. Due to the complexity of construction projects, there can be numerous claims, some of which are approved during the con-struction process while others are negotiated only after project completion. During the execution of a construction project, therefore, new claims may arise on an ongoing basis while existing claims from previous periods may be approved. Up to 100 individual claims are quite common in a medium-sized construction project. It is therefore not possible to clearly allocate the costs to the approved claims, so that assumptions must be made when determining the value. Revenue provides only an incomplete picture of the output volume achieved in the financial year. Output volume is a usual concept in the construction industry and at the STRABAG Group comprises the value of the produced goods and services. The total output volume of the group which also includes the proportional output of consortia and associates is therefore represented in addition to the revenue: T€ 2021 2020 Germany 7,461,734 7,323,385 Austria 2,694,313 2,459,842 Poland 1,152,130 1,183,364 Czech Republic 948,016 825,659 Hungary 651,550 670,970 Americas 481,753 494,161 Great Britain 390,034 225,509 Slovakia 289,142 296,976 Romania 264,185 250,175 Benelux 232,308 261,852 Middle East 202,862 119,035 Switzerland 191,710 219,688 Croatia 177,379 171,770 Serbia 154,602 157,671 Asia 144,907 116,844 Rest of Europe 136,238 159,626 Sweden 121,256 160,100 Denmark 109,054 76,397 Slovenia 104,300 58,822 Bulgaria 81,416 65,622 Italy 58,346 51,756 Russia 46,329 51,598 Africa 35,355 45,786 Total output volume 16,128,919 15,446,608 (2)other operating income Other operating income includes insurance compensation and indemnification in the amount of T€ 34,397 (2020: T€ 45,039), exchange rate gains from currency fluctuations in the amount of T€ 12,347 (2020: T€ 5,259) as well as gains from the disposal of fixed assets without financial assets in the amount of T€ 55,642 (2020: T€ 61,873). (3)construction materials, consumables and services used T€ 2021 2020 Construction materials, consumables 2,914,523 2,760,658 Services used 6,500,556 6,543,689 Construction materials, consumables and services used 9,415,079 9,304,347 Services used are mainly attributed to services of subcontractors and professional craftsmen as well as planning services, machine rentals and third-party repairs. The change of provisions for onerous contracts arising from construction contracts is included in this item. (4)employee benefits expenses T€ 2021 2020 Wages 1,372,450 1,363,837 Salaries 1,793,821 1,701,138 Social security and related costs 618,326 594,532 Expenses for severance payments and contributions to employee provident fund 20,179 16,743 Expenses for pensions and similar obligations 12,704 10,226 Other social expenditure 26,099 26,593 Employee benefits expenses 3,843,579 3,713,069 The expenses for severance payments and contributions to the employee provident fund and expenses for pensions and similar obligations include the expenses for service costs and indemnity claims resulting from old age part-time claims in the business year. The proportions of interest included in the expenses for severance payments as well as for pensions and similar obligations are recognised in the item net interest income. Expenses from defined contribution plans amounted to T€ 14,523 (2020: T€ 11,239). The average number of employees with the proportional inclusion of all participation companies is as follows: Average number of employees (FTE) 2021 2020 White-collar workers 31,934 31,889 Blue-collar workers 41,672 42,451 Total 73,606 74,340 (5)other operating expenses Other operating expenses of T€ 823,814 (2020: T€ 910,529) mainly include general administrative costs, travel and advertising costs, insurance premiums, impairment of receivables, the balance of allocations to and utilisation of provisions, legal and advisory costs, rental and lease costs, interest expenses from concession projects and losses on the disposal of assets (excluding financial assets). Other taxes amounting to T€ 64,417 (2020: T€ 53,988) are included. Other operating expenses include losses from exchange rate differences from currency fluctuations in the amount of T€ 23,045 (2020: T€ 48,630). The changes in the impairments for expected credit losses under IFRS 9 in the financial year in the amount of T€ 4,946 as income (2020: T€ 9,749 expense) are included in other operating expenses. Spending on research and development arose in various special technical proposals, in connection with concrete competitive projects and in the introduction of building processes and products into the market and was therefore recognised in full in the income statement. (6)share of profit or loss of equity-accounted investments T€ 2021 2020 Income from equity-accounted investments 34,322 37,985 Expenses arising from equity-accounted investments -21,700 -5,671 Gains on the disposal of equity-accounted investments 3,163 0 Profit from construction consortia 138,240 141,564 Losses from construction consortia -61,915 -107,664 Share of profit or loss of equity-accounted investments 92,110 66,214 (7)net income from investments T€ 2021 2020 Investment income 53,473 69,097 Expenses arising from investments -17,619 -12,505 Gains on the disposal of investments 4,264 4,944 Impairment and reversal of impairment losses of investments -3,551 -839 Losses on the disposal of investments -465 -3,524 Net income from investments 36,102 57,173 (8)depreciation and amortisation expense Depreciations and impairments are represented in the consolidated statement of fixed assets. In the year under report impair-ments on intangible assets and on property, plant and equipment to the amount of T€ 2,041 (2020: T€ 1,413) and reversal of impairment losses in the amount of T€ 0 (2020: T€ 0) were made. Impairment on goodwill amounts to T€ 5,667 (2020: T€ 4,516). For goodwill impairments we refer to the details under item (12) Goodwill. Depreciation and amortisation expense of intangible and tangible assets includes depreciation and amortisation of right-of-use assets for leases in the amount of T€ 63,281 (2020: T€ 65,416). (9)net interest income T€ 2021 2020 Interest and similar income 26,962 27,890 Interest expense and similar charges -39,532 -48,492 Net interest income -12,570 -20,602 Included in interest and similar income are exchange rate gains amounting to T€ 9,959 (2020: T€ 9,973) and interest portions from the plan assets for pension provisions in the amount of T€ 646 (2020: T€ 871). Included in interest expense and similar charges are interest components from the allocation of severance payment and pension provisions amounting to T€ 3,024 (2020: T€ 4,718) as well as currency losses of T€ -13,835 (2020: T€ -15,327). Interest from leases in the amount of T€ 6,122 (2020: T€ 6,364) is included in the interest expense and similar charges. (10)income tax expenses Income tax includes taxes paid in the individual companies or owed on income, as well as deferred taxes and the payments of additional tax payments resulting from tax audits: T€ 2021 2020 Current taxes 180,722 253,423 Deferred taxes 106,413 -42,437 Income tax expense 287,135 210,986 The following tax components are recognised directly in equity in the statement of total comprehensive income: T€ 2021 2020 Change in hedging reserves -6,510 -2,028 Actuarial gains/losses -9,251 5,530 Total -15,761 3,502 The reasons for the difference between the Austrian corporate income tax rate of 25 % valid in 2021 and the actual consolidated tax rate are as follows: T€ 2021 2020 EBT 883,538 610,050 Theoretical tax expenditure 25 % 220,884 152,512 Differences to foreign tax rates -675 11,986 Change in tax rates -772 214 Non-tax deductible expenses 19,899 16,504 Tax-free earnings -28,286 -19,664 Additional tax payments/tax refund -4,689 17,872 Change of valuation adjustment on deferred tax assets 79,268 33,363 Others 1,506 -1,801 Recognised income tax 287,135 210,986 (11)earnings per share The basic earnings per share are calculated by dividing the consolidated profit or loss by the weighted average number of ordinary shares. In the 2021 financial year, 7,400,000 own shares were withdrawn. See also the comments under item (25) Equity. As there are no stock options at the STRABAG Group, the diluted earnings per share equal the basic earnings per share. 2021 2020 Number of ordinary shares 102,600,000 110,000,000 Number of shares bought back 0 -7,400,000 Number of shares outstanding as at 31.12. 102,600,000 102,600,000 Profit or loss attributable to equity holders of the parent company (consolidated profit/loss) T€ 585,706 395,217 Weighted number of shares outstanding during the year 102,600,000 102,600,000 Earnings per share € 5.71 3.85 Notes on the items in the consolidated balance sheet (12)goodwill The composition of and changes in goodwill is shown in the consolidated statement of fixed assets. The goodwill at the balance sheet date is composed as follows: T€ 31.12.2021 31.12.2020 STRABAG Cologne (N+W) 128,838 128,838 STRABAG Cologne (S+E) 61,105 61,105 Czech Republic (S+E) 73,184 69,324 STRABAG Poland (N+W) 57,169 57,635 DIW Group (incl. SPFS Austria, SPFS Czech Republic; I+S) 51,817 51,763 Ed. Züblin AG (N+W) 17,057 17,057 Germany (various CGUs; N+W) 37,409 43,076 Construction materials (various CGUs; I+S) 9,170 8,792 Other 11,930 11,976 Total goodwill 447,679 449,566 The comparison of the carrying amounts with the recoverable amounts of the cash-generating units determined by the annual impairment test showed a need for goodwill impairment of T€ 5,667 (2020: T€ 4,516). This figure is shown under depreciation and amortisation. The recoverable amount of the impaired cash-generating units amounts to T€ 900 (2020: T€ 1,763). The depreciation in the financial year related entirely to a company in bridge construction with an amount of T€ 5,667 allocated to the North + West segment. The recoverable amount of these cash-generating units (CGUs) corresponds to their fair value less cost to sell. The necessary impairments of the cash-generating units exclusively affected goodwill; impairment was not necessary for other assets of the CGUs. The methods of measurement are explained in the section “Accounting policies” (Impairment of non-financial assets). The method applied here is a Level 3 measurement. Regarding the sensitivity analysis of goodwill, we refer to our notes under “Estimates (a) Recoverability of goodwill”. The following table presents the key assumptions used in calculating the recoverable amount for significant goodwill. There were no intangible assets with indefinite useful lives allocated to the CGUs listed below. Carrying amount Methodology Detailed planning period Growth rate Discount rate after tax T€ 31.12.2021 31.12.2021 31.12.2021 31.12.2021 31.12.2021 STRABAG Cologne (N+W) 128,838 FV less cost of disposal (Level 3) [2020: FV less cost of disposal (Level 3)] 4 (2020: 4) 0 (2020: 0) 7.49 % (2020: 7.08 %) STRABAG Cologne (S+E) 61,105 FV less cost of disposal (Level 3) [2020: FV less cost of disposal (Level 3)] 4 (2020: 4) 0 (2020: 0) 7.76 % (2020: 7.53 %) Czech Republic (S+E) 73,184 FV less cost of disposal (Level 3) [2020: FV less cost of disposal (Level 3)] 4 (2020: 4) 0 (2020: 0) 7.91 % (2020: 7.77 %) STRABAG Poland (N+W) 57,169 FV less cost of disposal (Level 3) [2020: FV less cost of disposal (Level 3)] 4 (2020: 4) 0 (2020: 0) 8.07 % (2020: 8.04 %) DIW Group (incl. SPFS Austria, SPFS Czech Republic; I+S) 51,817 FV less cost of disposal (Level 3) [2020: FV less cost of disposal (Level 3)] 4 (2020: 4) 0 (2020: 0) 7.49 % (2020: 7.08 %) The method used is a discounted cash flow model based on recognised valuation techniques, with the forecast of the cash flows calculated by the management on the basis of experience. An annual 5 % decrease of the cash flow and a simultaneous increase of the interest rate by one percentage point would not result in any impairment loss of the goodwill mentioned above. The key assumptions used to determine the recoverable amount were future cash flows and the cost of capital. Management does not consider that any reasonably possible change in the key assumptions would cause the carrying amount of the CGU which contains the above-mentioned goodwill to exceed its recoverable amount. (13)rights from concession arrangements STRABAG has held 100 % of PANSUEVIA GmbH & Co. KG of Jettingen-Scheppach since 28 September 2018. The company concluded a concession arrangement with the Federal Republic of Germany to design, build and finance a section of the A8 motorway and to maintain and operate a section of the A8 motorway between Ulm and Augsburg. In exchange, PANSUEVIA receives the right to charge trucks a uniform toll rate per kilometre on an approx. 57 km long concession section. The toll may be adapted annually. The term of the concession arrangement is set at 30 years and ends on 30 June 2041. The development of the concession right can be found in the consolidated statement of fixed assets. The concession right is amortised over the term of 30 years on the basis of the use of the concession section. The annual income from the toll collections is recognised as revenue. The right from the concession arrangement is offset by variable and fixed interest rate non-recourse financing in the amount of T€ 365,135 (2020: T€ 375,412) classified either as a current or non-current liability depending on the term to maturity. The resulting interest expenses are recognised under other operating expenses. The interest risk based on variable interest was hedged through the conclusion of interest rate swap agreements that satisfy the requirements for presentation as a cash flow hedge. The changes in the value of the interest rate swap are therefore recognised in the other comprehensive income. (14)other intangible assets The composition of and changes in other intangible assets is shown in the consolidated statement of fixed assets. No borrowing costs were capitalised for other intangible assets in the year under report. Capitalised development costs At the balance sheet date, development costs in the amount T€ 0 (2020: T€ 0) were capitalised as intangible assets. A total of T€ 16,164 (2020: T€ 17,376) in research and development costs incurred in the 2021 financial year were recorded as expenses. (15)property, plant and equipment The composition of and changes in property, plant and equipment is shown in the consolidated statement of fixed assets. Borrowing costs in the amount of T€ 0 were capitalised for property, plant and equipment in the year under report (2020: T€ 0). Leases Lessee The development of right-of-use assets from leases is shown in the consolidated statement of fixed assets. The cash outflows from leases in the 2021 financial year break down as follows: T€ 31.12.2021 31.12.2020 Interest from leases 6,122 6,364 Redemption of leases 61,046 63,689 Variable lease payments 6,730 5,985 Payments for short-term leases 9,190 9,680 Total lease payments 83,088 85,718 Additionally, expenses for short-term equipment rentals that do not meet the leasing criteria, in the amount of T€ 162,095 (2020: T€ 153,661) were incurred in the financial year. To a minor extent, the STRABAG Group also rents office space to third parties and thus acts as a lessor. This particularly involves the Tech Gate building in Vienna. The annual rental income amounts to T€ 2,503 (2020: T€ 2,591) and is shown in other operating income. The carrying amount of this building as of 31 December 2021 is T€ 66,376 (2020: T€ 67,953) and is recorded under property, plant and equipment (properties and buildings). Rental income in the next year and the following five years will remain roughly constant. All leases are classified as operating leases. Restrictions on property, plant and equipment/purchase obligations As at the balance sheet date there were T€ 107,021 (2020: T€ 29,798) in contractual commitments for acquisition of property, plant and equipment which were not considered in the financial statements. Restrictions exist for non-current assets in the amount of T€ 0 (2020: T€ 0). Investment property The development of investment property is shown separately in the consolidated statement of fixed assets. The fair value of investment property as of 31 December 2021 amounts to T€ 2,786 (2020: T€ 3,172). The fair value was determined using internal valuation reports or by employing the fair value of development land at market prices. The internal valuations are considered Level 3 measurements as they are not based on observable market data. The rental income from investment property in the 2021 financial year amounted to T€ 5,464 (2020: T€ 5,716) and direct operating expenses totalled T€ 6,210 (2020: T€ 5,991). Rental income in the next year and the following five years will remain roughly constant. In the financial year, as in the year before, no direct expenses were incurred from unlet investment property. Additionally, gains from asset disposals and payments from contract extensions in the amount of T€ 4,176 (2020: T€ 256) and losses from asset disposals in the amount of T€ 126 (2020: T€ 0) were achieved. A reversal of impairment losses in the amount of T€ 0 was made in the financial year (2020: T€ 0). (16)EQUITY-accounted investments T€ 2021 2020 Carrying amount as at 1.1. 418,993 454,532 Change in scope of consolidation 0 -1,782 Acquisitions/contributions 31,858 17,792 Proportional annual results 15,785 32,314 Received distributions -45,316 -36,148 Return of capital -47,874 -37,660 Proportional other income 4,857 -10,055 Recognised as risk provision 16,403 0 Tax adjustment 8,457 0 Carrying amount as at 31.12. 403,163 418,993 Notes on associates Lafarge Cement CE Holding GmbH, Vienna, is a significant associate. The group’s share of the capital and voting rights amounts to 30 %. The company is accounted for using the equity method. We also refer to item (36) Notes on related parties. The following financial information concerns the consolidated financial statements prepared in accordance with IFRS. T€ 2021 2020 Revenue 273,735 248,619 Income from continuing operations 12,447 27,918 Other income 10,111 -18,393 Total comprehensive income 22,558 9,525 attributable to: non-controlling interests -129 76 attributable to: equity holders of the parent company 22,687 9,449 31.12.2021 31.12.2020 Non-current assets 561,205 538,490 Current assets 119,663 117,325 Non-current liabilities -148,483 -148,519 Current liabilities -116,972 -69,439 Net assets 415,413 437,857 attributable to: non-controlling interests 4,070 4,199 attributable to: equity holders of the parent company 411,343 433,658 The financial information presented here can be transferred to the equity carrying amount of the Lafarge Cement CE Holding GmbH in the consolidated financial statements as follows: T€ 2021 2020 Group's share in net assets as at 1.1. 130,097 140,762 Group's share of net income from continuing operations 3,637 8,277 Group's share of other income 3,169 -5,442 Group's share of total comprehensive income 6,806 2,835 Dividends received -13,500 -13,500 Group's share in net assets as at 31.12. 123,403 130,097 Goodwill 87,084 87,084 Equity-carrying amount as at 31.12. 210,487 217,181 The following table arranges in aggregate form the carrying amount and the group’s share of the profit and other income from associates that would be insignificant by themselves: T€ 2021 2020 Total of equity-carrying amount as at 31.12. 87,287 95,358 Group's share of net income from continuing operations 2,630 11,028 Group's share of other income 1,316 -4,400 Group's share of total comprehensive income 3,946 6,627 Notes on joint ventures The following table arranges in aggregate form the carrying amount and the group’s share of the profit and other income from joint ventures that would be insignificant by themselves: T€ 2021 2020 Total of equity-carrying amount as at 31.12. 105,389 106,454 Group's share of net income from continuing operations 9,518 13,009 Group's share of other income 372 -213 Group's share of total comprehensive income 9,890 12,796 Notes on accumulated losses from equity-accounted investments Proportionate losses from equity-accounted investments in the amount of T€ 11,621 (2020: T€ 9,773) were not recognised in profit or loss, as the carrying amounts of these investments already are T€ 0. Notes on consortia The group classifies construction consortia as joint ventures and records their earnings under share of profit or loss of equity-accounted investments. The following table shows the group’s ten most important consortia with regard to the output volume in the 2021 financial year. Construction consortia Stake in % ARGE A1 DAMMER BERGE, Germany (DAM) 50.00 ARGE A26 A7 BAULOS 3.1, Germany (A26) 50.00 ARGE FLUGHAFENTUNNEL, Germany (FHT) 65.00 ARGE KORALMTUNNEL KAT 2, Austria (KAT) 85.00 ARGE NB JVA WILLICH I, Germany (JVA) 50.00 ARGE TULFES PFONS, Austria (TULF) 51.00 ARGE TUNNEL RASTATT, Germany (RAST) 50.00 ARGE U2 17-21, Austria (U2) 50.00 BAU-ARGE ÖPP BAB A49 SLW, Germany (A49) 50.00 COMBINATIE HEREPOORT VOF, the Netherlands (HER) 37.50 The financial information in the 2021 financial year on these consortia is presented 100 % before consolidation and valuation approaches deviating from the consortia balance sheet if applicable. T€ Revenue Non-current assets Current assets thereof cash and cash equivalents Non-current liabilities Current liabilities A49 100,759 6,474 192,068 42,793 0 198,542 FHT 97,309 13,660 167,047 9,514 0 180,707 HER 93,291 451 7,296 7,060 0 7,747 DAM 74,350 58 5,025 123 0 5,083 KAT 53,269 1,080 84,054 543 0 85,134 U2 52,263 2,634 15,042 8,234 0 17,676 RAST 40,674 705 35,238 16,422 0 35,943 JVA 40,335 418 33,882 31,832 0 34,300 TULF 29,276 230 150,913 25,783 0 151,143 A26 27,359 0 9,426 1,307 0 9,426 In the 2021 financial year, the share of profit or loss of equity-accounted investments recorded for the above-mentioned consortia included T€ 22,806 in profits from consortia and T€ 20,860 in losses from consortia including impending losses. The financial information in the 2020 financial year on these consortia is presented 100 % before consolidation and valuation approaches deviating from the consortia balance sheet if applicable. T€ Revenue Non-current assets Current assets thereof cash and cash equivalents Non-current liabilities Current liabilities A49 10,232 194 47,472 22,760 0 47,666 FHT 55,788 13,132 74,417 16,597 0 87,549 HER 26,315 430 11,832 1,939 0 12,262 DAM 0 0 0 0 0 0 KAT 78,346 3,970 106,416 899 0 110,386 U2 0 0 0 0 0 0 RAST 31,545 1,010 24,840 13,422 0 25,850 JVA 2,595 0 4,522 4,522 0 4,522 TULF 69,193 6,253 102,653 72,233 0 108,906 A26 13,722 0 9,230 8,330 0 9,230 In the 2020 financial year, the share of profit or loss of equity-accounted investments recorded for the above-mentioned consortia included T€ 27,511 in profits from consortia and T€ 50,892 in losses from consortia including impending losses. The business transactions with the consortia in the financial year can be presented as follows: T€ 2021 2020 Work and services performed 899,929 1,008,853 Work and services received 17,063 11,339 Receivables as at 31.12. 383,012 478,250 Liabilities as at 31.12. 367,655 406,823 (17)other investments The other investments in companies include investments in subsidiaries, associated companies, joint ventures and other investments which, being immaterial, are reported as not consolidated and are not included at equity in the consolidated financial statements. Detailed information on the group’s investments (shares of more than 20 %) can be found in the list of investments. The development of the other investments in the financial year was as follows: T€ Balance as at 1.1.2021 Currency translation Changes in scope of consolidation Additions Transfers Disposals Impairment/Reversal of impairment losses Balance as at 31.12.2021 Investments in subsidiaries 90,408 0 -3,668 8,516 -28 -713 -4,291 90,224 Investments 97,230 442 0 10,773 28 -4,049 740 105,164 Other investments 187,638 442 -3,668 19,289 0 -4,762 -3,551 195,388 The development of the other investments in the previous financial year was as follows: T€ Balance as at 1.1.2020 Currency translation Changes in scope of consolidation Additions Transfers Disposals Impairment/Reversal of impairment losses Balance as at 31.12.2020 Investments in subsidiaries 86,616 -12 -4,334 18,611 -10 -5,957 -4,506 90,408 Investments 88,446 -175 8,622 3,934 10 -7,274 3,667 97,230 Other investments 175,062 -187 4,288 22,545 0 -13,231 -839 187,638 (18)deferred taxes Tax accruals and deferrals recognised in the balance sheet on temporary differences between the amounts stated in the IFRS financial statements and the respective tax amounts as well as on losses carried forward developed as follows: T€ Balance as at 1.1.2021 Currency translation Changes in scope of consolidation Other changes Balance as at 31.12.2021 Intangible assets and property, plant and equipment 49,772 -26 0 2,908 52,654 Financial assets 7,920 7 0 3,661 11,588 Inventories 26,505 -315 -286 -17,926 7,978 Trade and other receivables 123,004 -1,251 -54 -9,595 112,104 Provisions 197,470 20 -131 -36,682 160,677 Liabilities 75,943 805 -2 -58,513 18,233 Tax loss carryforwards 109,932 236 0 -24,897 85,271 Deferred tax assets 590,546 -524 -473 -141,044 448,505 Netting out of deferred tax assets and liabilities of the same tax authorities -405,182 0 0 61,121 -344,061 Deferred tax assets netted out 185,364 -524 -473 -79,923 104,444 Intangible assets and property, plant and equipment -110,952 252 -107 14,843 -95,964 Financial assets -17,333 0 0 7,168 -10,165 Inventories -31,087 -306 2,597 2,003 -26,793 Trade and other receivables -261,474 478 421 -22,487 -283,062 Provisions -10,683 -61 0 4,948 -5,796 Liabilities -34,944 -17 0 8,617 -26,344 Deferred tax liabilities -466,473 346 2,911 15,092 -448,124 Netting out of deferred tax assets and liabilities of the same tax authorities 405,182 0 0 -61,121 344,061 Deferred tax liabilities netted out -61,291 346 2,911 -46,029 -104,063 Deferred taxes on losses carried forward were capitalised as these can probably be offset with future taxable profits. The planning period is limited to five years. No deferred tax assets were made for tax losses carried forward on the corporate income tax and on the German trade tax (Gewerbesteuer) totalling T€ 1,705,397 (2020: T€ 1,561,402), as their effectiveness as final tax relief is not sufficiently assured. Of the non-capitalised losses carried forward T€ 1,568,548 (2020: T€ 1,423,374) have unrestricted use. For the STRABAG SE tax group, Austria, deferred taxes were capitalised despite tax losses in the previous years as well as in the year under report. The recognised deferred taxes for losses carried forward amount to T€ 76,165 (2020: T€ 86,715), for the STRABAG SE tax group. This contains deferred tax assets on open one-seventh impairments in the amount of T€ 76,165 (2020: T€ 86,715). The Austrian Corporate Income Tax Act (Körperschaftsteuergesetz) requires a tax-effective impairment of investments to be claimed over a period of seven years. The losses of the ongoing year and of the past were strongly influenced by negative special items. To avoid such negative projects, the group has continuously expanded and improved its opportunity and risk management and implemented organisational and strategic improvements. The tax planning for the STRABAG SE tax group for the next five years documents the usability of the tax loss carryforwards. (19)Inventories T€ 31.12.2021 31.12.2020 Construction materials, auxiliary supplies and fuel 218,820 225,086 Finished buildings 128,741 138,137 Unfinished buildings 219,787 291,811 Development land 331,317 354,291 Finished and unfinished goods 21,276 26,148 Payments made 49,162 34,436 Inventories 969,103 1,069,909 Impairment in the amount of T€ 3,883 (2020: T€ 3,414) was recognised on inventories excluding construction materials, auxiliary supplies and fuel. T€ 21,474 (2020: T€ 44,512) of the inventories excluding construction materials, auxiliary supplies and fuel were reported with the net realisable value. For qualifying assets, interest on borrowings was recognised in the amount of T€ 341 (2020: T€ 1,294). (20)receivables from concession arrangements STRABAG has a 100 % interest in the Hungarian M5 motorway concession company, AKA Alföld Koncesszios Autopalya Zrt., Budapest (AKA). In the concession arrangement with the Hungarian state, AKA committed to develop, plan, finance and to build and operate the M5 motorway. The motorway itself is the property of the state; all vehicles and equipment necessary for motorway operation are to be transferred to the state free of charge following the end of the concession period. In exchange, AKA will regularly receive an availability fee, independent of transit volume, from the Hungarian state for making the motorway available to the public. AKA bears the operator’s risk of motorway closure and non-compliance of contractually agreed roadway criteria. The route totals 156.5 km and was built in three phases. The concession period runs until 2031. A one-time extension for up to 17.5 years is possible. All services provided under this concession arrangement are accounted for under the separate balance sheet item receivables from concession arrangements. The receivables are carried at the present value of the payment to be made by the state. The annual accumulation amount is recognised in revenue. The contract also includes interest adjustment payments to be made by the Hungarian state. As a result, the state bears the interest risk from the financing of AKA. These interest adjustment payments represent a separate hedging transaction. Presentation is made as a cash flow hedge; as a result, changes in the fair value of the interest rate swap are recognised in other comprehensive income. The market value of the interest rate swap in the amount of T€ -7,681 (2020: T€ -15,068) is also recognised under long-term receivables from concession arrangements. Recognisable receivables from concession arrangements are offset by non-recourse financing in the amount of T€ 161,656 (2020: T€ 221,785), classified either as a current or non-current liability depending on the term to maturity. The resulting interest expense is recognised in other operating expenses. (21)contract assets and contract liabilities The contract assets comprise the right to payment from construction contracts with customers as well as from project developments for the work performed by the reporting date. If the advances received exceed the payment rights, presentation is made under contract liabilities. The contractual balances are comprised as follows: T€ 31.12.2021 31.12.2020 Contract assets (gross) 7,514,453 7,659,966 Advances received -6,166,212 -6,588,637 Contract assets 1,348,241 1,071,329 Contract liabilities (gross) -6,828,833 -5,386,523 Advances received 7,946,181 6,410,332 Contract liabilities 1,117,348 1,023,809 In the 2021 financial year, revenue was recognised in the amount of T€ 976,548 (2020: T€ 957,247) that had been contained under contract liabilities at the beginning of the financial year. As of 31 December 2021, there are unsatisfied performance obligations from construction contracts with customers and project developments (order backlog) in the amount of T€ 18,877,387 (2020: T€ 15,951,566). The recognition of revenue from these performance obligations is expected with T€ 9,964,684 (2020: T€ 9,653,641) in the following financial year and with T€ 8,912,704 (2020: T€ 6,297,924) in the next four financial years. In the year under report, no costs of contract initiation or contract satisfaction were capitalised as separate assets. As is customary in the industry, the customer has the contractual right to retain part of the total amount of the invoice. As a rule, however, these retentions are redeemed by collateral (bank or group guarantees). With regard to the contract assets and liabilities, we refer to our notes in the section “Estimates - (b) Recognition of revenue from construction contracts with customers and project developments”. (22)trade receivables Trade receivables are comprised as follows: 31.12.2021 31.12.2020 T€ Total thereof current thereof non-current Total thereof current thereof non-current Trade receivables 1,132,810 1,132,810 0 1,116,174 1,116,174 0 Receivables from consortia 254,005 254,005 0 342,574 342,574 0 Advances paid to subcontractors 60,559 60,559 0 53,102 53,102 0 Trade receivables 1,447,374 1,447,374 0 1,511,850 1,511,850 0 (23)other financial assets Other financial assets are comprised as follows: 31.12.2021 31.12.2020 T€ Total thereof current thereof non-current Total thereof current thereof non-current Securities 28,122 0 28,122 27,546 0 27,546 Receivables from subsidiaries 99,401 94,905 4,496 104,118 104,118 0 Receivables from participation companies 158,240 76,299 81,941 137,349 56,946 80,403 Other financial assets 240,852 95,440 145,412 233,153 107,036 126,117 Other financial assets total 526,615 266,644 259,971 502,166 268,100 234,066 (24)cash and cash equivalents T€ 31.12.2021 31.12.2020 Securities 2,823 3,102 Cash on hand 1,338 1,467 Bank deposits 2,959,090 2,852,385 Cash and cash equivalents 2,963,251 2,856,954 (25)Equity The 17th Annual General Meeting of STRABAG SE held on 18 June 2021 resolved to reduce the share capital of the company from € 110,000,000 in a simplified procedure through the withdrawal of 7,400,000 own shares with a proportionate amount of the share capital of € 7,400,000 in accordance with Article 9 Para 1 of the Societas Europaea Regulation (SE-VO) in conjunction with Sec 192 Para 3 (2) and Para 4 of the Austrian Stock Corporation Act (AktG). The purpose of this simplified capital reduction is the withdrawal of own shares. The capital reduction was entered into the commercial register on 16 July 2021. The fully paid-in share capital as at 31 December 2021 amounts to € 102,600,000 and is divided into 102,599,997 no-par bearer shares and three registered shares. The nominal value of the own shares was reclassified from share capital to capital reserves. During the acquisition of own shares in 2011, 2012 and 2013, the acquisition costs of € 236,978,341.46 were deducted from retained earnings. This amount has now been reclassified to capital reserves as part of the withdrawal of own shares. Details as to the development of the equity of STRABAG SE are represented in the statement of changes in equity. Long-term economic success, within the context of responsibility to our shareholders, customers, employees, suppliers, sub-contractors and the company itself, is the primary entrepreneurial objective of the STRABAG Group. Working to pursue these goals, recognising opportunities and risks before and as they arise, and responsibly taking these into consideration safeguards the continuity of the group and protects the interests of the shareholders. To guarantee the continuity of the company, the management and responsible employees assure that there is a balanced relationship between opportunities and risks during the selection of projects and assess the individual risks against the back-ground of the overall company risk. The group equity ratio target was defined at between 20 % and 25 % during the IPO of STRABAG SE in October 2007. The equity ratio is calculated from the carrying amount of the equity as at 31 December divided by the balance sheet total as at 31 December. The equity contains all parts of the equity according to the balance sheet: share capital, capital reserves, retained earnings and other reserves and non-controlling interests. The group equity ratio as at 31 December 2021 amounted to 33.3 % (2020: 33.9 %). With this equity base, the STRABAG Group will be able to participate increasingly in tenders for Public-Private Partnership (PPP) projects. This means that the necessary funds for a participation in equity capital are available and that the related change in the balance sheet total will be manageable. If the group is awarded the tender for large-scale projects, or if a strategically suitable acquisition is made, the equity ratio could briefly fall below the set minimum. In this case, the company reserves the right to adjust the dividend payments to the shareholders or to issue new shares. (26)provisions T€ Balance as at 1.1.2021 Currency translation Changes in scope of consoli-dation Additions Utilisation Balance as at 31.12.2021 Provisions for severance payments 122,552 -919 -78 0 13,194 108,361 Provisions for pensions 428,356 162 0 0 51,693 376,825 Construction-related provisions 484,546 951 0 52,237 33,108 504,626 Personnel-related provisions 17,969 0 0 244 12,353 5,860 Other provisions 170,821 532 0 82,780 13,881 240,252 Non-current provisions 1,224,244 726 -78 135,261 124,229 1,235,924 Construction-related provisions 473,040 3,053 -2,490 613,601 471,391 615,813 Personnel-related provisions 191,650 -769 -274 203,263 191,010 202,860 Other provisions 343,686 924 -4,120 293,297 354,755 279,032 Current provisions 1,008,376 3,208 -6,884 1,110,161 1,017,156 1,097,705 Total 2,232,620 3,934 -6,962 1,245,422 1,141,385 2,333,629 The actuarial assumptions as at 31 December 2021 used to calculate provisions for severance payments and pensions are represented as follows: Severance payments Pension obligation Austria Pension obligation Germany Pension obligation Switzerland Biometric tables AVÖ 2018-P AVÖ 2018-P Dr. Klaus Heubeck 2018G BVG 2020G Discounting rate (%) 0.98 0.98 0.98 0.25 (2020: 0.52) (2020: 0.52) (2020: 0.52) (2020: 0.16) Salary increase (%) 2.00 0.00 0.00 0.70 (2020: 2.00) (2020: 0.00) (2020: 0.00) (2020: 0.70) Future pension increase (%) dependent on contractual 1.50 0.25 n.a. adaption (2020: 1.50) (2020: 0.25) Retirement age for men 62 65 63–67 65 (2020: 62) (2020: 65) (2020: 63–67) (2020: 65) Retirement age for women 62 60 63–67 64 (2020: 62) (2020: 60) (2020: 63–67) (2020: 64) Sensitivity analysis All other parameters remaining equal, a change in the discount rate by +/- 0.5 percentage points, a change in the salary increase by +/- 0.25 percentage points as well as a change in the pension increase by +/- 0.25 percentage points would have the following impact on the amount of the provisions for severance payments and pension obligations as at 31 December 2021: T€ Change in discounting rate Change in salary increase Change in future pension increase Change1 -0.5 %-points +0.5 %-points -0.25 %-points +0.25 %-points -0.25 %-points +0.25 %-points Severance payments -3,844 3,601 1,816 -1,867 n.a. n.a. Pension obligations -34,519 33,026 1,013 -234 11,757 -10,092 1 Sign: - increase of obligation, + decrease of obligation Provisions for severance payments show the following development: T€ 2021 2020 Present value of the defined benefit obligation as at 1.1. 122,552 124,680 Changes in scope of consolidation/currency translation -997 -516 Current service costs 2,378 3,279 Interest costs 485 742 Severance payments -12,178 -9,905 Actuarial gains/losses arising from experience adjustments -352 1,916 Actuarial gains/losses arising from change in the discount rate -3,527 2,356 Present value of the defined benefit obligation as at 31.12. 108,361 122,552 The development of the provisions for pensions is shown below: T€ 2021 2020 Present value of the defined benefit obligation as at 1.1. 631,731 638,605 Changes in scope of consolidation/currency translation 8,364 887 Current service costs 7,468 7,916 Interest costs 2,539 3,976 Pension payments -44,446 -37,148 Actuarial gains/losses arising from experience adjustments -8,667 2,402 Actuarial gains/losses arising from change in the discount rate -23,504 16,062 Actuarial gains/losses arising from demographic changes -7,256 -969 Present value of the defined benefit obligation as at 31.12. 566,229 631,731 The plan assets for pension provisions developed as follows in the year under report: T€ 2021 2020 Fair value of the plan assets as at 1.1. 203,375 202,689 Changes in scope of consolidation/currency translation 8,202 861 Income from plan assets 646 871 Contributions 6,909 7,327 Pension payments -21,407 -12,627 Actuarial gains/losses 6,869 4,254 Assets not included according to IFRIC 14 -15,190 0 Fair value of the plan assets as at 31.12. 189,404 203,375 The plan assets consist of the following risk groups: T€ 31.12.2021 31.12.2020 Shares1 30,433 30,029 Bonds1 45,004 53,573 Cash 1,237 1,280 Investment funds 10,837 14,640 Real estate 22,939 13,663 Liability insurance 61,871 61,716 Other assets 32,273 28,474 Assets not included according to IFRIC 14 -15,190 0 Total 189,404 203,375 1 All shares and bonds are traded in an active market The plan assets involve almost exclusively the assets of the pension foundation of STRABAG AG, Switzerland. Any investments in this regard are subject to the applicable laws and regulations governing the supervision of foundations. Capital investments are to be chosen by trained experts in such a way as to guarantee the investment goal of revenue-generating and risk-minimising asset management while taking into consideration security, risk distribution, returns and the liquidity to fulfil the pension purposes. The investment strategy can be adjusted on an annual basis in order to reflect market changes. Currently the split is 50 % in nominal value assets and 50 % in tangible assets. In the 2021 financial year, STRABAG AG, Switzerland, had a surplus of plan assets over the pension liability of T€ 5,033 (2020: T€ 0). The expected contributions to pension foundations in the following year will amount to T€ 3,293 (2020: T€ 3,575). Asset-liability matching strategy Pension payments in Switzerland are provided by pension foundations with funds dedicated to this purpose, while payments in Austria and in Germany are covered by readily available cash and cash equivalents as well as securities. The actual return on plan assets amounted to T€ 7,634 (2020: T€ 4,534) in the financial year. The following amounts for pension and severance provisions were recognised in the income statement: T€ 2021 2020 Current service costs 9,846 11,195 Interest costs 3,024 4,718 Return on plan assets 646 871 The development of the net defined benefit obligation for pension and severance provisions was as follows: T€ 31.12.2021 31.12.2020 Severance provisions obligation 108,361 122,552 Present value of the defined benefit obligation (pension provision) 566,229 631,731 Fair value of plan assets (pension provision) -189,404 -203,375 Pension provision obligation 376,825 428,356 Obligation total 485,186 550,908 The maturity profile of the benefit payments from the net defined benefit liability as at 31 December 2021 was as follows: T€ < 1 year 1–5 years 6–10 years 11–20 years > 20 years Provisions for severance payments 9,320 27,753 29,976 28,923 1,930 Provisions for pensions 36,305 144,352 135,206 174,185 131,707 The maturity profile of the benefit payments from the net defined benefit liability as at 31 December 2020 was as follows: T€ < 1 year 1–5 years 6–10 years 11–20 years > 20 years Provisions for severance payments 9,218 27,478 31,111 30,664 3,179 Provisions for pensions 36,835 145,892 143,106 187,959 149,970 The durations (weighted average term) are shown in the following table. Years 31.12.2021 31.12.2020 Severance payments Austria 8.66 8.88 Pension obligations Austria 9.01 8.40 Pension obligations Germany 11.00 11.70 Pension obligations Switzerland 14.30 15.10 Pension obligations Netherlands 17.18 17.64 Other provisions The construction-related provisions include warranty obligations, costs of the contract execution and subsequent costs of invoiced contracts, as well as impending losses from projects pending which are not accounted for elsewhere. The personnel-related provisions essentially include bonus obligations and premiums, service anniversary bonuses, contributions to occupational funds as well as costs of the old age part-time scheme and expenses for personnel downsizing measures. Other provisions especially include provisions for damages and litigations. (27)FINANcial liabilities 31.12.2021 31.12.2020 T€ Total thereof current thereof non-current Total thereof current thereof non-current Bonds 200,000 200,000 0 200,000 0 200,000 Bank borrowings 687,764 224,358 463,406 651,741 107,093 544,649 Lease liabilities 305,851 58,647 247,204 304,265 56,803 247,462 Financial liabilities 1,193,615 483,005 710,610 1,156,006 163,896 992,111 Physical securities were established to cover liabilities to banks in the amount of T€ 33,516 (2020: T€ 47,964). The bank borrowings involve non-recourse liabilities in the amount of T€ 652,740 (thereof non-current: T€ 452,402). This value amounted to T€ 597,197 (thereof non-current: T€ 526,792) in the previous year. (28)trade payables 31.12.2021 31.12.2020 T€ Total thereof current thereof non-current Total thereof current thereof non-current Trade payables 2,150,670 2,150,670 0 2,141,827 2,141,827 0 Liabilities from construction consortia 270,760 270,760 0 321,000 321,000 0 Trade payables 2,421,430 2,421,430 0 2,462,827 2,462,827 0 (29)other financial liabilities 31.12.2021 31.12.2020 T€ Total thereof current thereof non-current Total thereof current thereof non-current Payables to subsidiaries 110,530 110,530 0 101,984 101,984 0 Payables to participation companies 15,524 15,524 0 9,445 9,445 0 Other financial liabilities 269,699 173,911 95,788 282,709 177,506 105,203 Other financial liabilities total 395,753 299,965 95,788 394,138 288,935 105,203 (30)contingent assets On 29 June 2020, the tribunal in STRABAG SE v Libya (ICSID Case No. ARB (AF)/15/1) issued its award holding Libya in breach of the agreement between the Republic of Austria and the State of Libya for the promotion and protection of investments. The tribunal consequently awarded STRABAG SE damages of € 75 million plus interests, and ordered Libya to reimburse STRABAG 75 % of its legal costs and expenses, and to bear 75 % of the costs of the arbitration. STRABAG commenced its activities in Libya – the construction of infrastructure – in 2006. The operations were interrupted in 2011 by the conflict in the country. In the arbitration proceedings, STRABAG claimed compensation for losses and damages suffered during the conflict and for work it had already performed on the various construction projects. Libya filed a motion to set aside the arbitration award, which was rejected in first instance by the competent court in the United States. Libya has appealed against this decision. It remains uncertain whether Libya will honour the award. STRABAG is examining the possibilities of enforcing the arbitration award and has initiated recognition and enforcement proceedings on a small scale. These proceedings are moving along very slowly and have not yet led to any additional findings. Because of the existing uncertainties no receivable was recognised. (31)contingent liabilitIEs The company has accepted the following guarantees: T€ 31.12.2021 31.12.2020 Guarantees without financial guarantees 174 174 (32)off-balance sheet transactions In the construction industry, it is customary and necessary to provide various types of guarantees to secure the contractual obligations. These guarantees are usually issued by banks or credit insurers and most commonly comprise bid, contract performance, prepayment and warranty guarantees. In the event these guarantees are called upon, the relevant banks have a contractual right of recourse against the group. The risk that such guarantees are utilised and that a right of recourse arises materialises only if the primary contractual obligations are not properly performed. Obligations and possible risks from such guarantees are recognised in the balance sheet as provisions or liabilities. Not included in the balance sheet or the contingent liabilities as at 31 December 2021 are performance bonds in the amount of € 3.1 billion (2020: € 2.3 billion) of which an outflow of resources is unlikely. As is customary in the industry, STRABAG SE shares liability with the other partners of consortia in which companies of the STRABAG Group hold a share interest. (33)notes to the consolidated cash flow statement The representation of the cash flow statement was made according to the indirect method and separated into the cash flows classified by operating, investing and financing activities. The cash and cash equivalents include exclusively cash on hand, bank deposits and short-term securities. Any effects from changes in the scope of consolidation were eliminated and represented in the cash flow from investing activities. The cash and cash equivalents are composed as follows: T€ 31.12.2021 31.12.2020 Securities 2,823 3,102 Cash on hand 1,338 1,467 Bank deposits 2,959,090 2,852,385 Restricted cash and cash equivalents 0 0 Pledge of cash and cash equivalents -150 -150 Cash and cash equivalents 2,963,101 2,856,804 Moreover, in construction projects executed through consortia there are cash and cash equivalents whose use can only be determined jointly with other partner companies. The cash flow from operating activities in the reporting year contains the following items: T€ 2021 2020 Interest paid 18,503 31,401 Interest received 21,994 14,217 Taxes paid 359,777 154,805 Dividends received 91,198 106,676 The taxes paid include tax arrears from tax deferrals from the previous year. The cash flow from financing activities for the financial year 2021 can be derived from the balance sheet items as follows: T€ Bonds Bank borrowings Other financial liabilities1 Lease liabilities Total Balance as at 1.1.2021 200,000 651,741 31,014 304,265 1,187,020 Issue 0 126,600 0 0 126,600 Repayment 0 -90,577 0 0 -90,577 Increase (+)/decrease (-) of financing 0 0 -2,072 -61,046 -63,118 Total cash flow from financing activities 0 36,023 -2,072 -61,046 -27,095 Currency translation 0 0 -25 1,251 1,226 Change in scope of consolidation 0 0 0 0 0 Other changes 0 0 156 61,381 61,537 Total of non cash-effective changes 0 0 131 62,632 62,763 Balance as at 31.12.2021 200,000 687,764 29,073 305,851 1,222,688 1 The recognition in the balance sheet was made under current and non-current other financial liabilities The cash flow from financing activities can be derived as follows: T€ Inflow (+) Outflow (-) Total cash flows from financing activities -27,095 Change in non-controlling interests due to acquisition -2,750 Distribution of dividends -714,061 Cash flow from financing activities -743,906 The cash flow from financing activities for the financial year 2020 can be derived from the balance sheet items as follows: T€ Bonds Bank borrowings Other financial liabilities1 Lease liabilities Total Balance as at 1.1.2020 400,000 721,888 88,418 300,319 1,510,625 Issue 0 1,273 0 0 1,273 Repayment -200,000 -71,417 0 0 -271,417 Increase (+)/decrease (-) of financing 0 0 -57,443 -63,689 -121,132 Total cash flow from financing activities -200,000 -70,144 -57,443 -63,689 -391,276 Currency translation 0 -3 -75 -3,649 -3,727 Change in scope of consolidation 0 0 0 0 0 Other changes 0 0 114 71,284 71,398 Total of non cash-effective changes 0 -3 39 67,635 67,671 Balance as at 31.12.2020 200,000 651,741 31,014 304,265 1,187,020 1 The recognition in the balance sheet was made under current and non-current other financial liabilities The cash flow from financing activities can be derived as follows: T€ Inflow (+) Outflow (-) Total cash flows from financing activities -391,276 Change in non-controlling interests due to acquisition 1,200 Distribution of dividends -105,813 Cash flow from financing activities -495,889 NOTES ON FINANCIAL INSTRUMENTS (34)FINANcial instruments A financial instrument is a contract that results in a financial asset at one enterprise and a financial liability or equity instrument at another. Financial assets include especially cash and cash equivalents, trade receivables and other receivables and derivatives. Financial liabilities are obligations to pay cash or other financial assets on a regular basis. These include especially financial liabilities such as bank borrowings, bonds, lease liabilities and trade payables. Financial instruments overview The financial instruments as at the balance sheet date were as follows: 31.12.2021 31.12.2020 T€ Measurement category according to IFRS 9 Carrying amount Fair value Measurement category according to IFRS 9 Carrying amount Fair value Assets Investments below 20 % (other investments) FVPL 48,511 48,511 FVPL 41,278 41,278 Trade receivables AC 1,386,815 AC 1,458,748 Receivables from concession arrangements AC 578,252 AC 619,258 Other non-current financial assets AC 229,235 AC 206,520 Other current financial assets AC 266,447 AC 262,555 Cash and cash equivalents AC 2,960,428 AC 2,853,852 Securities FVPL 28,122 28,122 FVPL 27,546 27,546 Cash and cash equivalents (securities) FVPL 2,823 2,823 FVPL 3,102 3,102 Derivatives held for hedging purposes (receivables from concession arrangements) Derivatives -7,681 -7,681 Derivatives -15,068 -15,068 Derivatives held for hedging purposes (other financial assets) Derivatives 2,614 2,614 Derivatives 1,434 1,434 Derivatives other (other financial assets) FVPL 197 197 FVPL 4,111 4,111 Liabilities Financial liabilities FLaC -1,193,615 -1,193,883 FLaC -1,156,006 -1,165,326 Trade payables FLaC -2,421,430 FLaC -2,462,827 Other non-current financial liabilities FLaC -75,789 FLaC -75,777 Other current financial liabilities FLaC -299,965 FLaC -288,681 Derivatives held for hedging purposes (other financial liabilities) Derivatives -12,996 -12,996 Derivatives -29,426 -29,426 Derivatives other (other financial liabilities) FVPL -7,003 -7,003 FVPL -254 -254 Measurement categories according to IFRS 9 Measurement categories according to IFRS 9 AC 5,421,177 AC 5,400,933 FVPL 72,650 72,650 FVPL 75,783 75,783 FLaC -3,990,799 -1,193,883 FLaC -3,983,291 -1,165,326 Derivatives -18,063 -18,063 Derivatives -43,060 -43,060 Total 1,484,965 -1,139,296 Total 1,450,365 -1,132,603 No special disclosure of the fair value of financial instruments is represented if the carrying amount is a reasonable approximation of fair value. Cash and cash equivalents, trade receivables and other receivables have for the most part short remaining terms. Accordingly, their carrying amounts on the balance sheet date approximate their fair value. The fair value of non-current financial assets corresponds to the present value of the related payments under consideration of the prevailing market parameters as far as market values were not available. Trade payables and other financial liabilities typically have short terms; their carrying amounts approximate the fair value. The fair value of bonds, bank borrowing and lease liabilities are measured at the present value of the payments associated with them and under consideration of the relevant applicable market parameters as far as market values were not available. The fair value of the financial liabilities would qualify as a Level 1 measurement at T€ 200,224 (2020: T€ 202,610) and as a Level 2 measurement at T€ 993,659 (2020: T€ 962,716). T€ 150 (2020: T€ 150) of cash and cash equivalents, T€ 843 (2020: T€ 2,577) of securities and T€ 1,844 (2020: T€ 1,815) of other financial instruments were pledged as collateral for liabilities. The non-recourse liabilities in the amount of T€ 652,740 are secured with the return flows from the respective project. The net income effects of the financial instruments according to valuation categories are as follows: 2021 2020 T€ AC FVPL FLaC Derivatives AC FVPL FLaC Derivatives Interest 14,938 0 -21,944 0 16,224 0 -29,364 0 Interest from concession arrangements 59,880 0 -17,280 -4,230 59,568 0 -19,900 -5,216 Result from investment 0 2,111 0 0 0 3,939 0 0 Result from securities 0 556 0 0 0 531 0 0 Impairments, credit losses and reversals of impairment losses 3,679 1,395 0 0 -30,381 4,565 0 0 Disposal profits/losses 0 2,538 0 0 0 49 0 0 Change in other derivatives 0 -10,663 0 0 0 3,790 0 0 Income from derecognition of liabilities and payments of derecognised receivables 37 0 7,298 0 35 0 6,375 0 Net income recognised in profit or loss 78,534 -4,063 -31,926 -4,230 45,446 12,874 -42,889 -5,216 Value changes recognised directly in equity 0 0 0 29,228 0 0 0 16,823 Net income 78,534 -4,063 -31,926 24,998 45,446 12,874 -42,889 11,607 Interest from financial assets and financial liabilities is reported in net interest income, with the exception of interest from concession arrangements. Concession arrangements are part of the operating business, which is why interest income from concession arrangements is recognised in revenue and interest expenses from concession arrangements are recognised in other operating expenses. Impairments, credit losses and reversals of impairment losses on financial assets and liabilities – excluding investments of less than 20 % as well as securities – are reported under other operating expenses or other operating income. Gains and losses on the disposal of financial receivables and liabilities are also recognised in other operating income or other operating expenses. Income from the derecognition of liabilities as well as payments received on derecognised receivables are reported under other operating income. Income, expenses, impairments and reversals of impairments as well as disposal gains and losses on investments of less than 20 % are recognised in net income from investments. Income, expenses, impairments and reversals of impairments as well as disposal gains and losses on securities are recognised in net interest income. Changes in other derivatives measured through profit or loss are recognised in net interest income. Financial instruments measured at fair value The fair values as at 31 December 2021 for financial instruments measured at fair value in the balance sheet were determined as follows: T€ Level 1 Level 2 Level 3 Total Assets Investments below 20 % (other investments) 48,511 48,511 Securities 28,122 28,122 Cash and cash equivalents (securities) 2,823 2,823 Derivatives held for hedging purposes -5,067 -5,067 Derivatives other 197 197 Total 30,945 -4,870 48,511 74,586 Liabilities Derivatives held for hedging purposes -12,996 -12,996 Derivatives other -7,003 -7,003 Total 0 -19,999 0 -19,999 The fair values as at 31 December 2020 for financial instruments measured at fair value in the balance sheet were determined as follows: T€ Level 1 Level 2 Level 3 Total Assets Investments below 20 % (other investments) 41,278 41,278 Securities 27,546 27,546 Cash and cash equivalents (securities) 3,102 3,102 Derivatives held for hedging purposes -13,634 -13,634 Derivatives other 4,111 4,111 Total 30,648 -9,523 41,278 62,403 Liabilities Derivatives held for hedging purposes -29,426 -29,426 Derivatives other -254 -254 Total 0 -29,680 0 -29,680 STRABAG records regroupings between the different fair-value-hierarchy levels at the end of the reporting period in which the regrouping took place. During the financial years 2021 and 2020, there were no transfers between the levels. Financial instruments in Level 1 The fair value is determined on the basis of quoted prices in an active market. An active market exists if the prices are regularly established and readily available to the market participants. The quoted market price for the financial instruments presented in Level 1 corresponds to the bid price on 31 December 2021. Financial instruments in Level 2 These financial instruments are not traded in an active market. They involve exclusively derivatives held for hedging purposes and other derivatives. The fair value is determined using methods of measurement on the basis of observable market data. Specifically, measurement is made using interest yield and currency curves in proportion to the term of the derivative. Financial instruments in Level 3 These financial instruments involve exclusively a large number of smaller investments below 20 % that are not traded on an active market. The fair value is determined on the basis of simplified company valuations. The carrying amount of investments below 20 % developed as follows: T€ 2021 2020 Carrying amount as at 1.1. 41,278 32,540 Currency translation/Transfers 260 26 Change in scope of consolidation 0 6,716 Additions 7,760 2,811 Disposals -2,082 -4,471 Depreciation -100 0 Changes in fair value 1,395 3,656 Carrying amount as at 31.12. 48,511 41,278 Due to the broad diversification of the investments, no major fluctuations in value are expected in the future. The derivatives are comprised as follows: T€ 31.12.2021 31.12.2020 Bank Assets Liabilities Total Assets Liabilities Total Deutsche Bank AG 0 0 0 1,434 0 1,434 Republic of Hungary -7,681 0 -7,681 -15,068 0 -15,068 National Bank of Canada 1,254 0 1,254 0 0 0 SMBC Capital Markets 1,360 0 1,360 0 0 0 KfW IPEX-Bank 0 -3,023 -3,023 0 -6,545 -6,545 Norddeutsche Landesbank 0 -3,447 -3,447 0 -7,513 -7,513 SEB AG 0 -3,229 -3,229 0 -7,693 -7,693 Société Générale 0 -3,297 -3,297 0 -7,675 -7,675 Total derivatives held for hedging purposes -5,067 -12,996 -18,063 -13,634 -29,426 -43,060 Bayerische Landesbank 0 -684 -684 884 0 884 Crédit Agricole Corp. & Investment 0 -2,059 -2,059 16 0 16 Landesbank Baden-Württemberg 0 0 0 271 0 271 Raiffeisenbank International AG1 197 -2,879 -2,682 1,086 -254 832 UniCredit Bank Austria AG 0 -1,381 -1,381 1,854 0 1,854 Total other derivatives 197 -7,003 -6,806 4,111 -254 3,857 Total -4,870 -19,999 -24,869 -9,523 -29,680 -39,203 1 Can be set off in the event of insolvency No hedge accounting is used for other derivatives, but they are part of economic hedging relationships. Principles of risk management The STRABAG Group is subject to credit, market and liquidity risks related to its financial assets, financial liabilities and planned transactions. The goal of financial risk management is to minimise these risks through ongoing financially oriented activities. The basics of the financial policy are set by the Management Board and monitored by the Supervisory Board. The implementation of the financial policy and responsibility for the risk management are the domain of the group treasury. Certain transactions require prior approval by the Management Board, which is regularly informed as to the scope and amount of the current risk exposure. The group assesses concentrations of risk with regard to interest rate risk, currency risk and credit risk as low because customers are located in different countries, belong to different industries and operate in largely independent markets. The group’s business activities are subject to market price risks that are customary in the industry. These risks are not hedged through derivatives or financial instruments but through other hedging activities including but not limited to contractual agreements. Further explanations on risk management and financial instruments can be found in the group management report from 31 December 2021. Interest rate risk The financial instruments bear mainly variable interest rates on the assets side, on the liabilities side there are both variable and fixed interest obligations. The risk of financial instruments bearing variable interest rates consists of increasing interest charges and sinking interest revenue resulting from an unfavourable change in market interest rates. Fixed interest obligations mainly result from the bonds issued by STRABAG SE amounting to a total of T€ 200,000 (2020: T€ 200,000). With regard to the possible impact from the IBOR reform, reference is made to the explanations contained in the section “Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 – Interest Rate Benchmark Reform (IBOR Reform) Phase 2”. The amount of bank deposits and bank borrowings according to currency – giving the average interest rate at balance sheet date – is represented as follows: Bank deposits Carrying amount 31.12.2021 Weighted average interest rate 2021 Currency T€ % EUR 2,026,178 -0.40 PLN 187,767 0.74 HUF 197,137 0.97 CZK 179,675 0.10 Other 368,333 0.52 Total 2,959,090 -0.09 Carrying amount 31.12.2020 Weighted average interest rate 2020 Currency T€ % EUR 1,974,032 -0.08 PLN 294,039 0.14 HUF 127,872 0.01 CZK 152,044 0.07 Other 304,398 0.56 Total 2,852,385 0.02 Bank borrowings Carrying amount 31.12.2021 Weighted average interest rate 2021 Currency T€ % EUR 561,816 1.07 CAD 125,948 1.40 Total 687,764 1.13 Carrying amount 31.12.2020 Weighted average interest rate 2020 Currency T€ % EUR 651,741 1.03 Total 651,741 1.03 Had the interest rate level at 31 December 2021 been higher by 100 basis points, then the EBT would have been higher by T€ 24,165 (2020: T€ 23,304) and the equity at 31 December 2021 would have been higher by T€ 53,584 (2020: T€ 58,752). Had the interest rate level been lower by 100 basis points, this would have meant a correspondingly lower equity and EBT. The calculation is made based on the level of interest-bearing financial assets and liabilities as at 31 December. Tax effects from interest rate changes were not considered. Currency risk Due to the decentralised structure of the group, characterised by local companies in the respective countries, mainly closed currency positions appear in the balance sheet. Loan financing and investments were predominantly made by the group companies in the respective country’s local currency. Receivables and liabilities from business activities mainly offset each other in the same currency. The internal financing of companies within the group using different functional currencies resulted in an earnings-relevant currency risk. To limit this risk derivative financial instruments are transacted. The market values of these hedging transactions in the amount of T€ -6,806 (2020: T€ 3,857) are recognised in profit or loss in the income statement. The hedging transactions are reported under other financial assets or other financial liabilities. Development of the important currencies in the group: Currency Exchange rate 31.12.2021: 1 € = Average rate 2021: 1 € = Exchange rate 31.12.2020: 1 € = Average rate 2020: 1 € = HUF 369.1900 358.6083 363.8900 354.0517 CZK 24.8580 25.6486 26.2420 26.4976 PLN 4.5969 4.5720 4.5597 4.4680 CHF 1.0331 1.0799 1.0802 1.0709 CLP 964.4400 903.2125 870.6600 906.4485 USD 1.1326 1.1816 1.2271 1.1195 GBP 0.8403 0.8584 0.8990 0.8894 The following table shows the hypothetical changes in EBT and equity if the euro in the year 2021 had been revalued or devalued by 10 % in relation to another currency: T€ Revaluation euro of 10 % Devaluation euro of 10 % Currency change in EBT change in equity change in EBT change in equity PLN 1,642 3,642 -1,642 -3,642 HUF -3,044 11,854 3,044 -11,854 CHF -2,396 -10,139 2,396 10,139 CZK 1,057 14,057 -1,057 -14,057 USD -1,786 -1,786 1,786 1,786 Other -16,626 -16,626 16,626 16,626 The following table shows the hypothetical changes in EBT and equity if the euro in the year 2020 had been revalued or devalued by 10 % in relation to another currency: T€ Revaluation euro of 10 % Devaluation euro of 10 % Currency change in EBT change in equity change in EBT change in equity PLN 1,784 3,784 -1,784 -3,784 HUF -6,018 10,622 6,018 -10,622 CHF -2,245 -9,615 2,245 9,615 CZK 2,419 11,919 -2,419 -11,919 USD 9,483 9,483 -9,483 -9,483 Other -11,770 -11,770 11,770 11,770 The calculation is based on original and derivative foreign currency holdings in non-functional currency as at 31 December as well as underlying transactions for the next twelve months. The effect on tax resulting from changes in currency exchange rates was not taken into consideration. Cash flow hedges Currency risks in the group result when the currency of the order differs from the functional currency of the company. The planned proceeds are received in the currency of the order (for example, euro or US dollar), while a substantial part of the associated costs is made in the local currency. The group uses foreign exchange forwards to hedge against this risk. These contracts are classified as hedges against future payments and are presented as cash flow hedges. The group designates exclusively the spot element of foreign exchange forwards and swaps to hedge its currency risk and applies a hedge ratio of 1:1 or 100 %. The spot element corresponds to that part of the fair value that is determined exclusively on the basis of the spot exchange rate. The interest element (forward element), on the other hand, is determined from the difference between the total fair value and the cash element. The forward element is excluded from designation and recognised as cost of hedging. The key features of the foreign exchange forward or swap correspond to the hedged item. To hedge against variable interest rate obligations, interest rate swaps are used especially with financing obligations from concession arrangements. This serves to hedge the variability of future cash flows from variable interest rate payments. Interest rate swaps are presented as cash flow hedges. The group determines the existence of an economic relationship between the hedging instrument and the hedged item, for the purpose of assessing the effectiveness of the hedge, based on the interest rates benchmarks, terms, repricing dates and maturities of the nominal amounts. The amounts of the hedged items as at 31 December 2021 are as follows: T€ Hedged item Value changes in the basis for effectiveness measurement Hedging reserves Cost-of-hedging reserves Interest rate risk Interest AKA -4,245 -10,505 0 Interest PANSUEVIA -13,218 -20,525 0 Interest Scarborough -2,614 2,614 0 Total -20,077 -28,416 0 All hedge relationships are constructed based on EURIBOR and are therefore not affected by the interest rate benchmark reform. The amounts of the hedged items as at 31 December 2020 are as follows: T€ Hedged item Value changes in the basis for effectiveness measurement Hedging reserves Cost-of-hedging reserves Exchange risk USD sale -3,725 1,537 -103 Interest rate risk Interest AKA -3,012 -21,693 0 Interest PANSUEVIA 15,183 -37,385 0 Total 8,446 -57,541 -103 The hedging instruments as at 31 December 2021 were comprised as follows: T€ Hedge Nominal value Carrying amount Balance sheet item where the hedge is presented OCI change in value of the hedge Cost of hedging recognised in OCI Recycling amount from hedging reserves Recycling amount from cost-of-hedging reserves P&L item where the recycling value is recognised Interest rate risk Interest rate swap AKA 161,656 -7,681 receivables from concession arrangements 4,245 0 6,943 0 other operating expenses Interest rate swaps PANSUEVIA 244,959 -12,996 other financial liabilities 13,218 0 3,642 0 other operating expenses Interest rate swaps Scarborough 125,948 2,614 other financial assets 2,614 0 0 0 interest expense Total 532,563 -18,063 20,077 0 10,585 0 Possible sources of ineffectiveness in these hedging relationships include: the effect of counterparty and own credit risk on the fair value of derivatives, which is not reflected in the change in the fair value of the hedged cash flows, and is attributable to interest rates changes differences in the repricing dates of the hedging instrument and the underlying transactions changes in the expected value of the cash flows from the underlying transaction being hedged and from the hedging instrument changes to the reference rates due to the interest rate benchmark reform In the 2021 financial year, no amounts from value changes resulting from ineffectiveness were recognised in the income statement. The hedging instruments as of 31 December 2020 were made up as follows: T€ Hedge Nominal value Carrying amount Balance sheet item where the hedge is presented OCI change in value of the hedge Cost of hedging recognised in OCI Recycling amount from hedging reserves Recycling amount from cost-of-hedging reserves P&L item where the recycling value is recognised Exchange risk USD sale 39,932 1,434 other financial assets 3,726 -209 13,829 -215 revenue Interest rate risk Interest rate swap AKA 221,785 -15,068 receivables from concession arrangements 3,012 0 8,452 0 other operating expenses Interest rate swaps PANSUEVIA 251,851 -29,426 other financial liabilities -15,182 0 3,410 0 other operating expenses Total 513,568 -43,060 -8,444 -209 25,691 -215 In the 2020 financial year, no amounts from value changes resulting from ineffectiveness were recognised in the income statement. On 31 December 2021, the group held the following instruments for the purpose of hedging interest rate fluctuation: Maturity 1–6 months 6–12 months > 1 year Interest rate swap Nominal amount in TEUR 35,974 35,054 461,535 Average fixed interest rate (%) 2.60 2.58 1.39 On 31 December 2020, the group held the following instruments for the purpose of hedging exchange rate and interest rate fluctuation: Maturity 1–6 months 6–12 months > 1 year Foreign exchange forward Nominal amount in TUSD 30,000 19,000 Average USD-CLP forward rate 689.40 811.72 Interest rate swap Nominal amount in TEUR 33,988 33,032 406,616 Average fixed interest rate (%) 2.61 2.60 1.66 The reconciliation of the equity components as at 31 December 2021 is as follows: T€ Hedging reserves Cost-of-hedging reserves As at 1.1. -74,572 -75 Fair value changes Currency risk 0 0 Interest rate risk 20,077 0 Recycling Currency risk -1,537 103 Interest rate risk 10,585 0 Deferred taxes Currency risk 415 -28 Interest rate risk -6,897 0 Change in hedging reserves from equity-accounted investments 4,720 0 As at 31.12. -47,209 0 The reconciliation of the equity components as at 31 December 2020 is as follows: T€ Hedging reserves Cost-of-hedging reserves As at 1.1. -87,083 234 Fair value changes Currency risk 3,726 -209 Interest rate risk -12,170 0 Recycling Currency risk 13,829 -215 Interest rate risk 11,862 0 Deferred taxes Currency risk -4,740 115 Interest rate risk 2,597 0 Change in hedging reserves from equity-accounted investments -2,593 0 As at 31.12. -74,572 -75 Credit risk Credit risks arise when contractual parties do not meet their payment obligations by the date of settlement. Such risks exist with regard to payments of receivables from the operating business as well as the contractual cash flows from debt instruments in the category of measured at amortised cost (AC). To manage the credit risk from the operating business, STRABAG established a credit risk management system in line with the market rates and customers. Because of the Covid-19 pandemic in particular, loans and receivables from private clients are being monitored more closely than in the past. The maximum credit risk of trade receivables, contract assets and other financial assets corresponds to the carrying amounts presented in the balance sheet. The risk for receivables from clients can be rated as low due to the wide dispersion, a constant creditworthiness check and the presence of the public sector as an important client. The risk of default for other primary financial instruments shown on the assets side can also be regarded as low, as the contract partners are mainly financial institutions with the highest level of creditworthiness and/or the risk of default has been significantly reduced as a result of assumed liabilities of third parties. STRABAG SE holds no non-financial assets as security collateral. Financial collateral is only of minor importance, as the large number of public-sector customers presents hardly any payment risk. The performance of work for private customers is largely secured by payments of advance consideration. Impairments on trade receivables and on contract assets are determined using the simplified approach. The impairments are determined taking into consideration the country-specific risks and the creditworthiness of the customers. The higher probabilities of default for private clients due to the Covid-19 pandemic that were applied in the previous year were retained unchanged for the 2021 financial year. Impairments, considered individually, are also made on financial assets if the carrying amount of the financial asset is higher than the present value of the future cash flows. This can be triggered by financial difficulties, insolvency of the client, breach of contract or significant default of payment. These impairments are composed of many individual items of which none, seen alone, is significant. The risk provision as at 31 December 2021 for trade receivables and for contract assets developed as follows during the financial year: T€ Trade receivables Contract assets Gross carrying amount as at 31.12.2021 1,492,787 1,354,874 Lifetime ECL as at 1.1. 9,513 7,568 Exchange differences/change in scope of consolidation -38 -16 Change due to volume change -420 96 Change due to rating change -1,911 -1,015 Lifetime ECL as at 31.12. 7,144 6,633 Impairment as at 1.1. 119,922 0 Exchange differences/change in scope of consolidation -337 0 Allocation/utilisation -20,757 0 Impairment as at 31.12. 98,828 0 Net carrying amount as at 31.12.2021 1,386,815 1,348,241 In addition, impairments on other financial assets amounting to T€ 3,449 (2020: T€ 5,091) exist as at 31 December 2021. The risk provision as at 31 December 2020 for trade receivables and for contract assets developed as follows during the financial year: T€ Trade receivables Contract assets Gross carrying amount as at 31.12.2020 1,588,183 1,078,897 Lifetime ECL as at 1.1. 4,747 5,025 Exchange differences/change in scope of consolidation -63 -789 Change due to volume change -399 -186 Change due to rating change 5,228 3,518 Lifetime ECL as at 31.12. 9,513 7,568 Impairment as at 1.1. 110,973 0 Exchange differences/change in scope of consolidation -2,522 0 Allocation/utilisation 11,471 0 Impairment as at 31.12. 119,922 0 Net carrying amount as at 31.12.2020 1,458,748 1,071,329 The following shows the gross carrying amounts of the financial assets by risk class for which the expected losses were recognised over the entire remaining term. The risk classes were determined according to the probabilities of default depending on country risk and creditworthiness of the debtors. Below 0.55 % is assumed to be low risk, between 0.55 % and 1.2 % medium risk and above 1.2 % high risk. The gross carrying amounts for the 2021 financial year are as follows: T€ Trade receivables Contract assets Low risk 718,310 772,906 Medium risk 752,735 567,851 High risk 21,742 14,117 Gross carrying amount as at 31.12.2021 1,492,787 1,354,874 The gross carrying amounts for the 2020 financial year are as follows: T€ Trade receivables Contract assets Low risk 662,674 415,439 Medium risk 876,588 596,636 High risk 48,921 66,822 Gross carrying amount as at 31.12.2020 1,588,183 1,078,897 Liquidity risk Liquidity for the STRABAG SE Group means not only solvency in the strict sense but also the availability of the necessary financial margin for mainstay business through sufficient aval lines. To guarantee financial flexibility, liquidity reserves are kept in the form of cash and credit lines for cash and aval loans. The STRABAG SE Group keeps bilateral credit lines with banks and syndicated cash and aval credit lines in the amount of € 0.4 billion (2020: € 0.4 billion) respectively € 2.0 billion (2020: € 2.0 billion). The overall line for cash and aval loan amounts to € 8.2 billion (2020: € 7.9 billion). The syndicated surety credit line contains covenants which were fulfilled at the balance sheet date. An increased liquidity risk due to the Covid-19 pandemic could not be identified in the 2021 and 2020 financial years. The medium- and long-term liquidity needs have so far also been covered by the issue of corporate bonds. In the years 2013 and 2015, STRABAG issued bonds of € 200 million each, with a term to maturity of seven years each. In the 2020 financial year, the € 200 million bond issued in 2013 was repaid in full. As per 31 December 2021, STRABAG SE had a bond with a total volume of € 200 million on the market. The following payment obligations arise from the financial liabilities (interest payments based on interest rate as at 31 December and redemption) for the subsequent years: Payment obligations as at 31 December 2021 The payment obligations from financial liabilities as at 31 December 2021 are comprised as follows: Carrying amount Cash flows Cash flows Cash flows T€ 31.12.2021 2022 2023–2026 after 2026 Bonds 200,000 203,250 0 0 Bank borrowings 687,764 234,136 179,202 323,574 Lease liabilities 305,851 74,430 217,957 175,739 Financial liabilities 1,193,615 511,816 397,159 499,313 The trade payables and the other liabilities without derivatives essentially lead to cash outflows in line with the maturity at the amount of the carrying amounts. The payment obligations from leasing liabilities amount to T€ 66,005 for 2023, T€ 56,433 for 2024, T€ 51,914 for 2025 and T€ 43,605 for 2026. The payment obligations from derivatives as at 31 December 2021 are comprised as follows: Carrying amount Cash flows Cash flows Cash flows T€ 31.12.2021 2022 2023–2026 after 2026 Derivatives held for hedging purposes 18,063 8,345 6,058 3,366 Derivatives other 6,806 -197 7,003 0 Derivatives 24,869 8,148 13,061 3,366 Payment obligations as at 31 December 2020 The payment obligations from financial liabilities as at 31 December 2020 are comprised as follows: Carrying amount Cash flows Cash flows Cash flows T€ 31.12.2020 2021 2022–2025 after 2025 Bonds 200,000 3,250 203,250 0 Bank borrowings 651,741 118,498 249,400 352,629 Lease liabilities 304,265 63,126 216,637 183,698 Financial liabilities 1,156,006 184,874 669,287 536,327 The payment obligations from leasing liabilities amount to T€ 66,402 for 2022, T€ 56,704 for 2023, T€ 51,603 for 2024 and T€ 41,928 for 2025. The payment obligations from derivatives as at 31 December 2020 are comprised as follows: Carrying amount Cash flows Cash flows Cash flows T€ 31.12.2020 2021 2022–2025 after 2025 Derivatives held for hedging purposes 43,060 9,161 20,846 13,486 Derivatives other -3,857 -142 -3,715 0 Derivatives 39,203 9,019 17,131 13,486 In addition, financial guarantees in the amount of T€ 71,036 (2020: T€ 42,699) are issued. Theoretically these guarantees can be used at any time, leading to a short-term outflow of liquidity. SEGMENT REPORT (35)SEGMENT reporting The rules of IFRS 8 Operating Segments apply to the segment reporting. IFRS 8 prescribes defining the segments and reporting the earnings on the basis of the internal reporting (management approach). Segment assets are not disclosed as these do not form part of the regular internal reporting. The internal reporting in the STRABAG Group is based on Management Board areas, which also represent the segments. The settlement between the single segments is made at arm’s length prices. The segment North + West bundles the construction activities in Germany, Poland, Benelux and Scandinavia as well as the ground engineering activities. The segment South + East comprises the construction activities in Austria, Switzerland, Hungary, Czech Republic, Slovakia, Adriatic, Rest of Europe and Russia and the environmental engineering business. The segment International + Special Divisions includes the international construction activities, tunnelling, services, real estate development and infrastructure development as well as the construction materials business. In addition, there are the Central Divisions and Central Staff Divisions, which handle services in the areas of accounting, group financing, technical development, machine management, quality management, logistics, legal affairs, contract management etc. These services are included in the segment Other. The newly established entities for digitalisation and innovation established on 1 January 2020 are also assigned to the segment Other. Segment reporting for the financial year 2021 T€ North + West South + East International + Special Divisions Other Reconciliation to IFRS financial statements Group Output volume 7,902,463 4,930,380 3,161,458 134,618 16,128,919 Revenue 7,317,947 4,924,600 3,039,141 16,848 0 15,298,536 Inter-segment revenue 160,580 76,764 320,310 935,119 EBIT 443,027 194,925 272,075 689 -14,608 896,108 thereof share of profit or loss of equity-accounted investments 44,555 16,777 30,790 -12 0 92,110 Interest and similar income 0 0 0 26,962 0 26,962 Interest expense and similar charges 0 0 0 -39,532 0 -39,532 EBT 443,027 194,925 272,075 -11,881 -14,608 883,538 Investments in property, plant and equipment, and in intangible assets 0 0 0 532,042 0 532,042 Reversal of impairment losses, depreciation and amortisation 5,667 0 19,061 524,886 0 549,614 thereof extraordinary reversal of impairment losses, depreciation and amortisation 5,667 0 0 2,041 0 7,708 Segment reporting for the financial year 2020 T€ North + West South + East International + Special Divisions Other Reconciliation to IFRS financial statements Group Output volume 7,862,645 4,632,603 2,811,859 139,501 15,446,608 Revenue 7,461,874 4,602,831 2,670,209 14,830 0 14,749,744 Inter-segment revenue 205,318 44,481 298,519 915,897 EBIT 406,425 176,349 54,040 904 -7,066 630,652 thereof share of profit or loss of equity-accounted investments 31,131 6,925 28,078 80 0 66,214 Interest and similar income 0 0 0 27,890 0 27,890 Interest expense and similar charges 0 0 0 -48,492 0 -48,492 EBT 406,425 176,349 54,040 -19,698 -7,066 610,050 Investments in property, plant and equipment, and in intangible assets 0 0 0 544,125 0 544,125 Reversal of impairment losses, depreciation and amortisation 2,816 0 20,167 520,818 0 543,801 thereof extraordinary reversal of impairment losses, depreciation and amortisation 2,816 0 1,700 1,413 0 5,929 Reconciliation of the sum of the segment earnings to EBT according to IFRS financial statements Income and expense in the internal reporting are essentially shown in accordance with IFRS. An exception is income taxes, including those applicable to deferred tax, which are not considered in the internal reporting. The basis for the internal reporting is formed by all subsidiaries. In the IFRS financial statements, earnings from companies which were not fully consolidated or reported using the equity method are only recognised in conformity with dividends, transfer of earnings and/or depreciation and amortisation. For this reason, the internal reporting does not conform with EBIT and EBT in the consolidated financial statements in terms of the investment result. Other minor differences result from entries in other consolidations. Reconciliation of the internal reporting to IFRS financial statements is allocated as follows: T€ 2021 2020 Net income from investments -15,553 -5,497 Other consolidations 945 -1,569 Total -14,608 -7,066 Breakdown of revenue by geographic region T€ 2021 2020 Germany 6,913,192 6,974,533 Austria 2,629,785 2,198,663 Rest of Europe 5,037,786 4,889,929 Rest of world 717,773 686,619 Revenue 15,298,536 14,749,744 OTHER NOTES (36)notes on related parties The core shareholders of STRABAG SE are the Haselsteiner Group, as well as the Raiffeisen-Holding NÖ-Wien Group, the UNIQA Group and MKAO “RASPERIA TRADING LIMITED”, controlled by Russian businessman Oleg Deripaska. A syndicate agreement exists between the core shareholders of STRABAG SE. This agreement was terminated by Haselsteiner Familien-Privatstiftung on 15 March 2022 and will expire at the end of 2022. Arm’s-length finance and insurance transactions exist with the Raiffeisen Holding NÖ-Wien Group and the UNIQA Group. The receivables on 31 December 2021 to the Raiffeisen Group relating from current accounts and investments amounted to T€ 650,212 (2020: T€ 714,568), the payables on 31 December 2021 to the Raiffeisen Group relating to financing and current accounts amounted to T€ 25,614 (2020: T€ 32,673). The interest income in the 2021 financial year amounted to T€ 1,731 (2020: T€ 1,986), the interest expense amounted to T€ 741 (2020: T€ 2,123). Premiums for insurance contracts with the UNIQA Group were recognised as an expense in the amount of T€ 650 (2020: T€ 927). Haselsteiner Group The Haselsteiner Group holds 5.1 % of each of the following: STRABAG Real Estate GmbH, Cologne; five real estate companies of the Züblin subgroup; and Züblin Projektentwicklung GmbH. The income from real estate companies attributable to the Haselsteiner Group is included in net interest income at T€ -71 (2020: T€ -363). The earnings attributable to the Haselsteiner Group for the 100 % subsidiary partnerships of STRABAG Real Estate GmbH, Cologne, are included in the net interest income in the amount of T€ 0 (2020: T€ 364). For the remaining companies, the amount recognised in income attributable to non-controlling interests in 2021 amounts to T€ 3,291 (2020: T€ 1,589). In the 2021 financial year, the dividends from the above-mentioned companies amounted to T€ 391 (2020: T€ 7,776). The business relations between STRABAG SE and the companies of the Haselsteiner Group including joint investments during the financial year are presented below. T€ 2021 2020 Work and services performed 19,907 10,063 Work and services received 4,917 6,018 Receivables as at 31.12. 21,218 12,539 Liabilities as at 31.12. 771 899 Basic Element The Basic Element Group, a group with numerous industrial holdings, among other things in the area of construction, construction materials and infrastructure, is controlled by Russian businessman Oleg Deripaska. In the financial year 2021, as in the previous year, there were no business relations with the companies of the Basic Element Group. As of 31 December 2021, as in the previous year, no receivables or liabilities existed vis-à-vis the Basic Element Group. IDAG IDAG Immobilienbeteiligung u. -Development GmbH is entirely held by private foundations whose beneficiaries are the Haselsteiner Group and the Raiffeisen-Holding NÖ-Wien Group. It is the business purpose of IDAG Immobilienbeteiligung u. -Development GmbH to develop property and to participate in property projects. STRABAG’s headquarters in Vienna and office buildings in Graz are held in the real estate portfolio of subsidiaries of IDAG Immobilienbeteiligung u. -Development GmbH. The buildings are let to the STRABAG Group at the usual market conditions. Rental costs arising from both buildings in the 2021 financial year amounted to T€ 8,559 (2020: T€ 8,467). Under IFRS 16, these leases are recognised as right-of-use assets and lease liabilities. The consolidated financial statements as of 31 December 2021 show right-of-use assets of T€ 59,326 (2020: T€ 66,647) and lease liabilities of T€ 32,487 (2020: T€ 38,721). The lease liabilities are presented less the rental deposits of T€ 28,552 (2020: T€ 29,199). Other services in the amount of T€ 123 (2020: T€ 69) were obtained from the IDAG Group. Furthermore, revenues of T€ 784 (2020: T€ 1,426) were made with the IDAG Group in the 2021 financial year. Investments in equity-accounted investments Lafarge Cement CE Holding GmbH bundles the cement activities of Lafarge, a market leader in construction materials manufacturing, and STRABAG in the countries of Central Europe. The joint activities aim at maintaining a commensurate cement supply in the group’s core countries. In 2021, STRABAG procured cement services worth T€ 28,634 (2020: T€ 29,424) from Lafarge. At the balance sheet date, there were liabilities to Lafarge Cement CE Holding GmbH Group in the amount of T€ 437 (2020: T€ 887). The business transactions with the other equity-accounted investments can be presented as follows: T€ 2021 2020 Work and services performed 96,989 116,131 Work and services received 58,046 61,817 Receivables as at 31.12. 28,327 31,287 Liabilities as at 31.12. 13,679 16,047 Financing receivables as at 31.12. 114,212 100,468 For information about consortia we refer to item (16) Notes on consortia. Concerning business transactions with the Management Board members and employees of the first management level (man-agement in key positions) and with their family members and companies which are controlled by the management in key positions or decisively influenced by them in the year under report, services worth T€ 261 (2020: T€ 992) were provided and services worth T€ 50 (2020: T€ 47) were procured. At the balance sheet dates, there were receivables in the amount of T€ 836 (2020: T€ 851) and liabilities in the amount of T€ 0 (2020: T€ 0) out of these business relations. The total remuneration including any severance and pension payments, as well as other long-term payments for employees of the first management level amounted to T€ 22,163 (2020: T€ 17,883) in the year under report. Of this amount, T€ 21,932 (2020: T€ 17,703) is attributable to the current remuneration and T€ 231 (2020: T€ 180) to severance and pension payments. (37)notes on the management and supervisory boards Management Board Dr. Thomas B i r t e l (CEO) Mag. Christian H a r d e r Klemens H a s e l s t e i n e r Dipl.-Ing. Dr. Peter K r a m m e r Dipl.-Ing. Siegfried W a n k e r Dipl.-Ing. (FH) Alfred W a t z l Supervisory Board Dr. Alfred G u s e n b a u e r (Chairman) Mag. Erwin H a m e s e d e r (Vice Chairman) Dr. Andreas B r a n d s t e t t e r Thomas B u l l Mag. Kerstin G e l b m a n n Dr. Hermann M e l n i k o v (since 18 June 2021) Ksenia M e l n i k o v a (until 18 June 2021) Dipl.-Ing. Andreas B a t k e (works council) Miroslav C e r v e n y (works council) Magdolna P. G y u l a i n é (works council) Georg H i n t e r s c h u s t e r (works council) Wolfgang K r e i s (works council) The total salaries of the Management Board members in the financial year amount to T€ 9,815 (2020: T€ 9,817). The severance payments for Management Board members amount to T€ 96 (2020: T€ 85). In the financial year, one member of the Management Board received an annual pension benefit of T€ 76 (2020: T€ 76) from his former employment with a group company. No pension benefits are paid to other members of the Management Board. The remunerations for the Supervisory Board members in 2021 amounted to T€ 270 (2020: T€ 270). Neither the Management Board members nor the Supervisory Board members of STRABAG SE received advances or loans. (38)expenses for the auditor The expenses for the auditor, KPMG Austria GmbH, incurred in the financial year amount to T€ 1,465 (2020: T€ 1,451) of which T€ 1,375 (2020: T€ 1,324) were for the audit of the consolidated financial statements (including the audit of separate financial statements of group companies) and T€ 90 (2020: T€ 127) for other services. (39)events after the balance sheet date On 24 February 2022, Russia attacked Ukraine. STRABAG condemns this war of aggression by Russia on Ukraine in the strongest possible terms and has initiated and is financing extensive aid measures for Ukrainian refugees, especially in the most affected group countries of Poland, the Czech Republic and Moldova. STRABAG has no business activities in Ukraine itself. As far as STRABAG’s business in Russia is concerned – of only subordinate importance with 0.3 % of the group’s output volume – the Management Board has decided to wind up the activities in that country. Indirect repercussions – including for construction materials – can already be observed on the global markets, with price increases currently even more dynamic than in the previous year. STRABAG is closely monitoring all relevant developments. An assessment of these impacts is currently not possible. Oleg Deripaska indirectly holds less than 50 % of the STRABAG SE shareholder MKAO “Rasperia Trading Limited” (share: 27.8 %), although he still controls Rasperia. Sanctions were imposed on numerous individuals, including Oleg Deripaska, by the United Kingdom, Canada and Australia in response to the Russian invasion, in addition to the sanctions imposed on him by the United States in 2018. No sanctions have been imposed on STRABAG and doing business with STRABAG does not constitute a violation of the sanctions. STRABAG is complying with all applicable legal requirements and sanctions regulations. On 15 March 2022, STRABAG shareholder Haselsteiner Familien-Privatstiftung informed the company that it had terminated the shareholder syndicate agreement in place with the UNIQA Group, the Raiffeisen Group and Rasperia. As a result, the agreement expires at the end of 2022, thereby ending joint control of the company. To avert any potential harm to the company, the Management Board of STRABAG SE subsequently decided to withhold dividend payments to Rasperia as long as any risk of sanctions cannot be excluded. (40)date of authorisation for issue In Austrian companies organised as corporations limited by shares, the consolidated financial statements prepared by the Management Board are approved by the Supervisory Board. The STRABAG SE Supervisory Board meeting for the approval of the consolidated financial statements for the year ended 31 December 2021 will take place on 25 April 2022. Villach, 7 April 2022 The Management Board Dr. Thomas Birtel m.p. CEO Responsibility Central Staff Divisions and Central Divisions BMTI, CML as well as TPA Mag. Christian Harder m.p. CFO Responsibility Central Division BRVZ Klemens Haselsteiner m.p. Responsibility Central Divisions STRABAG Innovation & Digitalisation as well as Zentrale Technik, Subdivision NN Russia Dipl.-Ing. Dr. Peter Krammer m.p. Responsibility Segment South + East (except Subdivision NN Russia) Dipl.-Ing. Siegfried Wanker m.p. Responsibility Segment International + Special Divisions Dipl.-Ing. (FH) Alfred Watzl m.p. Responsibility Segment North + West
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