Notes on the items of the consolidated income statement

Revenue is represented as follows:

Revenue 2023

Revenue 2022

Effective 1 January 2023, the construction activities in Switzerland were moved from South + East to the North + West segment, the construction activities in Poland were moved from North + West to the South + East segment and the building materials activities were moved from International + Special Divisions to the South + East segment. The previous year’s figures have been restated with regard to segment allocation for better comparability.

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€ 63,482 (2022: T€ 58,099).

The interest income is calculated using the effective interest method.

All values presented under revenue involve revenue from contracts with customers.

In the 2023 financial year, revenue from approved claims in the amount of T€ 240,242 (2022: T€ 211,698) 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 construction 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 an usual concept in the construction industry and at the STRABAG SE Group comprises the value of the produced goods and services. The total output volume of the Group also includes the proportional output of consortia and associates and is presented in detail in the management report.

Other operating income includes insurance compensation and indemnification in the amount of T€ 66,749 (2022: T€ 49,788), exchange rate gains from currency fluctuations in the amount of T€ 16,452 (2022: T€ 15,019) as well as gains from the disposal of fixed assets without financial assets in the amount of T€ 59,898 (2022: T€ 57,200).

Services used are mainly attributed to services of subcontractors and professional craftsmen as well as planning services, short-term rentals for equipment and third-party repairs. The change of provisions for onerous contracts arising from construction contracts is included in this item.

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€ 17,117 (2022: T€ 16,888).

The average number of employees with the proportional inclusion of all participation companies is as follows:

Other operating expense of T€ 1,086,601 (2022: T€ 1,013,283) mainly includes 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 expense from concession projects and losses on the disposal of assets (excluding financial assets). Other taxes amounting to T€ 71,545 (2022: T€ 68,941) are included.

Other operating expense includes losses from exchange rate differences from currency fluctuations in the amount of T€ 16,832 (2022: T€ 11,368).

The other operating expense in the financial year still includes impairments, losses and reversals of impairment losses on receivables in the amount of T€ 100,882 (2022: T€ 71,137). The changes in the impairments for expected credit losses under IFRS 9 in the financial year in the amount of T€ 486 as income (2022: expense T€ 2,157) are included in other operating expense.

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.

Amortisation and depreciation, including the amortisation of rights from concession arrangements, amounted to T€ 543,278 in the financial year (2022: T€ 533,960). In the reporting period impairments on intangible assets and on property, plant and equipment to the amount of T€ 5,884 (2022: T€ 10,149) and reversal of impairment losses in the amount of T€ 18,500 (2022: T€ 0) were made. Impairment on goodwill amounts to T€ 7,454 (2022: T€ 6,700). For goodwill impairments we refer to the details under item (13) 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€ 68,474 (2022: T€ 65,082).

Included in interest and similar income are exchange rate gains amounting to T€ 2,259 (2022: T€ 9,074) and interest portions from the plan assets for pension provisions in the amount of T€ 3,752 (2022: T€ 835).

Included in interest expense and similar charges are interest components from the allocation of severance payment and pension provisions amounting to T€ 18,733 (2022: T€ 5,102) as well as currency losses of T€ 18,166 (2022: T€ 5,877).

Interest from leases in the amount of T€ 7,630 (2022: T€ 7,326) is included in the interest expense and similar charges.

Income tax includes taxes paid in the individual companies or owed on income, as well as deferred tax and the payments of additional tax payments resulting from tax audits:

The following tax components are recognised directly in equity in the statement of total comprehensive income:

The reasons for the difference between the Austrian corporate income tax rate of 24% (2022: 25%) valid in 2023 and the actual consolidated tax rate are as follows:

The basic earnings per share is calculated by dividing the consolidated profit or loss by the weighted average number of ordinary shares. As there are no stock options at the STRABAG SE Group, the diluted earnings per share equal the basic earnings per share.