Segment report
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 SE 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, Switzerland, Benelux and Scandinavia as well as the ground engineering activities.
The segment South + East comprises the construction activities in Austria, Poland, Hungary, Czech Republic, Slovakia, Adriatic and Rest of Europe and the environmental engineering business. In July 2023, the construction materials business was allocated to this segment with effect from 1 January 2023.
The segment International + Special Divisions includes the international construction activities, tunnelling, services, real estate development and infrastructure development.
In addition, there are the Central Divisions and Central Staff Divisions, which handle services in the areas of accounting, group financing, technical development, digitalisation and innovation, machine management, quality management, logistics, legal affairs, contract management, etc. These services are included in the segment Other.
Segment reporting for the financial year 2023
T€ | North + West | South + East | International + Special Divisions | Other | Reconciliation to IFRS financial statements | Group |
Output volume1 | 8,216,660 | 7,741,898 | 2,957,272 | 223,308 | 19,139,138 | |
Revenue | 7,280,187 | 7,344,063 | 2,984,478 | 57,812 | 0 | 17,666,540 |
Inter-segment revenue | 139,732 | 189,488 | 0 | 1,081,165 | ||
EBIT | 644,823 | 392,570 | -132,104 | 3,300 | -28,392 | 880,197 |
thereof share of profit or loss of equity-accounted investments | 135,671 | 24,960 | -16,466 | -33 | 0 | 144,132 |
Interest and similar income | 0 | 0 | 0 | 119,194 | 0 | 119,194 |
Interest expense and similar charges | 0 | 0 | 0 | -75,068 | 0 | -75,068 |
EBT | 644,823 | 392,570 | -132,104 | 47,426 | -28,392 | 924,323 |
Investments in property, plant and equipment and intangible assets | 0 | 0 | 0 | 667,000 | 0 | 667,000 |
Depreciation, amortisation and impairment losses, reversals of impairment losses | 7,454 | 0 | 20,305 | 510,357 | 0 | 538,116 |
thereof impairment losses and reversals of impairment losses | 7,454 | 0 | 0 | -12,616 | 0 | -5,162 |
1Not an IFRS measure, therefore not audited
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 for better comparability.
Segment reporting for the financial year 2022
T€ | North + West | South + East | International + Special Divisions | Other | Reconciliation to IFRS financial statements | Group |
Output volume1 | 7,865,465 | 7,087,077 | 2,644,807 | 138,122 | 17,735,471 | |
Revenue | 7,157,261 | 6,788,976 | 3,061,973 | 17,637 | 0 | 17,025,847 |
Inter-segment revenue | 99,568 | 231,762 | 0 | 1,004,606 | ||
EBIT | 456,530 | 236,891 | 44,813 | 997 | -32,834 | 706,397 |
thereof share of profit or loss of equity-accounted investments | 40,527 | 18,837 | 1,554 | -31 | 0 | 60,887 |
Interest and similar income | 0 | 0 | 0 | 50,742 | 0 | 50,742 |
Interest expense and similar charges | 0 | 0 | 0 | -40,066 | 0 | -40,066 |
EBT | 456,530 | 236,891 | 44,813 | 11,673 | -32,834 | 717,073 |
Investments in property, plant and equipment and intangible assets | 0 | 0 | 0 | 770,438 | 0 | 770,438 |
Depreciation, amortisation and impairment losses, reversals of impairment losses | 6,700 | 0 | 19,674 | 524,435 | 0 | 550,809 |
thereof impairment losses | 6,700 | 0 | 0 | 10,149 | 0 | 16,849 |
1Not an IFRS measure, therefore not audited
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 and participation companies. 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 net income from investments.
Other minor differences result from entries in other consolidations.
Reconciliation of the internal reporting to IFRS financial statements is allocated as follows:
T€ | 2023 | 2022 |
Net income from investments | -25,513 | -26,815 |
Other consolidation adjustments | -2,879 | -6,019 |
Total | -28,392 | -32,834 |
Breakdown of revenue by geographic region
T€ | 2023 | 2022 |
Germany | 8,005,923 | 7,677,021 |
Austria | 2,848,802 | 2,764,058 |
Rest of Europe | 5,879,026 | 5,649,463 |
Rest of world | 932,789 | 935,305 |
Revenue | 17,666,540 | 17,025,847 |