Notes on the items of the consolidated income statement

Revenue is represented as follows:

Revenue 2024

Revenue 2023

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€ 108,256 (2023: T€ 63,482).

The interest income is calculated using the effective interest method.

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

In the 2024 financial year, revenue from approved claims in the amount of T€ 292,872 (2023: T€ 240,242) was recognised. The costs were already recognised in profit or loss in previous periods. The claims and variation orders relate to around 1,500 individual projects, mostly involving small amounts. 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.

Other operating income includes insurance compensation and indemnification in the amount of T€ 66,345 (2023: T€ 66,749), exchange rate gains from currency fluctuations in the amount of T€ 7,816 (2023: T€ 16,452) as well as gains from the disposal of fixed assets without financial assets in the amount of T€ 71,213 (2023: T€ 59,898).

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€ 21,326 (2023: T€ 19,734).

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

A total of 3,238 employees (FTE) are attributable to subsidiaries and associates not included in the full scope of consolidation.

The expenses for construction materials, consumables and services used as well as the employee benefits expense also include spending on research and development for specific competitive projects, for solving new types of technical problems and for the introduction of building processes to the market.

Other operating expense includes losses from exchange rate differences from currency fluctuations in the amount of T€ 48,272 (2023: T€ 16,832).

Amortisation and depreciation, including the amortisation of rights from concession arrangements and depreciation of investment property, amounted to T€ 580,015 in the financial year (2023: T€ 543,278). In the reporting period impairments on intangible assets and on property, plant and equipment to the amount of T€ 2,277 (2023: T€ 5,884) and reversal of impairment losses in the amount of T€ 0 (2023: T€ 18,500) were made. Impairment on goodwill amounts to T€ 0 (2023: T€ 7,454). 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€ 74,215 (2023: T€ 68,474).

Included in interest and similar income are exchange rate gains amounting to T€ 9,247 (2023: T€ 2,259) and interest portions from the plan assets for pension provisions in the amount of T€ 3,240 (2023: T€ 3,752).

Included in interest expense and similar charges are interest components from the allocation of severance payment and pension provisions amounting to T€ 15,502 (2023: T€ 18,733) as well as currency losses of T€ 9,654 (2023: T€ 18,166).

Interest from leases in the amount of T€ 9,664 (2023: T€ 7,630) 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:

Due to the provisions of the Pillar II rules, Hungarian trade tax and innovation contributions totalling T€ 7,974 were recognised under income tax for the first time in the year under review.

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 23% (2023: 24%) valid in 2024 and the actual consolidated tax rate are as follows:

The basic earnings per share are 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.