PORR: PORR : Annual and Sustainability Report 2024

CONSTRUCTION IN MOTION ANNUAL AND SUSTAINABILITY REPORT 2024 HOME OF CONSTRUCTION FIGURES IN MOTION Operating data Foreign share Order backlog Order intake in EUR m 2024 Change 2023 2022 2021 Production output 1 6,747 2.6% 6,577 6,226 5,727 Foreign share 54.3% -0.6 PP 54.9% 54.2% 53.9% Order backlog 8,543 1.1% 8,452 8,204 7,764 Order intake 6,846 0.2% 6,835 6,659 6,414 Staffing level (average) 21,228 2.7% 20,665 20,232 20,177 Staffing level (average) Earnings indicators 2021 EBITDA EBIT EBT Profit in EUR m 2024 Change 2023 2022 2021 Revenue 6,190.5 2.3% 6,048.5 5,786.0 5,169.8 EBITDA 368.8 7.1% 344.3 318.9 287.5 EBIT 158.4 12.9% 140.3 120.1 95.2 EBT 145.1 11.0% 130.7 110.0 85.4 Profit 108.9 14.6% 95.0 82.6 61.4 Earnings per share (in EUR) 2.32 4.8% 2.21 1.65 1.18 Earnings per share (in EUR) Financial position indicators Equity (incl. non-controlling interests) Equity ratio Cash and cash equivalents Net debt in EUR m 31.12.2024 Change 31.12.2023 31.12.2022 31.12.2021 Total assets 4,240 2.5% 4,136 4,147 4,065 Equity (incl. non-controlling interests) 894 4.0% 860 799 824 Equity ratio 21.1% 0.3 PP 20.8% 19.3% 20.3% Cash and cash equivalents 583 -7.6% 631 656 765 Net debt 2 -100.0% -40 -59 -65 31.12.2021 Cash flow and investments Cash flow from investing activities Cash flow from financing activities Free cash flow CAPEX Depreciation/amortisation/impairment in EUR m 2024 Change 2023 2022 2021 Cash flow from operating activities 374.5 35.5% 276.4 286.8 418.5 Cash flow from investing activities -236.4 33.6% -177.0 -96.2 -155.8 Cash flow from financing activities -182.0 42.8% -127.5 -300.9 -84.3 Free cash flow 138.2 39.0% 99.4 190.6 262.8 CAPEX 2 320.3 -2.8% 329.5 236.2 257.3 Depreciation/amortisation/impairment 210.4 3.2% 204.0 198.8 192.3 2021 2021 1 The production output corresponds to the output of all companies and consortiums (fully consolidated, equity method, proportional or those of minor significance) in line with the interest held by PORR AG. 2 Investments in property, plant and equipment and intangible assets Non-financial indicators Total GHG emissions Female staff as a percentage of total Lost time injury frequency rate per 1m hours worked (LTIFR) Participation in training on compliance & anti-corruption 2024 Total energy consumption MWh 899,777 Total GHG emissions t CO 2 e 4,295,895 Female staff as a percentage of total 16.7% Lost time injury frequency rate per 1m hours worked (LTIFR) Rate 13.5 Participation in training on compliance & anti-corruption 88.7% The 2024 financial year serves as the baseline year for non-financial reporting in line with the CSRD, which is why no comparative values from previous years are available for these KPIs. We ' re always on the move, building upwards and downwards and drilling through mountains. We look to the future, we move forwards - Construction in Motion. We develop innovations, create sustainable success and are always one step ahead. Because we are PORR - Home of Construction. Key data regarding shares Closing price as per 31.12. Year high Year low Market capitalisation as per 31.12. (in EUR m) Dividends per share Dividend yield Payout ratio Price-earnings ratio in EUR 2024 Change 2023 2022 2021 Number of shares as per 31.12. 39,278,250 - 39,278,250 39,278,250 39,278,250 Closing price as per 31.12. 17.74 39.7% 12.70 11.76 13.74 Year high 18.50 25.0% 14.80 14.00 17.50 Year low 12.58 14.4% 11.00 9.00 11.80 Market capitalisation as per 31.12. (in EUR m) 696.8 39.7% 498.8 461.9 539.7 Dividends per share 0.90 1 20.0% 0.75 0.60 0.50 Dividend yield 5.1% 1 -0.8 PP 5.9% 5.1% 3.6% Payout ratio 38.8% 1 4.9 PP 33.9% 36.4% 42.4% Price-earnings ratio 7.6 32.5% 5.7 7.1 11.6 2021 1 Proposal to the AGM The figures have been rounded off using the compensated summation method. Absolute changes are calculated using the rounded values, relative changes (in percent) are derived from the non-rounded values. CONTENT IN MOTION Home of Construction Group Management Report Consolidated Financial Statements Further Information NON-FINANCIAL STATEMENT 06 Foreword by the Executive Board 08 Supervisory Board Report 10 Highlights 14 PORR on the Stock Exchange 22 Mission Statement 24 Business Model 28 Group Strategy 33 Stakeholder Engagement 36 Corporate Governance 46 ESG Governance 51 Materiality Analysis 60 About the 2024 Report 62 Environment 116 Social 148 Governance 156 Markets & Performance 162 Segment Report 171 Forecast Report 172 Risk Report 176 Disclosure acc. to Sec. 243a (1) Austrian Commercial Code 182 Consolidated Income Statement 183 Consolidated Statement of Comprehensive Income 184 Consolidated Cash Flow Statement 185 Consolidated Statement of Financial Position 186 Statement of Changes in Group Equity 188 Notes to the Consolidated Financial Statements 259 Shareholdings 266 EU Taxonomy 273 Glossary 277 Auditor's Report 286 Statement of all Legal Representatives 287 Appropriation of Earnings 288 Acknowledgements 289 Financial Calendar & Contact CONTENT IN MOTION HOME OF CONSTRUCTION // GROUP MANAGEMENT REPORT // CONSOLIDATED FINANCIAL STATEMENTS // FURTHER INFORMATION HOME OF CONSTRU HOME OF CONSTRUCTION CTION // GROUP MANAGEMENT REPORT // CONSOLIDATED FINANCIAL STATEMENTS // FURTHER INFORMATION LeopoldQuartier Vienna, Austria LEADING IN MOTION Dear stakeholders, It's that time again: I'm delighted to be able to share with you the news of an extremely successful business year. In 2024, PORR has not only successfully overcome the challenges facing the construction industry but also made progress and improve-ments across the board. With a construction industry confronted by major uncertainties, we've proven that our PORR can draw on its resilience and strength in innovation. The fact that we're able to present such positive figures today is thanks to the breadth of our portfolio, which we are constantly innovating and consistently advancing on the basis of our experience dating back more than 150 years. In concrete terms, our order backlog rose again by 1.1% to EUR 8.5 bn - whereby civil engineering was the growth driver, accounting for a hefty 56.0%. But other areas also per-formed extremely well: Industrial con-struction, for example, almost doubled. Residential construction is not yet as PORR draws on resilience and innovative strength. prevalent, but the sector is picking up again. Together with the boom in the construction of data centres and healthcare, we see good market opportunities here. We brought in a total of EUR 6.8 bn of great new orders - up by 0.2% against the previous year. These include, for example, the construction of a large data centre worth almost EUR 200m and a production plant for a pharmaceutical company worth around EUR 100m, both in Germany. In civil engineering, we have been awarded the contract to replace the Lueg Bridge in Austria. In Poland, we are building a 34 km high-pressure gas pipeline that will transport natural gas from an LNG terminal inland, as well as a factory for components for wind turbines. In the Czech Republic, we're working on the motorway bypass around Prague, and in Bucharest, Romania, we're rehabilitating 18 km of tram tracks. As you can see, our projects reflect the four major growth drivers of the economy, the 4 Ds: Digitalisation, demographic change, de-globalisation and decarbonisation. Each of our projects are driven by needs arising from these changes. And PORR has exactly the right key competencies to benefit from this development. As an infrastructure specialist, it not only covers the area of sustainable mobility in rail and tunnelling but is also playing a leading role in shaping the energy transition. In industrial construction, PORR is a reliable partner for leading clients, while the company has also established a strong position in healthcare construction. PORR is ready to meet the growing demand for residential construction by means of modular construction. Of course, a large number of projects means a lot of work and this leads to higher production output. PORR has seen growth in every market, especially in Romania and Austria. Across the Group, we have increased our output by 2.6% to EUR 6.7 bn. As we have simultaneously reduced the cost of materials in absolute terms and achieved significant efficiency increases, our earnings before interest and taxes (EBIT) are also impressive. In 2024, we generated EBIT of EUR 158.4m. This corresponds to an EBIT margin of 2.6% and earnings per share of EUR 2.32. Accordingly, together with the Supervisory Board, we are proposing a dividend of EUR 0.90 per share to the Annual General Meeting. We are also proud of our commit-ment to the Science Based Targets and our comprehensive climate transition plan for meeting our PORR climate protection targets by 2030. We have defined seven strategic levers that we can use to reduce emissions. These include, for example, electrifying our vehicle and equipment fleets and fitting them with alternative drives; green electricity as part of our photovoltaic rollout; preventing, reducing and recycling waste; and decarbonisation in procurement, i.e. prioritising low-emission materials. As a construction company, we have a responsibility to address climate change. It is therefore important that we take concrete, science-based steps in a transparent manner and in close cooperation with our partners. We're pursuing all seven le-vers here and I can promise you that in 2025 there will be plenty of new developments to report on in this area. So what does the future hold? The indicators are good: Economic growth of 1.3% is expected across Europe. This will naturally benefit PORR as well. And one thing is clear in 2024: There's still a lot to do. People's needs are constantly evolving and PORR is growing and developing with them. That's why we expect to see moderate growth in output and revenue in 2025, along with an EBIT margin of between 2.8% and 3.0%. To manage these de-velopments, structural changes are also needed as part of our strategy of Intelligent Growth with Green