1FINANCIAL REPORT 2023
DEKRA Financial Report 2023

At aglanceWhen it’s a matter of safety, security and sustainability, whether on the road,at work, or at home, millions of people throughout the world place their trustin ­DEKRA’s expertise. As the leading non-listed expert organization, we act on a­neutral and independent basis to fulfill the mission laid down in our articles ofincorporation. With almost 49,000 employees in around 60 different countries
on five different continents, DEKRA stands for innovative services. To mark theCompany‘s centenary in 2025, our vision is to be the global partner for a safe,
secure and sustainable world.
DEKRA renders its comprehensive range of services internationally to more than
500,000 customers across six Regions of the world. Our portfolio ranges fromvehicle inspections, expert appraisal reports, industrial and building inspections,advisory, training and personnel management services, all the way through tothe testing and certification of analogue and digital products and systems. With
more than 500 services alone, DEKRA assists in the transformation to sustainable management. Moreover, through its commitment to cybersecurity and theregulation of artificial intelligence, DEKRA is helping to build trust in new technologies and to master the related challenges, such as mobility of the future. As an
independent third-party entity, DEKRA thus stands for human safety and security
in a digital world.

DEKRA SE – Key Figures
2021

2022

2023

3,534.8

3,796.5

4,101.4

Share of international revenue in %

39.3

37.9

37.9

Adjusted EBIT in € million

226.0

226.4

255.3

Adjusted EBIT margin in %

6.4

6.0

6.2

215.5

210.5

237.9

2,811.3

2,812.4

2,882.4

Equity in € million

942.8

1,153.5

1,133.5

Equity ratio in %

33.5

41.0

39.3

47,77048,646

48,771

Revenue and income
Total revenue in € million

Adjusted EBT in € million
Statement of financial position
Total assets in € million

Employees
Number as of Dec. 31

DEKRA Financial Report 2023

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Contents
04 Introduction by the CEO
05 Group Management Report
06
07
09
09
11
12
14

17
18
18
21

26
27
36
37

Fundamental Information on the Corporate Group
Group business model
Objectives and strategies
Research and development
Integrity
Sustainability
Personnel report

Economic Business Report
Macroeconomic and sector-specific environment
Business performance
Results of operations, financial position, and net assets

Risk, Opportunities, and Forecast Report
Risk report
Opportunities report
Forecast report

38 Consolidated Financial Statements
39
40
42
43
45
107
111

Consolidated Statement of Comprehensive Income
Consolidated Balance Sheet
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Independent Auditor’s Report
Report from the Chairman of the Supervisory Board

DEKRA Financial Report 2023

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Introduction by the CEO

Introduction
by the CEO
Dear Readers,
Despite only moderate growth in the global economy, DEKRA achieved an all-time sales record in 2023.
Total revenue increased by 8.0 percent to 4.1 billion euros. It is particularly pleasing to note that all theService Divisions and Regions contributed to this, with double-digit growth in some cases. This successis based on our strong market positions and the huge trust placed in us by over 500,000 customers
worldwide.
In the 2023 financial year, we made further progress in implementing our Strategy 2025. By offering
new training, consulting, testing, validation and inspection services in growth areas such as sustainability, future mobility and artificial intelligence (AI), we were able to strengthen our importance as anindependent partner.
In the key area of sustainability, we expanded our offering to around 500 services, including life cycle
analyses, the testing of systems and infrastructure for sustainable energy generation and ESG auditing
and consulting services. We are also strengthening consumer confidence in e-mobility: Our patented
battery test makes it possible for every e-vehicle owner to carry out a high-precision measurement of
their car’s battery condition in just a few minutes.
We are helping to shape the safety of future mobility through massive investments – for example, we
are further expanding our testing facilities at DEKRA Lausitzring in Klettwitz, Germany. This expansion
in 2023 moved us closer to our goal of becoming the world’s largest independent center for automatedand connected driving.
In the 2023 financial year, it became clear that the transformative power of AI requires clear rules. Due
to our experience and expertise in the testing and certification sector as well as in technology and IT,
we are participating in this process. DEKRA is involved in several government initiatives and committees
and is operating as an impartial third party to help to ensure that the AI revolution proceeds safely.
We further underscored this ambition in 2023 with the pioneering introduction of the first testing­procedures for AI applications.
DEKRA has great confidence in the expertise and commitment of its employees, in the quality of its
services and in Strategy 2025. This is why, even in the volatile environment of the current 2024 financial
year, we will continue to grow and help make the world safer and more sustainable.
Stuttgart, April 2024
Chairman of the Management Board
DEKRA SE

Stan Zurkiewicz
DEKRA Financial Report 2023

5

Group
Management
Report
06
07
09
09
11
12
14

17
18
18
21

26
27
36
37

Fundamental Information on the Corporate Group
Group business model
Objectives and strategies
Research and development
Integrity
Sustainability
Personnel report
Economic Business Report
Macroeconomic and sector-specific environment
Business performance
Results of operations, financial position, and net assets
Risk, Opportunities, and Forecast Report
Risk report
Opportunities report
Forecast report
DEKRA Financial Report 2023

Fundamental
Information on
the Corporate Group
06
07
09
09
11
12
14

Economic Business Report
Group business model
Objectives and strategies
Research and development
Integrity
Sustainability
Personnel report

DEKRA Financial Report 2023

7Group Management Report › Fundamental Information on the Corporate Group

Group Management Reportof DEKRA SE, Stuttgart,
for the financial year 2023
Fundamental Information on the Corporate Group
Group business model
DEKRA ensures safety

Around48,800employees in around
60 countries worked at
DEKRA by the end of 2023.

For almost 100 years now, DEKRA has been committed to ensuring people’s safety in all of life’s situations.
What started out in 1925 with the technical monitoring of motor vehicles, today comprises a wide
range of services, notably for inspecting, testing and certifying vehicles, products, processes, and facilities, as well as initial and further training. In terms of revenue, DEKRA is the world’s largest non-listed
expert organization in the TIC (testing, inspection, certification) industry, and is benefiting from thelasting and global trend towards greater safety, security and sustainability. The Company’s safety mission as set out in its articles of incorporation is just as valid today as when it first started out.
By the end of 2023, DEKRA had around 48,800 people in its employment in some 60 countries on fivedifferent continents. The Company carried out around 32 million vehicle inspections globally. Since
2022, the comprehensive services it offers have been sorted into seven Service Divisions. The global
business is managed by DEKRA SE, based in Stuttgart, and is divided into six Regions. In the year underreview, DEKRA amalgamated the countries of Germany, Switzerland and Austria into the GSA Region(Germany, Switzerland, Austria) so that it could better make use of the close economic ties between
the three markets.

Represented in all regions of the world

Of the six Regions, GSA is the major market region with revenue of 2.6 billion euros, followed by­South-West Europe (which also includes the Company’s second domestic market of France) with
551.3 million euros. DEKRA generated revenues of 397.5 million euros in the North-West Europe Region
and 190.4 million euros in Central East Europe & Middle East.
Besides Europe, DEKRA also focuses on the markets in the APAC (Asia-Pacific) Region (with revenuesof 260.7 million euros) and the Americas Region (with revenues of 144.4 million euros).

Systematic expansion of the product & service portfolio

Across its seven Service Divisions, DEKRA focuses on the ongoing development and optimization of its
services within the corresponding business sectors. In the context of digitalization, interconnectivity,
and the growing significance of artificial intelligence (AI), and cybersecurity, DEKRA’s team of experts
is developing the safety and security solutions of tomorrow, reinforcing the Company’s role asa pioneer in the realm of safety and security.
DEKRA’s service portfolio is bundled into the following Service Divisions:
Vehicle Inspection
This Service Division comprises periodically recurring vehicle inspections, as well as non-periodic
technical inspections and periodic emissions tests for all kinds of vehicles. In this core area of its
expertise and with an eye on the future of mobility, DEKRA provides reliable technical inspections ofincreasingly connected and automated vehicles with combustion engines and of electric vehicles
with alternative drive systems that use batteries or fuel cells (hydrogen).

DEKRA Financial Report 2023

8Group Management Report › Fundamental Information on the Corporate Group

Claims & Expertise
The services offered by the Claims & Expertise Service Division include claims settlements for any typeof damage claim, vehicle valuation and administration services, and expert appraisal reports – bothnationally and internationally.
Digital & Product Solutions (prior year: Product Testing)
The area of expertise for the Digital & Product Solutions division includes the testing and certificationof consumer, industrial, automotive, information & communications products and medical goods.
DEKRA combines analogue safety checks with intelligent digital testing solutions, thus working towards
a future in which products are safe, function perfectly, communicate smoothly with each other andmeet cybersecurity requirements.
Industrial Inspection
DEKRA renders comprehensive building, facility, machinery, and infrastructure inspection services,
including a wide range of materials testing, for customers in industry around the world.
Advisory & Training Services
Our competent advisory and training services delivered to a broad range of sectors result in well-qualified employees and top-performing companies. Using modern tools and digital technologies, ourexperienced consultants and trainers provide support by means of services that are customized to suitthe individual needs of our customers.
Audit
The Audit Service Division’s core expertise lies in the independent evaluation and certification of ma­na­ge­ment systems in accordance with national and international standards. DEKRA holds a diverse
range of accreditations for system certifications, and offers first-party (internal audits), second-party(auditing suppliers in accordance with their own standards) and third-party audits (auditing in accordance with internationally recognized standards, with corresponding authorization).
Temp WorkThe employees in the Temp Work Service Division are characterized by their extensive know-how in
the fields of HR, solutions management, events management, and logistics management. In terms ofrevenue, DEKRA is the sixth-largest of Germany’s major HR service providers.

Region Perspective

Service Perspective

GSA

Temp WorkDEKRA Financial Report 2023

Audit

Vehicle Inspection

Advisory & Training Services

APAC

Industrial Inspection

Americas

Digital & Product Solutions

South-West Europe

Claims & Expertise

North-West Europe

Vehicle Inspection

Central East Europe & Middle East

9Group Management Report › Fundamental Information on the Corporate Group

Objectives and strategies
We will be the global partner for a safe, secure and sustainable world.

DEKRA celebrates

100
years
in 2025

DEKRA’s strategic focus and operational management are guided by the principle of stable and healthy
growth. As such, professional expertise, innovative power and proximity to customers continue to be
our primary tasks. Through its “Vision 2025” and the focus on the relevant three areas of life – on theroad, at work and at home – DEKRA has mapped out its course for the coming years on the occasion ofits 90th anniversary in 2015. Now, for its upcoming centenary in 2025, DEKRA has set itself the following
goal: We will be the global partner for a safe, secure and sustainable world.
In the 2023 financial year, DEKRA again demonstrated its full commitment to achieving this long-term
objective. Digital transformation is an important part of this. Even though DEKRA is already a globally
acknowledged business partner for the testing, certification and inspection of intelligent and connectedvehicles, products and facilities, we are nevertheless constantly working to further enhance our digitalcompetency on the basis of a comprehensive digital strategy. This starts internally with advanced,­global IT and new ways of working, includes digital interaction with customers, and extends throughto new and data-driven services. Consequently, DEKRA will digitalize its processes as far as possible,
further expand its technical expertise, work on shaping digitalization in its markets through innovationand technology partnerships, and build up new business lines. The Company’s digital strategy wasrolled out Group-wide in 2021 and will be implemented by 2025. In the reporting year, DEKRA created a
new management position of Chief Digitalization Officer (CDO) and since July 1, 2023, the role has been
held by an expert in the field of digitalization, Petra Finke.
In 2021, DEKRA added two more components to its corporate vision: Security and Sustainability.
Digital connectivity of products and systems has lead to a broadened concept of safety and security;
though the human involved continues to be the priority, physical safety is no longer the only consideration – nowadays it is also necessary to ensure security in the sense of protecting personal data andnetworked systems against external attacks. Moreover, DEKRA has now also anchored the concept ofsustainability in its corporate vision.
In association with a broadened corporate vision, the Company mapped out its strategic course. Thisis structured as five corporate focus areas that represent key fields of growth, in which existing services
will be improved and new digital services will also be developed. These corporate focus areas are:­Future Vehicle & Mobility Services, IT & Cybersecurity Services, Remote Services, AI & Advanced Analytics,
and Sustainability Services.
As a global enterprise, we benefit from sustainable advancement of the economy, the environment andsociety. We have assessed the impact of climate change on our organization and on our business modeland taken this into consideration in our sustainability strategy. This strategy undergoes continual further
enhancement in close consultation with the Management Board and Executive Management (thehighest management level directly beneath the Management Board). We are addressing the specificchallenges related to our business activities such as, for example, the indirect impact of business trips
on the climate, and we are working on limiting these and developing innovative solutions. We also takeenvironmental and climate issues into consideration in our internal risk management process and in
our internal audit system. Through our internal environmental management system, we assess our key
areas of resource consumption and our key emissions, and thereby establish what the relevant risks
are and where there is potential for improvement.

Research and development
DEKRA has been an independent expert organization since 1925, meaning that the Company has
been working in the area of road safety for almost 100 years – taking responsibility for periodic vehicle
inspections, deployment of accident analysts and accident investigators, crash tests, public campaigns
and involvement in national and international committees. DEKRA’s accident investigation department,
for example, has been supporting automotive manufacturers and system suppliers with crash tests
and accident analyses for more than 40 years now. The department’s ongoing mandate is to analyze
real-life accidents on the roads in order to draw conclusions for road traffic safety.

DEKRA Financial Report 2023

10Group Management Report › Fundamental Information on the Corporate Group

Furthermore, DEKRA uses its status as an international expert organization to inform the public, bymeans of workshops and publications, about relevant technical requirements for better road safety.

Digitalization and road safety

The 16th edition of the DEKRA Road Safety Report [in German: “Verkehrssicherheitsreport”, abbreviatedto “VSR”] was issued in the 2023 financial year. The DEKRA VSR, published annually since 2008, provides
up-to-date information and advice on the further enhancement of road safety for decision-makers inpolitics, associations and companies. Under the heading of “Technology and People”, the 2023 editionof the DEKRA VSR analyzes how the driver’s role and the human-machine interface are changing as
road traffic becomes increasingly digitalized. The report highlights numerous problem areas from thepoint of view of accident research, traffic psychology, vehicle technology, infrastructure and legislation.
The DEKRA VSR is accompanied by the DEKRA online portal for road safety, www.dekra-roadsafety.com.
This provides additional content to supplement the printed report, such as videos and interactive
graphics. The portal also addresses many other topics relating to road safety, including vehicle technology, infrastructure, and human factors, such as the issue of being distracted by smartphones.

Mobility of the future

DEKRA has been there alongside technological developments in the automotive sector for many years.
The shift towards the mobility of the future represents a particular challenge for all parties involved in
the automotive industry. With that in mind, a team at DEKRA has been working on developing services
covering every aspect of the connected vehicle. To do so, DEKRA pools the entire range of knowledge
gained from laboratory tests and materials testing all the way through to homologation and typeapproval, across organizational and national borders.
Following its acquisition of the Lausitzring racetrack in Klettwitz, Germany in November 2017, DEKRA
merged the racetrack with the adjoining DEKRA Technology Center in 2018. Here, on 540 hectares ofland, we have created a unique manufacturer-independent testing and inspection center for advanced
driver assistance systems and automated driving.
The investments made so far – in areas including tracks as well as transmission and measurement technology – total an amount in the mid-double-digit million range. The construction of city tracks on theparking lots was completed during the year under review. It is now possible to try out a whole variety of
inner-city scenarios on these new tarmac surfaces, using mobile infrastructure and flexible built-up urban
sections. Added to the already-existing tracks at the DEKRA test oval and the Lausitzring racetrack,
this will enable us to try out test vehicles in flexible inner-city and cross-country scenarios. Through thetesting it provides to manufacturers and suppliers to accompany their development work, as well as
testing for homologation and type approval, DEKRA ensures that the automated driving functions thatwill be in use on roads in the near and distant future really are safe.
Hydrogen technologies are set to play a key role in combating climate change. As such, DEKRA has
committed in principle to a future hydrogen economy, and is involved in developing internationallyrecognized standards and regulations for this, as well as considering the issue of safe infrastructure.
DEKRA contributes essential know-how here, on subjects ranging from the production, transportationand distribution of hydrogen solutions, all the way through to their use – not least in successful customer projects and pilot projects.
In the year under review, DEKRA was one of the first test organizations in Germany to be given approval
for all of the key services surrounding hydrogen filling stations. This means that DEKRA’s team ofexperts is authorized to certify the conformity of such filling stations with the applicable safety standards
and to verify the quality of the hydrogen provided there.

DEKRA Financial Report 2023

11Group Management Report › Fundamental Information on the Corporate Group

Ongoing digitalization campaign

In the year under review, DEKRA continued to move forward with the digitalization of services and­processes, thus further paving the way for the development of services and standards in the area of
AI and cybersecurity.
For instance, in 2023 DEKRA launched the first generation of AI testing services onto the market;
these can assist our customers in proactively preparing for future regulations and learning to trust
AI-supported solutions. These services are accompanied by a business unit that carries out AI assessments and AI tests, for example on the robustness of models, on data quality and on risk management.
The goal is to perform conformity assessments while at the same time guaranteeing maximum safety
standards. DEKRA was also involved in the establishment of AI industry standards and the promotion ofbest practices during the year under review, through its participation in AI standardization committees
and working groups, for example.
Just as in the future field of AI, DEKRA is also committed to further developing a secure environment
in the equally relevant field of cybersecurity. DEKRA’s experts have been involved in developing new
standards and certification systems to this end. For example, in cooperation with the European Union
Agency for Cybersecurity (ENISA), the Company was closely involved in formulating a cyber­security
certification system specifically for AI.
DEKRA has expanded its services in the field of testing communication technology. It provides testing
services for sensors, systems and vehicles that are compatible with Apple car keys via NFC, ultra-widebands or Bluetooth technology. DEKRA has already been authorized to provide third-party audits,
pretesting and advisory services relating to Apple car key features. These services are rendered by
DEKRA laboratories in the USA, Spain and China.

Integrity¹
Compliance management system

DEKRA depends on having the trust of its customers, its employees and the general public. Integrity,
reliability and neutrality are the cornerstones of its corporate values and an integral part of the corporate culture. The Management Board has set up a compliance department geared towards damage
prevention and risk control. The overall responsibility for the compliance department lies with the Chief
Compliance Officer who acts autonomously in this role and reports to the Chief Financial Officer (CFO).
The DEKRA Compliance Management System (CMS) defines the entirety of the organizational measuresand processes that have been implemented in order to identify individual compliance risks in the Company, prevent and minimize violations by its corporate bodies and employees and react to breaches of dutyby swiftly and effectively clarifying, remedying and penalizing such violations. In 2023, DEKRA enhanced
and adapted its CMS in line with changes to regulatory requirements. The web-based international
compliance training concept developed by the DEKRA Compliance Office was updated and rolled out
across the entire DEKRA Group. This training concept ensures that all of DEKRA’s employees are awareof compliance, thereby enabling them to quickly recognize issues and risks which are relevant to the
topic of compliance.
The DEKRA Compliance Guidelines set out exactly what the Company expects and requires in terms of
its compliance culture – in relation to itself, its employees and its business partners. The DEKRA Compliance Guidelines contain clear specifications for employees and provide them with instructions andguidance for appropriate action. The DEKRA Compliance Guidelines were updated in the year underreview, and were evolved into the DEKRA Code of Conduct & Ethics.
DEKRA employees and third parties throughout the world are instructed to report any potential compliance violations. Our DEKRA Whistleblower System makes it possible to report compliance incidents,
violations of the law, infringements of social or other environmental standards, and other types of
misconduct. The DEKRA Whistleblower System fulfills all the requirements of the German Whistleblower Act (“HinSchG”) that came into force on July 2, 2023. It even goes somewhat beyond the legal
requirements in that the reporting channel is designed to allow anonymous tip-offs. This facility was
1 Content not audited by the auditor

DEKRA Financial Report 2023

12Group Management Report › Fundamental Information on the Corporate Group

used by employees, customers and third parties in 2023. The introduction of the DEKRA Whistleblower
System has had a positive impact on our corporate and compliance culture with respect to how we deal
with shortcomings, and it has helped us to take swift action which prevents and wards off damage anddanger to the Company and the general public.

Quality management

Integrity, reliability and neutrality are values which are crucial to DEKRA’s success as an organizationof independent experts. DEKRA’s reputation and ability to compete on the market, as well as its­impartiality when rendering services and public duties are heavily dependent on the conduct ofeach and every individual. Authorities, clients and customers can reasonably expect that all DEKRA
employees – i.e., staff members, middle management, executives and board members – work on
the basis of these standards, and can be relied upon to fulfill their duties and conduct themselves as
fair-minded business partners. The related internal requirements and obligations are defined in thequality management system.
In the reporting year, DEKRA pressed ahead with harmonizing and digitalizing its quality management
processes. In doing so, it focussed on internal audit, on the management of complaints and non-conformities, and on the excellence of its services. Worldwide, DEKRA currently holds around 400 accredi­tations in a variety of business areas. All accreditations and certifications are now stored in a global
database. These strengthen DEKRA’s position as an independent third-party entity.

Sustainability²
Sustainability services

Since the strategic realignment in 2021, sustainability services have been one of DEKRA’s areas of focus.
For that reason, in the reporting year the Company continued working on the implementation of a
special strategy aimed at expanding, enhancing and marketing its services relating to all aspects ofsustainability. Based on its many years of experience and expertise, and also bearing in mind new regional requirements such as the EU directives and the Inflation Reduction Act in the USA, the Company
expanded its portfolio of services in the different regions and invested in new services.
Specifically, in the reporting year we developed or enhanced our inspection and certification services,
as well as our expert and training services that relate to technologies underlying the turnaround inenergy policy, particularly to hydrogen, photovoltaic, wind energy and batteries. Furthermore, DEKRA
also enhanced and launched services that assist companies, financial service providers, and investors
in implementing and reviewing their sustainability strategies – for example in the context of sustainability reporting. Due to customers’ requirements for having the sustainability performance of theircompanies and products or services verified by an independent entity, DEKRA also revised its strategy
regarding official seals. Now, it can offer customers sustainability-related seals in conformity withstate-of-the-art technology and already aligned with the anticipated EU Green Claims Directive.
DEKRA also makes an overall contribution to sustainable developments in the economy, environmentand society, primarily by acting as a disseminator, through its specialist know-how and expert services
with a focus on safety, as well as by specifically supporting its customers in the field of sustainability.
The Company has subdivided its portfolio of sustainability services into three categories:
1. Turnaround in energy policy,
2. Closed-loop economy and product sustainability, and
3. Environmental, social and corporate governance (ESG).

2 Content not audited by the auditor

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13Group Management Report › Fundamental Information on the Corporate Group

Sustainability management

DEKRA again continued to expand its sustainability management in the year under review. Based on
DEKRA’s 2025 sustainability strategy and in the context of sustained development, the Company continued to drive forward with ecological aspects (e.g., expanding internal environmental and climate management) and with social issues (e.g., DEKRA social standards, processes ensuring human rights), alongwith the organizational integration of sustainability management into the supply chain. Step by step,
DEKRA is further improving its performance in these specified fields of focus: Environment & Climate,
Employees & Society, Supply & Value-Added Chain and Management & Governance.

Since the end of 2020, DEKRA
has held athe highest rankingof platinum in EcoVadis’sustainability ratings.

In the field of sustainability, the Company is guided by the ten principles of the UN Global Compact,with the aim of helping to fulfill the United Nations’ seventeen sustainable development goals (SDGs).
One other element in the area of Management & Governance is sustainability reporting: DEKRA reports
its progress on the basis of the German Sustainability Code (abbreviated to “DNK”), and internationally“The Sustainability Code”. At the end of 2023, the corresponding report was externally audited for thethird time (limited assurance). However, external ratings also matter: Since the end of 2020, DEKRA has
held the highest rank of platinum in EcoVadis’ holistic sustainability ratings. Its platinum rating was
confirmed for the third time in succession in the year under review. Thus, DEKRA continues to be in the
top one percent of rated companies. The Company’s internal sustainability management structure andorganization across DEKRA’s different Regions and countries ensure that key sustainability concepts are
implemented in accordance with their regional materiality.

100% renewable energies is oneof DEKRA’s targets for 2025.

The Company expands and enhances its internal environmental management and data-based control
of environmental and (in particular) climate protection aspects in conformity with current findings andrequirements. The focus here is on the efficient use of energy and resources, and particularly on climate
protection. The central element of this is the reduction path for greenhouse gas emissions designed inconformity with the Paris Agreement’s 1.5°C target; in 2023 this path was submitted for validation to the
Science Based Targets initiative (SBTi). The cornerstones of this reduction path are rigorous decarbon­
ization measures focussing on procuring and generating renewable energy, efficiency and cost-saving
measures, and the conversion of our fleet of vehicles to alternative drive systems. Specific goals here
include, for example, switching to 100% renewable energy for the supply of electricity by 2025.
As a provider of expert services, the workforce is DEKRA’s most important asset – which is why the­“Employees & Society” aspect of sustainability has a prominent role. It is because of the commitment,
integrity and skills of all of its employees that the Company is able to function as an independent
third-party entity with worldwide recognition. As such, it is essential to provide all employees with specialized and technical further training, but also to provide training concepts geared towards imparting
values and behavioral guidance (e.g., sustainability training, compliance, information security and worksafety) as well as internal awareness campaigns (work safety campaign). Equally, the global engagement survey of employees facilitates trust-based dialogue between the workforce and the employees’
representatives. Every two years since 2017, all of DEKRA’s employees have been asked to give theirassessment and perception of their experiences in the workplace, working conditions and generaldevelopments. Team dialogues then take place between managerial staff and employees, in which thefindings are analyzed and necessary measures are defined and subsequently implemented.
The Company symbolically underscored its commitment to diversity and anti-discrimination in 2022 bybecoming a signatory to Germany‘s “Charta der Vielfalt” (diversity charter) and further built on this bycreating and retaining a Diversity Committee and a global Head of Diversity & Inclusion. It carried out aseries of specific training sessions for all managerial staff and employees in HR and also held interactive
workshops for DEKRA’s different Regions.

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14Group Management Report › Fundamental Information on the Corporate Group

With regard to work health & safety, the Company continued with its global internal work health & safety
program – separated into the three categories of “#safety4me”, “#safety4you” and “#safety4us”. This
program aims to make all employees aware of health and safety at work and encourage them to spend
time considering additional measures for improving safety at the workplace and on the way to work.
The program is based on ongoing communication with methods such as video clips, examples of bestpractice and safety tips from internal safety experts.
DEKRA’s Policy Statement on Human Rights, which was newly released in 2023 and based on DEKRA’ssocial standards, does not only cover employees’ rights within the Company but also within the supply
chain, in terms of principles geared towards the International Labour Organization Standard. Amongother things these concern discrimination and disadvantage, equality of opportunity, work safety,
working hours and remuneration, freedom of association and co-determination, freedom of speech,
protection of privacy, and also the prohibition of child labor, forced labor, slavery and human trafficking.
DEKRA pays attention to sustainability in its procurement activities, too. As part of our supply chain
management system, we request that our suppliers and their sub-contractors comply with sustainability
standards and we monitor this compliance. This is laid down in our sustainability code for suppliers, in
our letter to suppliers and in our general terms and conditions for procurements.

Personnel report
Growth in personnel
The number of permanent
employees increased by4%comparedwith the prior year.

Across DEKRA’s six Regions of the world, headcount (not including Temp Work) rose by 1,182 to 30,850
at year-end 2023 (prior year: 29,668). In the new-for-2023 GSA Region, which comprises the countriesof Germany, Switzerland and Austria, the core workforce grew to 13,916 employees, a rise of almost 5%
compared to the prior year. The number of employees in the Service Divisions also increased, amounting to 380 at year-end (+15%). The Group’s central departments (“Steering & Support”) recorded a 22%
increase in their headcount to 786 employees (prior year: 645) – this is in particular due to the establishment of DEKRA Technology & Services Kft.
In the Temp Work division, the number of employees went down by just under 7%, bringing the total
to 16,755 employees as at balance sheet date (prior year: 18,002). In Germany, 8,425 members of staff
were employed in the Temp Work division (prior year: 10,690).
As a result, DEKRA SE’s headcount reached the total figure of 48,771 (prior year: 48,646).
DEKRA expects an increase in its workforce in the low four-digit range by year-end 2024.

Statement on corporate governanceTargets have been set for the ratio of women in the main corporate bodies and in first-tier and second-tier management. The target figure for the composition of the Supervisory Board of DEKRA SE is
25.0% (prior year: 16.7%). This quota has been achieved. The target of 25.0% set for the Management
Board of DEKRA SE was already reached in 2021. A quota of at least 25% and 30% was set for the first-tiermanagement level (Executive Committee) and second-tier management level (Management Committee)
respectively by the end of 2027. With the actual ratio amounting to 10.5% (prior year: 9.5%), the target
for the first-tier management level has not yet been attained. With an actual ratio of 19.4% (prior year:
19.8%), the second-tier management level also fell short of the stated target. In light of these results,
we are working continuously and sustainably to achieve our targets.

HR strategy

The Group-wide HR strategy serves us as a guiding force for monitoring and meeting the upcoming
corporate challenges of the next few years in a focussed manner. Nurturing our employees is a centralcomponent of our HR strategy. As such, in the medium and long term we will be concentrating on thefollowing strategic topics: Corporate Culture, Leadership, Talent Management, Employee Experience,
Digitalization, Operational Excellence and Structure & Foundations.

DEKRA Financial Report 2023

15Group Management Report › Fundamental Information on the Corporate GroupHR transformation

In 2022 we already took the first steps in an HR transformation process to establish worldwide a uniform corporate structure in our HR organization. In 2023 we continued this journey with great success.
By appointing a global interim HR leadership team, establishing a Center of Excellence (CoE) and global
HR operations, we have already established the foundations for a global HR organizational structure.
The “evolve” project represents the HR department’s new digital foundation for introducing global systems and digitalized processes. In 2022 and 2023, we already set important milestones through local
and global implementations which we will extend by adding further functionalities in the coming years.

Leadership development

With the introduction of “evolve Performance Management” (ePM), we are supporting managerial staff
in strategically developing performance-oriented thinking and acting with a view to a high-performance
culture. This newly developed concept is being sustainably supported by the implementation of a
“Performance Management Training Journey” in 2023 and 2024.
The Company has defined six new leadership standards to provide a future-oriented strategic foundation for further leadership activities. This is the basis upon which the desired leadership culture andcorporate culture are steadily being expanded.
To ensure that these cultures are further enhanced, the Company has introduced a feedback process
and standardized leadership appraisals. These constitute specific development measures that the Company has initiated and put in place.
A new global management training program has been set up which gives managerial staff the opportunity to active­ly rehearse putting leadership standards and DEKRA’s cultural leadership requirements
into practice.
As part of the “Digital Leadership Journey”, various practical training formats have been implemented
with the aim of preparing managerial staff specifically for digital challenges.

Global engagement survey

The fourth global engagement survey of employees, conducted in October 2023, demonstrated thatthe meas­ures we have introduced are bringing about significant improvements throughout the wholeof the Company. By conducting a follow-up process that was centered on the employees, we raised thelevel of participation from 73 to 78 percent.
The survey uncovered positive results including a significant increase in engagement, performance
management, sustainability and employee loyalty to the Company. In fact the Company achieved an
improved outcome compared to the previous survey in almost all dimensions examined.

Talent management

The “Organizational Talent Review” (OTR) process was successfully introduced globally in 2023, for the
purpose of systematically identifying and advancing talent and high-potential employees in key positions
within the Company. This is effective for the targeted further development of talent and careers, as well
as for specific succession planning which favors intensified talent retention. Talent pools and putting
talent KPIs into practice help to safeguard and steer the Company in a forward-looking manner.

DEKRA Financial Report 2023

16Group Management Report › Fundamental Information on the Corporate GroupThe goal is to increase the quality of staffing and leadership. This also goes hand-in-hand with the­development of talent brokering to facilitate more global mobility and internal career opportunities.
The “International Advancement Program” global management training scheme has been enhancedby means of an “alumni network”. This promotes the targeted advancement of talent and retentionof employees.

Diversity & inclusion (D&I)

In 2023, D&I has again been a key concern for DEKRA employees and corporate management. Apartfrom various internal podcasts and blogs on the subject of D&I, this topic is now also included in thecontent of compliance and sustainability training courses. The Diversity Day was a success in 2023,
as was the introduction of an international women’s network. In the year ahead, there are plans to­encourage women in the workplace by means of a specially designed gender-specific training course,
as well as measures targeting other groups and individuals. Due to regular liaising with the otherCenters of Excellence, the focus on D&I is now embedded in all HR processes, for example in the OTR
process as well as in the selection of new staff in the field of recruitment.

Global HR operations

Following the strategic realignment of HR, the Global HR Operations unit is responsible for providing
standardized services as well as the continuous enhancement and improvement of these services.
In delivering these services, the focus is on gearing them towards the customer by implementing­transparent, consistent and global processes, while also taking local particularities into account.

Talent acquisition

In 2023, a global Head of Talent Acquisition was appointed to counter the general risk of a shortage ofskilled workers at DEKRA. Her tasks focus on finding, winning and retaining talent on a global scale. To
counteract fluctuations in the future, too, we will continue to invest in creating an appealing employer
brand under the skilled leadership of the Global Talent Acquisition unit.

DEKRA Financial Report 2023

Economic
Business Report
17
18
18
21

Economic Business Report
Macroeconomic and sector-specific environment
Business performance
Results of operations, financial position, and net assets

DEKRA Financial Report 2023

18Group Management Report › Economic Business Report

Economic Business Report
Macroeconomic and sector-specific environment
Slower growth in world economy

Growth in the global economy weakened in 2023, according to the IMF. Whereas the global grossdomestic product (GDP) still showed growth of 3.5% in 2022, the growth rate recorded in 2023 was only
3.1%. While the USA recorded growth of 2.5%, which was higher than the prior-year rate (1.9%), there
was a distinct slump in the euro zone: Compared to the 3.4% recorded there in 2022, the growth rate in
2023 was only 0.5%. Among the developing and emerging countries, where total growth amounted to
4.1%, India and China recorded the strongest growth (6.7% and 5.2% respectively). Among the westernindustrialized nations, Spain came out on top (with growth of 2.4%). Germany recorded a decline ingrowth (-0.3%).
Compared to the prior year, unemployment in the euro zone (as defined by Eurostat) went down
to 6.4% (December 2022: 6.6%). Overall, 12.9 million people were unemployed in the euro zone in
December 2023.
According to Eurostat, the annual inflation rate in the euro zone decreased year-on-year from 9.2% in
the prior year to 2.9% in December 2023. Germany had an annual inflation rate of 3.8% in December
2023 according to Eurostat.

Economic environment presents a mixed picture

In the automotive industry, which plays an important role for DEKRA, the number of newly registeredvehicles – according to figures from the German Association of the Automotive Industry (VDA) – rosein all regions of the world, with the strongest increases in Mexico (25.4%), Japan (15.8%), in Europe (EU,EFTA, UK) (13.7%) and the USA (12.4%). Germany recorded a 7.0% rise in newly registered vehicles. The
figures in India and China likewise went up by 8.1% and 11.0% respectively.
In 2023, the economic environment was characterized by recessionary trends, such as the subdued
mood due to global tension and continuing conflicts such as the wars in Ukraine and the Middle East.
In Germany, the manufacturing industry recorded a decline of 1.5% in 2023. However, production inenergy-intensive industrial sectors suffered a far greater decline (‑10.2% in relation to the prior year).
In the Advisory & Training Services and Temp Work divisions, the awarding of contracts in the public
sector plays a relevant part, as does – above all – industry demand for temporary workers. Accord­ing todata from the German Federal Employment Agency (BfA), the number of temporary workers stood at
an annual average of 830,000 for 2022, which is 14,000 more than the preceding year.

Business performanceGroup

At Group level,
sales increased by

8%

Substantial growth once again
Despite the difficult economic and tense geopolitical environment, DEKRA achieved growth once again
in the reporting year. Compared to the prior year, revenues rose by 8.0% to 4,101.4 million euros. A
year-on-year increase was achieved in earnings before interest and taxes (EBIT) which went up from
201.8 million euros to 219.4 million euros.

GSA Region

As of April 1, 2023, DEKRA integrated its business activities in Austria and Switzerland into the new
Region of GSA (Germany, Switzerland, Austria). With this change DEKRA acknowledges the close links
between the three economies and creates the necessary conditions for expanding its business in all
three markets. In the GSA Region, revenues increased from 2,370.5 million euros to 2,557.1 million euros
in the reporting year.

DEKRA Financial Report 2023

19

Sales growth inall
Regions.

Group Management Report › Economic Business Report

The Vehicle Inspection division recorded an increase in the number of general inspections, partly as aresult of expanding its network of inspection facilities. It also expanded its range of services, including
with particle concentration measurements for diesel vehicles, as well as further services relating tofuture mobility. For example, the Company opened new city tracks at the DEKRA Lausitzring racetrackin June 2023. On these tracks, DEKRA tests the safety of advanced driver assistance systems and automated driving features in real-life traffic scenarios, as commissioned by car manufacturers.
The increase in revenues in the Claims & Expertise division can be attributed in part to expert appraisal
reports concerning occurrences of hailstorms as well as other damage appraisal reports which have
now returned to their pre-COVID-19 pandemic level. Another contributory factor is that this division
registered high demand for services relating to pre-owned vehicle management and also in the fieldsof accident analysis and accident research.
The growth in the Industrial Inspection division was mainly achieved through the expansion of businesswith services relating to building technology and plant engineering. There was also a positive trend indemand for services concerning work health and safety, and environmental protection.
One reason for the growth in the Advisory & Training Services division is a positive trend in businesswith corporate customers, as a result of factors including the further digitalization of our range oflearning options, for example in the future field of electromobility, and also due to the obtaining of
qualifications in order to improve the safety culture at companies. Additionally, there was an increasein business with the public sector. Given the favorable job market, there was – for instance – a continuing trend towards obtaining brief or partial qualifications and towards exam prepa­rations. The highdemand for labor in the healthcare sector and in logistics is reflected in a high demand for qualification opportunities. Year-on-year revenue growth was generated by the courses for Germany’s Federal­Agency of Migration and Refugees (BAMF) and by the options for the career-oriented promotion of
language skills.
Despite challenging framework conditions due to the weak economic environment, the Temp Workdivision succeeded in achieving growth. With around 2,100 framework agreements with German customers, this area of business ranks among the top ten HR service providers. The number of temporary
workers in Germany stood at 8,425 in the reporting year (prior year: 10,690).

Central East Europe & Middle East Region

DEKRA recorded revenue of 190.4 million euros (prior year: 167.9 million euros) in the Central East
Europe & Middle East Region.
Business volumes increased in the Claims & Expertise division, mainly due to the acquisition of theremaining 50% stake in a company in Hungary in 2022 and its first-time consolidation in 2023, and also
because of the recovery of the fleet management business, especially in Italy.
In the Vehicle Inspection division, the vehicle inspection business showed positive developments­particularly in the Czech Republic and in Italy.
In the Digital & Product Solutions division, the testing business achieved growth thanks to the expansionof an existing testing laboratory in Hungary and the integration of regional capacities into DEKRA’s
global network dealing with all aspects such as the testing of the electromagnetic compatibility ofcomponents and products.
The Audit division expanded its business in Poland and Italy, through measures such as combining
traditional certification know-how with new services in the field of sustainability.

North-West Europe Region

DEKRA’s sales revenues in the North-West Europe Region increased to 397.5 million euros (prior year:
365.2 million euros). This growth is primarily due to positive developments in the Vehicle Inspection,
Digital & Product Solutions and Advisory & Training Services divisions.
The Vehicle Inspection business division further expanded its network of inspection facilities inDenmark, Sweden and Finland. The figure rose to 176 facilities (prior year: 147). Furthermore, DEKRA
succeeded in increasing its market share in Denmark, for instance, from 12.3% to 14.2%.
DEKRA Financial Report 2023

20Group Management Report › Economic Business Report

In the Digital & Product Solutions division, there was an increase in business concerning the certificationof medical technology products, for example in the Netherlands, due to new regulatory requirements.
Because of its status as a “Notified Body”, DEKRA was able to successfully fulfill the requirements of
its customers.
Thanks to favourable economic conditions and the great importance attached to initial and further
training in Denmark, the Advisory & Training Services division was able to expand its business there.

South-West Europe Region

DEKRA generated revenue of 551.3 million euros (prior year: 535.1 million euros) in the South-West
Europe Region.
The Vehicle Inspection division recorded growth in all countries of the Region, for example in France
and Spain through the acquisition of new facilities. There was also a positive trend in the Audit andAdvisory & Training Services divisions. Both of these divisions were able to expand their businessin France.
The Industrial Inspection division generated slight growth in its industrial service activities. Althoughsales revenues remained slightly below the prior-year level in France, its key market, there was growthin business volumes in Spain.
In the reporting year, the Digital & Product Solutions division recorded growth with its services relating
to cybersecurity, telecommunications and electromagnetic compatibility (EMC).

The Americas Region

The Americas Region achieved revenue growth of 27.1%, taking it to 144.4 million euros (prior year:
113.5 million euros). This growth is primarily attributable to positive developments in the Vehicle­Inspection, Digital & Product Solutions and Advisory & Training Services divisions.
In the Vehicle Inspection division, DEKRA has been carrying out vehicle inspections in Mexico and Costa
Rica since 2021 and 2022 respectively, performed at seven and thirteen inspection facilities respectively
in 2023. The number of vehicle inspections went up in both countries in the reporting year.
The growth in the Digital & Product Solutions division was driven by the certification of medical­t­­ech­nology products for which the Company is a so-called “Notified Body”. To meet the needs of its
customers based on new EU standards, DEKRA brought in more experts to work in this field.
In the United States, the Advisory & Training Services division achieved success with its advisory services
relating to all aspects of improving the safety culture at companies.

The APAC Region

In the APAC Region, DEKRA achieved an increase in revenue to 260.7 million euros (prior year:
244.3 million euros). The Digital & Product Solutions division was the main driving force behind thissuccess. DEKRA increased its range of services in this division in 2023 by taking over Onward Security,a Taiwanese company specialising in cybersecurity testing. In the reporting year, DEKRA was thus able
to expand its business of testing products for end-consumers as well as for the automotive industry.
With respect to the growing field of AI and in the field of AIoT (Artificial Intelligence of Things), in theyear under review DEKRA opened its Greater Bay Area AIoT Testing Center in Guangzhou, China. Thisfacility constitutes an enhanced version of the former Smart Home IoT Testing Center and underlines
DEKRA’s strategic investments in the field of AI.
One further example of DEKRA’s continuing investments in the Yangtze delta region is the opening,in July of the reporting year, of the Phase II expansion of the Shanghai Jiading Acoustic and Vibration
Testing Center, through which DEKRA has further expanded its customer services relating to top-quality
acoustic tests and certification solutions.
Furthermore, in October 2023 DEKRA opened a branch in Ningbo, China, that will assist local and regional
companies in their growth. The new branch operates in the Ningbo high-tech zone and includes astate-of-the-art laboratory for safety and EMC tests, for example on lighting and household appliances.
DEKRA Financial Report 2023

21Group Management Report › Economic Business Report

In the Vehicle Inspection division, DEKRA expanded its service portfolio in New Zealand by adding a
new feature specifically for inspections of heavy-duty trucks. The issuing of fixed inspection appointments means that inspections can be performed in a more productive way for customers. There wasa good response to this new service, which contributed to enabling revenues to reach the same highlevel as the previous year.
In 2023, in the context of focussing on other markets, the Company decided to sell DEKRA Automotive
Pty. Ltd., South Africa, a company that is allocated to the APAC Region.

Overall statement by the Management

The year under review was marked by major political and economic challenges. Nevertheless, by focussing on its customers’ needs and rigorously implementing its corporate strategy, DEKRA remained on a
growth track. The Company expects sales revenues to increase further in 2024 too, as described in theforecast report.

Results of operations, financial position and net assets
Results of operations
Group revenues

worldwide in millions of euros

3,797

4,101

+8%

revenue growth

2022

2023

At 4,101.4 million euros (prior year: 3,796.5 million euros), the DEKRA Group revenues in financial year
2023 were 304.9 million euros higher than the prior-year level, which corresponds to a rise in revenue of
8.0% (prior year: rise of 7.4%). As such this surpassed the goal for the financial year 2023, of achievinga revenue increase in the mid-single-digit percentage range. Earnings before interest and taxes (EBIT)
went up by 17.6 million euros from 201.8 million euros to 219.4 million euros. Due to the growth insales revenues, there was a significant year-on-year increase in EBIT in the reporting year, and the risein costs, particularly personnel expenses, was more than compensated for. The Company therefore­surpassed the target set in the financial year 2022, of achieving moderate growth in EBIT in the financial year 2023.
A 7.7% proportion of the revenue growth is derived from organic growth (prior year: 6.8%). A 0.3% proportion of the revenue growth (prior year: 0.1%) was contributed by acquisitions made in the financial
year and the full inclusion of the companies acquired during the previous year. Changes in exchange
rates had the effect of reducing revenues by 0.8% (prior year: increase by 0.5%).
All of the Regions recorded an increase in revenues in the financial year compared to the prior year. In
absolute terms, the GSA Region made a significant contribution to the revenue growth, recording a riseof 186.6 million euros compared to the prior-year revenues. The Vehicle Inspection, Claims & Expertiseand Industrial Inspection divisions in the GSA Region were particularly successful in achieving considerable year-on-year growth in revenues in absolute terms.
Across the DEKRA Group, it was the services delivered in the Vehicle Inspection, Digital & Product
Solutions and Claims & Expertise divisions which significantly contributed – in absolute terms – to theyear-on-year increase in revenues.
Other operating income, at 47.4 million euros, continued at the prior-year level (47.1 million euros).
The reduced income from exchange rate differences and disposals of tangible assets was compensatedfor by the higher amount of other current income. This mainly relates to income from extra payments
made by employees for company cars, among other things.
The cost of materials rose by a disproportionately high rate of 9.3% in relation to the revenue growth.
This made the cost-of-materials ratio, at 9.3%, slightly higher than in the previous year (prior year:
9.2%).
Personnel expenses rose by 6.6% in 2023 to 2,718.4 million euros (prior year: 2,550.3 million euros); a
disproportionately low rate in relation to the revenue growth. The personnel expense ratio decreased
significantly by 0.9 percentage points in the financial year from 67.2% to 66.3%, mainly due to theincrease in sales revenues.
Other operating expenses went up by a disproportionately high rate of 13.2% in relation to the revenue
growth. They increased to 619.6 million euros, a rise of 72.1 million euros compared to the prior year.
DEKRA Financial Report 2023

22Group Management Report › Economic Business Report

The expense ratio went up by 0.7 percentage points to 15.1% (prior year: 14.4%). This increase is largely
due to the disproportionately high rise in travel expenses, legal and advisory fees, IT costs and otherpersonnel expenses in relation to sales revenues.
The volume of depreciation/amortization increased by 14.6 million euros to 218.7 million euros in thefinancial year (prior year: 204.1 million euros), mainly due to a rise of 5.8 million euros in depreciation
on tangible assets.
EBIT

worldwide in millions of euros

201.8

219.4

+8.7%
EBIT revenues

2022

2023

Earnings before interest and taxes (EBIT) increased by 8.7% to 219.4 million euros (prior year:
201.8 million euros). The return on sales as a ratio of EBIT stands at 5.4% which is slightly higher thanin the previous year (prior-year return on sales: 5.3%).
Compared to the prior year, the financial result went down by 5.3 million euros from -17.9 million to-23.2 million euros. Most of this decrease – an amount of 4.2 million euros – is attributable to higher
expenses from the market price valuation of purchase price liabilities.
Consequently, earnings before income taxes (EBT) went up by 12.4 million euros to 196.3 million euros(prior year: 183.9 million euros). The return on sales as a ratio of earnings before income taxes remained
at 4.8%, the same as the prior-year level (4.8%).
Compared to the previous year, the Group tax rate rose steeply by 6.4 percentage points to 37.6%(prior year: 31.2%). The increase is due in particular to the effect of off-period items. One major portion
derives from the reduction of deferred tax assets on loss carry-forwards.
The consolidated net income for financial year 2023 decreased by 4.0 million euros to 122.4 million euros (prior year: 126.4 million euros) due to the rise in taxes on income amounting to 16.4 million euros
and also due to the decrease of 5.3 million euros in the financial result, which was compensated for by
the rise in EBIT amounting to 17.6 million euros.
Other comprehensive income went down by 209.6 million euros to -72.5 million euros (prior year:+137.1 million euros). This development is mainly attributable to the change in actuarial adjustments
made to pension liabilities, which had an adverse impact of 61.6 million euros on other comprehensive
income (prior year: +150.7 million euros). Moreover, the foreign currency translation reserve changed
by EUR -11.3 million euros (prior year: -6.7 million euros), which was mainly attributable to subsidiaries
in India, South Africa, Taiwan and the USA. The adjustment made to equity instruments measured atfair value through other comprehensive income had a positive impact of 0.4 million euros (prior year:-6.9 million euros) on other comprehensive income. Taking into account expenses and income recognized through other comprehensive income, this results in total comprehensive income of 49.9 million
euros (prior year: 263.6 million euros).
For the purpose of being able to compare the figures, EBIT and EBT for 2023 and 2022 were adjusted
for the following non-operating factors that had a special effect:• systematic amortization of intangible assets identified as part of a purchase price allocation (PPA
amortization),• project costs for the significant improvement of IT infrastructure, as well as for market entry into
new countries or business segments,• restructuring expenses, M&A costs, and integration costs,• earnings from the sale of companies and individual items of tangible assets (property, plant, andequipment), as well as from the subsequent measurement of purchase price components (earn-out
agreements) and from purchase price reimbursements,• foreign currency effects arising from intercompany loans (effect on the financial result),• special effects from the measurement of put-and-call options (effect on the financial result).
The adjusted EBIT of 255.3 million euros was well above the prior-year figure (226.4 million euros). In
the financial year 2023, EBIT was mainly adjusted for project costs relating to the major improvement of
the IT infrastructure and the market entry into new countries or business segments. It was also adjusted
for extraordinary write-downs and transaction costs. The margin for adjusted EBIT went up slightly by
0.2 percentage points to 6.2% (prior year: 6.0%). The adjusted EBT stood at 237.9 million euros in thefinancial year (prior year: 210.5 million euros). This represents a margin of 5.8% (prior year: 5.5%).

DEKRA Financial Report 2023

23Group Management Report › Economic Business Report

Reconciliation: adjusted EBIT and EBT 2023
in € million

+9.1
255.3

+8

+3.1

+0.7

+15

237.9
-23.2

+5.8

Financialresult –unadjusted

Adjustments tofinancial result

EBT 2023
adjusted

-17.9

+2.0

210.5

Financialresult –unadjusted

Adjustments tofinancial result

EBT 2022 –adjusted

219.4

EBIT 2023
unadjusted

Project costs

PPA
amortization

Integration and Restructuringtransaction
costs
costs

Other
adjustments

EBIT 2023
adjusted

Reconciliation: adjusted EBIT and EBT 2022
in € million

+7.8

+0.3

+0.6
-0.8

226.4

+16.7

201.8

EBIT 2022 –unadjusted

Project costs

PPA
amortization

Integration and Restructuringtransaction
costs
costs

Other
adjustments

EBIT 2022 –adjusted

Financial position
Financial management
The Group undertakes a range of financial management activities including cash and liquidity management as well as the management of market price risks (interest, currency) and credit default risks.
Cash management determines the required or surplus cash funds for all DEKRA entities. Timely
account management ensures that the necessary funds for payments are available where they areneeded, with the aim of keeping external investment and borrowing to a minimum.
Liquidity management ensures that all payment obligations of the entities in the DEKRA Group arealways met. To this end, the liquidity planning determines cash flows from operating activities, securesforeseeable liquidity requirements at an early stage and invests surplus liquidity on the money market
or deposits it in bank accounts.
Market price risk management has the task of limiting the impact of interest rate and currency fluctuations on the Group’s earnings. For this purpose, the market price risks are determined and used as abasis for hedging decisions. Such decisions include the selection of hedging instruments, the volume tobe hedged and the period to be covered.

DEKRA Financial Report 2023

24Group Management Report › Economic Business Report

The risk volume involved in the management of credit default risks includes investments in securities
and the investment of liquid funds (cash and cash equivalents) at financial institutions as part of liquidity
management, as well as the credit risk relating to end customers due to the granting and systematic
monitoring of payment terms from trade.
Short-term investments of liquid funds (cash and cash equivalents) are only made at top-rated financial
institutions and on the basis of current rankings by rating agencies, also taking into account current
CDS spreads. We use commercial credit agencies to assess the creditworthiness of our customers, andin cases of doubt we insist on upfront payment or the provision of bank guarantees.
Capital investments
The net capital investments in tangible assets (property, plant and equipment) and intangible assets
amounted to 138.0 million euros (prior year: 133.1 million euros). The Company invested mainly in landand buildings, technical and other equipment, factory and office equipment, as well as in intangible
assets. Investments in subsidiaries and business units amounted to 50.0 million euros in the financial
year (prior year: 6.9 million euros).
Liquidity analysis
The development of the DEKRA Group’s liquidity is largely shaped by the decrease in taxes paid, higher
investments in subsidiaries and other business units compared the prior year, and lower net borrowings.
The cash flows from operating activities went up by 54.6 million euros to 340.9 million euros (prioryear: 286.3 million euros). Contributing factors here include the decrease in taxes paid, which amounted to 22.4 million euros, and the increase in write-downs and impairment losses, amounting to13.2 million euros.
The cash flows from investing activities showed a cash outflow of 149.2 million euros (prior year:
154.3 million euros). The decrease is mainly attributable to higher proceeds from the sale of securities,
amounting to 25.3 million euros, and the repayment of fixed-term deposits, amounting to 11.9 million
euros. This was countered by the effect of the higher investments in subsidiaries and other business
units, which – at 50.0 million euros – were higher than the prior-year figure of 6.9 million euros.
The cash flows from financing activities showed a cash outflow of 205.1 million euros (prior year:
223.8 million euros). This development is mainly attributable to lower cash outflows for the repaymentof financial loans, amounting to 82.9 million euros (prior year: 104.7 million euros), and to the increasein loans taken out, amounting to 51.2 million euros (prior year: 29.8 million euros).
As a result, cash funds (consisting of cheques, cash on hand, bank balances and cash equivalents) went
down by 17.6 million euros to 119.0 million euros (prior year: 136.5 million euros).

Net assets and capital structure

The balance sheet total increased by 70.0 million euros to 2,882.4 million euros in the financial year
(prior year: 2,812.4 million euros).
Though non-current assets increased by 88.9 million euros to 1,937.4 million euros (prior year:
1,848.5 million euros), there was also a decrease of 18.9 million euros in current assets to 945.0 million
euros (prior year: 963.9 million euros).
The increase in non-current assets is due to several factors. Tangible assets (property, plant andequipment) went up by 24.3 million euros to 508.6 million euros (prior year: 484.3 million euros), whichis largely attributable to the increase in other equipment, furniture and fixtures, as well as advancepayments on account and assets under construction. Furthermore, goodwill increased by 21.8 million
euros to 652.5 million euros (prior year: 630.7 million euros).

DEKRA Financial Report 2023

25

Group Management Report › Economic Business Report

The increase of 12.5 million euros in non-current financial assets to 108.9 million euros (prior year:
96.4 million euros) is primarily due to the increase in shareholdings in non-consolidated companies
that are measured at their fair value in accordance with IFRS 9. Moreover, there was an increaseof 18.5 million euros in deferred income tax assets, largely due to the remeasurement of pension­obligations recognized through other comprehensive income.
The decrease of 18.9 million euros in current assets arises from multiple factors including the decreaseof 17.5 million euros in cash and cash equivalents to 119.0 million euros (prior year: 136.5 million euros),
as well as the decrease of 25.1 million euros in current securities to 0.9 million euros (prior year:
26.0 million euros) and the decrease of 13.1 million euros in receivables from the shareholder to
0.1 million euros (prior year: 13.2 million euros). These factors were countered by 32.6 million euros
increase in trade receivables to 583.5 million euros (prior year: 550.9 million euros) and by the assetsthat were classified as held for sale for the first time in 2023 (13.1 million euros).
Equity decreased by 20.0 million euros to 1,133.5 million euros (prior year: 1,153.5 million euros). The
profit transfer to DEKRA e.V., Stuttgart, of 94.8 million euros (prior year: 61.7 million euros) had a reducing
effect, as did the remeasurement of pension obligations recognized through other comprehensive
income and amounting to -61.6 million euros (prior year: +150.7 million euros). These factors werecountered by the consolidated net income for the year of 122.4 million euros (prior year: 126.4 million
euros) and the addition of 25.0 million euros to the capital reserves by DEKRA e.V., Stuttgart, (prior year:
10.0 million euros). The equity ratio thus went down to 39.3% compared to 41.0% in the previous year.
Non-current liabilities increased by 28.5 million euros to 685.9 million euros (prior year: 657.4 million
euros). This results mainly from the following opposing factors. Provisions for pensions and similar
obligations went up by 72.3 million euros due to an increase of 106.5 million euros in the present valueof pension entitlements, together with a drop of 34.2 million euros in plan assets. There was a drop of
21.7 million euros in non-current bank liabilities to 64.2 million euros (prior year: 85.9 million euros).
Furthermore, the reclassification of a purchase price liability from non-current to current liabilities,
amounting to 18.5 million euros, and the decrease of 7.2 million euros in lease liabilities to 292.9 million
euros (prior year: 300.1 million euros) led to a decrease in non-current financial liabilities. The current
and non-current liabilities are mainly denominated in euros.
Current liabilities increased by 6.1% from 1,001.5 million euros to 1,063.0 million euros. This primarily
results from the rise in other current liabilities.
The DEKRA Group requires sufficient liquidity scope for future capital investments, which is ensured by
the promissory note loans taken out and by longer-term loan commitments. As of December 31, 2023,
there are credit lines of 416.3 million euros (prior year: 413.8 million euros) granted in writing that have
not yet been drawn.

Summary assessment of results of operations, financial position and net assets

In spite of the difficult worldwide economic environment, the results of operations of the DEKRA Group
continued to be very robust in the financial year 2023. The development of sales and earnings surpassed
expectations for the financial year. The net assets and financial position allow sufficient scope for theGroup to pursue its goals.

DEKRA Financial Report 2023

Risk,
Oppor­tu­nities,
and Forecast Report
26
27
36
37

Risk, Opportunities, and Forecast Report
Risk report
Opportunities report
Forecast report

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Group Management Report › Risk, Opportunities, and Forecast Report

Risk, Opportunities, and Forecast Report
Risk report
Integrated risk management process – structured handling of risks

DEKRA has established and expanded its strong risk management culture which forms the basis for
management processes and an effective risk management system. This culture is evident in how Management and staff conduct themselves in the event of actual critical risk incidents, and also informs
the fundamental procedure for handling risks in the Company’s operating areas and strategic businessareas. Creating and promoting an adequate awareness of risks (through training sessions, workshops)
within the Group and throughout its entire organization makes it possible to detect and communicate
risks at an early stage and to initiate prompt action.
The risk management system as an integral part of the Group’s corporate governance has proved its
worth and is continuously undergoing further development (gross-net evaluation, training sessions).
Its integration into management processes and day-to-day business, together with action control(the control of measures) and ad-hoc reporting, are key components of the process. Risks relating tosustainability and climate change are also examined and taken into account when carrying out therisk inventory.
To be able to guarantee the effectiveness of the internal control and risk management systems, theGroup continuously further develops its risk management through monitoring and improvement processes. This process is continuously adapted in response to changes in legal and economic conditions,taking into account internal and external requirements. DEKRA consults the IDW Auditing Standard
PS 981 as a guide for the current standards and for compliance with generally accepted standards forrisk management systems. DEKRA follows the IDW Auditing Standard PS 340 for the early detectionof risks within the framework of the risk management system. The resulting findings are reported to
DEKRA’s Management Board (on a monthly basis) and to its Advisory Board and Supervisory Board (on anannual basis). The integrated risk management process consists of the following three sub-processes:
Risk management process

Ad-hocStrategic
Short-term/medium-term

The risk inventory for short-term/medium-term risks and operational risks is performed for a multi-year
period (the current financial year and two subsequent years). For each operational risk, the possible consequences are pointed out for the current and the two subsequent years, if applicable and appropriate.
Strategic risks and opportunities of a cumulative nature are recorded in a separate risk inventory which
considers long-term risks that have a time frame of four or more years. The Management Board attaches
great importance to strategic risks because these can also represent major opportunities.

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Group Management Report › Risk, Opportunities, and Forecast Report

Risks are defined as a negative deviation from the defined planning figures. If risks have alreadybeen recorded in the planning or in the forecast for the current year, they are not included in the risk
inventories. Internal ad-hoc risk management – involving a reconciliation with the forecasting process
for particularly urgent matters – is an instrument that is used as a means of communication andcontrol within the DEKRA Group.
Moreover, regular controls take place, as well as review and adjustment of the effectiveness of measures.
Additionally, we continuously reconcile all of this with the Company’s risk appetite and risk-bearing
capacity. Risk appetite is defined as a basic willingness to take risks in order to achieve the desired goals
and gains. Based on this – and taking the corporate strategy into account – the Group lays down its levelof risk tolerance for the risk management system. This is the maximum tolerated deviation from theintended objective. This can be carried out by stating quantitative materiality thresholds or qualitative
criteria and can be measured in line with the achievement of objectives.
The Company’s risk-bearing capacity functions as the starting point for calculating the risk appetite andrisk tolerance of the risk management system. The risk-bearing capacity means the maximum degree ofrisk that a company can take without jeopardizing its continued existence as a going concern (according
to IDW Auditing Standard PS 340). It depends on a company’s economic situation, size and potential for
raising capital. DEKRA calculates the risk-bearing capacity on an individual and detailed basis at company level, at national and regional level, and at Group level. This provides a comparison of the overall risk
with the financial resources available to cover risks (the so-called cover pool), meaning the economic
capacity of the Company’s net assets, financial position and results of operations that serves to limit the
impact of risks if they occur. A strong equity base, sophisticated business models, a broadly structured
portfolio, dividend payout policies and a solid financing structure all serve to safeguard a company’s
risk-bearing capacity.
The risk inventories and the ad-hoc reports are a key component of the action management and action
control by the Management Board and the responsible managerial levels. This is the basis on which theManagement Board conducts qualitative and quantitative risk management. Risk management encompasses the avoidance of risks, risk mitigation, the sharing or transfer of risks, and risk acceptance.
The process also covers the DEKRA matrix of Regions and Service Divisions as well as its Steering & Support functions, so that potential risks with a need for action can be identified, processed and controlled
at the affected levels. The risk management process is used in day-to-day business for all processesof the internal control system and the cash and performance management system. Here, too, thefocus is on the course of action (measures) and action control, as well as on managing opportunities inalignment with the Company’s risk appetite, risk-bearing capacity and business development. Businessdevelopment is an important component based on corporate strategy with regard to the implementation/realization of opportunities and the reduction of risks within the framework of action control.
The key figure for operational risks is the expected damage figure. The expected damage figure (gross)for individual risks is calculated by combining the likelihood of risks actually occurring and the damage
potential for the financial year concerned. This process of quantifying risks is carried out at local company level, and there is no such process beyond that at Group level.

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29Group Management Report › Risk, Opportunities, and Forecast Report

Categorization of risks
Damage potential as % of revenues

critical> 0.6very high> 0.35–0.60

moderate> 0.15–0.35

low> 0.05–0.15

very low> 0–0.05
very improbable
0–< 10

improbable
10–<25possible25–<50probable
50–<75very probable
75–100

Probability of occurrence in %Urgent need for action

Need for action

Need for action under certain circumstances

No need for action

Qualitative risks are taken into consideration, particularly in the field of quality management, internal
audit and sustainability management. The possible impact on the achievement of corporate strategic
goals and on DEKRA’s reputation is also taken into account here.
In the current financial year the Company newly implemented a qualitative assessment of risks for assessing corporate strategy risks. In workshops involving the Regions and Service Divisions, all divisions
analysed their central risks, both individually and in relation to each other, and allocated these risks
to pre-defined categories. Moreover, they worked on suitable risk mitigation measures. The results ofthese assessments form the basis for managing and monitoring long-term risks, which is why theirfindings are matched with the Group strategy and considered on an ongoing basis.
The Management Board and also the responsible managerial levels are regularly informed about thecurrent risk situation, any changes to it, and any countermeasures. On this basis, risks, opportunities
and countermeasures are controlled in qualitative and quantitative terms by the Management Board,and the effectiveness of the course of action is reviewed. This action control ensures that the management of risks, in terms of how they are mitigated and handled, is a permanently ongoing process.
Additionally, the situation is reconciled at regular intervals with business development (investment
management) as a central component of opportunities management.
The findings from the risk management process are incorporated into the controlling, reporting andbudget process. Via the IT-based risk management system and the digital dashboard, the data is at
all times accessible to all of the people who are actively involved. This automated process greatly
enhances the visibility of the existing risks, their perception and their relevance, with swift access to
the relevant data guaranteed at all times. Each of the risk management system’s three sub-processes
is now available in the form of a digital dashboard, which makes it possible to ensure ongoing risk
control, communication and monitoring.

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30Group Management Report › Risk, Opportunities, and Forecast Report

Below, we present the risks existing at balance sheet date which have an associated need for action.
Taking into account the risks recorded in the planning process, on the whole the overall potential risk
exposure has remained stable in relation to the prior year and is manageable in light of the existing andinitiated measures. These measures are recorded separately according to their effectiveness and aretracked in the action control system.
A transparent presentation and ongoing monitoring of the risks and measures laid down in the risk
inventory ensure that manageable risks can be entered into. The prerequisites for bearing such risks
are DEKRA’s risk appetite, risk tolerance and risk-bearing capacity.
The financial impact of the risks reported by its local entities and the Group’s risk-bearing capacity are
analyzed regularly. Furthermore, the countermeasures introduced are reviewed for their effectiveness and adjusted if necessary. The Group’s risk-bearing capacity is ensured against the background of
its overall risk scope, coverage potential, dividend policy, liquidity, rating and creditworthiness. Basedon the reported risks and the measures that are in place, the impact is manageable.

Operational risks

Potential future developments or events are considered to be operational risks if, with regard tobusiness activities, they could lead to a negative or positive deviation from the operational objectives
derived from the Company’s strategic goals.
Disruptive technologies – particularly in the field of classic vehicle inspections – constitute an operational risk which is currently deemed critical and requiring urgent action. To overcome this risk we are
implementing measures including the introduction of new technologies, and making investments in
product development with respect to vehicle inspections.
Political, regulatory and economic conditions are very important to DEKRA’s success as an expert
organization with global operations. Changes in the business environment may give rise to sales andearnings risks. At the present moment in time these risks are deemed to be moderate (with a needfor action). As such DEKRA closely and continuously monitors markets, sectors and globally changing­circumstances – with particular consideration of whether and how the development of technology
could cast doubt on existing business models.
The intense competition and changing technologies in the Vehicle Inspection division nonetheless giverise to a moderate risk (with a need for action) because price rises can only be passed onto customers
to a limited extent. DEKRA lowers this risk by constantly improving productivity through optimized
processes and new technologies to ensure more road safety and fewer road fatalities.
The delivery of services in the Advisory & Training Services and Temp Work divisions is particularly
dependent on the economic climate. In both of these Service Divisions, sales and earnings may beaffected by fluctuations in orders caused by general economic developments. This risk became evident
in the past year, particularly in the GSA and the Central East Europe & Middle East Regions. In response,
DEKRA is resolutely countering these risks, which it classifies as moderate (under certain circumstanceswith a need for action), by tapping into new markets, broadening its service portfolio and offering customized services. New statutory regulations may lead to moderate risks (under certain circumstanceswith a need for action) in the Temp Work division. DEKRA is responding to regulatory interventions in
the employee leasing markets by building up its business with key accounts and investing in its position
as a provider of quality.
The business with automotive services is fundamentally exposed to the regulatory risk of changes
in the law. These would potentially affect the following Regions most of all: GSA, South-West Europe,
North-West Europe and Central East Europe & Middle East. At the present moment in time, this risk isdeemed to be low (under certain circumstances with a need for action).
Expectations with respect to the economy also determine how willing DEKRA’s industrial customers are
to invest. In the event of actual or suspected economic uncertainty, there is an increased risk of ordernumbers falling. This affects the services in the Digital & Product Solutions and Industrial Inspection
divisions, for example, and the Regions of North-West Europe, GSA, APAC and the Americas. In terms of

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31Group Management Report › Risk, Opportunities, and Forecast Report

the likelihood of this risk actually occurring and the associated potential damage, this risk is classified
as low, with a need for action under certain circumstances. To counter this risk, DEKRA is expanding its
service portfolio and further globalizing its business.
In some isolated cases, there were also inflation risks which are implicitly included in the risks reported.
Based on current developments, however, other non-quantified short-term and medium-term inflation
risks can be seen which also relate to the subsequent years 2024 and 2025 and which may constitute amajor portion of the Group’s overall risks.
With a view to current developments worldwide, the Management Board believes that it is possible thegeopolitical situation could worsen further, causing risk exposure to be higher than the risk potentialof 4.4 million euros that the local companies reported for 2024. At present, it is not possible to makea financial estimation about the further-reaching potential of geopolitical risks.
For the year 2024, leading institutions and economists predict that the German economy will shrink.
Furthermore, there is a fundamental danger that some of the markets in which DEKRA operates will experience an economic downturn or recession. DEKRA constantly keeps its eye on current developments andtakes them into account in its actions and decisions. It seeks to counter the associated risk by making
targeted investments. To conclude, at the moment it is not possible to give an all-encompassing quantified assessment of the risks of recession, given the current backdrop of interest rate policies, inflation,and geopolitical implications.
The currently most relevant operational risk exposure reported by the Group‘s local entities concerns
business environment & sector risks and/or market risks and macro-environmental risks. Currently,
the risk categories below are regarded as the greatest risk exposures for DEKRA’s EBIT and are listed
together with their theoretically expected damage figures. (No further-reaching quantified assessmentof risks is performed at Group level.)• Amendments to European regulations in particular (4.5 million euros; prior year: 4.5 million euros)• Disruptive technologies (general inspections, expert appraisal reports) (34.3 million euros; prioryear: 25.0 million euros)• Competition risks (8.0 million euros; prior year: 8.0 million euros)• Shortage of skilled workers (7.8 million euros; prior year: 5.0 million euros).
• Price and inflation risks (31.9 million euros; prior year: 34.8 million euros)• General economic risks, energy supplies (0.0 million euros; prior year: 2.5 million euros)• Impact of pandemics (4.7 million euros; prior year: 25.0 million euros)• IT and cybersecurity risks (2.4 million euros; prior year: 2.4 million euros)• Geopolitical crises and supply chain difficulties (4.4 million euros; prior year: 4.4 million euros)• Sundry operational risks (5.0 million euros; prior year: 0.0 million euros)
On the whole, the risks with a need for action add up to a total theoretical expected damage figureof 103.0 million euros in 2023 (prior year: 111.6 million euros). The decrease from the previous year is
primarily because there are fewer risks relating to the implications of pandemics (COVID-19). On theother hand, there is an increase in risks relating to disruptive technologies. Disruptive technologies andnew competitors increasingly pose strategic risks, though they also present significant opportunities.
We have initiated appropriate measures (action control system, workshops).
According to our assessment, the overall risk situation with regard to the operational risks in relation
to the year-end net result, EBIT and operating cash flows falls within an entrepreneurial risk frameworkthat is normal for DEKRA. It is reviewed regularly and reconciled with the Company’s risk appetite,courses of action, projects and planning, as well as its risk-bearing capacity. From the Management
Board’s point of view, the Company’s long-term existence is safeguarded through strong, sustainable,
performance-oriented and cash-flow-based corporate management. The action control that is partof the risk management system is integrated into the day-to-day business and the processes of theinternal control systems.
The risk structure (risk profile) of the coming years and the spread of risks over the years from 2023
through to 2025 – including in comparison with the assessment from the prior-year period – is stable
and manageable, given the existing and initiated measures. These measures are recorded separately
according to their effectiveness and are tracked in the action control system.
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32Group Management Report › Risk, Opportunities, and Forecast Report

Corporate strategy risks

Potential future developments or events are considered to be corporate strategy risks if they could leadto a negative or positive deviation from the Company’s defined strategic goals. Accumulative opportunities and risks can simultaneously have a positive and negative effect on different Regions and/or
Service Divisions.
With its organizational model “TOM 2020” (six Regions, seven Service Divisions and Steering & Support
functions), DEKRA is able to make even better use of growth opportunities. Based on the operationalrisk assessment, which mainly reflects the short-term and medium-term risk inventory for the current
financial year and the two subsequent years, the corporate strategy risk inventory is carried out (inthe long term; time frame of four or more years subsequent to the risk inventory cut-off date) with anaccumulative impact at the regional level and/or the Service Division level.
The most relevant corporate strategy risk exposure continues to be in market risks. Moreover, othernotable risks in this respect relate to regulatory amendments, whereas in the previous year there werestill increased risks inherent in the services/product life cycle/commodity segments. The corporate
strategy risks are categorized as follows:• Digitalization/Data access/Artificial intelligence• New technologies• New competitors• Services/Product life cycle/Commodity• Regulatory changes• Markets
The introduction of the new qualitative assessment of corporate strategy risks and workshops for the
Regions and Service Divisions facilitates even better and more purposeful collaboration between the
different divisions. It also includes jointly developing and drafting measures relating to the corresponding risks.
When performing the qualitative assessment of risks, the Regions and Service Divisions classify thesein terms of “low”, “moderate”, “high” or “critical”. The findings are aggregated and serve as a basis forstrategic decision-making and the long-term focus of the Group.
The corporate strategy risks in the field of digitalization in particular were identified as being criticalthroughout the various Regions and Service Divisions. In the realm of strategic risks, just as in the caseof operational risks, business relating to automotive services is fundamentally exposed to the regulatory risk of changes in the law. This risk, which is most relevant to the GSA Region and also the Service
Divisions of Claims & Expertise and Vehicle Inspection, was classified as critical. Given the importanceof these business divisions and their respective size within the Group, the Management Board has
attached a high level of significance to these strategic risks; also because they can present considerable
opportunities. Appropriate action (development of innovative services, strengthening of the project
portfolio) has been initiated and will be continuously expanded and monitored. We regularly reconcile
this with the Group’s strategy process and the Service Divisions’ projects.
The legal framework conditions in non-European countries differ from the conditions in Germany andEurope. As a result, the ongoing globalization of business carries liability risks and risks to the Group’s
reputation (as a component of competition risks). That is why DEKRA is constantly working to enhance
its risk and compliance management activities. This includes responding to changing circumstances bymaking continual adjustments to the liability protection provided by insurance policies.
The risk that our increased focus on internal networking and greater proximity to the customer could
fail is seen to be an ever-present issue these days and as such is perceived as a risk. This assessment
is based on the project management surrounding the introduction of the organizational model whichhas, in DEKRA’s view, proven its value.
DEKRA is also continuing its policy of organic growth supplemented by targeted acquisitions. Making
strategic acquisitions enables DEKRA to broaden its base in terms of both expertise and geography.
However, the integration of acquired companies can fail or be delayed. It can happen that budgets are

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Group Management Report › Risk, Opportunities, and Forecast Report

not met, and synergy effects remain unfulfilled. The organizational model for the Regions means thatsuch risks can be tackled and mitigated with adequate focus.
The strategic risk report also covers, to a large degree, the topic areas arising from strategic opportunities. These opportunities are reviewed on a regular basis and reconciled with the business development (investment management) because – taking the related measures into account – they can have anegative or positive impact (opportunity).
Overall, DEKRA counters corporate strategy risks through project, performance and integration management. The Group regularly reconciles these with its Strategy 2025 which sets out the strategic focus.
In DEKRA’s view all strategic risks are currently manageable in light of the corresponding measures andinvestments as well as the ongoing and planned business development projects; otherwise they also
constitute opportunities from the Group’s point of view. The sum total of all the strategic risks does notendanger the Group’s continued existence as a going concern.
Below we present a summary of selected operational and corporate strategy risks.

Economic performance risks

Accreditations and official authorizations are important factors on which DEKRA’s success depends. ­Risk management is of key importance in this regard. With its internal control system for safeguarding
service quality and by means of insurance policies already in place, DEKRA reduces risks that may arise
in terms of liability for its testing, expert appraisal reports, certifications and seals. Moreover, risks
arising from missing or amended official authorizations are identified by continuously reviewing thesector’s standards and the law. By doing this we are able to identify legal changes and amendments
to normative standards at an early stage, and to make prompt adjustments to DEKRA’s services. A particularly important consideration in this context is that it often takes time and effort for employees toobtain the appropriate qualifications; the necessary technical equipment also needs to be planned andprovided in a timely manner.
In Germany, national requirements for the general inspection of vehicles stipulate that testing andmeasuring equipment must be regularly gauged, calibrated and unit-tested in accordance with various
different standards. There must be proof that the services to be audited by DAkkS [a German accred­itation organization] are consistently in conformity with ISO. This applies equally to calibrations andinformation provided by car repair garages.
DEKRA has sufficiently developed all the necessary calibration processes to the extent that their accreditation by DAkkS has been successfully concluded. The measures needed for further adjustments to theaccredited calibration processes and for the full implementation thereof have been initiated.
One element in identifying and assessing accreditation risks, internal process risks and risks arising frommonitoring the compliance of internal basic processes on a worldwide scale is the control self-assessment
process. This is carried out along with the risk management surveys, resulting in the aforementioned risk
inventory which summarizes and evaluates internal process risks and market risks.
Thanks to its extensive precautionary and risk mitigation measures, DEKRA believes that it is wellequipped to deal with the risk of accreditation-based authorizations being revoked.

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34Group Management Report › Risk, Opportunities, and Forecast Report

Personnel risks

The ongoing digitalization and globalization of the workplace, demographic change, political andeconomic events, rising inflation, and the energy crisis are all factors that continue to influence themanner in which companies operate, DEKRA included. In terms of human resources, this gives rise to
the following risks: Firstly, the increasing shortage of skilled workers (we refer to the summary of risk
categories for an assessment of this as a component of operational risks) and the connected problemof finding qualified staff. Additionally, the challenge of retaining existing employees at the Company
and ensuring their further advancement. DEKRA’s workforce is our most important asset, because it ismade up of the people who deliver the services that we offer to customers worldwide. Their expertiseis key to the success of our Company. On that basis, strengthening our workforce is the key issue atthe centre of our HR strategy. In the medium and long term we will therefore be concentrating on thefollowing strategic topics: Corporate Culture, Leadership, Talent Management, Employee Experience,
Digitalization, Operational Excellence, and Structure & Foundations.
In doing so, we not only address precisely those topics that are of interest and relevance to our employees, but – looking outwards too – we also strengthen our brand as an employer. More and more
importance will be placed on continually focussing on establishing a common and uniform employer
brand for the Company, so that in future too, it continues to be perceived as an appealing employer on
the job market. In 2022, we already took the first steps in the HR transformation process to establish
worldwide a uniform corporate structure in our HR organization. We continued on this journey withgreat success in 2023. We had already established the basis for a global HR organizational structure byappointing a global interim HR leadership team as well as establishing a Center of Excellence (CoE) andglobal HR operations.
By analyzing the reasons why staff members hand in their notice, we aim to help counteract local fluctuations and support the individual national subsidiaries in recruiting qualified staff. We will continue toinvest in creating an appealing employer brand under the skilled leadership of the Global Talent Acquisition unit. With the introduction of “evolve Performance Management” (ePM), we are supporting dialogue
between employees and managerial staff and also helping them to develop performance-based thinking.
Building on this, in 2023 we successfully introduced an “Organisational Talent Review” (OTR) process
to purposefully identify key positions, talents and people with high potential in the Company who canthen be nurtured and helped to advance further. These measures contribute towards our employees’
individual career development, thus serving to retain talent within the Company.
Moreover, we also invest in the continuous further advancement of our managerial staff, who are
critical in shaping the corporate culture of our Company. According to studies, they have a seventy
percent influence on employees’ commitment and the retention of staff. For that reason, this year
we carried out a feedback process and standardized assessments for all managerial staff, together withtraining measures to support the concept of a high-performance culture. The fourth global engagement
survey, recently conducted throughout the entire organization shows that our measures are leading
to improvements in the whole Company.

IT risks

We devise appropriate countermeasures to deal with the existing IT risks (we refer to the summaryof risk categories for an assessment of these as a component of operational risks). As the first lineof d­ efence, in our operations we respond promptly and purposefully to current events and politicalsituations that may pose a threat. The operational safeguarding of our day-to-day business is ensured
by the Command & Control Center, an IT crisis center which operates 24/7. This is supplemented by theprovision of automated assessment of operational risks and the proactive designing of countermeasures.
In the current challenging environment, information security and cybersecurity are a mainstay for acompany like DEKRA that operates in more than sixty different countries. Moreover, employee awareness is a key issue for information security and cybersecurity; we organized training courses to meetthat need. To raise our employees’ awareness, we additionally staged a “Cyber Month” in October 2023,
as well as global phishing campaigns.
A greater number of attacks was recorded this year – not only involving the traditional methods, butalso using new methods such as QR code phishing. Because of the technical measures already in place

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35Group Management Report › Risk, Opportunities, and Forecast Report

and the high level of employee awareness, we were able to counteract these attacks. Our global cyberdefence team uncovers, analyzes and monitors potential weaknesses and works together with therelevant services or system owners to promptly remedy such vulnerabilities. DEKRA has taken action
to counteract any threats.
Once again, DEKRA SE successfully passed the Trusted Information Security Assessment Exchange(TISAX) audit. The TISAX label shows that DEKRA is – and will remain – a reliable business partner.
In addition, this year DEKRA SE also successfully passed the internationally recognized ISO 27001:2022
certification audit.

Financial business risks

DEKRA protects itself against the risk of bad debts and late payments by means of active customer andcontract management, global key account management and careful credit rating checks. As most of
DEKRA’s transactions are concluded in euros, the exchange rate risk is low (under certain circumstanceswith a need for action). The Group’s borrowings primarily constitute bank loans and promissory noteloans taken out and loan commitments from banks.
Collateral and guarantees have been granted in the amount of 16,980 thousand euros (prior year:
7,813 thousand euros). The risk of a claim being made on these is currently deemed to be low ­(under certain circumstances with a need for action). If a claim is made on the guarantees, they falldue ­immediately.
The liquidity scope required for the operating business is secured by means of liquid funds (cash andcash equivalents) and through lines of credit committed to DEKRA SE by banks. The central cash pool isused to control the liquidity and supply of the national – and increasingly also the international – subsidiaries. This results in a transparency which prevents potential risks. Short-term investments of liquid
funds (cash and cash equivalents) are only made at top-rated financial institutions and on the basis ofcurrent rankings by rating agencies, also taking into account current credit default swap spreads.
The risk of DEKRA in future being unable to fulfill its payment obligations arising from financial­instruments is also classed as low (under certain circumstances with a need for action).

Overall assessment of the Management Board concerning risks to the Group’s ability
to continue as a going concern

Increasingly, there are significant risks but also opportunities inherent in new technologies andgrowing digitalization; against this backdrop there is also always a risk of new competitors emerging.
This development was accelerated by the impact of the COVID-19 pandemic. In response, as well as
adjustments to the processes and cost structures, measures to be implemented include the associatednecessary adjustments to the business models/business divisions and the connected investments.
The risk structure, as well as the risk profile and the spread of risks at the individual companies and in
the Group, are stable and limited by the defined measures. The Group has a capacity to bear risk. The
extent of this capacity is regularly reviewed in the context of its risk appetite and business development(investment management).
The risks are currently manageable on the basis of the projects, measures and investments (businessdevelopment) that have been initiated and planned, and in light of the opportunities available to
DEKRA. The Management Board deems the sum total of all risks to be justifiable in relation to equity
and financial strength, against the background of the Group’s risk appetite. On the grounds of theCompany’s strong equity, its sophisticated business models, the broad spread of its portfolio, its­dividend policy and its solid financing structure, the sum total of the individual risks does not endanger
the ability of DEKRA to continue as a going concern.

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36Group Management Report › Risk, Opportunities, and Forecast Report

Opportunities report
Business environment and sector opportunities

The TIC (Testing, Inspection, Certification) sector continues to develop at a fast pace thanks to digital innovations and a heightened awareness of climate change. New technologies are transforming traditionalmodels and are improving the provision of services, quality assurance and the fulfillment of compliancestandards. The industry is striving towards CO2 neutrality and is gearing its business models towards
sustainability. Moreover, the concepts of Industry 4.0 and Society 5.0 present opportunities but also pose
ethical and social challenges. These trends, coupled with stricter regulatory standards and a greater­political focus on sustainable practices, are the factors behind the TIC sector’s expansion. The highexpectations of safety that consumers have of their technology-based and data-assisted undertak­ings
open up entirely new growth opportunities for the TIC sector on a worldwide scale.

Positioning in the future markets
of automotive, cybersecurity, AI
as well as sustainability.

DEKRA is in a good position to benefit from this transition and is concentrating on growth sectors suchas future mobility, cybersecurity and AI, as well as sustainability. These sectors represent more thanjust the transition which is happening in the economy and in society; based on developments such as
virtual reality, blockchain and intelligent sensors, they will also determine new testing, inspection andcertification protocols, thereby defining the digital TIC landscape of the future.
Drawing on almost one hundred years of experience in vehicle inspection, DEKRA is well-positioned forthe task of ensuring safety in a world of increasingly connected and intelligent mobility. Our Company,
which is designated as an official Technical Service Office by Germany’s Federal Motor Vehicle Office [inGerman: Kraftfahrtbundesamt] has already gained a foothold in the automotive cybersecurity marketof the future, with a focus on connected and automated driving.
In the consumer goods markets, technologies such as 5G and the Internet of Things (IoT) are heightening the requirements for cybersecurity. DEKRA meets this challenge with its customized services,and has already launched the first generation of testing services to ensure the safety and security of AI
solutions, thereby positioning itself for growth in this sector.
Ever since DEKRA defined sustainability as a core business area, the Company has been geared towards
ESG (environmental, social and corporate governance) criteria and in this area has an offering which
includes sustainability assessments and certifications.

Information technology opportunities

DEKRA is aware that digital technology has a crucial role in the redefinition of the traditional paradigms
in the TIC sector. On the basis of innovation and top-quality services, the Company perceives opportunities for achieving greater customer satisfaction and growth, on the grounds that the strategic focus
on digital processes and services improves the quality of services and reduces operating costs.
DEKRA offers its services with the goal of ensuring safety, security and quality in a world in which
technology is constantly evolving further. With the help of our Company, customers can not only adapt
to a digital future but can also benefit from a business environment in which technology coexists withsafety and security.

Corporate strategy opportunities

DEKRA endeavours to continually enhance its services in order to meet the changing needs of its
customers and stay one step ahead of its competitors. Future mobility, sustainability and cybersecurity
are among the key factors presenting strategic opportunities. They are interconnected and they are
all associated with the digitalization and transformation of the global economy. A further opportunity
can be found in building on interdisciplinary technologies such as artificial intelligence and remotetechnology, which are gaining significance in all service sectors. We see growing demand in these areasand perceive potential for dynamically strengthening our global market position by carefully adapting
to the needs of selected regional markets.

DEKRA Financial Report 2023

37Group Management Report › Risk, Opportunities, and Forecast Report

Forecast report
Weaker growthWith regard to the world economy, no new growth impetus is expected in 2024. Against the backdropof wars and economic crises, the International Monetary Fund (IMF) anticipates that global gross domestic product will grow by 3.1% (prior year: 3.1%). While growth of 4.1% is expected in the developing
and emerging countries, the euro zone is expected to see growth of 0.9% and the USA 2.1%. India andChina are likely to record the strongest growth (6.5% and 4.6% respectively).

Global partner for a safe andsustainable world by2025

In view of DEKRA’s good position in existing and future markets, the Group expects that its growthtrend will continue. Revenue is expected to increase at a mid-single-digit rate in financial year 2024.
Growth will primarily be of an organic nature, supplemented by selective takeovers. Furthermore, amoderate increase in EBIT is expected for 2024. To achieve this, DEKRA will further expand its activities
in business sectors that have greater potential for returns, will exploit synergies within and between
its divisions, and will continue to optimize the global structures and processes sales, in the Service
Divisions and its Steering & Support functions.
The continuing positive development of the Company in spite of the challenging environment confirmsthat we – the workforce and the Management Board alike – are on the right path with our “Vision2025”: By 2025, when DEKRA celebrates its centenary year, we intend to have extensively digitalized ourservice portfolio and to be the global partner for a safe, secure and sustainable world.
Stuttgart, March 28, 2024
DEKRA SEThe Management Board

Zurkiewicz, Chairman

DEKRA Financial Report 2023

Finke

Laursen

Linsenmaier38

Consolidated
Financial
Statements
39
40
42
43
45
107
111

Consolidated Statement of Comprehensive Income
Consolidated Balance Sheet
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Independent Auditor‘s Report
Report from the Chairman of the Supervisory Board

DEKRA Financial Report 2023

39

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

DEKRA SE
Consolidated Statement ofComprehensive Income for the
Financial Year 2023
in € thousand
Revenues

Note

2023

2022

5.1

4,101,442

3,796,536

Increase in work in process

1,220

1,110

Own work capitalized

9,406

9,698

Other operating income

5.2

47,35347,141

Cost of materials

5.3-383,299-350,846

Personnel expenses

5.4-2,718,397-2,550,253

Other operating expenses

5.5-619,596-547,521

Amortization/depreciation of intangible assets,right-of-use assets and tangible assets(property, plant & equipment)

5.6-218,701-204,075

Profit/loss from financial assets measured at equity

5.7

-53

-377

Interest income

5.7

17,276

14,957

Interest expense

5.7-39,090-28,923

Other financial result

5.7-1,285-3,537

Financial result

5.7-23,152-17,880

196,276

183,910

Earnings before taxes
Taxes on income

5.8-73,853-57,471

Net income for the year

5.9

122,423

126,439

thereof, attributable to owners of DEKRA SE

6.12

120,196

123,841

thereof, attributable to non-controlling interests

6.13

2,227

2,598

6.16

0

20

Net gain/loss on reserve forhedging instruments measured at fair value throughother comprehensive income
deferred taxes recognized through other comprehensive
incomeDifference arising from foreign currency translation

5.8

0

-7

5.9

-11,289-6,674-11,289-6,661

Items that may possibly be subsequently reclassified to
profit or loss
Net gain/loss on reserve forremeasurement of defined-benefit pension plans

6.14-87,911

214,602

equity instruments measured at fair value through othercomprehensive income

6.5

358

-6,922deferred taxes recognized through other comprehensive
income5.8

26,314-63,903

Items that will not be subsequently reclassified to
profit or loss

-61,239

143,777

Other comprehensive income-72,528

137,116

Total comprehensive income

49,895263,555

owners of DEKRA SE

47,668260,957

non-controlling interests

2,227

2,598

thereof attributable to

DEKRA Financial Report 2023

40

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

DEKRA SE
Consolidated Balance Sheetas of December 31, 2023
Assetsin € thousand

Note

Dec. 31, 2023

Dec. 31, 2022

6.1/6.2

801,990

767,400

8.1

398,247

400,024

Non-current assets
Intangible assets
Right-of-use assets
Tangible assets (property, plant & equipment)

6.3

508,579

484,319

Financial assets measured at equity

6.4

19,554

18,317

Other non-current financial assets

6.5

89,30978,070

Other non-current assets

6.6

10,462

9,474

Deferred income tax assets

5.8

109,343

90,8601,937,484

1,848,464

14,02010,819Current assets
Inventories

6.7

Contract assets

6.8

73,71870,459Trade receivables

6.8

583,492

550,918

Other current financial assets

6.9

82,600139,217

Other current assets

6.10

51,463

43,834Current income tax receivables

5.8

7,640

12,111

Cash and cash equivalents

6.11

Assets held for sale
Total assets

DEKRA Financial Report 2023

4.

118,964

136,529

931,897

963,887

13,06802,882,449

2,812,351

41

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

Equity and liabilities
Note

Dec. 31, 2023

Dec. 31, 2022

Subscribed capital

6.12

25,56525,565

Capital reserve

6.12

655,529

630,529in € thousand
EquityRevenue reserves

6.12

630,460

605,078

Accumulated other comprehensive income

6.12-196,543-124,076

1,115,011

1,137,096

Total equity of the ownerNon-controlling interests

6.13

18,49016,367

1,133,501

1,153,463

271,848

199,578

Liabilities
Non-current liabilities
Provisions for pensions and similar obligations

6.14

Other non-current provisions

6.15

26,61027,159Non-current financial liabilities

6.16

360,623

404,527

Other non-current liabilities

6.18

1,331

1,247

Deferred income tax liabilities

5.8

25,52024,899685,932

657,410

6.15

13,38925,413Current liabilities
Other current provisions
Trade payables

6.17

124,554

133,900

Contract liabilities

6.17

57,95955,872Current financial liabilities

6.16

383,826

352,762

Other current liabilities

6.18

469,863428,744

Current income tax liabilities

5.8

11,491

4,787

1,061,082

1,001,478

1,934

0

Total liabilities

1,748,948

1,658,888

Total equity and liabilities

2,882,449

2,812,351

Liabilities held for sale

DEKRA Financial Report 2023

4.

42

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

DEKRA SE, Stuttgart,
Consolidated Statement of Changes in Equity 2023
Accumulated other comprehensive incomein € thousand
As of Dec. 31, 2021

Subscribed capital

Capital reserve

Revenue reserves

25,565620,529552,368

Profit/loss transfer agreement/dividend distribution

Equity instruments Hedging instruments
measured at fair value measured at fair value
through other compre- through other comprehensive income
hensive income
Translation reserve-7,546

22,588-13

EquityRemeasurementof defined-benefit
pension plans

Total equityof owners

Non-controllinginterests-285,958

927,533

15,290942,823-61,678-952-62,630-61,678

Capital increase

10,00010,000

Other changes

0Changes to the consolidated group284

Disposal of equity instruments measured at fair value
through other comprehensive income

Total comprehensive income
As of Dec. 31, 2022

9,737

123,841-6,674-6,922

13

150,699

137,116

126,439
137,11600123,841-6,674-6,922

13

150,699

260,957

2,598

263,555

630,529605,078-14,220

25,4030-135,259

1,137,096

16,367

1,153,463-94,791-146-94,937-94,791

Capital increase

25,00025,000

Other changes

0Changes to the consolidated group

77

-2

75

Acquisition of non-controlling interests

-41

4

-37

Disposal of equity instruments measured at fair value
through other comprehensive income-59

Consolidated net income for the year59

25,000-741

120,196

-741
75

783

0

120,196

Other comprehensive income for the period

As of Dec. 31, 2023

0
2,598

25,565

Profit/loss transfer agreement/dividend distribution

Total comprehensive income

-569
284

0

123,841

Other comprehensive income for the period

10,000-569

284-9,737

Consolidated net income for the year

Group equity

746
0

2,227

122,423-11,289358

0-61,597-72,52800120,196-11,289358

0-61,597

47,6682,227

49,89525,565655,529

630,460-25,50725,8200-196,856

1,115,011

18,4901,133,501

For further explanations, please refer to note 6.12 in the Notes to the Consolidated Financial Statements

DEKRA Financial Report 2023

-72,528

43

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

DEKRA SE, Stuttgart,
Consolidated Statement of Cash Flows

Operating activitiesin € thousand

Note

Consolidated net income for the year
Depreciation/amortization/impairment losses/reversal of
impairments on assets

2022

122,423

126,439

222,903

209,717

Gain/loss from the disposal of financial assets, intangible
assets and tangible assets (property, plant and equipment)

3,725-4,129Interest income/expenses and dividends

3,756

-499

Tax expense

5.7/6.1/6.3/8.1

2023

5.8

Change in non-current provisions
Other non-cash-effective expenses/income
Change in inventories, receivables and other assets
Change in liabilities and current provisions
Profit or loss from associated companies

5.7

74,16861,303-16,212-21,226

2,774

4,940

-42,070-88,4838,835

60,433-225

377

Interest received

13,052

9,754

Taxes paid

-52,940-75,358

Tax refunds

576

844

Dividends received

5.7

162

2,167

340,927

286,279

Note

2023

2022

Cash flow from operating activities

Investing activitiesin € thousand
Cash paid for investments inintangible assets and tangible assets(property, plant and equipment)
financial assets and other assets
subsidiaries and other business entities

6.1/6.3-143,457-143,230

6.5/6.6/6.9-8,576-25,7937-50,042-6,9486.1/6.3

5,410

10,117

6.5/6.6/6.9

47,410

11,546

Cash received from disposals of
intangible assets and tangible assets(property, plant and equipment)
financial assets and other assets
subsidiaries and other business entities
Cash flow from investing activities

DEKRA Financial Report 2023

94

0-149,161-154,308

44

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

Financing activitiesin € thousand

Note

2023

2022

Cash received from equity contributions from theshareholder

6.12

25,00010,000Cash paid to shareholders and non-controlling interestsfrom profit transfers/dividends-61,824-90,441

Cash received/paid relating to loans to shareholders-4,63553,947-82,886-104,687

Cash paid for repayments of loans

6.16

Cash received from loan borrowings

6.16

Cash paid for repayments of lease liabilities
Cash paid for the interest portion of lease liabilities
Interest paid
Cash flow from financing activities

51,19829,807-116,120-111,122-6,638-5,256-9,167-6,066-205,072-223,818

2023

2022

-13,306-91,847

-532

1,750

136,529

226,626-3,727

0118,964

136,529

Cash funds (cash and cash equivalents)in € thousand

Note

Cash-effective changes in cash funds
Changes in cash funds due to changes in exchange rates
and the consolidated group
Cash funds (cash and cash equivalents) at the beginningof the financial year

6.11

Change in cash and cash equivalents recognized as held
for saleCash funds (cash and cash equivalents) at the end of
the financial year

DEKRA Financial Report 2023

6.11

45

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

Notes to the Consolidated Financial
Statements of DEKRA SE, Stuttgart,
for the Financial Year 2023
1 General information
DEKRA SE has its registered office at Handwerkstrasse 15 in Stuttgart, Germany, and is entered in theCommercial Register at Stuttgart District Court under HRB no. 734316.
DEKRA is an international, independent expert organization operating in the business divisions of
Vehicle Inspection, Claims & Expertise, Digital & Product Solutions, Industrial Inspection, Advisory &Training Services, Temp Work, and Audit.
The consolidated financial statements as of December 31, 2023 include DEKRA SE and its consolidated
subsidiaries.
The members of the Management Board prepared and approved the consolidated financial statementsof DEKRA SE for the financial year from January 1 to December 31, 2023 on March 28, 2024, and presented
them to the members of the Supervisory Board for review and approval.
These financial statements and management report are published in the electronic Federal Gazette [inGerman: Bundesanzeiger]. The prior-year financial statements and management report were publishedin the Federal Gazette in the reporting year.
All shares in DEKRA SE are held by DEKRA e. V., Stuttgart. DEKRA e. V., Stuttgart, is also the direct andultimate parent of the Company.

2 Accounting principles
The Company’s consolidated financial statements are prepared in accordance with International
Financial Reporting Standards (IFRSs) as adopted by the European Union at the end of the reporting
period, and the additional requirements of German commercial law pursuant to Section 315.e (1) HGB[Handelsgesetzbuch: German Commercial Code].
The principles of the Framework and the IFRS of the International Accounting Standards Board (IASB),
as well as the interpretations of the IFRS Interpretations Committee effective as on the reporting date,were applied.
Information on the adoption of specific IFRS is provided in the comments on the individual items of thefinancial statements later on in these notes.
The consolidated financial statements are presented in euros, which is DEKRA SE’s functional and presentation currency. Unless otherwise stated, all amounts have been rounded up or down to the nearest
thousand euros (€k) in accordance with customary commercial practice.
The consolidated financial statements comply with the requirements of Sec. 315e (3) HGB.

DEKRA Financial Report 2023

46

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

3 Recognition and measurement principles
The recognition and measurement principles (accounting and valuation methods) adopted are
fundamentally consistent with those of the previous reporting period. In addition, the new or revised
standards that were subject to mandatory adoption for the first time in the 2023 financial year inaccordance with the respective transitional provisions are presented below.
The following IFRS standards and interpretations were subject to mandatory application for the
first time in the financial year:
Standard/Interpretation;effective date

Impact on the
consolidated financial
statements of DEKRA SE

Amendment to IAS 1 Disclosure of accounting policies – switch from “significant” to“material”;
January 1, 2023

No material impact

Amendment to IAS 8: Definition of accounting estimates – clarification of thedifferentiation between changes in accounting policies and changes in accounting
estimates; January 1, 2023

No material impact

Amendment to IAS 12: Deferred tax arising when, upon initial recognition,transactions give rise to equal taxable and deductible temporary differences;
January 1, 2023

No material impact

Amendment to IFRS 17: Insurance contracts;
January 1, 2023

No material impact

Amendment to IAS 12: Information on the impact on income tax of Pillar 2 Model
Rules – OECD;
January 1, 2023

No material impact

The IASB and the IFRS IC have issued the Standards, Interpretations and Amendments listed belowthat were not yet subject to mandatory adoption as of December 31, 2023. There are no plans to adopt
these new pronouncements early.
Amended standards and interpretations:Standard/Interpretation;effective date

Adopted by the
EU Commission

Anticipated impact on the
consolidated financial
statements of DEKRA SE

Amendments to IAS 1: Classification of liabilities asYescurrent or non-current and non-current liabilities withcovenants;
January 1, 2024

No impact

Amendment to IAS 7 and IFRS 7:
Reverse factoring agreements;
January 1, 2024

Yes

No impact

Amendment to IFRS 16: Lease liability in a sale-andlease-back;January 1, 2024

Yes

No impact

DEKRA Financial Report 2023

47

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

3.1 Principles of consolidation
All companies over which the Group’s ultimate parent exercises direct or indirect control are includedin full in the consolidated financial statements. Control is assumed as soon as the parent company has
decision-making power over the subsidiary due to voting or other rights; is exposed to, or has rights to,variable returns from the subsidiary; and has the ability to affect those returns through its power overthe investee company. A subsidiary is consolidated for the first time with effect from the date on which
DEKRA SE takes over control of it. The subsidiary is removed from the consolidated group as soon as
control ends. Subsidiaries’ assets and liabilities that are classified as held for sale are recognized according to the rules for non-current assets held for sale, disposal groups and discontinued operations.
During the reporting period and as of the reporting date, there were no joint operations that would
have had to be included with their pro rata assets and liabilities and with their income and expenses.
Joint ventures and associates are accounted for using the equity method. An associate is an entity overwhich the owner exercises significant influence, but that is neither a subsidiary nor a joint venture orjoint operation. In the consolidated financial statements of DEKRA SE in the financial year, a total ofthree (prior year: two) domestic companies and two (prior year: two) foreign companies were consolidated using the equity method. These companies were capitalized for the first time at acquisition cost.
Subsequently, the carrying amounts of the shareholding investments are increased or reduced eachyear by the proportionate share of their net income, dividends distributed or other changes in equity.
The principles of purchase price allocation for full consolidation apply in the same way to the initial
measurement of joint ventures and associates. Goodwill relating to the associate is included in the
carrying amount of the investment and is not amortized systematically. As of each reporting date,
DEKRA tests whether the carrying amount is impaired pursuant to IAS 36.
Subsidiaries, joint ventures, joint operations and associates that are individually and jointly immaterial
for the presentation of a true and fair view of the Group’s results of operations, financial position andnet assets are recognized at fair value, provided these companies are subsidiaries of the Group. Joint
ventures and associates are valued at their acquisition cost, taking into account any impairment losses
and reversals of impairment losses.
Non-controlling interests in the total comprehensive income and equity of subsidiaries are presented
separately in the statement of comprehensive income and in equity. On acquisition of control, non-controlling interests are basically recognized at their proportionate share of the identifiable net assets
measured at fair value.
As of December 31, 2023, the consolidated group includes DEKRA SE and the other entities listed in“Other Disclosures”. The financial statements of the individual subsidiaries are included in the consolidated financial statements as of December 31, 2023, using the uniform accounting and valuation
methods (recognition and measurement principles) stipulated by DEKRA SE. In addition to DEKRA SE,
Stuttgart, a total of 22 domestic (prior year: 22) and 134 foreign (prior year: 127) entities are included.
Effects of first-time inclusion of previously immaterial subsidiaries and associates are recognized in thestatement of changes in equity under changes to the consolidated group.
Capital consolidation is performed using the purchase method of accounting on the basis of carrying
amounts as of the date of transfer of control (IFRS 3). Where there are non-controlling interests, a proportionate share of goodwill has always been recorded to date in accordance with IFRS 3 (purchased
goodwill method).

DEKRA Financial Report 2023

48

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

In the course of business acquisitions, sometimes arrangements are made concerning the payment ofcontingent consideration, and call-and-put options are sometimes agreed with non-controlling shareholders. These obligations are included in the purchase price calculation at their estimated fair value.
On the equity and liabilities side, a financial liability is recognized pursuant to IAS 32. Changes in fairvalue in subsequent periods are recognized through profit or loss. In the case of call-and-put options,the acquired entity is included in the consolidated financial statements in full and no non-controllinginterests are presented.
Transactions between the consolidated entities are netted. Profits from intercompany transactions are
eliminated. The income tax effects are taken into consideration and deferred taxes are recognized.

Foreign currency translation

The consolidated financial statements of DEKRA SE are presented in euros. The concept of a functional
currency is applied when translating financial statements of consolidated entities prepared in foreign
currencies. The functional currency is generally the local currency of the respective subsidiary. Assets
and liabilities are translated at the closing rate; expenses and income at the annual average rate. The
remaining items within equity are carried at historical rates. The resulting difference is recognizeddirectly in equity and presented separately in the statement of comprehensive income.
In the separate financial statements of the subsidiaries, business transactions in foreign currencies aretranslated using the exchange rate on the date of the transaction. Pursuant to IFRIC 22, assets as well
as expenses and income arising from the payment or receipt of advance consideration, and which are
not measured at fair value upon initial recognition, are translated at the exchange rate at which thepayment or receipt of advance consideration was recognized for the first time. In subsequent periods,
monetary assets and liabilities in foreign currencies are translated at the exchange rate as of the reporting date. Translation differences are generally recorded under “Other operating income” or “Other
operating expenses” in the statement of comprehensive income. Foreign currency gains and losses
arising from taking out loans are recognized in the financial result. Non-monetary assets and liabilities
are generally not remeasured in subsequent periods.
The following table shows the exchange rates for the main companies that are denominated in foreign
currencies.

1 Euro =Rate as ofbalance sheet date
Dec. 31, 2023 Dec. 31, 2022

Annual averageexchange rate
2023

2022

Brazilian real (BRL)

5.36186.31015.4001

6.3814

Czech koruna (CZK)

24.7240

24.8580

24.002225.6468

Chinese renminbi (CNY)7.85097.19477.6601

7.6340Danish krone (DKK)

7.45297.43647.45107.4371Pound sterling (GBP)

0.86910.84020.86990.8600Hungarian forint (HUF)

382.8000

369.1900

381.6782

358.4625

Moroccan dirham (MAD)10.9079

10.5352

10.9240

10.5437

New Zealand dollar (NZD)

1.7504

1.65791.76181.6725Hong Kong dollar (HKD)

8.63148.83338.4676

9.1988Polish zloty (PLN)

4.33954.59694.54194.5640Swedish krona (SEK)11.0960

10.2503

11.4738

10.1449

US dollar (USD)

1.10501.13261.0816

1.1835South African rand (ZAR)

20.347718.0625

19.9463

17.4795

Taiwan dollar (TWD)

33.9274

31.4777

33.6667

33.0382

Swiss franc (CHF)

0.92601.0331

0.97181.0814

Japanese yen (JPY)156.3300

130.3800

151.9797

129.8575

DEKRA Financial Report 2023

49

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

3.2 Significant recognition and measurement principles
The financial statements have, in principle, been prepared on a cost basis, except for financial instruments
classified as “at fair value through profit and loss or other comprehensive income” pursuant to IFRS 9.
In the DEKRA Group, this primarily concerns investments in non-consolidated subsidiaries, securities,
obligations from options and contingent purchase price components. Furthermore, pensions and similar
obligations are excluded from measurement at fair value.

Differentiation between current and non-current

Assets and liabilities which are expected to be realized or settled within the next twelve months are
generally to be classified as current. All other assets and liabilities are generally to be classified as
non-current. Current assets also include assets (e.g., inventories and trade receivables) that are sold,utilized, or realized within the normal business cycle, even if they are not expected to be realized withintwelve months subsequent to the balance sheet date. Current liabilities, such as trade payables andprovisions for personnel-related expenses and other operating expenses make up part of the current
working capital that is needed in the normal business cycle of the Company. Such operating items areclassed as current liabilities even if they fall due later than twelve months subsequent to the balance
sheet date.

Business combinations and goodwill

The acquisition method is used when accounting for business combinations. The purchase cost of acompany acquisition is calculated as the sum of the consideration transferred, which is measured atfair value on the date of purchase. In all cases of business combinations, the Group decides whether
to measure the non-controlling interests in the acquired entity at fair value or at the corresponding
proportionate share of the identifiable net assets of the acquired entity. Acquisition-related costs
incurred in the context of a business combination are recognized under the heading of other operating
expenses.
If the Group acquires a company, it assesses the appropriate classification and designation of the financial assets and liabilities taken over in accordance with the contractual terms, the business circumstances and the conditions prevailing on the date of purchase.
The agreed contingent consideration is recorded at fair value on the date of purchase. A contingent
consideration that is classified as a liability in the form of a financial instrument falling within the scopeof application of IFRS 9 “Financial Instruments” is measured at fair value through profit or loss, pursuant to IFRS 9.
The amount by which the purchase price of a company acquisition exceeds the fair value of the individually identifiable acquired net assets is recognized as goodwill. Acquisition-related costs are recognizedthrough profit or loss.
In accordance with IAS 38, goodwill arising from capital consolidation is not amortized systematically,
but is subject to impairment testing once a year, or more frequently if events or changes indicate thatthe value could be impaired. Where necessary, impairment losses are recognized in accordance with
IAS 36 (impairment-only approach). For further explanations on the topic of impairment losses, pleaserefer to the section headed “Impairment losses and reversals of impairment losses”.

Intangible assets

Purchased intangible assets that have a finite useful life are recognized at cost, less accumulated amortization and accumulated impairment losses. Purchased intangible assets that have an indefinite usefullife are recognized at cost, less accumulated impairment losses.
Internally generated intangible assets are stated at cost if they meet the recognition criteria under IAS
38. Cost includes directly and indirectly allocable costs. Research costs are treated as current expenses
and were immaterial in the past financial year.
The useful lives of all intangible assets are classified as finite and average between three and sevenyears for concessions, industrial property rights, and similar rights and assets; between five and ten
years for internally generated intangible assets; and between three and ten years for other intangible

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assets. For purchase price allocations, useful lives between ten and fifteen years were utilized for trademarks or customer bases. Systematic amortization is performed using the straight-line method. Where
necessary, impairment losses are recognized, and then reversed if the reasons for the impairment
cease to apply at a later date. Impairment losses are recognized under amortization and depreciation.
For further explanations on the topic of impairment losses, please refer to the section headed “Impairment losses and reversals of impairment losses”.

Property, plant and equipment

Pursuant to IAS 16, property, plant, and equipment are recognized at cost, less accumulated systematic
depreciation. If there are indications of impairment and the recoverable amount is less than the amortized
cost, then an impairment loss is recognized. For further explanations on the topic of impairment losses,
please refer to the section headed “Impairment losses and reversals of impairment losses”.
Manufacturing costs include the direct cost of materials and production, as well as production overheads. Subsequent costs are capitalized when it is probable that future economic benefits, in excessof the originally assessed earning power of the asset, will flow to the Company. All other subsequent
expenditure is recognized directly as an expense. Maintenance expenses are recognized through profit
or loss.
Property, plant, and equipment are depreciated systematically on a straight-line basis over the economic
useful lives of the individual assets. The useful lives of buildings and their individual components are
between ten and forty years; technical equipment and machines between five and twenty years; andother equipment, furniture and fixtures between three and ten years. There were no significant residual values within the meaning of IAS 16.53 to be taken into account in the calculation of the depreciation charge. The useful lives of assets are subject to regular checks. Gains and losses from the disposalof assets are determined as the difference between the net disposal proceeds and the carrying amountof the asset, and are recognized in the statement of comprehensive income under other operating
income or other operating expenses.

Leasing
Leasing as a lessee
As a lessee, the Group leases real-estate property, technical equipment, IT, and other equipment, furniture, and fixtures. In accordance with IFRS 16, the Group recognizes rights of use and lease liabilities
for the majority of these lease agreements. In this process, non-lease components are separated fromlease components.
At the commencement date of a lease, the Group recognizes lease liabilities measured at the present
value of lease payments expected to be made over the lease term. These comprise fixed payments,
variable lease payments that are on an index or a rate, as well as the cost of exercising a reasonably
certain purchase option, any penalty payments from a reasonably certain termination option andpayments expected by the Group arising from residual value guarantees. The measurement of thelease liability also takes into account lease payments based on a reasonably certain extension option.
Variable lease payments that are not linked to an index or a rate are recognized as expenses in the
period in which the event or condition that triggers the payment occurs. For calculating the present
value of lease payments, the Group uses its incremental borrowing rate at the lease commencement
date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of the lease liabilities is increased to factor in the higher interest expenses, anddecreased to factor in the lease payments made. Moreover, the carrying amount of the lease liabilities
is remeasured if there are changes to the lease agreement, the duration of the lease agreement, thelease payments (e. g., changes in future lease payments because of a change to the index or interest
rate applied to the payment) or if there are changes in the assessment of a purchase option for theunderlying asset.
The Group recognizes right-of-use assets at the commencement date of the lease (i.e., the date theunderlying asset is available for use). Right-of-use assets are measured at cost, less accumulated
amortization and accumulated impairment losses, and adjusted for any remeasurement of the leaseliabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized, the initial
direct costs incurred, and the lease payments made upon or before the commencement date, less any

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lease incentives received. Right-of-use assets are amortized on a straight-line basis over the useful life
or lease term, whichever is shorter, of the underlying lease agreement. The associated amortizationof right-of-use assets is recognized under depreciation/amortization of intangible assets, right-of-use
assets, and tangible assets.
For lease agreements for assets with a term of 12 months or less and for leases of low-value assets,
the Group exercises the practical expedients that apply to short-term leases and to leases for which
the underlying asset is of low value. The expense for such lease agreements is recognized under theheading of other operating expenses.

Inventories

Inventories are basically measured at the lower of cost or net realizable value pursuant to IAS 2. Cost is
calculated according to the weighted average cost method. Net realizable value is the estimated selling
price in the ordinary course of business, less the estimated costs of completion and the estimated costs
necessary to make the sale that have yet to be incurred.

Financial instruments

Financial instruments primarily consist of trade receivables, securities and shares in subsidiaries, which
are not included in the consolidated financial statements for reasons of materiality, and also loans to
non-consolidated subsidiaries and investee companies, as well as liabilities to banks, trade payables
and other financial liabilities.
Financial instruments are recognized as soon as DEKRA becomes a party to a contract.
Financial assets and liabilities are only netted and stated as a net amount in the balance sheet if, at thepresent time, there is a legal claim to setting the amounts off against each other and if it is intended
either to settle on a net basis or simultaneously realize the asset and settle the liability.

Financial assets

Financial assets are accounted for pursuant to IFRS 9. Under IFRS 9, financial assets are divided into
three categories: Financial assets measured at amortized cost, financial assets measured at fair value
through other comprehensive income, and financial assets measured at fair value through profit or
loss.
Financial assets at amortized costThis category includes debt instruments with contractual cash flows that are solely payments ofprincipal and interest on the principal amount outstanding. Furthermore, the debt instruments in thiscategory are held within a business model which has the objective of holding financial assets in order
to collect contractual cash flows.
They are initially recognized at fair value, which generally matches the value of the consideration paid,
plus any directly attributable transaction costs. Subsequent measurement is at amortized cost using
the effective interest rate method. Interest income and interest expense, and also impairment losses,
are recognized through profit or loss.
In the DEKRA Group, this category includes loans to subsidiaries that are not fully consolidated andother loans, trade receivables, cash and cash equivalents, receivables from affiliates and other financial
assets.
Financial assets at fair value through other comprehensive income
Debt instruments which, despite satisfy the cash flow criterion, are held in a business model for collecting contractual cash flows and selling financial assets, are classified as “at fair value through othercomprehensive income”.
Furthermore, there is an irrevocable option to allocate equity instruments not held for trading to thiscategory when being classified for the first time. The cumulative changes in fair value are not reclassified to profit or loss even when these equity instruments are derecognized.
Both the initial recognition and subsequent measurement of the assets is at fair value. Changes invalue are generally recognized in the statement of comprehensive income. By contrast, information on
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the collection of contractual cash flows in the case of debt instruments, such as interest income, anddividends in the case of equity instruments are recognized through profit or loss.
The DEKRA Group uses this category to account for shares in affiliated companies and investee companies. These shares are held as long-term, strategic shareholding investments that are not expected
to be sold in the short to medium term. Accumulated gains or losses are reclassified to other revenue
reserves on the date of disposal.
Financial assets at fair value through profit or loss
This category includes debt instruments that do not satisfy the cash flow and/or business model
conditions. Debt instruments can also optionally be allocated to this category upon initial recognitionin order to overcome or significantly reduce an accounting mismatch.
This category also includes equity instruments for which the option for measurement at fair value
through other comprehensive income is not exercised.
The assets are initially recognized at fair value. Transaction costs are recognized through profit or loss.
Their subsequent measurement is also at fair value. Changes in fair value in this category are recognized through profit or loss.
The DEKRA Group allocates the securities that it holds to this category.
A financial asset is derecognized if it is assumed after thorough analysis that it can no longer be
realized, for example at the end of insolvency proceedings or after court rulings.

Financial liabilities

Pursuant to IFRS 9, financial liabilities are divided into two categories: Financial liabilities measured atamortized cost and financial liabilities measured at fair value through profit or loss.
Financial liabilities at amortized cost
Financial liabilities are allocated to this category with the exception of liabilities held for trading andwhen exercising the fair value option. They are initially measured at fair value plus any directly attributable transaction costs. Subsequent remeasurement is at amortized cost using the effective interest rate
method.
The DEKRA Group uses this category for most of its financial liabilities. The participation rights capital
was measured at amortized cost.
Financial liabilities at fair value through profit or loss
DEKRA puts all contingent liabilities recognized by a purchaser in the context of a business combination
pursuant to IFRS 3 into this category. DEKRA does not exercise the Standard’s fair value option.
The measurement is the same as for “financial assets measured at fair value through profit or loss”.
Financial liabilities are derecognized if these are repaid, i.e., the obligations stated in the contract are
fulfilled or annulled or have lapsed.

Trade receivables, contract assets and other financial assets

Trade receivables and other financial assets are measured at amortized cost or fair value, dependingon their category as described in the section above. Non-current non-interest-bearing receivables arestated at present value using an interest rate matching their maturity.
Contract assets contain receivables from unbilled service contracts. Their recognition is governed by
IFRS 15 “Revenue from Contracts with Customers”.
Trade receivables, contract assets and other financial assets, as well as receivables from lease agreements are subject to the impairment model of IFRS 9. This is explained in more detail in the section“Impairment losses and reversals of impairment losses pursuant to IFRS 9”.

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Cash and cash equivalents

Cash and cash equivalents comprise cash on hand, bank balances and short-term deposits and arerecognized at nominal value. Cash equivalents have a remaining duration of up to three months, calculated from the date of acquisition.

Deferred taxes and income taxes

Income taxes include expenses and income from current and deferred taxes as well as tax allocations to
the parent DEKRA e. V., Stuttgart, with which the Company forms a tax group for income tax purposes.
Current income tax liabilities/assets are measured at the amount expected to be paid to or, respectively,
recovered from the tax authorities. The calculation is based on the tax rates enacted or substantively
enacted as of the reporting date.
IFRIC 23 was observed when determining income tax liabilities. The subsidiaries included are asked
whether they have any uncertain tax items. If any such items exist, they are duly taken into account.
Deferred taxes are recognized in accordance with the liability method pursuant to IAS 12 for temporary
differences between the tax accounts and the consolidated financial statements – with the exception of
goodwill resulting from capital consolidation that cannot be recognized for tax purposes – and for tax
loss carry-forwards. Deferred tax assets are only considered to the extent that it is sufficiently probable that they will be realized. Probable usability is based on a multi-year plan for the respective entity.
Deferred taxes are calculated using the respective local tax rates on the basis of the tax rates that are
expected to apply for the period of reversal of the difference. Changes to tax rates adopted by thereporting date are taken into account when calculating deferred taxes.
Deferred taxes are recorded as tax income or expense through profit or loss unless they relate to items
recorded directly in other comprehensive income; in this case, the deferred taxes are likewise recordedin other comprehensive income.
Deferred tax assets for tax loss carry-forwards are only recognized to the extent that it is probable that
there will be future taxable profit against which they can be set off.
Deferred tax assets and liabilities are disclosed as a net amount in the consolidated balance sheet as
long as there is a legally enforceable right to offset current tax liabilities and the deferred taxes relate
to the same taxable entity and the same tax authority. Accordingly, offsetting is carried out at entity
level and tax group level.
The DEKRA Group falls within the scope of application of the OECD Pillar 2 Model Rules governing
global minimum taxation. The Pillar 2 legislation was adopted in Germany – the jurisdiction in which
the DEKRA Group is located – and shall apply to the financial years from January 1, 2024 onwards.
Because the Pillar 2 legislation was not yet applicable on the reporting date, the Group is presently not
subject to any related additional tax burden. The Group applies the temporary, mandatory exemption
rule pursuant to IAS 12 with regard to accounting for deferred tax arising from the introduction of the
global minimum taxation rule, and it recognizes this as an actual tax expense/income amount on thedate when it occurred in each case. The Group is currently in the process of estimating the impact of
Pillar 2 after the legislation comes into effect. It presently does not anticipate that the global minimum
taxation rule will have a material impact on its tax expenses.

Impairment losses and reversals of impairment losses
Impairment losses and reversals of impairment losses pursuant to IAS 36

The carrying amounts of the assets that fall under the scope of IAS 36 are tested annually at year-end
and whenever necessary for indications that an asset may be impaired. If such indications are found
to exist, the recoverable amount of the asset concerned is estimated. If it is not possible to estimate
the recoverable amount of the individual asset, the recoverable amount of the CGU (cash-generating
unit) to which the asset belongs is determined. The recoverable amount is the higher of an asset’s
net realizable value and its value in use (present value of expected future cash flows). If the recoverable amount is lower than its carrying amount, an impairment loss must be recognized to reduce the

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Consolidated Financial Statements › Notes to the Consolidated Financial Statements

carrying amount to the recoverable amount. Impairment losses recognized in prior years must be reversed when there is a change in the estimate and the recoverable amount is higher than the carrying
amount. Impairment losses are recognized under amortization and depreciation.
In addition, annual impairment tests must be carried out for goodwill, intangible assets with indefinite
useful lives and intangible assets that are not yet available for use. As goodwill and other intangible
assets generally cannot be sold independently and cannot generate cash flows independently of otherassets, impairment tests can only be carried out in connection with a cash-generating unit (CGU).
The cash-generating units (CGUs) relevant for the goodwill impairment test are defined at the regional
cluster level and at the level of the globally operating Temp Work unit. This is largely due to the joint
management and monitoring of the individual regional clusters and the globally operating Temp Workunit.
In the course of the impairment test of a cash-generating unit, the carrying amount of the CGU is compared to the recoverable amount. The cash-generating unit includes those assets that can be directly
or indirectly allocated on a reasonable and consistent basis to the cash-generating unit and that will
generate future cash inflows.
If the net sales proceeds and the present value of the expected future cash flows of a cash-generating
unit are lower than its carrying amount, the impairment expense recognized through profit or loss isallocated to the individual assets of the CGU.
This allocation is made in proportion to the individual assets’ share in the CGU’s carrying amount. If
goodwill is assigned to the cash-generating unit, any identified impairment expense is first assigned togoodwill and then allocated proportionately to the other assets of the CGU.

Impairment losses and reversals of impairment losses pursuant to IFRS 9

The impairment model introduced by IFRS 9 is based on future expected credit losses and is applicablefor all financial assets (debt instruments) that are not measured at fair value through profit or loss andfor all financial guarantees and loan commitments. The impairment approach provides a three-stage
model for determining the amount of the impairment, except for trade receivables and contract assets.

• Level 1: Credit losses expected within the next 12 months

Level 1 comprises all instruments upon their initial recognition and all instruments for which there
has not been a significant increase in credit risk since initial recognition. A default expected within
the next 12 months is considered as an impairment loss.

• Level 2: Credit losses expected over the entire duration term – no impairment to credit

standing
Level 2 comprises all instruments for which, on the reporting date, there has been a significant
increase in credit risk as compared to the date of initial recognition, but no objective indication of
impairment. All expected losses are recognized over the residual term of the instrument as a valuation allowance for impairment. A significant increase in credit risk is assumed where the status has
been past due for more than 30 days.

• Level 3: Credit losses expected over the entire duration term – impairment to credit standing

If there is also objective evidence of impairment in addition to a significant increase in the risk ofdefault as of the reporting date, all expected losses for the instrument are recognized as impairment
over its entire duration term. Being a past-due-date status for more than 90 days and also further
indications of financial difficulties on the part of the debtor are taken to be objective evidence ofimpairment.

The assessment as to whether the credit risk of a financial asset has increased significantly is performed at regular intervals, at least once a year, based on internally or externally available information on the counterparty (e.g., rating information) and data on macroeconomic developments. This
information also serves to ascertain the probability of default and the default ratio and therefore also
to calculate the expected credit losses.

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For loans and other financial assets, the expected credit losses pursuant to IFRS 9 are determinedannually on the basis of probabilities of default derived from the respective rating of the contractual
partners and from the loss ratio and the amount at risk of default.
For trade receivables and contract assets, DEKRA uses a simplified approach to determine the expectedcredit losses. For these instruments, the focus is on the credit losses expected over the entire duration
terms, which means that a review as to whether there has been a significant increase in the credit risk
is not necessary. Portfolio valuation allowances for the expected credit losses are calculated on the basis of historical data adjusted for supportable, forward-looking macroeconomic factors. In the reporting year, the Company fine-tuned the processing of the data on which the model is based. Moreover,the definition of payment default that is used for calculating historical loss rates was shortened slightly.
The Company analyzes the GDP growth rates, for example, published by the OECD for the regions inwhich DEKRA operates and duly weights them as macroeconomic factors.
A financial asset is derecognized if it is assumed after thorough analysis that it can no longer be realized,
for example at the end of insolvency proceedings or after court rulings.

Pensions and other post-employment benefits

Provisions for pensions and similar obligations are calculated according to the projected unit credit
method prescribed by IAS 19. In addition to biometric bases of calculation pursuant to acknowledged
guidance tables, this method primarily takes into account current assumptions regarding future
increases in salaries and pensions as well as the relevant long-term capital market interest rate, which
is determined on the basis of the market yields achieved by fixed-interest high-quality corporate bonds
as of the reporting date. The provisions are recognized at an amount equivalent to the defined benefit
obligation.
Plan assets that are invested in order to cover defined-benefit pension plans and other similar benefits
are measured at fair value and offset against the corresponding obligations.
Pursuant to IAS 19.123, net interest on the net liability or the net asset arises as interest from thereporting period on the net liability or the net asset. It is determined at the start of the financial year
and presented as the amount by which the provision or asset recognized in the past has increased
due to interest during the period.
Actuarial gains and losses, which primarily result from deviations from the assumptions made, arerecorded in other comprehensive income in the period in which they occur. The service cost and past
service cost from plan amendments are immediately recognized in personnel expenses in the financial
year in which the amendments are made. Interest expenses are recognized in the financial result.
Actuarial reports are obtained for the calculation of the pension provisions.

Other provisions

Provisions are recognized corresponding to the amount required to cover all present obligations asof the reporting date, based on a best estimate. Future events which may have an effect on the amountneeded to satisfy the obligation are considered in the provisions, provided that they can be forecastwith an adequately objective degree of certainty and that the obligation results from past events. In
addition, provisions for potential losses from onerous contracts are set up in accordance with IAS 37.
The provision is measured at the most probable amount and at the expected amount if there is a rangeof different figures. Where possible, it is determined and measured on the basis of contractual agreements; otherwise, calculations are based on past experience and estimates by management.
Non-current provisions are recognized at present value and discounted at market interest rates thatmatch the risk and the time period through to realization.

Contract liabilities

A contract liability is recognized if the Group receives payments before it has delivered the goods orservices to the customer. Contract liabilities are recognized as revenue as soon as the Group has satisfied its contractual obligations.

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Revenue recognition

DEKRA provides services in the Vehicle Inspection, Claims & Expertise, Digital & Product Solutions,
Industrial Inspection, Advisory & Training Services, Temp Work and Audit divisions and recognizes theassociated income pursuant to IFRS 15 “Revenue from Contracts with Customers”. IFRS 15 provides fora uniform principles-based five-step model for calculating revenue that must be applied to all contracts
with customers.
DEKRA recognizes revenue over time if there is either a continuous flow of benefits to customers or
if an asset with no alternative use is created. In both cases, an ordinary right of termination by thecustomer gives rise to a reimbursement claim for the respective proportionate selling price. DEKRA
therefore recognizes revenue based on the respective degree of completion of the underlying service
obligation. The percentage of completion per contract to be recognized is calculated as the ratio of theactual costs incurred to overall anticipated costs of the project (cost-to-cost method). This is the mostsuitable method for DEKRA to measure progress. If the outcome of a service obligation to be renderedover a time period is not reasonably certain, but DEKRA nevertheless expects that it will at least get its
costs reimbursed by the customer, then the revenue is only recognized at an amount corresponding to
the contract costs incurred.
The transaction prices are essentially fixed prices. As a rule, contracts with customers only contain acommitment. Contract costs are recognized as an expense in the period in which they are incurred. If
it is foreseeable that total contract costs will exceed total contract revenue, the expected loss is immediately recognized as an expense. Contracts are generally processed within one year. The revenue
recognition, settlement and cash inflows result in invoiced trade receivables, contract assets (receivables from unbilled service contracts) and contract liabilities (liabilities from unbilled service contracts).
Because DEKRA provides services, there are no returns of goods. Furthermore, the granting of credit tocustomers is not relevant to any significant extent.
DEKRA performs “revenue recognition at a point in time” in all of its Service Divisions. With this type ofrevenue recognition, revenue is recognized when DEKRA provides the service. “Revenue recognition
over time” is notably performed in the divisions of Digital & Product Solutions, Industrial Inspection,
Advisory & Training Services and Audit.
Dividends are recognized when the right to receive payment arises.

Government grants

In accordance with IAS 20, government grants are only recognized where there is reasonable assurance
that all associated conditions will be complied with, and the grant will be received. They are recognizedthrough profit or loss as of the date when the subsidized expenses are incurred unless they relate
to subsidies for an asset. Government grants are generally disclosed without offsetting under otheroperating income. Grants for assets are deducted from the carrying amount of the relevant asset andrecognized in profit or loss applying a reduced amortization charge over the asset’s economic useful life.

Valuation policy decisions and estimates

In applying the recognition and measurement principles, the members of the Management Board
made the following valuation policy decisions which have a material impact on the amounts stated in
the financial statements.
The consolidated financial statements include assumptions and estimates which have an effect on
the carrying amounts and recognition of assets and liabilities as well as income and expenses. Actual
amounts may differ from the amounts based on these estimates and assumptions.
In particular, assumptions and estimates were made concerning the useful lives of fixed assets, therecoverability of goodwill and other intangible assets, the recoverability of receivables and adequate
valuation of securities, the parameters for measuring pension and other provisions, and the recoverability of deferred tax assets. In addition, we refer to the above explanations and to the comments innote 6 concerning the individual balance sheet items.
The Group determines the term of the lease based on the non-cancellable period of the lease, including
reasonably certain extension options and the periods covered by an option to terminate the lease if it isreasonably certain that the Group will not make use of this option.
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Several lease agreements containing extension and termination options were concluded. Valuation
policy decisions are made in assessing whether it is reasonably certain that the option of extending or
terminating the lease will or will not be exercised. That means taking into account all relevant factors
constituting an economic incentive to exercise the option of extending or terminating the lease. Afterthe commencement date, the lease term is reassessed if there is a significant event or change in circumstances which is under the Group’s control and affects the ability to exercise or not to exercise theoption to extend or to terminate the lease (e.g., performance of significant leasehold improvements
or significant customization of the leased asset).
The duration term of lease agreements basically corresponds to the contractually fixed duration term.
Because there is no contractually fixed duration term in the case of open-ended contracts, the minimum duration term laid down in the contract shall apply (provided there is one) and/or the contract
termination clauses shall apply. For termination and extension options, the cluster duration term isdetermined as the term of the lease, provided that the cluster duration term is longer than the term
agreed in the contract. Should a contract with a termination or extension option have a longer contractually agreed term than the cluster term, the contractual term is then used. The cluster duration term isthe term that contracts in the same cluster generally have. A cluster is a group of lease agreements for
similar underlying assets. DEKRA categorizes lease agreements into the following clusters: IT, buildings,
vehicles, technical equipment, furniture and office equipment (furniture and fixtures). The cluster
durat­ion term was determined for the financial year and is based on past experience.
We refer to note 8.1 for details of potential lease payments relating to periods following the exercise
date of extension and termination options that are not included in the lease term.
Goodwill is tested for impairment at least once a year. The impairment tests carried out are mainly
based on estimates. Various scenarios were therefore worked out for the individual cash-generating
units (CGUs). The main estimate parameters were the future expected net cash flow surpluses, basedon market developments and on assumptions about economic development, and an estimate ofincreases in personnel costs, the growth rates and the weighted average cost of capital. Even if theparameters should change, the recoverable amount is currently expected to exceed the carrying
amount of goodwill. Especially with regard to the assumptions concerning goodwill impairment or the
expected future cash flows and weighted average of cost of capital, we refer to note 6.2. The fair values
utilized for the impairment test are also used for the valuation of equity instruments measured at fairvalue. Because estimates have to be carried out for the calculation of fair value, as described in thisparagraph, and no active market exists, these are measured at fair value through other comprehensive
income.
Loss allowances on trade receivables relate to assumptions regarding the risk of default and the
expected loss ratios (“loss given default”). DEKRA makes these assumptions based on past experience,existing market conditions and estimates about the future as at the end of the reporting period.
Selecting the method for determining the degree of contract completion with our customers requires
valuation policy decisions and depends on the type of service concerned. To determine the stage ofcompletion for the respective contract, the cost-to-cost method is generally used as the ratio of costs
incurred to the total costs calculated.
The obligation from defined-benefit pension obligations and the pension benefit payments of thesubsequent year are determined based on actuarial parameters such as interest rate, future salary andpension trends, and age. Changes in parameters can have a significant effect on the pension benefit
obligation. For further explanations, we refer to note 6.14.
In the case of business combinations, sometimes contingent purchase price components exist or callor-put options for non-controlling interests have been agreed with the seller. The resulting purchaseprice liabilities are subject to estimates as to whether future targets can be achieved and in terms ofassumptions regarding the present value of future purchase price payments. For further explanations,
we refer to note 3.1.
Deferred tax assets are recognized to the extent that it is likely they can be used. The probability of
their being used in the future is assessed, taking into account various factors such as future taxable
earnings in the planning periods. DEKRA uses a planning horizon of five years. The actual amounts may
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differ from the estimates. These are then adjusted in other comprehensive income or through profit orloss, depending on how they were initially recognized.

4 Company acquisitions (business combinations) and non-current
assets held for sale
Presentation of significant company acquisitions in the financial year

With effect from March 27, 2023, the Group acquired 90.71% of the shares in Onward Security Corporation, New Taipei City. The purchase price amounted to 17.4 million euros of which 14.1 million euros
was paid out of liquid funds and 3.3 million euros was recognized as a purchase price liability. With
this acquisition DEKRA took over the leading provider of cybersecurity solutions in Taiwan and is thus
expanding its service portfolio in the fast-growing sector of cybersecurity. In the chapter “Consolidated
Statement of Cash Flows” further information on the cash flow from investing activities is provided.
The net assets recognized from this acquisition amounted to 4.0 million euros. As of the acquisition
date the carrying amounts of the acquired assets and liabilities amounted to a total of 4.5 million euros
and 0.5 million euros respectively. The assets consist of non-current financial assets of 0.8 million euros, liquid funds (cash and cash equivalents) of 2.6 million euros, trade receivables of 0.6 million euros
and sundry non-current and current assets of 0.5 million euros. The carrying amount of the assets andliabilities corresponds to their fair value. The liabilities of 0.5 million euros are short-term liabilities.
Intangible assets (customer base and order backlog) of about 5.7 million euros were capitalized anddeferred taxes of 1.1 million euros were recognized from the resulting purchase price allocation. As of theacquisition date, goodwill of about 9.6 million euros was recognized. As well as synergy effects, the goodwill includes intangible assets which cannot be measured separately, such as workforce and know-how.
Net of the non-controlling interests of about 0.8 million euros the acquired net assets amount to17.4 million euros.
Revenues since the acquisition date amounted to 5.6 million euros and a net loss of 1.1 million euros
occurred. If the acquisition had already taken place as of January 1, 2023, revenues of 6.1 million euros
and a loss of -1.5 million euros would have been included in the Group’s financial figures as of December 31, 2023. The figures are the pre-intragroup elimination amounts. The company was allocated to
the Service Division of Digital & Product Solutions in the APAC Region. Apart from the acquisition of theshares in Onward Security Corporation, there were no significant company acquisitions or acquisitions
that are of joint significance.

Non-current assets held for saleIn the context of focussing on other markets, in 2023 the Group decided to sell DEKRA Automotive Pty.
Ltd., South Africa, which was allocated to the APAC cash-generating unit. Consequently, the assets andliabilities of the subsidiary were classified as held for sale in the 2023 financial statements. The sale isexpected to be completed in the second quarter of the financial year 2024.
The financial statements of DEKRA Automotive Pty. Ltd. contain the financial information shown below.
in € thousand

2023

Non-current assets

4,718

Current assets

4,642

Total assets

9,360

Non-current liabilities

673

Current liabilities

1,261

Total liabilities

1,934

Goodwill

3,708

Foreign currency losses contained in othercomprehensive income-1,257

DEKRA Financial Report 2023

59

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

5 Consolidated statement of comprehensive income
The statement of comprehensive income has been prepared using the total cost method. Income
and expenses attributable to the financial year are recognized through profit or loss. Non-owner-basedtransactions reported as other comprehensive income are presented straight after the income statement (one statement approach).

5.1 Sales revenues
Revenues are allocated to Regions and Service Divisions. The revenues result from ordinary businessactivities.

Revenue by Regionin € thousand
GSA

2023

2022

2,557,109

2,370,514

South-West Europe

551,346

535,060

North-West Europe

397,541

365,189

APAC

260,685

244,301

Central East Europe & Middle East

190,392

167,903

Americas144,369

113,569

4,101,442

3,796,536

In the financial year, the companies located in Germany, Switzerland, and Austria were combined
within the new Region called GSA (Germany, Switzerland, Austria). The prior-year figures were adjusted
accordingly.

Revenue by Service Division
2023

2022

Vehicle Inspection

1,453,599

1,308,340

Industrial Inspection

587,246555,880

Claims & Expertise555,715

514,590

Temp Work528,262539,244

Digital & Product Solutions

362,960

317,848

Advisory & Training Services

446,312

410,710

Audit

125,253

108,834

Other

42,09541,0904,101,442

3,796,536

in € thousand

Gross revenues also include revenue (over time) from service contracts not yet billed at year-end
amounting to 66,289 thousand euros (prior year: 63,278 thousand euros), recognized proportionately
over the period in which the service is rendered. Out of that amount, a sum of 39,272 thousand euros(prior year: 38,588 thousand euros) was generated in the Digital & Product Solutions division.
In the 2023 financial year, revenues were generated as follows:
Revenue recorded in the financial year:
2023

2022

Amounts recorded under contract liabilities
at the beginning of the period

56,394

55,129Service performance obligations fulfilled in earlier periods

2,048

4,251

58,442

59,380in € thousand

DEKRA Financial Report 2023

60

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

DEKRA’s service performance obligations are generally satisfied when the service has been delivered(e.g., advisory & training services) or completed (e.g., vehicle inspection, digital & product solutions).
At DEKRA, terms of payment vary according to region and service. Across the Group, the terms of
payment generally range between ten and sixty days and do not contain any significant financing
components.
For customer contracts that have an original expected duration of more than one year, or service
performance obligations not recognized in accordance with IFRS 15.B16, the transaction price for theremaining unfulfilled or partially unfulfilled service performance obligations as of December 31, 2023
can be broken down as follows:in € thousand

2023

2022

Within one year

7,417

5,958

More than one year

3,434

2,250

10,851

8,208

5.2 Other operating income
Other operating income amounts to 47.4 million euros in the financial year (prior year: 47.1 million
euros). This includes income of 3.6 million euros from damage compensation (prior year: 2.4 million
euros). Furthermore, it also includes exchange rate gains of 3.3 million euros (prior year: 6.0 million
euros), off-period income of 2.7 million euros (prior year: 3.1 million euros) and government grants
totaling 2.6 million euros (prior year: 3.3 million euros). There was also income of 2.2 million euros
from the reversal of impairments (prior year: 1.3 million euros).

5.3 Cost of materials
The cost of materials breaks down as follows:
2023

2022

Cost of purchased services

342,985

314,436

Cost of purchased merchandise

40,31436,410383,299

350,846

2023

2022

in € thousand

5.4 Personnel expenses
Personnel expenses can be broken down as follows:in € thousand
Wages and salaries

2,258,792

2,113,679

Social security costs (excl. pension insurance premiums)

301,639

285,155

Pension costs

157,966

151,419

2,718,397

2,550,253

Pension costs also include employer contributions to the statutory pension insurance fund amounting to 120.8 million euros (prior year: 117.8 million euros). The majority of the Group’s workforce aresalaried employees.

DEKRA Financial Report 2023

61

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

The Group’s employees are distributed as follows (annual average):
2023

2022

GSA

23,04623,720South-West Europe

7,660

7,750

Central East Europe & Middle East

4,548

4,524

APAC

3,859

3,655

North-West Europe

3,529

3,318

Americas

1,497

1,137

Central departments

770

645

Service Divisions

375

324

45,28445,073In the financial year the companies located in Germany, Switzerland, and Austria were combined
within the new Region called GSA (Germany, Switzerland, Austria). The prior-year figures were adjusted
accordingly.

5.5 Other operating expenses
Other operating expenses amount to 619.6 million euros (prior year: 547.5 million euros) and mainly
include travel expenses of 116.1 million euros (prior year: 99.8 million euros), IT and telephone costs of
115.0 million euros (prior year: 104.3 million euros), administrative expenses of 107.7 million euros (prior year: 99.5 million euros), rent and building costs of 75.4 million euros (prior year: 68.4 million euros)
as well as other personnel expenses of 52.7 million euros (prior year: 46.9 million euros). There are
no impairment losses included under the heading of “other operating expenses” (prior year: 1.4 million
euros). These constitute a netted item, wherein income of 18.7 million euros (prior year: 6.4 million
euros) is netted with expenses of 18.7 million euros (prior year: 7.8 million euros). Other operating
expenses also includes exchange rate losses of 4.8 million euros (prior year: 6.0 million euros).

5.6 Amortization/depreciation of intangible assets, rights of use and tangible assets
The composition of depreciation, amortization and impairment losses is presented in the statements ofchanges in intangible assets, right-of-use assets and tangible assets (property, plant and equipment).
See notes 6.1, 6.3 and 8.1.

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Consolidated Financial Statements › Notes to the Consolidated Financial Statements

5.7 Financial result
The financial result breaks down as follows:
2023

2022

Investment results from companies accounted
for using the equity method

-53

-377

Dividends from equity instruments measured at fair value
through other comprehensive income

87

94

Other income from shareholding investments

426

2,350

-1,501-5,766

Result from securities

-461

-260

Result from loans

164

45

Other financial result-1,285-3,537

Interest and similar income

17,276

14,957

Interest and similar expenses-39,090-28,923-11,408-7,541

thereof, interest expense from unwinding discount onlease liabilities-6,615-5,200

thereof, expense from changes in market value-10,491-6,307

thereof, interest expense from provisions for thephased retirement scheme-5-4

thereof, net funding balance from obligations forphased retirement scheme

3-9thereof, net funding balance from pension provisions-7,679-5,145

thereof, other interest and similar expenses-2,895-4,717

Interest result-21,814-13,966

Financial result-23,152-17,880in € thousand

Expenses from shareholding investments
and shares in affiliates

thereof, interest expenses from financial instruments
measured at amortized cost

The investment result from companies accounted for using the equity method, which amounts to-53 thousand euros (prior year: -377 thousand euros), largely relates to the receipt of proportionate
shares in the profits/losses at FSD Fahrzeugsystemdaten GmbH, Dresden, Spearhead AG, Dietlikon/
Switzerland, and CertifAI GmbH, Hamburg.
The expenses from shareholding investments and shares in affiliated companies mainly relate towrite-downs on loans.
The heading of “interest and similar income” mainly includes income from securities amounting to
6,668 thousand euros (prior year: 6,450 thousand euros) and interest income from loans issued andfrom receivables amounting to 6,317 thousand euros (prior year: 2,972 thousand euros). Moreover, italso includes foreign currency valuations amounting to 3,705 thousand euros (prior year: 5,106 thousand euros).
Under the heading “interest and similar expenses”, the expense resulting from changes in market
values was affected by the remeasurement of liabilities arising from put-and-call options in connection
with subsidiaries acquired in the preceding year, amounting to -6,654 thousand euros (prior year:-2,865 thousand euros).
The net funding balance from pension provisions is derived from interest expenses of 34,587 thousand
euros (prior year: 13,049 thousand euros) arising from pension obligations, less the return on plan
assets of 26,908 thousand euros (prior year: 7,904 thousand euros).

DEKRA Financial Report 2023

63

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

5.8 Taxes on income
Income taxes include taxes paid or owed on income as well as deferred taxes.
Tax allocations to DEKRA e. V., Stuttgart, of 39.1 million euros (prior year: 35.1 million euros) are also
recognized under income taxes. The tax allocation corresponds to the actual tax incurred through to
the level of DEKRA SE. The resulting receivables and liabilities are included under receivables fromand liabilities to affiliated companies.
in € thousand

2023

2022

Current taxes

67,52857,165

2,588

2,393

Deferred taxes
Temporary differences
Tax loss carry-forwards

3,737-2,08773,85357,471

Current tax expenses contain off-period tax of 664 thousand euros (prior year: -689 thousand euros).
As of the reporting date, the DEKRA Group stated a total 23,855 thousand euros (prior year:
37,584 thousand euros) of unused tax loss carry-forwards, which resulted in deferred tax assets of
5,857 thousand euros (prior year: 9,763 thousand euros). The Group considers it reasonably certainthat future taxable income will be available against which these can be utilized. The respective local
tax rate was used in each case. The current tax expense is reduced by 261 thousand euros (prior year:
305 thousand euros) due to the utilization of hitherto unused tax losses.
Deferred taxes from temporary measurement differences were determined using future anticipatedlocal tax rates, e. g., 30.5% (prior year: 30.5%) for Germany, 25.0% (prior year: 25.0%) for France and25.0% (prior year: 25.0%) for the Netherlands.
No deferred taxes were recognized on retained earnings from subsidiaries, since the profits are toremain invested in the subsidiaries for the time being.
The deferred taxes as of December 31, 2023 break down as follows:in € thousand

Deferred tax assets

Deferred tax liabilities

Dec. 31, 2023 Dec. 31, 2022 Dec. 31, 2023 Dec. 31, 2022
Non-current assets
Rights of use – leasing

00

69,194

72,120119,279

105,758

0

0

9,560

10,31019,27628,082

4,618

4,219

10,3035,580

Lease liabilities

55,651

55,32200Pension provisions/plan assets

192,375

165,755

212,097

199,465

Plan assets/employers’ pension liability insurance
Other non-current assets
Current assets
Non-current liabilities

848

577

11,784

1,369

Current liabilities

Other non-current liabilities

18,362

20,96573

92

Deferred taxes on temporary measurement differences

400,693362,906

322,727

306,708

Deferred taxes on tax loss carry-forwards

5,857

9,763

0

0

Total deferred taxes

406,550

372,669

322,727

306,708

Offsetting at tax group level-297,207-281,809-297,207-281,809

Balance sheet disclosure

109,343

90,86025,52024,899DEKRA Financial Report 2023

64

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

The following tax reconciliation clarifies the difference between the effective tax expense according to
the statement of comprehensive income and the tax expense that would theoretically arise if the tax
rate of DEKRA SE were to be applied to consolidated earnings before taxes. As in the prior year, the
DEKRA Group’s tax rate is 30.525%.
2023

2022

Consolidated earnings before tax

196,275

183,910

Expected tax expense (30.525%)

59,91356,139in € thousand

Losses for which no deferred taxes were recognized

4,977

2,129

Differences from foreign tax rates-4,351-3,588Tax-free income

-894

-996

Non-deductible expenses

9,062

5,867

Off-period tax items

5,002-2,093144

1373,85357,471Other tax effects
Effective tax expense

Deferred income tax assets and current income tax receivables

The Group has unused tax losses that can be carried forward indefinitely amounting to 91,499 thousand
euros (prior year: 50,801 thousand euros), for which no deferred taxes were recognized, since it is not
yet sufficiently certain that they will be usable for tax purposes.
Deferred tax assets and liabilities were offset at tax group level, provided the requirements for offsetting pursuant to IAS 12.74 were met.
Of the change in deferred taxes arising from the remeasurement of defined-benefit plans, an amountof -26,314 thousand euros (prior year: -63,909 thousand euros) was reported through other comprehensive income. There were also changes in the deferred taxes from first-time consolidations as well
as from currency translation effects.
The heading of “current income tax receivables” mainly contains claims against the tax authorities
resulting from current tax payments.

Deferred income tax liabilities and current income tax liabilities

Besides those from effective tax obligations, tax liabilities arise mainly from deferred tax liabilities. The
table above shows the recognition and measurement differences derived from adjusting the consolidated companies’ commercial balance sheets to be in conformity with IFRS and the consolidation
entries recognized through profit or loss, which resulted in deferred tax assets or liabilities. Deferredtaxes of 2.5 million euros (prior year: 0.3 million euros) were recognized in the first-time consolidations.
Current tax liabilities mainly relate to income tax liabilities of foreign entities. Of the liabilities from tax
allocations to DEKRA e.V., Stuttgart, an amount of 39.1 million euros (prior year: 35.1 million euros) has
been offset against receivables from affiliates.

DEKRA Financial Report 2023

65

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

5.9 Other comprehensive income
The consolidated net income for the year pursuant to IFRS stands at 122.4 million euros (prior year:
126.4 million euros). This serves as a basis for developing the income statement into the statement ofcomprehensive income. Items affecting other comprehensive income, which will not be reclassified
to the income statement in the future, include the remeasurement of defined-benefit pension plansamounting to -87.9 million euros (prior year: 214.6 million euros), less associated deferred taxes of
26.3 million euros (prior year: -63.9 million euros), and also include the change in the fair value of equity instruments measured at fair value through other comprehensive income amounting to 0.4 million
euros (prior year: -6.9 million euros).
Furthermore, there is also an amount of -11.3 million euros in losses from the foreign currencytranslation of subsidiaries’ financial statements that are denominated in foreign currencies, which isrecognized through other comprehensive income (prior year: -6.7 million euros). The effects of foreign
currency translation mainly relate to currency conversions from the Chinese renminbi, the South African
rand and the Taiwan dollar. Under certain circumstances, this item will be reclassified to the income
statement in the future.

6 Consolidated balance sheet
Non-current assets
6.1 Intangible assets
In addition to goodwill, this heading includes customer bases acquired for a consideration that arerecorded under “other intangible assets”. Items also include concessions, industrial property rights andsimilar rights and assets, as well as internally generated intangible assets (IT developments).
Internally generated intangible assets of 1,616 thousand euros (prior year: 2,049 thousand euros) wererecognized for software developments in the reporting year.
In the financial year, impairment losses of 3,516 thousand euros (prior year: 90 thousand euros) wererecognized for IT projects on account of the changed general framework conditions.

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66

Consolidated Financial Statements › Notes to the Consolidated Financial Statementsin € thousand

Intangible assets
Concessions,industrial property
rights, and similar
Goodwillrights and assets

Other intangible
assetsPayments on
Internally gener- account and intanated intangible gible assets underassetsdevelopment

Total

Purchase/manufacturing cost
As of Jan. 1, 2022

625,878

202,827

224,957

51,371

27,2581,132,291

Exchange difference on opening
balance-1,077290-1,056-392

40-2,195

9

-26

-16

-53

1

-85

Exchange difference in current year

0

10,944

3,463

2,049

23,81940,275Additions to the consolidated group

Additions

6,137

43

1,281

17

0

7,478

Disposals-248-10,910-1,356-3,861-34-16,409

0

8,014

188

577

-7,775

1,004

As of Dec. 31, 2022/Jan. 1, 2023

630,699

211,182

227,461

49,70843,3091,162,359

Exchange difference on opening
balance-6,476-153-1,294-142-13-8,078

-256

-9

16

21

-30

-258

0

13,358484

1,616

19,192

34,65032,272376

13,165869

046,6820-2,548-1,509-3,220-4,375-11,652-3,708

0

-762

0

0

-4,470Reclassifications

Exchange difference in current year
Additions
Additions to the consolidated group
Disposals
Reclassification – IFRS 5
Reclassifications

0

6,577

49

55

-6,346335

652,531

228,783

237,610

48,90751,737

1,219,568

Amortization and impairment losses
As of Jan. 1, 2022

-155

-170,874-185,103-31,667-89-387,888

Exchange difference on opening
balance

164

-150

1,072

17

0

1,103

0

12

95

55

0

162

As of Dec. 31, 2023

Exchange difference in current year
Additions0-10,556-9,978-3,278-27-23,839

Additions to the consolidated group

0

-11

-85

-17

0

-113

Disposals

0

10,838

983

3,860

0

15,681

Reclassifications

0

0

-66

0

1

-65

As of Dec. 31, 2022/Jan. 1, 2023

9-170,741-193,082-31,030-115-394,959

Exchange difference on opening
balance

6

106

817

71

0

1,000

Exchange difference in current year

0

-3

14

2

0

13

Additions0-12,296-10,669-3,550-3,237-29,752

Additions to the consolidated group

0

-312

0

-514

0

-826

Disposals

0

2,525

1,207

626

2,932

7,290

Reclassification – IFRS 5

0

0

0

0

0

0

Reclassifications

0

-370

0

0

26

-344

As of Dec. 31, 2023

15

-181,091-201,713-34,395-394-417,578

Carrying amount as of Dec. 31, 2023

652,546

47,69235,897

14,512

51,343801,990

Carrying amount as of Dec. 31, 2022

630,708

40,441

34,37918,67843,194

767,400

Carrying amount as of Jan. 1, 2022

625,723

31,95439,854

19,70327,168744,403

DEKRA Financial Report 2023

67

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

6.2 Goodwill
Goodwill in the financial year contains 225.3 million euros (prior year: 217.9 million euros) relating
to the GSA CGU, 119.8 million euros (prior year: 115.0 million euros) to the South-West Europe CGU,
103.1 million euros (prior year: 95.2 million euros) to the North-West Europe CGU, 83.5 million euros(prior year: 82.6 million euros) to the APAC CGU and 63.7 million euros (prior year: 64.9 million euros)
to the Americas CGU. Moreover, 33.9 million euros (prior year: 31.8 million euros) relates to the Central
East Europe & Middle East CGU and 23.3 million euros (prior year: 23.3 million euros) to the Temp WorkCGU.
In the financial year, the companies located in Germany, Switzerland, and Austria were combined
within the new Region of GSA (Germany, Switzerland, Austria). The prior-year figures were adjusted
accordingly.
Additions to goodwill of 32.3 million euros (prior year: 6.1 million euros) result from first-time consolidations and from asset deals that took place in 2023. Furthermore, goodwill decreased by 6.7 million
euros (prior year: 0.9 million euros) due to currency translation differences and due to a reclassification
to the category of assets held for sale, amounting to 3.7 million euros (prior year: 0.0 million euros).
The recoverable amount of each cash-generating unit was determined using the value-in-use of the relevant unit. The cash flow forecast is based on the long-term planning adopted by the Management thatis applicable as of the time when the impairment test is performed, which covers a planning horizonof five years. Alongside expectations for future market and company development, past experience isalso taken into account in Management’s planning. Cash flows after the five-year planning period werebasically extrapolated on the basis of estimated growth rates of 1.0% (prior year: 0.5%). The estimated growth rates come from forecasts by the Company. For the six regional clusters, cash flows werediscounted using a risk-adjusted interest rate before tax of 8.1% (prior year: 8.2%). For the globally
operating Temp Work unit, a risk-adjusted interest rate before tax of 8.7% (prior year: 9.2%) was used.
A 10% decrease in the expected cash flows or a 1% increase in the discount rate underlying the
calculation of the value-in-use of the cash-generating unit, considered individually, would not resultin any impairment losses.
For more information, please refer to the explanations in the section of these notes describing
impairment losses.

DEKRA Financial Report 2023

68

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

6.3 Tangible assets (property, plant and equipment)in € thousand

Land and buildings

Technical equipment
and machines

Other equipment,
furniture and fixtures

Payments on accountand assets underconstruction

Total

Purchase/manufacturing cost
As of Jan. 1, 2022

278,591

307,421315,400

18,388919,800

Exchange difference on opening
balance166-3,775-1,162-553-5,324

-165

-653

-224

-245

-1,287

AdditionsExchange difference in current year

10,47929,48545,446

18,369103,779

Additions to the consolidated group

4,183

389

283

3,144

7,999

Disposals-6,479-11,334-16,134-50-33,997

Reclassifications

3,650

3,410

3,163

-9,349874

290,425

324,943

346,772

29,704

991,844

Exchange difference on opening
balance-745-5,656-2,223-250-8,874

Exchange difference in current year

-138

-80

10

-49

-257

Additions

9,987

28,783

46,467

24,103

109,340

5

392

689

0

1,086

Disposals-1,099-21,419-13,731-1,141-37,390

As of Dec. 31, 2022/Jan. 1, 2023

Additions to the consolidated group

Reclassification – IFRS 5-1,426-2,314-732

0-4,472

Reclassifications

2,273

5,491

5,584

-13,3426

As of Dec. 31, 2023

299,282

330,140

382,836

39,025

1,051,283

Depreciation and impairment losses
As of Jan. 1, 2022

-86,292-179,391-199,316-5,858-470,857

Exchange difference on opening
balance

72

1,944

333

155

2,504

Exchange difference in current year

77

398

159

0

634

Additions-10,334-27,125-31,408-2-68,869

Additions to the consolidated group

-184

-78

-27

0

-289

Disposals

4,351

10,618

15,107030,076

Reclassifications

29

117

-870

0

-724

As of Dec. 31, 2022/Jan. 1, 2023

-92,281-193,517-216,022-5,705-507,525

Exchange difference on opening
balance

625

2,964

1,185

122

4,896

Exchange difference in current year

-29

41

1

0

13

-6,694-31,077-35,8910-73,662

Additions
Additions to the consolidated group
Disposals
Reclassification – IFRS 5
Reclassifications

-3

-45

-322

0

-370

418

19,485

12,6910

32,594

0

899

523

0

1,422

123

150

-345

0

-72

As of Dec. 31, 2023

-97,841-201,100-238,180-5,583-542,704

Carrying amount as of Dec. 31, 2023

201,441

129,040

144,656

33,442508,579

Carrying amount as of Dec. 31, 2022

198,144

131,426

130,750

23,999484,319

Carrying amount as of Jan. 1, 2022

192,299

128,030

116,084

12,530448,943

DEKRA Financial Report 2023

69

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

6.4 Financial assets measured at equity
The financial assets measured at equity are individually and jointly immaterial for the DEKRA Group. As
in the previous year, there were no discontinued operations within the meaning of IFRS 5 at the level ofassociated companies. The net carrying amount of the financial assets measured at equity amounts to
19,554 thousand euros as of December 31, 2023 (prior year: 18,317 thousand euros).
in € thousand
Aggregated proportionate revenues
Aggregated share in the net income for the year

2023

2022

11,818

11,399-873-206

6.5 Other non-current financial assets
Dec. 31, 2023 Dec. 31, 2022

in € thousand
Shares in affiliates

54,309Other shareholding investments

46,675576

576

Loans to affiliated companies

11,94010,461Loans to associated companies

3,250

0

Other loans

106

114

Securities

16,034

17,797

Sundry other non-current financial assets

3,094

2,447

89,30978,070In the financial year, no shares in affiliated companies not included in the consolidated financial
statement were sold due to strategic reasons (prior year: 537 thousand euros). In accordance with IFRS
9.B5.7.1, an amount of -59 thousand euros (prior year: -9,737 thousand euros) out of the accumulated
other comprehensive income arising from equity instruments measured at fair value through othercomprehensive income was reclassified to revenue reserves.
DEKRA measures the shares held in affiliated companies that are not included in the consolidated
financial statements at their fair value through other comprehensive income. The cumulative amounts
recognized in other comprehensive income from the remeasurement of shares amount to 25.8 million
euros (prior year: 25.4 million euros). Of this, 0.4 million euros (prior year: -6.9 million euros) had apositive effect on other comprehensive income in the financial year. As of December 31, 2023, the fairvalue of the shares in affiliates not included in the consolidated financial statements breaks down by
Region as follows:
Dec. 31, 2023

Dec. 31, 2022

Fair valuein € million

Number ofentities

Fair value spreadin € million

Fair valuein € million

Number ofentities

Central East Europe & Middle East

31.3

North-West Europe

3.5

Fair value spreadin € million

33

0 – 2.9

32.2

34

0 – 6.6

7

0 – 1.9

4.5

7

0 – 3.2

RegionAmericas

0.0

1

0

1.6

2

0 – 1.6

South-West Europe

11.6

6

0 – 7.6

13.1

6

0 – 8.5

GSA

17.1

6

0.1 – 7.4

8.6

4

0 – 3.4

APAC

4.7

3

0 – 3.0

1.0

2

0 – 1.0

In the financial year, the companies located in Germany, Switzerland, and Austria were combined within
the new Region GSA (Germany, Switzerland, Austria). The prior-year figures were adjusted accordingly.

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Consolidated Financial Statements › Notes to the Consolidated Financial Statements

Of the fair value of 68.2 million euros (prior year: 61.0 million euros), 54.3 million euros (prior year:
46.7 million euros) relates to shares in affiliated companies, 11.9 million euros (prior year: 10.5 million
euros) to long-term (non-current) loans and 2.0 million euros (prior year: 3.8 million euros) to shortterm (current) loans to affiliated companies.
Fair value adjustments of about -4,310 thousand euros (prior year: 2.545 thousand euros) were applied to securities. The accumulated impairment losses amount to -5,661 thousand euros (prior year:-1,351 thousand euros).
Risk provisioning for the loans to affiliates and other loans developed as follows in the reporting period:in € thousand

Level 1

Level 2

Level 3

Valuation allowances as of Jan. 1-7,72500Additions-1,06300

Utilization

156

0

0

Reversals

800Reclassifications

1,989

0

0

Valuation allowances as of Dec. 31-6,6350

0

In the prior year, the risk provision for loans to affiliates and other loans developed as follows:in € thousand

Level 1

Level 2

Level 3

Valuation allowances as of Jan. 1-2,16200Additions-5,63200

Utilization

0

0

0

Reversals

125

0

0

Reclassifications

-56

0

0

-7,72500Valuation allowances as of Dec. 31

The risk provisioning for the other non-current financial assets amounts to -10 thousand euros(prior year: -48 thousand euros).

6.6 Other non-current assets
Other non-current assets break down as follows:in € thousand

Dec. 31, 2023 Dec. 31, 2022

Reimbursement claims from employer’s pension
liability insurance

1,590

1,522

Other non-current assets

8,872

7,952

10,462

9,474

The other non-current assets mainly consist of security deposits.

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Consolidated Financial Statements › Notes to the Consolidated Financial Statements

Current assets
6.7 Inventoriesin € thousand

Dec. 31, 2023 Dec. 31, 2022

Raw materials and supplies

1,948

1,920

Work in process

4,402

3,842

Merchandise

7,670

5,057

14,02010,819

6.8 Contract assets and trade receivables
In accordance with IAS 21.21, receivables in a foreign currency are translated into the subsidiaries’
functional currencies using the rate on the date of transaction and are then measured using the closing
rate, pursuant to IAS 21.23. The difference is netted and recognized through profit or loss under otheroperating income/expenses.
An amount of 18,475 thousand euros out of the Group’s gross trade receivables is denominated in
US dollars, 16,898 thousand euros in Sweden krona, 16,595 thousand euros in Chinese renminbi and10,967 thousand euros in Taiwan dollars. From the point of view of the reporting subsidiaries concerned here, these are largely receivables denominated in their functional currency.
in € thousand

Dec. 31, 2023 Dec. 31, 2022

Contract assets – gross

75,64772,551

Valuation allowances on contract assets-1,929-2,092Contract assets

73,71870,459Trade receivables – gross604,139

575,302

Valuation allowances on trade receivables-20,647-24,384

Trade receivables

583,492

550,918

657,210621,377

Contract assets are recognized for unbilled services as of the reporting date. These services mainly
relate to the Service Divisions of Digital & Product Solutions, Advisory & Training Services, and Audit.
Amounts recognized under contract assets are reclassified to trade receivables after defined invoicing
dates or after the service has been concluded and accepted by the customer. Any remaining service
performance obligations from contracts included under contract assets are usually fulfilled and invoiced
within the following financial year.
The tables below show gross carrying amounts according to default risk ratings whereby the rating
categories for trade receivables and contract assets are shown in a simplified form according to theirpast-due-date status.

Trade receivables – grossin € thousand

Dec. 31, 2023 Dec. 31, 2022

Not overdue – 180 days overdue

563,288

Between 181 – 360 days overdue

14,9289,587

More than 360 days overdue

25,92318,768604,139

575,302

DEKRA Financial Report 2023

546,947

72

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

Valuation allowancesin € thousand

Dec. 31, 2023 Dec. 31, 2022

Not overdue – 180 days overdue-2,466-5,889Between 181 – 360 days overdue-1,534-2,716More than 360 days overdue-16,647-15,779-20,647-24,384

The write-downs on trade receivables that – due to applying the simplified approach –are basically to be allocated to Level 2 of the impairment model developed as follows:
2023

2022

-24,384-24,104-171-50

Additions-6,130-8,389

Utilization

5,975

2,472

Reversals

4,063

5,687

-20,647-24,384in € thousand
Valuation allowances as of Jan. 1
Additions to the consolidated group

Valuation allowances as of Dec. 31

None of the contract assets are past their due date. The write-downs on contract assets that –due to applying the simplified approach – are basically to be allocated to Level 2 of the impairment
model developed as follows:in € thousand

2023

2022

Valuation allowances as of Jan. 1-2,092-2,242

Additions

-434

-769

Utilization

4

0

Reversals
Valuation allowances as of Dec. 31

593

919

-1,929-2,092The expense for the increase in impairment losses and the income from the reversal of impairments
are netted and included under other operating expenses.

6.9 Other current financial assets
in € thousand
Securities

Dec. 31, 2023 Dec. 31, 2022
883

25,960Receivables from affiliated companies andcompanies with which a shareholding relationship exists

6,660

23,847

Sundry other financial assets

75,05789,41082,600139,217

The decrease of 25,077 thousand euros in securities is mainly attributable to short-term cash deposits
that expired in the financial year.
Receivables from affiliates and companies with which a shareholding relationship exists do not contain(prior year: 93,929 thousand euros) any liabilities from income tax and VAT, profit transfers from DEKRASE and other allocations to the owner which were offset against receivables from cash pooling and otherallocations amounting to 1,421 thousand euros (prior year: 108,443 thousand euros). Other financial
assets essentially consist of reimbursement claims from damage claim settlements of 51,146 thousand
euros (prior year: 45,915 thousand euros).

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Consolidated Financial Statements › Notes to the Consolidated Financial Statements

Impairment losses on other current financial assets are mainly related to Level 1 of the impairment
model and developed as follows:in € thousand

2023

2022

Valuation allowances as of Jan. 1-7,249-9,172

Additions-62-1,651

Utilization

2,264

2,338

Reversals

1,786

1,186

79

50

-3,182-7,249Reclassifications
Valuation allowances as of Dec. 31

6.10 Other current assets
This item mainly contains prepaid expenses and other current tax receivables.

6.11 Cash and cash equivalents
The development of cash and cash equivalents – which constitute cash pursuant to IAS 7 – is presented
in the statement of cash flows.
Cash and cash equivalents break down as follows:in € thousand

Dec. 31, 2023 Dec. 31, 2022

Cash at banks

115,522

134,569

Cash on hand

2,564

1,731

878

229

118,964

136,529

Cash equivalents – less than 3 months

Bank balances include short-term deposits with an original term of up to three months.

6.12 Equity
For information on the development of equity, please refer to the statement of changes in equity.
The capital stock of DEKRA SE remains unchanged from the previous year at 25,565 thousand euros.
As in the previous year, it is divided into 10,000,000 authorized par-value bearer shares. Of these, as in
the previous year, 10,000,000 shares are issued and fully paid in. The par value per share amounts to2.556459406 euros. The capital reserve of 655,529 thousand euros (prior year: 630,529 thousand euros)
mainly includes contributions from DEKRA e. V., Stuttgart. A contribution of 25,000 thousand euros(prior year: 10,000 thousand euros) was made to the capital reserve in the reporting year.
Revenue reserves contain the Group net income for the period and the profits of consolidated companies
generated in prior years, insofar as these have not been distributed or transferred. There is a profit
and loss transfer agreement in place between DEKRA SE and the parent company. The profit transfer isreported through other comprehensive income as a transaction with the equity investor. The difference
between the profit transfer in accordance with German commercial law and the IFRS result is recordedin the revenue reserves. The accumulated other comprehensive income comprises changes in actuarial
gains and losses from defined-benefit plans, the changes in fair value arising from the measurement ofequity instruments, the recognition of deferred taxes, and the recognition of differences arising fromcurrency translation. The changes in fair value arising from the measurement of equity instruments
through other comprehensive income are reclassified to revenue reserves when the equity instrument
is derecognized.

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Consolidated Financial Statements › Notes to the Consolidated Financial Statements

6.13 Non-controlling interests
For the changes in non-controlling interests, please refer to the statement of changes in equity.
There are non-controlling interests in those entities that are shown in the list of shareholdings (note 15)
with an investment stake of less than 100% unless options for the non-controlling interests werearranged within the framework of the Company acquisition. A purchase price liability is recognized forthese interests in accordance with IAS 32 and non-controlling interests are therefore not presented.
The information below presents the required pro-rata financial information concerning the mostsignificant entity with non-controlling interests (DEKRA iST Reliability Services Inc., Hsinchu, Taiwan).
The voting rights shares correspond to the capital shares held in the companies. The figures are thepre-intragroup elimination amounts.
in € thousand

Dec. 31, 2023 Dec. 31, 2022

Aggregated non-current assets

17,185

15,710Aggregated current assets

5,297

5,127

Aggregated non-current liabilities

4,110

3,614

Aggregated current liabilities

5,386

5,078

Non-controlling interests

9,606

12,163in € thousand

Dec. 31, 2023 Dec. 31,2 022

Aggregated revenue

9,423

9,655

Aggregated net income for the year

1,079

1,201

For reasons of materiality, the above presentation only shows the financial information for
DEKRA iST Reliability Services Inc., Hsinchu, Taiwan.

6.14 Provisions for pensions and similar obligationsin € thousand

Dec. 31, 2023 Dec. 31, 2022

Pension provisions in Germany

255,106

184,067

Pension provisions in other countries

16,742

15,511

271,848

199,578

The Group has both defined-benefit and defined-contribution plans for retirement, invalidity andsurviving dependants’ pension commitments based on works agreements and individual contractual
agreements.
These pension plans grant pension benefits, the level of which depends on the length of service andeligible income. The age limit is the respective legal retirement age for the statutory pension insurance.
The pension is paid in part directly by the companies that make the pension commitments and in partby a legally independent pension support fund (DEKRA Unterstützungskasse e. V., Stuttgart).
The obligations relating to the consolidated member companies are included in full in these consolid­
ated financial statements. The benefits are partly financed internally through the systematic accumulat­
ion of provisions, and partly through contributions paid into employers’ pension liability insurance. The
direct and indirect commitments are defined-benefit obligations for which assets (from the conclusion of
employers’ pension liability insurance policies as well as other sources) have been set aside within DEKRA
Unterstützungskasse e. V., Stuttgart. In addition, DEKRA implemented the establishment of a Contractual
Trust Arrangement (CTA) effective October 24, 2017 to safeguard the pension obligations from thesepension plans. A trust agreement to safeguard pension entitlements was entered into with Allianz Treuhand GmbH, Stuttgart, which acts as the trustee in a two-tier trust arrangement (administrative trust andcollateral trust). The funds transferred to finance the pension obligations are managed in trust by Allianz
Treuhand GmbH, Stuttgart, and are earmarked solely for the settlement of pension obligations.
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Consolidated Financial Statements › Notes to the Consolidated Financial Statements

The company pension scheme was reorganized with effect from January 1, 2012 (DEKRA company pension). Claims vested prior to this date were not affected. Within the scope of the reorganization, directcommitments made as defined-contribution plans were given in accordance with the rules of separately concluded works agreements. The pension plan is described as a defined-contribution plan, as theamount of the benefit is derived from and determined by previously defined pension contributions.
In addition to the pension contribution paid by the employer, employees can increase this amount by
converting salary components (deferred compensation).
The employers’ pension liability insurance and assets of DEKRA Unterstützungskasse e. V., Stuttgart, as
well as the legally separate funds of the CTA are treated as plan assets in accordance with IAS 19.113.
DEKRA Unterstützungskasse e. V., Stuttgart, has an advisory board which is regularly informed about
the situation of the assets in the fund.
The pension provisions in other countries mainly relate to retirement pension plans and one-off termination benefits when employees leave the Company to go into retirement.
The defined-benefit obligations are calculated annually by independent actuaries using the projected
unit credit method. The 2018G mortality tables of Prof. Klaus Heubeck are used for the German pension obligations, while generally accepted mortality tables are used for the foreign obligations. France
uses the INSEE tables 16-18, and the Netherlands uses the AG forecast tables 2022. These are the twocountries that have the next largest share of pension obligations after Germany.
At some foreign entities, there are joint multi-employer plans for defined-benefit pension plans. The
volume of these plans is immaterial for the DEKRA Group.
Apart from the general interest, inflation, longevity and jurisdiction risks, there are no particularcompany-specific risks for the existing plans. The longevity risk is taken into consideration by using
generation life tables when calculating the obligation. In particular, the generation life tables take into
account the expected continued increase in life expectancy by means of appropriate assumptions. The
exceptionally high rate of inflation and the inflation that had already occurred by December 31, 2023
(adaptation backlog) were specifically considered by means of a short-term pension trend of 4.5% for
the years 2024 and 2025 respectively. From 2026 on the Group returned to a long-term estimate of
2.0% p.a. for the inflation risk (prior year: 2.0%), which is adequate according to current knowledge. It
also primarily has an effect on the review of current pensions. There is currently no knowledge of any
employment-law-related risks based on Supreme Court rulings that could affect the plans.

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Consolidated Financial Statements › Notes to the Consolidated Financial Statements

Defined-benefit plans
The carrying amount of provisions for pensions and similar obligations recorded in the balance sheet
can be shown as follows:in € thousand
As of Jan. 1, 2022

Pension obligation

Plan assets (-)

Total

1,094,634-657,683

436,951

Current service cost

22,3560

22,356

Past service cost

-4,633-961-5,594

Net interest cost (standard interest)

13,049-7,904

5,145

Net pension cost according to the income statement

30,772-8,865

21,907

Actual return on plan assets, less “net interest cost”

032,15832,158Actuarial gain/loss from changes in demographic
assumptions

-516

0

-516

Actuarial gain/loss from changes in assumptions based on
experience

5,220

143

5,363

Actuarial gain/loss from changes in financial assumptions-251,3840-251,384

Change arising from asset ceiling unless contained in net
interest expense

-223

0

-223

Remeasurement of defined-benefit pension plans-246,903

32,301-214,602

Payments of current pensions-35,923

19,489-16,434

0

325

325

Employer contributions to the pension plan0-27,930-27,930

Employee contributions to the pension plan

7,856

-8,006-150-28,067-16,122-44,189

54

-543

-489

As of Dec. 31, 2022

850,490-650,912

199,578

thereof, funded

811,286

thereof, unfunded

39,204

Plan settlement payments

Total payments
Changes in the consolidated group

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Consolidated Financial Statements › Notes to the Consolidated Financial Statementsin € thousand

Pension obligation

Plan assets (-)

Total

As of Jan. 1, 2023

850,490-650,912

199,578

Current service cost

19,5890

19,589

350

0

350

Net interest cost (standard interest)

34,587-26,908

7,679

Net pension cost according to the income statement

54,526-26,908

27,618Actual return on plan assets, less “net interest cost”

0

-888

-888

Actuarial gain/loss from changes in demographic
assumptions

78

0

78

Actuarial gain/loss from changes in assumptions based on
experience

6,301

4,269

10,570

Actuarial gain/loss from changes in financial assumptions

78,105

078,105

Change arising from asset ceiling unless contained in net
interest expense

46

0

46

Remeasurement of defined-benefit pension plans

84,5303,381

87,911

Payments of current pensions-40,721

21,969-18,752

0

452

452

Employer contributions to the pension plan0-24,515-24,515

Employee contributions to the pension plan

8,511

-8,739-228-32,210-10,833-43,043

-331

115

-216

As of Dec. 31, 2023

957,005-685,157

271,848

thereof, funded

910,679

thereof, unfunded

46,326

Past service cost

Plan settlement payments

Total payments
Changes in the consolidated group

Plan settlements are the result of the settlement of obligations due to the termination of employment
contracts.
The weighted average duration of the major share of the pension obligations is 11.54 years(prior year: 13.64 years).
The expected future pension payments for the coming five financial years are as follows:in € thousand
Expected pension benefit payments

2024

2025

2026

2027

2028

42,45445,35145,92446,54446,720

The ratio of the benefit obligation in relation to plan assets reflects the funded status of the pension
plan concerned, with any excess of the benefit obligation over plan assets constituting a plan deficit.
Both the benefit obligation and the plan assets can vary over time, leading to an increase/decrease in
the plan deficit. Reasons for such fluctuation can include changes in market interest rates and thus in
the discount rate, or adjustments to actuarial assumptions.
The DEKRA Group’s plan assets mostly comprise employers’ pension liability insurance policies and are
subject to only limited fluctuations on account of the existing minimum returns. The contractual trust
agreement (CTA) is primarily funded by the contribution of specialized funds and liquid funds (cashand cash equivalents). In principle, the separate trust assets of the CTA are subject to the same risks asdirect capital investments. We refer in this regard to our explanations in note 10. The recognized plan
deficit is mostly covered by cash flows from operating activities.
It is the long-term goal of the DEKRA Group to gradually increase plan assets in order to cover the
deficit.
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Consolidated Financial Statements › Notes to the Consolidated Financial Statements

Key parameters

When calculating the pension obligation according to the projected unit credit method, the following
key parameters apply for the DEKRA Group:in %Dec. 31, 2023 Dec. 31, 2022

Interest rate

3.48

4.21

Salary trend

1.96

1.99

Pension trend

1.93

2.00

Sensitivities are determined on the basis of the same volume and the same measurement process as
for the measurement of pension obligations as of the reporting date. In determining sensitivities, every
assumption was modified separately in each individual case. The figures given are averages weighted
with the present value of the pension obligation concerned. The obligations in other countries, which
are determined taking into account country-specific measurement principles and parameters, areimmaterial.
German pension commitments are partly financed through DEKRA Unterstützungskasse e. V., Stuttgart.
The assets of DEKRA Unterstützungskasse e. V., Stuttgart, meet the criteria necessary to qualify as plan
assets in accordance with IAS 19.
For individual entities, pension commitments are financed through payments to an insurance company.
The resulting plan assets include qualifying insurance policies only.

Sensitivity analysis

The table below shows the effects on the pension obligation that result from any change in the parameters. The analysis relates to parameters where a change was considered possible as of the reporting
date. The calculation did not take into account any correlation between the parameters.

Impact on the benefit obligation as of Dec. 31, 2023
Change in assumptions

Increase in assumption Decrease in assumption

Interest rate

0.5%

Decrease of 4.1%

Increase of 4.5%

Salary trend

0.5%

Increase of 0.1%

Decrease of 0.1%

Pension trend

0.5%

Increase of 4.1%

Decrease of 3.7%Age

1 yearIncrease of 3.8%

Decrease of 3.9%

Impact on the benefit obligation as of Dec. 31, 2022
Change in assumptions

Increase in assumption Decrease in assumption

Interest rate

0.5%

Decrease of 4.0%

Increase of 4.4%

Salary trend

0.5%

Increase of 0.1%

Decrease of 0.1%

Pension trend

0.5%

Increase of 3.9%

Decrease of 3.6%Age

1 yearIncrease of 3.4%

Decrease of 3.5%

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Consolidated Financial Statements › Notes to the Consolidated Financial Statements

Plan assets

The fair value of plan assets breaks down into the following asset categories:
thereof, market
price quoted on an
Dec. 31, 2023
active marketin € thousand

thereof, market pricequoted on an
Dec. 31, 2022
active market

Employer’s pension
liability insurance

465,0360442,257

0

Securities

214,818

214,818

199,875

199,875

5,303

0

8,780

0

685,157

214,818

650,912

199,875

Other

The securities are largely specialized funds containing a mixture of pensions and shares.
The funds in this case mostly consist of pensions.
The employer contributions to plan assets are expected to amount to 25.6 million euros in the next
financial year (prior year: 17.7 million euros). The plan assets do not contain any of the Group’s own
financial instruments, nor its own real-estate property, nor other assets that DEKRA uses itself.

Defined-contribution plans

One part of the pension benefits for the majority of employees, especially in Germany, is the statutory
pension insurance. For several German and foreign entities, there are voluntary defined-contributionplans for post-employment benefits. Expenses related to defined-contribution plans, including pension
insurance contributions, amounted to 135.5 million euros in the reporting year (prior year: 132.4 million euros). The future amount of these expenses essentially depends on the development of theunderlying pension insurance systems.

6.15 Non-current and current provisions
Non-current provisionsin € thousand
Other personnel provisions

As ofJan. 1, 2023

AdditionInterest
effects

Utilization

Reversal

Reclassi­
fications

As ofDec. 31, 2023

3,641

754

104

-327

-230

-47

3,895

148

-3

0

34

0

-47

132

thereof from phased retirement obligation

754

188

5

-174

0

0

773

thereof from phased retirement plan assets

-606

-191

-5

208

0

-47

-641

Provisions for employees' long-service awards

3,120

517

104

-360

0

0

3,381

373

240

0

-1

-230

0

382

Phased retirement

Sundry other personnel provisions

23,518

9,621

-239

-3,372-6,8130

22,715

thereof, warranty provisions

4,327

6,162

-259

0

-5,641

0

4,589

thereof, litigation, damages and similar
obligations

8,652

2,163

20

-1,090

-398

0

9,347

thereof, other provisions

10,5391,296

0-2,282

-774

0

8,779

27,15910,375-135-3,699-7,043-47

26,610Sundry provisions – other

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Consolidated Financial Statements › Notes to the Consolidated Financial Statements

Current provisions
As ofJan. 1, 2023

Addition

Utilization

Reversal

Reclassifi­
cations

As ofDec. 31, 2023

Other personnel provisions

5,737

2,502

-3,401

-881

0

3,957

Sundry provisions – other

19,676

5,496-12,423-3,317

0

9,432

100

0

0

0

0

100

thereof, impending losses

1,035

913

-265

-481

0

1,202

thereof, litigation, damages and similar obligations

13,989223-9,268-1,4450

3,499

thereof, other provisions

4,552

4,360

-2,890-1,391

0

4,631

25,413

7,998-15,824-4,1980

13,389in € thousand

thereof, restructuring – other

The other personnel provisions mainly reflect obligations due to the termination of employment contracts. There are uncertainties inherent in pending legal proceedings in terms of the possible payment
of settlements and the length of the proceedings. Non-pending legal proceedings can normally be
expected to be settled within one year.
In the case of the provisions for the phased early retirement scheme, these are provisions for phased
early retirement models that have already entered into the passive (non-working) phase. Such provisions are therefore continuously decreasing. In several companies employees are granted an anniversary bonus paid after ten years’ and twenty-five years’ service to the Company. Allocations to provisions
for anniversary bonuses already start being made upon the employee’s entry into the Company. The
anniversary bonus provisions are therefore subject to continuous changes (additions, utilization andreversals). Provisions for warranties mainly comprise risks arising from warranty commitments that goover and above the scope of insurance policies. The Group bases its assessment of the likelihood ofclaims actually being made and of the amount of such claims on past experience and currently available
figures.
The provisions for litigation risks, damage claims and similar obligations mainly include damages
reported by customers along with the connected litigation costs, as well as reconstitution obligations
relating to tenant fixtures. Due to the underlying issues, it is expected that these matters will have a
medium-term to long-term time frame.
The other provisions mainly relate to potential repayments resulting from subsidies received in thecontext of the German SodEG law (a law relating to the COVID-19 pandemic). The time frame and theamount of the repayments are uncertain.
The provisions cover all identifiable obligations to third parties in accordance with IAS 37. They arerecognized at the amount that will probably be required.

6.16 Non-current and current financial liabilities
Non-current financial liabilitiesin € thousand

Dec. 31, 2023 Dec. 31, 2022

Liabilities to banks

64,172

85,912

Lease liabilities

292,893

300,129

0

1

3,558

18,485

360,623

404,527

Other financial liabilities
Liabilities from company acquisitions

The decrease of 7,236 thousand euros in non-current lease liabilities is mainly due to reclassificationsof non-current lease liabilities to the category of current lease liabilities, upon their maturities. This
also explains the increase of current lease liabilities by 4,269 thousand euros. The liabilities arisingfrom company acquisitions are largely contingent purchase price components. The decrease of 14,927
thousand euros in non-current liabilities from company acquisitions is mainly due to reclassifications of
non-current to the category of current liabilities from company acquisitions, upon their maturities.
DEKRA Financial Report 2023

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Consolidated Financial Statements › Notes to the Consolidated Financial Statements

Current financial liabilitiesin € thousand
Liabilities to banks

Dec. 31, 2023 Dec. 31, 2022
118,948

127,787

Profit participation rights

9,640

10,629Financial liabilities to affiliated companies

55,61233,816

Financial liabilities to associated companies

1,038

1,002

Lease liabilities

115,609111,340

Liabilities from company acquisitions

23,278216

Liabilities to employees

40,29544,811Other financial liabilities

19,40623,161

383,826

352,762

The total decrease of 30,579 thousand euros in non-current and current bank liabilities is mainly due tothe repayment of two promissory note loans.
DEKRA SE granted its managers and employees the option of subscribing to profit participation rights
capital of up to 10,737 thousand euros (4.2 million profit participation rights at 2.55645 euros each). Of
this total, 1,946,918 (prior year: 2,074,431) profit participation rights were subscribed. The subscribedparticipation rights capital grants a share in the adjusted consolidated net income of DEKRA SE with aminimum return of 4% p.a. and a maximum return of 30% p.a. Subscribed profit participation rights
can be terminated unilaterally by the recipient at short notice at any time.
The current financial liabilities to affiliates include liabilities from the cash pool, from income tax and
VAT as well as other allocations, some of which were netted with receivables from affiliates.
The addition to current liabilities from company acquisitions is largely because of reclassifications of
non-current liabilities from company acquisitions based on their maturities and is also due to the measurement of the purchase price liabilities.

6.17 Trade payables and contract liabilities
In the financial year, trade payables and contract liabilities come to the following amounts:in € thousand

Dec. 31, 2023 Dec. 31, 2022

Trade payables

124,554

133,900

Contract liabilities

57,95955,872

182,513

189,772

DEKRA receives payments from customers based on a settlement schedule that is an integral part ofthe contracts. Contract assets relate to the conditional right to consideration for the complete fulfillmentof the contractual obligations. Receivables are recognized as soon as DEKRA fulfills its contractual obligations. Contract liabilities relate to payments that are received prematurely, i.e., before the contractual
obligations have been fulfilled. Contract liabilities are recognized as revenue as soon as the contractual
service has been delivered.

DEKRA Financial Report 2023

82

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

6.18 Other non-current and current liabilities
Other non-current non-financial liabilities primarily include liabilities resulting from security deposits
received.
Other current liabilities break down as follows:in € thousand

Dec. 31, 2023 Dec. 31, 2022

Personnel-related liabilities

328,859

287,774

Other liabilities for taxes

65,151

61,522Social security

25,64730,793

Prepayments received from damage claim settlements

22,056

15,982Sundry other items

28,15032,673469,863428,744

Personnel-related liabilities chiefly relate to outstanding variable salary components.
Liabilities from taxes principally relate to VAT and wage tax.

7 Consolidated statement of cash flows
The statement of cash flows shows how the cash and cash equivalents changed in the course of thereporting year as a result of cash inflows and outflows. In accordance with IAS 7, a distinction is madebetween cash flows from operating activities and those from investing and financing activities. Cashflows from operating activities are determined indirectly while cash flows from investing and financing
activities are determined directly.
The composition of cash and cash equivalents matches the net balance of cash and cash equivalents
disclosed in the balance sheet as of the reporting date. There are no cash and cash equivalents that are
subject to restricted availability.
The cash flow from investing activities includes the following payments from the acquisition and disposal of fully consolidated subsidiaries:in € thousand
Total purchase/sale priceDec. 31, 2023 Dec. 31, 2022
17,3630

thereof, settled/received in cash

14,1020

thereof, not yet settled/received

3,261

0

2,510

0

Non‑current assets

1,018

0

Current assets

3,360

0

0

0

488

0

Amount of cash and cash equivalents acquired/disposed ofAmount of assets and liabilities acquired/disposed of

Non-current liabilities
Current liabilities

DEKRA Financial Report 2023

83

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

In addition, the cash flow from investing activities comprises purchase price payments for further
subsidiaries, other business units and cash paid for capital increases at non-consolidated subsidiaries,
amounting to 35,941 thousand euros (prior year: 9,348 thousand euros). As in the previous year, thesepurchases do not give rise to liabilities based on variable purchase price components.
The development of liabilities stemming from financing activities is as follows.
Non-cash-effective changesin € thousand

Carrying
amountDec. 31, 2023

Cash-effective Exchange ratechanges
effects

Acquisition ofcompanies

Changes infair value

Otherchanges

Carrying
amountDec. 31, 2023

Non-current loans

85,912-60,66820

038,92664,172Current loans

127,787

31,465-1,37800-38,926

118,948

0

0

0

0

0

0

0

213,699-29,203-1,37600

0183,120

Derivative financial instruments
Total liabilities
from financing activities*

In the prior year, liabilities resulting from financing activities developed as follows:
Non-cash-effective changesin € thousand

Carrying
amountDec. 31, 2022

Cash-effective Exchange ratechanges
effects

Acquisition ofcompanies

Changes infair value

Otherchanges

Carrying
amountDec. 31, 2022

Non-current loans

146,602-75,872

45

4,328

0

10,80985,912Current loans

132,789

1,978

1,283

2,546

0

-10,809

127,787

0

0

0

0

0

0

0

279,391-73,894

1,328

6,874

0

0

213,699

Derivative financial instruments
Total liabilities
from financing activities** Not including lease liabilities. These are presented separately in note 8.1.

DEKRA Financial Report 2023

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Consolidated Financial Statements › Notes to the Consolidated Financial Statements

8 Other disclosures in the Notes
8.1 Leasing
Leasing as a lessee
The companies of the Group have concluded lease agreements for IT, buildings, vehicles, technicalequipment, and for other equipment, furniture, and fixtures. Lease agreements for IT generally haveterms between one and five years; buildings between one and thirty years. For vehicles, the term isgenerally between one and six years; for technical equipment between three and seven years. Leaseagreements for other equipment, furniture and fixture, generally have terms between one and ten
years. The obligations under the lease agreements are secured by the lessor’s title to the leased assets.
Several lease agreements contain extension and termination options.
The Group also concluded lease agreements for assets with a term of twelve months or less as well as
for low-value assets. The Group applied the “short-term lease” and “lease of low-value assets” recognition exemptions for these leases.
The following table shows the carrying amounts of right-of-use assets recognized and the movements
during the reporting period:in € thousand

Buildings

VehiclesOther equipment,
furniture andfixtureAs of Jan. 1, 2022

328,072

30,825

1,379

ITTechnical
equipment

Total

1,648

7,979

369,903

Depreciation expense-87,838-19,587

-531

-960

-2,452-111,368

Additions

126,920

22,489

532

1,515

779

152,235

Disposals-5,370-2,102

-143

-11

0

-7,626

Exchange rate differences-2,746

-370

-3

-1

0

-3,120

As of Dec. 31, 2022

359,038

31,255

1,234

2,191

6,306

400,024

Depreciation expense-89,892-21,479-495-1,047-2,374-115,287

Additions

91,901

32,684

1,508

610

417

127,120

Disposals-10,297-1,696

-408

-25

-8

-12,434

Exchange rate differences-1,330

114

46

-6

0

-1,176

349,420

40,878

1,885

1,723

4,341

398,247

As of Dec. 31, 2023

The following table shows the carrying amounts of the lease liabilities and the movements during thereporting period:
2023

2022

As of Jan. 1

411,469

381,168

Additions

125,920

153,937

6,637

5,233

Payments and disposals-134,149-125,896

Exchange differences-1,375-2,973

408,502411,469

thereof, current

115,609111,340

thereof, non-current

292,893

300,129in € thousand

Interest growth

As of Dec. 31

DEKRA Financial Report 2023

85

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

The maturity analysis of lease liabilities is presented in note 11.
The following amounts were recognized through profit or loss in the reporting period:in € thousand

2023

2022

Interest expenses on lease liabilities-6,962-5,383

Income from the subletting of right-of-use assets,
presented in other revenue

274

290

Expenses from short-term leases-27,173-21,838

Expenses from low-value leases-8,561-8,994

Total-42,422-35,925

The total cash outflows for leases amounted to 122,757 thousand euros in 2023 (prior year:
116,379 thousand euros). In addition, non-cash-effective additions to right-of-use assets of
127,120 thousand euros (prior year: 152,235 thousand euros) and lease liabilities of 125,920 thousand euros (prior year: 153,937 thousand euros) were recognized.
Several lease agreements containing extension and termination options were concluded. These options
are negotiated by Management to provide flexibility in managing the leased-asset portfolio in alignment with the relevant business needs. Determining whether these extension and termination options
are reasonably certain to be exercised requires management to perform significant valuation policy
decisions (see note 3.2).

8.2 Other financial obligations
Other financial obligations including purchase commitments amount to 4,370 thousand euros (prioryear: 3,947 thousand euros). These are mainly attributable to agreements concluded on commissioned
construction projects and also to long-term framework agreements.

8.3 Contingent liabilities, other contingencies and collateral provided
Collateral and guarantees have been granted amounting to 16,980 thousand euros (prior year:
7,813 thousand euros). The risk of a claim being made on these is currently deemed to be low.
If a claim is made on the guarantees, they fall due immediately.
The DEKRA Group is not involved in any court proceedings that could have a significant influence on its
economic or financial situation.

8.4 Government grants
Government grants of 2,667 thousand euros (prior year: 3,442 thousand euros) were received in thepast financial year. The above mainly relate to payroll subsidies and integration aid.

8.5 Collateral and assets subject to restricted availability
As in the previous year, there were no ownership or availability restrictions on tangible assets ownedby the Group in a legal and economic sense, except for assets capitalized in the context of the financeleases. Other assets contain a total of 1.6 million euros (prior year: 1.5 million euros) in plan assets from
employers’ pension liability insurance policies that serve to safeguard pension obligations, but which
are not pledged to the entitled employees.
No financial assets were pledged as collateral for liabilities or contingent liabilities.

DEKRA Financial Report 2023

86

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

9 Capital management
DEKRA pursues the goal of sustainably increasing equity. The aim is to maintain an appropriate
debt-to-equity ratio while improving the EBIT margin. Equity was strengthened in the financial year
through a contribution to the capital reserve of 25.0 million euros as well as an increase in the revenue
reserves of 25.4 million euros. Differences from the currency translation of the financial statements
prepared in foreign currencies by consolidated subsidiaries had a negative effect of -11.3 million
euros on equity. The DEKRA Group’s equity ratio stands at 39.3% as of the end of the reporting period(prior year: 41.0%).

10 Additional information on financial instruments
Pursuant to IFRS 9, financial assets and liabilities are allocated to one of the following categories:a) Financial assets at amortized costb) Financial assets at fair value through other comprehensive incomec) Financial assets at fair value through profit or lossd) Financial liabilities at amortized coste) Financial liabilities at fair value through profit or loss
The following table shows the net gains/losses for each category:in € thousand
Financial assets at amortized cost
Financial assets at fair value through other comprehensive
incomeDec. 31, 2023 Dec. 31, 2022
7,353

-3,230

162

367

6,801

6,626

Financial liabilities at amortized cost

-10,847-7,541

Financial liabilities at fair value through profit or loss

-7,227-2,481-3,757-6,259Financial assets at fair value through profit or loss

The decrease in net losses for financial assets measured at amortized cost primarily results from lower
expenses for the allocation of valuation allowances.
The net gains from assets measured at fair value through other comprehensive income mainly result
from dividend-type distributions.
The income from assets measured at fair value through profit or loss is attributable to income from
distributions.
The expense from financial liabilities measured at fair value through profit or loss stems from theincrease in liabilities from put options.
The remeasurement reserve for equity instruments measured at fair value through other comprehensive income rose by 0.4 million euros in the 2023 financial year (prior year: 2.8 million euros).

DEKRA Financial Report 2023

87

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

The levels of the fair value hierarchy and their application to our assets and liabilities are described
below:
Level 1:Market prices quoted on active markets for identical assets or liabilities

Level 2: 	Information other than quoted market prices that can be observed directly (e. g., prices) orindirectly (e. g., derived from prices)
Level 3:

Information relating to assets and liabilities that is not based on observable market data

The following tables show a breakdown of balance sheet items into categories and classes as well as
the allocation of the financial assets and liabilities measured at fair value to the three levels of the fairvalue hierarchy. The fair values of the assets and liabilities measured at amortized cost correspond tothe carrying amounts.

Assetsin € thousand

Carrying Financial assets
amountat amortized
Dec. 31, 2023
cost

Financial assets
at fair value
through othercomprehensive
incomeFinancial assets
at fair value
through profit
or loss

Non-current assets
Shares in affiliates and investee companies

54,885054,8850

Securities

16,0340

33

16,001Loans

15,296

15,2960

0

Other financial assets

3,094

3,094

0

0

89,30918,39054,91816,001

Trade receivables

583,492

583,49200Cash and cash equivalents

118,964

118,964

0

0

883

0

690

193

6,660

6,660

0

0

Current assets

Securities
Receivables from affiliates and investee
companies
Other financial assets

DEKRA Financial Report 2023

75,05775,05700785,056

784,173690

193

874,365

802,563

55,60816,194

88

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

Assetsin € thousand

Fair value
Dec. 31, 2023

thereof,fair valuelevel 1

thereof,fair valuelevel 2

thereof,fair valuelevel 3

Non-current assets
Shares in affiliates and investee companies

54,8850054,885

Securities

16,0340

33

16,001

n/a

n/a

n/a

n/a

Loans
Other financial assets

n/a

n/a

n/a

n/a

70,919033

70,886

Trade receivables

n/a

n/a

n/a

n/a

Cash and cash equivalents

n/a

n/a

n/a

n/a

Securities

883

883

0

0

Current assets

Receivables from affiliates and investee
companies

n/a

n/a

n/a

n/a

Other financial assets

n/a

n/a

n/a

n/a

883

883

0

0

71,802883

33

70,886Equity and liabilitiesin € thousand

Carrying
amountDec. 31, 2023

Financialliabilities at fair
Financial
Financialvalue through liabilities at fairliabilities at other comprevalue throughamortized cost hensive income
profit or loss

Non-current liabilities
Liabilities from company acquisitions

3,557

0

0

3,557

Financial liabilities

64,17264,1720

0

Lease liabilities

292,893

0

0

0

0

0

0

0

360,623

64,172

0

3,557

124,554

124,554

0

0

Other non-current liabilities

Current liabilities
Trade payables

0

0

0

0

Profit participation rights

Derivatives in hedge accounting

9,640

9,640

0

0

Liabilities from company acquisitions

23,2780023,278

Liabilities to banks

118,948

118,94800Liabilities to affiliated companies

55,611

55,61100Liabilities to associated companies

1,038

1,038

0

0

Other current liabilities

59,70359,7030

0

Lease liabilities

115,60900

0508,380

369,493

023,278869,003433,666

026,836DEKRA Financial Report 2023

89

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

Equity and liabilitiesin € thousand

Fair value
Dec. 31, 2023

thereof,fair valuelevel 1

thereof,fair valuelevel 2

thereof,fair valuelevel 3

Non-current liabilities
3,557

0

0

3,557

Financial liabilities

Liabilities from company acquisitions

n/a

n/a

n/a

n/a

Lease liabilities

n/a*

n/a

n/a

n/a

Other non-current liabilities

n/a

n/a

n/a

n/a

3,557

0

0

3,557

n/a

n/a

n/a

n/a

0

0

0

0

Current liabilities
Trade payables
Derivatives in hedge accounting
Profit participation rights
Liabilities from company acquisitions
Liabilities to banks

n/a

n/a

n/a

n/a

23,2780023,278

n/a

n/a

n/a

n/a

Liabilities to affiliated companies

n/a

n/a

n/a

n/a

Liabilities to associated companies

n/a

n/a

n/a

n/a

Other current liabilities

n/a

n/a

n/a

n/a

Lease liabilities

n/a*

n/a

n/a

n/a

23,2780023,27826,8360026,836* Pursuant to IFRS 7.29 (d) no fair values were stated for the lease liabilities.

Other current liabilities include liabilities to employees of 40,295 thousand euros pursuant to IAS 19.
These liabilities to employees pursuant to IAS 19 and the non-current and current lease liabilities of292,893 thousand euros and 115,609 thousand euros respectively pursuant to IFRS 16 do not fall into
the scope of application of IFRS 7. Reclassifications between the different levels of the valuation hierarchy are performed at the end of the financial year.

Assetsin € thousand

Financial assets
at fair value Financial assets
Carrying Financial assets
through otherat fair value
amountat amortized comprehensive
through profit
Dec. 31, 2022
cost
incomeor loss

Non-current assets
Shares in affiliates and investee companies

47,251047,2510

Securities

17,7970

33

17,764Loans

10,575

10,5750

0

Other financial assets

2,447

2,447

0

0

78,07013,02247,284

17,764

Trade receivables

550,918

550,918

00

Current assets

Cash and cash equivalents

136,529

136,52900Securities

25,9600

1,249

24,711

Receivables from affiliates and investee
companies

23,847

23,8470

0

Other financial assets

DEKRA Financial Report 2023

89,41089,41000826,664

800,704

1,249

24,711

904,734

813,726

48,53342,475

90

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

Assetsin € thousand

Fair value
Dec. 31, 2022

thereof,fair valuelevel 1

thereof,fair valuelevel 2

thereof,fair valuelevel 3

Non-current assets
Shares in affiliates and investee companies

47,2510047,251

Securities

17,7970

33

17,764

n/a

n/a

n/a

n/a

Loans
Other financial assets

n/a

n/a

n/a

n/a

65,048033

65,015Trade receivables

n/a

n/a

n/a

n/a

Cash and cash equivalents

n/a

n/a

n/a

n/a

25,96025,9600

0Current assets

Securities
Receivables from affiliates and investee
companies

n/a

n/a

n/a

n/a

Other financial assets

n/a

n/a

n/a

n/a

25,96025,9600091,00825,96033

65,015

Financialliabilities at fairvalue throughFinancialliabilities at other compreamortized cost hensive income

Financialliabilities at fairvalue throughprofit or loss

Equity and liabilitiesin € thousand

Carrying
amountDec. 31, 2022

Non-current liabilities
Liabilities from company acquisitions

18,4850018,485

Financial liabilities

85,912

85,9120

0

Lease liabilities

300,129

0

0

0

1

0

0

0

404,527

85,9120

18,485

133,900

133,900

0

0

Other non-current liabilities

Current liabilities
Trade payables
Derivatives in hedge accounting

0

0

0

0

10,62910,629

0

0

216

0

0

216

Liabilities to banks

127,787

127,78700Liabilities to affiliated companies

33,81633,81600Profit participation rights
Liabilities from company acquisitions

Liabilities to associated companies

1,002

1,002

0

0

Other current liabilities

67,972

67,9720

0

Lease liabilities

111,340000486,662

375,106

0

216

891,189

461,0180

18,701DEKRA Financial Report 2023

91

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

Equity and liabilitiesin € thousand

thereof,fair valuelevel 1

Fair value
Dec. 31, 2022

thereof,fair valuelevel 2

thereof,fair valuelevel 3

Non-current liabilities
18,4850018,485

Financial liabilities

Liabilities from company acquisitions

n/a

n/a

n/a

n/a

Lease liabilities

n/a*

n/a

n/a

n/a

Other non-current liabilities

n/a

n/a

n/a

n/a

18,4850018,485

n/a

n/a

n/a

n/a

0

0

0

0

Current liabilities
Trade payables
Derivatives in hedge accounting
Profit participation rights

n/a

n/a

n/a

n/a

Liabilities from company acquisitions

216

0

0

216

Liabilities to banks

n/a

n/a

n/a

n/a

Liabilities to affiliated companies

n/a

n/a

n/a

n/a

Liabilities to associated companies

n/a

n/a

n/a

n/a

Other current liabilities

n/a

n/a

n/a

n/a

Lease liabilities

n/a*

n/a

n/a

n/a

216

0

0

216

18,7010018,701* Pursuant to IFRS 7.29 (d) no fair values were stated for the lease liabilities.

Other current liabilities include liabilities to employees of 44,811 thousand euros pursuant to IAS 19.
These liabilities to employees pursuant to IAS 19 and the non-current and current lease liabilities of
300,129 thousand euros and 111,340 thousand euros respectively pursuant to IFRS 16 do not fall into
the scope of application of IFRS 7.
Development of Level 3 of the fair value hierarchy:

Assetsin € thousand

2023

2022

As of Jan. 1

65,01573,940Additions17,306

9,410

Disposals-5,401-19,763

Fair value changes-3,955

1,428-4,310-2,544

thereof, recognized through profit or loss
thereof, recognized through other comprehensive
income355

3,972

Reclassifications-2,0790

As of Dec. 31

70,88665,015

DEKRA Financial Report 2023

92

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

Equity and liabilitiesin € thousand

2023

2022

As of Jan. 1

18,701

19,249Additions

3,988

0

Disposals-2,114-3,033

Fair value changes

6,261

2,485

6,272

2,731

thereof, recognized through profit or loss
thereof, recognized through other comprehensive
incomeAs of Dec. 31

-11

-246

26,836

18,701The evaluation of securities measured at fair value through profit or loss is performed annually by an
external knowledgeable third party applying conventional measurement policies.
The contingent purchase price liabilities were recognized at present value. This is mainly worked out on
the basis of an EBIT multiple of the company concerned. As of the balance sheet date, there are noteworthy purchase price liabilities for DEKRA New Zealand Ltd., Wellington, New Zealand, and for Onward
Security Corporation, New Taipei City, Taiwan.
The non-observable input parameters of liabilities from company acquisitions primarily include factors
such as the operating result, earnings before depreciation and amortization, financial result and income tax or the development of the working capital of the acquired business.
Assuming a change of +10%/-10% in the underlying parameters regarding non-observable input factors
as of the next possible exercise date, the amount of the purchase price liabilities, including put options
and earn-outs, for the major obligations from company acquisitions would be 5% higher/5% lower.
Any future changes in value in the purchase price liabilities will be recognized through profit or loss insubsequent periods.
Shares in affiliates and investee companies are measured using the discounted cash flow method.
If the discounting rate used changes by +1%/-1% and, at the same time, the cash flows change by-10%/+10%, the carrying amount of the shares in affiliates and investee companies changes by-21.2%/+26.1% (prior year: -17.7%/+35.0%).
The majority of contractually agreed maturity dates for existing current financial instruments measured
at amortized cost are within twelve months of the reporting date. As such, their carrying amounts as of
the reporting date approximately equate to their fair values.
For all items of non-current financial assets and liabilities not recognized at fair value, the carrying
amount is largely equal to the fair value.

DEKRA Financial Report 2023

93

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

11 Financial risk management
Principles of financial management

The Group’s financial management encompasses measures including cash and liquidity management
as well as the management of market price risks (interest, currency) and credit default risks.
Cash management determines the required or surplus cash for all DEKRA entities. Timely account management ensures that the necessary funds for payments are available where they are needed, with theaim of keeping external investment and borrowing to a minimum.
Liquidity management ensures that all payment obligations of the entities in the DEKRA Group arealways met. To this end, the liquidity planning determines cash flows from operating activities, securesforeseeable liquidity requirements at an early stage, and invests surplus liquidity on the money market
or deposits it in bank accounts.
Market price risk management has the task of limiting the impact of interest rate and currency fluctuations on the Group’s earnings. For this purpose, the market price risks are determined and used as abasis for hedging decisions. Such decisions include the selection of hedging instruments, the volume tobe hedged, and the period to be covered.
The risk volume involved in the management of credit default risks includes investments in securities
and the investment of liquid funds (cash and cash equivalents) at financial institutions as part of liquidity management, as well as the credit risk relating to end customers due to the granting and systematic
monitoring of payment terms from trade.
Short-term investments of liquid funds (cash and cash equivalents) are only made at top-rated financial
institutions and money market funds and on the basis of current rankings by rating agencies, also
taking into account current CDS spreads. We use commercial credit agencies to assess the creditworthiness of our customers, and in cases of doubt we insist on upfront payment or the provision of bankguarantees.
The main goals of the DEKRA Group’s financial management are to ensure solvency at all times and tolimit financial risks.
Financial derivatives are only used for hedging purposes for existing or foreseeable hedged items.
This does not give rise to any additional risks for the Group. The transactions are only carried out withmarketable instruments.

Liquidity risk

The liquidity scope required for operations and for implementing strategic measures is ensured
through the liquid funds (cash and cash equivalents) held and bank credit lines committed in writing.
Liquid funds (cash and cash equivalents) are held in bank accounts or invested in the form of overnightmoney and time deposits as well as short-term money market papers. A central euro cash pool has
been set up at DEKRA SE for the German subsidiaries and the international subsidiaries in the eurozone. Cash pools have also been established for the subsidiaries in the USA (USD), in China (CNY), in the
UK (GBP) and in Sweden (SEK).
As a rule, the financing of the entities in euros is performed centrally through DEKRA SE.
As of December 31, 2023, the DEKRA Group was exposed to only a very small risk of being unable in the
future to meet its payment obligations arising from financial instruments. The DEKRA Group requires
sufficient liquidity scope for future acquisitions, which is ensured by the liquid funds available, the bankloans and promissory note loans taken out and by longer-term loan commitments. As of December
31, 2023, there are credit lines of 416.3 million euros (prior year: 413.8 million euros) granted in writingthat have not yet been drawn.

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Consolidated Financial Statements › Notes to the Consolidated Financial Statements

In order to visualize liquidity risks, the DEKRA Group prepares an overview of maturities for its undiscounted payment obligations arising from financial instruments. As of the reporting date, the contractually agreed undiscounted financial liabilities including interest breaks down as follows:

Dec. 31, 2023 in € thousand< 1 year

Trade payables

124,55400Liabilities to banks

121,739

65,450618

Other financial liabilities

125,992

00

Lease liabilities

1 to 5 years> 5 years

115,609229,440

104,030

487,894

294,890

104,648

Dec. 31, 2022 in € thousand< 1 year

1 to 5 years> 5 years

Trade payables

133,900

00Liabilities to banks

132,11288,346694

Other financial liabilities

113,418

1

0

Lease liabilities

111,340

219,916

101,232

490,770

308,263

101,926

In addition to liabilities from (promissory note) loans, the liabilities to banks mostly include shortand medium-term utilization of credit lines by foreign subsidiaries.

Default risk

In the course of its operations, DEKRA is exposed to the risk of default on outstanding trade receivables. The DEKRA Group counters this risk through timely receivables management, which entails theregular monitoring of outstanding items as well as the timely dunning and collection of receivables.
There were no significant risk concentrations as of the reporting date.
DEKRA is also exposed to default risk in relation to cash investments. In order to minimize these risks
as far as possible, we restrict our cash deposits to counterparties with first-class credit ratings within
the framework of defined limits. In addition, there is a limit on the proportion of the entire investment
volume that may be deposited with any one counterparty. Investments in securities are only made withinvestment grade institutions.
No collateral is pledged by the counterparties for the financial instruments held. As of December 31,
2023, with the exception of trade receivables and loans, no material financial assets were overdue or
affected by amendments to contracts.
The carrying amounts of financial assets correspond to the maximum risk of default.

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Consolidated Financial Statements › Notes to the Consolidated Financial Statements

Market risk

Market risk is the risk that the fair value or the future cash flows from a financial instrument may fluctuate due to changes in the market prices. Within the DEKRA Group, the market risk encompasses three
types of risk: Interest fluctuation risk, currency risk, and other price risks such as changes in share prices
or indices. The financial instruments exposed to market risk include, among others, loans, deposits,
debt instruments or equity instruments, and also derivative financial instruments.

Market risk – interest fluctuation risk

We are exposed to interest fluctuation risks in the context of our investing and financing activities.
With regard to investing activities, interest fluctuations lead to changes in the fair value of fixed-interest securities. With regard to long-term borrowing requirements, we pursue the goal of using largely
fixed-interest financing arrangements.
The DEKRA Group performs a sensitivity analysis to assess the risk exposure for the statement of comprehensive income. The analysis tests the impact of a parallel shift of 100 basis points in the interest
structure curve on interest income and interest expenses.
A parallel upward shift of 100 basis points in the interest structure curve would result in an increaseof 871 thousand euros in the interest result (prior year: decrease of 1,094 thousand euros). A parallel
downward shift of 100 basis points would lead to a rise of 294 thousand euros in the interest result(prior year: 1,214 thousand euros).

Market risk – currency risks

Currency risks from operating activities are of immaterial significance because the local entities invoice
the services that they provide locally almost exclusively in the currency of their own country. Occasionally, liabilities in foreign currencies arise in connection with investments and/or intracompany transactions, for which a hedging decision is made on a case-by-case basis.
A shift of +/-10% in the value of the euro compared to the Group’s main foreign currencies would havean effect on the financial result arising from the currency translation of short-term and long-termloans to affiliated companies equivalent to approx. +/-4.9 million euros (prior year: +/-4.2 million euros)
without taking the effect of deferred tax into account. Decisions about any required hedging measuresin this context are made on a case-by-case basis. Changes in exchanges rates are not expected to havea material impact on the other financial assets or other financial liabilities.

Market risk – other price risks

With regard to the presentation of market risks, IFRS 7 also requires disclosures to be made on theeffect of hypothetical changes in risk variables on the price of financial instruments. Notably, stock
market prices or indices come into question as risk variables. As of December 31, 2023, the Group had
a total of 16.2 million euros in financial assets measured at fair value through profit or loss (prior year:
42.5 million euros) that are subject to fluctuations in fair value. These risks largely relate to interest,
creditworthiness and exchange rate risks. They are taken into account within the general risk management framework. On average, the changes in fair value amounted to 13.6% in 2023 and 7.8% in 2022.

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Consolidated Financial Statements › Notes to the Consolidated Financial Statements

12 Related-party transactions
Pursuant to IAS 24 “Related Party Disclosures”, transactions with related parties must be disclosed. The
members of the Management Board and of the Supervisory Board and also the shareholders are to beviewed as related parties within the meaning of IAS 24.9.

Remuneration of the members of the Management Board

The remuneration of the members of the Management Board (payments due in the short term) consists of a fixed annual remuneration and a performance-based variable management bonus. The total
remunerations granted to the members of the Management Board of DEKRA SE, including expense
allowances, amount to 2,119 thousand euros (prior year: 2,034 thousand euros).
Additionally, there were further expenses (amongst others, for pensions at DEKRA SE) of 290 thousand
euros (prior year: 683 thousand euros) and obligations of 370 thousand euros (prior year: 334 thousand
euros) in respect of the board members.
This results in a total remuneration amount of 2,409 thousand euros (prior year: 2,717 thousand euros).
The total remunerations to former members of the Management Board amount to 837 thousand euros(prior year: 795 thousand euros). In addition, there are also pension obligations of 15,382 thousand
euros (prior year: 12,516 thousand euros).

Remuneration of the members of the Supervisory Board

The current remunerations to the members of the Supervisory Board for the financial year amountto 286 thousand euros (prior year: 354 thousand euros), of which a total of 274 thousand euros (prioryear: 354 thousand euros) is recognized as a liability as of balance sheet date.
Additionally, there were further expenses of 695 thousand euros (prior year: 736 thousand euros) andpension obligations of 245 thousand euros (prior year: 570 thousand euros) in respect of the membersof this board.

Transactions with DEKRA e.V., Stuttgart

There are liabilities to DEKRA e.V., Stuttgart, as of December 31, 2023 amounting to 53.3 million euros(prior year: 31.8 million euros), mainly resulting from cash pooling, profit transfer, and VAT liabilities.
There are still receivables of 0.1 million euros (prior year: 13.2 million euros) mainly arising from tradereceivables (prior year: from the cash pooling system, less profit/loss transfer).
Rent agreements exist between DEKRA e.V., Stuttgart, as landlord and various companies of the
DEKRA Group as tenant. In the 2023 financial year, the rent for the business premises amounted to21.4 million euros (prior year: 21.0 million euros). The receivables from and liabilities to DEKRA e.V.,
Stuttgart, give rise to interest income of 3.0 million euros (prior year: 1.2 million euros) and interest
expenses of 0.7 million euros (prior year: 0.9 million euros). Tax allocations for income taxes amounted
to 39.1 million euros (prior year: 35.1 million euros). In addition, services totaling 1.4 million euros(prior year: 1.9 million euros) were purchased from DEKRA e.V., Stuttgart.
Under a corporate lease agreement, activities are primarily performed in the field of German vehicle
automotive testing and expert reports by an operating company of the DEKRA Group for DEKRA e.V.,
Stuttgart. Business is generally conducted in the name of and for the account of DEKRA AutomobilGmbH, Stuttgart. All transactions and business processes are handled at DEKRA Automobil GmbH.
As remuneration for the activities, a flat-rate percentage of the profit generated before income taxes
or of the sales revenue is invoiced. In the 2023 financial year, a total volume of 8.3 million euros (prioryear: 7.1 million euros) was charged to the DEKRA Group, while DEKRA e.V., Stuttgart, recorded revenueof the same amount from this source.

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Consolidated Financial Statements › Notes to the Consolidated Financial Statements

In addition, the DEKRA Group provided services of 10.6 million euros (prior year: 10.7 million euros) for
DEKRA e.V., Stuttgart, in the financial year. These services were mainly incurred for PR work and in thecontext of shared services.
There is a profit and loss transfer agreement and a control/subordination agreement in place between
DEKRA SE and DEKRA e.V., Stuttgart, as well as a tax group for income tax and sales tax purposes.

Transactions with non-consolidated subsidiaries, associates and investee companies
Subsidiaries that are not fully consolidatedin € million

Dec. 31, 2023 Dec. 31, 2022

Services provided

6.1

5.5

Services purchased

5.4

6.4

Financial income

0.7

2.8

Receivables and loans

17.9

17.4

Liabilities*

2.3

2.0

Associated companies and joint venturesin € million

Dec. 31, 2023 Dec. 31, 2022

Services provided

0.2

0.3

Services purchased

12.3

11.8

Financial income

0.2

0.2

Receivables and loans

3.9

3.7

Liabilities

1.0

1.0

Investee companiesin € million

Dec. 31, 2023 Dec. 31, 2022

Services provided

0.0

0.1

Services purchased

0.0

0.9

Receivables and loans

0.0

0.1

* Liabilities are partially netted with the receivables in the balance sheet

DEKRA Financial Report 2023

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Consolidated Financial Statements › Notes to the Consolidated Financial Statements

13 Information on the members of theManagement Board and Supervisory Board
Members of the Management Board during the 2023 financial year up to the date of preparation of thestatement of financial position were:• Stanislaw Zurkiewicz, CEO

Chairman of the Management Board, Stuttgart• Wolfgang Linsenmaier, CFO

Member of the Management Board, Freiberg am Neckar• Peter Laursen, COO (since April 5, 2023)

Member of the Management Board, Allerød, Denmark• Petra Finke, CDO (since July 1, 2023)

Member of the Management Board, Emsdetten

The members of the Supervisory Board in the 2023 financial year were:• Stefan Kölbl, Chairman
•

•
•
•

•
•

•
•
•

President of the Presidential Board of DEKRA e.V., Stuttgart
Formerly Chairman of the Management Board of DEKRA e.V. and DEKRA SE
Monika Roth-Lehnen*, Deputy Chairwoman
Chairwoman of the Works Council of DEKRA SE,
Chairwoman of the Central Works Council of DEKRA Akademie GmbH, Stuttgart,
Wuppertal Service Center of DEKRA Akademie GmbH
Hanna Binder*
Deputy Regional Director ofver.di in the German state of Baden-Württemberg
Prof. Dr. Sabine Fließ
Douglas: Endowed Chair for Service Management
Distance-learning University of Hagen, HagenNicolas Gibaudan*
Member of the Works Council of DEKRA SE,
Representative of the French CGT trade union,
Key Account Manager
DEKRA Industrial S.A.S., Limoges, FranceKlaus-Jürgen Heitmann
Spokesman of the Boards of Directors of
HUK-Coburg Versicherungsgruppe [insurance group], Coburg
Jean-Luc Inderbitzin*
Deputy Chairman of the Works Council of DEKRA SE,
Representative of the French CFDT trade union of DEKRA
Industrial S.A.S., Limoges, FranceArndt G. Kirchhoff
Chairman of the Advisory Council of Kirchhoff Group, Iserlohn
Stephan Kramer
Branch Manager – Hamburg South,
Regional Spokesman for Schleswig-Holstein – DEKRA Automobil GmbH, Stuttgart
Daniel Kusch*
Chairman of the Group Works Council of DEKRA SE,
2nd Deputy Chairman of the General Works Council of DEKRA Automobil GmbH,
Cologne branch,
DEKRA Automobil GmbH, Stuttgart

DEKRA Financial Report 2023

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Consolidated Financial Statements › Notes to the Consolidated Financial Statements• Jörg Leiser*•

Member of the Group Works Council of DEKRA SE,
Member of the General Works Council of DEKRA Automobil GmbH,Operational environmental protection specialist
Karlsruhe branch office, DEKRA Automobil GmbH, Stuttgart
Peter Tyroller
Formerly: Managing Director
Robert Bosch GmbH, Stuttgart* elected by the employees

14 Subsequent events
No significant events occurred subsequent to the balance sheet date.

15 Other disclosures
Audit of the annual financial statements

The Annual General Meeting on April 5, 2023 appointed PricewaterhouseCoopers GmbH
Wirtschaftsprüfungsgesellschaft, Stuttgart, as auditors of the individual and consolidated financial
statements for the 2023 financial year.
The auditors’ fees recognized in the financial year are shown in the following table.

in € thousand

2023

Tax consultancy

202

0

Audit services

771

748

Other services

1,229

0

2,202

748

List of shareholdings and consolidated group

2022

The Group’s entire shareholdings pursuant to Sec. 313 (2) HGB as well as all of the entities included in
the consolidated financial statements in addition to DEKRA SE are presented in the following list.

DEKRA Financial Report 2023

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Consolidated Financial Statements › Notes to the Consolidated Financial Statements

I. Affiliated companies (fully consolidated)
1. Domestic (Germany)
Capital sharein %DEKRA Akademie GmbH

Stuttgart3)

100.00DEKRA Arbeit GmbH

Stuttgart3)

100.00DEKRA Assurance Services GmbH

Stuttgart3)

100.00DEKRA Automobil GmbH

Stuttgart3)

100.00Frankfurt am Main

3)

100.00DEKRA Certification GmbH

Stuttgart3)

100.00DEKRA Claims Services GmbH

Stuttgart

3)

DEKRA Digital GmbH

Stuttgart

DEKRA Event & Logistic Services GmbH

Stuttgart3)

100.00DEKRA Expert Migration GmbH
(previously: DEKRA Qualification GmbH

Stuttgart3)

100.00DEKRA INCOS GmbH

Ingolstadt

3)

DEKRA Inspection Services GmbH

Stuttgart

DEKRA Personal GmbH

Stuttgart3)

100.00DEKRA Personaldienste GmbH

Stuttgart3)

100.00DEKRA Testing and Certification GmbH

Stuttgart3)

100.00DEKRA AUTOMOTIVE SOLUTIONS Germany GmbHDEKRA Visatec GmbH

Sulzberg/See

GKK Gutachten GmbH

Düsseldorf

PRO-LOG Beteiligungs GmbH

Stuttgart

100.00100.00100.00100.00100.003)

100.00100.00PRO-LOG IV GmbH

Stuttgart

100.00PRO-LOG Personal GmbH

Stuttgart

100.00PRO-LOG Ruhr GmbH

Bochum100.00UPDOWN Ingenieurteam für Fördertechnik GmbH

Hamburg

100.002. Foreign
Capital sharein %Auto Bilan France S.A.S.U.

Le Plessis-Robinson, France

100.00

BST Consultants Pte. Ltd.

Singapore, Singapore

100.00

Atibaia, SP, Brazil

100.00

Lyon (previously: St. Jonage), France

100.00Cinisello Balsamo (previously: Verona),
Italy

100.00

Checkauto Consultatoria Técnica e Informções
Veiculares Ltda.
Chilworth France S.A.S.
D.Akademie S.r.l.

Budapest, Hungary

100.00DEKRA (India) Pvt. Ltd.

DEKRA – EXPERT Müszaki Szakértöi Kft.

New Delhi, India

100.00DEKRA (Shanghai) Co. Ltd.

Shanghai, China

100.00DEKRA (Shanghai) Investment Co. Ltd.
Dekra (Suisse) SA

Shanghai, China

100.00Thônex, Switzerland

100.00DEKRA A/S

Brøndby, Denmark100.00DEKRA Akademie A/S

Brøndby, Denmark100.00DEKRA Akademie Kft.

Budapest, Hungary

100.00DEKRA Akademie Sh.p.k.

Tirana, Albania

100.00Sargans, Switzerland

100.00DEKRA Arbeit AG Basel

Basel, Switzerland

100.00DEKRA Arbeit AG Buchs

Buchs, Switzerland

100.00DEKRA Arbeit (Schweiz) Holding AG

DEKRA Financial Report 2023

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Consolidated Financial Statements › Notes to the Consolidated Financial Statements

Capital sharein %DEKRA Arbeit AG Chur

Chur, Switzerland

100.00DEKRA Arbeit AG Sargans

Sargans, Switzerland

100.00DEKRA Arbeit AG St. Gallen

St. Gallen, Switzerland

100.00

Budapest, Hungary

100.00DEKRA Austria GmbHDEKRA Arbeit Magyaroszag Szolgáltató Kft.

Leopoldsdorf, Austria

100.00DEKRA Automotive AB

Solna, Sweden

100.00DEKRA Automotive La Réunion S.A.S.

Saint-Denis, France

100.00DEKRA Automotive Ltd.

Stokenchurch, UK

100.00Casablanca, Morocco

80.00

DEKRA Automotive Maroc S.A.

Klerksoord, Rosslyn, South Africa

100.00DEKRA Automotive S.à r.l.

DEKRA Automotive Pty. Ltd.

Munsbach, Luxembourg

100.00DEKRA Automotive S.A.S.

Le Plessis-Robinson, France

100.00DEKRA Automotive Solutions France S.A.S.U.
DEKRA Belgium SA
DEKRA Business Services (Beijing) Co. Ltd
DEKRA Canada Inc.
DEKRA Caribbean N.V.

Bordeaux, France

100.00

Zaventem, Belgium

100.00Beijing, China

100.00Moncton, New Brunswick, Canada

100.00Willemstad, Curaçao

100.00DEKRA Certification (Proprietary) Ltd.

Rosslyn, South Africa

100.00DEKRA Certification B.V.

Arnhem, Netherlands

100.00Hong Kong, China (Hong Kong)

100.00DEKRA Certification Hong Kong Limited
DEKRA Certification Japan K.K.
DEKRA Certification Ltd.
DEKRA Certification S.A.S.
DEKRA Certification Sp. z o.o.
DEKRA Certification Tanúsító és Szolgáltató Kft.
DEKRA Certification. Inc.
DEKRA Claims and Expertise B.V.

Yokohama-shi (previously: Tokyo), Japan

100.00Tzur Yigal, Israel

100.00Le Plessis-Robinson, France

100.00

Wrocław, Poland

100.00

Budapest, Hungary

100.00

North Wales, PA,
United States of America

100.00

Alkmaar, Netherlands

100.00DEKRA Claims Services Luxembourg S.A.

Munsbach, Luxembourg

100.00DEKRA Claims Services Netherlands B.V.

Capelle aan den IJssel, Netherlands

100.00

Stokenchurch, Bucks, UK

100.00DEKRA Costa Rica SA

DEKRA Claims Services UK Ltd.

San José – Santa Ana Pozos, Costa Rica

100.00DEKRA Croatia d.o.o.

Zagreb, Republic of Croatia

100.00Prague 4, Czech Republic

100.00DEKRA d.o.o. Beograd

DEKRA CZ a.s.

Zvezdara, Belgrade, Serbia

100.00DEKRA Empleo ETT S.L.

Madrid (previously: Barcelona), Spain

100.00DEKRA Equipment & Services A/S

Brøndby, Denmark100.00Málaga, Spain

100.00DEKRA Expertise S.A.S.

Cormelles-le-Royal, France

100.00DEKRA Expertises Ltda.

Atibaia, SP, Brazil

100.00Vantaa, Finland

100.00DEKRA España S.L.

DEKRA Finland Oy
DEKRA Foncier S.N.C.

Le Plessis-Robinson, France

100.00DEKRA France S.A.S.U. (vormals S.A.S.)

Le Plessis-Robinson, France

100.00Odense, Denmark100.00DEKRA Fyn ApSDEKRA Industrial (Guangzhou) Co. Ltd.

Guangzhou, China

100.00DEKRA Industrial A/S

Brabrand, Denmark100.00Brøndby (previously: Silkeborg), Denmark100.00Göteborg, Sweden

100.00DEKRA Industrial A/S (previously: Bilsyn ApS)DEKRA Industrial AB Sweden

DEKRA Financial Report 2023

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Consolidated Financial Statements › Notes to the Consolidated Financial Statements

Capital sharein %DEKRA Industrial Holding S.A.S.
DEKRA Industrial Oy
DEKRA Industrial RSA (Pty) Ltd.
DEKRA Industrial S.A.
DEKRA Industrial S.A.R.L.
DEKRA Industrial Safety B.V.

Limoges, France

100.00Vantaa, Finland

100.00Klerksoord, Rosslyn, South Africa

100.00Barcelona, Spain

100.00

Algiers, Algeria

99.50

Capelle aan den IJssel, Netherlands

100.00DEKRA Industrial SAS

Limoges, France

100.00DEKRA Inspeções Portugal. S.A.

Lisbon, Portugal

100.00DEKRA Inspection Oy

Vantaa, Finland

100.00DEKRA Inspection S.A.
DEKRA Inspections. Inc.
DEKRA iST Reliability Services Inc.

Casablanca, Morocco

100.00Harrisburg, NC, United States ofAmerica

100.00

Hsinchu City, Taiwan

51.00

DEKRA iST Reliability Services Limited

Hong Kong, China (Hong Kong)

51.00

DEKRA iST Reliability Services Limited

Kunshan, China

51.00

Cinisello Balsamo, Milan, Italy

100.00DEKRA Italia S.r.l.

Alcobendas (Madrid), Spain

100.00DEKRA Katsastus OY

DEKRA ITV España S.L.

Kangasniemi, Finland

100.00DEKRA Korea Co. Ltd.

Gyeonggi-do, Republic of Korea(South Korea)

100.00Bratislava, Slovakia

100.00DEKRA kvalifikácia a poradenstvo s.r.o.
DEKRA Midtjylland ApS
DEKRA Motores Vistoria Veicular Ltda.
DEKRA Netherlands Holding B.V.
DEKRA New Zealand Ltd.
DEKRA Nordjylland A/SDEKRA North America. Inc.

Herning (previously: Skjern), Denmark100.00

Atibaia, SP, Brazil

100.00Arnhem, Netherlands

100.00Wellington, New Zealand

60.00

Sæby, Denmark100.00Atlanta, GA, United States of America

100.00

Alkmaar, Netherlands

100.00DEKRA POLSKA Sp. z o.o.

Warsaw, Poland

100.00DEKRA Portugal S.A.

Lisbon, Portugal

100.00DEKRA Prélèvements & Analyses SAS

Limoges, France

99.99

Podgorica, Montenegro

100.00DEKRA People B.V.

DEKRA Privremeno Zaposljavanje Podgorica d.o.o.

Solna, Sweden

100.00DEKRA Rail B.V.

DEKRA Quality Management AB

Utrecht, Netherlands

100.00DEKRA Service Maroc S.A.

Casablanca, Morocco

80.00

DEKRA Services (PTY) Ltd.

Klerksoord, Rosslyn, South Africa

100.00Brøndby, Denmark100.00DEKRA Services ApS
DEKRA Services France SAS

Le Plessis-Robinson, France

100.00DEKRA Services S.A.

Alcobendas (Madrid), Spain

100.00DEKRA Services. Inc.

Atlanta, GA, United States of America

100.00DEKRA Servicios Recursos Humanos S.L.

Madrid (previously: Barcelona), Spain

100.00DEKRA Sjælland A/SNæstved, Denmark100.00DEKRA Slovensko s.r.o.

Bratislava, Slovakia

100.00DEKRA Solutions B.V.
DEKRA South Africa Pty. Ltd.
DEKRA Southern Africa Oceania Limited

Arnhem, Netherlands

100.00Klerksoord, Rosslyn, South Africa

100.00Wellington, New Zealand

100.00DEKRA Sweden AB

Göteborg, Sweden

100.00DEKRA Sydjylland A/S

Vejen, Denmark100.00DEKRA Financial Report 2023

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Consolidated Financial Statements › Notes to the Consolidated Financial Statements

Capital sharein %DEKRA Technology & Services Kft
DEKRA TEST CENTER SAS
DEKRA Testing & Certification (Suzhou) Co. Ltd.
DEKRA Testing and Certification (Shanghai) Ltd.

Budapest, Hungary

100.00Montredon-des-Corbières, France

100.00Suzhou, China

100.00Shanghai, China

100.00DEKRA Testing and Certification Co. Ltd.

New Taipei City, Taiwan

100.00DEKRA Testing and Certification Ltda.

Santiago de Chile, Chile

99.90

DEKRA Testing and Certification S.A.

Málaga, Spain

100.00DEKRA Testing and Certification S.r.l.

Cinisello Balsamo, Milan, Italy

100.00DEKRA Testing Services (Anhui) Co. Ltd.

Hefei, China

100.00DEKRA Testing Services (Zhejiang) Ltd.

Yueqing (previously: Wenzhou),Zhejiang, China

51.00

DEKRA UK Ltd.

Southampton, Hampshire, UK

100.00DEKRA UK Management Ltd.

Southampton, Hampshire, UK

100.00DEKRA Vistorias e Serviços Ltda.
DEKRA za privremeno zaposljavanje d.o.o.
DEKRA Zaposljavanje d.o.o.

Atibia, SP, Brazil

100.00

Zagreb, Republic of Croatia

100.00

Podgorica, Montenegro

100.00DEKRA zaposljavanje i zastupanje d.o.o.

Zagreb, Republic of Croatia

100.00DEKRAMERICAS. S. de R.L. de C.V.

Guadalajara Jalisco, Mexico

100.00France Etudes et Solutions SASULe Plessis-Robinson, France

100.00Hangzhou DEKRA Certification Co. Ltd.

Hangzhou, China

100.00

New Taipei City, Taiwan

90.71

QTK Asia Electronics Ltd.

Road Town (Tortola),
British Virgin Islands

100.00UAB DEKRA Industrial

Visaginas, Lithuania

100.00Wellington, New Zealand

60.00

Budapest, Hungary

100.00

Onward Security Corporation

Vehicle Testing New Zealand Ltd.
VEIKI-VNL Villamos Nagylaboratóriumok Korlátolt
Felelősségü Társaság

II. Affiliated companies(not included in the consolidated financial statements)
1. Domestic (Germany)
Capital sharein %DEKRA Media GmbHDEKRA Neo (previously: Cargo & Security Services) GmbHmastap GmbH

Mönchengladbach

100.00

Stuttgart

100.00Hamminkeln (previously: Wesel)

100.002. Foreign
Capital sharein %D. Invest s.r.l.

Cinisello Balsamo (MI), Italy

100.00DEKRA Akademie EPE

Thessaloniki, Greece

100.00DEKRA Arbeit Anstalt

Eschen, Principality of Liechtenstein

95.00

DEKRA Arbeit Austria GmbHDEKRA Arbeit BH d.o.o.

DEKRA Financial Report 2023

Vienna, Austria

100.00

Sarajevo, Bosnia-Herzegovina

100.00104

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

Capital sharein %DEKRA Arbeit Bulgaria EOOD
DEKRA Arbeit Greece SINGLE MEMBER P.C.

Sofia, Bulgaria

100.00Pylaia, Thessaloniki, Greece

100.00DEKRA Arbeit L.L.C.

Priština, Kosovo

100.00DEKRA Arbeit SHPK

Tirana, Albania

100.00DEKRA Automotive EOOD

Sofia, Bulgaria

100.00DEKRA Bilbesiktning AB

Göteborg, Sweden

100.00DEKRA Bilsyn Partner A/S

Brøndby, Denmark100.00DEKRA Certification S.L.

Barcelona, Spain

100.00Bucharest (previously: Cluj-Napoca),
Romania100.00

Stokenchurch, UK

100.00DEKRA Certification S.R.L.
DEKRA Certification UK Ltd.
DEKRA Claims Services
DEKRA Claims Services Austria GmbH

Kyiv, Ukraine

70.00

Vienna, Austria

100.00DEKRA Claims Services France SASU

Levallois-Perret, France

100.00DEKRA Claims Services Maroc S.A.R.L.

Casablanca, Morocco

100.00DEKRA Claims-Services-Magyarország Szolgáltató Kft.

Budapest, Hungary

100.00DEKRA Development s.r.o.

Bratislava, Slovakia

100.00DEKRA Egypt for Services and Consulting

Cairo, Egypt

51.00

DEKRA Expert OOO

Kyiv, Ukraine

80.00

DEKRA Hasar Servisi Ltd. Sti. i.L.

Istanbul, Turkey

100.00DEKRA Hellas EPE

Athens, Greece

100.00DEKRA Industrial Inspection Lda.

Maputo Cidade,Republic of Mozambique

100.00DEKRA kvalifikace a poradenství s.r.o.

Prague 4, Czech Republic

100.00DEKRA Loss Adjusters and Surveyors Ltd.
DEKRA Middle East FZEDEKRA Outsourcing d.o.o.
DEKRA Personnel France SAS
DEKRA Praca Sp. z o.o.
DEKRA Revisión Técnica SpA
DEKRA Russ O.O.O.
DEKRA Services Spolka z.o.o
DEKRA TW s.r.o.
DEKRA usluge d.o.o.
DEKRA Vrabotuvanje dooel.
DEKRA zaposlitev d.o.o.

Stokenchurch, UK

100.00Dubai, United Arab Emirates

100.00Belgrade, Serbia

100.00Paris, France

100.00

Kraków, Poland

100.00Santiago de Chile, Chile

100.00

Moscow, Russian Federation

99.99

Kraków, Poland

100.00Bratislava, Slovakia

100.00

Zagreb, Republic of Croatia

100.00

Skopje, Macedonia

100.00

Ljubljana, Slovenia

100.00

Sarajevo, Bosnia-Herzegovina

100.00DEKRA Zaposljavanje d.o.o.

Belgrade, Serbia

100.00European Road Stars Academy SPRL

Brussels, Belgium

50.10

Vršovice, Prague 10, Czech Republic

100.00DEKRA zaposljavanje d.o.o.

Gudmund s.r.o.
Laon Controle Technique SAS
Master Test Chile SpA.
Onward Security (Shanghai) Company Limited
Onward Security Japan Corporation
Private Employment Agency DEKRA Arbeit Macedonia
PRO-LOG CG d.o.o.

DEKRA Financial Report 2023

Le Plessis-Robinson, France

100.00Santiago de Chile, Chile

100.00Shanghai, China

90.71

Tokyo, Japan

90.71

Skopje, Macedonia

100.00

Podgorica, Montenegro

100.00105

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

Capital sharein %PRO-LOG SR DOO
SF Katsastus Oy Kaarina
SF Katsastus Oy Raisio
TATRA TRUCK s.r.o.

Belgrade, Serbia

100.00Hietamäki, Finland

100.00Raisio, Finland

100.00Krásny Brod, Slovakia

100.00III. Associated companies and joint ventures
1. Domestic (Germany)
Capital sharein %ARGE “Technische Prüfstelle für den
Kraftfahrzeugverkehr 21” GBR

Dresden

25.00

1)

CertifAI GmbH

Hamburg

Euro Transport Media Verlags- und
Veranstaltungsgesellschaft mbH

48.72

Stuttgart

40.00

FSD Fahrzeugsystemdaten GmbH

Dresden

33.71

2. Foreign
Capital sharein %DEKRA Advanced Mobility Testing (Huzhou) Co. Ltd.

Huzhou City, China

5)

NDT Training Center Aktiebolag

Västerås, Sweden

1)

Spearhead AG

51.00
33.00

Dietlikon, Switzerland

33.35

IV. Shareholding investments
2. Foreign
Capital sharein %Eiffage Énergie Systèmes – DYNAE SA
ITT Technology Transfer s.r.l., i.L.
Société Coopérative de Promotion S.A.

Villefontaine, France 2). 4)

19.93

Ferrara, Italy

2)

1.00

Trappes, France2)< 5.001) Not measured according to the equity method due to the immaterial significance for the net assets, financial position and results of operations2) No disclosures as per Sec. 313 (2) no. 4 HGB are made because these are of immaterial significance for the presentation of a true and fair view of the net assets,financial position and results of operations of the Group3) Exercising the exemption defined in Sec. 264 (3) HGB
4) This does not have a material impact5) Not a controlled entity, based on the resolutions laid down in the articles of incorporation

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Consolidated Financial Statements › Notes to the Consolidated Financial Statements

Stuttgart, March 28, 2024
DEKRA SEThe Members of the Management Board

Zurkiewicz
CEO / Chairman of the Management Board

Finke

Laursen

Linsenmaier

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Independent Auditor’s Report

Independent Auditor‘s Report
To DEKRA SE, Stuttgart
Audit opinions

We have audited the consolidated financial statements of DEKRA SE, Stuttgart, and its subsidiaries (theGroup), which comprise the consolidated statement of financial position as at December 31, 2023, andthe consolidated statement of comprehensive income, consolidated statement of changes in equity
and consolidated statement of cash flows for the financial year from January 1 to December 31, 2023,
and notes to the consolidated financial statements, including a summary of significant accounting
policies. In addition, we have audited the Group management report of DEKRA SE for the financial year
from January 1 to December 31, 2023. In accordance with the German legal requirements, we have notaudited the content of the parts of the Group management report specified in the “Other Information”
section of our auditor’s report.
In our opinion, on the basis of the knowledge obtained in the audit,• the accompanying consolidated financial statements comply, in all material respects, with the IFRSs•

as adopted by the EU, and the additional requirements of German commercial law pursuant to
Section 315e paragraph 1 HGB [Handelsgesetzbuch: German Commercial Code] and, in compliancewith these requirements, give a true and fair view of the assets, liabilities, and financial positionof the Group as at December 31, 2023, and of its financial performance for the financial year fromJanuary 1 to December 31, 2023, andthe accompanying Group management report as a whole provides an appropriate view of theGroup’s position. In all material respects, this Group management report is consistent with theconsolidated financial statements, complies with German legal requirements and appropriately
presents the opportunities and risks of future development. Our audit opinion on the Groupmanagement report does not cover the content of the parts of the Group management reportlisted in the “Other Information” section.

Pursuant to Section 322 paragraph 3(1) HGB [Handelsgesetzbuch: German Commercial Code], we declarethat our audit has not led to any reservations relating to the legal compliance of the consolidated financial statements and the Group management report.

Basis for the audit opinions

We conducted our audit of the consolidated financial statements and of the Group management reportin accordance with Section 317 HGB and in compliance with German Generally Accepted Standards
for Financial Statement Audits promulgated by the Institut der Wirtschaftsprüfer (IDW; Institute of
Public Auditors in Germany). Our responsibilities under those requirements and principles are further
described in the “Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements andof the Group Management Report” section of our auditor’s report. We are independent of the Group
entities, in accordance with the requirements of German commercial and professional law, and wehave fulfilled our other German professional responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinions on the consolidated financial statements and on the Group management report.

Other information

The executive directors are responsible for the other information. The other information comprises thefollowing non-audited parts of the Group management report:• The corporate governance statement contained in the “Personnel Report” section of the Group ma•

nagement report in accordance with Section 289f paragraph 4 HGB (information on the proportionof women)
The “Integrity” and “Sustainability” sections of the Group management report

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Independent Auditor’s Report

The other information further comprises all remaining parts of the finance report – excluding cross-references to external information – with the exception of the audited consolidated financial statements,
the audited Group management report and our auditor’s report.
Our audit opinions on the consolidated financial statements and on the Group management report do
not cover the other information, and consequently we do not express an audit opinion or any otherform of assurance conclusion thereon.
In connection with our audit, our responsibility is to read the other information mentioned above and,in so doing, to consider whether the other information• is materially inconsistent with the consolidated financial statements, with the Group management
report disclosures audited in terms of content or with our knowledge obtained in the audit, or• otherwise appears to be materially misstated.

Responsibilities of the executive directors and the Supervisory Board for the consolidated financial statements and the Group management report

The executive directors are responsible for the preparation of consolidated financial statements thatcomply, in all material respects, with IFRSs as adopted by the EU and the additional requirements ofGerman commercial law pursuant to Section 315e paragraph 1 HGB and that the consolidated financial
statements, in compliance with these requirements, give a true and fair view of the assets, liabilities,
financial position, and financial performance of the Group. In addition, the executive directors are
responsible for such internal controls as they have determined necessary to enable the preparationof consolidated financial statements that are free of material misstatements, whether due to fraud(i.e., fraudulent financial reporting and misappropriation of assets) or error.
In preparing the consolidated financial statements, the executive directors are responsible for assessing
the Group’s ability to continue as a going concern. They also have the responsibility for disclosing, asapplicable, matters related to the ability to continue as a going concern. In addition, they are responsible
for financial reporting based on the going concern basis of accounting unless there is an intention toliquidate the Group or to cease operations, or there is no realistic alternative but to do so.
Furthermore, the executive directors are responsible for the preparation of a Group management
report which, as a whole, provides an appropriate view of the Group’s position and is, in all material
respects, consistent with the consolidated financial statements, complies with German legal requirements, and appropriately presents the opportunities and risks of future development. In addition, theexecutive directors are responsible for such arrangements and measures (systems) as they have considered necessary to enable the preparation of a Group management report that is in accordance withthe applicable German legal requirements, and to be able to provide sufficient appropriate evidence forthe assertions in the Group management report.
The Supervisory Board is responsible for overseeing the Group’s financial reporting process for the
preparation of the consolidated financial statements and of the Group management report.

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Independent Auditor’s Report

Auditor’s responsibilities for the audit of the consolidated financial statements andthe Group management report

Our objectives are to obtain reasonable assurance that the consolidated financial statements as awhole are free of material misstatements, whether due to fraud or error, and that the Group management report as a whole provides an appropriate view of the Group’s position is in all material respects
consistent with the consolidated financial statements and the knowledge obtained during the audit,
complies with German legal requirements and appropriately presents the opportunities and risks offuture development, as well as to issue an auditor’s report that includes our audit opinions on the
consolidated financial statements and on the Group management report.
Reasonable assurance is a high level of assurance but not a guarantee that an audit conducted inaccordance with Section 317 HGB and in compliance with German Generally Accepted Standards for
Financial Statement Audits promulgated by the Institut der Wirtschaftsprüfer (IDW) will always detecta material misstatement. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisionsof users taken on the basis of these consolidated financial statements and this Group management
report.

We exercise professional judgment and maintain professional skepticism throughout the audit.
We also:• Identify and assess the risks of material misstatements in the consolidated financial statements and

•

•
•

•

•

•

the Group management report, whether due to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide
a basis for our audit opinions. The risk of failing to detect a material misstatement due to fraud ishigher than for one due to error, because fraud may involve collusion, forgery, intentional omissions,misrepresentations, or the override of internal controls.
Obtain an understanding of internal controls relevant to the audit of the consolidated financial
statements and of arrangements and measures (systems) relevant to the audit of the Groupmanagement report in order to design audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an audit opinion on the effectiveness of these systems.
Evaluate the appropriateness of accounting policies used by the executive directors and thereasonableness of estimates made by the executive directors and related disclosures.
Conclude on the appropriateness of the executive directors’ use of the going concern basis ofaccounting and, based on the audit evidence obtained, whether a material uncertainty exists in
respect of events or conditions that may cast significant doubt on the Group’s ability to continue asa going concern. If we conclude that a material uncertainty exists, we are required to draw attention
in the auditor’s report to the related disclosures in the consolidated financial statements and in theGroup management report or, if such disclosures are inadequate, to modify our respective audit
opinions. Our conclusions are based on the audit evidence obtained up to the date of our auditor’sreport. However, future events or conditions may cause the Group to cease to be able to continue
as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements,
including the disclosures, and whether the consolidated financial statements present the underlying
transactions and events in such a manner that the consolidated financial statements give a trueand fair view of the assets, liabilities, financial position and financial performance of the Group incompliance with IFRSs as adopted by the EU and the additional requirements of German commercial
law pursuant to Section 315e paragraph 1 HGB.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities orbusiness activities within the Group to express audit opinions on the consolidated financial statements and the Group management report. We are responsible for the direction, supervision andperformance of the Group audit. We remain solely responsible for our audit opinions.
Evaluate the consistency of the Group management report with the consolidated financial statements, its conformity with German law, and the view it provides of the Group’s position.

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Independent Auditor’s Report• Perform audit procedures on the prospective information presented by the executive directors in

the Group management report. On the basis of sufficient appropriate audit evidence we evaluate, inparticular, the significant assumptions used by the executive directors as a basis for the prospective
information and evaluate the proper derivation of the prospective information from these assumptions. We do not express a separate audit opinion on the prospective information or on the assumptions used as a basis. There is a substantial unavoidable risk that future events will differ materiallyfrom the prospective information.

We communicate with those charged with governance regarding various matters including the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies ininternal control that we identify during our audit.
Stuttgart, March 28, 2024
PricewaterhouseCoopers GmbH
Wirtschaftsprüfungsgesellschaft

Marcus Nickel
Wirtschaftsprüfer(German Public Auditor)

Jürgen Berghaus
Wirtschaftsprüfer(German Public Auditor)

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Report from the Chairman of the Supervisory Board

Report from the
Chairman of theSupervisory Board
Dear readers,
2023 was the year when artificial intelligence (AI) broke through. DEKRA took decisive action in response to this development, not only has the Company taken an active role in the necessary regulationof AI over the past financial year, it also launched the first AI testing services on the market. DEKRA SE’s
Management Board regularly updated the Supervisory Board about these strategically important topics
and other business activities, both verbally and in writing, and the Supervisory Board comprehensively
performed and fulfilled its monitoring and management function.
The collaboration between the two bodies centered on the exchange of information about the Company’s operating business and strategic development. In two regular Supervisory Board meetings, theManagement and Supervisory Boards discussed strategies and steps on the path to further growth,for example.
Over the course of the 2023 financial year, DEKRA expanded its range of new training, consulting, testing, validation and inspection services in existing business areas as well as in strategic future growthareas. Besides AI and digitalization, these are cybersecurity, future mobility and sustainability. In thearea of sustainability, the Company’s portfolio now includes more than 500 services such as life cycle
analyses, the testing of systems and associated infrastructure for the production of renewable energy
and ESG auditing and consulting services.
The Supervisory Board appointed PwC as the external auditor for the 2023 financial year and commissioned the firm to examine DEKRA SE’s annual accounts, management report, consolidated financial
statement, and Group management report, together with the accounting for the 2023 financial year.
The Supervisory Board acknowledged and approved the unqualified audit opinion of the external auditor. The Supervisory Board’s own examination of the annual accounts, management report, consolidated financial statement, and Group management report did not result in any objections. The annual
accounts drawn up by the Management Board are approved by the Supervisory Board and thereby
adopted. The Supervisory Board thanks the Management Board and all DEKRA employees for theirsuccessful endeavors in the past reporting year.

Stuttgart, April 2024
Stefan Kölbl

Chairman of the Supervisory Board

DEKRA Financial Report 2023

Imprint
DEKRA e. V.

Communications and Brand Management
Handwerkstrasse 1570565 Stuttgart, Germany
Phone +49.711.7861–2876
Fax +49.711.7861–2912

Concept and design

wirDesign communication AG,
Berlin, Braunschweig

Photography

Unsplash; Goutham Krishna (p. 2)
DEKRA; Michael Wagner, Stuttgart (p. 4, 113)
DEKRA Financial Report 2023