FINANCIAL REPORT 2022

At aglanceWhether it’s a matter of safety on the road, at work, or at home, millions of people
throughout the world place their trust in DEKRA’s expertise. DEKRA is a leading,non-listed expert organization acting on a neutral and independent basis tofulfill the mission laid down in its articles of incorporation: safety. With almost
49,000 employees in around 60 different countries on five different continents,
DEKRA stands for innovative services relating to all aspects of the topic of safety.
The vision for the Company’s centenary in 2025 is that DEKRA will be the global
partner for a safe, secure, and sustainable world. DEKRA offers its comprehensive
service portfolio in six different regions of the world. It has seven different Service
Divisions – Vehicle Inspection, Claims & Expertise, Product Testing, Industrial Inspection, Consulting, Advisory & Training Services, and Temp Work. The Company’s
portfolio of safety and sustainability services ranges from vehicle inspections andexpert reports for damage claim settlements, industrial and building inspections,safety advisory services, and product or system testing and certification, all theway through to training and temporary work.

DEKRA SE – Key Figures
2020

2021

2022

3,188.2

3,534.8

3,796.5

Share of international revenue in %

39.5

39.3

37.9

Adjusted EBIT in € million

195.9

226.0

226.4

Adjusted EBIT margin in %

6.1

6.4

6.0

183.8

215.5

210.5

2,739.0

2,811.3

2,812.4

Equity in € million

808.5

942.8

1,153.5

Equity ratio in %

29.5

33.5

41.0

43,99047,77048,646

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 2022

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Contents

Contents
04 Introduction by the CEO
05 Group Management Report
05
05
07
08
10
11
12

14

14
14
17

23

23
30
31

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

32 Consolidated Financial Statements
33
34
36
37
39
98

102

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 2022

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Introduction by the CEO

Introduction
by the CEO
Dear Readers,
The year 2022 was a challenging financial year characterized by a number of simultaneous global crises,
but DEKRA successfully held its course and continued to grow. Revenue increased by 7.4% to almost
EUR 3.8 billion.
The pillars of our success have been our position as the world’s leading TIC provider in the automotive
sector, our relentless focus on sustainability, the ongoing digitalization of our portfolio, and our new
services such as rapid battery testing for electric cars. This patented rapid test for the traction batteries
in used electric cars has placed us at the forefront of development in an important area for the futureof e-mobility. The test takes just 15 minutes and delivers an accurate measurement of the remaining
battery capacity. This creates transparency in the growing used-EV market where the battery is a crucial
value factor. In addition to Germany, in 2022 we rolled out this innovative test in the Benelux countries
and across Scandinavia.
DEKRA has led the way in another growth market for the mobility of the future: as part of an innovation
partnership, our expert organization is supporting the first rental fleet of hydrogen-powered commercial vehicles in Germany. And in our DEKRA Technology Center in Brandenburg, our experts have independently verified the consumption figures of the BMW iX5 Hydrogen – an important step to gaining
regulatory approval for the small series.
We have also been able to expand our market position in our traditional core business. In the areaof vehicle inspections for example, where DEKRA has been the global market leader for many years,
we began operating in Spain and Costa Rica in 2022. This means DEKRA is set to inspect more than
30 million vehicles in 24 countries every year. With an increase in turnover of 7.4% to EUR 1.3 billion,
Vehicle Inspection consolidated its position as DEKRA’s largest Service Division in 2022.
In times of crisis such as these, people’s basic need for safety and security increases. In response, andas part of implementing our Strategy 2025, one particular focus of the Management Board’s work wason our corporate mission of increasing safety, security, and sustainability. This will make DEKRA the
global partner for a safe, secure, and sustainable world by 2025, when our company is set to celebrateits 100th anniversary.

Stuttgart, April 2023
Chairman of the Management Board
DEKRA SE

Stan Zurkiewicz

DEKRA Financial Report 2022

5Group Management Report › Fundamental information on the corporate group

Group Management Reportof DEKRA SE, Stuttgart,
for the financial year 2022
Fundamental information on the corporate group
Group business model
DEKRA ensures safety

48,600Aroundemployees in around 60 countries
worked at DEKRA by the end of2022.

Revenue Region

2.4

Germany in € billion

For almost 100 years now, DEKRA has been committed to ensuring people’s safety in all of life’s situa­
tions. 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 products, processes, and facilities, aswell 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 benefits from the lasting andglobal trend towards greater safety. The Company’s safety mission pursuant to its articles of incorporation is just as valid today as when it first started out.
By the end of 2022, DEKRA had around 48,600 people in its employment in some 60 countries onfive continents. The Company carried out around 28 million vehicle inspections globally. From 2019
onwards, the comprehensive services it offers were initially bundled into eight Service Divisions, andinto seven from 2022 onwards. The two Service Divisions of “Consulting” and “Training” were merged
into an “Advisory & Training Services” division in the reporting year, in order to multiply our customer
support opportunities and to facilitate the further scaling of digital products. The global business ismanaged by DEKRA SE, based in Stuttgart, and is divided into six Regions.

Represented in all regions of the world

Of the six Regions, Germany is the major market region with revenue of more than 2.4 billion euros,
followed by South-West Europe (which also includes the Company’s second domestic market of France)with 544 million euros. DEKRA generated revenues of 365 million euros in the North-West Europe
Region and 171 million euros in Central East Europe & Middle East.
The other markets that DEKRA focuses on besides Europe include the Regions of APAC (Asia-Pacific)
and the Americas. APAC achieved revenue of 244 million euros and the Americas achieved
114 million euros.

Systematic expansion of the product and service portfolio

In seven of its Service Divisions, DEKRA focuses on the ongoing development and optimization of its
services within the corresponding seven business sectors, so as to continue offering customers a comprehensive service portfolio. In the context of digitalization, increasing networking, and growing cyber­security requirements, DEKRA’s experts develop the safety solutions of tomorrow, underscoring theCompany’s role as a pioneer in the realm of safety. DEKRA’s service portfolio is bundled in the following
Service Divisions:
Vehicle Inspection
This Service Division comprises periodically recurring vehicle inspections, as well as non-periodic technical inspections and periodic emission 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 of increasingly
network-connected and automated vehicles with combustion engines and of electric vehicles withalternative drive systems using batteries or fuel cells (hydrogen).

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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.
Product Testing
The Product Testing Service Division’s area of expertise includes the testing and certification of con­sumer, industrial, automotive, information and communications products, and medical goods. DEKRA
com­bines safety checks with connectivity tests, thus working towards a future in which products function perfectly and communicate smoothly with each other.
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 & Training Services in a widely diverse range of sectors result in well-qualified
employees and top-performing companies. Using modern tools and digital technologies, our experi­enced
consultants and trainers provide support through services that are customized to suit the individual
needs of our customers.
Audit
The Audit Service Division’s core expertise lies in independent evaluations and certifications of management systems in accordance with national and international standards. DEKRA holds a diverse rangeof accreditations for system certifications and offers first-party (internal audits), second-party (auditing
suppliers in accordance with their own standards), and third-party audits (audits in accordance withinternationally recognized standards, with corresponding authorization).
Temp WorkThe employees in the Temp Work Service Division distinguish themselves through their extensive knowhow in the fields of HR, solution, event, and logistics management. In terms of revenue, DEKRA holds
sixth place among Germany’s major HR service providers.

Region Perspective

Service Perspective

Germany

Temp Work

Audit

DEKRA Financial Report 2022

Advisory & Training Services

APAC

Industrial Inspection

Americas

Product TestingSouth-West Europe

Claims & Expertise

North-West Europe

Vehicle Inspection

Central East Europe & Middle East

7Group Management Report › Fundamental information on the corporate group

Objectives and strategies
Vision 2025:
We will be the global partner for a safe, secure, and sustainable world

100
years
DEKRA celebrates

in 2025

DEKRA’s strategic focus and operational management are guided by the principle of stable and healthy
growth. Professional expertise, innovative power, and proximity to customers therefore remain our
primary tasks. Through its strategic “Vision 2025” program, launched in its 90th anniversary year in2015, with a focus on the three pertinent areas of life – on the road, at work, and at home – DEKRA has
mapped out its course for the coming years. In this context, to mark its centenary year, 2025, DEKRA
has set itself the goal of being the global partner for a safe, secure, and sustainable world. In financial
year 2022, DEKRA once again demonstrated its full commitment to achieving this long-term objective.
The digital transformation process – accelerated by the COVID-19 pandemic – plays an important role
here. Even though DEKRA is already a globally acknowledged business partner for the testing, certification, and inspection of intelligent and network-connected products, we are nevertheless constantly
working to further enhance our digital competency on the basis of a comprehensive digital strategy.
This starts internally with modern, global IT and new ways of working, includes digital interaction withcustomers, and extends through to new and data-driven services. Consequently, DEKRA will digitalize
its processes as far as possible, further expand its technical expertise, work on shaping digitalizationin its markets through innovation and technology partnerships, and build up new business lines. The
Company’s digital strategy was rolled out Group-wide in 2021 and will be implemented by 2025.
In 2021, DEKRA added two more elements to its corporate vision: Security and Sustainability. The digital
networking of products and systems is leading to a broadened concept of safety and security, whereby
it is still the human who takes center stage. However, in addition to the physical safety aspect, there is
now also the aspect of security in the sense of protecting personal data and networked systems against
external attacks. Moreover, DEKRA has now also anchored the concept of sustainability in its corporate
vision and intends to be climate-neutral by 2025. DEKRA therefore now pursues the goal of becoming
the global partner for a safe, secure, and sustainable world by 2025.
In association with the broadened corporate vision, the Company mapped out its strategic course in
2021. Our inspections services will concentrate on five corporate focus areas which represent key fieldsof growth, in which existing services will be improved and also new digital services will be developed.
These corporate focus areas are: Future Vehicle and Mobility Services, Information and Cybersecurity
Services, Remote Services, Artificial Intelligence as well as Sustainability Services. Within these corporate
focus areas, we are developing services for the present day and for the future, such as the successful
launch of the patented fast battery test in the year under review.
As a global enterprise, we benefit from the sustainable advancement of the economy, the environment,
and society. We have assessed the impact of climate change on our organization and on our businessmodel and taken this into consideration within our sustainability strategy. Which undergoes continual
further enhancement in close consultation with the Management Board and the Executive Management (the highest management level directly beneath the Management Board).
We are addressing the specific challenges related to our business activities such as, the indirect impact
of business trips on the climate, and we are working on limiting these and developing innovative solu­
tions. We also take environmental 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 thus establish
what the relevant risks are and where there is potential for improvement. Overall, the growing market
demand for independent sustainability expertise holds major potential for DEKRA.

DEKRA Financial Report 2022

8Group Management Report › Fundamental information on the corporate groupResearch and development
DEKRA has been an independent expert organization since 1925, so for almost 100 years the Company
has been working in the area of road safety – with periodic vehicle inspections, with the deployment ofaccident analysts and accident investigators, and with crash tests, public campaigns, and involvementin 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 accidents
on the roads in order to draw conclusions for road traffic safety. Furthermore, DEKRA uses its status as
an international expert organization to inform the public in workshops and publications about relevant
technical requirements for more road safety.

Focusing on young road users

The 15th edition of the DEKRA Road Safety Report �in German: Verkehrssicherheitsreport, abbreviatedto “VSR”� was issued in financial year 2022. 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 “Mobility among the Young,” the DEKRA
VSR 2022 tackles the question of how to improve road safety for young road users.
The DEKRA VSR is accompanied by the DEKRA online portal for road safety: www.dekra-roadsafety.com.
Here, there is additional content available to supplement the printed report, such as videos or inter­
active graphics. The portal also addresses many other topics relating to road safety, including vehicle
technology, infrastructure, or the human factor, such as the matter of being distracted by smartphones.

Mobility of the future

DEKRA has been keeping pace with technological developments in the automotive sector for many
years. The shift towards the mobility of the future represents a particular challenge for all those involved in the automotive industry. For that reason, a team at DEKRA has been working on developing
services covering every aspect of the connected vehicle. In doing so, DEKRA pools its whole range ofknowledge gained from laboratory tests and materials testing, all the way through to homologationand type approval, across organizational and national borders.
Following the acquisition of the Lausitzring racetrack in Klettwitz/Germany five years ago in November 2017, DEKRA merged the racetrack with the adjoining DEKRA Technology Center in 2018. Here,on 540 hectares of land, we have created a unique manufacturer-independent testing and inspection
center for automated and connected driving. In addition to testing components in accordance with thewireless-network-based 5G standard, a wide range of scenarios can be tested for networked communication between vehicles and with their surroundings, using the 5G mobile communications standard.
The investments made so far – among other things, in tracks and in transmission and measurement
technology – come to an amount in the mid-double-digit million-euro range. And still we continue toexpand further. In the year under review, DEKRA’s Management Board decided to establish a testing
center in Klettwitz for drive batteries used in electric vehicles. Also, the preparation work got underway
for constructing city tracks on the premises. In future, it is intended that a whole variety of inner-city
scenarios will be tried out on these new tarmac surfaces that include mobile infrastructure and flexible
built-up sections. Together with the tracks already existing at the DEKRA test oval and at the Lausitzring, this will enable us in future to try out test vehicles in flexible inner-city, cross-country, and motorway scenarios. Overall, with its tests for manufacturers and suppliers to accompany their development
work and likewise with its tests within the realm of homologation and type approval, DEKRA ensuresthat the automated driving functions that will be in use on roads in the near and distant future reallyare safe.
The growing significance of automated driving functions for future road safety is also reflected within
the research project LAURIN, which was launched by DEKRA together with five business partners in
May 2022. The goal is to take the process of steering test vehicles all around the moving objects up
to a whole new level. The automated driving functions are tested at DEKRA’s Lausitzring site, not justthrough simulation but also by performing real-life tests. The LAURIN research project is scheduled tolast for three years and is sponsored by Germany’s Federal Ministry of Digital Affairs and Transport.
The project is being led by DEKRA Automobil GmbH.

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Together with other DEKRA facilities in Spain, mainland China, and Taiwan, the Lausitzring and thefacility in Klettwitz make up part of a highly efficient international testing network. In Málaga, Spain, forinstance, the focus is on the secure connectivity and electromagnetic compatibility of mobile phones,
smart home products, and Industry 4.0 applications, as well as a test area for connected driving. The
focus there is on product testing, the development of early-stage test procedures, and the testing of
V2X (vehicle-to-everything) technologies.
Data plays a crucial role in the context of increasingly automated driving and network-connectedtraffic – specifically also with regard to road safety. As part of the “Trust Center” initiative, DEKRA has
been calling for the unfiltered and non-discriminatory access to vehicles’ safety and environmental data
since 2019, without which it is not possible to guarantee the proper condition and safety of vehicles.
The “Trust Center” is a trustee-based model for the secure gathering and analysis of data in the spiritof consumer and data protection.
Hydrogen technologies will play a key role in combating climate change. For that reason, DEKRA is
actively committed to the hydrogen energy economy of the future – for example, through its role as amember of the Hydrogen Europe trade association, dealing with internationally recognized standards
and regulations for one thing, and the topic of a safe infrastructure for another. DEKRA contributes­essential know-how, ranging from the production of hydrogen solutions, and their transportationand distribution, all the way through to their use – not least in successful customer projects and pilot
projects. For example, DEKRA is providing accompanying support to the start-up company, hylane, in
its launch of the first commercial rental fleet of 44 hydrogen-driven commercial vehicles in Germany.
The business partners involved are thus accumulating valuable experience with regard to various­approaches to fuel cell technology. And for BMW, prior to the launch of the demo fleet of the iX5 Hydrogen model, DEKRA has performed consumption measurements at its Technology Center’s powertrain
and exhaust gas laboratory at the Lausitzring site in Klettwitz.

Intensifying the digitalization drive

The digitalization of services and processes continued to be driven forward in the financial year, thus
further paving the way for the development of future-oriented services in the field of artificial intelligence (AI) and cybersecurity.
In the year under review, work continued on a Center of Excellence for AI that we started to set up in2020 in cooperation with DEKRA Digital. The aim is to further improve existing services based on thepossibilities offered by AI. Throughout all of our Service Divisions and Regions, we were able to pinpoint
70 potential projects that can be initiated through the use of AI and implemented in the coming years.
In the previous year, DEKRA already set up a “Cybersecurity Hub” to protect people worldwide fromhacker attacks and the fraudulent use of data. As global networking increasingly expands throughout
all sectors, the demand for all-encompassing cybersecurity standards is taking more and more precedence. Whether it’s a matter of functional security, product tests, or automotive cybersecurity, our global
customers appreciate us as a business partner in the transformation of cybersecurity. One current
example can be seen in the challenges posed for the automobile industry by UNECE’s disruptive UN
Regulations R155/156. We give our customers support, enabling them for the first time to regularly
check the certification requirements for cybersecurity management systems across all levels of thevalue-added chain and throughout the entire life cycle of cars.
MASA (Mobile Application Security Assessment) enhances the level of security and transparency in the
Google Play Store. The ADA (App Defense Alliance) that was established by Google draws from DEKRA’ssound experience in the field of mobile safety. Our organization was named as one of the program’s
five official partners. Apps developed by application designers are reviewed on the basis of a defined
catalogue of criteria.
Digital security is also the focal point of the strategic collaboration between DEKRA and Microsoft,
agreed upon in the year under review. The goal of this is to develop digital inspection solutions on thebasis of Microsoft Azure. This collaboration, which takes the perspective of a technology partnership,
has already produced its first results in that, on the basis of Azure’s cloud computing services, DEKRA
has already developed one initial solution in the form of a patented fast battery test for electric cars.

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10Group Management Report › Fundamental information on the corporate group

DEKRA’s future inspection solutions will be all about the use of so-called digital twins to create virtual
images of the objects to be inspected. This will become increasingly important because it must be
checked whether – subsequent to a software update – the data status of the real-life equipment stillcorresponds to its digital twin where the legal regulations are stored. DEKRA anticipates that digital
twins will redefine inspection services. The future of inspection accordingly lies in a combination ofphysical-presence inspections and continuous digital inspections. Thus, at DEKRA, we have morethan 100 IT experts involved in this, under the leadership of the DEKRA CIO. In future, it is likely to be
the case that digital solutions will, play a relevant part in almost all of the present day’s testing andinspection services.
Another area of testing that is growing in significance is Wi-Fi security. In 2022, DEKRA therefore
expanded its collaboration with the Wi-Fi Alliance. At the DEKRA product testing laboratory in Stuttgart,
Germany, an ATL (authorized test laboratory) is being created for the Wi-Fi Alliance’s certification
program. Here, manufacturers will in future, be able to get their products officially verified as Wi-Fi
CERTIFIED™. The focus of the new ATL will be particularly on the markets for the automotive sector
and industrial internet of things (IIoT). DEKRA already has laboratories in Málaga, Spain and Shenzhen,
China that hold official approval from the Wi-Fi Alliance. Altogether, DEKRA carries out tests on wirelesstechnologies at 14 different test locations worldwide according to the various internationally recognized
standards.

Integrity¹
Compliance management system

The observance and implementation of laws and directives is given high priority throughout the Group.
In 2022, DEKRA’s Compliance Management function was expanded and adapted in response to chang­
ing requirements. With the involvement of the operating units, DEKRA’s Compliance Office drew up a
web-based international compliance training course, which will be rolled out across the entire DEKRA
Group in 2023. Moreover, the Compliance Management function was developed further, with a focus
on interaction with the Regions. Together with Risk Management, the Compliance Office is working to
identify new, international areas of risk and to reinforce the international team and its global teamwork.
The Chief Compliance Officer and the Compliance Office constitute a confidential and neutral point ofcontact for employees and external parties. In 2022, the Compliance Office introduced a web-based,
highly secure whistleblower system for receiving, processing, and documenting tip-offs. This systemmeets the requirements of the Whistle-blower Directive. The whistleblower system is certified according
to European data protection law and allows whistleblowers to remain anonymous.
These days, compliance is not just seen to be purely a standards-based task, but also a matter thatis based on values and integrity. The concept of corporate social responsibility plays an increasingly
important role in successful corporate management. Observing ESG (environmental, social, and gover­nance) factors is not only imperative for avoiding liability damage claims, but also for ensuring longterm competitiveness and preventing damage to a company’s reputation. The compliance function istherefore increasingly evolving into an integrated ethics, risk, and compliance function, thus making
its contributing to DEKRA’s mission of being the global partner for a safe and sustainable world.

Quality management

Impartiality, integrity, and reliability are values that are crucial to DEKRA’s success as an independent
expert organization. DEKRA’s reputation and ability to compete on the market and its impartiality whenrendering services and public duties are heavily dependent on the conduct of each and every individual.
Authorities, clients, customers, and business contacts can reasonably expect that all DEKRA employees,i.e., staff members, middle management, executives, and board members, work on the basis of thesestandards, 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 the quality management
system. In the year under review, amendments and updates of internationally applicable norms were
implemented in DEKRA’s processes worldwide and incorporated into the risk assessment process.

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Quality management (QM) not only sets the guidelines, but also constantly inspects and optimizes theprocesses and services at DEKRA. In addition to annual external inspections conducted by the author­
ities, all subsidiaries with certified or accredited QM systems ensure the quality of their products andprocesses by means of regular and planned audits. QM also controls and safeguards DEKRA’s accreditations and official permits. For the purpose of extending QM further, DEKRA relies on a corporate-wide
Enterprise Quality Management System (EQMS).

Sustainability²
Sustainability management

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

DEKRA again continued to expand its sustainability management in financial year 2022. The Company’s
focus with respect to sustainability is geared towards DEKRA’s corporate values, towards the require­ments of the official German and international sustainability codes, and towards the ten principlesof the UN Global Compact. Since the end of 2020, DEKRA has held the highest ranking of platinum in
EcoVadis’ sustainability ratings. This platinum rating was confirmed again in the 2022 reporting year.
Our organization therefore continues to belong to the top one percent of rated companies of a similar
nature.
Based on DEKRA’s 2025 sustainability strategy, the Company continues to drive forward with ecologicalmatters (expanding internal environment and climate management) and with social issues (DEKRA
social standards, processes ensuring human rights), along with the organizational integration ofsustainability management into the supply chain. Step by step, the Company is improving itself in thedefined fields of focus: Environment & Climate, Employees & Society, Supply & Value-added chain, andManagement & Governance. The Company’s focus with respect to sustainability is constantly being
assessed and enhanced in dialogue with internal and external stakeholders.
DEKRA also contributes overall to sustainable developments in the economy, environment, and 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 matters of sustainability and corporatesocial responsibility.
Subsequent to the strategic realignment in 2022, sustainability is one of DEKRA’s main areas of focus.
In the year under review, we therefore began to strategically expand our existing sustainability port­
folio in all Regions and to invest in new services. The active support we give to customers focuses hereon the following topics: turnaround in energy policy, closed-loop economy, and ESG (environmental,social, governance). Specifically, in 2022 we developed or enhanced our testing, certification, inspection,
expert, and training services that relate to the technologies underlying the turnaround in energy policy,
in particular hydrogen, photovoltaic, wind energy, and batteries. In addition, DEKRA is developing services
that support companies, financial service providers and investors in implementing and reviewing
sustainability strategies, for example with regard to the stipulations of ESG ratings or EU taxonomy.
Moreover, to provide support to sustainable, climate-friendly, and circular-system companies and supply
chains, DEKRA has also started creating and expanding its verification and validation services in therealm of sustainability. DEKRA also has an official seal as part of this. Our goal is to ensure more clarity,transparency, and trust among market players in the future.

100%

renewable energies is one of
DEKRA’s targets for 2025.

Environmental and climate protection

On the basis of a global management system and the data-based management of environmental protection issues, the Company is further expanding and enhancing its internal environmental management system in line with current findings and requirements. The focus here is on the efficient use ofenergy and resources, as well as climate protection. The goals include, for example, switching to 100%
renewable energy for the supply of electricity by 2025. Simultaneously, DEKRA also intends to achieve
climate neutrality. Here, climate neutrality pertains to direct emissions and indirect emissions from theprocurement of energy (Scope 1 and 2) and to business trips (Scope 3). In this endeavor, DEKRA makes
use of the expertise of its employees who also specialize in these fields internally. The workforce is

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12Group Management Report › Fundamental information on the corporate group

given training and made aware of environmental issues. Internal best practices are highlighted andapplied to appropriate areas. Furthermore, DEKRA also offers expert services in the fields of climate,environment, and energy, thus also contributing to environmental and climate protection outside
the Company.
Since November 2021, DEKRA has been part of the Science-Based Targets Initiative (SBTi) and has
joined the worldwide “Business Ambition for 1.5 °C” campaign that is aimed at reducing greenhousegases and global warming. SBTi supports companies in establishing science-based emission-reduction
goals. DEKRA has made further progress along this path in the year under review. Furthermore, the
CDP (Carbon Disclosure Project) non-profit organization was commissioned to review DEKRA’s climate
strategy according to the CDP criteria. DEKRA is therefore a company that reports to CDP and thatwill, on this basis, further develop its climate management and create comparable transparency in the
future. With regard to its operating business, in 2022 DEKRA began to record the environmental impactof the business processes in its Service Divisions.

Personnel report
The number of permanent2%

employees increased bycomparedwith the previous year.

Growth in personnel

In DEKRA’s six international Regions, the headcount (not including Temp Work) rose by 638 to 29,668 at
year-end 2022 (prior year: 29,030). The core workforce in the Germany Region grew to 13,252 employ­ees, a rise of almost 1% compared to the prior year. The number of employees in the Service Divisions
also rose from 292 to 331. On the other hand, the Group’s central divisions (“Steering & Support”)
reduced their headcount to 645 employees (prior year: 680).
In the “Temp Work” division, the number of employees in the reporting year remained at the high levelof 18,002, following on from what was already a steep rise in 2021 (going up by 3,003 to 17,768). In
Germany, 10,690 members of staff were deployed in the Temp Work division (prior year: 10,532).
As a result, the DEKRA Group’s headcount reached the total figure of 48,646 (prior year: 47,770).

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 16.7% (prior year: 16.7%). This quota has been reached. The target of 25% set for the Management
Board of DEKRA SE from 2022 onwards was already achieved in 2021. A quota of 15% and 20% was set
for the first-tier management level (Executive Committee) and second-tier management level (Management Committee), respectively, from 2022 onwards. With an actual ratio of 9.5% (prior year: 9.1%), thefirst-tier management level has not yet met its target. On the other hand, the second-tier managementlevel achieved the aforementioned target with a ratio of 19.8% (prior year: 18.9%). Both targets remain inplace, and we are continuing to work towards achieving the target set for the first-tier management level.

Chief Human Resources Officer (CHRO)

As part of the Company’s continuing global focus and to strengthen its uniform corporate image,
the role of CHRO was redefined in the Company. The CHRO makes a key contribution to ensuring thecreation and implementation of modern global HR standards at DEKRA, thus enhancing its Group-wide
appeal as an employer. At the same time, the HR function itself is strengthened through new gover­nance processes.

HR strategy

The adoption of the new, Group-wide HR strategy serves us as a guiding force in observing and implementing the upcoming corporate challenges of the next few years in a focused manner. Its main
cornerstones are culture, talent management, leadership, and employee experience. The HR strategy
underpins the development of our Company, proactively and strategy-implementing, promoting its
growth as a global group.

DEKRA Financial Report 2022

13Group Management Report › Fundamental information on the corporate group

HR transformation

The project entitled “evolve” constitutes a first, crucial step towards setting up our HR organization ona globally coordinated basis. The “evolve” project helps to strengthen and harmonize DEKRA as a Groupthrough globally standardized HR processes and tools. At the same time, “evolve” also strengthens theinternal HR function via new global roles, functions, and responsibilities.

Leadership development

Again, we continued this year to pursue our activities in the realm of leadership development. We
enacted the worldwide International Advancement Program (IAP) for talented employees around theglobe, with the current ratio of women surpassing 50%. Likewise, we staged a digital learning journey
for our middle-management staff in order to boost them in their leadership tasks and the different
framework conditions (“digital leadership”) through diverse training courses. By doing so, we prepared
our managerial staff specifically for the digital challenges ahead. Also, we added a further module to
the Managerial Foundation Program (MFP).

Talent management

One particular strategic focus of talent management is on safeguarding the future of the Company.
The setting up of an OTR (organizational talent review) helps to identify talent more systematicallyand to develop it further. At the same time, the OTR reinforces global succession planning and theimplementation of individual development plans within the Company.

Digital learning culture

DEKRA Global LMS is the Company’s digital learning platform that was created in close collaboration
between the Human Resources and the Training divisions and implemented worldwide from 2021
onwards. The strategic goal is to create a digital learning culture in the Company. There is particularfocus on the field of soft skills: in this respect, there are more than 130 different courses on offer inten different languages – including Chinese from 2023 onwards. Worldwide, more than 20,000 courses
were attended this year.

Diversity & inclusion (D&I)

D&I is a key concern for DEKRA employees and corporate management. In 2022, DEKRA put a great
deal of effort into implementing effective measures for equal opportunities: Besides approving a global
directive for diversity, inclusion, and equal treatment, we also signed a “Diversity Charter,” thus committing ourselves to actively promoting diversity in the workforce. The Diversity Steering Committee
was established as a decision-making and reporting body. This has the task of strategically steering
D&I, of controlling the effectiveness of measures implemented, and of regularly analyzing relevant
indicators. By exchanging notes with other companies on the topic of D&I, in the future DEKRA would
like to learn from best practices and create a working environment in which each person is fosteredand valued individually.

DEKRA Financial Report 2022

14Group Management Report › Economic business report

Economic business report
Macroeconomic and sector-specific environment
Slower growth in world economy

Growth in the global economy slowed down significantly in 2022. Whereas the global gross domestic
product (GDP) still showed growth of 6.0% in 2021, the growth rate recorded in 2022 was only 3.4%. The
slump was particularly strong in China. Compared to the 8.1% recorded there in 2021, the growth rate
in 2022 was only 3.0%. Among the developing and emerging economies, India was the country with thestrongest growth (6.8%). In the case of the western industrialized nations, Spain and the UK came top(with 5.2% and 4.1%, respectively). Growth in the eurozone came to 3.5%. The developing and emerging
countries achieved a growth rate of 3.9%.
Compared to the prior year, unemployment in the eurozone (as defined by the IMF) went down to 6.6%
(December 2021: 7.0%). Overall, 11.0 million people were unemployed in the eurozone in December 2022.
According to EUROSTAT, the annual inflation rate in the eurozone rose year on year from 5.0% in theprior year to 9.2% in December 2022. According to EUROSTAT, Germany had an annual inflation rate of
9.6% in December 2022.

Challenging framework conditions

The automotive industry, which is a key sector for DEKRA, showed very big regional differences in how
it developed in 2022. According to figures from the German Association of the Automotive Industry(VDA), the number of newly registered vehicles rose in India (23.0%) and in China (10.0%). In Europe(EU 27, EFTA, UK), the number of newly registered passenger cars went down (-4.1%), and likewise in
the USA (-8.1%). In Germany, the total slightly exceeded the prior-year figure (1.0%). Once a number ofproblems in the supply chains had been overcome, car production in Germany rose again. Nevertheless, the production figures are still not back up to their pre-COVID-19 level from 2019.
DEKRA’s industrial business is influenced by the German and international industrial economy. In 2022,
not only the consequences of the COVID-19 pandemic but also the turmoil due to the war in Ukraine
were reasons for an increasingly difficult economic environment. In Germany, the manufacturingindustry overall recorded a decline of -0.6%. However, production in energy-intensive industrial sectors
suffered a far greater decline (-19.6%). Overall, production in the reporting year was characterized
above all by higher energy costs and bottlenecks in procuring primary products and raw materials.
In the Training and Temp Work Service Divisions, the awarding of contracts in the public sector plays
a relevant part, as does – above all – the demand in industry for temporary workers. According to datafrom the German Federal Employment Agency (BfA), the number of temporary workers on annual
average for 2021 stood at 816,000, which was therefore higher than the previous year but still lower
than in the year before the COVID-19 pandemic.

Business performance
Group

7.4%

At Group level, sales increased by

Still on track – despite the difficult environment
Due to the ongoing COVID-19 pandemic and the war in Ukraine, the economic environment has wors­
ened on a global scale. Notwithstanding this situation, DEKRA managed to further expand its businessvolumes thanks to its good position on the markets and its customer-centric focus. Compared to theprior year, revenue rose by 7.4% to 3,796.5 million euros. In the face of rising personnel and energy
costs, the earnings before interest and taxes (EBIT) did not manage to reach the high level of the prioryear. Moreover, the prior-year figure had included the positive one-off effect of a conversion relating
to a German association for employers’ liability insurance, amounting to 14.5 million euros. Earnings
before interest and taxes dropped to 201.8 million euros (prior year: 216.1 million euros).

DEKRA Financial Report 2022

15

5 of 6
Sales growth inRegions

Group Management Report › Economic business report

Germany Region

In Germany, DEKRA’s revenue grew by 9.9% to 2,358.5 million euros. This success is attributable to thehigh level of quality of DEKRA’s services, its widespread presence in Germany, and the rapid digitalizationof services. Moreover, revenue was underpinned by a positive development particularly in the sector of
testing/inspection. Furthermore, the “Training” division was shaped by pandemic-related catch-up effects.
Inspection business holds up well
In 2022, the Vehicle Inspection division succeeded in achieving another increase in the number of­general inspections. This meant that DEKRA was able to further reinforce its strong market position.
In the Claims & Expertise division, the disastrous floods in Germany and Belgium in July 2021 were still
having an effect during the year under review. Besides that, the increase in traffic volumes after the
COVID-19 pandemic also had an effect on revenues.
In 2022, a new test stand for electric engines and electric drive axles went into operation at DEKRA
Technology Center at the Lausitzring. DEKRA is thus expanding its position in a growth market of themobility sector. One other highlight was the testing of a fuel-cell vehicle’s hydrogen consumption on
the dynamometer.
Revenue in the Industrial Inspection division achieved another increase thanks to the expansion of
our market position. DEKRA was successful in acquiring major customers, including, companies in thebuilding industry and energy sector.
The Training division registered the first catch-up effects subsequent to the relaxation of the COVID-19
restrictions. Revenue went up by 7.4% compared to the prior year, but nevertheless remains below
the pre-crisis figure – also due to the lower level of unemployment and, in connection with that, thereduced public funding measures.
To mitigate the effects of this, in the reporting year we rigorously continued to further enhance our
virtual learning portfolio, especially in the private sector. Our learning management system – theDEKRA Learncube – was enhanced to give a positive learning experience and was received with greatinterest by corporate customers, in particular. Revenues generated through business with corporate
customers reached a record level of more than 40 million euros. Thanks to flexible learning concepts
and acknowledged expertise, DEKRA succeeded in achieving strong growth in the sector of electromobility, too. DEKRA will therefore invest further in facilities and personnel and will continuously expand
its range with qualifications for dealing with hydrogen and other areas.
The increasing lack of skilled workers, together with the future transformation of the economy propelled by digitalization, give rise to opportunities in terms of the re-skilling and upskilling of employees.
The same applies to measures aimed at integrating refugees.
Despite difficult framework conditions, business in the Temp Work division developed positively in theyear under review. For one thing, there was a rise in demand from customers in the logistics and automotive sectors. For another, it was possible to achieve significant growth in personnel recruitment, forexample the recruitment of highly skilled professionals. The number of temporary workers in Germanyrose from 10,532 to 10,690.

Central East Europe & Middle East Region

In the reporting year, DEKRA recorded revenue of 170.7 million euros (prior year: 166.2 million euros) in
the Central East Europe & Middle East Region.
The growth in the year under review is attributable in part to the positive developments in the Vehicle
Inspection division. The Company managed to expand its market position in the reporting year throughthe takeover of inspection stations in the Czech Republic in 2021. In addition, DEKRA achieved successin the business sector of organizational process reliability and product testing. Here, through taking
over an Italian company in 2021, the Group strengthened its position in the testing of electromag­netic
components (EMC) in 2022 with a new laboratory located in northern Italy.

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16Group Management Report › Economic business report

North-West Europe Region

DEKRA managed to increase its revenue in the North-West Europe Region to 365.2 million euros (prioryear: 355.8 million euros).
This growth is attributable in particular to the positive developments in the Claims & Expertise, Industrial Inspection, and Audit divisions. In the Claims & Expertise division, the post-pandemic rise in traffic
volumes contributed to the growth, especially in Belgium and the Netherlands.
In Denmark, Sweden, and Finland, the existing vehicle inspection network was expanded further. The
number of inspection stations rose to 147 (previous year: 133).
In the Netherlands, DEKRA expanded the test area in Arnhem for the Product Testing division by add­
ing a new open area test site (OATS) for testing electromagnetic compatibility (EMC). The new testing
facility can be used for testing large vehicles, such as electric buses and e-trucks, but also construction
and agricultural machinery. This testing area gives DEKRA further possible ways of assisting manufac­
turers in developing, testing, and certifying their newly designed products.

South-West Europe Region

DEKRA generated revenue of 544.3 million euros in the South-West Europe Region, which was therefore
below the prior-year figure (551.1 million euros).
The decrease in revenue occurred in France and stems from the Product Testing and Industrial Inspection
divisions. In the Product Testing division, a major contract came to an end. In the Industrial Inspection
division, staff shortages meant that this Service Division was not able to exhaust its full business potential.
On the other hand, Spain achieved an increase in revenue in the reporting year. There were positive
developments in the Product Testing division – particularly due to the expansion of cybersecurity activities, telecommunications, and regulatory services – and in the Advisory & Training Services division. For
instance, the Advisory & Training Services division managed to win the custom of a global player in thechemical industry for all aspects of work safety in constructing a new factory facility. Also, it succeededin extending a contract with a leading manufacturer in the aeronautics sector. This contract relates totraining courses dealing with the topics of health, safety, environment (HSE), mental health, and leadership. In Spain, the first DEKRA vehicle inspection station opened in May 2022 in the town of Leganés inthe southwest region of Madrid. Further sites are to be added in due course.
In the Advisory & Training Services division, DEKRA successfully won the custom of, and performed­consultancy projects for, a major producer of fertilizer that is based in Spain and has production facilities in France and the UK.
The Audit division won the custom of an international automobile manufacturer. With a combinationof remote and on-site audits, DEKRA performed convincingly with regard to all aspects of vehicle­warranty testing.

The Americas

In the year under review, the Americas Region recorded revenue growth of 19.7% to 113.5 million euros(prior year: 94.8 million euros).
This growth mainly stems from the Vehicle Inspection division in Costa Rica, the USA, and Mexico, andfrom the Product Testing and Audit divisions.
In the 2022 reporting year, DEKRA entered into the sector of periodic vehicle inspections in Costa Rica,
thus underlining its position as the global market leader. Including Costa Rica, DEKRA now performs
vehicle inspections in 24 different countries, five of which are on the American continent. In the year
under review, DEKRA already opened 13 inspection stations in Costa Rica, generating revenue of
2.6 million euros.
In the Advisory & Training business sector, one highlight in the reporting year was the conclusion of a
project for Canadian National Rail (CN Rail). Thanks to DEKRA’s advisory services, CN Rail managed to

DEKRA Financial Report 2022

17Group Management Report › Economic business reportmake significant work safety improvements. Within the period of two years, the rate of injury within thecompany (which has 24,000 employees and a rail network totaling 36,000 km) went down by 32%.

APAC Region

DEKRA achieved further growth in the APAC Region. Revenue went up to 244.3 million euros (prior year:
221.2 million euros).
This is attributable in particular to the Vehicle Inspection division in New Zealand, through catch-up
effects subsequent to the country’s strict lockdown measures in 2021 during the COVID-19 pandemic.
Despite massive COVID-19 lockdown measures on mainland China, revenues achieved a slight increase
there. On mainland China and in Taiwan, there were positive developments in particular in the ProductTesting division, predominantly relating to failure analysis, LED testing, high power solutions, and­cli­matic compatibility.
In the past years, DEKRA set up a network of high-performance test laboratories in this Region. One
further milestone in this regard was the opening of a new test center for renewable energies in Shanghai, China. This means that DEKRA will also actively benefit in future from the growing demand in the
Chinese solar energy industry. Measuring 2,600 square meters in total, the DEKRA Shanghai Renewable
Energy Testing Center in Baoshan, Shanghai, is DEKRA’s largest and most state-of-the-art solar laboratory.
The service portfolio comprises inspections and certifications all along the entire solar value-added
chain: from the raw materials, through the components and modules, and all the way through to power
plant operations and low carbon certification.
In the consumer goods sector (Product Testing division), DEKRA successfully expanded its network of
ATLs (authorized test labs) for Amazon’s cloud-based voice service, Alexa. In the meantime, we haveeight laboratories in China, Japan, and South Korea that test devices according to Amazon standards. In
this way, DEKRA ensures that the products meet the requirements for acoustics, functionality, and user
experience (UX).

Overall statement by the management

Despite the far-reaching political and economic challenges, DEKRA managed to stay on course andachieve growth in the year under review. The Company has resolutely placed its focus on the needsof its customers and on the implementation of its corporate strategy. Thus, it has, for the most part,been able to counterbalance the impact of the war in Ukraine and the ongoing restrictions caused by
the COVID-19 pandemic. DEKRA assumes that in 2023 too – as presented in the forecast report – theCompany will be able to maintain its growth trend, in spite of all the uncertainties in the economic andgeopolitical environment.

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

worldwide in millions of euros

3,535

3,797

+7.4%

revenue growth

2021

2022

At 3,796.5 million euros (prior year: 3,534.8 million euros), the revenue of the DEKRA Group in financial year 2022 was 261.7 million euros higher than the prior-year level, which corresponds to a risein revenue of 7.4% (prior year: rise of 10.9%). This therefore surpassed the goal for the 2022 financial
year of achieving a revenue increase of 3% to 5% . However, earnings before interest and taxes (EBIT)
decreas­ed by 14.3 million euros from 216.1 million euros to 201.8 million euros, whereby this is largely
due to the fact that in the financial year 2021 EBIT included the special effect of 14.5 million euros
stated under personnel expenses, which led to a higher earnings figure. If EBIT is adjusted for thisspecial effect, then in the 2021 financial year it would amount to 201.6 million euros. That means
that, due to the growth in revenue, EBIT in the reporting year was on a par with the previous year andthat the rise in costs – especially for personnel – was more than offset. The target set in the financial
year 2021 was for a slight rise in EBIT in the financial year 2022. In fact, despite unanticipated cost
increases and a higher level of sick leave due to COVID-19, the actual figure for EBIT in 2022 (after adjusting the prior-year figure for the aforementioned special effect stated under personnel expenses in thefinancial year 2021) was only slightly below expectations.

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18Group Management Report › Economic business report

A 6.8% proportion of the revenue growth is derived from organic growth (prior year: 10.5%). Besides
the expansion of business activities and volumes, price increases also contributed to this growth. A
0.1% proportion (prior year: 0.2%) of the growth 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 increasing revenue by 0.5% (prior year: 0.2%).
In the financial year, all Regions except for South-West Europe recorded a rise in revenue compared tothe prior year. In absolute terms, the Germany Region made a significant contribution to the revenue
growth, recording a rise of 212.7 million euros compared to the prior-year revenue. The Region’s revenue achieved particular growth in its Temp Work, Vehicle Inspection, and Industrial Inspection divisions.
Throughout the DEKRA Group, it was the services rendered in the Temp Work, Vehicle Inspection, andClaims & Expertise divisions that contributed significantly – in absolute terms – to the year-on-year growth.
Other operating income increased by 3.9 million euros to 47.1 million euros (prior year: 43.2 million
euros). This is largely due to income from foreign currency valuations.
The cost of materials rose by a disproportionately low 6.9% compared to the revenue growth. The
cost-of-materials ratio is 9.2%, slightly lower than in the previous year (prior year: 9.3%).
Personnel expenses rose by 9.6% in 2022 to 2,550.3 million euros (prior year: 2,327.3 million euros),thus at a disproportionately high rate compared to the revenue growth. The personnel expense ratio
increased markedly by 1.4 percentage points in the financial year, from 65.8% to 67.2%. The rise inpersonnel expenses mainly results from the Temp Work division, due to a rise in business volumes,
and due to a year-on-year increase in temporary workers’ non-productive costs.
Other operating expenses went up by a disproportionately high rate of 8.3% compared to the revenue
growth. They increased to 547.5 million euros, a rise of 41.9 million euros compared to the prior year.
The expense ratio went up slightly by 0.1 percentage points to 14.4% (prior year: 14.3%). The disproportionately high increase is largely due to changes in the group of consolidated companies and exchange
rate differences of 12.1 million euros in total. If the figure is adjusted for these effects, the increase inother operating expenses amounts to 5.9%, which is disproportionately low in relation to the growth inrevenues, and the adjusted expense ratio of 14.1% is slightly below that of the previous year.
The depreciation/amortization volume increased slightly by 2.0 million euros to 204.1 million euros in
the financial year (prior year: 202.1 million euros). The depreciation/amortization of intangible rightof-use, and tangible assets (property, plant, and equipment) rose by 5.7 million euros whereas, by contrast, expenses from non-scheduled write-downs on intangible assets went down by 5.6 million euroscom­pared to the prior year.
EBIT

worldwide in millions of euros

216.1

201.8

-6.6%

EBIT decrease

2022

2022

Earnings before interest and taxes (EBIT) decreased by 6.6% to 201.8 million euros (prior year:
216.1 mil­lion euros). If EBIT is adjusted for the prior year’s special effect of 14.5 million euros statedunder personnel expenses, which increased the prior-year earnings result, then EBIT in the year underreview has remained stable at the prior-year level. Year on year, the return on sales as a ratio of EBIT
decreased by 0.8 percentage points to 5.3% (prior year: 6.1% return on sales). The special effect in theprevious year amounting to 14.5 million euros, stated under personnel expenses, which raised theprior-year earnings result, made a 0.4% contribution to this decrease.
Compared to the prior year, the financial result went down by 8.5 million euros to 17.9 million euros.
This is largely attributable to write-downs of loans to affiliated, non-consolidated subsidiaries and also
to year on year changes in liabilities from put-call options in connection with subsidiaries acquired inprevious years.
Consequently, earnings before income taxes (EBT) went down by 22.8 million euros to 183.9 million
euros (prior year: 206.7 million euros). The return on sales as a ratio of earnings before income taxes
decreased to 4.8% (prior year: 5.8%).
Compared to the prior year, the Group tax rate dropped 0.4 percentage points to 31.2%(prior year: 31.6%).

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19Group Management Report › Economic business report

The consolidated net income for financial year 2022 decreased by 15.1 million euros to 126.4 million euros(prior year: 141.5 million euros), largely because of the decrease in EBIT amounting to 14.3 million euros.
Other comprehensive income rose by 66.2 million euros to 137.1 million euros (prior year: 70.9 million
euros). This development is mainly attributable to the actuarial adjustments made to pension liabilities,
which caused an increase of 150.7 million euros in other comprehensive income (prior year: 54.9 million euros). On the other hand, the foreign currency translation reserve went down by 6.7 million euros(increase in prior year: 15.6 million euros), mainly due to subsidiaries in Sweden, the USA, and Taiwan.
Furthermore, the adjustment made to equity instruments measured at fair value through other comprehensive income likewise had a negative effect of 6.9 million euros (prior year: +0.4 million euros)on other comprehensive income. Taking into account expenses and income recognized through othercomprehensive income, this results in a total comprehensive income of 263.6 million euros (prior year:
212.4 million euros).
For reasons of comparability, EBIT and EBT for 2022 and 2021 were adjusted for the following non-op­
erating (special) effects:• systematic amortization of intangible assets identified as part of a purchase price allocation (PPA
amortization);• project costs for the significant improvement of the IT infrastructure, as well as for market entry into
new countries or business segments;• restructuring costs, 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;• proceeds from the one-off effect of a conversion under personnel expenses in the financial year2021;
• 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 226.4 million euros was on a par with the prior-year figure (226.0 million euros). In
the financial year 2022, EBIT was mainly adjusted for project costs for the major improvement of the IT
infrastructure, as well as for market entry into new countries or business segments, Because of the dis­
proportionately high growth in revenues, the margin for adjusted EBIT is down 0.4 percentage points
to 6.0% (prior year: 6.4%). The adjusted EBT stood at 210.5 million euros in the financial year (prior year:
215.5 million euros). This represents a margin of 5.5% (prior year: 6.1%).

DEKRA Financial Report 2022

20Group Management Report › Economic business report

Reconciliation: adjusted EBIT and EBT 2022
in € million

+7.8

+0.6

+0.3
-0.8

226.4

+16.7
-17.9

+2.0

210.5

Financialresult –unadjusted

Adjustments tofinancial result

EBT 2022 –adjusted

-1.1

215.5

Adjustments tofinancial result

EBT 2021 –adjusted

201.8

EBIT 2022 –unadjusted

Project costs

PPA
amortization

Restructuring Integration andcosts
transaction
costs

Other
adjustments

EBIT 2022 –adjusted

Reconciliation: adjusted EBIT and EBT 2021
in € million

+10.3

+0.5

+0.2

+8.0

-9.1

226.0

-9.4

216.1

EBIT 2021 –unadjusted

Project costs

PPA
amortization

Restructuring Integration andcosts
transaction
costs

Other
adjustments

EBIT 2021 –adjusted

Financialresult –unadjusted

Financial position
Financial management
The Group’s financial management includes, among other things, cash and liquidity management aswell 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 accountmanagement ensures that the necessary funds for payments are available where they are needed, withthe aim of keeping external investment and borrowing to a minimum. Liquidity management ensuresthat all payment obligations of the entities in the DEKRA Group are always met. To this end, the liquidity
planning determines cash flows from operating activities, secures foreseeable 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. Up to June 2022, DEKRA used derivative financial instruments
to a small extent to hedge financing arrangements bearing variable interest rates.

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21Group 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 133.1 million euros (prior year: 100.6 million euros). The Company mainly invested in landand buildings, technical and other equipment, furniture and fixtures, as well as in intangible assets. Investments in subsidiaries and business units amounted to 6.9 million euros in the financial year (prioryear: 43.2 million euros).
Liquidity analysis
The development of liquidity in the DEKRA Group is mainly shaped by the decrease in net current
assets (excluding cash and cash equivalents), by lower investments in financial assets and other assets,
and also subsidiaries and business units, compared to the prior year, and by higher cash repayments offinancial loans.
The cash flows from operating activities went down by 81.1 million euros to 286.3 million euros (prioryear: 367.4 million euros). The contributing factors here, among other things, are the decrease of
15.1 million euros in the consolidated net income, the change in net current assets (excluding cash andcash equivalents) amounting to 42.4 million euros, and the rise of 22.9 million euros in taxes paid.
The cash flows from investing activities showed a cash outflow of 154.3 million euros (prior year:
175.0 million euros). This decrease mainly stems from lower investment in financial assets and otherassets, and also subsidiaries and business units, which at 32.7 million euros was below the prior-year
figure of 93.6 million euros. The investments in intangible assets and tangible assets (property, plant,
and equipment), on the other hand, increased by 36.6 million euros to 143.2 million euros (prior year:
106.6 million euros).
The cash flows from financing activities showed a cash outflow of 223.8 million euros (prior year:
134.6 million euros). The increase in cash outflow is mainly attributable to higher repayments of financial loans amounting to 104.7 million euros (prior year: 47.8 million euros).
As a result, cash funds (consisting of cheques, cash on hand, bank balances, and cash equivalents) went
down by 90.1 million euros to 136.5 million euros (prior year: 226.6 million euros).

Net assets and capital structure

The balance sheet total of 2,812.4 million euros remained at the prior-year level (2,811.3 million euros).
Whereas there was a slight increase of 8.7 million euros in non-current assets to 1,848.5 million euros(prior year: 1,839.8 million euros), there was, on the other hand, a decrease of almost exactly the sameamount in current assets, which went down by 7.6 million euros to 963.9 million euros (prior year:
971.5 million euros).
The slight rise in non-current assets is mainly based on the effect of several opposing factors. Under
the heading of “tangible assets (property, plant, and equipment),” there was a total increase of
14.7 million euros in other assets and factory and office equipment to 130.8 million euros (prior year:
116.1 million euros) and a rise of 11.5 million euros in payments on account and assets under construction to 24.0 million euros (prior year: 12.5 million euros). Under the heading of “leasing – rightof-use-assets,” the rights of use relating to real estate went up by 30.9 million euros to 359.0 million
euros ­(prior year: 328.1 million euros). Under the heading of “intangible assets,” payments on account

DEKRA Financial Report 2022

22Group Management Report › Economic business reportincreased by 16.0 million. In contrast to these increases, there was a decrease of 62.7 million euros
in deferred income tax assets, largely due to the remeasurement of pension obligations recognizedthrough other comprehensive income.
The slight decrease of 7.7 million euros in current assets is mainly based on the effect of two opposing
factors. Cash and cash equivalents decreased by 90.1 million euros to 136.5 million euros (prior year:
226.6 million euros). On the other hand, trade receivables increased by 83.5 million to 550.9 million euros(prior year: 467.4 million euros).

41%

The equity ratio rose to

Equity rose by 210.7 million euros to 1,153.5 million euros (prior year: 942.8 million euros). The factors
contributing to this rise were the consolidated net income for the year of 126.4 million euros (prior year:
141.5 million euros), the remeasurement decrease of the pension liabilities amounting to 150.7 million
euros (decrease in the prior year: 54.9 million euros), and the allocation of 10.0 million euros to capitalreserves by DEKRA e.V., Stuttgart (prior year: 10.0 million euros). The profit transfer to DEKRA e.V.,
Stuttgart, of 61.7 million euros (prior year: 89.5 million euros) had a counteracting effect. The equity
ratio thus rose significantly to 41.0% compared to 33.5% in the previous year.
Non-current liabilities decreased steeply by 271.7 million euros to 657.4 million euros (prior year:
929.1 million euros). This is mainly a result of a decrease of 237.4 million euros in pension provisions
and similar obligations due to the reduction of 244.1 million euros in the present value of pension­enti­tlements, combined with a decrease of 6.8 million euros in plan assets. There was also a drop of
60.7 million euros in non-current bank liabilities to 85.9 million euros (prior year: 146.6 million euros). In
contrast, liabilities from lease agreements increased by 23.4 million euros to 300.1 million euros (­ prioryear: 276.8 million euros). The current and non-current liabilities are mainly denominated in euros.
Current liabilities increased by 6.6% from 939.4 million euros to 1,001.5 million euros. This is mainly aresult of the increase in other current liabilities and in trade payables.
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, 2022,
there are credit lines of 413.8 million euros (prior year: 440.5 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 robust in the financial year 2022. The development of revenues surpassed our expectations for the financial year, which meant that the earnings figure, adjusted for the prior-year special
effect of an amount stated under personnel expenses in the financial year 2021, remained stable on alevel with the previous year. The net assets and financial position allow sufficient scope for the Group to
pursue its goals.

DEKRA Financial Report 2022

23Group Management Report › Risk, opportunities, and forecast report

Risk, opportunities, and forecast report
Risk reportManaging risks systematically – integrated risk management process

DEKRA has established a strong risk culture that constitutes the basis for management processes. Its
integrated risk management process has proved its worth and is undergoing continuous further enhancement. 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 and wereintensified further in the current financial year. As part of the risk inventory, risks relating to sustain­­ability and climate change are also examined and taken into account.
Risk management is being refined on an ongoing basis within the framework of continuous monitor­ing
and improvement processes. These measures are to safeguard the effectiveness of the internal control
and risk management systems. The resulting findings are reported to DEKRA’s Management Board (ona monthly basis) and to its Advisory Board and Supervisory Board (on an annual basis). This process
is continuously adapted in response to changes in legal and economic conditions. The integrated risk
management process consists of the following subprocesses:
Risk management process

Ad hocStrategic
Short-term/medium-term

The risk inventory for short-term or medium-term risks and operational risks is performed for a multiyear period (the current financial year and two subsequent years). Strategic risks and opportunities ofan accumulative nature are recorded in a separate risk inventory, which considers long-term risks witha time frame of four or more years. The Management Board attaches great importance to strategicrisks because these can also represent major opportunities. Risks are defined as a negative deviationfrom the planning figures. If risks have already been recorded in the planning, these are not included in
the risk inventories. Internal ad-hoc risk management – involving a reconciliation with the forecastingprocess for particularly urgent matters – is an instrument that is used as a means of communicationand control within the DEKRA Group.
Moreover, regular controls take place, as well as a review of and adjustments to the effectiveness ofmeasures and to the risk-bearing capacity. Additionally, we continuously reconcile all of this with thecorporate strategy and the Company’s risk appetite. The risk inventories and the ad-hoc reports area key component of the action management and action control of the Management Board and of the
managerial levels responsible. This is the basis upon which the Management Board performs qualita­
tive and quantitative risk management.
The process also covers the DEKRA matrix of Regions and Service Divisions and its Steering & Support
functions, so that potential risks with a need for action can be identified, processed, and controlled at
the levels affected. The risk management process is used in day-to-day business for all processes of theinternal control system and the cash and performance management system. Here, too, the focus is on
the course of action (measures) and action control, as well as on managing opportunities in coordination with the Company’s risk appetite, risk-bearing capacity, and business development. Risk-bearing
capacity means the maximum degree of risk that the Company can take without jeopardizing its
DEKRA Financial Report 2022

24Group Management Report › Risk, opportunities, and forecast reportcontinued existence as a going concern. It is therefore understood to be a comparison of the overallrisk with the financial resources available to cover risks (the so-called cover pool). Business development 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 indicator among operational risks is the expected damage figure. The expected damage figure(net) for individual risks is calculated from the combination of the likelihood of risks actually occurringand the damage potential for the financial year concerned.
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-<50probable50-<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.
The Management Board and also the managerial levels responsible are kept informed on a regularbasis of the current risk situation, of any changes in such, and of any countermeasures. On the basisof this, risks, opportunities, and countermeasures are controlled in qualitative and quantitative terms
by Group-wide risk committees and by the Management Board, and the effectiveness of the course ofaction is reviewed. This action control ensures that the management of risks in terms of mitigation andhandling 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. Regular risk committee meetings are held at several levels – Management Board, Executive
Vice President (EVP), Regions and Service Divisions.
The findings from the risk management process are incorporated into the controlling, reporting, andbudget process. Through the IT-based risk management system and the digital dashboard, the data isaccessible at all times to all people taking action. This automated process greatly enhances the visibilityof the existing risks, their perception, and their relevance, and swift access to the relevant data is guar­anteed at all times.
Below, we present the risks existing at the balance sheet date with a need for action. Taking into
account the risks recorded in the planning process, on the whole the overall potential risk exposure
has remained stable compared to the prior year.

DEKRA Financial Report 2022

25

Group Management Report › Risk, opportunities, and forecast report

A transparent presentation and ongoing observation 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-bearing capacity, risk tolerance, and readiness to assume a risk.
The financial impact of the reported risks and the Group’s risk-bearing capacity are analyzed regularly.
Also, 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, coveragepotential, dividend policy, liquidity, rating, and creditworthiness. Based on the reported risks and themeasures that are in place, the impact is manageable.

Operating risks

Disruptive technologies and political, regulatory, and economic conditions play a very important rolein DEKRA’s success as an expert organization with global operations. Changes in the business environment may give rise to revenue and income risks. DEKRA therefore closely and continuously monitors
markets, sectors, and globally changing circumstances – particularly in the light of whether and how
the development of technology could cast doubt on existing business models.
The business with automotive services is fundamentally exposed to the regulatory risk of changes in
the law. These would potentially affect the following Regions above all: Germany, South-West Europe,
North-West Europe, and Central East Europe & Middle East. This risk is currently deemed to be lowneed for action under certain circumstances. The intense competition and the changing technologies
in the Vehicle Inspection Service Division give rise, however, to a moderate risk (need for action),
because price rises can only be passed onto customers to a limited extent. DEKRA lowers this risk by
constantly improving productivity based on optimized processes and new technologies to ensure moreroad safety and fewer traffic fatalities.
Expectations with respect to the economy also determine how willing DEKRA’s industrial customers are
to invest. If real or suspected economic uncertainty exists, the risk of a drop in orders increases. Thisaffects the Product Testing and Industrial Inspection Service Divisions, for example, and the Regionsof North-West Europe, Germany, APAC, and the Americas. In terms of the probability of occurence
and in terms of the damage potential, 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.
The provision of services in the Advisory & Training Services and Temp Work Service Divisions is particularly dependent on the economic climate. In both of these Service Divisions, revenue and income
may be affected by fluctuations in orders caused by general economic developments. The existence of
this risk became evident in the past year in particular in the Germany and Central East Europe & Middle
East Regions. DEKRA therefore resolutely counters these risks, which it classifies as moderate need foraction under certain circumstances, by tapping into new markets, broadening its service portfolio, andoffering customized services. New statutory regulations may lead to moderate risks need for action
under certain circumstances in the Temp Work Service Division. DEKRA is responding to regulatoryinterventions in the employee leasing markets by building up its business with key accounts and byinvesting in its position as a quality provider.
The most significant operating risk exposure currently lies in business environment and sector risks
and/or market risks and macro-environmental risks. Currently, the following risk categories are regarded as the greatest risk exposure for DEKRA’s EBIT and are listed together with their theoretically
expected damage figures:• amendments to European regulations in particular (4.5 million euros; prior year: 0 million euros)• disruptive technologies (vehicles’ general inspection, expert reports) (25.0 million euros;
prior year: 2.5 million euros)• competition risks and shortage of skilled workers (13.0 million euros; prior year: 13.0 million euros)• price and inflation risks (34.8 million euros; prior year: 7.5 million euros)• general economic risks, energy supplies (2.5 million euros; prior year: 0 million euros)• impact of pandemics (25.0 million euros; prior year: 13.6 million euros)• information technology and cybersecurity risks (2.4 million euros; prior year: 0 million euros)• geopolitical crises and supply chain difficulties (4.4 million euros; prior year: 0 million euros)• operating risks (0 million euros; prior year: 7.4 million euros)
DEKRA Financial Report 2022

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Group Management Report › Risk, opportunities, and forecast report

On the whole, the risks with a need for action add up to a total theoretical expected damage figure of
111.6 million euros in 2022 (prior year: 44.0 million euros). The increase arises in particular becauseof geopolitical and pandemic-related events, together with the effects of their interaction. Disruptive
technologies (including new competitors) increasingly pose strategic risks, but also present significant
opportunities. We have initiated the appropriate courses of action.
The overall risk situation in relation to the net income for the year EBIT, and operating cash flow is within
a normal entrepreneurial risk framework. It is reviewed regularly and reconciled with the Company’s risk
appetite, course of action, projects, and planning. The Company’s long-term existence is safeguarded
through strong, sustainable, performance-oriented, and cash-flow-based corporate management. The
action control that is part of the risk management system is integrated into the day-to-day businessand into the processes of the internal control systems.
The risk structure (risk profile) of the coming years and the spread of risks over the years from 2022
through to 2024 – also compared to the assessment from the prior-year period – is largely stable andmanageable, given the existing and initiated measures.

Corporate strategy risks

With its organizational model “TOM 2020” (seven Service Divisions, six Regions, and Steering & Support
functions), DEKRA is able to make even better use of growth opportunities. Based on the operatingrisk assessment, which mainly reflects the short-term and medium-term risk inventory for the current
financial year as well as the two following 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 significant corporate strategy risk exposure currently lies in market risks and in risks inherent
in the services/product life cycle/commodity sectors. 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
Accumulative opportunities and risks can simultaneously have a positive and negative effect on differ­
ent Regions and/or Service Divisions.
The Management Board attaches great importance to strategic risks because these can also represent
major opportunities. Appropriate action has been initiated and will be continuously expanded and reviewed. We regularly reconcile this with the Group’s strategy process and the Service Divisions’ projects.
The strategic risk report largely also includes the strategic opportunities arising from the strategicrisks or emerging as opportunities for DEKRA. These opportunities are reviewed on a regular basis andreconciled with the business development (investment management).
The risk that the stronger focus on internal networking and greater proximity to the customer could
fail is currently considered low (need for action under certain circumstances). This assessment is basedon the professional project management surrounding the introduction of the new organization, whichhas proved its worth. DEKRA is also continuing its policy of organic growth supplemented by targeted
acquisitions. By making strategic acquisitions, DEKRA broadens its base in terms of both expertise andgeography. However, the integration of acquired companies can fail or be delayed. It could happen thatbudgets are not met and synergy effects remain unfulfilled. In the context of the new organizationalmodel for the Regions, such risks are considered overall to be moderate (need for action under certain
circumstances).
Overall, DEKRA counters corporate strategy risks through professional project, performance, and integration management. It reconciles these on a regular basis with the Group’s Strategy 2025 with regard
to its strategic focus.

DEKRA Financial Report 2022

27Group Management Report › Risk, opportunities, and forecast report

The regulatory framework conditions in non-European countries differ from the conditions in Germany and Europe. As a result, the ongoing globalization of business carries liability risks and risks to
the Group’s reputation. That is why DEKRA is constantly working to enhance its risk and compliancemanagement activities. This includes the ongoing adjustment of the liability protection provided byinsurance policies in response to changing circumstances.
Within the context of the strategic risk process, altogether 28 (prior year: 25) corporate strategy risks
with a need for action were identified.
The strategic risk statements for each Region and Service Division were analyzed and discussed by each
Region’s EVP and each Service Division’s EVP, as well as in the Risk Committee and the Management Board.
Currently, all strategic risks are manageable by DEKRA, given the corresponding measures and investments and the ongoing and planned business development projects, or else they also constitute opportunities from the Group’s point of view. The sum of all strategic risks neither jeopardizes the continued
existence of DEKRA as a going concern, not does it jeopardize the Group’s corporate value.
Even taking the course of action into account, strategic risks and opportunities may have a negative ora positive effect (opportunity).

Economic performance risks

Accreditations and official authorizations are important factors on which DEKRA’s success depends.
Risk management plays a key role in this regard. With its internal control system for safeguarding
service quality and through existing insurance policies, DEKRA reduces risks that may arise in terms ofliability for its testing, expert appraisal reports, certifications, and seals. Moreover, risks due to lacking(or amend­ed) official authorizations are identified by continuously reviewing the sector’s norms andthe law. In this way, we are able to identify legal and normative changes at an early stage and makeprompt adjustments to DEKRA’s services. What is particularly important in this context is that it often
takes time and effort for employees to get the appropriate qualifications, and also the necessary
technical equipment needs to be planned and provided in a timely manner.
In Germany, national requirements for the general inspection of vehicles stipulate that testing andmeasuring equipment be regularly gauged, calibrated, and unit-tested in accordance with various
different standards. There must be proof that services to be audited by DAkkS �a German accreditation
organization� are consistently in conformity with ISO. This applies equally to calibrations and information provided by car repair garages.
DEKRA has developed all the necessary calibration processes to such an 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 ­from monitoring 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
afore-mentioned risk inventory that summarizes and evaluates internal process risks and market risks.
Overall, the risk of authorizations based on accreditations being revoked is classified as low (need foraction under certain circumstances) thanks to extensive precautionary and risk mitigation measures.

Personnel risks

All companies, and therefore DEKRA too, are affected by the progressive digitalization of the workplace, by political and economic events, and also by inflation, the energy crisis or the aftereffects of the
COVID-19 pandemic. In terms of human resources, this gives rise to the following risks: For one thing,
the ever-increasing shortage of skilled workers and, in connection with this, the problem of finding
qualified staff. For another, the challenge of retaining existing employees at the Company. Additionally,
as a corporate entity we also witness factors such as rising rates of sickness – due to COVID-19 – and achange in working conditions.

DEKRA Financial Report 2022

28

Group Management Report › Risk, opportunities, and forecast report

DEKRA’s workforce is its most important asset because its employees are the people who render theservices offered to customers worldwide. Their know-how is key to the success of our Company. For
that reason, strengthening our workforce is the central theme of our newly defined HR strategy. In themedium and long term, we intend to concentrate here on the following strategic topics: culture, leadership, talent management, employee experience, digitalization, operational excellence, and Structure& Foundation. We are thus addressing precisely those topics that are of relevance to our staff and are
currently listed as risk factors.
In 2022, we already took the first transformational steps in establishing a uniform corporate structure,
standardized systems, governance, and common standards worldwide in our HR organization. In
future, using data and KPIs, we intend to identify and analyze the key factors and either underpin or
counteract these in a more targeted manner. In this context, our “Fundamentals of Good Governance”
are currently being implemented with the aim of safeguarding our principles for a global HR organizational structure.
Much progress has already been made in the realm of “Diversity & Inclusion,” too. We intend to live
and breathe a diverse and inclusive corporate culture. That goes hand in hand with a diverse range ofoptions that we offer to our employees, such as further training, customized working conditions, andcareer advancement opportunities. We are convinced that diversity in our Company will put us in abetter position to respond to customers’ needs and market situations.
In order to provide our employees with the possibility of continuous further training, we launched ourLearning Management System (LMS) into which we continually feed new, exciting subject areas. Thereis a whole range of courses on offer here, dealing with all aspects of digitalization, specialist topics, andsoft skill training, all the way through to promoting health and awareness, and overcoming stress.

IT risks

The risk exposure here is within the normal scope and is accompanied by appropriate countermeasures. As the first line of defense, in our operations we reacted promptly and in a targeted manner
to current events and political situations 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 that operates
24/7. This is supplemented by the provision of AI-based evaluations of operating risks and the proactive
design of countermeasures.
DEKRA has always kept its eye on the issue of security, but in these changing times, information andcybersecurity form one of the cornerstones that must be given consideration in an organization like
DEKRA, which operates in more than 60 different countries. During the year now ended, we expanded
our Group-wide information and cybersecurity organization on a global scale. Each company in thesix Regions has a person appointed to be in charge of information security to provide DEKRA with asafeguard on every level.
One important topic that was also a focal point last year is the matter of raising awareness among our
employees. For this purpose, we organized training courses, introduced “Cyber Month” worldwide, andran (and are still running) phishing campaigns with the involvement of employees at all of our companies. The team responsible for information and cybersecurity continuously evaluates the degree of
security achieved at each individual company of the Group, in order to obtain a transparent and complete overview of the current level of security attained, and to maintain this level or improve it wherevernecessary. For the purpose of sustainable, standardized management within a global environment,
we introduced tools and processes worldwide to support our companies. Our Cybersecurity Incident
Response Team (CSIRT) continuously scans our internet parameters worldwide in order to detect weak
spots and initiate the appropriate treatment so as to mitigate risks. In addition, we defined a Cyber
Defense Network Model to react to cyber incidents in a globally coordinated manner. In the case of an
attack, a response to the incident follows, and the necessary forensic examinations are carried out tominimize its impact.
Despite everything that we at DEKRA have achieved, we are aware that risks exist and that we need towork on them every day in order to minimize any impact on a global scale and lessen the likelihoodof threats actually materializing. DEKRA is working continuously on improving what it has achieved so
far and, as much as possible, on countering all existing risks that may threaten our business. We arepressing ahead further with the scheduled expansion of information and cybersecurity in order to duly
DEKRA Financial Report 2022

29Group Management Report › Risk, opportunities, and forecast report

respond to the level of threat that has changed considerably and is still changing. This includes not only
implementing technical equipment, but also making adjustments to human resource capacities.

Financial business risks

DEKRA protects itself against the risk of bad debts and late payments through active customer andcontract management, global key account management, and careful credit-rating checks. As mostof DEKRA’s transactions are conducted in euros, the exchange rate risk is low (need for action undercertain circumstances). The Group’s borrowings primarily constitute promissory note loans issued andloan commitments from banks.
As in the prior year, there are no significant bank guarantees or contingencies. Collateral and guarantees have been granted amounting to 7,813 thousand euros (prior year: 925 thousand euros). The riskof a claim being made on these is currently deemed to be low (need for action under certain circumstances). If a claim is made on the guarantees, they fall due 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 poolis used to control the liquidity and supply of the national – and increasingly also the international –subsidiaries. The resulting transparency prevents possible risks. 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.
The risk of DEKRA being unable in the future to fulfill its payment obligations arising from financial
instruments is also classed as low (need for action under certain circumstances).

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

In­­creasingly, there are significant risks but also opportunities inherent in new technologies and grow­ing digitalization, and also, against this backdrop, the risk of new competitors. The above development
was accelerated further by the impact of the COVID-19 pandemic. The measures to be named here,
besides adjustments to the processes and cost structures, also include the related adjustments
to the business models/business divisions and the connected investments required.
The risk structure, as well as the risk profile and the spread of risks at the individual companies andin the Group, are largely stable and are limited by the measures defined. The Group has risk-bearing
capacity at all times. This is reviewed regularly against the background of its risk appetite and businessdevelopment (investment management).
The strategic risks are currently manageable on the basis of the projects, measures, and investmentsthat have been initiated and planned (business development) and on the basis of opportunities at
DEKRA. The sum of all risks is justifiable in relation to equity and financial strength, against the background of the Group’s risk appetite. Due to the strong equity, the sophisticated business models, thebroad spread of the portfolio, the dividend policy, and the solid financing structure, the sum total of
the individual risks does not endanger the ability of DEKRA to continue as a going concern in any way.
Provided these are implemented consistently, and with a focus on strategic opportunities and risks, theManagement Board considers the risk profile to be of a reasonable nature.
There are currently no identifiable risks to the Company’s ability to continue as a going concern.

DEKRA Financial Report 2022

30Group Management Report › Risk, opportunities, and forecast report

Opportunities report
Business environment and sector opportunities

Safety remains a basic human need for people across the entire globe. Notably the megatrends
towards digitalization, technological changes, and the global challenges posed by climate change all
harbor risks, but they also present opportunities. These will lead in future to greater demand for test­
ing, certifications, and inspections in the industrial and private sectors. The demand for corresponding
services is growing globally, not only in western industrial nations, but also in the developing andemerging economies. By increasingly focusing on its customers, alongside an extensive service portfolio in the three areas of life – on the road, at work, and at home – DEKRA is getting into position forthese future growth opportunities.
Positioning in the future market of
automotive cybersecurity.

DEKRA has succeeded in positioning itself in the automotive cybersecurity market of the future, covering all aspects of connected and automated driving, through its appointment as a Technical Service
Office by Germany’s Federal Motor Vehicle Office �in German: Kraftfahrtbundesamt�. The first projects
with car manufacturers have already started up. Through its appointment, DEKRA has been given thestatus of a type tester for compliance with the new internationally applicable regulations governing
cyber­security and software updates. According to the UNECE-R 155 and 156 requirements, manufactur­ers must provide proof of the appropriate management systems for the entire service life of a vehicle
and must have this checked every three years.

Information technology opportunities

It is expected that the market for testing, inspections, and certifications (TIC) will grow, given thein­creasing introduction of inspection and certification services for digital products. Besides that,compa­nies that operate on today’s markets must comply with reliable, efficient testing and inspection
procedures in order to fulfill the highest quality standards and achieve all-round efficiency. The increas­
ing volume of international imports and exports, consumer entertainment electronics, agriculture,and various industrial sectors, including the automotive industry (electric vehicles), will all open up an
increasing number of opportunities for TIC services in the coming years. Major companies throughout
the world are prepared to outsource TIC services in order to lower their operating costs and concentrateon their core areas of competence, so that they can put their resources to more efficient and more
effective use. It is expected that stricter testing, inspection, and certification regulations will be intro­
duced, particularly in the field of cybersecurity and AI.
Moreover, the swiftly advancing megatrends, including the demographic change and urbanization, will
guarantee that there are numerous possibilities for current and pending industrial and commercial
projects. This, in turn, will lead to stronger market growth in all Regions.
Digital adjustments and capabilities represent the primary driving force for achieving success on
the market and securing a competitive edge over other market players in terms of scalable business
opportunities. DEKRA has recognized the huge potential inherent in digital services and expects thatits strong focus on the digital transformation process will strengthen its customer ties, resulting insignificant growth and greater profitability. Furthermore, DEKRA has developed a compelling digitalvision, strategy, and roadmap aimed at transforming and digitalizing its core operating processes, thus
successfully taking the Company forward into the future. By establishing and consolidating a Groupwide, cross-divisional Center of Excellence for cybersecurity, artificial intelligence, future mobility,
and sustainability, DEKRA has created added value for the Group by improving existing services andopening up new business potential.

Corporate strategy opportunities

On the one hand, there are several factors that are propelling the global regulatory changes, including,among other things, the emphasis placed on human health and safety, greater awareness of environmental factors, and new disruptive technologies that are resulting in complex requirements but at thesame time are giving rise to major opportunities for TIC companies on the market. On the other hand,these TIC companies have to keep pace with the aforesaid changes and deal with the challenge ofserving their local markets effectively and efficiently within a globally competitive environment.
DEKRA – as an independent third-party entity – has set about creating value for its customers throughthe digital transformation of its entire core service portfolio. DEKRA is striving to achieve a high degreeof digitalization that will have a direct impact on revenue growth, time-to-market, product quality, and
DEKRA Financial Report 2022

31Group Management Report › Risk, opportunities, and forecast reportcost efficiency. In the coming years, the top priority for DEKRA will be the deployment of artificial intelligence and remote services as the underlying technology in applying the pinpointed areas of corporate
focus to the following sectors: future vehicle and mobility services; information and cybersecurity andsustain­ability services. One of the most frequent areas of application of AI is, for instance, the automation of tedious, repetitive laboratory tasks, and simplifying the analysis of thousands of items of datafor reporting purposes.
The growing number of e-commerce platforms and the emergence of technologies such as the IoT, AI,
and cloud security increases the demand for cybersecurity services and solutions, thus influencing
DEKRA’s core strategy. DEKRA’s key corporate mission is to be a reliable business partner for a safe
world and, as such, we focus strongly on – and invest in – cybersecurity services aimed at protecting
business data and preventing loss through cyberattacks.

Economic performance opportunities

Having a clearly formulated corporate strategy enables us to recognize risks and opportunities inconnection with the Company’s core business strategy, business planning, and operations throughout
the entire value-added chain. In today’s dynamic and complex business environment, our priorities andstrategies will undergo continuous improvement, given that our world has to deal with swift technolog­
ical changes and acute shock situations. One of DEKRA’s improvement programs is aimed at strength­
ening our regional presence in countries in the Asian-Pacific Region and in America, closely followedby organic and non-organic ambitions. The main emphasis here is on expanding our cybersecurity
services and product testing services in both these Regions, based on growing demand on the part of
SMEs and large corporations. It is worth mentioning that the aforementioned improved technology will
help us to improve our own performance, enabling us to provide state-of-the-art services to our local
and global customers.

Forecast report
Weaker growth

Growth in the world economy is likely to weaken in 2023 compared to the preceding year. Given the political tensions and economic crises, the International Monetary Fund (IMF) anticipates growth of 2.9%
(prior year: 3.4%) for the global gross domestic product (GDP). Whereas growth of 4.0% is expected forthe developing and emerging countries, the eurozone is only expected to see growth of 0.7% and the
USA 1.4%. India and China are likely to record the strongest growth (6.1% and 5.2%, respectively).

Global partner for a safe
and sustainable world by2025

The challenging state of the world economy, which could lead to a recession in many of the countries,
and the geopolitical challenges that exist render it difficult to make any prognosis. In view of our good
position in existing and in future markets, however, we continue to assume that our growth trend willcontinue. Revenue is expected to increase at a mid-single-digit rate in financial year 2023. The growth
will primarily be of an organic nature, supplemented by selective takeovers. Furthermore, we anticipate a moderate increase in EBIT for 2023. To achieve this, DEKRA will further expand its activities
in business sectors with greater return potential, exploit synergies within and between its divisions,and continue to optimize the global structures and processes in sales, in the Service Divisions and in
its Steering & Support functions. Moreover, we expect for 2023 that the rate of sick leave caused by
COVID-19 will return to normal. The number of employees will also rise, parallel to revenues. DEKRA expects an increase in its workforce in the low four-digit range by year-end 2023. The financial year 2022
has highlighted our resilience in times of crisis. That reinforces our belief in our “Vision 2025”: By 2025,
when DEKRA will celebrate its centenary year, we intend to have digitized our entire service portfolio,
and be the global partner for a safe, secure, and sustainable world.
Stuttgart, March 30, 2023
DEKRA SEThe Executive Board

Zurkiewicz, Chairman

DEKRA Financial Report 2022

Linsenmaier32

Consolidated Financial Statements

Contents
33

Consolidated Statement of Comprehensive Income

34

Consolidated Balance Sheet

36

Consolidated Statement of Changes in Equity

37

Consolidated Statement of Cash Flows

39

Notes to the Consolidated Financial Statements

39
39
40
52
52
58
75
76
78
78
84
87
89
90
90

General information
Accounting principles
Recognition and measurement principles
Business combinations (company acquisitions)
Consolidated statement of comprehensive income
Consolidated Balance Sheet
Consolidated statements of cash flows
Other disclosures in the notes
Capital management
Additional information on financial instruments
Financial risk management
Related-party transactions
Information on the members of the Management Board and Supervisory Board
Subsequent events
Other disclosures

98

Independent auditor’s report

102

Report from the Chairman of the Supervisory Board

DEKRA Financial Report 2022

33

Consolidated Financial Statements

DEKRA SE
Consolidated Statement ofComprehensive Income for the2022 Financial Yearin € thousand
Revenue

Notes

2022

2021

5.1

3,796,536

3,534,817

Increase (prior year: decrease) in work in progress

1,110-9,762

Own work capitalized

9,698

11,155

Other operating income

5.2

47,141

43,191

Cost of materials

5.3-350,846-328,273

Personnel expenses

5.4-2,550,253-2,327,346

Other operating expenses

5.5-547,521-505,608

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

5.6-204,075-202,085

Profit/loss from financial assets measured at equity

5.7

-377

-324

Interest income

5.7

14,957

8,873

Interest expense

5.7-28,923-17,734

Other financial result

5.7-3,537-168

Financial result

5.7-17,880-9,353

183,910

206,736

Earnings before taxes
Taxes on income

5.8-57,471-65,283

Net income for the year

5.9

126,439

141,453

thereof attributable to owners of DEKRA SE

6.12

123,841

140,223

thereof attributable to non-controlling interests

6.13

2,598

1,230

6.16

20

39

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

5.8

-7

-12

5.9

-6,674

15,588-6,661

15,615

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

6.14

214,60278,460equity instruments measured at fair value through othercomprehensive income

6.5-6,922406

deferred taxes recognized through other comprehensive
income5.8-63,903-23,536

Items that will not be reclassified subsequently to profit
or loss

143,777

55,330

Other comprehensive income

137,116

70,945

Total comprehensive income

263,555

212,398

260,957

211,168

2,598

1,230

thereof attributable to:owners of DEKRA SE
non-controlling interests

DEKRA Financial Report 2022

34

Consolidated Financial Statements

DEKRA SE
Consolidated Balance Sheetas of December 31, 2022
Assetsin € thousand

Notes

Dec. 31, 2022

Dec. 31, 2021

6.1/6.2

767,400

744,4038.1

400,024

369,903

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

6.3

484,319

448,943

Financial assets measured at equity

6.4

18,317

18,239Other non-current financial assets

6.5

78,07094,414

Other non-current assets

6.6

9,474

10,308Deferred income tax assets

5.8

90,860

153,563

1,848,464

1,839,773

10,8198,903

Current assets
Inventories

6.7

Contract assets

6.8

70,45962,644

Trade receivables

6.8

550,918

467,412

Other current financial assets

6.9

139,217

158,423

Other current assets

6.10

43,83440,885Current income tax receivables

5.8

12,111

6,664

Cash and cash equivalents

6.11

Total assets

DEKRA Financial Report 2022

136,529

226,626

963,887

971,557

2,812,351

2,811,330

35

Consolidated Financial Statements

Equity and liabilitiesin € thousand

Notes

Dec. 31, 2022

Dec. 31, 2021

Subscribed capital

6.12

25,56525,565

Capital reserve

6.12

630,529

620,529

EquityRevenue reserves

6.12

605,078

552,368

Accumulated other comprehensive income

6.12-124,076-270,929

1,137,096

927,533

Total equity of the ownerNon-controlling interests

6.13

16,367

15,2901,153,463

942,823

199,578

436,951

Liabilities
Non-current liabilities
Provisions for pensions and similar obligations

6.14

Other non-current provisions

6.15

27,15926,433

Non-current financial liabilities

6.16

404,527

441,488

Other non-current liabilities

6.18

1,247

1,651

Deferred income tax liabilities

5.8

24,89922,539657,410929,062

6.15

25,413

27,765Current liabilities
Other current provisions
Trade payables

6.17

133,900

107,772

Contract liabilities

6.17

55,872

56,466

Current financial liabilities

6.16

352,762344,271

Other current liabilities

6.18

428,744396,461

Current income tax liabilities

5.8

4,787

6,710

1,001,478

939,445

Total liabilities

1,658,888

1,868,507

Total equity and liabilities

2,812,351

2,811,330

DEKRA Financial Report 2022

36

Consolidated Financial Statements

DEKRA SE
Consolidated Statement of Changes in Equity 2022
Accumulated other comprehensive incomein € thousand
As of Dec. 31, 2020

Subscribed capital

Capital reserve

Revenue reserves

25,565

610,529504,571

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-23,387

19,251-40

EquityRemeasurementof defined-benefit
pension plans

Total equityof owners

Non-controllinginterests-340,882

795,607

12,899808,506-89,488-152-89,640-89,488

Capital increase

10,00010,000

Other changes

0Changes to the consolidated group253

Acquisition of non-controlling interests

Consolidated net income for the year

As of Dec. 31, 2021

2,931

140,223

-10
0

1,230

141,453

15,588406

2754,92470,9450140,223

15,588406

2754,924

211,168

1,230

212,398

25,565620,529552,368-7,546

22,588-13-285,958

927,533

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

Capital increase

10,0000Changes to the consolidated group284

Disposal of equity instruments measured at fair value
through other comprehensive income-9,737

Consolidated net income for the year

70,945

10,000

Other changes

9,737

123,841

Other comprehensive income for the period

As of Dec. 31, 2022

-30Profit/loss transfer agreement/dividend distribution

Total comprehensive income

1,316
253

0

140,223

Other comprehensive income for the period
Total comprehensive income-7-2,931

10,000
1,316

253

-7

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

Group equity

10,000
-569

-569

284

284

0

0

123,841

2,598

126,439-6,674-6,922

13

150,699

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

13

150,699

260,957

2,598

263,555

25,565630,529605,078-14,220

25,4030-135,259

1,137,096

16,367

1,153,463

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

DEKRA Financial Report 2022

137,116

37

Consolidated Financial Statements

DEKRA SE
Consolidated Statement of Cash Flows
Operating activitiesin € thousand

Notes

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

5.7/6.1/6.3/8.1

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

2022

2021

126,439

141,453

209,717

202,346-4,129

-508

-499

4,930

61,30365,283-21,226-18,817

4,940

5,997

-88,483-5,65560,433

20,039

377

324

9,754

3,478

Taxes paid

-75,358-52,445

Tax refunds

844

589

Interest income/expenses and dividends
Tax expense

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 associates

5.7Interest received

Dividends received

5.7

2,167

370

286,279

367,384

Notes

2022

2021

Cash flow from operating activities

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

6.1/6.3-143,230-106,553

6.5/6.6/6.9-25,793-50,397

7-6,948-43,217

6.1/6.3

10,1175,915

6.5/6.6/6.9

11,546

16,256

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 2022

0

2,957

-154,308-175,039

38

Consolidated Financial Statements

Financing activitiesin € thousand

Notes

2022

2021

6.12

10,00010,000Cash paid to shareholders and non-controlling interestsfrom profit transfers/dividends-90,441-35,014 *Cash received/paid relating to loans to shareholders

53,947

5,743 *

-104,687-47,756

Cash received from equity contributions from theshareholder

Cash for repayments of loans

6.16

Cash from loan borrowings

6.16

29,80744,371

Cash for repayments of lease liabilities-111,122-103,658

Interest paid

-11,322-8,242

Cash flow from financing activities-223,818-134,556

2022

2021

-91,847

57,789

1,750

1,365

* Prior-year figures corrected

Cash funds (cash and cash equivalents)in € thousand

Notes

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

226,626

167,472

Cash funds (cash and cash equivalents) at the end of
the financial year

6.11

136,529

226,626

DEKRA Financial Report 2022

39

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

Notes to the Consolidated Financial
Statements of DEKRA SE, Stuttgart,
for the 2022 Financial Year
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, Product Testing, Industrial Inspection, Advisory & Training Services,
and Temp Work.
The consolidated financial statements as of December 31, 2022 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, 2022 on March 30, 2023, 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�in German: Bundesanzeiger�. The prior-year financial statements and management report were published in 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 Sec. 315e (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 of 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 2022

40

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 2022 financial year in accordance 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 16: Proceeds before Intended Use;
January 1, 2022

No material impact

Amendment to IAS 37: Onerous Contracts – Cost of Fulfilling a Contract;
January 1, 2022

No material impact

Amendment to IFRS 1: Subsidiary as a First-time Adopter;
January 1, 2022

No material impact

Amendment to IFRS 3: Reference to the Conceptual Framework;
January 1, 2022

No material impact

Amendment to IAS 41: Taxation in Fair Value Measurements;
January 1, 2022

No impact

Amendment to IFRS 9: Fees in the “10%” Test for Derecognition of Financial Liabilities; No material impact
January 1, 2022
Amendment to IFRS 16: Amendment of illustrative Example 13 accompanying IFRS 16; No impact
January 1, 2022

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, 2022. There are no plans to a
­ doptthese 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 SEIFRS 17: Insurance Contracts;
January 1, 2023

Yes

No impact

Amendments to IAS 1: Classification of Liabilities
as Current or Non-current; Change from “significant”
to “material”;
January 1, 2024

Yes

No impact

Amendment to IAS 8: Definition of Accounting
Estimates;
January 1, 2023

Yes

No impact

Amendment to IAS 12: Mandatory recognitionof deferred taxes for transactions that give rise totemporary differences of the same amount upon
first-time recognition that are to be taxed and are
deductible;
January 1, 2023

Yes

No material impact

Amendments to IFRS 10 and IAS 28: Sale orContribution of Assets between an Investor and its
Associate or Joint Venture;n/aNo

No material impact

DEKRA Financial Report 2022

41

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.
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 of two
German (prior year: two) companies and two foreign (prior year: two) 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 each yearby 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 Group and for the presentation of a true and fair view of the results of operations, financial position, and net assets have generally been included in the consolidated financial statements at fair value.
Furthermore, the investment shares of individual companies are recognized at acquisition cost, taking
into consideration any impairment losses and reversals of impairment losses. These companies areindividually and jointly of immaterial significance.
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 generally recognized at their proportionate share of the identifiable net assets
measured at fair value.
As of December 31, 2022, 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, 2022 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 German (prior year: 22) and 130 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).
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.

DEKRA Financial Report 2022

42

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

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 of material companies denominated in foreign currencies.
1 euro =Rate as ofbalance sheet date
Dec. 31, 2022 Dec. 31, 2021

Annual averageexchange rate
2022

2021

Brazilian real (BRL)

5.63866.31015.44006.3814

Czech koruna (CZK)

24.1160

24.8580

24.560225.6468

Chinese renminbi (CNY)7.3582

7.19477.0801

7.6340Danish krone (DKK)

7.43657.43647.43967.4371Pound sterling (GBP)

0.88690.84020.85260.8600

Croatian kuna (HRK)

7.53657.51567.53507.5291

Hungarian forint (HUF)

400.8700

369.1900

390.9442

358.4625

Moroccan dirham (MAD)11.1533

10.5352

10.5845

10.5437

New Zealand dollar (NZD)

1.67981.65791.65851.6725Hong Kong dollar (HKD)

8.31638.83338.2512

9.1988Polish zloty (PLN)

4.68084.59694.68454.5640Swedish krona (SEK)11.1218

10.250310.6024

10.1449

US dollar (USD)

1.0666

1.1326

1.05391.1835South African rand (ZAR)

18.0986

18.0625

17.209717.4795

Taiwan dollar (TWD)

32.720831.4777

31.3373

33.0382

Swiss franc (CHF)

0.98471.03311.0052

1.0814

Japanese yen (JPY)140.6600

130.3800

138.0050

129.8575

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 as well as derivative financial instruments designated as part of an effective hedge. In the DEKRA
Group, this primarily includes shareholding investments in non-consolidated subsidiaries, securities,
obligations from options, and contingent purchase price components. Furthermore, pensions andsimilar obligations are excluded from measurement at fair value.

DEKRA Financial Report 2022

43

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

Differentiation between current and non-current

Assets and liabilities that 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 areclassified 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 a company acquisition is calculated as the sum of the consideration transferred, which is measured at fair valueon 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 equity is not remeasured and the settlement at a later date is recorded under equity. A contingent consideration that is classified as an asset or liability in the form of afinancial instrument falling within the scope of application of IFRS 9 Financial Instruments is measured
at fair value through profit or loss, pursuant to IFRS 9. All remaining contingent considerations that do
not fall within the scope of application of IFRS 9 are measured at fair value through profit or loss oneach balance sheet date.
The amount by which the purchase price of a company acquisition exceeds the fair value of the­indi­vidually identifiable acquired net assets is recognized as goodwill. Acquisition-related costs arerecognized through profit or loss.
According to IAS 38, goodwill arising from capital consolidation is not amortized systematically, but issubject to impairment testing once a year or more frequently if events or changes indicate that thevalue 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, please refer tothe 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 recorded 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 current­expenses and were immaterial in the past financial year.
The useful lives of all intangible assets are classified as finite and they average between four and sevenyears for concessions, industrial property rights, and similar rights and assets, between five and elevenyears for internally generated intangible assets, and between three and eight years for other intangible
assets. For purchase price allocations, the useful lives of trademarks or customer bases amounting to
between ten and fifteen years were utilized. Systematic amortization is performed using the straightline method. Where necessary, impairment losses are recognized, and then reversed if the reasons forthe impairment cease to apply at a later date. Impairment losses are recognized under amortizationand depreciation. For further explanations on the topic of impairment losses, please refer to the section
headed “Impairment losses and reversals of impairment losses.”

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Consolidated Financial Statements › Notes to the Consolidated Financial Statements

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 below 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 ten years, and otherequipment, 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 disposal of
assets are determined as the difference between the net disposal proceeds and the carrying amount of
the asset and are recognized in the statement of comprehensive income under other operating income
or other operating expenses.
Pursuant to the revised IAS 23, borrowing costs are capitalized only if they are incurred for the financing of the acquisition, construction or production of a qualifying asset. A qualifying asset is an asset
that necessarily takes a substantial period of time to get ready for its intended use or sale.

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 doing so, non-lease components are separated
from lease components.
At the commencement date of the 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 index-linked, as well as the cost of exercising a reasonably certain purchase
option, any penalty payments from a reasonably certain termination option, and payments expected by
the Group arising from residual value guarantees. The measurement of the lease liability also takes into
account lease payments based on a reasonably certain extension option. Variable lease payments thatare not linked to an index or (interest) rate are recognized as expenses in the period in which the eventor condition that triggers the payment occurs. For calculating the present value of lease payments, theGroup 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 leaseliabilities is increased to factor in the higher interest expenses and decreased to factor in the lease payments made. Moreover, the carrying amount of the lease liabilities is remeasured if there are changes
in the lease agreement, in the duration of the lease agreement, in the lease payments (e.g., changes infuture lease payments because of a change in the index or interest rate applied to the payment), or if
there are changes in the assessment of a purchase option for the underlying 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 anylease 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.

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Consolidated Financial Statements › Notes to the Consolidated Financial Statements

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 whichthe ­underlying asset is of low value. The expense for such lease agreements is recognized under theheading of other operating expenses.
Leasing as a lessor
For some leases, the Group assumes the role of lessor. These leases have been classified as operatingleases. The Group applied IFRS 15 “Revenue from Contracts with Customers” in order to allocate thecontractually agreed consideration to the individual lease and non-lease components. The income fromoperating lease agreements is recognized under the heading of other operating income. Leases arisingfrom subletting contracts only exist to a very small extent.

Inventories

Inventories are generally 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

A financial instrument is a contract that simultaneously gives rise to a financial asset of one entity anda financial liability or equity instrument of another entity.
Financial assets are contractual rights to receive cash or other financial assets from another entity or
to exchange financial assets or liabilities with another entity under potentially favourable terms andconditions. They primarily consist of trade receivables, securities, and shares in subsidiaries, which are
not included in the consolidated financial statements for reasons of materiality. Moreover, loans to
non-consolidated subsidiaries and investee companies are included.
Financial liabilities comprise contractual obligations to deliver cash or other financial assets to anotherentity or to exchange financial assets or liabilities with another entity under potentially unfavourable
terms and conditions. These primarily include liabilities to banks and trade payables as well as otherfinancial 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 to realize the asset and settle the liability simultaneously.

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 whose objective is to hold financial assets in order to collectcontractual 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 and otherloans, trade receivables, cash and cash equivalents, receivables from affiliates, and other financial assets.

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Consolidated Financial Statements › Notes to the Consolidated Financial Statements

Financial assets at fair value through other comprehensive income
Debt instruments that, although they satisfy the cash flow criterion, are held in a business model forcollecting contractual cash flows and selling financial assets are classified as “at fair value throughother comprehensive 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
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. There is also the option for debt instruments to be allocated to this category upon initialrecognition in 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 after 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 derivatives, liabilities held for
trading, and when exercising the fair value option.
They are initially measured at fair value plus any directly attributable transaction costs. Subsequentremeasurement 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
Derivatives with negative market values must always be assigned to this category unless they arerecognized as part of an effective hedge. This category also includes all liabilities held for speculative
purposes and all contingent liabilities recognized by a purchaser in the context of a business combination pursuant to IFRS 3. Other liabilities can optionally be assigned to this category, in the same way as“financial assets measured at fair value through profit or loss.”
The measurement is the same as for “financial assets measured at fair value through profit or loss.”

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Consolidated Financial Statements › Notes to the Consolidated Financial Statements

In the DEKRA Group, liabilities from company acquisitions are allocated to this category.
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.”

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand, bank balances, and short-term deposits and arerecognized at nominal value, less any expected credit losses. Cash equivalents have a remaining duration term of up to three months, calculated from the date of acquisition. The expected credit losses arealso determined using the impairment model pursuant to IFRS 9. This is explained in more detail in thesection “Impairment losses and reversals of impairment losses pursuant to IFRS 9.”

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/income tax assets are measured at the amount expected to be paid to /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 such 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 carryforwards. Deferred tax assets are only considered to the extent that it is sufficiently probablethat 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 carryforwards are only recognized to the extent that it is probable that
future taxable profit will be available 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.

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Consolidated Financial Statements › Notes to the Consolidated Financial Statements

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 carrying amount to the recoverable amount. Impairment losses recognized in prior years must be­­reversed
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 Work unit.
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 allocateddirectly or indirectly on a reasonable and consistent basis to the cash-generating unit and that will
generate the 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 to goodwill and then allocated proportionately to theother 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.

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

Stage 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.

• Stage 2: Credit losses expected over the entire duration term – no impairment

to credit standing
Stage 2 comprises all instruments for which there has been a significant increase in credit risk as of
the reporting date 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 impairment. A
significant increase in credit risk is assumed if the past-due-date status is longer than 30 days.

• Stage 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 of the instrument are recognized as impairment
over its entire duration term. A past-due-date status of more than 90 days and also further indicationsof financial difficulties on the part of the debtor are taken to be objective evidence of impairment.

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Consolidated Financial Statements › Notes to the Consolidated Financial Statements

The assessment as to whether the credit risk of a financial asset has increased significantly is performedat 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 theexpected credit losses.
For receivables from credit balances at banks, loans, and other financial assets, the expected credit losses
pursuant to IFRS 9 are determined annually on the basis of probabilities of default derived from therespective rating of the contractual partners and from the loss ratio and the amount at risk of default.
The expected credit losses on bank balances are only adjusted if the change is of a material nature.
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.
A review as to whether there has been a significant increase in the credit risk is therefore not necessary.
Portfolio allowances for the expected credit losses are calculated on the basis of historical data adjusted
for supportable, forward-looking macroeconomic factors. For example, this involves analyzing andweighting GDP growth rates published by the OECD for the regions in which DEKRA operates.
A financial asset is derecognized if it is assumed, after thorough analysis, that it can no longer be realized, for example after 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 future­increases 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 net debt or on the net asset value arises as interest from thereporting period on the net debt or on the net asset value. 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 the 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, based on a best estimate, to cover
all present obligations as of the reporting date. Future events that 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.

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Consolidated Financial Statements › Notes to the Consolidated Financial Statements

Contract liabilities

If a customer pays a consideration before the Group has transferred the goods or services, a contract­liability is recognized when the payment is made or is due. Contract liabilities are recognized as revenue
as soon as the Group has satisfied its contractual obligations.

Revenue recognition

DEKRA provides services in the Vehicle Inspection, Claims & Expertise, Product Testing, Industrial Inspection, Advisory & Training Services, and Temp Work Service Divisions and recognizes the associatedincome pursuant to IFRS 15 “Revenue from Contracts with Customers.” IFRS 15 provides for a uniform
principles-based five-step model for calculating revenue that must be applied to all contracts withcustomers.
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 performance obligation. The percentage of completion per contract to be recognized is calculated as the ratioof the actual costs incurred to overall anticipated costs of the project (cost-to-cost method). This is themost suitable method for DEKRA to measure progress. If the outcome of a service obligation to berendered over a time period is not reasonably certain but DEKRA expects nevertheless that it will at
least get its costs reimbursed by the customer, then the revenue is only recognized at an amountcorresponding to the contract costs incurred.
The transaction prices are essentially fixed prices. As a rule, the contracts with customers only containone performance obligation. 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 recognized as an expense immediately. 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 renders services, there are no returns of goods. Also, the granting of credit
to customers does not play a significant role.
DEKRA performs “revenue recognition at a point in time” in all of its Service Divisions. In the case of thistype of revenue recognition, revenue is recognized when DEKRA has rendered the service. “Revenue
recognition over time” is notably performed in the Product Testing, Industrial Inspection, and Training
Service Divisions.
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 other operating
income. Grants for assets are deducted from the carrying amount of the relevant asset and recognizedin 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 that 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 non-current assets,
the recoverability of goodwill and other intangible assets, the recoverability of receivables and theadequate 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
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Consolidated Financial Statements › Notes to the Consolidated Financial Statements

in note 6 on 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 is reasonably certain that the Group will not make useof this option.
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 incircumstances that 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 orsignificant customization of the leased asset).
The duration term of lease agreements generally corresponds to the contractual term. Because openended contracts do not have a contractually fixed duration term, the cluster term is used in this case.
The cluster term is the term that contracts in the same cluster generally have. A cluster is a group oflease agreements for similar underlying assets. DEKRA categorizes lease agreements into the following
clusters: IT, buildings, vehicles, technical equipment, other equipment, furniture, and fixtures. The cluster
term was determined for the financial year and is based on past experience. Also for termination andextension options, the cluster term is determined as the term of the lease, provided that the cluster duration term is greater than the contractual term. 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.
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, based onmarket developments and on assumptions about economic development, and an estimate of increases
in personnel costs, the growth rates, and the weighted average cost of capital. Even if the parameters
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 on 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 fair value. Because
estimates have to be performed, as described in this paragraph, for the calculation of the fair value andno 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” – LGD). DEKRA makes these assumptions based on past experience,existing market conditions and estimates about the future as of the end of the reporting period.
Selecting the method to determine the degree of completion of customer contracts requires judgement and depends on the type of service concerned. To determine the stage of completion for therespective contract, the cost-to-cost method is generally used as the ratio of costs incurred to thetotal costs calculated.
The defined-benefit pension obligations and the pension benefit payments of the subsequent year are
determined based on actuarial parameters such as interest rate, future salary and pension trends, andage. 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.

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Consolidated Financial Statements › Notes to the Consolidated Financial Statements

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
differ from the estimates. These are then adjusted in other comprehensive income or through profit orloss, depending on how they were initially recognized.

4 Business combinations (company acquisitions)
Presentation of significant company acquisitions in the financial year

No significant company acquisitions occurred in the 2022 financial year. Furthermore, no company
acquisitions occurred that are jointly of significance.

Presentation of significant business combinations in the prior year

In 2021, the acquisition of Centro Misure Compatibilità S.r.l., Italy, was significant. This company acquisition gave rise to goodwill of 4.9 million euros.
With effect from May 1, 2021, Centro Misure Compatibilità S.r.l. was included in the consolidated
financial statements and was merged with DEKRA Testing and Certification S.r.l., Italy, with effect from
October 1, 2022. In the period from January 1, 2022 through to September 30, 2022, the company
contributed 10.5 million euros (prior year: 2.3 million euros) to Group revenues.

5 Consolidated statement of comprehensive income
The statement of comprehensive income has been prepared using total costs method. Income and­expenses 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 revenue
Revenue is broken down by Region and Service Division. The revenue results from ordinary businessactivities.

Revenue by regionin € thousand
Germany

2022

2021

2,358,469

2,145,742

South-West Europe

544,346

551,077

North-West Europe

365,189355,830

APAC

244,301

221,179

Central East Europe & Middle East

170,662

166,231

Americas

DEKRA Financial Report 2022

113,569

94,7583,796,536

3,534,817

53

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

Revenue by Service Divisionin € thousand

2022

2021

Vehicle Inspection

1,308,340

1,217,736

Industrial Inspection

555,880

555,022

Claims & Expertise

514,590

483,406

Temp Work539,244438,471

Product Testing

317,848

296,254

Advisory & Training Services

410,710403,197

Audit

108,834

99,891

Other

41,09040,8403,796,536

3,534,817

In the financial year, the former Service Divisions “Training” and “Consulting” were combined into the
new “Advisory & Training Services” division. The disclosures of the previous year have been adjusted
accordingly.
Gross revenue also includes revenue (over time) from service contracts not yet billed at year-end
amounting to 63,278 thousand euros (prior year: 59,392 thousand euros), recognized proportionately
over the period in which the service is rendered. Out of that amount, a sum of 38,588 thousand euros(prior year: 36,208 thousand euros) was generated in the Product Testing Service Division.
In the 2022 financial year, revenue was generated as follows:
Revenue was realized as follows in the financial year:in € thousand

2022

2021

Amounts recorded under contract liabilities at the beginning of the period

55,12941,557

Performance obligations fulfilled in earlier periods

4,251

6,354

59,38047,911DEKRA’s performance obligations are generally satisfied when the service has been rendered (e.g.,training, consulting) or completed (e.g., vehicle inspection, product testing).
At DEKRA, the terms of payment differ according to region and service. Across the Group, the terms of
payment generally range between 10 and 60 days and do not contain any significant financing components.
For customer contracts that have an original expected duration of more than one year or performanceobligations not recognized in accordance with IFRS 15.B16, the transaction price for the remaining­unfulfilled or partially unfulfilled performance obligations can be broken down as of December 31, 2022
as follows:in € thousand

2022

2021

Within one year

5,958

6,557

More than one year

2,250

1,884

8,208

8,441

DEKRA Financial Report 2022

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Consolidated Financial Statements › Notes to the Consolidated Financial Statements

5.2 Other operating income
Other operating income amounts to 47.1 million euros in the financial year (prior year: 43.2 million
euros). This contains exchange rate gains of 6.0 million euros (prior year: 2.4 million euros). It also
includes income from the disposal of tangible assets amounting to 5.0 million euros (prior year:
2.7 million euros) and government grants totaling 3.3 million euros (prior year: 7.2 million euros), whichmainly took the form of integration aid and payroll subsidies. Furthermore, there was also off-period
income of 3.1 million euros (prior year: 2.2 million euros) and income from damage compensation
amounting to 2.4 million euros (prior year: 2.0 million euros).

5.3 Cost of materials
The cost of materials breaks down as follows:in € thousand

2022

2021

Cost of purchased services

314,436

290,871

Cost of purchased merchandise

36,41037,402350,846

328,273

2022

2021

5.4 Personnel expenses
in € thousand
Wages and salaries

2,113,679

1,921,032

Social security costs (excl. pension insurance premiums)

285,155

253,585

Pension costs

151,419

152,7292,550,253

2,327,346

Pension costs also include employer contributions to the statutory pension insurance fund amounting
to 117.8 million euros (prior year: 109.7 million euros). The majority of the Group’s workforce a­ resalaried employees.
The Group’s employees are distributed as follows (annual average):
2022

2021

Germany

23,52722,936South-West Europe

7,918

8,037

Central East Europe & Middle East

4,549

4,105

APAC

3,655

3,526

North-West Europe

3,318

3,186

Americas

1,137

790

Central units

645

671

Service Divisions

324

282

45,07343,533

DEKRA Financial Report 2022

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Consolidated Financial Statements › Notes to the Consolidated Financial Statements

5.5 Other operating expenses
Other operating expenses amount to 547.5 million euros (prior year: 505.6 million euros) and mainly
include IT and telephone costs of 104.3 million euros (prior year: 99.8 million euros), travel expenses of
99.8 million euros (prior year: 86.0 million euros), administrative expenses of 99.5 million euros (prioryear: 89.3 million euros), rent and building costs of 68.4 million euros (prior year: 63.5 million euros), as
well as other personnel expenses of 46.9 million euros (prior year: 38.8 million euros). There were impairment losses of 1.4 million euros (prior year: 5.4 million euros) included under the heading of “otheroperating expenses.” These constitute a netted item, whereby income of 6.4 million euros (prior year:
6.4 million euros) is netted with expenses of 7.8 million euros (prior year: 11.8 million euros). Other
operating expenses also contain exchange rate losses of 6.0 million euros (prior year: 2.7 million euros).

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

5.7 Financial result
The financial result breaks down as follows:in € thousand

2022

2021

Investment results from companies accounted for using
the equity method

-377

-324

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

94

370

Other investment results

2,350

28

Expenses from investments and shares in affiliates-5,766

-261

-260

33

45

-338

-3,537-168

Result from securities
Result from loans
Other financial result
Interest and similar income

14,957

8,873

Interest and similar expenses-28,923-17,734

thereof, interest expenses from financial instruments
measured at amortized cost

-7,541-6,082

thereof, interest expense from unwinding discount onlease liabilities-5,200-5,209thereof, expense from changes in market value-6,307-22

thereof, interest expense from provisions for thephased retirement scheme

-4

-17

thereof, net funding balance from obligations forphased retirement scheme

-9

149

-5,145-3,833

thereof, net funding balance from pension provisions-4,717-2,720Interest result

thereof, other interest and similar expenses-13,966-8,861

Financial result-17,880-9,353

DEKRA Financial Report 2022

56

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

The investment result from companies accounted for using the equity method, which amounts to-377 thousand euros (prior year: -324 thousand euros), largely relates to the receipt of proportionate
shares in the profits/losses at FSD Fahrzeugsystemdaten GmbH, Dresden/Germany and Spearhead AG,
Dietlikon/Switzerland.
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 the market evaluation of
securities amounting to 6,450 thousand euros (prior year: 690 thousand euros) and foreign currency
valuations amounting to 5,106 thousand euros (prior year: 3,373 thousand euros). Furthermore, it also
includes interest income of 2,972 thousand euros (prior year: 2,624 thousand euros) from loans issued
and from receivables. Expenses from the increase in liabilities arising from put and call options in connection with the subsidiaries acquired in prior years had an impact of -6,307 thousand euros(prior year: income of 2,022 thousand euros) on interest and similar expenses.
The net funding balance from pension provisions is derived from interest expenses of 13,049 thousand
euros (prior year: 8,280 thousand euros) arising from pension obligations, less the return on plan
assets of 7,904 thousand euros (prior year: 4,447 thousand euros).

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 35.1 million euros (prior year: 40.5 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 from/liabilities to affiliated companies.
in € thousand

2022

2021

Current taxes

57,16567,196

2,393-1,335

Deferred taxes
Temporary differences
Tax loss carryforwards-2,087-578

57,471

65,283Current tax expenses contain off-period tax of -689 thousand euros (prior year: -688 thousand euros).
As of the reporting date, the DEKRA Group stated a total 37,584 thousand euros (prior year:
28,777 thousand euros) of unused tax loss carryforwards, which resulted in deferred tax assets of
9,763 thousand euros (prior year: 7,646 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 305 thousand euros (prior year:
1,313 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.

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Consolidated Financial Statements › Notes to the Consolidated Financial Statements

The deferred taxes as of December 31, 2022 break down as follows:in € thousand

Deferred tax assets

Deferred tax liabilities

Dec. 31, 2022 Dec. 31, 2021 Dec. 31, 2022 Dec. 31, 2021
Non-current assets
Right-of-use assets – leasing

0072,12071,131

Plan assets/employers' pension liability insurance

105,758

96,3270

0

Other non-current assets

10,3105,788

28,082

26,315

4,219

4,913

5,580

4,583

Lease liabilities

55,322

55,68800Pension provisions/plan assets

165,755

233,584

199,465

191,581

Current assets
Non-current liabilities

577

1,901

1,369

1,274

Current liabilities

Other non-current liabilities

20,96520,303

92

242

Deferred taxes on temporary measurement differences

362,906

418,504

306,708

295,126

Deferred taxes on tax loss carryforwards

9,763

7,646

0

0

Total deferred taxes

372,669

426,150

306,708

295,126

Offsetting at tax group level-281,809-272,587-281,809-272,587

Balance sheet disclosure

90,860

153,563

24,89922,539The 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%.
in € thousand

2022

2021

Consolidated earnings before tax

183,910

206,736

Expected tax expense (30.525%)

56,13963,106

Losses for which no deferred taxes were recognized

2,129

1,753

Differences from foreign tax rates-3,588-2,021

Tax-free income

-996

-715

Non-deductible expenses

5,867

6,592

Off-period tax items-2,093-3,55313

121

57,471

65,283

Other 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 of 50,801 thousand euros(prior year: 43,822 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 63,909 thousand euros (prior year: -23,548 thousand euros) was reported through other comprehensive income. There were also changes in the deferred taxes from first-time consolidations as well asfrom currency translation effects.
The rise in current income tax receivables largely results from first-time consolidations.

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58

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

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 consoli­
dated 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 0.3 million euros (prior year: 0.9 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 35.1 million euros (prior year: 40.5 million euros) has
been offset against receivables from affiliates.

5.9 Other comprehensive income
The consolidated net income for the year pursuant to IFRS stands at 126.4 million euros (prior year:
141.5 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 214.6 million euros (prior year: 78.5 million euros), less associated deferred taxes of-63.9 million euros (prior year: -23.5 million euros), and also include the change in the fair valueof equity instruments measured at fair value through other comprehensive income amounting to-6.9 million euros (prior year: 0.4 million euros).
Furthermore, there is also an amount of -6.7 million euros in losses from the foreign currency translation of subsidiaries’ financial statements that are denominated in foreign currencies, which is recognized through other comprehensive income (prior year: income of 15.6 million euros). The effects offoreign currency translation primarily relate to the conversion of the Swedish krona, the US dollar, andthe Taiwan dollar. Under certain circumstances, this item will be reclassified to the income statementin 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 2,049 thousand euros (prior year: 1,269 thousand euros) wererecognized for software developments in the reporting year.
In the financial year, impairment losses of 90 thousand euros (prior year: 5,669 thousand euros) wererecognized for IT projects on account of the changed general framework conditions.

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59

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

Intangible assets

Other
intangible assets

Internallygeneratedintangible assets

Payments on
account andintangible assets
underdevelopment

193,906

224,458

47,25523,0681,093,985

Concessions,industrial property
rights, and similar
Goodwillrights and assets

Total

Purchase/manufacturing cost
As of Jan. 1, 2021

605,298

Exchange difference on opening
balance

10,648

249

2,495

362

12

13,766

25

217

188

93

22

545

Exchange difference in current year
Additions
Additions to the consolidated group
Disposals
Reclassifications

0

7,066

2,914

1,269

21,36432,613

10,050

0

3,695

0

0

13,745-143-2,372-8,797-9,722-860-21,894

0

3,761

4

12,114-16,348-469

As of Dec. 31, 2021/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

Exchange difference in current year

9

-26

-16

-53

1

-85

Additions0

10,944

3,463

2,049

23,81940,275Additions to the consolidated group

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

630,699

211,182

227,461

49,70843,3091,162,359

Amortization and impairment losses
As of Jan. 1, 2021

-361

-158,545-179,595-33,6220-372,123

Exchange difference on opening
balance

206-165-1,686-271

0-1,916

Reclassifications
As of Dec. 31, 2022

Exchange difference in current year

0

-217

-272

-71

0

-560

Additions0-14,204-12,240-7,154-774-34,372

Additions to the consolidated group

0

0

0

0

0

0

Disposals

0

2,257

8,690

9,451

685

21,083

Reclassifications

0

0

0

0

0

0

As of Dec. 31, 2021/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

Exchange difference in current year

0

12

95

55

0

162

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

9

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

Carrying amount as of Dec. 31, 2022

630,708

40,441

34,37918,67843,194

767,400

Carrying amounts as of Dec. 31, 2021

625,723

31,95339,854

19,704

27,169744,403

Carrying amount as of Jan. 1, 2021

604,937

35,361

44,863

13,63323,068721,862

DEKRA Financial Report 2022

60

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

6.2 Goodwill
Goodwill in the financial year contains 217.0 million euros (prior year: 215.9 million euros) relating to
the Germany CGU, 115.0 million euros (prior year: 113.5 million euros) to the South-West Europe CGU,
95.2 million euros (prior year: 95.3 million euros) to the North-West Europe CGU, 82.6 million euros (prioryear: 84.3 million euros) to the APAC CGU, and 64.9 million euros (prior year: 61.0 million euros) to theAmericas CGU. Moreover, 32.7 million euros (prior year: 32.5 million euros) relates to the Central East
Europe & Middle East CGU and 23.3 million euros (prior year: 23.2 million euros) to the Temp Work CGU.
Additions of 6.1 million euros (prior year: 10.1 million euros) to goodwill result from first-time consolidations and from asset deals that took place in 2022. Furthermore, goodwill decreased by 0.9 million euros (prior year: increase of 10.9 million euros) due to currency translation differences.
The recoverable amount of each cash-generating unit was determined using the value in use of therelevant unit. The cash flow forecast is based on the long-term planning adopted by the managementthat is applicable as of the time the impairment test is performed, which covers a planning horizon offive 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 taking into account estimated growth rates of 0.5% (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 8.2% (prior year: 6.1%). For the globally
operating Temp Work unit, a risk-adjusted interest rate before tax of 9.2% (prior year: 9.5%) was used.
A 10% decrease in the expected cash flows or a 1% increase in the discount rate underlying the­calculation of the value in use of the cash-generating unit would not, seen individually, result in any
impairment losses.
For more information, please refer to the explanations in the section of these notes describing­impairment losses.

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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, 2021

271,056

277,152

298,968

17,595

864,771

Exchange difference on opening
balance

2,095

6,407

3,369

1,066

12,937

Exchange difference in current year

-4

657

688

-158

1,183

Additions

6,550

27,86530,704

9,634

74,753

Additions to the consolidated group

1,050

891

68

0

2,009

Disposals-3,503-7,397-24,297-983-36,180

Reclassifications

1,347

1,846

5,900

-8,766327

278,591

307,421315,400

18,388919,800

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

Exchange difference in current year

-165

-653

-224

-245

-1,287

As of Dec. 31, 2021/Jan. 1, 2022

Additions

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

As of Dec. 31, 2022

290,425

324,943

346,772

29,704

991,844

Depreciation and impairment losses
As of Jan. 1, 2021

-79,849-157,212-190,292-5,373-432,726

Exchange difference on opening
balance-770-3,029-1,965-319-6,083

Exchange difference in current year

-48

-392

-226

5

-661

-8,083-25,283-29,154-2-62,522

Additions
Additions to the consolidated group

0

0

0

0

0

2,421

6,270

22,767031,458

37

255

-446

-169

-323

As of Dec. 31, 2021/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

Disposals
Reclassifications

Exchange difference in current year

77

398

159

0

634

-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

29

117

-870

0

-724

As of Dec. 31, 2022

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

Carrying amount as of Dec. 31, 2022

198,144

131,426

130,750

23,999484,319

Carrying amount as of Dec. 31, 2021

192,299

128,030

116,084

12,530448,943

Carrying amount as of Jan. 1, 2021

191,207

119,940

108,676

12,222432,045

Additions

Reclassifications

DEKRA Financial Report 2022

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Consolidated Financial Statements › Notes to the Consolidated Financial Statements

6.4 Financial assets measured at equity
The separate financial statements of the major entities that are measured at equity provide the fol­lowing financial information, which has not been adjusted to the investment share held by the Group:in € thousand

2022

2021

Aggregated non-current assets

50,11347,134Aggregated current assets

18,15522,222Aggregated non-current liabilities

4,010

3,781

Aggregated current liabilities

22,72423,784

Goodwill

3,250

3,250

in € thousand

2022

2021

33,84732,322-626-1,081

2022

2021

46,67556,176Aggregated revenue
Aggregated net income for the year

6.5 Other non-current financial assets
in € thousand
Shares in affiliates
Other shareholding investments
Loans to affiliates
Loans to associates
Other loans

576

1,291

10,461

14,263

0

3,397

114

65

Securities

17,797

16,492Sundry other non-current financial assets

2,447

2,730

78,07094,414For strategic reasons, in the financial year DEKRA sold shares in affiliated companies not included in the
consolidated financial statements, amounting to 537 thousand euros. In accordance with IFRS 9.B5.7.1,
an amount of -9,737 thousand euros out of the accumulated other comprehensive income arising fromequity instruments measured at fair value through other comprehensive income was reclassified torevenue 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 25.4 million
euros (prior year: 22.6 million euros). Of this, -6.9 million euros (prior year: +0.4 million euros) had anegative effect on other comprehensive income in the financial year. As of December 31, 2022, the fairvalue of the shares in affiliates not included in the consolidated financial statements breaks down by
region as follows:
Dec. 31, 2022

Dec. 31, 2021

Fair valuein € million Number of entities

Fair value spreadIn € million

Fair value
In € million Number of entities

Fair value spreadIn € million

RegionCentral East Europe & Middle East

37.4

36

0–6.6

36.2

37

0.0–5.5

North-West Europe

4.5

7

0–3.2

14.3

8

0.0–6.9

Americas

1.6

2

0–1.6

9.2

5

0.0–5.6

South-West Europe

13.1

6

0–8.5

8.7

7

0.0–2.3

Germany

3.4

2

0–3.4

4.6

3

0.1–2.6

APAC

1.0

2

0–1.0

0.0

2

0.0

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Consolidated Financial Statements › Notes to the Consolidated Financial Statements

Out of the fair value of 61.0 million euros (prior year: 73.0 million euros), 46.7 million euros (prior year:
56.2 million euros) relates to shares in affiliated companies, 10.5 million euros (prior year: 14.3 million
euros) to long-term (non-current) loans, and 3.8 million euros (prior year: 2.5 million euros) to shortterm (current) loans to affiliated companies.
Under the heading of securities, changes of -2,545 thousand euros (net) were made to fair values(prior year: 722 thousand euros). The accumulated impairment losses relating to the securities amountto -1,351 thousand euros (prior year reversal of impairments: +1,194 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. 1-2,16200Additions-5,63200

Reversals

125

0

0

Reclassifications

-56

0

0

-7,72500Valuation allowances as of Dec. 31

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. 1-3,54900Additions

-120

0

0

Utilization

89

0

0

Reclassifications

1,418

0

0

Valuation allowances as of Dec. 31-2,1620

0

The risk provisioning for the other non-current financial assets amounts to -48 thousand euros(prior year: -52 thousand euros).

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

2022

2021

Reimbursement claims from employer’s pension liability
insurance

1,522

2,268

Other non-current assets

7,952

8,040

9,474

10,308The 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

2022

2021

Raw materials and supplies

1,920

1,514

Work in progress

3,842

3,298

Merchandise

5,057

4,091

10,8198,903

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 the 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 18,660 thousand euros out of the Group’s gross trade receivables is denominated in USD,
16,211 thousand euros in SEK, 13,908 thousand euros in RMB, and 9,907 thousand euros in MAD. Fromthe point of view of the reporting subsidiaries concerned here, these are largely receivables denominatedin their functional currency.
in € thousand

2022

2021

Contract assets – gross

72,55164,886

Valuation allowances on contract assets-2,092-2,242Contract assets

70,45962,644

Trade receivables – gross575,302491,516

Valuation allowances on trade receivables-24,384-24,104

Trade receivables

550,918

467,412621,377

530,056

Contract assets are recognized for unbilled services as of the reporting date. These services mainly relate
to the Product Testing, Industrial Inspection, and Audit Service Divisions. Amounts recognized u­ ndercontract assets are reclassified to trade receivables after defined invoicing dates or after the service has
been concluded and accepted by the customer. Any remaining 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

2022

2021

Not overdue –180 days overdue

546,947

456,951

Overdue between 181– 240 days

5,385

5,231

Overdue between 241– 360 days

4,202

5,980

More than 360 days overdue

DEKRA Financial Report 2022

18,76823,354575,302491,516

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Consolidated Financial Statements › Notes to the Consolidated Financial Statements

Valuation allowancesin € thousand

2022

2021

Not overdue –180 days overdue-5,889-4,849Overdue between 181– 240 days

-1,030-662

Overdue between 241– 360 days

-1,686-1,618More than 360 days overdue-15,779-16,975-24,384-24,104

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:in € thousand

2022

2021

-24,104-25,504-50-68

Allocations-8,389-6,235

Utilization

2,472

2,088

Reversals

5,687

5,615

-24,384-24,104

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 toapplying the simplified approach – are basically to be allocated to Level 2 of the impairment model
developed as follows:in € thousand

2022

2021

Valuation allowances as of Jan. 1-2,242-1,034

Allocations-769-1,327

Utilization

030

Reversals
Valuation allowances as of Dec. 31

919

89

-2,092-2,242The 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

2022

2021

Securities

25,96035,498

Receivables from affiliated companies and companies withwhich a shareholding relationship exists

23,847

41,588Sundry other financial assets

89,41081,337139,217

158,423

The decrease of 9,538 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 contain a totalof 93,929 thousand euros (prior year: 126,926 thousand euros) relating to liabilities from income tax
and VAT, profit transfers from DEKRA SE, and other allocations to the owner, which are offset against
108,443 thousand euros (prior year: 164,511 thousand euros) relating to receivables from the cash pool

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Consolidated Financial Statements › Notes to the Consolidated Financial Statements

and other allocations. The decrease is mainly due to the increase in liabilities from the profit/loss transfer and the liabilities from tax allocations. Other financial assets largely include reimbursement claims
from damage claim settlements of 45,915 thousand euros (prior year: 50,644 thousand euros).
The impairment losses on the other current financial assets that – due to applying the simplified­approach – are largely to be allocated to Level 1 of the impairment model developed as follows:in € thousand

2022

2021

Valuation allowances as of Jan. 1-9,172-5,415

Allocations-1,651-4,149

Utilization

2,338

130

Reversals

1,186

560

50

-298

-7,249-9,172

Reclassifications
Valuation allowances as of Dec. 31

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

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

2022

2021

Cash at banks

134,569

224,538

Cash on hand

1,731

1,503

229

585

136,529

226,626

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 630,529 thousand euros (prior year: 620,529 thousand euros) mainly includes
contributions from DEKRA e.V., Stuttgart. A contribution of 10,000 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 to the extent these have not been distributed or transferred. There isa profit and loss transfer agreement in place between DEKRA SE and the parent company. The profit
transfer is reported 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

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Consolidated Financial Statements › Notes to the Consolidated Financial Statements

is recorded in 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 of hedging instruments and equity instruments, the recognition of deferred taxes, and therecognition of differences arising from currency translation. The changes in fair value arising from themeasurement of equity instruments through other comprehensive income are reclassified to revenue
reserves when the equity instrument is derecognized.

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 on the most significant
entity with non-controlling interests (DEKRA iST Reliability Services Inc., Hsinchu, Taiwan). The figures
are the pre-intragroup elimination amounts.
in € thousand

2022

2021

Aggregated non-current assets

15,71013,015Aggregated current assets

5,127

4,969

Aggregated non-current liabilities

3,614

1,950

Aggregated current liabilities

5,078

4,770

in € thousand

2022

2021

Aggregated revenue

9,655

6,981

Aggregated net income for the year

1,201

736

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

2022

2021

Pension provisions in Germany

184,067

412,858

Pension provisions in other countries

15,511

24,093

199,578

436,951

The Group has both defined-benefit and defined-contribution plans for retirement, invalidity, andsurviving dependents’ 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 consolidated financial statements. The benefits are partly financed internally through the systematic accumulation of provisions and partly through contributions paid into employers’ pension liability insurance. The
direct and indirect commitments are defined-benefit obligations for which assets (among other things

DEKRA Financial Report 2022

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Consolidated Financial Statements › Notes to the Consolidated Financial Statements

through the conclusion of employers’ pension liability insurance policies) have been set aside within
DEKRA Unterstützungskasse e.V., Stuttgart. In addition, DEKRA implemented the establishment of aContractual Trust Arrangement (CTA), effective October 24, 2017, to safeguard the pension obligations
from these pension 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 and collateral trust). The funds transferred to finance the pension obligations are managed
in trust by Allianz Treuhand GmbH, Stuttgart, and are earmarked for use solely for the settlement ofpension obligations.
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, andthe 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.
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 particular company-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 accountthe expected continued increase in life expectancy by means of appropriate assumptions. When calculating the obligation, the inflation risk is adequately taken into account at 2.00% p.a. (prior year: 1.75%)
using a long-term approach and according to information currently available. It also primarily has aneffect on the review of current pensions. There is currently no knowledge of any employment-law-relatedrisks 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, 2021

Pension obligation

Plan assets (-)

Total

1,154,044-613,862

540,182

Current service cost

24,6390

24,639

Past service cost

3,463

0

3,463

Net interest cost (standard interest)

8,280-4,447

3,833

Net pension cost according to the income statement

36,382-4,44731,935

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

0-9,929-9,929

-521

0

-521

Actuarial gain/loss from changes in assumptions based on
experience-1,593-153-1,746

Actuarial gain/loss from changes in financial assumptions-66,1190-66,119

Change arising from asset ceiling unless contained in net
interest expense

-72

-73

-145

Remeasurement of defined-benefit pension plans-68,305-10,155-78,460

Payments of current pensions-35,20918,717-16,492

0

396

396

Employer contributions to the pension plan0-40,957-40,957

Employee contributions to the pension plan

7,328

-7,3262-27,881-29,170-57,051

394

-50

344

As of Dec. 31, 2021

1,094,634-657,683

436,951

thereof, funded

1,036,345

Actuarial gain/loss from changes in demographic
assumptions

Plan settlement payments

Total payments
Changes in the consolidated group

thereof, unfunded

DEKRA Financial Report 2022

58,289

70

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

032,15832,158

-516

0

-516

Actuarial gain/loss from changes in assumptions based on
experience-251,384143-251,241

Actuarial gain/loss from changes in financial assumptions

5,220

0

5,220

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

Actuarial gain/loss from changes in demographic
assumptions

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 13.64 years (prior year:
14.37 years).
The expected future pension payments for the coming five financial years are as follows:in € thousand
Expected pension benefit payments

2023

2024

2025

2026

2027

39,304

41,69742,92543,025

43,635

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 %

2022

2021

Interest rate

4.21

1.24

Salary trend

1.99

1.99

Pension trend

2.00

1.75

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, are immaterial.
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 as a result of 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, 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%

Impact on the benefit obligation as of Dec. 31, 2021
Change in assumptions

Increase in assumption Decrease in assumption

Interest rate

0.5%

Decrease of 6.8%

Increase of 4.6%

Salary trend

0.5%

Increase of 0.2%

Decrease of 1.6%

Pension trend

0.5%

Increase of 3.8%

Decrease of 6.2%Age

1 yearIncrease of 3.4%

Decrease of 6.2%

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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, 2022
active marketin € thousand

Dec. 31, 2021

thereof, market
price quoted on an
active market

Employer’s pension liability
insurance

442,2570430,2010

Securities

199,875

199,875

216,640

216,6408,780

010,8430650,912

199,875

657,684

216,640Other

The securities are largely specialized funds containing a mixture of pensions and shares. The funds inthis case mostly consist of pensions.
The employer contributions to plan assets are expected to amount to 17.7 million euros in the next financial year (prior year: 15.1 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 132.4 million euros in the reporting year (prior year: 122.7 million
euros). The future amount of these expenses essentially depends on the development of the under­
lying pension insurance systems.

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

As ofJan. 1, 2022

Allocation

Interest
effects

Utilization

Reversal

Reclassifications

As ofDec. 31, 2022

3,831

348

23

-170

-255

-136

3,641

135

0

-8

157

0

-136

148

thereof from phased retirement obligation

1,127

11

4

-388

0

0

754

thereof from phased retirement plan assets

-992

-11

-12

545

0

-136

-606

Provisions for employees' long-service awards

3,262

152

31

-325

0

0

3,120

434

196

0

-2

-255

0

373

Other non-personnel provisions

22,602

11,356-902-2,933-6,593-12

23,518

thereof, warranty provisions

4,088

5,520

-921

0

-4,3600

4,327

thereof, litigation, damages and similar
obligations

7,793

2,632

19

-1,048

-732

-12

8,652

thereof, other provisions

10,7213,204

0-1,885-1,5010

10,53926,433

11,704-879-3,103-6,848-148

27,159Sundry other personnel provisions

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, the employees are granted an anniversary
bonus paid after 10 years’ and 25 years’ service to the company. Allocations already begin to be madeto the provisions for anniversary bonuses upon the employee’s entry to the company. The anniversary­bonus provisions are therefore subject to continuous changes (allocations, utilization, and reversals).

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Consolidated Financial Statements › Notes to the Consolidated Financial Statements

Current provisions
As ofJan. 1, 2022

Allocation

Utilization

Reversal

Reclassifications

As ofDec. 31, 2022

Other personnel provisions

6,353

5,326

-2,134-3,8080

5,737

Other non-personnel provisions

21,412

7,459-6,164-3,043

12

19,676

100

0

0

0

0

100

Impending losses

1,311

544

-428

-392

0

1,035

Litigation, damages, and similar obligations

13,879

1,175

-345

-720

0

13,989Other provisions

6,122

5,740

-5,391-1,931

12

4,552

27,765

12,785-8,298-6,851

12

25,413in € thousand

Restructuring – other

In France, there are non-current obligations of 10,532 thousand euros (prior year: 9,914 thousand euros)
relating to warranties and similar obligations, the inherent risks of which exceed the insurance cover.
There are also non-current obligations based on country-specific levies. As in the prior year, non-current
provisions do not include any significant impact from unwinding discount.
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

2022

2021

Liabilities to banks

85,912

146,602

Lease liabilities

300,129

276,772

1

0

Other financial liabilities
Liabilities from company acquisitions

18,485

18,114

404,527

441,488

The increase of 23,357 thousand euros in non-current lease liabilities is mainly due to new lease agreements and the extension of existing agreements. Lease liabilities that had previously been recognized
as non-current were reclassified as current lease liabilities on account of their maturity. These are also
the reasons why current lease liabilities have increased by 6,944 thousand euros. The liabilities arisingfrom company acquisitions are largely contingent purchase price components.

Current financial liabilitiesin € thousand

2022

2021

Liabilities to banks

127,787

132,789

Profit participation rights

10,62911,733Financial liabilities to affiliated companies

33,81634,096

Financial liabilities to associated companies

1,002

962

0

20

111,340

104,396

216

1,135

44,81137,282Derivative financial instruments
Lease liabilities
Liabilities from company acquisitions
Liabilities to employees
Other financial liabilities

23,161

21,858352,762344,271

The decrease of 5,002 thousand euros in current bank liabilities is mainly due to the repayment of two
promissory note loans and the repayment of a bank loan.
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Consolidated Financial Statements › Notes to the Consolidated Financial Statements

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, 2,074,431 (prior year: 2,223,186) 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, andsales tax as well as other allocations, some of which were netted with receivables from affiliates.
The increase of 7,529 thousand euros in current liabilities to employees is mainly due to the larger
workforce in the financial year.

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

2022

2021

Trade payables

133,900

107,772

Contract liabilities

55,872

56,466

189,772

164,238

DEKRA receives payments from customers based on a settlement schedule that is an integral part of thecontracts. Contract assets relate to the conditional right to consideration for the complete fulfillment of
the contractual obligations. Receivables are recognized as soon as DEKRA fulfils 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 rendered.

6.18 Other non-current and current liabilities
Other non-current non-financial liabilities primarily include liabilities to the pension guarantee association.
Other current liabilities break down as follows:in € thousand

2022

2021

Personnel-related liabilities

287,774

266,198

Other liabilities for taxes

61,522

61,619Social security

30,79325,181

Prepayments received from damage claim settlements

15,982

15,425

Sundry other items

32,67328,038428,744396,461

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

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Consolidated Financial Statements › Notes to the Consolidated Financial Statements

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, investing, and financing activities. Cash flows 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 prior to the consideration of credit losses pur­suant to IFRS 9. 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 disposalof fully consolidated subsidiaries:in € thousand

2022

2021

0

-12,7070-12,7070

1,590

Non‑current assets

0

2,229

Current assets

0

2,638

Non-current liabilities

0377

Current liabilities

0358

Total purchase/sale pricethereof settled/received in cash
Amount of cash and cash equivalents acquired/disposed ofAmount of assets and liabilities acquired/disposed of

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 9,348 thousand euros (prior year: 32,100 thousand euros). As in the previous year, thesepurchases do not give rise to liabilities based on variable purchase price components.
The carrying amount of the receivables acquired in the previous year corresponded to the fair value.
The prior-year figures for the cash inflow from shareholder loans (-54.6 million euros) and for outgoingpayments to the shareholder resulting from profit transfer and to non-controlling interests (+54.6 million euros) were adjusted to allow true and fair representation under the heading of cash flow fromfinancing activities.
The development of liabilities stemming from financing activities is as follows:
Non-cash-effective changes
Carrying
amount Cash-effective
Dec. 31, 2021
changesin € thousand

Exchange
rate 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 2022

76

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

In the prior year, liabilities resulting from financing activities developed as follows:
Non-cash-effective changes
Carrying
amount Cash-effective
Dec. 31, 2020changesin € thousand

Exchange
rate effects

Acquisition ofcompanies

Changes infair value

Otherchanges

Carrying
amountDec. 31, 2021

0-40,729

146,602

Non-current loans

201,117-15,508

1,722

0Current loans

75,534

12,918

3,608

0

0

40,729132,789

59

0

0

0

-39

-20

0

276,710-2,590

5,330

0

-39

-20

279,391

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

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 1 and 5 years, for buildings between 1 and 30 years. For vehicles, the term is generally
between 1 and 6 years, for technical equipment between 3 and 7 years. Lease agreements for furniture,
fixtures, and equipment generally have terms between 1 and 10 years. The obligations under the leaseagreements are secured by the lessor’s title to the leased assets. Several lease agreements containextension and termination options.
The Group also concluded lease agreements for assets with a term of 12 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, 2021

317,858

30,4291,868

ITTechnical
equipment

Total

1,591

427

352,173

Depreciation expense-81,308-20,303

-626

-953

-2,000-105,191

Additions100,144

22,505

295

1,005

9,552

133,501

Disposals-12,060-1,791

-175

-1

0

-14,027

3,438

-15

17

6

0

3,446

As of Dec. 31, 2021

328,072

30,825

1,379

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

-3,120359,038

31,255

1,234

2,191

6,306

400,024

Exchange rate differences

As of Dec. 31, 2022

DEKRA Financial Report 2022

77

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

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

2022

2021

As of Jan .1

381,168

363,167

Additions

153,937

133,765

5,233

5,206

Payments and disposals-125,896-124,670

Exchange differences-2,9733,700

411,469

381,168

thereof current

111,340

104,396

thereof non-current

300,129

276,772

Interest growth

As of Dec. 31

The maturity analysis of lease liabilities is presented in note 10.
The following amounts were recognized through profit or loss in the reporting period:in € thousand

2022

2021

Interest expenses on lease liabilities-5,383-5,209

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

290

224

Expenses from short-term leases-21,838-23,433

Expenses from low-value leases-8,994-11,909

Total-35,925-40,327

The total cash outflows for leases amounted to 116,379 thousand euros in 2022 (prior year: 108,888 thousand euros). In addition, non-cash-effective additions to right-of-use assets of 152,235 thousand euros(prior year: 133,501 thousand euros) and lease liabilities of 153,937 thousand euros (prior year:
133,765 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 3,947 thousand euros (prioryear: 4,567 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
As in the prior year, there are no significant bank guarantees or contingencies. Collateral and guarantees amounting to 7,813 thousand euros (prior year: 925 thousand euros) have been granted. The riskof 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.

DEKRA Financial Report 2022

78

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

8.4 Government grants
Government grants of 3,442 thousand euros (prior year: 6,574 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 owned by
the Group in a legal and economic sense, except for assets capitalized in the context of finance leases.
Other assets contain a total of 1.5 million euros (prior year: 2.3 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.

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 bya contribution to the capital reserve of 10.0 million euros as well as an increase in the revenue reservesof 52.7 million euros. Differences from the currency translation of the financial statements prepared inforeign currencies by consolidated subsidiaries had a negative effect of 6.7 million euros on equity. The
DEKRA Group’s equity ratio stands at 41.0% as of the end of the reporting period (prior year: 33.5%).

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

2022

2021

Financial assets at amortized cost

-3,230-4,120Financial assets at fair value through other comprehensive
income367

370

Financial assets at fair value through profit or loss

6,626

2,909

Financial liabilities at amortized cost

-7,541-6,082Financial liabilities at fair value through profit or loss

-2,481

86-6,259-6,837The 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.
DEKRA Financial Report 2022

79

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

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 2.8 million euros in the 2022 financial year (prior year: increase of 3.3 million euros).
This amount was recognized in other comprehensive income. The levels of the fair value hierarchy andtheir 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 and theallocation of the financial assets and liabilities measured at fair value to the three levels of the fair value
hierarchy. The fair values of the assets and liabilities measured at amortized cost correspond to thecarrying amounts.

AssetsCarrying
amountDec. 31, 2022

Financialassets at
amortized cost

Financial assets
at fair value
through othercomprehensive
incomeShares 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

550,91800

in € thousand

Financial assets
at fair value
through profit
or loss

Non-current assets

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 2022

89,41089,41000826,664

800,704

1,249

24,711

904,734

813,726

48,53342,475

80

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

Assetsin € thousand

Fair value
Dec. 31, 2022

thereof, fairvalue level 1

thereof, fairvalue level 2

thereof, fairvalue level 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

65,015

n/a

n/a

n/a

n/a

Current assets
Trade receivables
Cash and cash equivalents

n/a

n/a

n/a

n/a

25,96025,96000Receivables 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

65,015Carrying
amountDec. 31, 2022

Financialliabilities atamortized cost

Financialliabilities at fairvalue throughother comprehensive income

Financialliabilities at fairvalue throughprofit or loss

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

Securities

Equity and liabilitiesin € thousand
Non-current liabilities

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 2022

81

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

Equity and liabilitiesin € thousand

Fair value
thereof,
thereof,
thereof,Dec. 31, 2022 fair value level 1 fair value level 2 fair value level 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

Current liabilities
Trade payables

0

0

0

0

Profit participation rights

Derivatives in hedge accounting

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. Reclassifications between the different levels of the valuation hierarchy
are performed at the end of the financial year.

AssetsCarrying
amountDec. 31, 2021

Financialliabilities atamortized cost

Financialliabilities at fairvalue throughother comprehensive income

Shares in affiliates and investee companies

57,467

057,4670

Securities

16,49200

16,492Loans

17,725

17,7250

0

Other financial assets

2,730

2,730

0

0

94,414

20,45557,467

16,492

Trade receivables

467,412467,41200in € thousand

Financialliabilities at fairvalue throughprofit or loss

Non-current assets

Current assets
Cash and cash equivalents

226,626

226,626

0

0Securities

35,4980035,498

Receivables from affiliates and investee
companies

41,58841,5880

0

Other financial assets

DEKRA Financial Report 2022

81,337

81,33700852,461

816,963035,498946,875

837,418

57,46751,99082

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

Assetin € thousand

Fair value
thereof,
thereof,
thereof,Dec. 31, 2021 fair value level 1 fair value level 2 fair value level 3

Non-current assets
Shares in affiliates and investee companies

57,4670057,467

Securities

16,4920

19

16,473

n/a

n/a

n/a

n/a

Loans
Other financial assets

n/a

n/a

n/a

n/a

73,9600

1973,940

n/a

n/a

n/a

n/a

Current assets
Trade receivables
Cash and cash equivalents

n/a

n/a

n/a

n/a

35,498783

34,7150Receivables from affiliates and investee
companies

n/a

n/a

n/a

n/a

Other financial assets

n/a

n/a

n/a

n/a

35,498783

34,715

0109,458783

34,73473,940Carrying
amountDec. 31, 2021

Financial liabilities at amortized cost

Financial liabilities at fair value
through othercomprehensive
incomeFinancialliabilities at fairvalue throughprofit or loss

Liabilities from company acquisitions

18,1140

0

18,114

Financial liabilities

146,602

146,602

0

0

Lease liabilities

276,772

0

0

0

0

0

0

0

441,488

146,6020

18,114

107,772

107,77200Securities

Equity and liabilitiesin € thousand
Non-current liabilities

Other non-current liabilities

Current liabilities
Trade payables

20

0

0

0

Profit participation rights

Derivatives in hedge accounting

11,733

11,73300Liabilities from company acquisitions

1,135

0

0

1,135

Liabilities to banks

132,789

132,78900Liabilities to affiliated companies

34,09634,096

0

0

962

962

0

0

Other current liabilities

Liabilities to associated companies

59,14059,1400

0

Lease liabilities

104,396000452,043

346,492

01,135

893,531493,094

0

19,249DEKRA Financial Report 2022

83

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

Equity and liabilitiesin € thousand

Fair value
thereof,
thereof,
thereof,Dec. 31, 2021 fair value level 1 fair value level 2 fair value level 3

Non-current liabilities
18,1140

0

18,114

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

18,1140

0

18,114

n/a

n/a

n/a

n/a

Current liabilities
Trade payables
Derivatives in hedge accounting

20

0

20

0

Profit participation rights

n/a

n/a

n/a

n/a

1,135

0

0

1,135

Liabilities from company acquisitions
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

1,155

0

20

1,135

19,2690

20

19,249* Pursuant to IFRS 7.29 (d) no fair values were stated for the lease liabilities.

Other current liabilities include liabilities to employees of 37,282 thousand euros pursuant to IAS 19.
These liabilities to employees pursuant to IAS 19 and the non-current and current lease liabilities of276,772 thousand euros and 104,396 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

2022

2021

As of Jan. 1

73,94034,615Additions

9,410

35,582

Disposals-19,763

1,493

1,428

2,250

Fair value changes
Recognized through profit or loss

-2,5440

Recognized through other comprehensive income

3,972

2,250

65,01573,940

As of Dec. 31

DEKRA Financial Report 2022

84

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

Equity and liabilitiesin € thousand

2022

2021

As of Jan. 1

19,24924,803

Additions

0184

Disposals-3,033-5,652

Fair value changes

2,485

-86

Recognized through profit or loss

2,731

-86

Recognized through other comprehensive income

-246

0

18,701

19,249As of Dec. 31

The evaluation of the securities measured at fair value through profit or loss is performed annually byan 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.
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 amount of the shares in affiliates and investee companies changes by -17.7%/+35.0%(prior year: -22.2%/+24.9%).
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.

11 Financial risk management
Principles of financial management

The Group’s financial management includes 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.
DEKRA Financial Report 2022

85

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

Market price risk management has the task oflimiting the impact of interest rate and currency fluctuations on the Group’s earnings. For this purpose, the market price risks are determined and used asa basis for hedging decisions. Such decisions include the selection of hedging instruments, the volume
to be 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 bank guarantees.
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 required for operations and for implementing strategic measures is ensured through theliquid 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 overnight money andtime 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 from the eurozone. Cashpools 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, 2022, 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, thepromissory note loans taken out, and by longer-term loan commitments. As of December 31, 2022,
there are medium-term credit lines of 413.8 million euros (prior year: 440.5 million euros) granted inwriting that have not yet been drawn.
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 break down as follows:
Dec. 31, 2022 in EUR’000< 1 year

Trade payables

133,900

00Liabilities to banks

132,11288,346694

Other financial liabilities

113,418

10

Derivative financial instruments (negative)
Lease liabilities

DEKRA Financial Report 2022

1 to 5 years> 5 years000111,340

219,916

101,232

490,770

308,263

101,926

86

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

Dec. 31, 2021 in EUR’000< 1 year

Trade payables

107,77200Liabilities to banks

140,505

139,542

507

Other financial liabilities

105,93000Derivative financial instruments (negative)
Lease liabilities

1 to 5 years> 5 years

20

0

0

104,396

214,989

85,673458,623354,531

86,180In addition to liabilities from (promissory note) loans, the liabilities to banks mostly include short- andmedium-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,
2022, 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.

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 lasting 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 a drop of
1,094 thousand euros in the interest result (prior year: rise of 5,163 thousand euros). A parallel downward shift of 100 basis points would lead to a rise of 1,214 thousand euros in the interest result (prioryear: drop of 3,524 thousand euros).
In order to hedge the interest risk inherent in promissory note loans, the Group concluded interest
derivatives (interest swaps) in the prior financial years. Thus, for the most part, the burden of intereston the loans is fixed.

DEKRA Financial Report 2022

87

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

Market risk – currency risks

Currency risks from operating activities are of immaterial significance because the local entities invoice
the services that they render 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. +/-4.2 million euros (prior year: +/-5.4 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 exchange rates are not expected to have amaterial 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, 2022, the Group had
a total of 42.5 million euros in financial assets measured at fair value through profit or loss (prior year:
52.0 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 7.8% in 2022 and 2.2% in 2021.

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 areto be viewed 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 2,034 thousand euros (prior year: 2,706 thousand euros).
Additionally, there were further expenses among other things, for pensions at DEKRA SE) of 683 thousand euros (prior year: 838 thousand euros) and obligations of 334 thousand euros (prior year:
815 thousand euros) vis-à-vis the board members.
This results in a total remuneration amount of 2,717 thousand euros (prior year: 3,544 thousand euros).
The total remunerations to former members of the Management Board amount to 460 thousand euros(prior year: 399 thousand euros). In addition, there are also pension obligations of 12,516 thousand
euros (prior year: 19,768 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 354 thousand euros (prior year: 286 thousand euros), of which a total of 354 thousand euros (prioryear: 286 thousand euros) is recognized as a liability as of balance sheet date.
Additionally, there were further expenses of 736 thousand euros (prior year: 719 thousand euros) andpension obligations of 570 thousand euros (prior year: 710 thousand euros) vis-à-vis the membersof this board.

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Consolidated Financial Statements › Notes to the Consolidated Financial Statements

Transactions with DEKRA e.V., Stuttgart

There are liabilities to DEKRA e.V., Stuttgart, as of December 31, 2022 amounting to 31.8 million euros(prior year: 32.2 million euros), mainly resulting from sales tax liabilities. There are still receivables of
13.2 million euros (prior year: 35.6 million euros) mainly arising from the cash pooling system, lessprofit/loss transfer.
Rent agreements exist between DEKRA e.V., Stuttgart, as the landlord and various companies of the
DEKRA Group as the tenant. In the 2022 financial year, the rent for the business premises amounted
to 21.0 million euros (prior year: 20.8 million euros). The receivables from, and liabilities to, DEKRA e.V.,
Stuttgart, give rise to interest income of 1.2 million euros (prior year: 1.5 million euros) and interest­expenses of 0.9 million euros (prior year: 0.3 million euros). Tax allocations for income taxes amounted
to 35.1 million euros (prior year: 40.5 million euros). In addition, services totaling 1.9 million euros(prior year: 1.7 million euros) were purchased from DEKRA e.V., Stuttgart.
Under a corporate lease agreement, activities are primarily performed in the field of German 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 Automobil GmbH, 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 orof the sales revenue is invoiced. In the 2022 financial year,, a total volume of 7.1 million euros (prioryear: 6.9 million euros) was charged to the DEKRA Group. DEKRA e.V., Stuttgart, recorded revenue ofthe same amount from this source.
In addition, the DEKRA Group rendered services of 10.7 million euros (prior year: 8.1 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

2022

2021

Services rendered

5.5

7.6

Services purchased

6.4

7.6

Financial income

2.8

0.2

Receivables and loans

17.4

20.1

Liabilities*

2.0

1.9

2022

2021

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

Associated companies and joint venturesin € million
Services rendered

0.3

0.4

Services purchased

11.8

13.0

Financial income

0.2

0.4

Receivables and loans

3.7

3.4

Liabilities

1.0

1.0

DEKRA Financial Report 2022

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Consolidated Financial Statements › Notes to the Consolidated Financial Statements

Investee companiesin € million

2022

2021

Services rendered

0.1

0.1

Services purchased

0.9

0.8

Receivables and loans

0.1

0.1

13 Information on the members of the Management Board andSupervisory Board
The members of the Management Board during the 2022 financial year up to the date of preparationof the statement of financial position were:• Stefan Kölbl, CEO (until April 6, 2022)

Chairman of the Management Board, Leinfelden-Echterdingen• Stanislaw Zurkiewicz, CEO (since April 6, 2022), COO (until April 6, 2022)••

Chairman of the Management Board (Member of the Management Board
until April 6, 2022), Stuttgart
Wolfgang Linsenmaier, CFO
Member of the Management Board, Freiberg am Neckar
Ulrike Hetzel, CTO (until December 31, 2022)
Member of the Management Board, Renningen

The members of the Supervisory Board in the 2022 financial year were:• Thomas Pleines, Chairman (until April 6, 2022)

•
•
•
•
•
•
•

President of the Presidential Board of DEKRA e.V., Stuttgart
Formerly: Chairman of the Management Board of Allianz Versicherungs-AG
Stefan Kölbl, Chairman (since April 6, 2022)
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, Stuttgart
Ulrich Beiderwieden * (until April 6, 2022)
Formerly at Federal Administrative Office of ver.di
Head of specialist division,“Special Services” specialist division no. 13
Frank Beimborn * (until March 24, 2022)
Deputy Chairman of the Central Works Council of DEKRA Automobil GmbH, Stuttgart,
Dortmund branch of DEKRA Automobil GmbH, Stuttgart
Hanna Binder * (since April 6, 2022)
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 * (since April 6, 2022)
Key Account Manager
DEKRA Industrial S.A.S., France
Klaus-Jürgen Heitmann
Spokesman of the Boards of Directors of HUK-Coburg Versicherungsgruppe �insurance group�,
Coburg

DEKRA Financial Report 2022

90

Consolidated Financial Statements › Notes to the Consolidated Financial Statements• 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
Dipl.-Ing. (FH) Wilfried Kettner * (until April 6, 2022)
Deputy Chairman of the Works Council of DEKRA SE,
Chairman of the Central Works Council of DEKRA Automobil GmbH,
Suhl branch of DEKRA Automobil GmbH, Stuttgart
Dipl.-Wirtsch.-Ing. Arndt G. Kirchhoff
Chairman of the Advisory Council of Kirchhoff Group, Iserlohn
Dipl.-Ing. (FH) Stephan Kramer
Branch Manager – Hamburg South,
Regional Spokesman for Schleswig-Holstein – DEKRA Automobil GmbH, Stuttgart
Daniel Kusch * (since March 24, 2022)
Member of the Central Works Council of DEKRA Automobil GmbH,
Cologne branch,
DEKRA Automobil GmbH, Stuttgart
Jörg Leiser * (since April 6, 2022)
Expert in industrial environmental protection,
Karlsruhe branch office,
DEKRA Automobil GmbH, Stuttgart
Laurent Masquet * (until April 6, 2022)
Deputy Production Manager – IT,
DEKRA Automotive Solutions, Bordeaux, France
Dipl.-Wirtsch.-Ing. Peter Tyroller
Formerly: Managing Director, Robert Bosch GmbH, Stuttgart* Elected by the employees

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

15 Other disclosures
Audit of the annual financial statements

The Annual General Meeting on April 6, 2022 appointed PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft, Stuttgart, as auditors of the individual and consolidated financial statements forthe 2022 financial year.
The auditors’ fees recognized in the financial year are shown in the following table.
in € thousand

2022

2021

Audit services

748

709

List of shareholdings and consolidated group

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.

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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

Stuttgart3)

100.00DEKRA Event & Logistic Services GmbH

Stuttgart3)

100.00DEKRA Immobilien GmbH

Stuttgart3)

100.00DEKRA INCOS GmbH

Ingolstadt

3)

DEKRA Inspection Services GmbH

Stuttgart

DEKRA Personal GmbH

Stuttgart3)

100.00DEKRA Personaldienste GmbH

Stuttgart3)

100.00DEKRA Qualification GmbH

Stuttgart3)

100.00DEKRA Testing and Certification GmbH

Stuttgart3)

100.00DEKRA AUTOMOTIVE SOLUTIONS Germany GmbHDEKRA Visatec GmbH

Sulzberg/See

GKK Gutachten GmbH

Düsseldorf

100.00100.00100.003)

100.00PRO-LOG Beteiligungs GmbH

Stuttgart

100.00PRO-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

100.00Jonage, France

100.00

Checkauto Consultatoria Técnica e Informções Veiculares
Ltda.
Chilworth France S.A.S.

Verona, Italy

100.00DEKRA (India) Pvt. Ltd.

D.Akademie S.r.l.

New Delhi, India

100.00DEKRA (Shanghai) Co., Ltd.

Shanghai, China

100.00Shanghai, China

100.00Dekra (Suisse) SA

DEKRA (Shanghai) Investment Co., Ltd.

Thônex, Switzerland

100.00DEKRA A/S (previously: DEKRA Hovedstaden A/S)

Brøndby, Denmark100.00DEKRA Akademie A/S

Brøndby, Denmark100.00DEKRA Akademie Kft.

Budapest, Hungary

100.00Tirana, Albania

100.00DEKRA Arbeit AG St. Gallen

DEKRA Akademie Sh.p.k.

St. Gallen, Switzerland

100.00DEKRA Arbeit (Schweiz) Holding AG

Sargans, Switzerland

100.00DEKRA Arbeit AG Basel

Basel, Switzerland

100.00DEKRA Arbeit AG Buchs

Buchs, Switzerland

95.00

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Consolidated Financial Statements › Notes to the Consolidated Financial Statements

Capital sharein %DEKRA Arbeit AG Chur

Chur, Switzerland

90.00

DEKRA Arbeit AG Sargans

Sargans, Switzerland

98.00

DEKRA Arbeit Magyaroszag Szolgáltató Kft.

Budapest, Hungary

100.00

Leopoldsdorf, Austria

100.00DEKRA Austria GmbHDEKRA Automotive Pty. Ltd.
DEKRA Automotive AB
DEKRA Automotive La Réunion S.A.S.
DEKRA Automotive Ltd.
DEKRA Automotive Maroc S.A.

Klerksoord, Rosslyn, South Africa

100.00

Solna, Sweden

100.00Saint-Denis, France

100.00

Stokenchurch, Bucks, UK

100.00Casablanca, Morocco

80.00

DEKRA Automotive S.à r.l.

Munsbach, Luxembourg

100.00DEKRA Automotive S.A.S.

Le Plessis-Robinson, France

100.00Bordeaux, France

100.00DEKRA Automotive Solutions France S.A.S.U.
DEKRA Belgium SA

Zaventem, Belgium

100.00DEKRA Bilsyn ApS

Silkeborg, Denmark100.00DEKRA Canada Inc.

Moncton, New Brunswick, Canada

100.00DEKRA Caribbean B.V.

Willemstad, Curaçao

100.00DEKRA Certification (Proprietary) Ltd.

Rosslyn, South Africa

100.00DEKRA Certification B.V.

Arnhem, Netherlands

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.

Hong Kong, China (Hong Kong)

100.00Tokyo, Japan

100.00Tzur Yigal (previously: Tel Aviv, Israel)

100.00Le Plessis-Robinson, France

100.00

Wrocław, Poland

100.00

Budapest, Hungary

100.00DEKRA Certification. Inc.

North Wales, PA, USA

100.00DEKRA Claims and Expertise B.V.

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 Claims Services UK Ltd.
DEKRA Costa Rica SA (previously: 3-101-860392. S.A.)
DEKRA Croatia d.o.o.
DEKRA CZ a.s.

San José – Santa Ana Pozos, Costa Rica

100.00

Zagreb, Republic of Croatia

100.00Prague 4, Czech Republic

100.00DEKRA d.o.o. Beograd

Zvezdara, Belgrade, Serbia

100.00DEKRA Empleo ETT S.L.

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 Foncier S.N.C.

Le Plessis-Robinson, France

100.00DEKRA France S.A.S.

DEKRA España S.L.

DEKRA Finland Oy

Le Plessis-Robinson, France

100.00DEKRA Fyn ApS

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

Guangzhou, China

100.00DEKRA Industrial A/S

Brabrand, Denmark100.00DEKRA Industrial AB Sweden

Göteborg, Sweden

100.00DEKRA Financial Report 2022

93

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.R.L.
DEKRA Industrial S.A.
DEKRA Industrial Safety B.V.

Limoges, France

100.00Vantaa, Finland

100.00Klerksoord, Rosslyn, South Africa

100.00

Algiers, Algeria

99.50

Barcelona, Spain

100.00Capelle 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.

Casablanca, Morocco

100.00DEKRA Inspections, Inc.

Harrisburg, NC, USA

100.00DEKRA iST Reliability Services Inc.

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.
DEKRA ITV España S.L.
DEKRA Job ApS
DEKRA Katsastus OY
DEKRA Korea Co., Ltd.
(formerly: MOVON Test Lab Co. Ltd.)DEKRA kvalifikácia a poradenstvo s.r.o.
DEKRA Midtjylland ApS
DEKRA Motores Vistoria Veicular Ltda.
DEKRA Netherlands Holding B.V.
DEKRA New Zealand Ltd.

Alcobendas (Madrid), Spain

100.00Brøndby, Denmark100.00Kangasniemi, Finland

100.00Gyeonggi-do, Republic of Korea(South Korea)

100.00Bratislava, Slovakia

100.00

Skjern, Denmark100.00

Atibaia, SP, Brazil

100.00Arnhem, Netherlands

100.00Wellington, New Zealand

60.00

DEKRA Nordjylland A/SSæby, Denmark100.00DEKRA North America. Inc.

Atlanta, GA, USA

100.00

Alkmaar, Netherlands

100.00DEKRA POLSKA Sp. z. o.o.

DEKRA People B.V.

Warsaw, Poland

100.00DEKRA Portugal S.A.

Lisbon, Portugal

100.00DEKRA Prélèvements & Analyses SAS
DEKRA Privremeno Zaposljavanje Podgorica d.o.o.
DEKRA Quality Management AB

Limoges, France

99.99

Podgorica, Montenegro

100.00

Solna, Sweden

100.00DEKRA Rail B.V.

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 France SAS

DEKRA Services ApS

Le Plessis-Robinson, France

100.00DEKRA Services S.A.

Alcobendas (Madrid), Spain

100.00DEKRA Services. Inc.

Atlanta, GA, USA

100.00DEKRA Servicios Recursos Humanos S.L.

Barcelona, Spain

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

Bratislava, Slovakia

100.00DEKRA Solutions B.V.

Arnhem, Netherlands

100.00Klerksoord, Rosslyn, South Africa

100.00DEKRA South Africa Pty. Ltd.

DEKRA Financial Report 2022

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Consolidated Financial Statements › Notes to the Consolidated Financial Statements

Capital sharein %DEKRA Southern Africa Oceania Limited
DEKRA Sweden AB
DEKRA Sydjylland A/SDEKRA TEST CENTER SAS

Wellington, New Zealand

100.00Gothenburg, Sweden

100.00

Vejen, Denmark100.00Montredon-des-Corbières, France

100.00DEKRA Testing & Certification (Suzhou) Co., Ltd.

Suzhou, China

100.00DEKRA Testing and Certification (Shanghai) Ltd.

Shanghai, 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

100.00Wenzhou, Zhejiang, China

51.00

DEKRA UK Ltd.

Southampton, Hampshire, UK

100.00DEKRA UK Management Ltd.

Southampton, Hampshire, UK

100.00Atibia, SP, Brazil

100.00

Zagreb, Republic of Croatia

100.00DEKRA Testing Services (Zhejiang) Ltd.

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

Podgorica, Montenegro

100.00

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, China

100.00Road Town (Tortola),
British Virgin Islands

100.00Hangzhou DEKRA Certification Co., Ltd.
QTK Asia Electronics Ltd.
UAB DEKRA Industrial
Vehicle Testing New Zealand Ltd.
VEIKI-VNL Villamos Nagylaboratóriumok Korlátolt
Felelősségü Társaság

Visaginas, Lithuania

100.00Wellington, New Zealand

60.00

Budapest, Hungary

100.00

II. Affiliated companies(not included in the consolidated financial statements)
1. Domestic (Germany)

DEKRA Cargo & Security Services GmbHDEKRA Media GmbH

Capital sharein %Stuttgart

100.00Mönchengladbach

100.002. Foreign

D. Invest s.r.l.

Capital sharein %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 Arbeit Bulgaria EOOD
DEKRA Arbeit L.L.C.

DEKRA Financial Report 2022

Vienna, Austria

100.00

Sarajevo, Bosnia-Herzegovina

100.00

Sofia, Bulgaria

100.00Priština, Kosovo

100.0095

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

Capital sharein %DEKRA Arbeit SHPK

Tirana, Albania

100.00DEKRA Automotive EOOD

Sofia, Bulgaria

100.00Gothenburg, Sweden

100.00Brøndby, Denmark100.00DEKRA Bilbesiktning AB(formerly: Aktiebolaget Grundstenen 169887)
DEKRA Bilsyn Partner A/S
DEKRA Business Services (Beijing) Co., Ltd.
DEKRA Certification S.L.
DEKRA Certification S.R.L.
DEKRA Certification UK Ltd.
DEKRA Claims Services
DEKRA Claims Services Austria GmbHDEKRA Claims Services France SASU
(formerly: DEKRA Claims Services France S.A.)

Beijing, China

100.00Barcelona, Spain

100.00Cluj-Napoca, Romania

100.00

Stokenchurch, UK

100.00Kyiv, Ukraine

70.00

Vienna, Austria

100.00

Levallois-Perret, France

100.00Casablanca, Morocco

100.00DEKRA Claims-Services-Magyarország Szolgáltató Kft.

Budapest, Hungary

100.00DEKRA Development s.r.o.

Bratislava, Slovakia

100.00

Cairo, Egypt

51.00

Budapest, Hungary

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

DEKRA Egypt for Services and Consulting
DEKRA – EXPERT Müszaki Szakértöi Kft.

Kyiv, Ukraine

80.00

DEKRA Hasar Servisi Ltd. Sti.

DEKRA Expert OOO

Istanbul, Turkey

100.00DEKRA Hellas EPE

Athens, Greece

100.00Oslo, Norway

100.00DEKRA Industrial AS
DEKRA 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.

Stokenchurch, Bucks, UK

100.00DEKRA 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.

Dubai, 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

100.00DEKRA Vizsgaközpont Nonprofit Korlátolt Felelősségű
Társaság i.L.

Budapest, Hungary

100.00DEKRA Vrabotuvanje dooel.

Skopje, Macedonia

100.00

Ljubljana, Slovenia

100.00DEKRA zaposljavanje d.o.o.

DEKRA zaposlitev d.o.o.

Sarajevo, Bosnia-Herzegovina

100.00DEKRA Zaposljavanje d.o.o.

Belgrade, Serbia

100.00European Road Stars Academy SPRL
Gudmund s.r.o.
Laon Controle Technique SAS
Master Test Chile SpA.
Private Employment Agency DEKRA Arbeit Macedonia(formerly: Arbeit De Agency for Temporary Employment)

DEKRA Financial Report 2022

Brussels, Belgium

50.10

Vršovice, Prague 10, Czech Republic

100.00Le Plessis-Robinson, France

100.00Santiago de Chile, Chile

100.00

Skopje, Macedonia

100.0096

Consolidated Financial Statements › Notes to the Consolidated Financial Statements

Capital sharein %PRO-LOG CG d.o.o.
PRO-LOG SR DOO

Podgorica, Montenegro

100.00Belgrade, Serbia

100.00SLP Hiss & Lyftbesiktning AB

Gothenburg, Sweden

100.00TATRA TRUCK s.r.o.

Krásny Brod, Slovakia

100.00III. Associated companies
1. Domestic (Germany)

Capital sharein %ARGE “Technische Prüfstelle für den
Kraftfahrzeugverkehr 21” GBR

DresdenEuro Transport Media Verlags- und
Veranstaltungsgesellschaft mbH

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 AB

Västerås, Sweden

1)

Spearhead AG

25.00

1)

51.00
33.00

Dietlikon, Switzerland

33.35

IV. Shareholding investments
2. Foreign

Capital sharein %Eiffage Énergie Systèmes – DYNAE SA(formerly: DYNAE S.A.)

Villefontaine, France 2), 4)

19.93

Société Coopérative de Promotion S.A.

Trappes, France2)< 5.00Crédit Agricole S.A.

Paris, France2)< 1.00Crédit MutuelParis, France2)< 1.00

ITT Technology Transfer S.r.l. i.L

Ferrara, Italy

2)

1.00

1) 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) No significant influence excercised5) 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 30, 2023
DEKRA SEThe Members of the Management Board

Zurkiewicz

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 balance sheet as at 31 December 2022, and the consolidated
statement of comprehensive income, consolidated statement of changes in equity and consolidated
statement of cash flows for the financial year from 1 January to 31 December 2022, and notes to theconsolidated 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 1 January
to 31 December 2022. In accordance with the German legal requirements, we have not audited thecontent 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§ �Article� 315e Abs. �paragraph� 1 HGB �Handelsgesetzbuch: German Commercial Code� and, incompliance with these requirements, give a true and fair view of the assets, liabilities, and financial
position of the Group as at 31 December 2022, and of its financial performance for the financial year
from 1 January to 31 December 2022, and• the accompanying group management report as a whole provides an appropriate view of the Group’s
position. In all material respects, this group management report is consistent with the consolidated
financial statements, complies with German legal requirements and appropriately presents theopportunities and risks of future development. Our opinion on the group management report
does not cover the content of the parts of the group management report listed in the section“Other Information”.

Pursuant to § 322 Abs. 3 Satz �sentence� 1 HGB, we declare that our audit has not led to any reserva­
tions relating to the legal compliance of the consolidated financial statements and of the group­management report.

Basis for the Audit Opinions

We conducted our audit of the consolidated financial statements and of the group management reportin accordance with § 317 HGB in compliance with German Generally Accepted Standards for Financial
Statement Audits promulgated by the Institut der Wirtschaftsprüfer �Institute of Public Auditors inGermany� (IDW). Our responsibilities under those requirements and principles are further describedin the “Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements and of theGroup Management Report“ section of our auditor’s report. We are independent of the group entitiesin ­accordance with the requirements of German commercial and professional law, and we have fulfilled
our other German professional responsibilities in accordance with these requirements. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basis for our 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 corporate governance statement contained in the “Personnel Report” section of the group­management report in accordance with § 289f Abs. 4 HGB (information on the proportion of women)• the sections “Integrity” and “Sustainability” in the group management report.

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Independent auditor’s report

The other information comprises all remaining parts of the Financial Report – excluding cross-references
to external information – with the exception of the audited consolidated financial statements, the auditedgroup 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 the consolidated financial statementsthat comply, in all material respects, with IFRSs as adopted by the EU and the additional requirementsof German commercial law pursuant to § 315e Abs. 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 control as they have determined necessary to enable the preparation of consolidated
financial statements that are free from material misstatement, 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,as applicable, matters related to going concern. In addition, they are responsible for financial reporting
based on the going concern basis of accounting unless there is an intention to liquidate 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 the group management
report that, 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.

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements andof the Group Management Report

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and whether thegroup management report as a whole provides an appropriate view of the Group’s position and, in allmaterial respects, is consistent with the consolidated financial statements and the knowledge obtainedin the audit, complies with the German legal requirements and appropriately presents the opportunities and risks of future 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 is not a guarantee that an audit conducted inaccordance with § 317 HGB and in compliance with German Generally Accepted Standards for Financial
Statement Audits promulgated by the Institut der Wirtschaftsprüfer (IDW) will always detect a material
misstatement. Misstatements can arise from fraud or error and are considered material if, individuallyor in the aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these consolidated financial statements and this group management report.
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Independent auditor’s report

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

•
•
•

•

•
•
•

of 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 not detecting a material misstatement resulting fromfraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentionalomissions, misrepresentations, or the override of internal controls.
Obtain an understanding of internal control relevant to the audit of the consolidated financial statements and of arrangements and measures (systems) relevant to the audit of the group management report in order to design audit procedures that are appropriate in the circumstances, but notfor 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 the reasonableness 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 related
to events or conditions that may cast significant doubt on the Group’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in theauditor’s report to the related disclosures in the consolidated financial statements and in the groupmanagement 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’s report.
However, future events or conditions may cause the Group to cease to be able to continue as agoing 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 a manner that the consolidated financial statements give a true and fairview of the assets, liabilities, financial position and financial performance of the Group in compliance with IFRSs as adopted by the EU and the additional requirements of German commercial law
pursuant to § 315e Abs. 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 on 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 of the Group’s position it provides.
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,
in particular, 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 theseassumptions. We do not express a separate audit opinion on the prospective information and on
the assumptions used as a basis. There is a substantial unavoidable risk that future events will differ
materially from the prospective information.

We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies ininternal control that we identify during our audit.

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Independent auditor’s report

Stuttgart, March 30, 2023
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 Chairmanof the Supervisory Board
Dear Readers,
The year 2022 was eventful for DEKRA SE, with a new Chairman of the Management Board, the reper­
cussions of the war in Ukraine, and the ongoing fallout from the COVID-19 pandemic. Against this backdrop, the Supervisory Board has exercised and fulfilled its full range of monitoring and leadership duties.
DEKRA SE’s Management Board regularly updated the Supervisory Board about important businessactivities, both in writing and in meetings. As part of the ongoing dialog, operational activities and thestrategic development of the Company were the main topics. The Management Board discussed mattersregularly with the Chairman of the Supervisory Board in addition to the two regular Supervisory Board
meetings at which the Management Board and the Supervisory Board discussed strategies and plansfor ensuring continued growth, among other things.
The result of these deliberations was the decision to continue expanding DEKRA’s Sustainability
Services relating to the energy transition, the circular economy, and ESG (environmental, social,­governance). In particular, in 2022, the testing, certification, inspection, expert, and training services
relevant, among other things, for energy-transition technologies were further developed – especiallyhydrogen, photovoltaics, wind power, and batteries for electric vehicles. The latter is important because
new drive technologies, mobility services, and digitalization are set to transform the motor vehicle
inspection business over both the medium and long term. Leveraging the opportunities presented bythese developments to DEKRA’s advantage was a further talking point in the discussions between theManagement Board and the Supervisory Board.
For the 2022 financial year, the Supervisory Board appointed auditing firm PwC as the external auditor
and commissioned it to examine DEKRA SE’s annual accounts, management report, consolidated
financial statement, and Group management report, based on the accounts for 2022. The unqualified
audit opinion of the external auditor was acknowledged and approved by the Supervisory Board.
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 therefore
adopted. The Supervisory Board thanks the Management Board and all DEKRA employees for theirsuccessful endeavors in the past reporting year.
Stuttgart, April 2023
The Supervisory Board
Stefan Kölbl

Chairman of the Supervisory Board

DEKRA Financial Report 2022

Imprint
To DEKRA SE, Stuttgart
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, 102)