Koninklijke BAM Groep N.V. ANNUAL

Capital management

4.1 Capital management The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group may adjust dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. The Group’s aim is for a financing structure that ensures continuing operations and minimises cost of equity. For this, flexibility and access to the financial markets are important conditions. As usual within the industry, the Group monitors its financing structure through its liquidity (see note 4.2.3) and throught is capital ratio. Capital ratio is calculated as the capital base divided by total assets. The Group’s capital base consists of equity attributable to shareholders of the Company and, up to 2021, the carrying amount of subordinated convertible bonds. The Group’s target capital ratio is above 20%. On 31 December 2024, the capital ratio was 23.0% (2023: 23.4%).