1.4 Changes in accounting policies and disclosures

There are no IFRS standards, amended standards or IFRIC interpretations taking effect for the first time for the financial year beginning 1 January 2025 that would have a material impact on the 2025 accounts of the Group.

Standards issued but not yet effective

The new and amended standards and interpretations that are issued, but not yet effective, up to the date of issuance of the financial statements have been reviewed by the Group. The Group intends to adopt these new and amended standards and interpretations, if applicable, when they become effective.

IFRS 18 Presentation and Disclosure in Financial Statements

In April 2024, the IASB issued IFRS 18, which replaces IAS 1 Presentation of Financial Statements. IFRS 18 introduces new requirements for presentation within the statement of profit or loss, including specified totals and subtotals. Furthermore, entities are required to classify all income and expenses within the statement of profit or loss into one of five categories: operating, investing, financing, income taxes and discontinued operations, whereof the first three are new. It also requires disclosure of newly defined management-defined performance measures, subtotals of income and expenses, and includes new requirements for aggregation and disaggregation of financial information based on the identified ‘roles’ of the primary financial statements and the notes. Entities’ net profit will not change.

In addition, narrow-scope amendments have been made to IAS 7 Statement of Cash Flows, which include changing the starting point for determining cash flows from operations under the indirect method, from ‘profit or loss before income taxes’ to ‘operating profit or loss’ and removing the optionality around classification of cash flows from dividends and interest. In addition, there are consequential amendments to several other standards.

IFRS 18, and the amendments to the other standards, is effective for reporting periods beginning on or after 1 January 2027, but earlier application is permitted and must be disclosed. IFRS 18 will apply retrospectively.

The Group is in the process of identifying the impacts the amendments will have on the consolidated primary financial statements and notes to these statements. The currently expected main impacts on our Group’s financial statements are as follows:

• Currently, all foreign exchange rate differences on balance sheet positions, including related hedging results, and all expenses related to our banking arrangements, are classified as financial income and expense. As of 1 January 2027, these results will be included in the operating category of the statement of profit or loss, which is the current basis for our KPI normalised EBIT. The amounts involved are not expected to have a material impact.
• Additional disclosures will be required for management-defined performance measures. For the KPI Normalised EBIT, the reconciliation to IFRS results is already disclosed in the financial statements.
• The statement of cash flows will start with operating income instead of profit before tax, and interest paid will be classified to cash flows from financing activities instead of cash flows from operating activities. This change is not expected to affect our Free Cash Flow performance.

There are no other IFRS standards, amended standards or IFRIC interpretations that would be expected to have a material impact on the future accounts of the Group.