4. Adjustments

Management adjusts earnings for the fiscal year for certain expenses and income in connection with completed M&A transactions and major restructuring programs in order to manage the Group’s operations. Adjustments are made in accordance with the management approach in segment reporting. Hence, the following adjusted results reflect the Management Board’s perspective.

Acquisition-related expenses and income as part of realized M&A transactions are adjusted. These may include, for example, costs for legal advice, due diligence, auditing, expert opinions, travel expenses and similar. In addition, expenses from integration are adjusted within the first twelve months after acquisitions have taken place. This includes all forms of external consulting, severance costs, IT connection, and other external implementation and integration costs.

In addition, adjustments will be made for costs as part of the global transformation that began in the 2025 fiscal year. This transformation program gave rise mainly to expenses for severance payments under the restructuring measures, related consulting costs, and expenses associated with the relocation of production. These expenses are shown separately in the adjustments table.

In addition, effects from the purchase price allocation (PPA), such as expenses from depreciation, amortization and impairments of property, plant and equipment and intangible assets from revaluation effects, so-called step-up effects, are adjusted over time.

The following table shows the reconciliation for the adjusted result.

Fictitious income taxes resulting from the adjustments are calculated using the tax rates applicable to the affected local company and recognized in adjusted profit after tax.