Impairment losses and reversal of impairment losses

The general descriptions of plans and models – as specified in Note D.11. Impairment losses and reversal of impairment losses, of the Annual Report 2025/26 – still apply.

The assessment of the recoverability of intangible assets, goodwill, and property, plant and equipment is based on forward-looking assumptions. The determination of recoverable amounts as part of impairment testing relies on several assumptions, such as future cash flows, discount rates, or fair values less costs to sell of the individual assets, which are continuously reviewed.

As part of this assessment at the reporting date of the Interim Consolidated Financial Statements, current developments during the first half of the business year 2026/27 were taken into account in the impairment trigger analysis. Trigger-based impairment tests were performed for the affected CGUs, particularly in response to additional protectionist measures related to the U.S. tariff dispute, subdued demand in the Automotive Components business, and project postponements resulting from geopolitical uncertainties associated with the conflict in the Middle East. Relevant planning assumptions were updated accordingly. The impairment assessments performed did not indicate any need to recognize impairment losses as of September 30, 2026.

For the goodwill-allocated CGU Tubulars, which is currently the CGU most exposed to uncertainties arising from U.S. tariff policies as well as the conflict in the Middle East, management concluded that no reasonably possible change in the underlying planning assumptions would cause the recoverable amount to fall below its carrying amount.