Notes to the consolidated financial statements

Information on the financial report

General information

The consolidated financial statements comprise the individual financial statements of the group companies of Bystronic AG for the financial year from January 1, 2024, to December 31, 2024. They were prepared in accordance with uniform guidelines and comply with Swiss GAAP FER (Accounting and Reporting Recom­mendations), including Swiss GAAP FER 31 “Complementary Recommendations for listed entities” and Swiss law. With the exception of derivative financial instruments, which are measured at fair value, the consol­idated financial statements are based on historical costs. The same accounting and valuation principles have been used as in the previous year. The principle of individual valuation has been applied to assets and liabilities. Due to rounding, numbers presented throughout this report may not add up precisely to the totals provided. All ratios and variances are calculated using the underlying amount rather than the rounded amount presented.

The consolidated financial statements were approved for publication by the Board of Directors on February 24, 2025. They are also subject to approval by the General Assembly.

Changes in accounting principles

On January 1, 2024, the “Swiss GAAP FER 28–Government Grants” (FER 28) and the revised standard “Swiss GAAP FER 30 – Consolidated financial statements” (FER 30) came into force. The new FER 28 standard corresponds to the accounting practice already applied at Bystronic and therefore has no impact on the consolidated financial statements. The amendments to FER 30 mainly specify the accounting and treatment of step acquisitions, goodwill and currency translation differences in connection with Group equity-like loans. According to the new standard, previously unrecognized intangible assets relevant to the acquisition of control of an acquired subsidiary must be identified and recognized. As part of the first-time application of FER 30, the new rules on goodwill will not be applied retrospectively. No further changes to standards have been published.

Scope and method of consolidation

The consolidated financial statements include the financial statements of Bystronic AG and of all Group companies directly or indirectly controlled by Bystronic AG through investments with more than 50% of the votes or by other means. These Group companies are fully consolidated. The share of minority share­holders in the net assets and net result is disclosed separately. Intragroup receivables and payables, as well as expenses and income, are offset against each other and intragroup profits have been eliminated.

The assets and liabilities of companies, which are included in consolidation for the first time, are measured at fair value. Goodwill arising from this revaluation is offset against equity. First-time consolidations are included from the date on which control is acquired and deconsolidation from the date on which control is relin­quished. When companies are sold, the goodwill offset against equity is reflected in the income statement. The disposal is equated with the closure and liquidation of a business unit.

Investments in associated companies or entities (of at least 20% but less than 50% of the voting rights) are accounted for under the equity method. Securities held as non-current assets are valued at acquisition cost, less any necessary value adjustments.

Currency translation

The consolidated financial statements of Bystronic AG are presented in Swiss francs (CHF). The financial statements of foreign companies are prepared in their respective functional currencies and translated into Swiss francs for consolidation purposes. The resulting currency effects are recognized in equity. Foreign currency gains and losses on long-term equity-like loans to Group companies are also recorded in equity. Following the sale or liquidation of companies, these effects are reflected in the income statement. All gains and losses resulting from foreign currency transactions and adjustments to foreign currency balances at the balance sheet date are recognized in the income statement.

Significant event

On September 11, 2024, Bystronic announced an optimization of the organizational structure and restructuring. The implemented and planned measures have a significant impact on the consolidated financial statements, which are explained under section 1.3 Restructuring and Impairments. Further information is provided in the following notes:

• Operating expenses – note 1.5
• Fixed assets – note 2.3
• Intangible assets – note 2.4
• Provisions – note 2.6

Significant estimates made by management

In preparing the consolidated financial statements, certain assumptions are made that affect the accounting basis to be used, the amounts reported as assets, liabilities, income and expenses and the presentation of these amounts. The assumptions are set out in the following notes:

• Income taxes – note 1.6
• Inventories – note 2.2
• Fixed assets – note 2.3
• Intangible assets – note 2.4
• Provisions – note 2.6

Definition of alternative performance measures

Where relevant for the reader, Bystronic has included specific subtotals, which can be found in the relevant tables. Furthermore, Bystronic uses the following key figures in the external financial communications:

• Order intake – note 1.1
• Backlog – note 1.2
• Operating result (EBIT) adjusted – note 1.3
• Net operating assets and return on average net operating assets (RONOA) – note 2.1
• Operating free cash flow – note 2.1

Events after the balance sheet date

There are no events after the balance sheet date that either require a value adjustment to the assets and liabilities recognized in the balance sheet or require disclosure.