13. Property, Plant and Equipment

Property, plant and equipment are accounted for at production cost less depreciation on the basis of use. Production costs include both direct costs and an appropriate share of indirect production costs where they are attributable to the production process. Borrowing costs are recognized in production costs to the extent that they relate to qualifying assets. Demolition obligations are accounted for at present value as incidental purchase costs in accordance with IAS 16. Expected residual values are taken into account when determining depreciation.

The remeasurement method is not used at BLG LOGISTICS.

If the conditions for the application of the component approach pursuant to IAS 16 are met, the assets are broken down into their components, which are capitalized individually and depreciated over their useful lives.

Asset-related government grants are recognized as liabilities and released over the useful life of the subsidized asset using the straight-line method. Please refer to note 25.

The straight-line pro rata method is the sole method used for depreciation and amortization, which is presented in the statement of profit or loss under “Depreciation, amortization and impairment of non- current intangible assets, property, plant and equipment and right-of-use assets from leases”. This method is based on the following standard useful lives:

If there are indications of impairment and if the recoverable amount is less than the amortized cost, the property, plant and equipment are impaired (see also note 12 under “Impairment”).

Impairment is recognized in the line item “Depreciation, amortization and impairment of non-current intangible assets, property, plant and equipment and right-of-use assets from leases”. In the 2024 financial year, in addition to scheduled depreciations and amortizations, unscheduled write-downs were performed on a building and related assets amounting to EUR 4,450 thousand (previous year: EUR 5,198 thousand) due to impairment testing according to IAS 36 (previous year: reduction in useful life (change in estimate in accordance with IAS 8)). The building in question is allocable to the CONTRACT segment (previous year: central department).

Advance payments and assets under construction of EUR 5,301 thousand (previous year: EUR 0 thousand) related to advance payments and EUR 4,274 thousand (previous year: EUR 5,064 thousand) to assets under construction.

As in the previous year, no financing costs were capitalized for qualifying assets.

The right-of-use assets from rental agreements and leases included in property, plant and equipment are presented in note 14.

No other assets reported under property, plant and equipment have been pledged as collateral for non-current loans. Right-of-use assets capitalized in accordance with IFRS 16 are not assigned as collateral, as legal ownership remains with the lessor.

The assets included in property, plant and equipment, for which there is an operating lease, developed as follows: