4. Revenue from Contracts with Customers

Revenue

In accordance with IFRS 15, revenue is recognized either at a stated point in time or over a certain period when or as the performance obligation is satisfied and control is passed to the customer.

The amount of the revenue is based on the consideration agreed with the customer in exchange for transferring the promised goods or services.

The main services provided by the divisions, according to business areas, are described in note 2.

In the BLG Group, revenue is normally recognized pursuant to IFRS 15.B16 in the amount permitted to be invoiced, as the invoiced amounts correspond directly to the value of the services rendered to date. The BLG Group therefore makes use of the exemption provided for by IFRS 15.121 (b) and does not disclose the amount of the remaining performance obligations for these contracts.

The tables below itemize revenue by service type and by business segment or region and allocate the subdivided revenue to the AUTOMOBILE and CONTRACT Divisions. The CONTAINER Division is not included because it is accounted for using the equity method. A breakdown by revenue generated in Germany and abroad is included in note 3.

Contract assets and contract liabilities from contracts with customers

Contract assets relate primarily to rights to receive consideration from customers arising from the fulfillment of performance obligations for which no invoice has been issued as of the reporting date. They are recognized under other assets in the statement of financial position (note 18).

Contract assets are reclassified as trade receivables if the right to receive consideration becomes unconditional. This is the case if the payment is due or will become due automatically due to the passage of time.

Loss allowances were recognized in profit or loss on the basis of expected credit losses using the simplified approach. According to this approach, the amount of the loss allowance is to be determined on the basis of the lifetime expected credit losses. Changes in credit risk do not have to be tracked. The loss allowance is recognized net as a separate item in the statement of profit or loss. Please also refer to note 32.

As the risk structure of the contract assets primarily corresponds to the risk structure of the trade receivables, the same expected credit loss rates are recognized for the allowance account. The calculation of credit loss rates is described in note 18.

Contract liabilities arise from advance payments by customers or unconditional rights to receive consideration from customers that already exist before the (full) satisfaction of the performance obligations. Revenue is only recognized once the services have been transferred to the customer. They are recognized under other liabilities in the statement of financial position (note 28).

The tables below contain information on the development of contract assets and contract liabilities.

The credit risk and the expected credit losses for contract assets were as follows as of December 31, 2025, and December 31, 2024:

Loss allowances on contract assets developed as follows: