Inventories are stated at the lower of cost or net realizable value. The cost of inventories comprises all costs of

purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and

condition. The costs of conversion of inventories include direct labor and fixed and variable production

overheads, considering the stage of completion and the normal capacity of production facilities. Costs of idle

facility and abnormal waste are expensed. The cost of inventories is determined using the first-in, first-out

(FIFO) method. The write-down of inventories to net realizable value is included in cost of sales.

Accounting estimates and judgments

Inventory is reduced for the estimated losses due to obsolescence. This reduction is determined for groups of

products based on sales in the recent past and/or expected future demand.

Inventories are summarized in the accompanying table.

Inventories in millions of EUR

In 2025, total inventories decreased by EUR 328 million, mainly in raw materials and supplies and finished

goods. The write-down of inventories to net realizable value was EUR 154 million in 2025 and EUR 230 million