As a lessee, the Company assesses if a contract is or contains

a lease at inception of the contract. A contract is or contains a

lease if the contract conveys the right to control the use of an

identified asset for a period of time in exchange for

The Company recognizes a right-of-use asset and a lease

liability at the commencement date, except for short-term

leases of twelve months or less and leases for which the

underlying asset is of low value, which are expensed in the

consolidated statement of operations on a straight-line basis

over the lease term.

The lease liability is initially measured at the present value of

the lease payments that are not paid at the commencement

date, discounted using the interest rate implicit in the lease, or,

if not readily determinable, the incremental borrowing rate

specific to the country, term and currency of the contract.

Lease payments can include fixed payments, variable

payments that depend on an index or rate known at the

commencement date, as well as any extension or purchase

options, if the Company is reasonably certain to exercise these

options. The lease liability is subsequently measured at

amortized cost using the effective interest method and

remeasured with a corresponding adjustment to the related

right-of-use asset when there is a change in future lease

payments in case of renegotiation, changes of an index or rate

or in case of reassessments of options.

The right-of-use asset comprises, at inception, the initial lease

liability, any initial direct costs and, when applicable, the

obligations to refurbish the asset, less any incentives granted

by the lessors. The right-of-use asset is subsequently

depreciated on a straight-line basis to the earlier end of its

estimated useful life or the end of the lease term or to the end

of the estimated useful life of the underlying asset, if the lease

transfers the ownership of the underlying asset to the

Company at the end of the lease term or if the cost of the right-

of-use asset reflects that the lessee will exercise a purchase

option. Right-of-use assets are also subject to testing for

impairment if there is an indicator that they may be impaired.

Variable lease payments not included in the measurement of

the lease liabilities are expensed to the consolidated statement

of operations in the period in which the events or conditions

which trigger those payments occur.

In the statement of financial position, right-of-use assets and

lease liabilities are classified, respectively, as part of property,

plant and equipment and short-term/long-term debt.

Balances for the Company’s lease activities are summarized as follows:


	As at December 31,
	2025	2024
Lease liabilities	1,181	1,034
Right of-use assets:
Land, buildings and improvements	1,016	869
Machinery, equipment and others	363	371
Total right-of-use assets	1,379	1,240

	Year ended December 31,
	2025	2024
Depreciation and impairment charges:
Land, buildings and improvements	142	150
Machinery, equipment and others	98	77
Total depreciation and impairment charges	240	227

Other lease related expenses:
Interest expense on lease liabilities	60	55
Expenses of short-term leases	158	114
Expenses of leases of low-value assets	98	91
Expenses related to variable lease payments not included in the measurement of lease liabilities	74	70

Additions to right-of-use assets	274	209
Lease payments recorded as reduction of lease liabilities and cash outflow from financing activities	234	224

The Company's lease contracts relate to a variety of assets used in its operational and administrative activities through several units,

such as land, buildings, vehicles, industrial machinery, logistic and commercial facilities and power generation facilities. There are no

sale and lease back transactions and no restrictions or covenants are imposed by the Company's current effective lease contracts.

The maturity analysis of the lease liabilities as of December 31, 2025 and December 31, 2024, is as follows:


				December 31, 2025
	1 year or less	2-3 years	4-5 years	Greater than 5 years	TOTAL
Lease liabilities (undiscounted)	291	342	232	1,328	2,193


				December 31, 2024
	1 year or less	2-3 years	4-5 years	Greater than 5 years	TOTAL
Lease liabilities (undiscounted)	246	301	199	1,235	1,981

Expenses for variable lease payments relate to rental fees that vary based on the actual level of activities or performance of the

underlying leased assets such as a percentage of sales of the Company's goods through certain leased commercial warehouses and

fixed rental fees per actual unit of output produced or transported by the leased assets.

An estimation of the future cash outflows to which the Company is potentially exposed in relation to those contracts involving variable

lease payments, which are not reflected in the measurement of lease liabilities as of December 31, 2025 and December 31, 2024, is as

follows:


					December 31, 2025
	1 year or less	2-3 years	4-5 years	Greater than 5 years	TOTAL
Potential variable lease payments	70	107	56	22	255


					December 31, 2024
	1 year or less	2-3 years	4-5 years	Greater than 5 years	TOTAL
Potential variable lease payments	60	92	52	36	240

Also, some of the Company's lease contracts have extension and/or termination options as well as residual value guarantees whose

amounts are not reflected in the measurement of the lease liabilities as of December 31, 2025 and December 31, 2024. The potential

addition/(reduction) in future cash outflows to which the Company is exposed in case such options are exercised or the guarantees

required are as shown in the table below:


				December 31, 2025
	1 year or less	2-3 years	4-5 years	Greater than 5 years	TOTAL
Potential extension options	1	3	—	—	4
Potential termination options	—	(1)	—	—	(1)
Potential residual value guarantees	6	9	2	—	17


				December 31, 2024
	1 year or less	2-3 years	4-5 years	Greater than 5 years	TOTAL
Potential extension options	4	10	—	—	14
Potential termination options	—	—	—	(1)	(1)
Potential residual value guarantees	8	9	6	—	23

Undiscounted amounts related to lease contracts not yet commenced and therefore not included in the recognized lease liabilities as of

December 31, 2025 and December 31, 2024, to which the Company is committed are described below:


				December 31, 2025
	1 year or less	2-3 years	4-5 years	Greater than 5 years	TOTAL
Leases not yet commenced	3	3	2	2	10


				December 31, 2024
	1 year or less	2-3 years	4-5 years	Greater than 5 years	TOTAL
Leases not yet commenced	6	13	7	49	75

There were neither income from subleasing right-of-use assets

nor gains or losses from sales and leaseback for the years

ended December 31, 2025 and December 31, 2024.