7. Adjustments

Management adjusts the result for the financial year for certain expenses and income in connection with realized M&A transactions in order to manage the Group's operations. Adjustments are made in accordance with the management approach in segment reporting. Hence, the following results, which are adjusted by these expenses, reflect the Management Board’s perspective.

Acquisition-related expenses and income as part of realized M&A transactions are adjusted. These may include, for example, costs for legal advice, due diligence, auditing, expert opinions, travel expenses and similar. In addition, integration expenses are adjusted following acquisitions within the first twelve months. This includes all forms of external consulting, severance costs, IT connection and other external implementation and integration costs.

In addition, effects from the purchase price allocation (PPA), such as expenses from depreciation and amortization of property, plant and equipment and intangible assets from revaluation effects, so-called step-up effects, are adjusted over time.

The following table shows the reconciliation for the adjusted result.

The following table shows profit or loss net of these expenses:

In the fiscal year 2023, acquisition related expenses of EUR 188 thousand were adjusted within EBITDA (earnings before interest, taxes, depreciation of property, plant and equipment and amortization of intangible assets).These relate to expenses in connection with the agreement to acquire the Italian company Teco Srl. There were no integration costs to be adjusted in the fiscal year.

There were no adjustments within EBITDA in the financial year 2022.

As in the previous year, depreciation on property, plant and equipment from purchase price allocations in fiscal year 2023 amounting to EUR 846 thousand (2022: EUR 1,252 thousand) within EBITA (earnings before interest, taxes and amortization of intangible assets) and amortization of intangible assets in the amount of EUR 20,324 thousand (2022: EUR 21,197 thousand) from purchase price allocations were adjusted within EBIT.

The theoretical taxes resulting from the adjustments are calculated using the respective tax rate of each Group entity and are taken into consideration in adjusted earnings after taxes.