7 - Inventories

Accounting policies

The Group's inventories are valued at the lower of cost or net realizable value (“NRV”). The cost of purchased inventory is determined after rebates and discounts are deducted. The NRV is estimated as the sale price in the ordinary course of business minus the estimated cost of completion and cost necessary to make the sale. In determining NRV, the Group considers factors such as the condition of inventory across all business units, market trends, demand forecasts, and risks such as obsolescence or potential technological redundancy.

Inventory valuation can be represented as follows:

In 2023, an expense of €198 million (2022: € 191 million) was recognized for raw materials and consumables.