We've created the valuation for Kion's shares and we've created a good operating model that examines the performance of the segments and Kion as a whole. What we're now going to do is finish things up by looking at comparability issues.

We already found the EBITDA for 2024 under IFRS. However, there are two areas where perhaps comparing this to a US GAAP company might be a problem.

Also, if the comparable ratio that we used before was primarily from US companies, that might also be a problem because we would be taking information from those companies and applying it to Kion, which has a different reporting and accounting environment.

The areas which could be different are pensions and capitalized R&D.

Now, under IFRS companies have a fair bit of wriggle room where they put their pension, non-service costs, and the non-service costs could be things like the funds performance revaluations due to member lifespans, things like that. And so under IFRS, there is a chance that Kion is putting some costs into operational i.e. EBITDA and under US GAAP, it's quite restrictive. And under the US GAAP, it would only be the service costs that end up in EBITDA. Now you can see from the note, that's not the case. Kion is doing what a US GAAP company would have done anyway.

The R&D costs are a bit more complicated. What we've got to do is go and find a capitalized R&D from 2024, which we calculated earlier.

Now that capitalized R&D would never have happened under US GAAP because it's so restrictive what you can capitalize under US GAAP. So under US GAAP, what we would find is we would have a lower EBITDA. And if I show my formula there, you can see how I've prepared that. And you can see that the change in EBITDA is fairly sizable. And so if we decided that these comparable was from US companies, or if we were comparing the EBITDA and its margin to US companies, then moving over from IFRS to what the result would have been under US GAAP is highly desirable and something you may need to do.

That concludes the Kion model. I hope you've got something out of it and have a better understanding of the industrial sector.