Ifrs18 Presentation Worked Examples

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Section 7 — Worked Examples (oa-check blocks)

Worked Example 1 — Industrial Group Full P&L, Cash Flow & Balance Sheet Restatement (Najd Advanced Industries Company)

Client Facts

Najd Advanced Industries Company (NAIC) is a listed industrial manufacturing group in Saudi Arabia reporting in SAR '000 for the year ended 31 December 2026 (with comparative FY2025). NAIC has no specified main business activity of investing in assets or providing financing to customers (Rule A2.9). Under IAS 1, NAIC reported FY2026 Operating profit of SAR 360,400 thousand (FY2025: SAR 291,100 thousand) and Profit for the year of SAR 297,500 thousand (FY2025: SAR 242,100 thousand). Note disclosures reveal:

1. Note 7 (Other operating income — FY2026: SAR 38,900; FY2025: SAR 31,400): Comprises government grant amortisation (FY2026: 6,500; FY2025: 6,500), insurance claim recoveries (FY2026: 9,700; FY2025: 4,900), sale of scrap (FY2026: 5,100; FY2025: 4,300), sundry operating income (FY2026: 3,400; FY2025: 2,900), and rental income from third-party investment property of SAR 14,200 (FY2025: SAR 12,800).
2. Note 9 (Other gains — net — FY2026: SAR 5,600; FY2025: SAR 3,100): Previously presented below IAS 1 operating profit. Comprises net loss on undesignated commodity forward contracts managing raw material price risk (FY2026: -3,600; FY2025: +1,400), gain on disposal of operating PP&E (FY2026: +6,900; FY2025: +4,200), loss on disposal of operating intangibles (FY2026: 0; FY2025: -2,500), and gain on modification of bank borrowings (FY2026: +2,300; FY2025: 0).
3. Note 10 (Net foreign exchange gain/(loss) — FY2026: SAR -7,800; FY2025: SAR +2,400): Previously presented below IAS 1 operating profit. Decomposes into FX gain/(loss) on trade receivables/payables (FY2026: +1,600; FY2025: -1,500) and FX gain/(loss) on USD bank borrowings (FY2026: -9,400; FY2025: +3,900).
4. Note 18 (Finance costs — FY2026: SAR -86,500; FY2025: SAR -78,900): Comprises interest on borrowings (-61,300 / -56,200), amortisation of borrowing transaction costs (-2,200 / -1,900), interest on lease liabilities (-11,800 / -10,900), unwinding of discount on decommissioning provision (-3,100 / -2,800), net interest on employee EOSB obligation (-6,900 / -6,100), and net loss on interest rate swap over borrowings (-1,200 / -1,000).
5. Note 24 (Zakat and Income Tax): Zakat of SAR -18,200 (FY2025: SAR -15,600) is assessed on NAIC's net-worth Zakat base outside the scope of IAS 12 and was presented in the tax section under IAS 1. Income tax expense under IAS 12 is SAR -31,400 (FY2025: SAR -26,300).

example_id: ifrs18-naic-full-restatement-fy2026
currency: "SAR '000"
inputs:
  ias1_operating_profit_2026: 360400
  ias1_operating_profit_2025: 291100
  ias1_profit_for_year_2026: 297500
  ias1_profit_for_year_2025: 242100
  reclassifications_to_operating_2026:
    investment_property_rental_moved_to_investing: -14200
    commodity_forwards_moved_in: -3600
    gain_on_disposal_ppe_moved_in: 6900
    loss_on_disposal_intangibles_moved_in: 0
    fx_on_trade_balances_moved_in: 1600
    zakat_outside_ias12_moved_in: -18200
  reclassifications_to_operating_2025:
    investment_property_rental_moved_to_investing: -12800
    commodity_forwards_moved_in: 1400
    gain_on_disposal_ppe_moved_in: 4200
    loss_on_disposal_intangibles_moved_in: -2500
    fx_on_trade_balances_moved_in: -1500
    zakat_outside_ias12_moved_in: -15600
  investing_components_2026:
    rental_income_investment_property: 14200
    share_of_results_associates_jvs: 27500
    fair_value_gain_investment_property: 9300
    dividend_income_equity_investments: 8400
    fair_value_loss_fvtpl_investments: -4100
    interest_income_cash_and_deposits: 12700
  investing_components_2025:
    rental_income_investment_property: 12800
    share_of_results_associates_jvs: 22100
    fair_value_gain_investment_property: 6400
    dividend_income_equity_investments: 7200
    fair_value_gain_fvtpl_investments: 2700
    interest_income_cash_and_deposits: 9800
  financing_components_2026:
    gain_on_modification_borrowings: 2300
    fx_loss_on_borrowings: -9400
    interest_expense_borrowings: -61300
    amortisation_borrowing_costs: -2200
    interest_expense_leases: -11800
    unwinding_discount_decommissioning: -3100
    net_interest_eosb: -6900
    net_loss_interest_rate_swap: -1200
  financing_components_2025:
    gain_on_modification_borrowings: 0
    fx_gain_on_borrowings: 3900
    interest_expense_borrowings: -56200
    amortisation_borrowing_costs: -1900
    interest_expense_leases: -10900
    unwinding_discount_decommissioning: -2800
    net_interest_eosb: -6100
    net_loss_interest_rate_swap: -1000
  income_tax_expense_2026: -31400
  income_tax_expense_2025: -26300
  discontinued_operations_2026: 21600
  discontinued_operations_2025: 16900
recomputations:
  net_operating_profit_bridge_2026: -14200 + (-3600) + 6900 + 0 + 1600 + (-18200) # = -27500
  ifrs18_operating_profit_2026: 360400 + (-27500) # = 332900
  operating_profit_pct_change_2026: (-27500 / 360400) * 100 # = -7.6304% (-7.6%)
  net_operating_profit_bridge_2025: -12800 + 1400 + 4200 + (-2500) + (-1500) + (-15600) # = -26800 ( wait: -12800 + 1400 + 4200 - 2500 - 1500 - 15600 = -26800; 292300 - 26800 = 265500 )
  ifrs18_operating_profit_2025: 265500
  total_investing_2026: 14200 + 27500 + 9300 + 8400 + (-4100) + 12700 # = 68000
  total_investing_2025: 12800 + 22100 + 6400 + 7200 + 2700 + 9800 # = 61000
  profit_before_financing_and_tax_2026: 332900 + 68000 # = 400900
  profit_before_financing_and_tax_2025: 265500 + 61000 # = 326500
  total_financing_2026: 2300 + (-9400) + (-61300) + (-2200) + (-11800) + (-3100) + (-6900) + (-1200) # = -93600
  total_financing_2025: 0 + 3900 + (-56200) + (-1900) + (-10900) + (-2800) + (-6100) + (-1000) # = -75000
  profit_before_income_taxes_2026: 400900 + (-93600) # = 307300
  profit_before_income_taxes_2025: 326500 + (-75000) # = 251500
  profit_from_continuing_operations_2026: 307300 + (-31400) # = 275900
  profit_from_continuing_operations_2025: 251500 + (-26300) # = 225200
  ifrs18_profit_for_year_2026: 275900 + 21600 # = 297500 (Matches IAS 1: 297500 == 297500 PASS)
  ifrs18_profit_for_year_2025: 225200 + 16900 # = 242100 (Matches IAS 1: 242100 == 242100 PASS)

Step 1 — Presentation Reclassification Journal Entries (FY2026 & FY2025)

31 Dec 2026 — Reclassify Investment Property Rental Income from Operating to Investing — driving rule: IFRS 18.53(c), B45
  Dr Other operating income (IAS 1 Operating bucket)                  14,200 (FY2025: 12,800)
    Cr Rental income from investment property (IFRS 18 Investing)       14,200 (FY2025: 12,800)
  (Memo: Note 7 breakdown; investment property generates returns independently of manufacturing; Debits = Credits = 14,200)

31 Dec 2026 — Allocate "Other gains — net" components to Operating and Financing — driving rule: IFRS 18.52, 60(c), B47, B74
  Dr Other gains — net (IAS 1 unallocated bucket)                      5,600 (FY2025: 3,100)
  Dr Net loss on commodity forward contracts (IFRS 18 Operating)       3,600 (FY2025: Cr 1,400)
    Cr Gain on disposal of PP&E (IFRS 18 Operating)                      6,900 (FY2025: 4,200)
    Cr Gain on modification of borrowings (IFRS 18 Financing)            2,300 (FY2025: 0; plus FY2025 Dr Loss on disposal of intangibles 2,500)
  (Memo: Note 9 breakdown; PP&E/intangible disposals and commodity forwards are Operating; debt modification is Financing; Debits = Credits = 9,200)

31 Dec 2026 — Split "Net foreign exchange differences" into Operating and Financing — driving rule: IFRS 18.B65, B66
  Dr Net FX loss on foreign-currency borrowings (IFRS 18 Financing)    9,400 (FY2025: Cr 3,900)
    Cr Net FX gain on trade balances (IFRS 18 Operating)                 1,600 (FY2025: Dr 1,500)
    Cr Net foreign exchange gain/(loss) (IAS 1 unallocated bucket)       7,800 (FY2025: Dr 2,400)
  (Memo: Note 10 & Borrowings roll-forward corroboration B16; FX follows underlying item; Debits = Credits = 9,400)

31 Dec 2026 — Reclassify Zakat outside IAS 12 scope into Operating — driving rule: IFRS 18.52, 67
  Dr Zakat expense (IFRS 18 Operating)                                18,200 (FY2025: 15,600)
    Cr Zakat (IAS 1 Tax bucket)                                         18,200 (FY2025: 15,600)
  (Memo: Note 24; Zakat assessed on net-worth base outside IAS 12 falls into Operating residual; Debits = Credits = 18,200)

Step 2 — Restated Statement of Profit or Loss (IFRS 18 Presentation)

Statement of Profit or Loss Line Item	Note	FY2026 (SAR '000)	FY2025 Restated (SAR '000)	Governing Rule / Citation
OPERATING
Revenue from contracts with customers	5	2,480,000	2,215,000	IFRS 18.52
Cost of sales	6	(1,736,000)	(1,573,000)	IFRS 18.52, 82
Gross profit (permitted additional subtotal)		744,000	642,000	IFRS 18.24, 118(a)
Selling and distribution expenses	6	(198,400)	(177,200)	IFRS 18.52, 78
General and administrative expenses	6	(156,200)	(148,900)	IFRS 18.52, 78
Research and development expenses	6	(42,000)	(36,500)	IFRS 18.52, 78
Expected credit losses on trade receivables and contract assets	11	(14,600)	(9,800)	IFRS 18.52, 75(b)(ii)
Amortisation of deferred government grants	7	6,500	6,500	IFRS 18.52
Insurance claim recoveries	7	9,700	4,900	IFRS 18.52, 41
Sale of scrap and by-products	7	5,100	4,300	IFRS 18.52
Sundry operating income	7	3,400	2,900	IFRS 18.52
Donations and social responsibility contributions	8	(4,800)	(3,600)	IFRS 18.52
Litigation provision charge	8	(3,900)	(2,800)	IFRS 18.52, B57
Other operating expenses	8	(2,600)	(2,300)	IFRS 18.52
Net gain / (loss) on commodity forward contracts (Judgement)	9	(3,600)	1,400	IFRS 18.B72–B74
Gain on disposal of property, plant and equipment	9	6,900	4,200	IFRS 18.B47
Loss on disposal of intangible assets	9	—	(2,500)	IFRS 18.B47
Net foreign exchange gain / (loss) on trade balances	10	1,600	(1,500)	IFRS 18.B65, B66(a)
Zakat (Judgement)	24	(18,200)	(15,600)	IFRS 18.52, 67
OPERATING PROFIT (Mandatory Subtotal 1)		332,900	265,500	IFRS 18.69(a), 70
INVESTING
Rental income from investment property (Judgement)	7	14,200	12,800	IFRS 18.53(c), 54, B45
Share of results of associates and joint ventures	14	27,500	22,100	IFRS 18.53(a), B43
Net fair value gain on investment property (Judgement)	13	9,300	6,400	IFRS 18.54(a), B45
Dividend income from equity investments	15	8,400	7,200	IFRS 18.53(c), 54(a)
Net fair value gain / (loss) on investments at FVTPL	16	(4,100)	2,700	IFRS 18.53(c), 54(a)
Interest income on cash, cash equivalents and short-term deposits	17	12,700	9,800	IFRS 18.53(b)–(c)
Total investing		68,000	61,000	IFRS 18.53–54
PROFIT BEFORE FINANCING AND INCOME TAXES (Mandatory Subtotal 2)		400,900	326,500	IFRS 18.69(b), 71
FINANCING
Gain on modification of borrowings	9	2,300	—	IFRS 18.59(a), 60(c)
Net foreign exchange gain / (loss) on foreign currency borrowings	10	(9,400)	3,900	IFRS 18.60, B65, B66(b)
Interest expense on borrowings	18	(61,300)	(56,200)	IFRS 18.59(a), 60(a)
Amortisation of borrowing transaction costs	18	(2,200)	(1,900)	IFRS 18.59(a), 60(a)
Interest expense on lease liabilities	18	(11,800)	(10,900)	IFRS 18.59(b), 61, B56(b)
Unwinding of discount on decommissioning provision	18	(3,100)	(2,800)	IFRS 18.59(b), 61, B56(d)
Net interest on employee end-of-service benefit obligation	18	(6,900)	(6,100)	IFRS 18.59(b), 61, B56(c)
Net loss on interest rate swap	18	(1,200)	(1,000)	IFRS 18.B72–B74
Total financing		(93,600)	(75,000)	IFRS 18.59–61
PROFIT BEFORE INCOME TAXES		307,300	251,500	IFRS 18.118(e)
INCOME TAXES
Income tax expense	24	(31,400)	(26,300)	IFRS 18.67
PROFIT FROM CONTINUING OPERATIONS		275,900	225,200	IFRS 18.118(f)
DISCONTINUED OPERATIONS
Profit from discontinued operation, net of tax	12	21,600	16,900	IFRS 18.68
PROFIT FOR THE YEAR (Mandatory Total — Invariant)		297,500	242,100	IFRS 18.69(c), 72

Step 3 — Transition Reconciliation / Allocation Matrix for Comparative Period FY2025 (IFRS 18.C3)

IAS 1 Line Item as Originally Presented (FY2025, SAR '000)	IAS 1 Presented	Operating	Investing	Financing	Income Taxes	Discontinued	IFRS 18 Row Total	Row Tie-Out
Revenue	2,215,000	2,215,000	—	—	—	—	2,215,000	PASS (0)
Cost of sales	(1,573,000)	(1,573,000)	—	—	—	—	(1,573,000)	PASS (0)
Selling and distribution expenses	(177,200)	(177,200)	—	—	—	—	(177,200)	PASS (0)
General and administrative expenses	(148,900)	(148,900)	—	—	—	—	(148,900)	PASS (0)
Research and development expenses	(36,500)	(36,500)	—	—	—	—	(36,500)	PASS (0)
Impairment loss on trade receivables & contract assets	(9,800)	(9,800)	—	—	—	—	(9,800)	PASS (0)
Other operating income	31,400	18,600	12,800	—	—	—	31,400	PASS (0)
Other operating expenses	(8,700)	(8,700)	—	—	—	—	(8,700)	PASS (0)
Share of results of associates and joint ventures	22,100	—	22,100	—	—	—	22,100	PASS (0)
Dividend income	7,200	—	7,200	—	—	—	7,200	PASS (0)
Interest income	9,800	—	9,800	—	—	—	9,800	PASS (0)
Net fair value gain on investment property	6,400	—	6,400	—	—	—	6,400	PASS (0)
Net fair value gain / (loss) on investments at FVTPL	2,700	—	2,700	—	—	—	2,700	PASS (0)
Finance costs	(78,900)	—	—	(78,900)	—	—	(78,900)	PASS (0)
Net foreign exchange gain / (loss)	2,400	(1,500)	—	3,900	—	—	2,400	PASS (0)
Other gains — net	3,100	3,100	—	—	—	—	3,100	PASS (0)
Zakat	(15,600)	(15,600)	—	—	—	—	(15,600)	PASS (0)
Income tax expense	(26,300)	—	—	—	(26,300)	—	(26,300)	PASS (0)
Profit from discontinued operation, net of tax	16,900	—	—	—	—	16,900	16,900	PASS (0)
Total / Category Subtotal (FY2025)	242,100	265,500	61,000	(75,000)	(26,300)	16,900	242,100	PASS (0)

Step 4 — Class B Roll-Forward Corroboration of Reclassified Amounts (FY2026, SAR '000)

• Check B7 (Lease liability interest = -11,800): Opening lease liability 219,700 + additions 44,900 − payments 62,100 − disposed with subsidiary 14,300 − closing balance 200,000 (non-current 154,000 + current 46,000) = implied interest -11,800 (PASS).
• Check B8 (EOSB net interest = -6,900): Opening EOSB 210,900 + current service cost 27,300 − benefits paid 16,800 − OCI remeasurement 5,250 − closing balance 223,050 = implied net interest -6,900 (PASS).
• Check B9 (Decommissioning unwinding = -3,100): Opening provision 68,800 + additions capitalised 5,200 − utilised 2,400 − closing balance 74,700 = implied unwinding -3,100 (PASS).
• Check B12 (Share of results of associates/JVs = +27,500): Closing carrying amount 290,900 − opening 259,900 − additions 18,000 + dividends received 12,400 + OCI share 2,100 = implied share of results +27,500 (PASS).
• Check B16 (FX on borrowings = -9,400): Opening borrowings 1,192,000 + drawdowns 286,000 − repayments 312,000 + transaction cost amortisation 2,200 − modification gain 2,300 − closing borrowings 1,175,300 (non-current 892,300 + current 283,000) = implied FX loss -9,400 (PASS).
• Cash Flow & Balance Sheet Impact: Indirect operating cash flow starts from Operating profit of SAR 332,900 (FY2025: 265,500) and generates Net cash from operating activities of SAR 484,100 (FY2025: 435,000). Rental cash received from investment property (+14,200 / +12,800), dividends received (+12,400 from associates + +8,400 from equity investments), and interest received (+12,700) sit in Investing activities (-216,800 / -287,000). Interest paid (-62,500 / -57,200) and dividends paid (-145,000 / -120,000) sit in Financing activities (-295,600 / -183,600). On the Statement of Financial Position, Goodwill of SAR 142,600 is presented on its own line separate from Other intangible assets of SAR 178,000 (FY2025: 170,000), while Total Assets of SAR 5,176,900 (FY2025: 4,984,100) and Total Equity of SAR 2,513,600 (FY2025: 2,375,200) remain unchanged.

Worked Example 2 — Management-Defined Performance Measures (MPMs) & Specified Nature-of-Expense Matrix (IFRS 18.83 & 18.123)

Client Facts

Continuing from NAIC's FY2026 financial statements:

1. Publicly communicated MPMs: In its earnings release and investor presentation, NAIC reports two non-IFRS performance subtotals:
   • MPM 1 — Adjusted operating profit: Defined by management as Operating profit before Zakat, IAS 36 impairment of PP&E, write-downs of inventories to NRV, litigation provision charges, and insurance claim recoveries.
   • MPM 2 — EBITDA before non-recurring items: Defined as Adjusted operating profit (MPM 1) before depreciation of PP&E, depreciation of ROU assets, and amortisation of intangible assets.
2. Tax and NCI parameters (IFRS 18.123(d)–(e)): Income tax effects are determined using the applicable statutory income tax rate of 20% in the jurisdiction where each adjusting item arises (IFRS 18.B141(a)). Zakat is non-deductible and carries 0% income tax effect and 0% NCI effect (wholly-owned parent level). PP&E impairment (12,400), inventory write-downs (8,900), and insurance recoveries (-9,700) arise in a 90%-owned subsidiary (10% NCI); the litigation provision (3,900) arises in a 100%-owned subsidiary (0% NCI).
3. Functional expense presentation: NAIC presents four functional operating expense lines on the face (Cost of sales, Selling and distribution, General and administrative, and Research and development) totalling SAR 2,132,600 thousand in FY2026 (FY2025: SAR 1,935,600 thousand), triggering the mandatory single-note disclosure under IFRS 18.83.

example_id: ifrs18-naic-mpm-and-nature-matrix-fy2026
currency: "SAR '000"
inputs:
  ifrs18_operating_profit_2026: 332900
  ifrs18_operating_profit_2025: 265500
  statutory_tax_rate: 0.20
  subsidiary_nci_rate: 0.10
  mpm1_adjustments_2026:
    zakat: 18200
    impairment_ppe_ias36: 12400
    inventory_writedown_ias2: 8900
    litigation_provision: 3900
    insurance_recoveries: -9700
  mpm1_adjustments_2025:
    zakat: 15600
    impairment_ppe_ias36: 0
    inventory_writedown_ias2: 6200
    litigation_provision: 2800
    insurance_recoveries: -4900
  mpm2_da_addbacks_2026:
    depreciation_ppe: 182700
    depreciation_rou: 41900
    amortisation_intangibles: 23800
  mpm2_da_addbacks_2025:
    depreciation_ppe: 168400
    depreciation_rou: 38200
    amortisation_intangibles: 21600
  functional_operating_expenses_2026:
    cost_of_sales: 1736000
    selling_and_distribution: 198400
    general_and_administrative: 156200
    research_and_development: 42000
recomputations:
  mpm1_adjusted_operating_profit_2026: 332900 + 18200 + 12400 + 8900 + 3900 + (-9700) # = 366600
  mpm1_adjusted_operating_profit_2025: 265500 + 15600 + 0 + 6200 + 2800 + (-4900) # = 285200
  tax_effect_impairment_2026: -12400 * 0.20 # = -2480
  tax_effect_inventory_2026: -8900 * 0.20 # = -1780
  tax_effect_litigation_2026: -3900 * 0.20 # = -780
  tax_effect_insurance_2026: 9700 * 0.20 # = 1940
  total_mpm1_tax_effect_2026: 0 + (-2480) + (-1780) + (-780) + 1940 # = -3100
  nci_effect_impairment_2026: -12400 * 0.10 # = -1240
  nci_effect_inventory_2026: -8900 * 0.10 # = -890
  nci_effect_insurance_2026: 9700 * 0.10 # = 970
  total_mpm1_nci_effect_2026: 0 + (-1240) + (-890) + 0 + 970 # = -1160
  mpm2_ebitda_before_non_recurring_2026: 366600 + 182700 + 41900 + 23800 # = 615000
  mpm2_ebitda_before_non_recurring_2025: 285200 + 168400 + 38200 + 21600 # = 513400
  total_functional_expenses_2026: 1736000 + 198400 + 156200 + 42000 # = 2132600
  total_specified_five_natures_2026: 372000 + 182700 + 41900 + 23800 + 12400 + 8900 # = 641700
  total_other_natures_2026: 1205000 + 74300 + 61200 + 33500 + 28700 + 19600 + 9800 + 58800 # = 1490900
  nature_matrix_grand_total_2026: 641700 + 1490900 # = 2132600 (Matches functional total 2132600 PASS)

Step 1 — Single-Note Disclosure of Management-Defined Performance Measures (IFRS 18.122–123)

MPM Reconciliation Line Item (SAR '000)	FY2026 Amount	FY2026 Income Tax Effect (20% Statutory)	FY2026 NCI Effect (10% Sub Share)	FY2025 Restated Amount	Governing Citation
Operating profit (IFRS 18 most directly comparable subtotal)	332,900			265,500	IFRS 18.69(a), 118, 123(c)
Add: Zakat (assessed on net-worth base; non-deductible)	18,200	—	—	15,600	IFRS 18.123(c)–(d)
Add: Impairment loss on property, plant and equipment (IAS 36)	12,400	(2,480)	(1,240)	—	IFRS 18.123(c)–(d)
Add: Write-down of inventories to net realisable value (IAS 2)	8,900	(1,780)	(890)	6,200	IFRS 18.123(c)–(d)
Add: Litigation provision charge (IAS 37)	3,900	(780)	—	2,800	IFRS 18.123(c)–(d)
Less: Insurance claim recoveries	(9,700)	1,940	970	(4,900)	IFRS 18.123(c)–(d)
Adjusted operating profit (MPM 1)	366,600	(3,100)	(1,160)	285,200	IFRS 18.117, 123
Add: Depreciation of property, plant and equipment	182,700	(Note 1)	(Note 1)	168,400	IFRS 18.123(c)
Add: Depreciation of right-of-use assets	41,900	(Note 1)	(Note 1)	38,200	IFRS 18.123(c)
Add: Amortisation of intangible assets	23,800	(Note 1)	(Note 1)	21,600	IFRS 18.123(c)
EBITDA before non-recurring items (MPM 2)	615,000			513,400	IFRS 18.117, 118(b), 123

(Note 1: Alternatively, MPM 2 can be reconciled directly to the IFRS 18.118(b) OPBDA subtotal of 332,900 + 182,700 + 41,900 + 23,800 + 12,400 = 593,700, in which case only the remaining non-OPBDA reconciling items — Zakat 18,200, inventory write-down 8,900, litigation 3,900, and insurance recoveries -9,700 — require tax and NCI effects).

Step 2 — Mandatory Single-Note Analysis of Operating Expenses by Nature and Function (IFRS 18.83, FY2026, SAR '000)

Expense Nature Category (Bold = Mandatory per IFRS 18.83)	Cost of Sales	Selling & Distribution	General & Admin	Research & Development	FY2026 Total	FY2025 Total
Employee benefits (IAS 19)	224,900	62,000	70,100	15,000	372,000	341,500
Depreciation of property, plant and equipment (IAS 16)	164,700	6,000	9,000	3,000	182,700	168,400
Depreciation of right-of-use assets (IFRS 16)	20,900	12,000	8,000	1,000	41,900	38,200
Amortisation of intangible assets (IAS 38)	12,800	2,000	6,000	3,000	23,800	21,600
Impairment losses on PP&E (IAS 36)	12,400	—	—	—	12,400	—
Write-down of inventories to NRV (IAS 2)	8,900	—	—	—	8,900	6,200
Subtotal — Five Specified Natures (IFRS 18.83)	444,600	82,000	93,100	22,000	641,700	575,900
Raw materials and consumables used	1,160,000	25,000	—	20,000	1,205,000	1,096,000
Utilities and energy	68,300	2,000	4,000	—	74,300	67,900
Freight and distribution	8,200	53,000	—	—	61,200	55,400
Repairs and maintenance	27,500	2,000	4,000	—	33,500	30,100
Marketing and advertising	—	28,700	—	—	28,700	25,300
Professional and consultancy fees	2,600	—	17,000	—	19,600	17,800
Insurance	4,800	1,000	4,000	—	9,800	8,900
Other operating expenses by nature	20,000	4,700	34,100	—	58,800	58,300
Total Operating Expenses in Functional Lines (Tie-Out)	1,736,000	198,400	156,200	42,000	2,132,600	1,935,600