Cicor changes the accounting policy for the treatment of goodwill

Media Release

Bronschhofen, June 17, 2024 – Cicor Technologies Ltd. (SIX Swiss Exchange: CICN) changes the accounting policy for the treatment of Goodwill in the consolidated financial statements.

In recent years, it has become standard practice for companies applying Swiss GAAP FER to offset goodwill against equity. For this reason, and to facilitate comparability with other stock listed companies, the Board of Directors of Cicor Technologies Ltd. (Cicor) has decided that, from January 1, 2024, goodwill from acquisitions will be offset directly against shareholders' equity at the time of acquisition, using the accounting policy choice provided in Swiss GAAP FER 30 "Consolidated financial statements". This is the consequence of the successful implementation of Cicor's growth strategy through acquisitions. The impact of theoretical capitalization and amortization, including any impairment arising from the assessment of recoverability, will be disclosed in the notes to the consolidated financial statements.

Previously goodwill was capitalized and amortized over its estimated useful life of five years. As this is a change in accounting policy, prior periods will be restated accordingly. Cicor previously reported the alternative performance measures "Core EBIT", "Core net profit" and "Core earnings per share", which excluded the amortization of goodwill and other intangible assets that were capitalized as part of an acquisition. These Core results will no longer be reported. These changes in financial reporting will simplify the communication with stakeholders and will be applied for the first time in the half-year report 2024 to be published on July 24, 2024.

The table below shows the main changes following application the new accounting policy for goodwill on the consolidated financial statements for the first six and the full twelve months 2023:

The Cicor Group is a globally active provider of full-cycle electronic solutions from research and development to manufacturing and supply chain management. Cicor’s approximately 3,200 employees at 19 locations are serving leaders from the medical, industrial and aerospace & defence industries. Cicor creates value to its customers through the combination of customer-specific development solutions, high-tech components, as well as electronic device manufacturing. The shares of Cicor Technologies Ltd. are traded at the SIX Swiss Exchange (CICN). For further information, please visit the website www.cicor.com.