Change of accounting framework

The Board of Directors of dormakaba Holding Ltd. has decided that the Group’s consolidated financial statements for the year ending 30 June 2027 will be prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (IASB). The date of transition to IFRS is effective 1 July 2025, being the beginning of the earliest period for which full IFRS comparative information is presented. Up to and including the financial year ended 30 June 2026, the consolidated financial statements have been prepared in accordance with Swiss GAAP FER.

This note explains the principal adjustments and the exemptions the Group expects to make, and apply respectively, in restating its Swiss GAAP FER financial statements, including the statement of financial position as at 1 July 2025 and the financial statements as of, and for, the year ended 30 June 2026.

The financial information in this chapter has been restated based on IFRS Accounting Standards effective at the report release date, including the early adoption of IFRS 18 Presentation and Disclosure in Financial Statements. The Group’s first audited set of consolidated financial statements under IFRS Accounting Standards will be published for the year ending 30 June 2027 and will reflect the standards applicable at that date. Accordingly, the information presented below is preliminary, unaudited, and may be subject to change.

Significant accounting judgments, estimates and assumptions

The estimates made under IFRS Accounting Standards at the transition date and at 30 June 2026 are consistent with Swiss GAAP FER estimates on the same dates, except for adjustments reflecting differences in accounting policies. There are described in more detail in the note about this report (5.1) of the consolidated financial statements in this Annual Report.

Net sales

Revenue recognition is generally consistent with Swiss GAAP FER. Expected cash discounts are recognized as a reduction of revenue when the related revenue is recognized, rather than when the cash is received. Freight costs previously presented for customer deliveries, where dormakaba acts as principal, are reclassified to cost of goods sold.

Leases

The Group applied a retrospective approach to measure lease liabilities and right-of-use assets at the date of transition to IFRS, based on the present value of the remaining lease payments discounted using the lessee’s incremental borrowing rate at that date. The Group applied the use of hindsight for determining lease terms as a practical expedient.

Right-of-use assets were assessed for impairment in accordance with IAS 36 at the date of transition to IFRS. No impairment was recognized on right-of-use assets as a result of these assessments.

Taxes

The transition to IFRS Accounting Standards resulted in deferred tax effects arising from temporary differences between the IFRS carrying amounts of assets and liabilities and their respective tax bases. The most significant deferred tax impacts relate to lease accounting adjustments, employee benefit obligations, financial instruments measured at fair value and fair value adjustments recognized in connection with business combination accounting. These deferred tax effects are recognized consistently with the underlying IFRS transition adjustments, either in retained earnings or in a separate component of equity.

Deferred tax assets are recognized for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilized. Significant management judgment is required to determine the amount of deferred tax assets that can be recognized, based on the likely timing and level of future taxable profits, together with future tax planning strategies.

Following the transition, deferred tax effects are recognized in profit or loss, other comprehensive income, or directly in equity, as appropriate.

Intangible assets

The transition to IFRS Accounting Standards resulted in restatement effects for intangible assets. The Group assessed the restated carrying amounts for impairment both at the date of transition to IFRS and at the effective date of IFRS application. No impairment was recognized as a result of these assessments.

Certain software development costs and the related accumulated amortization were derecognized at the transition date, as they did not meet the IFRS recognition criteria. Investments made during the financial year 2025/26 were recognized in the income statement, while the related amortization previously recognized under Swiss GAAP FER was reversed from the income statement.

Business combinations

For business combinations that occurred prior to the date of transition to IFRS Accounting Standards, the Group elected to apply the IFRS 1 exemption and did not restate the acquisition accounting previously reported under Swiss GAAP FER.

From the transition date, goodwill is no longer amortized but is subject to annual impairment testing. In accordance with IFRS 1, the Group has tested goodwill for impairment at the date of transition to IFRS. There was no impairment recognized on goodwill at 1 July 2025.

In addition, acquisitions completed after the date of transition have been accounted for in accordance with IFRS 3. As a result, identifiable intangible assets were recognized separately, including brands, customer relationships and intellectual property.

Goodwill arising from business combinations involving foreign operations is treated as an asset of the respective foreign operation in accordance with IAS 21. It is denominated in the functional currency of the acquired foreign operation and translated into the Group’s presentation currency at the closing rate. The resulting exchange differences are recognized in other comprehensive income and accumulated in the foreign currency translation reserve.

As the Group applied the IFRS 1 exemption to reset cumulative translation differences to zero at the transition date, only translation differences arising after the transition date, including those relating to goodwill, will be included in the gain or loss on any subsequent disposal of a foreign operation.

Financial instruments

Equity investments over which the Group does not have significant influence were designated as fair value through other comprehensive income (FVOCI) at the transition date, whereas under Swiss GAAP FER they were generally carried at cost less impairment. Subsequent fair value changes are recognized in other comprehensive income and are not recycled to profit or loss upon disposal.

The application of the expected credit loss model resulted in an adjustment at the transition date. Subsequent changes in expected credit losses during the financial year 2025/26 were recognized in the income statement.

The Group’s commodity hedging activities relate to contracts for metals and other raw materials that qualify for the IFRS 9 own-use exception.

Employee benefit liabilities

Under IFRS Accounting Standards, defined benefit pension obligations are measured using the projected unit credit method, with remeasurements recognized in other comprehensive income. Under Swiss GAAP FER, pension accounting is based on economic benefits or obligations recognized through profit or loss.

Upon transition to IFRS Accounting Standards, the Group reassessed all pension benefit plans in accordance with IAS 19 and IFRIC 14. Restatement effects arising from the application of the asset ceiling requirements and consistent application of the projected unit credit method were recognized directly in retained earnings at the transition date. The application of IFRS compared with Swiss GAAP FER had an impact on the income statement for the financial year 2025/26 and is disclosed in the reconciliation of primary financial statements.

Foreign currency translation

The Group has applied the exemption to reset cumulative translation differences to zero as at 1 July 2025. On subsequent disposal of any foreign operation, the gain or loss on disposal will include only translation differences arising after the date of transition.

Other comprehensive income

Swiss GAAP FER does not provide for a separate presentation of other comprehensive income comparable to IFRS Accounting Standards. Upon transition to IFRS Accounting Standards, items such as remeasurements of defined benefit plans, fair value changes of equity instruments designated at fair value through other comprehensive income, and foreign currency translation differences are recognized in other comprehensive income and presented as part of total comprehensive income.

Equity and comprehensive income reconciliation

A reconciliation of the Group total equity previously published under Swiss GAAP FER to the total equity under IFRS Accounting Standards is presented as follows:

CHF million	Financial year ended 30.06.2026	Opening balance 01.07.2025
Total equity - Swiss GAAP FER	524.1	401.3
Goodwill	17.5
Leasing	–5.0	–4.8
Net defined employee benefits	123.1	87.1
Capitalized software development costs	–43.7	–24.2
Other changes	4.7	–6.3
Income taxes effects	–8.3	–5.5
Total equity - IFRS Accounting Standards	612.4	447.6

A reconciliation of the Group's net income previously reported under Swiss GAAP FER to comprehensive income under IFRS Accounting Standards for the year ended 30 June 2026 is presented in the following table and explained further in the sections "Net income" and "Other comprehensive income":

	Financial year ended 30.06.2026
CHF million	Net income	Other comprehensive income	Total comprehensive income
Swiss GAAP FER	185.2
Goodwill	26.9		26.9
Leasing	–0.1		–0.1
Net defined employee benefits	–6.0	40.9	34.9
Capitalized software development costs	–20.9		–20.9
Other changes	–2.0	1.7	–0.3
Income tax effects	10.8	–9.5	1.3
IFRS Accounting Standards	193.9	33.1	227.0

Reconciliation of primary financial statements

The reconciliation tables below provide an overview of the adjustments required upon the transition from Swiss GAAP FER to IFRS Accounting Standards. These adjustments comprise both recognition and measurement differences between the two accounting frameworks as well as presentation changes resulting from the early adoption of IFRS 18. The reconciliation distinguishes between adjustments arising from the adoption of IFRS and presentation changes required by IFRS 18.

The following reconciliation tables present:

the amounts previously reported under Swiss GAAP FER;
the remeasurements required to restate in accordance with IFRS Accounting Standards;
the resulting balances under IFRS Accounting Standards;
and the presentation adjustments arising from the early adoption of IFRS 18;
resulting in the final presentation under IFRS Accounting Standards after early adoption of IFRS 18.

Consolidated income statement

Financial year ended 30 June 2026

CHF million, except share amounts

Swiss GAAP FER

IFRS Remeasure- ments

IFRS effective as per 30 June 2026

IFRS 18 Presentation adjustments

IFRS after early adoption of IFRS 18

Net sales

2,792.4

34.5

2,826.9

Net sales

Cost of goods sold

–1,636.9

–42.7

–1,679.6

Cost of goods sold

Gross margin

1,155.5

–8.2

1,147.3

Gross margin

Sales and marketing

–527.1

–8.8

–535.9

Sales and marketing

General administration

–205.1

–5.2

–210.3

General administration

Research and development

–113.7

–2.8

–116.5

Research and development

Other operating income

13.2

–0.9

12.3

Other operating income

Other operating expenses

–36.3

28.0

–8.3

–1.9

–10.2

Other operating expenses

–2.8

Foreign exchange differences

Operating profit (EBIT)

286.5

3.0

289.5

–5.6

283.9

Operating profit

1.9

Investment income

–3.7

285.8

Profit before financing and income tax

Financial expenses

–39.3

–5.1

–44.4

5.4

–39.0

Financial expenses

Financial income

2.2

–1.7

0.5

Financial income

Profit before taxes

249.4

–2.1

247.3

Profit before taxes

Income taxes

–64.2

10.8

–53.4

Income taxes

Net profit

185.2

8.7

193.9

Profit for the year

Attributable to:

Net profit attributable to the owners of the parent

97.0

101.6

Equity holders of the parent

Net profit attributable to minority interests

88.2

92.3

Non-controlling interests

Consolidated balance sheet

as at 30 June 2026

Assets


CHF million, except share amounts	Swiss GAAP FER	IFRS Remeasure- ments	IFRS effective as per 30 June 2026	IFRS 18 Presentation adjustments	IFRS after early adoption of IFRS 18
Current assets						Current assets
Cash and cash equivalents	149.1		149.1		149.1	Cash and cash equivalents
Trade receivables	486.5	–32.3	454.2		454.2	Trade receivables
		31.7	31.7		31.7	Contract assets
Inventories	470.5	–4.6	465.9		465.9	Inventories
Current income tax assets	21.1		21.1		21.1	Current income tax assets
Other current assets	80.2		80.2		80.2	Other current assets
Total current assets	1,207.4	–5.2	1,202.2		1,202.2	Total current assets
Non-current assets						Non-current assets
Property, plant, and equipment	414.3		414.3		414.3	Property, plant, and equipment
Intangible assets	222.5	–17.6	204.9	–107.0	97.9	Intangible assets (other than goodwill)
				107.0	107.0	Goodwill
		115.9	115.9		115.9	Right-of-use assets
Investments in associates	0.3		0.3		0.3	Investments in associates
		98.4	98.4		98.4	Employee benefits
Non-current financial assets	44.1	–10.7	33.4		33.4	Non-current financial assets
Deferred income tax assets	103.7	2.8	106.5		106.5	Deferred tax assets
Total non-current assets	784.9	188.8	973.7		973.7	Total non-current assets
Total assets	1,992.3	183.6	2,175.9		2,175.9	Total assets

Liabilities and equity


CHF million, except share amounts	Swiss GAAP FER	IFRS Remeasure- ments	IFRS effective as per 30 June 2026	IFRS 18 Presentation adjustments	IFRS after early adoption of IFRS 18
Current liabilities						Current liabilities
Current borrowings	23.5		23.5		23.5	Current financial liabilities
Trade payables	212.7		212.7		212.7	Trade payables
		3.2	3.2		3.2	Contract liabilities
Current income tax liabilities	37.3	6.8	44.1		44.1	Current income tax liabilities
Accrued and other current liabilities	395.2	30.4	425.6		425.6	Accrued and other current liabilities
Current provisions	45.4	–1.1	44.3		44.3	Current provisions
Total current liabilities	714.1	39.3	753.4		753.4	Total current liabilities
Non-current liabilities						Non-current liabilities
Accrued pension and other employee benefits	240.3	–37.2	203.1		203.1	Employee benefits
Deferred income tax liabilities	23.8	4.3	28.1		28.1	Deferred tax liabilities
Non-current provisions	6.3		6.3		6.3	Non-current provisions
Non-current liabilities	483.7	88.9	572.6	–93.9	478.7	Non-current financial liabilities
				93.9	93.9	Non-current liabilities
Total non-current liabilities	754.1	56.0	810.1		810.1	Total non-current liabilities
Total liabilities	1,468.2	95.3	1,563.5		1,563.5	Total liabilities
Equity						Equity
Share capital	0.4		0.4		0.4	Share capital
Additional paid-in capital	811.3		811.3		811.3	Additional paid-in capital
Retained earnings	–356.3	–36.4	–392.7		–392.7	Retained earnings
Treasury shares	–26.2		–26.2		–26.2	Treasury shares
Translation exchange differences	–89.0	91.1	2.1		2.1	Translation exchange differences
Total equity owners of the parent	340.2	54.7	394.9		394.9	Total equity holders of the parent
Minority interests	183.9	33.6	217.5		217.5	Non-controlling interests
Total equity	524.1	88.3	612.4		612.4	Total equity
Total liabilities and equity	1,992.3	183.6	2,175.9		2,175.9	Total liabilities and equity

Consolidated balance sheet

Opening balance as at 1 July 2025

Assets


CHF million, except share amounts	Swiss GAAP FER	IFRS Remeasure- ments	IFRS effective as per 30 June 2026	IFRS 18 Presentation adjustments	IFRS after early adoption of IFRS 18
Current assets						Current assets
Cash and cash equivalents	445.1		445.1		445.1	Cash and cash equivalents
Trade receivables	462.2	–26.5	435.7		435.7	Trade receivables
		25.8	25.8		25.8	Contract assets
Inventories	480.3	–5.4	474.9		474.9	Inventories
Current income tax assets	21.2	-	21.2		21.2	Current income tax assets
Other current assets	71.1		71.1		71.1	Other current assets
Total current assets	1,479.9	–6.1	1,473.8		1,473.8	Total current assets
Non-current assets						Non-current assets
Property, plant, and equipment	392.5		392.5		392.5	Property, plant, and equipment
Intangible assets	145.2	–24.2	121.0	–33.8	87.2	Intangible assets (other than goodwill)
				33.8	33.8	Goodwill
		100.9	100.9		100.9	Right-of-use assets
Investments in associates	0.3		0.3		0.3	Investments in associates
		67.7	67.7		67.7	Employee benefits
Non-current financial assets	37.7	–12.3	25.4		25.4	Non-current financial assets
Deferred income tax assets	118.9	–2.2	116.7		116.7	Deferred income tax assets
Total non-current assets	694.6	129.9	824.5		824.5	Total non-current assets
Total assets	2,174.5	123.8	2,298.3		2,298.3	Total assets

Liabilities and equity


CHF million, except share amounts	Swiss GAAP FER	IFRS Remeasure- ments	IFRS effective as per 30 June 2026	IFRS 18 Presentation adjustments	IFRS after early adoption of IFRS 18
Current liabilities						Current liabilities
Current borrowings	322.9		322.9		322.9	Current financial liabilities
Trade payables	187.5		187.5		187.5	Trade payables
		3.2	3.2		3.2	Contract liabilities
Current income tax liabilities	34.0	6.8	40.8		40.8	Current income tax liabilities
Accrued and other current liabilities	406.1	28.7	434.8		434.8	Accrued and other current liabilities
Current provisions	61.1	–1.1	60.0		60.0	Current provisions
Total current liabilities	1,011.6	37.6	1,049.2		1,049.2	Total current liabilities
Non-current liabilities						Non-current liabilities
Accrued pension and other employee benefits	246.3	–31.8	214.5		214.5	Employee benefits
Deferred income tax liabilities	21.7	–3.4	18.3		18.3	Deferred tax liabilities
Non-current provisions	13.2		13.2		13.2	Non-current provisions
Non-current liabilities	480.4	75.1	555.5	–108.7	446.8	Non-current financial liabilities
				108.7	108.7	Non-current liabilities
Total non-current liabilities	761.6	39.9	801.5		801.5	Total non-current liabilities
Total liabilities	1,773.2	77.5	1,850.7		1,850.7	Total liabilities
Equity						Equity
Share capital	0.4		0.4		0.4	Share capital
Additional paid-in capital	811.3		811.3		811.3	Additional paid-in capital
Retained earnings	–415.8	–66.8	–482.6		–482.6	Retained earnings
Treasury shares	–27.8		–27.8		–27.8	Treasury shares
Translation exchange differences	–91.1	91.1				Translation exchange differences
Total equity owners of the parent	277.0	24.3	301.3		301.3	Total equity holders of the parent
Minority interests	124.3	22.0	146.3		146.3	Non-controlling interests
Total equity	401.3	46.3	447.6		447.6	Total equity
Total liabilities and equity	2,174.5	123.8	2,298.3		2,298.3	Total liabilities and equity

Consolidated cash flow statement

Financial year ended 30 June 2026

CHF million, except share amounts

Swiss GAAP FER

IFRS Remeasure- ments

IFRS effective as per 30 June 2026

IFRS 18 Presentation adjustments

IFRS after early adoption of IFRS 18

Net profit for the reporting period

185.2

8.7

193.9

Net profit for the reporting period

Income taxes

64.2

–10.8

53.4

Income taxes

Financial income

–2.2

1.7

–0.5

Financial income

Financial expenses

39.3

5.1

44.4

–5.4

39.0

Financial expenses

–1.9

Investment income

EBIT

286.5

3.0

289.5

–5.6

283.9

Operating profit

Depreciation and amortization

109.2

–1.3

107.9

Depreciation and amortization

Interest income

0.2

–0.2

Interest expenses

–6.9

6.9

(Gain) loss on disposal of fixed assets, net

–0.4

(Gain) loss on disposal of property, plant and equipment, net

Adjustment for other non-cash and non-operational items

9.4

2.2

11.6

–3.2

8.4

Adjustment for other non-cash and non-operational items

Change in trade receivables

–22.9

0.1

–22.8

Change in trade receivable and contract assets

Change in inventories

10.2

–0.8

9.4

Change in inventories

Change in other current assets

–6.9

Change in other current assets

Change in trade payables

23.4

Change in trade payables and contract liabilities

Change in accrued pension cost

–7.9

5.9

–2.0

Change in accrued pension cost

Change in provision, accrued and other current liabilities

–34.0

0.2

–33.8

Change in provision, accrued and other current liabilities

0.9

Rental income received on investment property

Cash generated from operations

359.9

Income taxes paid

–43.8

Income taxes paid

Interest paid

–28.3

28.3

Interest received

1.9

–1.9

Net cash from operating activities

289.7

9.3

299.0

25.2

324.2

Net cash from operating activities

Cash flows from investing activities:

Purchase of property, plant, and equipment

–80.1

Purchase of property, plant, and equipment

Proceeds from sale of property, plant, and equipment

2.3

Proceeds from sale of property, plant, and equipment

Purchases of other intangible assets

–49.0

29.3

–19.7

Purchases of other intangible assets

Change in other non-current financial assets

–10.4

Purchase of financial instruments

Acquisition of subsidiaries, net of cash acquired

–77.0

1.1

–75.9

Acquisition of subsidiaries, net of cash acquired

Sale of subsidiaries, net of cash sold

0.9

Sale of subsidiaries, net of cash disposed

1.9

Interest received

Net cash used in investing activities

–213.3

30.4

–182.9

1.9

–181.0

Net cash used in investing activities

CHF million, except share amounts

Swiss GAAP FER

IFRS Remeasure- ments

IFRS effective as per 30 June 2026

IFRS 18 Presentation adjustments

IFRS after early adoption of IFRS 18

Cash flows from financing activities:

Repayment of bond

–320.0

Repayment of bond

Other proceeds from (repayment of) current borrowings, net

23.8

Other proceeds from (repayment of) current borrowings, net

Proceeds from (repayment of) current borrowings, net

–3.0

Proceeds from (repayment of) current borrowings, net

Change in other non-current liabilities

0.3

Change in other non-current liabilities

–4.4

–27.1

–31.5

Interest paid

–35.3

Repayment of principal amount of leases

Dividends paid to company’s shareholders

–38.4

Dividends paid to equity holders of parent

Dividends paid to minority shareholders

–28.5

Dividends paid to non-controlling interests

Purchase of treasury stock

–8.0

Purchase of treasury stock

Net cash flows from financing activities

–373.8

–39.7

–413.5

–27.1

–440.6

Net cash flows from financing activities

Translation exchange differences

1.4

Translation differences on cash and cash equivalents

Net increase (decrease) in cash and cash equivalents

–296.0

Net increase (decrease) in cash and cash equivalents

Cash and cash equivalents at beginning of period

445.1

Cash and cash equivalents at beginning of period

Cash and cash equivalents at end of period

149.1

Cash and cash equivalents at end of period

Net increase (decrease) in cash and cash equivalents

–296.0

Net increase (decrease) in cash and cash equivalents