The expected 2024 income tax rate for CPH Group AG amounted to 32.8 % (prior year: 15.4 %). This is the weighted average tax rate based on the results before taxes and individual tax rates for each group company in the year under review. The change in the expected income tax rate is due to the profit/loss situation and to changes in the tax rates at the various group companies. The expected 2024 income tax rate for CPH Group AG excluding the spun-off Paper Division amounted to 17.8 % (prior year: 17.4 %).

The difference between the expected income tax expense and the income tax expense disclosed in the income statement is largely attributable in both the year under review and the prior year to the impact of non-capitalized tax loss carry forwards (see also Note 15, Financial assets).

The calculation of deferred income taxes was based on expected local tax rates at individual group companies, which averaged 14.7 % (prior year: 13.0 %).

Non-capitalized tax loss carry forwards decreased in the year under review from CHF 7.4 million to CHF 1.5 million, owing primarily to the spin-off of the Paper Division. Of these, CHF 0.0 million expire within a year (prior year: CHF 0.2 million), CHF 0.8 million expire within two to seven years (prior year: CHF 6.5 million) and CHF 0.7 million are of indefinite duration (prior year: CHF 0.6 million).