10. Property, plant and equipment

The carrying amounts of all assets summarized in property, plant and equipment, are as follows:

in thousand EUR	2024	2023

Land	47 579	54 907
Forest roads	2 748	3 477
Buildings and improvements	4 709	5 299
Machinery and vehicles	7 128	7 913
Furniture and fixtures	286	296
Construction in progress	646	221
Advanced payments for PPE	701	1 138
Total carrying amounts	63 796	73 251

The Group uses different valuation methods for its assets. Beside the land in Brazil and Gabon, which is presented at fair value according to the revaluation model of IAS 16 Property, Plant and Equipment, the assets are held at cost.

The forests in Brazil are presented separately as biological assets, according to IAS 41 Agriculture and are further detailed in Note 11; as well as the leased assets, presented separately according to IFRS 16 Leases in Note 21.

a. Land at fair value

Precious Woods applies the revaluation model according to IAS 16 Property, Plant and Equipment for all its land assets. The carrying amount for those assets, if the cost model had been applied, would have been EUR 12.2 million (2023: EUR 12.9 million).

Reconciliation of carrying amount of level 2 land revaluation

in thousand EUR	2024 at Fair Value	2023 at Fair Value

At 1 January	54 907	47 715
Change in fair value	51	4 949
Reclassification from/to advanced payments for PPE	18	91
Currency effects	–7 397	2 152
At 31 December	47 579	54 907

Accounting policies

The land value is measured at fair value with any changes in value recognized in other comprehensive income under revaluation surplus.

Land revaluation Brazil and Gabon

The valuation was based on the market value. The sales comparison approach is used to determine the market value of bare land without biomass. This approach consists of comparing the subject land to similar land sold in the recent past in an open market situation, and adjusting the value for market trends. This results in a market value for the land.

In Brazil, there were no indications of a price fluctuation for land in 2024. The fair value fell due to the conversion into the consolidation currency to EUR 37.2 million. In 2023, the revaluation for the land assets in Brazil, which was performed by BDO, led to an increase of the fair value by EUR 4.9 million to EUR 44.5 million. The revaluation based on a land area of 390 328 ha. Over the years, there may be small temporary changes in the land area due to legal cases. Further information about these uncertain land titles is disclosed in Note 10 b.

In Gabon, there were no indications of a price fluctuation for land in 2024; the fair value remained stable at EUR 10.4 million, as in 2023.

The fair value measurement for the land has been categorized as a level 2 fair value based on the inputs to the valuation technique used.

b. Other assets at cost

Beside the land, all other asset categories in property, plant and equipment are held at cost.

in thousand EUR	Forest roads	Buildings and improve- ments	Machinery and vehicles	Furniture and fixtures	Construction in progress	Advanced payments for PPE	Total PPE at cost
Cost
At 1 January 2023	11 331	16 376	31 638	1 389	193	3 248	64 175
Additions	–	153	818	38	506	148	1 663
Disposals	–	–35	–218	–7	–	–	–260
Reclassifications¹	–	33	4 217	22	–479	–1 040	2 752
Currency effects	214	125	526	31	1	177	1 074
At 31 December 2023	11 545	16 652	36 981	1 473	221	2 533	69 404
Additions	–	40	2 233	54	935	23	3 285
Disposals	–	–	–897	–	–	–	–897
Reclassifications¹	–	91	–339	11	–503	–301	–1 040
Currency effects	–663	–403	–2 006	–69	–7	–394	–3 542
At 31 December 2024	10 882	16 380	35 971	1 470	646	1 861	67 209
Accumulated depreciation and impairment
At 1 January 2023	7 456	11 024	23 923	1 075	–	1 406	44 884
Charge for the year	501	274	2 266	83	–	–	3 124
Reversal of impairment	–12	–	–	–	–	–91	–103
Disposals	–	–33	–172	–7	–	–	–211
Reclassifications¹	–	–	2 657	–	–	–	2 657
Currency effects	123	88	392	26	–	80	709
At 31 December 2023	8 068	11 353	29 067	1 177	–	1 395	51 060
Charge for the year	490	608	2 506	81	–	–	3 686
Reversal of impairment	–11	–	–	–	–	–4	–15
Disposals	–	–	–846	–	–	–	–846
Reclassifications¹	–	–	–512	–17	–	–	–530
Currency effects	–414	–290	–1 371	–57	–	–231	–2 363
At 31 December 2024	8 133	11 672	28 843	1 184	–	1 160	50 992
Carrying amount
At 31 December 2023	3 477	5 299	7 913	296	221	1 138	18 344
At 31 December 2024	2 748	4 709	7 128	286	646	701	16 217
¹ The reclassifications contain also reclassifications from/to land, leasing and from spare parts (Note 21)

For certain land acquired by Precious Woods in Brazil, the land title registration is not yet finalized. These transactions are disclosed as advanced payments for property, plant and equipment at historical cost. For advanced payments for land titles with a certain risk of losing the land, an allowance is recorded based on Group Management’s estimate of the probability of not being able to prove the ownership of the land. Based on the continued efforts to clean the land titles from legal issues, Precious Woods had on the one hand not to reclassify additional land as advanced payments for property, plant and equipment (2023: EUR 0.0). On the other hand, advanced payments for property, plant and equipment have been reversed to land in the amount of EUR 17 735 (2023: EUR 90 900).

Accounting policies

In general, assets in property, plant and equipment are recorded at cost less accumulated depreciation and any impairment in value. Depreciation is applied using the straight-line method over the estimated useful life of the assets as follows:

Permanent forest roads 25 years
Buildings and improvements 3 to 25 years
Machinery and vehicles 4 to 10 years
Furniture and fixtures 5 to 10 years

The assets’ residual values and useful lives and methods of depreciation are reviewed at each financial year-end and adjusted prospectively, if appropriate.