Notes to the Consolidated Financial Statements otes to the Consolidated Financial Statements (1) General information (2) Summary of significant accounting policies (1) General information The Hilti Group (the Group) comprises the Hilti Corporation and its domestic and foreign subsidiaries. The Group supplies the worldwide construction industry with technologically leading products, systems and services that provide construction professionals with innovative solutions and superior added value. Its product range includes equipment and systems covering drilling and demolition, direct fastening, diamond and anchoring, firestop and foam, installation, measuring, screw fastening, and cutting and sanding. The Hilti Corporation is a limited liability company incorporated and domiciled in the Principality of Liechtenstein. The Group’s headquarters and the address of its registered office are at Feldkircherstrasse 100, 9494 Schaan, Liechtenstein. The Group’s principal production and research and development location is Liechtenstein with further production and research and development locations worldwide. The Group operates in over 120 countries and has over 29,000 employees worldwide. These consolidated financial statements were approved for issue by the Board of Directors on March 13, 2019. (2) Summary of significant The principal accounting policies applied in the preparation of these consolidated financial accounting policies statements are set out below. These policies have been consistently applied to both years presented, unless otherwise stated. (2.1) Basis of preparation These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS). Preparation of the financial statements in accordance with IFRS meets the requirements of Liechtenstein’s corporations law, the ‘Personen- und Gesellschaftsrecht (PGR)’. The consolidated financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain financial assets and financial liabilities (including derivative financial instruments) at fair value through profit or loss. The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Group’s accounting policies. The accounting estimates and judgments reflected in the 2018 consolidated financial statements that are critical in the context of the Group’s financial position and financial performance are explained in note (3). (2.2) Changes in accounting With effect from January 1, 2018, the following new IFRS standards were applied, using the full policies and estimates retrospective method: IFRS 9 Financial Instruments IFRS 15 Revenue from Contracts with customers year financial statements As a result of the changes in the entity’s accounting policies, prior- had to be restated. The following tables show the adjustments recognized for each individual line item. The adjustments are explained in more detail by standard below. Adoption of IFRS 9 Financial Instruments On January 1, 2018 (the date of initial application of IFRS 9), the Group’s management has assessed which business models apply to the financial assets held by the Group and has classified its financial instruments into the appropriate IFRS 9 categories. The impacts of IFRS 9 on the Groups financial statements are as follows: 2018 Financial Report | 16