30. Information on the consolidated statement of cash flows

In the statement of cash flows, a distinction is made between cash flows from operating activities, investing activities and financing activities.

Net cash provided by operating activities is derived indirectly from profit for the period. The profit for the period is adjusted to eliminate non-cash expenses such as depreciation and amortization as well as expenses and payments for which the cash effects are investing or financing cash flows and to eliminate other non-cash expenses and income. Net cash provided by operating activities of EUR 108.386 thousand (2020: EUR 133.542 thousand) represents changes in current assets, provisions and liabilities (excluding liabilities in connection with financing activities).

As in the prior year, the Group participates in a reverse factoring program, a factoring program and an ABS program. Liabilities in the reverse factoring program are reported under trade and other payables. As of December 31, 2021, reverse factoring liabilities in the amount of EUR 18.307 thousand are recognized (Dec 31, 2020: EUR 15.713 thousand). Note 21. (E) ‘Trade and other payables’ The cash flows from the reverse factoring, the factoring and the ABS program are shown under the cash flow from operating activities as this corresponds to the economic substance of the transactions.

The total amount of trade receivables sold within the factoring and ABS program can be found in Note 21. (B) ‘Trade receivables available for transfer’.

Net cash provided by operating activities includes in 2021 cash outflows from the payments of the cash-settled share-based payments in the amount of EUR 1.503 thousand (2020: EUR 90 thousand), which result from the Matching-Stock-Program (MSP) for NORMA Group Board Members (2020: LTI cash remuneration for NORMA Group employees).

The correction of expenses due to measurement of derivatives in the amount of EUR 1.804 thousand (2020: income in the amount of EUR 303 thousand) relates to fair value gains and losses recognized within the income statement assigned to the cash flows from financing activities.

Other non-cash income (–) / expenses (+) in net cash provided by operating activities mainly include foreign exchange rate gains and losses on external debt and intragroup monetary items in the amount of EUR 109 thousand (2020: EUR 149 thousand).

Furthermore, other non-cash income (–) / expenses (+) include non-cash interest expenses from the amortization of accrued costs, amounting to EUR 254 thousand (2020: EUR 282 thousand) and expenses for share-based payment transactions in the amount of EUR 406 thousand (2020: EUR 0 thousand).

Cash flows resulting from interest paid are disclosed as cash flows from financing activities.

Cash flows from investing activities include net cash outflows from the acquisition and disposal of property, plant and equipment and intangible assets amounting to EUR 45.157 thousand (2020: EUR 39.088 thousand) including the change (increase (-) / decrease (+)) of liabilities from investments in property, plant and equipment and intangible assets amounting to EUR -787 thousand (2020: EUR -1.831 thousand). From the investments in non-current assets of EUR 47.435 thousand (2020: EUR 41.249 thousand), expenditures in the amount of EUR 29.653 thousand (2020: EUR 23.650 thousand) relate to growth and expenditures amounting to EUR 17.782 thousand (2020: EUR 17.599 thousand) to maintenance and continuous improvements.

Cash flows from financing activities mainly comprise outflows resulting from the payment of the dividend to shareholders of NORMA Group SE, amounting to EUR 22.304 thousand (2020: EUR 1.274 thousand), cash outflows resulting from interest paid (2021: EUR 10.093 thousand; 2020: EUR 12.880 thousand) as well as repayments of derivatives in the amount of EUR 279 thousand (2020: repayments of EUR 14 thousand).

Furthermore, net repayments for loans amounting to EUR 25.275 thousand (2020: net repayments of EUR 49.092 thousand) Note 5. (c) ‘Liquidity risks’, repayment of purchase price liabilities in the amount of EUR 2,236 thousand (2020: EUR 0 thousand), repayments for liabilities of ABS and factoring in the amount of EUR 409 thousand (2020: repayments of EUR 7.137 thousand) and repayments for lease liabilities in the amount of EUR 10.497 thousand (2020: EUR 10.012 thousand), disclosed as cash flows from financing activities. Note 20 ‘leases’ and 21. (e) ‘Financial liabilities and net debt’

The changes in balance sheet items that are presented in the Consolidated Statement of Cash Flows cannot be derived directly from the balance sheet, as the effects of currency translation are non-cash transactions and changes in the consolidated group are shown directly in the net cash used in investing activities.

Cash is comprised of cash on hand and demand deposits of EUR 179.276 thousand on December 31, 2021 (Dec 31, 2020: EUR 180.938 thousand), as well as cash equivalents with a value of EUR 6.443 thousand (Dec 31, 2020: EUR 4.171 thousand).

Cash from China, India, Russia, Brazil, Korea and Malaysia (Dec 31, 2021: EUR 61,669 thousand, Dec 31, 2020: EUR 47,268 thousand) cannot currently be distributed due to restrictions on capital movements.

Reconciliation of debt movements to cash flows from financing activities

The following table represents the reconciliation from the opening balance sheet values of the financial statements of debt arising from financing activities for the relevant closing balance sheet items and which led to changes in equity.