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 in the amount of EUR 76,615 thousand (2021: EUR 108,386 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, 2022, reverse factoring liabilities in the amount of EUR 22,538 thousand are recognized (Dec 31, 2021: EUR 18,307 thousand).  NOTE 21. (E) ‘TRADE AND OTHER PAYABLES’. The cash flows from the trade receivables sold as part of the factoring and ABS programs are shown under the cash flow from operating activities as this corresponds to the economic substance of the transactions.

The cash flows from the reverse factoring programs for the settlement of the original trade accounts payable are presented under cash flow from operating activities, as this corresponds to the economic substance of the transactions.

Interest payments of EUR 767 thousand (2021: EUR 619 thousand) in connection with the factoring, ABS and reverse factoring programs are included in cash flows from financing activities.

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’.

The cash inflow from operating activities includes payments for share-based payments in the amount of EUR 579 thousand (2021: EUR 365 thousand), which resulted from the payment from the STI for the Management Board of NORMA Group in the current fiscal year (2021: cash compensation of the Matching Stock Program).

The correction of expenses due to measurement of derivatives in the amount of EUR 5,036 thousand (2021: income in the amount of EUR 1,804 thousand) relates to fair value gains and losses recognized within the income statement assigned to the cash flows from financing activities.

The restated other non-cash income (-) / expenses (+) include income from the currency translation of external financing liabilities and intercompany monetary items in the amount of EUR -5,317 thousand (2021: expenses in the amount of EUR 109 thousand).

Furthermore, non-cash income/expenses in fiscal year 2022 include non-cash interest expenses from the application of the effective interest method in the amount of EUR 206 thousand (2021: EUR 254 thousand) and income from share-based payments in the amount of EUR 2 thousand (2021: expenses in the amount of EUR 406 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 44,485 thousand (2021: net cash outflows in the amount of EUR 45,157 thousand).

Of the investments in property, plant and equipment as well as intangible assets in the amount of EUR 53,177 thousand (2021: EUR 47,435 thousand), EUR 36,530 thousand 2021: EUR 29,653 thousand) relate to expenses for the expansion of operating capacity and EUR 16,647 thousand (2021: EUR 17,782 thousand) to expenses for the maintenance as well as for the improvement of operating capacity or processes.

Cash flows from financing activities include payments for dividends to the shareholders of NORMA Group SE in the amount of EUR 23,897 thousand (2021: EUR 22,304 thousand), for interest (2022: EUR 11,106 thousand; 2021: EUR 10,093 thousand) as well as repayments from derivatives in the amount of EUR 5,364 thousand (2021: repayments in the amount of EUR 279 thousand).

Furthermore, net payments of loans in the amount of EUR 1,813 thousand (2021: net payments in the amount of EUR 25,275 thousand)  NOTE 5. (C) ‘LIQUIDITY RISKS’, proceeds from liabilities from ABS and factoring in the amount of EUR 1,736 thousand (2021: repayments in the amount of EUR 409 thousand) and repayments of lease liabilities in the amount of EUR 13,941 thousand (2021: EUR 10,497 thousand) are reported under cash flows from financing activities.  NOTE 20 ‘LEASES’ and 21. (E) ‘FINANCIAL LIABILITIES AND NET DEBT’

In the same period of the previous year, cash flows from financing activities also included repayments of purchase price liabilities in the amount of EUR 2,236 thousand.

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 163,726 thousand on December 31, 2022 (Dec 31, 2021: EUR 179,276 thousand), as well as cash equivalents with a value of EUR 4,944 thousand (Dec 31, 2021: EUR 6,443 thousand ).

Cash from China, India, Russia, Brazil, Korea and Malaysia (Dec 31, 2022: EUR 41,317 thousand, Dec 31, 2021: EUR 61,669 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.