29. 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. The cash inflow from operating activities in the amount of EUR 118,912 thousand (2022: EUR 76,615 thousand), the changes in current assets, provisions and liabilities (excluding liabilities in connection with financing activities) are shown.

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 at December 31, 2023, liabilities in the amount of EUR 18,620 thousand (Dec 31, 2022: EUR 22,538 thousand) from reverse factoring programs are recognized. NOTE 21. (E) FINANCIAL LIABILITIES AND NET DEBT. 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 in the amount of EUR 1,062 thousand (2022: EUR 767 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 programs and the 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 530 thousand (2022: EUR 579 thousand), resulting from the payment from the STI for the Management Board of NORMA Group in the current fiscal year (2022: payment from the STI for the Management Board).

The correction included in the cash inflow from operating activities for expenses from the measurement of hedging derivatives in the amount of EUR 1,036 thousand (2022: expenses in the amount of EUR 5,036 thousand) relates to the change in the fair value of foreign currency derivatives recognized in profit or loss, which are allocated to 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 643 thousand (2022: income in the amount of EUR 5,317 thousand).

Furthermore, non-cash (-) income/expenses (+) in the fiscal year 2023 include non-cash interest expenses from the application of the effective interest method in the amount of EUR 240 thousand (2022: EUR 206 thousand) and

expenses from share-based payments in the amount of EUR 261 thousand (2022: income in the amount of EUR 2 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 59,761 thousand (2022: net cash outflows in the amount of EUR 44,485 thousand).

Of the investments made in property, plant and equipment and intangible assets in the fiscal year amounting to EUR 61,335 thousand (2022: EUR 53,177 thousand), EUR 40,823 thousand 2022: EUR 36,530 thousand) relate to expenses for the expansion of operating capacity and EUR 20,512 thousand (2022: EUR 16,647 thousand) to expenses for the maintenance and improvement of operating capacity and processes.

Cash flows from financing activities include payments for dividends to the shareholders of NORMA Group SE in the amount of EUR 17,524 thousand (2022: EUR 23,897 thousand), for interest (2023: EUR 19,570 thousand; 2022: EUR 11,106 thousand) and repayments from derivatives in the amount of EUR 1,862 thousand (2022: repayments in the amount of EUR 5,364 thousand).

In addition, the net payments of loans in the amount of EUR 5,176 thousand (2022: net payments of loans EUR 1,812 thousand) NOTE 5. (C) LIQUIDITY RISKS, repayments of liabilities from ABS and factoring in the amount of EUR 1,544 thousand (2022: payments in the amount of EUR 1,735 thousand) and the repayment of lease liabilities in the amount of EUR 12,268 thousand (2022: EUR 13,941 thousand) are reported under cash flow 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.

As at December 31, 2023, cash and cash equivalents comprised cash and demand deposits in the amount of EUR  161,485 thousand (Dec 31, 2022: EUR 163,726 thousand) and cash equivalents in the amount of EUR 3,722 thousand (Dec 31, 2022: EUR 4,944 thousand ).

Means of payment in Serbia, China, India, Russia, Brazil, South Korea, Thailand and Malaysia (Dec 31, 2023: EUR 41,121 thousand, Dec 31, 2022: EUR 41,317 thousand) cannot currently be distributed due to capital movement restrictions.

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.