21. (b) Trade receivables transferred or available for transfer

Subsidiaries of NORMA Group in the EMEA and Americas segments transfer trade receivables to external purchasers as part of factoring and ABS transactions. The details and effects of the respective programs are presented below.

a) Factoring transactions

In the factoring agreement concluded in fiscal year 2017 with a maximum receivables volume of EUR 10 million, NORMA Group subsidiaries in Germany, Poland and France sell trade receivables directly to the external buyers. Under this factoring program, receivables in the amount of EUR 4.3 million were sold as of December 31, 2024, (Dec 31, 2023: EUR 7.1 million), of which EUR 0.4 million was not paid out as purchase price retentions held as hedging reserves and recognized under other financial assets (Dec. 31, 2023: Due to a temporary agreement, the payments under these disposals were made in full as of December 31, 2024). The requirements for derecognition

of receivables in accordance with IFRS 9.3.2.1 are met, as the receivables are transferred in accordance with IFRS 9.3.2.4 a). The audit of IFRS 9.3.2.6 shows that almost all opportunities and risks have neither been transferred nor retained. In accordance with IFRS 9.3.2.16, NORMA Group must therefore recognize the remaining continuing involvement. NORMA Group continues to service the receivables sold. Although NORMA Group is not entitled to dispose of the receivables sold in any other way than within the framework of receivables management, the Company retains control over the receivables sold as the buyers do not have the actual ability to resell the acquired receivables. NORMA Group is continuing to recognize the sold trade receivables to the extent of its continuing involvement, i.e., at the maximum amount to which it continues to be liable for the late payment risk inherent in the receivables sold. Hence, NORMA Group is recognizing a corresponding financial liability. The continuing involvement in the amount of EUR 45 thousand (Dec 31, 2023: EUR 74 thousand) was recognized under other financial liabilities and considers the maximum potential loss for NORMA Group resulting from the late payment risk of receivables sold as of the reporting date. The fair value of the guarantee / interest payments to be assumed has been recognized at 4 thousand (Dec 31, 2023: EUR 6 thousand).

In 2018, NORMA Group established a further factoring program. In the factoring agreement concluded in December 2018 with a maximum receivables volume of USD 27.5 million (2023: USD 27.5 million), a subsidiary of NORMA Group in the U.S. sold trade receivables directly to the external buyers. Under this factoring program, receivables in the amount of EUR 17.3 million were sold as of December 31, 2024 (Dec 31, 2023: EUR 12.3 million). Due to a temporary agreement, the payments under these disposals were made in full as of December 31, 2024, and December 31, 2023, of which EUR 3.5 million were not paid out as purchase price retentions held as security reserves and were recognized as other financial assets (December 31, 2023: Due to a temporary agreement, the payments for these disposals were made in full as of December 31, 2023). The requirements for derecognition of receivables in accordance with IFRS 9.3.2.1 are met, as the receivables are transferred in accordance with IFRS 9.3.2.4 a). The examination of IFRS 9.3.2.6 shows that primarily all opportunities and risks have been transferred. NORMA Group continues to service the receivables sold. Although NORMA Group is not entitled to dispose of the receivables sold in any other way than within the framework of receivables management, the Company retains control over the receivables sold as the buyers do not have the actual ability to resell the acquired receivables.

b) ABS transactions

NORMA Group concluded a revolving receivables purchase agreement with Weinberg Capital Ltd. (special purpose entity) in the fiscal year 2014. The agreed structure provides for the sale of trade receivables of NORMA Group as part of an ABS transaction and was successfully initiated in December 2014. The receivables are sold to a special purpose entity by NORMA Group. As part of this asset-backed securities (ABS) program with a volume of up to EUR 20.0 million domestic NORMA Group companies sold receivables in the amount of EUR 8.6 million as of December 31, 2024 (Dec 31, 2023: EUR 9.5 million), of which EUR 0.4 million (Dec 31, 2023: EUR 0.5 million) as purchase price retentions, which are held as security reserves, were not paid out and were recognized under other financial assets. The basis for the transaction is the assignment of trade receivables of individual NORMA Group companies to a program special purpose entity as part of a silent assignment. According to IFRS 10, this program special purpose entity is not to be consolidated, as NORMA Group is not assigned any decision-making power, nor is there any material self-interest or link between decision-making power and the variability of returns from the program special purpose entity. The requirements for derecognition of receivables in accordance with IFRS 9.3.2.1 are met, as the receivables are transferred in accordance with IFRS 9.3.2.4 a). The audit of IFRS 9.3.2.6 shows that almost all opportunities and risks have neither been transferred nor retained. In accordance with IFRS 9.3.2.16, NORMA Group must therefore recognize the remaining continuing involvement.

A continuing involvement in the amount of EUR 166 thousand (Dec 31, 2023: EUR 188 thousand) was recognized under other financial liabilities and comprises the maximum amount that NORMA Group might have to repay under the assumed default guarantee and the expected interest payments until receipt of payment in respect of the carrying amount of the receivables transferred. The fair value of the guarantee or of the interest payments to be assumed was included in the carrying amount and recognized in profit or loss under other liabilities in the amount of EUR 138 thousand (Dec 31, 2023: EUR 152 thousand).

NORMA Group entered into another revolving receivables purchase agreement (RPA) with Weinberg Capital Ltd. (program special purpose entity) in fiscal year 2018 for the sale of trade receivables. The agreed structure provides for the sale of trade receivables of NORMA Group as part of an ABS transaction and was successfully initiated in December 2018. The receivables are sold to a special purpose entity by NORMA Group. As part of this ABS program with a volume of up to USD 20.0 million, US NORMA Group companies sold receivables in the amount of EUR 11.7 million as of December 31, 2024 (Dec 31, 2023: EUR 11.4 million), of which EUR 0.6 million (Dec 31, 2023: EUR 0.7 million) were not paid out as purchase price retentions, but rather held as security reserves million (December 31, 2023: EUR 0.7 million) as purchase price retentions, which are held as security reserves, were not paid out and were recognized under other financial assets. The basis for the transaction is the assignment of trade receivables of individual NORMA Group companies to a program special purpose entity as part of a silent assignment. According to IFRS 10, this program special purpose entity is not to be consolidated, as NORMA Group is not assigned any decision-making power, nor is there any material self-interest or link between decision-making power and the variability of returns from the program special purpose entity.

The requirements for derecognition of receivables in accordance with IFRS 9.3.2.1 are met, as the receivables are transferred in accordance with IFRS 9.3.2.4 a). The audit of IFRS 9.3.2.6 shows that almost all opportunities and risks have neither been transferred nor retained. In accordance with IFRS 9.3.2.16, NORMA Group must therefore recognize the remaining continuing involvement.

A continuing involvement in the amount of EUR 682 thousand (Dec 31, 2023: EUR 750 thousand) was recognized under other financial liabilities and comprises the maximum amount that NORMA Group may have to repay under the assumed default guarantee and the expected interest payments until receipt of payment in respect of the carrying amount of the receivables transferred. The fair value of the guarantee or of the interest payments to be assumed was included in the carrying amount and recognized under other liabilities in the amount of EUR 194 thousand (Dec 31, 2023: EUR 190 thousand).

ii. Trade receivables available for transfer

In the opinion of the Group, trade receivables included in these programs but not yet disposed of at the end of the reporting period cannot be allocated to either the “hold” or the “hold and sell” business models. They are therefore included in the fair value through profit and loss (FVTPL) category.

Trade receivables held for sale as part of the factoring and ABS transaction and measured at fair value through profit or loss have short-term maturities. In addition, the calculated credit risk of the counterparty is not material, therefore the carrying amounts at the reporting date correspond to their fair values.