21. (f) Derivative financial instruments
The derivative financial instruments are as follows:
Derivative financial instruments | T138 | |||
|---|---|---|---|---|
in EUR thousands | Dec 31, 2024 | Dec 31, 2023 | ||
Assets | Liabilities | Assets | Liabilities | |
Interest rate swaps – cash flow hedges | 3,571 | 4,466 | ||
Foreign exchange derivatives – cash flow hedges | 671 | |||
Foreign exchange derivatives – fair value hedges | 1,415 | 84 | 507 | 544 |
Total | 4,986 | 755 | 4,973 | 544 |
Less non-current portion | ||||
Foreign exchange derivatives – cash flow hedges | 172 | |||
Foreign exchange derivatives – fair value hedges | 571 | |||
Interest rate swaps – cash flow hedges | 3,571 | 4,466 | ||
Non-current portion | 4,142 | 4,638 | ||
Current portion | 844 | 755 | 335 | 544 |
Further details on the use of hedging instruments can be found in NOTE 5. FINANCIAL RISK MANAGEMENT.
i. Impacts of accounting for cash flow hedges on the earnings, assets and financial position
The impacts of foreign currency and interest rate-related hedging instruments on the earnings, assets and financial position are as follows:
The effects of cash flow hedge accounting on financial position and performance | T139 | |||||||
|---|---|---|---|---|---|---|---|---|
in EUR thousands | Net book value as of Dec 31, 2024 (Derivative financial assets [+] / Derivative financial liabilities [-]) | Nominal amount | Average hedging rate in % | Hedging ratio1 | Maturity | Change in fair value of the hedging item since Jan 1 | Change in fair value of the hedged item used as the basis for recognizing hedge ineffectiveness for the period | Book value of hedged item as of Dec 31, 2024 |
Hedging interest rate risk - interest rate swap | 67,379 | -896 | 896 | 67,379 | ||||
Interest rate swap USD | 3,571 | 67,379 | 1.41 | 1:1 | 2026 | -896 | 896 | |
in EUR thousands | Net book value as of Dec 31, 2023 (Derivative financial assets [+] / Derivative financial liabilities [-]) | Nominal amount | Average hedging rate in % | Hedging ratio1 | Maturity | Change in fair value of the hedging item since Jan 1 | Change in fair value of the hedged item used as the basis for recognizing hedge ineffectiveness for the period | Book value of hedged item as of Dec 31, 2023 |
Hedging interest rate risk - interest rate swap | 4,466 | 63,348 | -1,696 | 1,696 | 63,348 | |||
Interest rate swap USD | 4,466 | 63,348 | 1.41 | 1:1 | 2026 | -1,696 | 1,696 | |
1_The forward foreign exchange contracts are denominated in the same currency as the highly probable future transactions, therefore the hedge ratio is 1:1. | ||||||||
Hedging currency rate risks through cash flow hedges | T140 | |||||||
|---|---|---|---|---|---|---|---|---|
in EUR thousands | Nominal amount | Net book value as of Dec 31, 2024 | Balance sheet item that contains a hedging instrument | Other comprehensive income | Balance sheet | |||
Assets | Liabilities | Changes in the value of the hedging instrument | Costs of hedging | Amount reclassified from the reserve to the cost of inventories | Hedging costs reclassified from the reserve to the cost of inventories | |||
Foreign exchange risk | ||||||||
Forward exchange contracts - Hedging of production costs for inventories | 11,268 | 671 | Derivative financial liabilities | -1,084 | 299 | -160 | 46 | |
The effective part as well as the accrued and recognized costs of hedging recognized in other comprehensive income excluding taxes developed as follows:
Change in hedging reserve before tax | T141 | |||
|---|---|---|---|---|
in EUR thousands | Reserve for costs of hedging | Spot component of foreign exchange derivatives | Interest rate swaps | Total |
Balance as of Jan 1, 2023 | 6,162 | 6,162 | ||
Reclassification to profit or loss | -2,527 | -2,527 | ||
Net fair value changes | 831 | 831 | ||
Balance as of Dec 31, 2023 | 4,466 | 4,466 | ||
Reclassification to profit or loss | -2,626 | -2,626 | ||
Reclassification to cost of sales for inventories | -46 | 160 | 114 | |
Net fair value changes | 299 | -1,084 | 1,731 | 946 |
Balance as of Dec 31, 2024 | 253 | -924 | 3,571 | 2,900 |
Amounts due to interest rate swaps recognized in the hedging reserve in equity will be released in profit or loss before the repayment of the loans. The gains and losses from foreign currency derivatives recognized in the hedge reserve in equity are short-term and are effectively recognized in profit or loss within one year.
In fiscal years 2024 and 2023, no ineffective portion of cash flow hedges relating to foreign exchange derivatives and interest rate swaps was recognized in profit or loss.
ii. Impacts of accounting for fair value hedges on the earnings, assets and financial position
The impacts of foreign currency-related hedging instruments on the earnings, assets and financial position were as follows:
The effects of fair value hedge accounting on financial position and performance | T142 | ||||||
|---|---|---|---|---|---|---|---|
in EUR thousands | Net book value as of Dec 31, 2024 (Derivative financial assets [+] / Derivative financial liabilities [-]) | Nominal amount (+ Buy / - Sell) | Average hedging rate | Hedging ratio | Maturity | Change in fair value of the hedging item since Jan 1 | Change in fair value of the hedged item used as the basis for recognizing hedge ineffectiveness for the period |
Currency risk hedging FVH | |||||||
Currency forwards JPY – SGD | -10 | 153 | 107.87 | 1:11 | ≤ 1 year | -4 | 4 |
Currency forwards CZK – EUR | -14 | -1,985 | 25.44 | 1:12 | ≤ 1 year | -8 | 8 |
Currency forwards SGD – EUR | 79 | 2,541 | 1.,45 | 1:12 | ≤ 1 year | 86 | -86 |
Currency forwards SGD – EUR | 628 | 24,569 | 1.46 | 1:12 | ≤ 1 year | 595 | -595 |
Currency forwards SEK – EUR | -59 | 4,320 | 11.3 | 1:12 | ≤ 1 year | -52 | 52 |
Currency forwards SEK – EUR | -2 | 6,981 | 11.39 | 1:12 | ≤ 1 year | 3 | -3 |
Currency forwards GBP– EUR | 133 | 12,060 | 0.84 | 1:12 | ≤ 1 year | 108 | -108 |
Currency forwards CHF – EUR | 5 | -1,062 | 0.92 | 1:12 | ≤ 1 year | — | — |
Currency forwards CZK – EUR | 571 | -25,337 | 25.23 | 1:12 | 2026 | 584 | -584 |
1_The foreign exchange forward contracts for USD-EUR hedging are denominated in the same currency and have the same volume as the hedged net foreign exchange risk from external USD loans and intra-group monetary items in USD, therefore the hedge ratio is 1:1. 2_The forward exchange contracts are denominated in the same currency and volume as the hedged risk from intra-group monetary items, therefore the hedge ratio is 1:1. | |||||||
The effects of fair value hedge accounting on financial position and performance | T143 | ||||||
|---|---|---|---|---|---|---|---|
in EUR thousands | Net book value as of Dec 31, 2023 (Derivative financial assets [+] / Derivative financial liabilities [-]) | Nominal amount (+ Buy / - Sell) | Average hedging rate | Hedging ratio | Maturity | Change in fair value of the hedging item since Jan 1 | Change in fair value of the hedged item used as the basis for recognizing hedge ineffectiveness for the period |
Currency risk hedging FVH | |||||||
Currency forwards JPY – SGD | -16 | 160 | 96.6 | 1:11 | ≤ 1 year | -10 | 10 |
Currency forwards CZK – EUR | 35 | -2,022 | 24.47 | 1:12 | ≤ 1 year | 81 | -81 |
Currency forwards SGD – EUR | 77 | 6,854 | 1.47 | 1:12 | ≤ 1 year | 31 | -31 |
Currency forwards SGD – EUR | 52 | 3,084 | 1.48 | 1:12 | ≤ 1 year | 44 | -44 |
Currency forwards SGD – EUR | 35 | 6,716 | 1.46 | 1:12 | ≤ 1 year | 26 | -26 |
Currency forwards SGD – EUR | -38 | 7,196 | 1.45 | 1:12 | ≤ 1 year | -52 | 52 |
Currency forwards SEK – EUR | 71 | 3,154 | 11.36 | 1:12 | ≤ 1 year | 67 | -67 |
Currency forwards SEK – EUR | 22 | 2,163 | 11.22 | 1:12 | ≤ 1 year | 18 | -18 |
Currency forwards PLN – EUR | -460 | -7,489 | 4.67 | 1:12 | ≤ 1 year | -606 | 606 |
Currency forwards PLN – EUR | 43 | 1,728 | 4.49 | 1:12 | ≤ 1 year | 36 | -36 |
Currency forwards CHF – EUR | -29 | -1,080 | 0.94 | 1:12 | ≤ 1 year | -39 | 39 |
Currency forwards CZK – EUR | 172 | -25,809 | 25.23 | 1:12 | 2026 | 124 | -124 |
1_The foreign exchange forward contracts for USD-EUR hedging are denominated in the same currency and have the same volume as the hedged net foreign exchange risk from external USD loans and intra-group monetary items in USD, therefore the hedge ratio is 1:1. 2_The forward exchange contracts are denominated in the same currency and volume as the hedged risk from intra-group monetary items, therefore the hedge ratio is 1:1. | |||||||
An overview of the gains and losses arising from the hedging of fair value changes that were recognized in the financial result is shown below:
Gains and losses fair value hedges | T144 | |
|---|---|---|
in EUR thousands | 2024 | 2023 |
Losses (-) / Gains (+) on hedged items | -1,379 | 503 |
Losses (-) / Gains (+) on hedging instruments | 1,342 | -1,786 |
-37 | -1,283 |
21. (g) Financial instruments measured in the Statement of Financial Position at fair value
The tables below provide an overview of the classification of financial assets and liabilities of NORMA Group measured at fair value in the fair value hierarchy under IFRS 13 as of December 31, 2024, as well as December 31, 2023:
Financial instruments - fair value hierarchy | T145 | |||
|---|---|---|---|---|
in EUR thousands | Level 1 1 | Level 2 2 | Level 3 3 | Total as of Dec 31, 2024 |
Recurring fair value measurements | ||||
Assets | ||||
Interest rate swaps – cash flow hedges | 3,571 | 3,571 | ||
Foreign exchange derivatives - fair value hedges | 1,415 | 1,415 | ||
Trade receivables - ABS/Factoring program (mandatorily measured at FVTPL) | 18,427 | 18,427 | ||
Total | 23,413 | 23,413 | ||
Liabilities | ||||
Foreign exchange derivatives - cash flow hedges | 671 | 671 | ||
Foreign exchange derivatives - fair value hedges | 84 | 84 | ||
Total | 755 | 755 | ||
in EUR thousands | Level 1 1 | Level 2 2 | Level 3 3 | Total as of Dec 31, 2023 |
Recurring fair value measurements | ||||
Assets | ||||
Foreign exchange derivatives - held for trading | ||||
Interest rate swaps - cash flow hedges | 4,466 | 4,466 | ||
Foreign exchange derivatives - fair value hedges | 507 | 507 | ||
Trade receivables - ABS/Factoring program (mandatorily measured at FVTPL) | 32,682 | 32,682 | ||
Total | 37,655 | 37,655 | ||
Liabilities | ||||
Interest rate swaps - cash flow hedges | 0 | |||
Foreign exchange derivatives - held for trading | ||||
Foreign exchange derivatives - fair value hedges | 544 | 544 | ||
Total | 544 | 544 | ||
1_Fair value measurement based on quoted prices (unadjusted) in active markets for these or identical assets or liabilities. 2_Fair value measurement for the asset or liability based on inputs that are observable on active markets either directly (i.e., as priced) or indirectly (i. e., derived from prices). 3_Fair value measurement for the asset or liability based on inputs that are not observable market data. | ||||
in EUR thousands | Level 1 1 | Level 2 2 | Level 3 3 | Total as of Dec 31, 2023 |
|---|---|---|---|---|
Recurring fair value measurements | ||||
Assets | ||||
Foreign exchange derivatives - held for trading | ||||
Interest rate swaps - cash flow hedges | 4,466 | 4,466 | ||
Foreign exchange derivatives - fair value hedges | 507 | 507 | ||
Trade receivables - ABS/Factoring program (mandatorily measured at FVTPL) | 32,682 | 32,682 | ||
Total | 37,655 | 37,655 | ||
Liabilities | ||||
Foreign exchange derivatives - held for trading | ||||
Foreign exchange derivatives - fair value hedges | 544 | 544 | ||
Total | 544 | 544 | ||
1_Fair value measurement based on quoted prices (unadjusted) in active markets for these or identical assets or liabilities. 2_Fair value measurement for the asset or liability based on inputs that are observable on active markets either directly (i.e., as priced) or indirectly (i. e., derived from prices). 3_Fair value measurement for the asset or liability based on inputs that are not observable market data. | ||||
As in the previous year, there were no transfers between the individual levels of the fair value hierarchies. The fair value of interest swaps is calculated as the present value of estimated future cash flows. The fair value of the foreign currency derivatives is calculated using the forward exchange rate on the reporting date and the result is then presented at the discounted present value.
Legend
These contents are part of the Non-financial Group Report and were subject to a separate limited assurance examination.