27. Provisions
The development of provisions is as follows:
Development of provisions | T166 | |||||||
---|---|---|---|---|---|---|---|---|
in EUR thousands | As of Jan 1, 2024 | Additions | Amounts used | Unused amounts reversed | Interest accrued | Transfers | Foreign currency translation | As of Dec 31, 2024 |
Guarantees | 6,581 | 1,301 | -1,970 | -465 | 251 | 5,698 | ||
Severance | 178 | 147 | -139 | 7 | 193 | |||
Early retirement | 2,845 | 916 | -570 | 99 | -2 | 3,288 | ||
Other personnel-related obligations | 3,472 | 1,802 | -1,035 | -110 | 28 | 4,157 | ||
Outstanding invoices | 1,467 | 757 | -1,449 | -10 | 765 | |||
Others | 4,413 | 568 | -906 | -2,865 | 25 | 117 | 1,352 | |
Total provisions | 18,956 | 5,491 | -6,069 | -3,440 | 124 | 0 | 391 | 15,453 |
in EUR thousands | As of Jan 1, 2023 | Additions | Amounts used | Unused amounts reversed | Interest accrued | Transfers | Foreign currency translation | As of Dec 31, 2023 |
Guarantees | 7,498 | 2,286 | -2,604 | -448 | -151 | 6,581 | ||
Severance | 420 | 128 | -389 | 19 | 178 | |||
Early retirement | 2,203 | 2,201 | -1,636 | 77 | 2,845 | |||
Other personnel-related obligations | 3,552 | 2,011 | -911 | -1,127 | -19 | -34 | 3,472 | |
Outstanding invoices | 1,560 | 1,399 | -1,484 | -2 | -6 | 1,467 | ||
Others | 3,985 | 1,055 | -253 | -242 | -132 | 4,413 | ||
Total provisions | 19,218 | 9,080 | -7,277 | -1,819 | 77 | 0 | -323 | 18,956 |
Provisions – split current / non-current | T167 | |||||
---|---|---|---|---|---|---|
in EUR thousands | Dec 31, 2024 | Dec 31, 2023 | ||||
Total | thereof current | thereof non-current | Total | thereof current | thereof non-current | |
Guarantees | 5,698 | 5,009 | 689 | 6,581 | 6,224 | 357 |
Severance | 193 | 193 | 178 | 178 | 0 | |
Early retirement | 3,288 | 1,434 | 1,854 | 2,845 | 1,251 | 1,594 |
Other personnel-related obligations | 4,157 | 1,200 | 2,957 | 3,472 | 1,566 | 1,906 |
Outstanding invoices | 765 | 765 | 1,467 | 1,467 | 0 | |
Others | 1,352 | 546 | 806 | 4,413 | 3,903 | 510 |
Total provisions | 15,453 | 9,147 | 6,306 | 18,956 | 14,589 | 4,367 |
Provisions for guarantees
Provisions for guarantees include provisions due to circumstances where a final agreement has not yet been reached and provisions based on experience (customer claim quota, amount of damage, etc.). Future price increases are considered if material.
Provisions for restructuring
Provisions for restructuring are recognized in the amount of the expected future cash outflows. Provisions are recognized when a detailed restructuring plan, which has been approved by management and publicly announced or communicated to employees or their representatives, is available. Only expenses directly attributable to the restructuring measures are used to measure the amount of the provision. Expenses related to future operating business are not taken into account.
The additions to provisions for restructuring in the prior fiscal years result from the measures under the ‘Get on track’ program. No provisions for restructuring were recognized as at December 31, 2024.
Provisions for severance payments include expected severance payments for NORMA Group employees due to circumstances where a final agreement has not yet been reached. The provisions will be paid out in the following fiscal year and are therefore reported under current provisions.
Provisions for partial retirement
Employees at NORMA Group in Germany can in general engage in an early retirement contract (‘Altersteilzeit’). In the first phase, the employee works 100% (‘Arbeitsphase’). In the second phase, he / she is exempt from work (‘Freistellungsphase’). This is the so-called block model. The employees receive half of their pay for the total early retirement phase as well as top-up payments (including social security costs paid by the employer). The duration of the early retirement is a maximum of six years.
The provisions for partial retirement are measured on the basis of an interest rate of 2.76% p. a. (2023: 3.41% p. a.) and on the basis of the 2018 G mortality tables of Prof. Dr. Klaus Heubeck in accordance with actuarial principles. For signed early retirement contracts, a liability has been recognized. The liability includes top-up payments (‘Aufstockungsbeträge’) as well as deferred salary payments (‘Erfüllungsrückstände’). The expected payments out of the early retirement provisions amount to EUR 1,434 thousand for fiscal year 2025.
Other personnel-related provisions
Other personnel-related provisions are as follows:
Provisions – other personnel-related | T168 | ||||||
---|---|---|---|---|---|---|---|
in EUR thousands | Note | Dec 31, 2024 | Dec 31, 2023 | ||||
Total | thereof current | thereof non-current | Total | thereof current | thereof non-current | ||
STI - Board Members | (25) | 704 | 704 | 795 | 795 | ||
LTI - Management | (25) | 1,981 | 1,981 | 1,018 | 1,018 | ||
Anniversary provisions | 741 | 741 | 724 | 724 | |||
Other personnel-related | 731 | 496 | 235 | 935 | 771 | 164 | |
4,157 | 1,200 | 2,957 | 3,472 | 1,566 | 1,906 |
The STI for member of the Management Boards is a share price-based variable remuneration and is explained in more detail under NOTE 25 SHARE-BASED PAYMENTS.
The LTI management provision consists of share-based variable remuneration and is explained in more detail at NOTE 25 SHARE-BASED PAYMENTS.
Provisions for anniversaries were measured on the basis of an actuarial interest rate of 3.26% p. a. (2023: 3.22% p. a.) and on the basis of the 2018 G mortality tables of Prof. Dr. Klaus Heubeck in accordance with actuarial principles.
Other personnel-related provisions mainly include payable income tax and social security contributions in foreign countries.
Other non-personnel-related provisions
Provisions for outstanding invoices include expected obligations for the audit and advisory services. There are uncertainties regarding the amount and timing of the outflows. However, it is expected that this results in payments within a year.
Other provisions include provisions for legal disputes and obligations from other taxes.
Legend
These contents are part of the Non-financial Group Report and were subject to a separate limited assurance examination.