Key figures

The development of provisions is as follows:

Development of provisions

T166

As of Jan 1, 2024

Additions

Amounts

used

Unused amounts reversed

Interest accrued

Transfers

Foreign currency translation

As of Dec 31, 2024

6,581

1,301

-1,970

-465

251

5,698

178

147

-139

7

193

2,845

916

-570

99

-2

3,288

3,472

1,802

-1,035

-110

28

4,157

1,467

757

-1,449

-10

765

4,413

568

-906

-2,865

25

117

1,352

18,956

5,491

-6,069

-3,440

124

0

391

15,453

As of

Jan 1, 2023

Additions

Amounts

used

Unused amounts reversed

Interest accrued

Transfers

Foreign currency translation

As of Dec 31, 2023

7,498

2,286

-2,604

-448

-151

6,581

420

128

-389

19

178

2,203

2,201

-1,636

77

2,845

3,552

2,011

-911

-1,127

-19

-34

3,472

1,560

1,399

-1,484

-2

-6

1,467

3,985

1,055

-253

-242

-132

4,413

19,218

9,080

-7,277

-1,819

77

0

-323

18,956

Provisions – split current / non-current

T167

Dec 31, 2024

Dec 31, 2023

Total

thereof

current

thereof

non-current

Total

thereof

current

thereof

non-current

5,698

5,009

689

6,581

6,224

357

193

193

178

178

0

3,288

1,434

1,854

2,845

1,251

1,594

4,157

1,200

2,957

3,472

1,566

1,906

765

765

1,467

1,467

0

1,352

546

806

4,413

3,903

510

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

Note

Dec 31, 2024

Dec 31, 2023

Total

thereof

current

thereof

non-current

Total

thereof

current

thereof

non-current

(25)

704

704

795

795

(25)

1,981

1,981

1,018

1,018

741

741

724

724

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.