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 136,985 thousand (2023: EUR 118,912 thousand) shows the changes in assets (excluding assets related to financing activities), provisions and liabilities (excluding liabilities related to financing activities).

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, 2024, liabilities in the amount of EUR 15,401 thousand (Dec 31, 2023: EUR 18,620 thousand) were recognized from reverse factoring programs 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 748  thousand (2023: EUR 1,602 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 901 thousand (2023: EUR 530 thousand), resulting from the payment from the STI and ESG LTI for the Management Board of NORMA Group in the current fiscal year (2023: 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 -1,302 thousand (2023: expenses in the amount of EUR 1,036 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 adjusted other non-cash income (−)/expenses (+) include expenses from the currency translation of external financing liabilities and intra-group monetary items amounting to EUR 709 thousand (2023: income of EUR 643 thousand).

Furthermore, non-cash (-) income/expenses (+) in the fiscal year 2024 include non-cash interest expenses from the application of the effective interest method in the amount of EUR 299 thousand (2023: EUR 240 thousand) and non-cash effects from share-based payments in the amount of EUR 180 thousand (2023: EUR 261 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 non-current assets amounting to EUR 63,450 thousand (2023: net cash outflows in the amount of EUR 59,761 thousand).

Of the investments made in property, plant and equipment and intangible assets in the fiscal year in the amount of EUR 53,466 thousand (2023: EUR 61,335 thousand), EUR 21,346 thousand (2023: EUR 40,823 thousand) relate to expenses for the expansion of operating capacity and EUR 32,119 thousand (2023: EUR 20,512 thousand) to expenses for the maintenance and improvement of operating capacity and processes.

Cash flows from investing activities also include net payments for the acquisition of Teco, which are as follows:

Cash flows from financing activities include payments for dividends to the shareholders of NORMA Group SE in the amount of EUR 14,338 thousand (2023: EUR 17,524 thousand), for interest 23,689 thousand (2023: EUR 19,570 thousand) and repayments from derivatives in the amount of EUR 67 thousand (2023: repayments in the amount of EUR 1,862 thousand).

In addition, net loan disbursements in the amount of EUR 66,796 thousand (2023: Net payments in the amount of EUR 5,176 thousand) NOTE 5. (C) LIQUIDITY RISK, cash inflows from liabilities from ABS and factoring in the amount of EUR  3,396 thousand (2023: repayments in the amount of EUR 1,544 thousand) and the repayment of lease liabilities in the amount of EUR 12,584 thousand (2023: EUR 12,268 thousand) were recognized under cash flow from financing activities. NOTE 20 LEASES and 21. (E) FINANCIAL LIABILITIES AND NET DEBT

The changes in Statement of Financial Position items that are presented in the Consolidated Statement of Cash Flows cannot be derived directly from the Statement of Financial Position, 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, 2024, cash and cash equivalents comprised cash and demand deposits in the amount of EUR 114,185 thousand (Dec 31, 2023: EUR 161,485 thousand) and cash equivalents in the amount of EUR 12,946 thousand (Dec 31, 2023: EUR 3,722 thousand).

Cash in Serbia, China, India, Russia, Brazil, South Korea, Thailand and Malaysia (Dec 31, 2024: EUR 40,581 thousand, Dec 31, 2023: EUR 41,121 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 Statement of Financial Position values of the financial statements of debt arising from financing activities for the relevant closing Statement of Financial Position items and which led to changes in equity.