27. Provisions

The development of provisions is as follows:

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 at the amount of future cash outflows. Provisions are recognized at the time a detailed restructuring plan is approved by management and publicly announced or communicated to employees or their representatives. Only the expenses directly attributable to the restructuring measures are used to measure the amount of the provision. Expenses associated with the future operating business are not taken into account.

The additions to the provisions for restructuring in the current fiscal year resulted from the measures taken under the transformation program.

The provisions for severance payments include expected severance payments for NORMA Group employees from individual matters for which a final agreement has not yet been reached and personnel structure measures for which provisions can be recognized that will lead to severance payments. Most of the provisions are expected to be paid out within the following fiscal year and are 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. These 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.

Provisions for partial retirement are measured on the basis of an actuarial interest rate of 2.39% p. a. (2024: 2.76% p. a.) and on the basis of the 2018 G mortality tables by Prof. Dr. Klaus Heubeck in accordance with actuarial

principles. The provisions for partial retirement were recognized for agreements already concluded as of the reporting date. They include top-up amounts and settlement arrears accrued by the Company up to the reporting date. The expected payments from the provisions for partial retirement for fiscal year 2026 amount to EUR 1,632 thousand.

Other personnel-related provisions

Other personnel-related provisions are as follows:

The STI for members of the Management Board is a share price-based variable remuneration and is explained in more detail in NOTE 25 – SHARE-BASED REMUNERATION.

The PSP for members of the Management Board is a share price-based variable remuneration and is explained in more detail in NOTE 25 – SHARE-BASED REMUNERATION.

The LTI management provision consists of share price-based variable remuneration and is explained in more detail in NOTE 25 – SHARE-BASED REMUNERATION.

Provisions for anniversaries were measured on the basis of an actuarial interest rate of 3.71% p. a. (2024: 3.26% 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

The provision for outstanding invoices includes expected obligations for auditing and consulting services. There are uncertainties regarding the amount and timing of the outflows. It is expected that these will lead to cash outflow within one year.

Other provisions include provisions for legal disputes and obligations from other taxes.