Notes to the Asset and Financial Position

The assets and liabilities of the Water Management business were sold on February 2, 2026. Because the statement of financial position for the previous fiscal year still includes the Water Management business, total assets as of September 30, 2026, are not comparable with the prior-year figures. For more information, see the section DISCONTINUED OPERATION. This section contains an overview of the impacts of the disposal on the consolidated statement of financial position. The prior-year figures as of September 30 and December 31, 2025 already take into account the classification of the assets and liabilities of the Water Management business as a disposal group.

Total assets

Total assets as of the reporting date of September 30, 2026, amounted to EUR 927.3 million, which was 25.9% lower than at the end of the year 2025 (Dec. 31, 2025: EUR 1,250.7 million). Compared to September 30, 2025 (EUR 1,299.1 million), total assets decreased by 28.6%. The key factors here were the sale of the Water Management business and the subsequent special repayment of loans and repurchase of treasury stock.

Non-current assets

As of September 30, 2026, non-current assets totaled EUR 417.9 million, which was 2.4% lower than at the end of the year 2025 (Dec. 31, 2025: EUR 428.4 million). The decrease was mainly due to write-downs on intangible assets and property, plant, and equipment, which more than offset capital expenditures. In this context, non-current assets accounted for 45.1% of total assets as of the reporting date of September 30, 2026 (Dec. 31, 2025: 34.3%).

From January through September 2026, a total of EUR 19.3 million was invested in fixed assets (Q1–Q3 2025: EUR 21.8 million). In addition, EUR 14.1 million was recognized as additions to fixed assets for the capitalization of right-of-use assets relating to leased land and buildings, including as a result of the exercise of extension options (Q1–Q3 2025: EUR 3.2 million). Capital expenditures included capitalized own work in the amount of EUR 1.9 million (Q1–Q3 2025: EUR 3.0 million). The lease term was recalculated due to a change in the assessment regarding the exercise of an extension option. This resulted in a decrease of EUR 4.2 million in the “Right-of-Use Assets – Land and Buildings” asset class.

Current assets

Current assets totaled EUR 509.3 million as of the reporting date and thus declined significantly compared to the end of 2025 (Dec. 31, 2025: EUR 822.3 million) by 38.1%. This change results from the sale of the discontinued operation and the related derecognition of assets held for sale, as well as the use of the proceeds received from the sale to make special loan repayments and repurchase treasury stock. Details regarding the cash inflows and outflows described are included in the notes to the statement of cash flows.

Current assets accounted for 54.9% of total assets as of September 30, 2026 (Dec. 31, 2025: 65.7%).

(Trade) working capital

(Trade) working capital (inventories plus receivables minus payables, in each case mainly trade receivables and trade payables) amounted to EUR 191.3 million as of September 30, 2026, and was therefore 14.4% higher than at the end of 2025 (Dec. 31, 2025: EUR 167.2 million).

This is primarily attributable to the seasonally driven increase in trade receivables of approximately EUR 24.9 million compared to the end of the year 2025. At the same time, inventory increased by EUR 11.9 million compared with the end of 2025, which was offset by a simultaneous increase in accounts payable of EUR 12.7 million.

Other non-financial assets

Other non-financial assets were as follows:

Equity ratio

Consolidated equity as of September 30, 2026 was EUR 595.0 million. This represents an increase of 5.5% compared with year-end 2025 (Dec. 31, 2025: EUR 564.1 million). The equity ratio was 64.2% as of the quarterly reporting date (Dec. 31, 2025: 45.1%). The change in equity is primarily attributable to the increase in retained earnings resulting from a profit for the period (EUR 299.0 million), as well as the acquisition of treasury shares (EUR -261.3 million). Equity was also reduced by the dividend payment made to NORMA Group shareholders in July 2026 (EUR -4.0 million) and by effects from cash flow hedging and changes in the currency translation reserve.

Net liquidity from disposal proceeds

The following information on net financial liabilities relates both to continuing operations and to discontinued operations and is presented on an aggregate basis.

The net liquidity / net debt as of September 30, 2026, is as follows:

Net debt decreased by EUR 396.1 million compared to December 31, 2025, and thus declined by 125.3%.

A reconciliation of the change is shown below:

Financial liabilities

As of September 30, 2026, NORMA Group’s financial liabilities had decreased by 85.2% to EUR 61.0 million, in comparison to December 31, 2025 (EUR 410.7 million).

The loans changed primarily due to net repayments of EUR 328.1 million made in the current reporting period.

Lease liabilities decreased significantly compared to the end of 2025. The changes relate mainly to the disposal of the discontinued operation in Q1 2026.

The decrease in other financial liabilities was chiefly the result of the drop in liabilities arising from ABS and factoring.

As of September 30, 2026, the maturity profile of the promissory note loans is as follows:

Other non-financial liabilities

Other non-financial liabilities were as follows:

Derivative financial instruments

Foreign exchange derivatives

As of September 30, 2026, foreign currency derivatives with a market value of EUR 0.2 million were held to hedge cash flows. In addition, foreign currency derivatives with a positive market value of EUR 0.2 million and a negative market value of EUR 1.2 million were held to hedge changes in fair value.

The foreign currency derivatives used to hedge cash flows are used to hedge against fluctuations in the exchange rate arising from operating activities. Foreign currency derivatives to hedge changes in fair value are used to hedge external financing liabilities, bank balances denominated in foreign currencies, and intercompany monetary items against fluctuations in the exchange rate.