18. Disclosures on the Consolidated Statement of Cash Flows
The cash flow statement distinguishes between cash flows from operating activities, investing activities and financing activities.
Cash flow from operating activities is derived indirectly from the profit or loss for the period. This is adjusted for non-cash depreciation and amortization, for expenses and payments allocated to cash flow from investing or financing activities, and for other non-cash expenses and income. The cash outflow from operating activities of EUR 7,059 thousand (H1 2022: cash inflow of EUR 7,142 thousand) shows the changes in current assets, provisions and liabilities (excluding liabilities related to financing activities).
The company participates in a reverse factoring program, a factoring program and an ABS program. The liabilities in the reverse factoring program are reported under trade and similar payables. As of June 30, 2023, liabilities of EUR 22,881 thousand (Dec 31, 2022: EUR 22,538 thousand) from reverse factoring programs are recognized. The cash flows from the reverse factoring, factoring and ABS programs are presented under cash flows from operating activities, as this equates to the economic substance of the transactions.
Cash outflow (H1 2022: cash inflow) from operating activities in the first half of 2023 includes payments for share-based payments in the amount of EUR 530 thousand (H1 2022: EUR 578 thousand) resulting from the Short-Term-Incentive, STI) variable remuneration for members of the Management Board of NORMA Group.
The corrections for expenses from the measurement of derivatives of EUR 1,436 thousand (H1 2022: EUR 2,415 thousand) included in the cash outflow (H1 2022: cash inflow) from operating activities relate to changes in the fair value of foreign currency derivatives recognized in profit or loss that are allocated to financing activities. The adjusted other non-cash income (-) / expenses (+) include expenses from the currency translation of external financing liabilities and intercompany monetary items amounting to EUR -2,674 thousand (H1 2022: EUR -2,734 thousand).
Furthermore, non-cash income (-) / expenses (+) in the first half of 2023 include non-cash interest expenses from the application of the effective interest method in the amount of EUR 103 thousand (H1 2022: EUR 102 thousand).
Cash flows from interest paid are reported under cash flows from financing activities.
Cash flows from investing activities include net outflows from the acquisition and disposal of non-current assets amounting to EUR 31,323 thousand (H1 2022: EUR 14,557 thousand). This includes the change in liabilities for the acquisition of intangible assets and property, plant and equipment of EUR -1,050 thousand (H1 2022: EUR -3,472 thousand).
In the reporting period of the previous year, cash flow from investing activities includes a cash inflow from a sale and leaseback transaction in the amount of EUR 6,136 thousand.
Cash flows from financing activities in the first half of 2023 include payments for dividends to the shareholders of NORMA Group SE in the amount of EUR 17,524 thousand (H1 2022: EUR 23,897 thousand), interest payments (H1 2023: EUR 7,967 thousand; H1 2022: EUR 3,394 thousand), payments for the repayment of loans (H1 2023: EUR 5,251 thousand; H1 2022: EUR 10,000 thousand), cash inflows from borrowings (H1 2023: EUR 13,250 thousand ; H1 2022: EUR 18,402 thousand), a repayment of liabilities from ABS and factoring of EUR 3,710 thousand (H1 2022: EUR 3,259 thousand) and cash outflows from derivatives of EUR 990 thousand (H1 2022: cash outflows of EUR 269 thousand).
The proceeds from borrowings in the reporting period of the previous year include a payment from a sale and leaseback transaction in the amount of EUR 3,327 thousand.
In addition, lease payments of EUR 6,056 thousand (H1 2022: EUR 7,523 thousand) are reported under cash flow from financing activities.
The changes in balance sheet items presented in the Statement of Cash Flows cannot be derived directly from the Consolidated Statement of Financial Position, as effects from currency translation are non-cash and effects from changes in the scope of consolidation are presented directly in the cash outflow from investing activities.
As of June 30, 2023, cash and cash equivalents included cash and demand deposits of EUR 94,362 thousand (Dec 31, 2022: EUR 163,726 thousand) and cash equivalents of EUR 4,953 thousand (Dec 31, 2022: EUR 4,944 thousand).