17. 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 other non-cash expenses and income. The cash inflow from operating activities of EUR 47,011 thousand (H1 2023: cash outflow of EUR 7,059 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 accounts payable and similar payables. As of June 30, 2024, liabilities of EUR 15,757 thousand (December 31, 2023: EUR 18,620 thousand) from reverse factoring programs are recognized. The cash flows from the reverse factoring, factoring and ABS programs are presented under cash flow from operating activities, as this equates to the economic substance of the transactions.

The cash inflow (H1 2023: cash outflow) from operating activities in the first half of 2024 includes payments for share-based payments in the amount of EUR 1,040 thousand (H1 2023: EUR 530 thousand), resulting from the short-term variable remuneration (short-term incentive, STI) for members of the Management Board of NORMA Group.

The corrections for income from the valuation of derivatives in the amount of EUR -107 thousand (H1 2023: expenses of EUR 1,436 thousand) included in the cash inflow (H1 2023: cash outflow) from operating activities relate to the changes in the fair value  of foreign currency derivatives recognized in profit or loss that are allocated to financing activities. The corrected other non-cash income (-)/expenses (+) include expenses from the currency translation of external financing liabilities and intra-group monetary items amounting to EUR 765 thousand (H1 2023: EUR -2,674 thousand).

Furthermore, non-cash income (-)/expenses (+) in the first half of 2024 include non-cash interest expenses from the application of the effective interest method in the amount of EUR 392 thousand (H1 2023: EUR 103 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 23,478 thousand (H1 2023: EUR 31,323 thousand). This includes the change in liabilities for the acquisition of intangible assets and property, plant and equipment amounting to EUR -3,206 thousand (H1 2023: EUR -1,050 thousand).

Furthermore, cash flows from investing activities include net payments for the acquisition of Teco. The net payments for the acquisitions made in the first quarter of 2024 are as follows:

Cash flows from financing activities in the first half of 2024 include payments for dividends to the shareholders of NORMA Group SE in the amount of EUR 14,338 thousand (H1 2023: EUR 17,524 thousand), interest payments  (H1 2024: EUR 9,942 thousand; H1 2023: EUR 7,967 thousand), net payments for loans in the amount of EUR 147 thousand (H1 2023: net cash inflows from loans of EUR 7,999 thousand), proceeds from liabilities from ABS and factoring in the amount of EUR 1,563 thousand (H1 2023: repayments of EUR 3,710 thousand) as well as cash outflows from derivatives in the amount of EUR 384 thousand (H1 2023: cash outflows of EUR 990 thousand).

In addition, lease payments of EUR 6,132 thousand (H1 2023: EUR 6,056 thousand) are reported under cash flow from financing activities.

The changes in the 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, 2024, cash and cash equivalents included cash and demand deposits of EUR 139,380 thousand (December 31, 2023: EUR 161,485 thousand) and cash equivalents of EUR 12,227 thousand (December 31, 2023: EUR 3,722 thousand).