12. Financial Instruments

The following disclosures provide an overview of the financial instruments held by the Group.

Financial instruments according to classes and categories were as follows:

 

 

12. (a) Trade Receivables Held for Transfer and Transferred

 

i. Transferred trade receivables

NORMA Group subsidiaries in the EMEA and Americas segments transfer trade receivables to external buyers as part of factoring and ABS transactions. The details and effects of the respective programs are presented below.

 

a) Factoring transactions

In the factoring agreement concluded in the 2017 fiscal year with a maximum receivables volume of currently EUR 10 million, NORMA Group subsidiaries in Germany, Poland, and France sell trade receivables directly to the external buyers. Under this agreement, receivables amounting to EUR 4.7 million were sold as of June 30, 2026 (December 31, 2025: EUR 4.6 million), of which EUR 0.5 million (Dec. 31, 2025: EUR 0.5 million) were not paid out as purchase price retentions held as security reserves and recognized as other financial assets.

Continuing involvement in the amount of EUR 49 thousand (Dec. 31, 2025: EUR 48 thousand) was recognized as a financial liability and considers the maximum potential loss for NORMA Group resulting from the late payment risk of receivables sold as of the reporting date. The fair value of the guarantee or interest payments to be assumed has been estimated at EUR 4 thousand (Dec. 31, 2025: EUR 4 thousand).

In 2018, NORMA Group established another factoring program with a current maximum receivables volume of USD 27.5 million. As part of this factoring program, a subsidiary of NORMA Group in the United States sold trade receivables directly to external buyers. This factoring program was attributable exclusively to the discontinued operation. Under this agreement, as of Dec. 31, 2025, receivables in the amount of EUR 19.2 million were sold, of which EUR 3.8 million were not paid out as purchase price retentions held as security reserves and recognized as other financial assets. Following the sale of the Water Management business, this factoring program no longer existed within NORMA Group as of June 30, 2026.

 

b) ABS program

In the 2014 fiscal year, NORMA Group entered into a revolving receivables purchase agreement with Weinberg Capital Ltd. (program-specific special purpose entity). The agreed structure provides for the sale of NORMA Group’s trade receivables as part of an ABS transaction and was successfully initiated in December 2014. The receivables are sold to a program-specific special purpose entity by NORMA Group.

Under this asset-backed securities (ABS) program with a volume of up to EUR 20 million, domestic Group companies of NORMA Group sold receivables in the amount of EUR 8.4 million as of June 30, 2026 (December 31, 2025: EUR 7.9 million), of which EUR 0.4 million (Dec. 31, 2025: EUR 0.4 (million) were not paid out as purchase price retentions held as security reserves and recognized as other financial assets.

 

Continuing involvement in the amount of EUR 159 thousand (Dec. 31, 2025: EUR 149 thousand) was recognized as other financial liabilities and includes, on the one hand, the maximum amount that NORMA Group might have to repay from the default guarantee assumed and, on the other hand, the expected interest payments until receipt of payment in relation to the carrying amount of the transferred receivables. The fair value of the guarantee or the interest payments to be assumed was also recognized in profit or loss and included as other liabilities in the amount of EUR 130 thousand (Dec. 31, 2025 EUR 121 thousand).

In the 2018 fiscal year, NORMA Group entered into another revolving receivables purchase agreement with Weinberg Capital Ltd. (program-specific special purpose entity) for the sale of trade receivables. The agreed structure provides for the sale of NORMA Group’s trade receivables as part of an ABS transaction and was successfully initiated in December 2018. The receivables are sold to a program-specific special purpose entity by NORMA Group.

As part of this ABS program with a volume of up to USD 20 million, US Group companies of NORMA Group sold receivables in the amount of EUR 11.5 million as of June 30, 2026 (Dec. 31, 2025: EUR 10.5 million), of which EUR 0.6 million were not paid out (Dec. 31, 2025: EUR 0.5 million) as purchase price retentions held as security reserves and recognized as other financial assets.

Continuing involvement in the amount of EUR 605 thousand (Dec. 31, 2025: EUR 552 thousand) was recognized as other financial liabilities and includes, on the one hand, the maximum amount that NORMA Group might have to repay from the default guarantee assumed and, on the other hand, the expected interest payments until receipt of payment in relation to the carrying amount of the transferred receivables. The fair value of the guarantee or the interest payments to be assumed was also recognized in profit or loss and included as other liabilities in the amount of EUR 199 thousand (Dec. 31, 2025 EUR 182 thousand).

 

ii. Trade receivables earmarked for transfer

In the Group’s view, trade receivables included in these programs but not yet disposed of after the closing date cannot be allocated to either the “hold” or “hold and sell” business model. They are therefore recorded in the “fair value through profit and loss” (FVTPL) category.

 

 

12. (b) Financial Liabilities and Net Debt

 

i. Loans

The maturities of the long-term syndicated loans, promissory note loans, and other loans as of June 30, 2026, were as follows:

The maturities of the syndicated loans, promissory note loans, and other loans as of December 31, 2025, were as follows:

Parts of the syndicated loans were hedged against interest rate changes by way of derivatives.

 

ii. Leases

The maturities of the nominal values and the carrying amounts of the lease liabilities as of June 30, 2026, were as follows:

 

iii. Other financial liabilities

Other financial liabilities are as follows:

 

a) Liabilities from ABS and factoring

Liabilities from ABS and factoring include liabilities from the remaining continuing involvement recorded under the ABS and factoring programs in the amount of EUR 813 thousand (Dec. 31, 2025: EUR 750 thousand), liabilities from recognized fair values of default and interest guarantees in the amount of 333 (Dec. 31, 2025: EUR 307 thousand) and liabilities from deposits from customers for receivables already sold within the ABS and factoring programs as part of the accounts receivable management carried out by NORMA Group in the amount of EUR 9,624 thousand (Dec. 31, 2025: EUR 4,246 thousand).

 

iv. Reverse factoring liabilities

The following table contains further information on reverse factoring programs. Programs with the same payment conditions are aggregated accordingly:

As of June 30, 2026, and December 31, 2025, no guarantees or collateral were issued on the liabilities from reverse factoring programs. There were no cash-effective transfers from trade payables to financial liabilities as of June 30, 2026, and December 31, 2025.

 

v. Net liquidity / net debt

The following information on

net liquidity / net debt

relates to both continuing operations and the discontinued operation for the comparative period and is presented on an aggregate basis.

The

net liquidity / net debt

as of June 30, 2026, is as follows:

NORMA Group’s financial liabilities were 73.6% below the level as of December 31, 2025.

Borrowings decreased as of June 30, 2026, compared with December 31, 2025, primarily due to repayments made in the first quarter of 2026. The net outflow for loans in the first six months is EUR 289,573 thousand.

The reduction in lease liabilities relates mainly to the disposal of the discontinued operation in the first quarter of 2026.

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

Net liquidity as of June 30, 2026, amounted to EUR 303,937 thousand, compared with net debt of EUR 316,098 thousand at the end of 2025, corresponding to a decrease of 196.2%, or EUR -620,035 thousand. This was due to net cash inflows resulting from the combined effect of cash outflows from operating activities of EUR -85,960 thousand and net cash inflows from investing activities of EUR 749,850 thousand, the latter including the net cash inflow from the disposal of the discontinued operation.

A reconciliation of the change is shown below:

NOTE 17: DISCLOSURES ON THE CONSOLIDATED STATEMENT OF CASH FLOWS

 

12. (c) Derivative Financial Instruments

Derivative financial instruments held as part of hedging transactions are accounted for at their respective fair values. They are fully classified in Level 2 of the fair value hierarchy.

The derivative financial instruments are as follows:

 

Foreign exchange derivatives

As of June 30, 2026, foreign currency derivatives with a positive market value of EUR 738 thousand were held to hedge cash flows. No foreign currency derivatives with a negative market value were held to hedge cash flows. In addition, foreign currency derivatives with a positive market value of EUR 190 thousand and foreign currency derivatives with a negative market value of EUR 902 thousand 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.

In the first six months of 2026 and 2025, no expense was recognized for ineffective portions of the cash flow hedges.

The effective portion of cash flow hedges and the reserve for hedging costs recognized in other comprehensive income, excluding deferred taxes, developed as follows:

The gains and losses from foreign currency derivatives recorded in the hedge reserve in equity are short-term and are recorded effectively in profit or loss within one year.

An overview of the gains and losses arising from fair value hedges recorded within the financial result is as follows:

 

12. (d) Fair Values of Financial Instruments

The following tables present the valuation hierarchy according to IFRS 13 of NORMA Group’s assets and liabilities measured at fair value as of June 30, 2026, and December 31, 2025, respectively:

As in the prior year, there were no transfers between the individual levels of the valuation hierarchies in the current period.

No terms of a financial asset that would otherwise be past due or impaired were renegotiated during the fiscal year.

Financial instruments held as part of hedging transactions are accounted for at their respective fair values. They are fully classified in Level 2 of the fair value hierarchy.

The fair value of interest rate swaps is calculated as the present value of expected future cash flows. The fair value of forward foreign exchange contracts is calculated using the forward exchange rate at the balance sheet date and the result is then presented at the discounted present value.

As of June 30, 2026, and December 31, 2025, no financial liabilities were assigned to Level 3 of the fair value hierarchy.

Financial instruments that are carried at amortized cost in the Consolidated Statement of Financial Position but for which the fair value is disclosed in the notes are also classified in a three-level fair value hierarchy.

The fair values of the fixed-rate tranches of the promissory note loans, which are measured at amortized cost but for which fair value is disclosed in the notes, are determined based on the market interest rate curve using the zero-coupon method, taking credit spreads into account (Level 2). The interest accrued as of the reporting date is included in the values.

Trade accounts receivable and other receivables, like cash and cash equivalents, have short-term maturities. Their carrying amounts correspond to their respective fair values as of the balance sheet date, as the effects of discounting are not material.

Since trade payables and other financial liabilities have short maturities, their carrying amounts approximate their fair values.