NORMA Group SE — Investor Presentation 2011

Mar 28, 2012

Highlights 2011 - Strategy

Acquisitions	Integration of the US acquisitions R.G. Ray and Craig Assembly successfully concluded in Q1/2011
APAC	Establishing Singapore headquarters increases focus in region
Greenfield APAC	Plant opening in Thailand in early 2011
Greenfield EMEA	Start of production in Serbia to increase capacity in EMEA
White Spots	Opening of sales office in Brazil as first step into new market
Joint Venture	Take over of minority shares from JV partners in India and Spain
Listing	IPO including capital increase and refinancing in April, subsequent SDAX listing in June

Highlights 2011 – Financials (I)

	Record sales of EUR 581.4 million (2010: EUR 490.4 million)
Sales	growth of 18.5% including organic growth of 13.4%
	Record adjusted EBITA of EUR 102.7 million
Adjusted EBITA	first time in company history > EUR 100 million (2010: EUR 85.4 million)
Margin	Further margin expansion: 17.7% record margin achieved (2010: 17.4%)
EPS	Record adjusted EPS of EUR 1.92
	Pro forma adjusted EPS with current number of shares at EUR 1.81 (2010: EUR 1.51)
Equity	Strong balance sheet with an equity ratio of 39.5% (2010: 13.5%)

Highlights 2011 – Financials (II)

Net Debt	Net debt down to EUR 176.7 million from EUR 338.6 million in 2010*
Cash Flow	Excellent adjusted net operating cash flow of EUR 66.8 million (2010: EUR 51.7 million)
Visibility	Order book at year end at EUR 218.6 million (2010: EUR 188.0 million)
Guidance	Sales growth of 3% to 6%; EBITA margin at least on the level of 2010/2011 (17.4% / 17.7%)
Dividend	Dividend proposal to the AGM of EUR 0.60 per share
	33.2% or EUR 19.1 million of adjusted net income of EUR 57.6 million
* excluding	non-cash / non-P&L derivative financial liabilities of EUR 21.8 million (2010: EUR 5.5 million)

Excellent Growth in 2011: Record Sales with EUR 581.4 million

	Sales Development in EUR million						Growth Development
Sales	2010	2011	Change	Change in %		Organic Growth	Acquisitive Growth	Currency Effects
Q1	106.1	150.4	+ 44.3	+ 41.7%		+27.1%	+12.4%	+ 2.2%
Q2	124.4	145.5	+ 21.1	+ 17.0%		+13.7%	+7.5%	- 4.2%
Q3	131.0	145.9	+14.9	+11.4%		+10.3%	+3.2%	-2.1%
Q4	128.9	139.6	+10.7	+8.3%		+4.8%	+4.1%	-0.6%
FY	490.4	581.4	+91.0	+18.5%		+13.4%	+6.5%	-1.4%

• Strong organic growth of 13.4% or EUR 65.6 million in 2011 achieved
• Fully integrated acquisition of R.G. Ray (NORMA Illinois) and Craig Assembly (NORMA St. Clair) add 6.5% or EUR 32 million to sales including organic growth in 2011
• Overall growth of 18.5% including unfavourable currency effects of -1.4% or EUR -6.6 million

Sales by regional reporting segments

• Reporting segment Asia-Pacific recorded direct sales of 6.1% in 2011. The de-facto share including all NORMA exports into the Asia-Pacific region is estimated at around 10% of our total sales (sales by destination)
• Increase of Americas region driven by US acquisitions R.G. Ray and Craig Assembly

Sales by Way-to-Market and by Industries

• NORMA Group's US acquisitions of RG Ray (NORMA Illinois) and Craig Assembly (NORMA St. Clair) increased its stake of the EJT way-to-market to 71% of its total sales
• Majority of sales goes to non-automotive industrials, distributors as well as general tiers
• Sales to industrial suppliers include various industries , e.g. water, plumbing, irrigation, agriculture, construction equipment

Building a Track Record: 8 Quarters of Strong Sales and Margins

	2010				2011
in € million	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
Sales	106.1	124.4	131.0	128.9	150.4	145.5	145.9	139.6
Adjusted EBITA	19.3	22.8	22.7	20.6	28.4	25.5	26.2	22.6
Adjusted EBITA Margin	18.2%	18.3%	17.4%	16.0%	18.9%	17.5%	18.0%	16.2%
Seasonality	End of crisis	Ramp up	Full production (no breaks)	Full production (no breaks)	Strong Q1	Strong Q2	Strong Q3	Strong Q4

Typical Seasonal Pattern of Business Year

H1 2011 stronger than H2 2011 due to working days and year-end breaks

			2011
in EUR million	HY1			HY2		FY
Sales	295.9	51%	285.5	49%	581.4	100%
Adjusted EBITA	53.9	52%	48.8	48%	102.7	100%
Adjusted EBITA Margin	18.2%		17.1%		17.7%

Historic Growth Track Record

Historic revenue development (1997 – 2011)

Former Rasmussen has shown a solid historical organic growth of 9.0% between 1997 and 2005. With the formation of the new group, NORMA Group switched gears into acquisition mode.

Positive Results and Stable Costs

• YTD material consumption stable at ~ 45%
• YTD productivity gains including cost improvement programme "Global Excellence"

Overview on Adjustments

• Adjustments in 2011 and 2010 mainly from IPO costs (major part concluded in Q1 2011)
• Only minor PPA adjustments in 2012 on EBITA level expected (< EUR 0.5 million)

in EUR million	FY 2010	FY 2011	thereof Q1 2011
Reported EBITA	64.9	84.7	12.1
+ Restructuring Costs	1.3	1.8	0.7
+ Non-recurring/non-period-related items*	15.5	14.8	14.6
+ Other group and normalized items	0.7	0.2	0.2
+ PPA depreciation	3.0	1.2	0.8
Adjusted EBITA	85.4	102.7	28.4
+ Depreciation (excluding PPA depreciation)	13.8	14.3	3.6
Adjusted EBITDA	99.2	117.0	32.0

* mostly IPO related costs in 2010/2011

Adjustments on EBIT level (PPA amortisation) at approx. EUR 5 million for 2012 going forward expected (adjustment on net income level approx. EUR 3.5 million) (2010: EUR 5.1 million PPA amortisation)

EPS – Dividend Proposal EUR 0,60 per share

• Dividend proposal to the shareholders at the AGM on May 23rd, 2012: EUR 0.60 per share = 3.8% dividend yield*
• Pay-out of EUR 19.1 million for 31,862,400 shares equals 33.2% of adjusted net income of EUR 57.6 million

Profit & Loss (adjusted & reported)

in EUR million	2011		2010
	reported	adjusted	reported	adjusted
Sales	581.4	581.4	490.4	490.4
Gross Profit	322.6	322.6	274.7	274.7
EBITDA	100.2	117.0	81.7	99.2
EBITA	84.7	102.7	64.9	85.4
in %	14.6%	17.7%	13.2%	17.4%
EBIT	76.6	99.7	56.3	80.9
in %	13.2%	17.1%	11.5%	16.5%
Financial Result	-29.6	-17.4	-14.9	-14.9
Profit before Tax	47.0	82.3	41.4	66.0
Taxes	-11.3	-24.7	-11.2	-17.8
Net Profit	35.7	57.6	30.2	48.2

Net Debt & Financing Ratios

		Net Debt (in EUR million)		Financing Ratios
400 300	338.6 *	176.7 *	Net debt decreased driven by capital increase and good  operating cash flow Leverage and gearing extremely reduced 
200			excluding derivatives*	31.12.2011	31.12.2010
100	369	245	Leverage (net debt* / adjusted EBITDA	1.5 x	3.4 x
			Gearing (net debt* / equity)	0.7 x	4.3 x
0	-30	-68	including derivatives	31.12.2011	31.12.2010
-100	2010	2011	Leverage (net debt / adjusted EBITDA	1.7 x	3.5 x
		cash debt	Gearing (net debt / equity)	0.8 x	4.4 x

* excludes non cash / non P&L derivative financial liabilities of EUR 21.8 million (2010: EUR 5.5 million)

Significant Operating Net Cash Flow Improvement

Adjusted operating net cash flow
in EUR million	2010	2011	Variance
Adjusted EBITDA*	99.2	117.0	17.9%
Δ ± Working capital	-26.4	-19.5	-26.2%
Adjusted operating net cash flow before investments from operating business	72.8	97.5	33.9%
Δ ± Investments from operating business	-21.1	-30.7	45.3%
Adjusted operating net cash flow	51.7	66.8	29.2%

• Adjusted operating net cash flow before investments significantly increased by EUR 24.7 million to a total of EUR 97.5 million in 2011.
• Traditional highest operating net cash flow in Q4 (EUR +39.5 million) due to seasonality of business.
• Higher adjusted EBITDA and less working capital consumption were positive factors.
• Very strong organic growth of 13.4% leads to expansion of capex; especially new plants in Thailand and Serbia.

* adjustments of EBITDA on 2011 mostly relate to IPO costs and other non-recurring / nonperiod related items

Outlook 2012 - Strategy

1	Continue international expansion of sales network and production footprint
2	Continue to explore business opportunities in APAC
3	Increase China capacity to enable expansion
4	Expand and explore opportunities in Brazil
5	Consolidate Maintal activity by returning 2 leased buildings into one newly acquired logistic and business development building
6	Continue dialogue with potential M&A targets

Outlook 2012 – Macroeconomic Forecast

in %	2011	2012e	2013e
USA*	+1.8	+1.8	+2.2
China*	+9.2	+8.2	+8.8
Euro-zone*	+1.6	-0.5	+0.8
Germany*	+3.0	+0.3	+1.5

• VDMA (German Engineering Federation) expects production increase of 4% in 2012.
• Euroconstruct expects further reduction by 0.3% for the European construction industry.
• VDA (German Association of the Automotive Industry) expects 4% growth to 68 million cars.

* Source: International Monetary Fund, January 2012

Outlook 2012 – Company Guidance

Sales growth between 3% and 6% at least on the level of the two previous years EBITA margin (17.4% and 17.7% respectively) Investments in R&D approx. 4% of EJT-sales Material ratio approx. 45% of sales
Financial result approx. EUR -15m
Tax rate approx. 30% to 32%
Investment rate up to 4.5% of sales
Dividend approx. 30% to max. 35% of Group year end result

Financial Calendar	Date
Publication of Q1 Results 2012	14.05.2012
Annual General Meeting	23.05.2012
Publication of Q2 Results 2012	14.08.2012
Publication of Q3 Results 2012	13.11.2012

Customer Value through Innovation

NORMA Group – Key Investment Highlights

1	Market leader in attractive engineering niche markets with strong growth prospects
2	Premium pricing through technology and innovation leadership in mission-critical components
3	Enhanced stability through broad diversification across products, end-markets and regions
4	Two distinct ways-to-market providing unique customer access and market intelligence
5	Significant growth and value creation opportunity through synergistic acquisitions
6	Proven track record of operational excellence

Proven Business Model Addressing Key Megatrends

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Convincing Growth Prospects

NORMA Group expects to grow even faster than its end-markets

(2010-15 CAGR)	End-market production unit growth	Joining technology market growth
Passenger vehicles	+6%	9%
Commercial vehicles	+6%	10%
Agricultural equipment	+1%	3%
Construction equipment	+13%	15%
Engines	+5%	9%
White goods	+5%	5%
Drainage systems	+6%	6%

Significant Growth and Value Creation Opportunity through Synergistic Acquisitions

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Premium Pricing through Technology and Innovation Leadership in Mission-Critical Components

	high impact	Ability to achieve premium pricing
Approx. value of joining technology		Basis for premium pricing: 
content		Market leadership 
c. € 21-26		Technology 
		Quality 
		Innovation 
c. € 49-60		Tailor-made solutions 
		High switching costs for customers 
		Savings potential for customer 
c. € 36-44		mismatches risk of switching supplier
c. € 188-256	Price of harvester:
	c. € 20-25 c. € 62-101 Total	Mission-criticality: Small relative cost –

• Basis for premium pricing:
• Market leadership
• Technology
• Quality
• Innovation
• Tailor-made solutions
• High switching costs for customers
• Savings potential for customer mismatches risk of switching supplier

Tighter Emission Regulations Drive Increased Joining Technology Content

• Environmental awareness continues to drive tightening emission regulations globally
• Increasingly tighter emission regulations, including in emerging markets
• Low-emission alternatives require significantly higher joining technology content at a substantially increased complexity compared to existing/past technologies

Note: Chart shows emission regulation roadmap for passenger vehicles Source: DieselNet, NORMA Group

Enhanced Stability through Broad Diversification Across Products, End-Markets and Regions

More than 35,000 products, manufactured in 17 locations and sold to more than 10,000 customers in 90+ countries Presence in China, India, Russia, Brazil and South Korea already established Top 5 customers account for only ~19% of 2011 sales

Note: Split based on third party gross revenue as per management accounts

Unique business model with two distinct ways-to-market Innovation and product solution partner for customers, focused on engineering expertise with high value-add Engineered Joining Technology (EJT) ~71% of 2011 sales Distribution Services (DS) ~29% of 2011 sales High quality, branded and standardised joining products provided at competitive prices to broad range of customers High quality, standardised joining technology products B2C Customised, engineered solutions 23 new patent families declared in 2011 (>60 since 2007) B2B Significant economies of scale in production Close contact to international EJT customers Knowledge transfer from EJT to DS

NORMA Group Management Team

Werner Deggim Chief Executive Officer

Dr. Othmar Belker Chief Financial Officer

Bernd Kleinhens Business Development

John Stephenson Chief Operating Officer

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Continuation of Growth Track and Sustainable Margin

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Positive Effects of the IPO Visible on Balance Sheet

(all amounts in EUR million)	31 Dec 2010	31 Dec 2011	(all amounts in EUR million)	31 Dec 2010	31 Dec 2011
Assets			Equity and liabilities
Non-current assets			Equity
Goodwill / Other intangible assets / Property, plant & equipment	390.4	401.0	Total equity	78.4	256.0
Other and derivative financial assets /			Non-current and current Liabilities
Income tax assets / Deferred income tax assets	8.8	9.2	Retirement benefit obligations / Provisions	16.9	19.4
Total non-current assets	399.2	410.2
Current assets			Borrowings and other financial liabilities	369.0	244.5
Inventories	64.7	66.8	Other non-financial liabilities	21.8	23.2
Other non-financial assets / Income tax assets	14.2	22.9	Tax liabilities and derivative financial liabilities	44.4	64.1
Trade and other receivables	70.3	80.8
Cash and cash equivalents	30.4	67.9	Trade payables	48.3	41.4
Total current assets	179.6	238.4	Total liabilities	500.4	392.6
Total assets	578.8	648.6	Total equity and liabilities	578.8	648.6

Pro-active FCF Management to be Continued

Contact Andreas Troesch Vice President Investor Relations
Phone: +49 6181 6102 -741
Fax: +49 6181 6102 -7641 Mobile: +49 1520 910 3619
Email: Andreas.Troesch@normagroup.com

Disclaimer

This presentation contains certain future-oriented statements. Future-oriented statements include all statements which do not relate to historical facts and events and contain future-oriented expressions such as "believe", "estimate", "assume", "expect", "forecast", "intend", "could" or "should" or expressions of a similar kind. Such future-oriented statements are subject to risks and uncertainties since they relate to future events and are based on the Company's current assumptions, which may not in the future take place or be fulfilled as expected.

The Company points out that such future-oriented statements provide no guarantee for the future and that actual events including the financial position and profitability of the NORMA Group AG and developments in the economic and regulatory fundamentals may vary substantially (particularly on the down side) from those explicitly or implicitly assumed or described in these statements.

Even if the actual results for the NORMA Group AG, including its financial position and profitability and the economic and regulatory fundamentals, are in accordance with such future-oriented statements in this presentation, no guarantee can be given that this will continue to be the case in the future.