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NORMA Group SE

Quarterly Report • May 9, 2023

311_10-q_2023-05-09_fafc9932-7656-4a9f-9911-b28bd663d35e.pdf

Quarterly Report

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FINANCIAL FIGURES OVERVIEW

Financial figures
Q1 2023 Q1 2022 Change in %2
Order situation
Order book (March 31) EUR million 555.8 565.3 -1.7
Income statement
Revenue EUR million 315.0 304.4 3.5
Cost of materials ratio % 44.9 46.0 –
Personnel cost ratio % 26.1 25.6 –
Adjusted EBIT1 EUR million 22.6 30.3 -25.5
Adjusted EBIT margin1 % 7.2 10.0 –
EBIT EUR million 17.2 24.8 -30.4
EBIT margin % 5.5 8.1 –
Financial result EUR million -3.9 -1.5 -153.9
Adjusted tax rate % 37.0 27.4 –
Adjusted profit for the period1 EUR million 11.8 20.9 -43.6
Adjusted earnings per share1 EUR 0.37 0.66 -44.1
Profit for the period EUR million 7.8 16.7 -53.6
Earnings per share EUR 0.24 0.53 -54.7
Cash flow
Cash flow from operating activities EUR million -36.5 -16.2 -124.6
Cash flow from investing activities EUR million -18.3 -3.7 –
Cash flow from financing activities EUR million -4.1 -1.1 –
Net operating cash flow EUR million -44.8 -16.7 -168.3
Balance sheet March 31, 2023 Dec 31, 2022 Change in %2
Total assets EUR million 1,524.8 1,560.7 -2.3
Equity EUR million 701.6 705.4 -0.5
Equity ratio % 46.0 45.2 –
Net debt EUR million 414.3 349.8 18.4

1_Adjusted for effects from purchase price allocations.

2_The percentage change is based on unrounded absolute figures; rates of change greater than 200% are not shown.

> FINANCIAL FIGURES OVERVIEW Q1 2023

4 TABLE OF CONTENTS

5 HIGHLIGHTS Q1 2023

8 SIGNIFICANT EVENTS AND COURSE OF BUSINESS IN THE FIRST QUARTER OF 2023

9 SIGNIFICANT NEWS AND DEVELOPMENTS AFTER THE REPORTING DATE

4 CONSOLIDATED STATEMENT OF CASH FLOWS

5 DEVELOPMENT OF SEGMENTS

7 FORECAST

6 FURTHER INFORMATION

NORMA Group SE – INTERIM STATEMENT FIRST QUARTER 2023 3
Non-financial figures
Q1 2023 Q1 2022 Change in %3
Core workforce1 Number 6,118 6,175 -0.9
Temporary workers1 Number 2,519 2,532 -0.5
Total workforce1 Number 8,637 8,707 -0.8
Number of invention applications Number 2 5 -60.0
Defective parts PPM (Parts per Million) 2.3 3.3 -30.3
CO2 emissions (Scope 1 and 2) Tons of CO2 equivalents 1,867 2,160 -13.6
Share data
IPO April 2011
Stock exchange Frankfurt Stock Exchange
Market segment Regulated market, (Prime Standard), SDAX
ISIN DE000A1H8BV3
Security identification number A1H8BV
Ticker symbol NOEJ
Highest price Q1 20232 EUR 26.72
Lowest price Q1 20232 EUR 16.77
Closing price as of March 31, 20232 EUR 21.76
Market capitalization as of March 31, 20232 EUR million 693.33

1_Previous period reporting figures as of the reporting date of December 31, 2022.

Number of shares 31,862,400

2_Xetra price. 3_The percentage change is based on unrounded absolute figures.

INTRODUCTION

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

18 Notes to the Asset and Financial Position

CONSOLIDATED STATEMENT OF CASH FLOWS

23 Notes to the Consolidated Statement of Cash Flows

DEVELOPMENT OF THE SEGMENTS

26 Notes to the Development of the Segments

FORECAST

28 Forecast for Fiscal Year 2023

FURTHER INFORMATION

29 Financial Calendar, Contact and Imprint

HIGHLIGHTS Q1 20231

Effects on Group sales

in EUR million Share in %
Group sales Q1 2022 304.4
Organic growth 6.5 2.1
Currency effects 4.0 1.3
Group sales Q1 2023 315.0 3.5

Cost of materials and cost of materials ratio

Development of the distribution channels

Engineered Joining
Technology (EJT) Q1 2023 Q1 2022
Group sales (in EUR million) 182.7 171.0
Growth (in %) 6.9
Share of sales (in %) 58.3 56.5
Standardized Joining
Technology (SJT)		 Q1 2023 Q1 2022
Group sales (in EUR million) 130.7 131.6
Growth (in %) -0.6
Share of sales (in %) 41.7 43.5

1_Adjustments are described on page 12.

NORMA Group SE – INTERIM STATEMENT FIRST QUARTER 2023 5

Gross profit and gross margin

Personnel expenses and personnel cost ratio

Adjusted EBIT and adjusted EBIT margin

in EUR million Q1 2023 Q1 2022
EBITDA 36.8 44.1
Change in working capital -66.0 -54.7
Investments from operating
business		 -15.6 -6.1
Net operating cash flow -44.8 -16.7

7

NORMA Group SE – INTERIM STATEMENT FIRST QUARTER 2023 8

Significant Events and Course of Business in the First Quarter of 2023

Annual Report and Full HTML Online Annual Report 2022 published

NORMA Group published its combined Annual Report 2022 on March 28, 2023. In this context, the Investor Relations team of NORMA Group SE published the second HTML-based online Annual Report. The company is thus consistently continuing its digitalization path in the area of financial communication. The (online) Annual Report 2022 as well as further information on significant developments in fiscal year 2022 can be viewed and accessed in detail on the Investor Relations website. : WWW.NORMAGROUP.COM

Annual General Meeting 2023 convened

NORMA Group SE announced the convening of the Annual General Meeting 2023 at the beginning of April 2023. After three years of a virtual Annual General Meeting, this will again take place in the form of an attendance event in Frankfurt/Main on May 11, 2023. Further information on the Annual General Meeting of NORMA Group SE is available on the Investor Relations website. : WWW.NORMAGROUP.COM

Changes in the Management Board of NORMA Group SE: Dr. Daniel Heymann new COO of NORMA Group from May 2023, contract extension with CFO Annette Stieve

NORMA Group announced on March 6, 2023, that Dr. Daniel Heymann is appointed Chief Operating Officer (COO) with effect from May 1, 2023. Dr. Daniel Heymann succeeds Dr. Friedrich Klein, who stepped down from the Management Board on April 30, 2023. In February 2023, the Supervisory Board and Dr. Friedrich Klein mutually agreed that Dr. Klein, in accordance with his own wishes, would prematurely resign as a member of the Management Board and as COO. In this context, the company also announced that the Supervisory Board had extended the contract with CFO Annette Stieve by three years through the end of September 2026.

Development of key performance indicators in the first quarter of 2023

In the first quarter of 2023, NORMA Group recorded Group sales of EUR 315.0 million and thus slight sales growth of 3.5% compared to the same quarter of the previous year, which was mainly bolstered by price increases for customers. The main driver of sales was the positive development of business in the EMEA region. There, volume growth was achieved compared to the first quarter of the previous year in both the automotive sector and in the Standardized Joining Technology business. The light vehicles and heavy vehicles business in the Americas region also showed a positive performance, although this was mainly price- and currency-driven. By contrast, performance in the Asia-Pacific region fell short of the good previous year's quarter due to a corona-related decline in demand from the Chinese automotive industry and project delays in a government project in the SJT segment.

Adjusted EBIT amounted to EUR 22.6 million and the adjusted EBIT margin reached a level of 7.2%. Net operating cash flow amounted to EUR -44.8 million in the first quarter of 2023, significantly below the previous year. This development is mainly attributable to a higher build-up of (trade) working capital in relation to EBITDA in the reporting period compared to the end of 2022 .

Overall, NORMA Group's business developed in line with expectations in the first months of fiscal year 2023. Based on this, the Management Board is sticking to its forecast for the full year 2023. 4 FORECAST FOR FISCAL YEAR 2023

Significant Announcements and Developments After the Quarterly Reporting Date

Guido Grandi to take over as Chairman of the Management Board of NORMA Group as of June 1, 2023

NORMA Group announced on April 12, 2023, that Guido Grandi has been appointed the future Chairman of the Management Board (CEO) of NORMA Group by the Supervisory Board. Mr. Grandi will assume the position of Chairman of the Management Board as of June 1, 2023. Miguel Ángel López Borrego, who had assumed the office of Chairman on an interim basis as of January 1, 2023, following the departure of Dr. Schneider in the past fiscal year, will leave the Management Board of NORMA Group in this context at the end of May 31, 2023. He will resume his position as a member of the Supervisory Board of NORMA Group as of June 1, 2023. This position had been suspended to date.

New growth and efficiency program "Step Up"

NORMA Group publicly announced a new growth and efficiency program "Step Up" on March 9, 2023. The program represents a medium-term action plan focused on driving forward NORMA Group's strategic and operational development. The measures are divided into growth and investment plans for the three strategic business units Industrial Applications, Water Management as well as Mobility and New Energy ("Growth") and measures to increase operational efficiency ("Operational Efficiency"). The aim of the NORMA Group under the "Step Up" program is to achieve profitable growth in all three strategic business units.

Among other things, the Growth area of measures involves systematically implementing the alignment along the three strategic business units in the corporate organization. For example, in Water Management and Industrial Applications, growth is to be strengthened by winning stable business. In the Mobility and New Energy business unit, NORMA Group intends to be even more focused and selective in this respect. Against this backdrop, decisions on long-term (growth) investments will also be increasingly made by the individual strategic business units in the future. This will put NORMA Group in an even better position to respond to the specific needs of customers in a more targeted and, at the same time, globally uniform manner. Close customer relationships will become even more central to all corporate activities. In addition to concentrating on increasing organic growth, potential acquisition targets are also constantly analyzed. This follows the approach of sensibly complementing the water business in Europe, among other things.

The measures in the area of Operational Efficiency are designed to further improve business processes. NORMA Group is gearing all its internal processes to sustainable profitable growth. Among other things, the focus is on systematically standardizing IT systems and in particular expanding the use of the newly introduced ERP system. In addition, the measures are focused on increasing delivery capability on the basis of more efficient processes. This step also involves reducing complexities within the supply and logistics chains, for example expanding direct deliveries to customers while at the same time reducing inventories. In summary, the aim here is to make NORMA Group's future-proof products available to customers in a more time-optimized manner. Projects and processes are to be managed more uniformly and transparently overall, and internal reporting is to be geared even more closely to targets and measures.

Further information on the new growth and efficiency program "Step Up" is also available in our : INVESTOR RELATIONS PRESENTATION.

Basic information on the organizational structure of NORMA Group (shown below) can be found in the Annual Report 2022, which is available electronically at : WWW.NORMAGROUP.COM.

Organizational Structure of NORMA Group

2 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

12 ADJUSTMENTS

13 NOTES TO THE DEVELOPMENT OF SALES AND

3 CONSOLIDATED STATEMENT OF FINANCIAL POSITION

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the period from January 1 to March 31, 2023

in EUR thousands Q1 2023 Q1 2022
Revenue 314,952 304,394
Change in inventories of finished goods and work in progress -4,750 -1,528
Other own work capitalized 604 552
Cost of materials -141,497 -139,927
Gross profit 169,309 163,491
Other operating income 4,828 7,980
Other operating expenses -55,353 -49,387
Employee benefit expenses -82,056 -77,984
Depreciation and amortization -19,483 -19,317
Operating profit 17,245 24,783
Financial income 1,000 1,371
Finance expenses -4,913 -2,912
Financial result - net -3,913 -1,541
Profit before income taxes 13,332 23,242
Income taxes -5,561 -6,500
PROFIT FOR THE PERIOD 7,771 16,742
Other comprehensive income in the period, net of taxes:
Other comprehensive income in the period, net of taxes, that can be reclassified to profit or loss in
the future		 -11,667 7,885
Adjustment item for translation differences (foreign operations) -11,047 9,983
After-tax cash flow hedges -620 -2,098
Other comprehensive income in the period, net of taxes, that is not reclassified to profit or loss 4 0
Remeasurement of post-employment benefit obligations, net of taxes 4 0
Other comprehensive income in the period, net of taxes -11,663 7,885
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD -3,892 24,627
Profit for the period attributable to
Shareholders of the parent company 7,739 16,730
Non-controlling interests 32 12
Total comprehensive income attributable to
Shareholders of the parent company -3,915 24,623
Non-controlling interests 23 4
-3,892 24,627
(Un)diluted earnings per share (in EUR) 0.24 0.53

2 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

> ADJUSTMENTS

NORMA Group adjusts certain expenses and income for the operational management of the Group. The adjusted results presented below are in line with management's view. Within operating profit (EBIT), only those expenses and income that are related to a business combination are adjusted. Within EBITA, depreciation of property, plant and equipment from purchase price allocations in the amount of EUR 0.2 million (Q1 2022: EUR 0.3 million) and within EBIT additionally amortization of intangible assets from purchase price allocations in the amount of EUR 5.1 million (Q1 2022: EUR 5.2 million) have been adjusted in the first quarter of 2023. Notional income taxes resulting from the adjustments are calculated using the tax rates of the respective local companies concerned and taken into account in adjusted earnings after taxes.

The following table shows earnings adjusted for the effects mentioned here:

Adjustments1

in EUR thousands Q1 2023 reported Total adjustments Q1 2023 adjusted
Revenue 314,952 0 314,952
Change in inventories of finished goods and work in progress -4,750 0 -4,750
Other own work capitalized 604 0 604
Cost of materials -141,497 0 -141,497
Gross profit 169,309 0 169,309
Other operating income and expenses -50,525 0 -50,525
Employee benefit expenses -82,056 0 -82,056
EBITDA 36,728 0 36,728
Depreciation of property, plant and equipment -13,044 214 -12,830
EBITA 23,684 214 23,898
Amortization of intangible assets -6,439 5,141 -1,298
Operating profit (EBIT) 17,245 5,355 22,600
Financial result -3,913 0 -3,913
Earnings before income taxes 13,332 5,355 18,687
Income taxes -5,561 -1,348 -6,909
Profit for the period 7,771 4,007 11,778
Non-controlling interests 32 0 32
Profit for the period attributable to shareholders of the parent company 7,739 4,007 11,746
Earnings per share (in EUR) 0.24 0.13 0.37

1_Discrepancies in decimal places may occur due to commercial rounding.

2 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

12 ADJUSTMENTS

> NOTES TO THE DEVELOPMENT OF SALES AND EARNINGS

3 CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Notes to the Development of Sales and Earnings

Order backlog remains at a high level at the end of the quarter

As of March 31, 2023, NORMA Group's order backlog amounted to EUR 555.8 million and was thus 1.7% lower than on the reporting date of the same quarter of the previous year (March 31, 2022: EUR 565.3 million).

Group sales increased by 3.5% in the first quarter of 2023

In the first quarter of 2023, NORMA Group's total sales amounted to EUR 315.0 million, an increase of 3.5% compared to the same period of the previous year (Q1 2022: EUR 304.4 million). Organic sales growth in the first three months of 2023 amounted to 2.1% and was mainly driven by price increases that were passed on to customers. In addition, currency effects, particularly in connection with the US dollar, had a positive impact of 1.3% on sales growth in the current reporting quarter.

The development of sales in the first quarter of 2023 was primarily driven by an organic improvement in the volume business in the EMEA region compared to the previous year. This was mainly due to a recovery in demand from the European automotive industry, however the Standardized Joining Technology business also developed positively in the EMEA region compared to the weak prior year. In the Americas region, growth in sales was driven mainly by a strong US dollar and price increases. There, an unexpected weather-related decline in the water business of the US subsidiary NDS was offset by substantial contributions from the automotive sector. By contrast, sales in the Asia-Pacific region were well below the level of the good prior-year quarter.

EJT business shows organic sales growth of 6.3% in the first quarter of 2023, SJT business declines organically by 2.9% due to external influences

NORMA Group achieved a gratifying increase in sales in its EJT distribution channel in the first quarter of 2023. They amounted to EUR 182.7 million and were thus 6.9% higher than in the same quarter of the previous year (Q1 2022: EUR 171.0 million). Organic sales growth accounted for 6.3% of this increase. Currency effects slightly increased sales in the EJT segment by 0.6%. This positive development was mainly due to the strong automotive business in the EMEA region and a good performance in the Americas region. This more than offset the decline in sales in the Asia-Pacific region due to the after-effects of the corona pandemic.

In contrast, the development in the SJT distribution channel in the first quarter of 2023, with sales of EUR 130.7 million, was below the prior-year quarter (Q1 2022: EUR 131.6 million). Although currency effects had a positive impact of 2.3%, organic sales growth was negative at 2.9%, thus resulting in a slight overall decline in sales of 0.6% in the first three months of 2023. The decline in SJT sales was primarily driven by a downturn in the water business in the Americas and a weak performance in Asia-Pacific. While order intake in the Americas was mainly impacted by heavy rainfall in the West, the Asia-Pacific region saw a drop in sales due to a delay in a government project in India.

Cost of materials ratio

Cost of materials totaled EUR 141.5 million in the first three months of 2023 and was thus only a slight 1.1% higher compared to the same period of the previous year (Q1 2022: EUR 139.9 million). Overall, the costs of several raw materials as well as energy have been on the decline. Furthermore, there was a higher reduction in inventories of finished goods and work in progress in the current fiscal year compared to the previous year. This had a positive effect on cost of materials. In conjunction with the disproportionate increase in sales, the ratio of

2 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

12 ADJUSTMENTS

cost of materials to sales decreased year-on-year (Q1 2022: 46.0%) and was 44.9% in the first three months of the current fiscal year. The ratio of cost of materials to the total operating performance (sales plus changes in inventories and other own work capitalized) was 45.5% in the first quarter of 2023, also significantly lower than in the same period of the previous year (Q1 2022: 46.1%).

Gross margin

Gross profit (sales less cost of materials plus changes in inventories and other own work capitalized) amounted to EUR 169.3 million in the first quarter of 2023 (Q1 2022: EUR 163.5 million). This represents an increase of 3.6% compared to the same quarter in the previous year. The improvement is mainly attributable to the increase in sales in the first three months of 2023, whereas the slight increase in cost of materials and the reduction in inventories of finished goods and work in progress in the amount of EUR 4.8 million (Q1 2022: reduction in inventories in the amount of EUR 1.5 million) reduced gross profit in the current reporting quarter. The latter in particular had a negative effect on the gross margin, which at 53.8% in the first three months of 2023 was nevertheless marginally above the same quarter of the previous year (Q1 2022: 53.7%).

Personnel cost ratio

Employee benefit expenses amounted to EUR 82.1 million in the first quarter of 2023, an increase of 5.2% compared to the same quarter of the previous year (Q1 2022: EUR 78.0 million). The increase was mainly due to an inflation-driven increase in labor costs. Additional expenses in the EMEA region in connection with the reduction of production backlogs also led to an increase in employee benefit expenses. In addition, inefficiencies in personnel structures and costs in the EMEA and Americas regions also had an increasing effect on personnel costs in the first quarter of 2023. The personnel cost ratio resulting from the ratio to sales was 26.1% in the first quarter of 2023, thus exceeding the figure for the same quarter of the previous year (Q1 2022: 25.6%).

Development of the workforce by segment

March 31, 2023 Dec 31, 2022 March 31, 2022
EMEA 3,426 3,432 3,440
Americas 1,443 1,499 1,428
Asia-Pacific 1,249 1,244 1,325
Core workforce 6,118 6,175 6,193
Temporary workers 2,519 2,532 2,470
Total workforce 8,637 8,707 8,663

Other operating income and expenses

The balance of other operating income and expenses amounted to EUR -50.5 million in the first quarter of 2023 (Q1 2022: EUR -41.4 million). Other operating income and expenses as a percentage of sales in the period from January to March 2023 amounted to 16.0% (Q1 2022: 13.6%).

Other operating income includes, in particular, currency gains from operating activities of EUR 2.6 million (Q1 2022: EUR 3.1 million) as well as income from the reversal of liabilities and unused provisions of EUR 1.1 million (Q1 2022: EUR 2.4 million). Government grants also had an increasing effect (Q1 2023: EUR 0.3 million; Q1 2022: EUR 0.1 million).

2 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

12 ADJUSTMENTS

> NOTES TO THE DEVELOPMENT OF SALES AND EARNINGS

3 CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Other operating expenses mainly include expenses for temporary staff and other personnel-related expenses (Q1 2023: EUR 14.0 million; Q1 2022: EUR 11.9 million). In addition, a large portion of other operating expenses also relates to freight costs (Q1 2023: EUR 11.1 million; Q1 2022: EUR 9.1 million) and IT and telecommunications expenses (Q1 2023: EUR 6.4 million; Q1 2022: EUR 8.1 million). These are related to the Group-wide implementation of a new ERP system and the related additional need for consulting services and license fees.

Operating result and margin

The operating result adjusted for amortization of tangible and intangible assets from purchase price allocations – the adjusted EBIT – amounted to EUR 22.6 million in the current reporting period. Thus, adjusted EBIT in the first three months of 2023 was 25.5% lower than in the same quarter of the previous year (Q1 2022: EUR 30.3 million) despite higher sales. Adjusted EBIT in the period from January to March 2023 was negatively impacted by significantly higher other operating expenses compared to the previous year on the one hand and higher employee benefit expenses on the other hand. The adjusted EBIT margin in the first three months of 2023 was 7.2% (Q1 2022: 10.0%).

NORMA Value Added (NOVA)

In the current reporting period, NORMA Value Added (NOVA) amounted to EUR -9.4 million (Q1 2022: EUR 5.1 million). The reason for the decline was the significantly lower adjusted EBIT compared to the same quarter of the previous year and an increase in the weighted average cost of capital with regard to invested capital.

Financial result

The financial result amounted to EUR -3.9 million in the first quarter of 2023 and thus deteriorated significantly compared to the same period of the previous year (Q1 2022: EUR -1.5 million). The main driver of this development was significantly higher net interest expense (Q1 2023: EUR -4.0 million; Q1 2022: EUR -2.4 million), which resulted primarily from a noticeable increase in liabilities to banks (Q1 2023: EUR -3.9 million; Q1 2022: EUR -2.2 million). Furthermore, the previous year's figure included positive exchange rate effects from financing activities in the amount of EUR 1.3 million, which were lower in the current reporting quarter (Q1 2023: EUR 0.5 million).

Adjusted net profit for the period and adjusted earnings per share

Adjusted earnings for the period (after taxes) amounted to EUR 11.8 million in the current reporting period, a decrease of 43.6% compared to the same quarter of the previous year (Q1 2022: EUR 20.9 million). Based on an unchanged number of 31,862,400 shares, adjusted earnings per share amounted to EUR 0.37 and thus decreased by 44.1% compared to the reporting period of the previous year (Q1 2022: EUR 0.66).

3 CONSOLIDATED STATEMENT OF FINANCIAL POSITION

18 NOTES TO THE ASSET AND FINANCIAL POSITION

4 CONSOLIDATED STATEMENT OF CASH FLOWS

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Assets

in EUR thousands March 31, 2023 Dec 31, 2022 March 31, 2022
Non-current assets
Goodwill 398,045 402,270 396,694
Other intangible assets 187,006 195,944 209,742
Property, plant and equipment 301,859 295,841 290,905
Other non-financial assets 2,045 2,351 2,763
Other financial assets 874 944 1,139
Contract assets 0 2 0
Derivative financial assets 5,288 6,162 0
Income tax assets 1,083 1,119 1,233
Deferred income tax assets 20,557 19,818 19,661
916,757 924,451 922,137
Current assets
Inventories 243,467 250,796 215,905
Other non-financial assets 29,482 23,064 27,508
Other financial assets 6,725 2,820 3,477
Derivative financial assets 525 713 499
Income tax assets 1,196 3,407 3,382
Trade and other receivables 217,552 186,309 213,998
Contract assets 470 450 848
Cash and cash equivalents 108,640 168,670 167,014
608,057 636,229 632,631
Total assets 1,524,814 1,560,680 1,554,768

2 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

3 CONSOLIDATED STATEMENT OF FINANCIAL POSITION

18 NOTES TO THE ASSET AND FINANCIAL POSITION

4 CONSOLIDATED STATEMENT OF CASH FLOWS

5 DEVELOPMENT OF SEGMENTS

7 FORECAST

6 FURTHER INFORMATION

Equity and liabilities
in EUR thousands March 31, 2023 Dec 31, 2022 March 31, 2022
Equity
Subscribed capital 31,862 31,862 31,862
Capital reserve 210,323 210,323 210,323
Other reserves 16,448 28,106 17,661
Retained earnings 442,609 434,780 433,285
Equity attributable to shareholders of the parent company 701,242 705,071 693,131
Non-controlling interests 308 285 199
Total equity 701,550 705,356 693,330
Debt
Non-current liabilities
Pension obligations 9,420 9,174 16,151
Provisions 4,588 4,300 4,813
Loan liabilities 337,550 339,679 391,215
Other non-financial liabilities 715 671 816
Contract liabilities 69 0 195
Lease liabilities 33,213 30,173 35,671
Other financial liabilities 18 0 0
436,902 436,848 509,538
Current liabilities
Provisions 14,954 14,918 22,166
Loan liabilities 133,652 125,899 80,198
Other non-financial liabilities 44,841 39,958 43,268
Contract liabilities 528 1,295 614
Lease liabilities 10,883 10,576 10,435
Other financial liabilities 5,973 10,537 5,172
Derivative financial liabilities 1,645 1,578 2,270
Income tax liabilities 9,730 6,992 7,565
Trade and other payables 164,156 206,723 180,212
386,362 418,476 351,900
Total liabilities 823,264 855,324 861,438
Total equity and liabilities 1,524,814 1,560,680 1,554,768

Derivative financial liabilities 0 0 3,072 Deferred income tax liabilities 51,329 52,851 57,605

2 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Notes to the Asset and Financial Position

Total assets

Total assets amounted to EUR 1,524.8 million as of March 31, 2023, a decrease of 2.3% compared to the end of 2022 (Dec 31, 2022: EUR 1,560.7 million). Compared to March 31, 2022 (EUR 1,554.8 million), total assets decreased by 1.9%.

Non-current assets

Non-current assets amounted to EUR 916.8 million as of March 31, 2023, a slight decrease of 0.8% compared to the end of 2022 (Dec 31, 2022: EUR 924.5 million). This decrease is mainly due to currency effects in the area of goodwill and higher amortization within other intangible assets. Conversely, there was an increase in property, plant and equipment, due in particular to assets under construction. Non-current assets accounted for 60.1% of total assets as of the reporting date March 31, 2023 (Dec 31, 2022: 59.2%).

A total of EUR 9.1 million was invested in non-current assets in the period from January to March 2023 (Q1 2022: EUR 10.3 million). Furthermore, EUR 6.7 million (Q1 2022: EUR 17.1 million) was recognized as additions to noncurrent assets for the capitalization of rights of use for leased land and buildings, including in connection with exercised renewal options. Capital expenditures included own work capitalized in the amount of EUR 0.6 million (Q1 2022: EUR 0.6 million). The focus of investing activities in the first quarter was on the United States, China, the UK and Poland. There were no significant disposals.

Current assets

Current assets amounted to EUR 608.1 million as of the reporting date, a decline of 4.4% compared to the end of 2022 (Dec 31, 2022: EUR 636.2 million). Compared to the reporting date of the previous year, current assets decreased by 3.9% (March 31, 2022: EUR 632.6 million). Current assets accounted for 39.9% of total assets as of March 31, 2023 (Dec 31, 2022: 40.8%).

Increase in (trade) working capital

(Trade) working capital (inventories plus receivables less trade payables) amounted to EUR 296.9 million as of March 31, 2023, and was thus 28.9% higher than at the end of 2022 (Dec 31, 2022: EUR 230.4 million), also due to seasonal factors. The main drivers here were the strong increase in trade receivables (March 31, 2023: EUR 217.6 million; Dec 31, 2022: EUR 186.3 million), as well as a decrease in trade payables and similar liabilities compared to the end of 2022 (March 31, 2023: EUR 164.2 million; Dec 31, 2022: 206.7 million). (Trade) working capital increased by 18.9% compared to the previous year (March 31, 2022: EUR 249.7 million).

The slight increase in trade receivables (March 31, 2023: EUR 217.6 million; March 31, 2022: EUR 214.0 million) resulted from the higher volume of sales. The decline in trade payables and similar liabilities is due to reporting date effects (March 31, 2023: EUR 164.2 million; March 31, 2022: EUR 180.2 million).

Other non-financial assets

Other non-financial assets are as follows:

Other non-financial assets

in EUR thousands March 31, 2023 Dec 31, 2022
Prepaid expenses and deferred charges 8,161 6,214
Sales tax assets 15,478 12,797
Prepayments made 3,339 2,235
Consideration payable to a customer 2,564 2,675
Other assets 1,985 1,496
31,527 25,417

Equity ratio again at a high level

Group equity amounted to EUR 701.6 million as of March 31, 2023, a decrease of 0.5% compared to the end of 2022 (Dec 31, 2022: EUR 705.4 million). The equity ratio was 46.0% as of the quarterly reporting date (Dec 31, 2022: 45.2%). The development of equity is attributable in particular to the increase in retained earnings due to a positive result for the period (EUR 7.8 million) and the decline in other reserves due to negative currency translation differences (EUR 11.0 million).

Higher net debt

Net debt was EUR 414.3 million as of March 31, 2023, compared to EUR 349.8 million as of the end of 2022, an increase of 18.4% or EUR 64.5 million. This was mainly due to net cash outflows from total cash used in operating activities of EUR -36.5 million, net cash outflows from the procurement and disposal of non-current assets of EUR -18.3 million, and the increase in lease liabilities.

In addition, current interest expenses increased net debt in the first three months of the current fiscal year 2023. Cash-neutral net currency effects on financial liabilities and cash and cash equivalents had an offsetting effect on net debt as of March 31, 2023.

Gearing (net debt in relation to equity) was at 0.6 and thus above the level at the end of 2022 (Dec 31, 2022: 0.5). With the increase in net debt in the first quarter of 2023, leverage (net debt excluding hedging derivatives in relation to adjusted EBITDA for the past twelve months) was at 2.7 (Dec 31, 2022: 2.2).

2 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

3 CONSOLIDATED STATEMENT OF FINANCIAL POSITION

> NOTES TO THE ASSET AND FINANCIAL POSITION

4 CONSOLIDATED STATEMENT OF CASH FLOWS

5 DEVELOPMENT OF SEGMENTS

7 FORECAST

6 FURTHER INFORMATION

NORMA Group's net financial debt is as follows:

Net financial debt

in EUR thousands March 31, 2023 Dec 31, 2022
Loans 471,202 465,578
Derivative financial instruments - hedge accounting 1,645 1,578
Lease liabilities 44,096 40,749
Other financial liabilities 5,991 10,537
Financial liabilities 522,934 518,442
Cash and cash equivalents 108,640 168,670
Net debt 414,294 349,772

Financial liabilities

At EUR 522.9 million, NORMA Group's financial liabilities as of March 31, 2023, exceeded the level of December 31, 2022 (EUR 518.4 million) by 0.9%.

Loans changed due to repayments of liabilities from the commercial paper program in the amount of EUR 7.5 million and proceeds from the revolving credit facility in the amount of EUR 15.0 million. In total, EUR 58.0 million was drawn from the revolving credit facility in the total amount of EUR 100 million as of March 31, 2023 (Dec 31, 2022: EUR 43.0 million). Currency effects on the US dollar led to a slight decrease in loans in the opposite direction.

Lease liabilities increased compared to the end of 2022. Changes due to repayments (payment of lease installments), additions due to right-of-use assets, reassessments of renewal options and amendments to contracts, as well as interest effects resulted in a net increase; exchange rate effects mainly on liabilities denominated in US dollars – of subsidiaries in the United States – had a reducing effect.

The decrease in other financial liabilities mainly resulted from the decrease in liabilities from the ABS and factoring programs.

Non-current liabilities totaled EUR 436.9 million as of March 31, 2023, an increase of 0.0% or EUR 0.1 million compared to the end of 2022 (Dec 31, 2022: EUR 436.8 million). Current liabilities amounted to EUR 386.4 million on the reporting date of the current reporting quarter and thus decreased by 7.7% or EUR 32.1 million compared to December 31, 2022 (EUR 418.5 million).

The maturities of the syndicated loans and the promissory note loans as of March 31, 2023, were as follows:

Maturity of loans in 2023
in EUR thousands up to 1 year > 1 year
up to 2 years		 > 2 years
up to 5 years		 > 5 years
Syndicated bank facilities, net 58,000 251,325
Promissory note, net 56,454 18,000 68,500
Commercial paper 17,500
Total 131,954 18,000 319,825 0

4 CONSOLIDATED STATEMENT OF CASH FLOWS

Other non-financial liabilities were as follows:

Other non-financial liabilities were as follows:

in EUR thousands March 31, 2023 Dec. 31, 2022
Non-current
Government grants 547 349
Other liabilities 169 322
716 671
Current
Government grants 398 452
Tax liabilities (excluding income taxes) 6,300 5,133
Liabilities for social security 4,709 4,637
Personnel-related liabilities (e.g. vacation, bonuses, rewards) 32,703 29,039
Other liabilities 731 697
44,841 39,958
Total other non-financial liabilities 45,557 40,629

Derivative financial instruments

Foreign currency derivatives

As of March 31, 2023, foreign currency derivatives with a positive market value of EUR 0.1 million were held to hedge cash flows. Furthermore, foreign currency derivatives with a positive market value of EUR 0.4 million and foreign currency derivatives with a negative market value of EUR 1.4 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 used 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.

Interest rate hedges

Parts of NORMA Group's external financing were hedged against interest rate fluctuations by using interest rate swaps. Interest rate hedges with a positive fair value of EUR 5.2 million were held on March 31, 2023.

23 NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS

CONSOLIDATED STATEMENT OF CASH FLOWS

in EUR thousands Q1 2023 Q1 2022
Operating activity
Profit for the period 7,771 16,742
Depreciation and amortization 19,560 19,317
Gain (-) / loss (+) on disposal of property, plant and equipment -169 -1,652
Change in provisions 750 11
Change in deferred taxes -1,290 -1,410
Change in inventories, trade receivables and other assets not attributable to investing or financing
activities		 -35,804 -59,701
Change in trade payables and other liabilities not attributable to investing or financing activities -30,863 7,079
Change in liabilities from reverse factoring programs 124 1,622
Disbursements for share-based payments — —
Interest expenses for the period 4,376 2,598
Income (-) / expenses (+) from the valuation of derivatives 387 498
Other non-cash expenses (+) / income (-) -1,318 -1,347
Cash outflow from operating activities -36,476 -16,243
thereof cash inflow from interest received 309 105
thereof cash outflow from income taxes -1,970 -3,702
Investing activities
Acquisition of intangible assets and property, plant and equipment -18,764 -10,105
Proceeds from the sale of property, plant and equipment 454 6,407
Cash outflow for investing activities -18,310 -3,698
Financing activities
Interest paid -3,610 -1,887
Dividends paid to non-controlling interests — -140
Proceeds from loans 15,000 13,240
Repayment of loans -12,266 -7,846
Repayment of hedging derivatives -132 -4
Repayment of lease liabilities -3,079 -4,442
Cash outflow/inflow from financing activities -4,087 -1,079
Net change in cash and cash equivalents -58,873 -21,020
Cash and cash equivalents at the beginning of the fiscal year 168,670 185,719
Effects of currency translation on cash and cash equivalents -1,157 2,315
Cash and cash equivalents at the end of the period 108,640 167,014

Notes to the Consolidated Statement of Cash Flows

Group-wide financial management

A detailed overview of NORMA Group's general financial management can be found in the : ANNUAL REPORT 2022.

Net operating cash flow

Net operating cash flow in the reporting period January to March 2023 amounted to EUR -44.8 million and thus declined significantly compared to the same quarter of 2022 (Q1 2022: EUR -16.7 million). This development is mainly due to a higher build-up of (trade) working capital (Q1 2023: EUR -66.0 million; Q1 2022: EUR: -54.7 million) in relation to EBITDA in the reporting period compared to the end of 2022. This build-up resulted from the increase in trade receivables also due to the reduction in receivables sold under the ABS and factoring programs compared to December 31, 2022. In addition, trade payables were significantly lower compared to the end of the corresponding previous year. By contrast, inventories decreased slightly compared to the end of 2022.

Furthermore, the lower EBITDA margin in the reporting period January to March 2023 compared to the same period of the previous year had a reducing effect on net operating cash flow.

Higher investments from operating activities (Q1 2023: EUR 15.6 million; Q1 2022: EUR 6.1 million) also had a reducing effect on net operating cash flow compared to the same period of the previous year.

Cash flow from operating activities

Cash flow from operating activities amounted to EUR -36.5 million in the current reporting quarter (Q1 2022: EUR -16.2 million). Cash flow from operating activities is influenced by changes in current assets, provisions and liabilities (excluding liabilities related to financing activities).

As in the previous year, the company participated in a reverse factoring program as well as a factoring and an ABS program. The liabilities included in the reverse factoring program are reported under trade payables and similar liabilities. The cash flows from the reverse factoring, factoring and ABS programs are presented under cash flows from operating activities, as this corresponds to the economic substance of the transactions.

The adjustments for expenses from the measurement of derivatives of EUR 0.4 million (Q1 2022: EUR 0.5 million) included in cash flow from operating activities relate to changes in the fair value of foreign currency derivatives and interest rate swaps recognized in profit or loss, which are allocated to financing activities.

The adjusted other non-cash income (-)/expenses (+) mainly include income from the currency translation of external financing liabilities and intercompany monetary items amounting to EUR -0.9 million (Q1 2022: expenses of EUR -1.7 million). Cash flows from interest paid are reported under cash flows from financing activities.

Cash flow from investing activities

Cash flow from investing activities amounted to EUR -18.3 million in the first quarter of 2023 (Q1 2022: EUR -3.7 million) and includes net cash outflows from the acquisition and disposal of non-current assets in the amount of EUR 18.3 million (Q1 2022: EUR 3.7 million). This includes the change in liabilities for the acquisition of intangible assets and property, plant and equipment in the amount of EUR -3.2 million (Q1 2022: EUR -4.0 million). In the

same quarter of the previous year, cash flow from investing activities included a cash inflow from a sale and leaseback transaction in the amount of EUR 6.0 million.

Cash flow from financing activities

Cash flow from financing activities amounted to EUR -4.1 million in the first three months of 2023 (Q1 2022: EUR -1.1 million). This mainly includes net payments received from loans of EUR 7.2 million (Q1 2022: net payments made on loans of EUR 8.2 million), repayments of liabilities from the ABS and factoring programs of EUR 4.5 million (Q1 2022: EUR 2.8 million), repayments of liabilities from leases of EUR 3.1 million (Q1 2022: EUR 4.4 million) and payments for interest (Q1 2023: EUR 3.6 million; Q1 2022: EUR 1.9 million).

Net cash inflow from loans in the same quarter of the previous year included cash inflow from a sale-andleaseback transaction in the amount of EUR 3.2 million.

DEVELOPMENT OF THE SEGMENTS

for the period from January 1 to March 31, 2023

EMEA Americas Asia-Pacific Total segments Central functions Consolidation Group
in EUR thousands Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022
Total segment
revenue		 147,757 132,451 140,654 137,196 41,440 47,551 329,851 317,198 10,541 9,558 -25,440 -22,362 314,952 304,394
thereof inter
segment revenue		 9,540 7,874 3,024 2,864 2,335 2,066 14,899 12,804 10,541 9,558 -25,440 -22,362 — —
External sales 138,217 124,577 137,630 134,332 39,105 45,485 314,952 304,394 — — — — 314,952 304,394
Contribution to
external Group sales		 44% 41% 44% 44% 12% 15% 100% 100%
Gross profit1 76,252 71,942 73,653 69,019 20,170 23,306 170,075 164,267 n.a. n.a. -766 -776 169,309 163,491
EBITDA1 13,603 16,899 21,328 22,054 5,066 9,301 39,997 48,254 -2,879 -3,691 -390 -463 36,728 44,100
EBITDA margin1, 2 9.2% 12.8% 15.2% 16.1% 12.2% 19.6% 11.7% 14.5%
Depreciation
excluding PPA
amortization3		 -5,066 -4,881 -5,168 -4,500 -2,377 -2,211 -12,611 -11,592 -219 -265 -12,830 -11,857
Adjusted EBITA1 8,537 12,018 16,160 17,554 2,689 7,090 27,386 36,662 -3,098 -3,956 -390 -463 23,898 32,243
Adjusted EBITA
margin1, 2		 5.8% 9.1% 11.5% 12.8% 6.5% 14.9% 7.6% 10.6%
Amortization of
intangible assets
excluding PPA
amortization 3		 -395 -596 -751 -657 -66 -148 -1,212 -1,401 -86 -520 1
Adjusted EBIT 1 8,142 11,422 15,409 16,897 2,623 6,942 26,174 35,261 -3,183 -4,476 -391 -463 22,600 30,322
Adjusted EBIT
margin 1, 2		 5.5% 8.6% 11.0% 12.3% 6.3% 14.6% 7.2% 10.0%
Assets4 653,803 644,561 696,102 721,827 256,239 268,157 1,606,144 1,634,545 266,977 270,319 -339,840 -344,184 1,533,281 1,560,680
Liabilities5 244,714 242,004 260,159 288,077 47,341 56,373 552,214 586,454 578,757 575,565 -299,240 -306,695 831,731 855,324
CAPEX6 4,268 3,229 9,865 2,103 2,010 1,340 16,143 6,672 55 93 n.a. 12 16,198 6,765
Number of
employees7		 3,298 3,389 2,108 1,413 1,236 1,334 6,642 6,136 130 111 n.a. n.a. 6,772 6,247

1_The adjustments are explained in the section : ADJUSTMENTS.

2_Based on segment sales.

3_Depreciation from purchase price allocations.

4_Including allocated goodwill; taxes are included in the column "consolidation"; Prior-year figures as of Dec. 31, 2022.

5_Taxes are included in the column "consolidation"; Prior-year figures as of Dec. 31, 2022.

6_Including capitalized rights of use for movable assets.

7_Number of employees (average).

Notes to the Development of the Segments

The share of sales generated by foreign Group companies was 87.2% in the first three months of 2023. This represents an increase compared to the same quarter of the previous year (Q1 2022: 86.0%).

EMEA

External sales in the EMEA region amounted to EUR 138.2 million in the period from January to March 2023, thus exceeding the previous year's figure (Q1 2022: EUR 124.6 million) by 10.9%. Organic growth was positive and amounted to 11.8%. Currency effects had a minor negative impact of -0.9%.

The main reason for the increase in sales in the EMEA region in the first quarter of 2023 was a clearly visible recovery in customer demand in the European automotive market compared to the weak prior-year quarter. In light of this development, sales of Mobility and New Energy in the EJT business reached EUR 102.9 million (Q1 2022: EUR 91.5 million). The Standardized Joining Technology business, which includes the Water Management and Industrial Applications strategic business units, also performed well in the first three months of 2023 (Q1 2023: EUR 34.3 million; Q1 2022: EUR 32.1 million).The EMEA region's share of Group sales increased to 44% in the first quarter of 2023 (Q1 2022: 41%).

Adjusted EBIT in the EMEA region amounted to EUR 8.1 million in the current reporting period and was 28.7% below the level of the same quarter of last year (Q1 2022: EUR 11.4 million) despite higher sales. The adjusted EBIT margin reached 5.5% (Q1 2022: 8.6%). The reason for the decline in the first quarter of 2023 was a persistently high cost level in the materials area on the one hand. The development of operating profit in the EMEA region on the other hand was also impacted by higher personnel costs in connection with the reduction of production backlogs and higher costs for special freight charges.

Investments in the EMEA region increased significantly compared to the same quarter of the previous year and amounted to EUR 4.3 million in the first quarter of 2023 (Q1 2022: EUR 3.2 million). They primarily related to the sites in Serbia and Germany.

Americas

In the Americas region, external sales of EUR 137.6 million were generated in the first quarter of 2023 (Q1 2022: EUR 134.3 million), an increase of 2.5% compared to the same quarter of the previous year. This growth was driven by two main effects. On the one hand, currency effects primarily in connection with the US dollar (+4.6%) had a positive impact, and on the other hand, further price increases were successfully passed on to customers. This compensated for negative organic growth of -2.1%. The latter resulted primarily from a decline in the water business of the US subsidiary NDS compared to the exceptionally strong same period of the previous year (Q1 2023: organic -8.1%; Q1 2022: organic +28.5%). This was negatively impacted mainly due to a weatherrelated non-recurring effect that had an impact on customers' ordering behavior. By contrast, the industrial applications business in the Americas region developed quite positively, driven by the price increases implemented, so that the decline in sales in the water management business was almost fully offset. Sales of the SJT business in the period from January to March 2023 were thus virtually at the level of the same quarter of the previous year (Q1 2023: EUR 83.2 million; Q1 2022: EUR 83.3 million). Significant additional sales revenue was also realized in the Automotive business in the Americas region: Sales in the Mobility and New Energy area increased compared to the previous year, driven equally by higher selling prices and positive currency effects (Q1 2023: EUR 54.1 million; Q1

2022: EUR 50.5 million). Overall, the Americas' share of Group sales in the current reporting quarter remained unchanged compared to the previous year (Q1 2022: 44%) at 44%.

Adjusted EBIT in the Americas region declined by 8.8% year-on-year to EUR 15.4 million in the first quarter of 2023 (Q1 2022: EUR 16.9 million). The adjusted EBIT margin was 11.0% (Q1 2022: 12.3%). The margin in the Americas region was burdened on the one hand by higher personnel costs as a result of the significantly higher number of employees at a comparatively only slightly higher level of sales; on the other hand, inefficiencies and the inflexibility of personnel structures also had a negative impact on the adjusted EBIT margin. The slightly lower but still high price level for the main raw materials and for freight also had a negative impact.

In the first three months of 2023, investments totaling EUR 9.9 million were made in the Americas region (Q1 2022: EUR 2.1 million), mainly relating to the plants in the US.

Asia-Pacific

In the Asia-Pacific region, external sales in the first quarter of 2023 amounted to EUR 39.1 million and were thus 14.0% below the figure for the same quarter of the previous year (Q1 2022: EUR 45.5 million). The main reason for this was an organic decline in sales (-11.8%), with currency effects also having a diminishing effect on sales in the Asia-Pacific region (-2.3%).

The decline in sales was driven by a drop in business in both distribution channels: In the EJT business – with the strategic business unit Mobility and New Energy – (Q1 2023: EUR 25.7 million; Q1 2022: EUR 29.1 million), revenues declined as a result of the after-effects of the corona pandemic and a related significant drop in demand from the Chinese automotive industry, in particular. In the SJT business (Q1 2023: EUR 13.2 million; Q1 2022: EUR 16.2 million), NORMA Group was unable to repeat the growth of the good prior-year quarter, given that in addition to the ongoing negative effects of the pandemic a government project in India had been delayed. The decline in the SJT business affected both the Industrial Applications strategic business unit and Water Management. The Asia-Pacific region's share of Group sales thus decreased to around 12% in the first quarter of 2023 (Q1 2022: 15%).

Adjusted EBIT in Asia-Pacific decreased to EUR 2.6 million in the first quarter of 2023 (Q1 2022: EUR 6.9 million) due to significantly lower sales. The adjusted EBIT margin also decreased noticeably. It amounted to 6.3% (Q1 2022: 14.6%). The margin in the Asia-Pacific region was negatively impacted by the significantly lower level of sales, in particular.

Investments in the Asia-Pacific region amounted to EUR 2.0 million in the first quarter of 2023 (Q1 2022: EUR 1.3 million) and was primarily attributable to the plants in China.

5 DEVELOPMENT OF SEGMENTS

  • 7 FORECAST
  • > FORECAST FOR FISCAL YEAR 2023

6 FURTHER INFORMATION

The forecast for fiscal year 2023 is unchanged from the forecast published on March 28, 2023, as part of the Annual Report 2022. The Management Board's assumptions on the development of important performance indicators in fiscal year 2023 are shown in the following table

Forecast for fiscal year 2023 Organic group sales growth Medium single-digit organic Group sales growth EJT: Medium single-digit organic sales growth SJT: Medium single-digit organic sales growth EMEA: Medium single-digit organic sales growth Americas: Low single-digit organic sales growth APAC: Organic sales growth in the low double-digit range Cost of materials ratio Stable cost of materials ratio compared to the previous year Personnel cost ratio Stable personnel cost ratio compared to the previous year R&D investment ratio1 Around 3% of sales Adjusted EBIT margin Around 8% NORMA Value Added (NOVA) Between EUR –10 million and EUR 10 million Financial result Up to EUR – 12 million Adjusted tax rate Between 28% and 30% Adjusted earnings per share Moderate increase compared to the previous year Investment rate (excluding acquisitions) Investment ratio between 5% and 6% of Group sales Net operating cash flow Around EUR 70 million Dividend / pay-out ratio Approx. 30% to 35% of adjusted Group net income for the year CO2 emissions Below 9,800 tons of CO2 equivalents Number of invention applications More than 20 Number of defective parts (parts per million / PPM) Below 5.5

1_Due to the increasing strategic relevance of the area of water management, NORMA Group includes the R&D expenses in this area in the calculation from the reporting year 2020 onwards and uses total sales as a reference value to determine the R&D ratio (previously 5% of EJT sales).

This forecast was made under the assumption that in the course of 2023 no further significant negative effects related to the corona pandemic, especially in China, the war in Ukraine or other influencing factors worldwide will occur which could lead to significant pressure on NORMA Group's business development.

FURTHER INFORMATION

Financial Calendar, Contact and Imprint

Financial Calendar 2023

Date Event
May 11, 2023 Annual General Meeting 2023, Frankfurt/Main
Aug 8, 2023 Publication of Interim Report Q2 2023
Nov 7, 2023 Publication of Interim Statement Q3 2023

The financial calendar is constantly updated. Please visit the company website for the latest updates : WWW.NORMAGROUP.COM.

Publisher

NORMA Group SE Edisonstraße 4 63477 Maintal, Germany Phone: +49 6181 6102-740 E-Mail: [email protected] Internet: www.normagroup.com

Contact

E-Mail: [email protected]

Contact Persons at Investor Relations

Andreas Trösch

Vice President Investor Relations, Communications and Corporate Responsibility Phone: +49 6181 6102-741 E-Mail: [email protected]

Ivana Blazanovic

Senior Manager Investor Relations Phone: +49 6181 6102-7603 E-Mail: [email protected]

Chiara von Eisenhart Rothe

Senior Manager Investor Relations Phone: +49 6181 6102-748 E-Mail: [email protected]

Johannes Weiffenbach

Junior Manager Investor Relations Phone: +49 6181 6102-742 E-Mail: [email protected]

Editing

NORMA Group

Design and Realization

NORMA Group

Note to the Interim Statement

This Interim Statement is also available in German; if there are differences between the two, the German version takes precedence.

Note on rounding

Minor discrepancies in the amounts stated or percentage changes in different places of this report are possible due to commercial rounding.

Forward-looking statements

This Interim Statement contains certain forward-looking statements. Forward-looking statements are all statements that do not relate to historical facts and events and include such forward-looking terminology as "believe," "estimate," "assume," "expect," "anticipate," "intend," "may," "will" or "should" or expressions of a similar kind. Such forward-looking statements are subject to risks and uncertainties because they relate to future events and are based on the company's current assumptions that might not take place in the future or might not take place as expected. The company cautions that such forward-looking statements are not guarantees of future performance and that actual results, including the financial position and profitability of NORMA Group SE and the development of economic and regulatory conditions, can differ materially (in particular, on the downside) from those explicitly or implicitly assumed in these statements. Even if the actual results of NORMA Group SE, including its financial position and profitability and the economic and regulatory fundamentals, are in accordance with the forward-looking statements in this Annual Report, no guarantee can be given that this will continue to be the case in the future.

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