Norma Group Se · XETR:NOEJ
Norma — FY2023 Earnings Presentation
27 slides from Norma's earnings presentation, Mar 26, 2024
Slide 1: NORMA Group Full Year 2023 Results
NORMA GROUP FULL YEAR 2023 RESULTS MAINTAL, MARCH 26, 2024 1
Slide 2: Facts & Figures FY 2023 – Key Figures (I/II)
Facts & Figures FY 2023 – Key Figures (I/II) Sales Organic Sales Adjusted EBIT Net sales totaled to EUR 1,222.8 Organic sales growth of 0.7% Adjusted EBIT levelled at million for the full year 2023 EUR 97.5 million (2022: EUR 1,243.0 million) (2022: 7.1%) (2022: EUR 99.0 million) Adj. EBIT Margin EP
Slide 3: Facts & Figures FY 2023 – Key Figures (II/II)
Facts & Figures FY 2023 – Key Figures (II/II) Equity Net Debt Leverage Improved equity ratio of 46.4% Net Debt decreased to Stable Leverage at 2.2x EUR 345.4 million (2022: 45.2%) (Dec 31, 2022: 2.2x) (2022: EUR 349.8 million) Net Operating NOVA Corporate Cashflow NORMA Value Added Responsibility at
Slide 4: FY 2023 Top Line Development
FY 2023 Top Line Development 1500.0 20.0 20.0 -1.6%* 4.0%* 1.3%* 0.7%* 4.0 1000.0 10.0 0.0 2.1%* -6.4 -16.6 -10.3 -29.3 -2.0%* -3.4%* 6.5 12.6 9.0 -5.2%* 500.0 0.0 -20.0 3.5%* 1.9%* -6.7%* -4.8 -5.3 -5.1%* -1.5%* -2.4%* -1.5%* 1243.0 315.0 324.0 297.2 286.6 1222.8 0.0 -10.0 -40.0 FY 22 Q1 23 Q2 23 Q
Slide 5: FY 2023 – Sales Development by Regions (I/II)
FY 2023 – Sales Development by Regions (I/II) 14% (14%) Regional 44% Split (46%) Americas EMEA (in % actual vs. 42% APAC prev. year) (39%) AMERICAS Sales EMEA Sales APAC Sales -3.3% -6.9% 5.2% 574 535 489 515 180 174 2022 2023 2022 2023 2022 2023 5
Slide 6: FY 2023 – Sales Development by Regions (II/II)
FY 2023 – Sales Development by Regions (II/II) Americas EMEA APAC ▪ SJT: Weaker demand in IA and a soft H1 in WM ▪ SJT: Improved product availability lead to organic ▪ SJT: Weaker demand leads to an organic growth lead to organic growth of -4.0% with Water growth of 1.5%. of -4.1% in FY 2023 Managem
Slide 7: FY 2023 Balanced Sales Mix
FY 2023 Balanced Sales Mix Engineered Joining Technology (EJT) Standardized Joining Technology (SJT) Industrial Suppliers Water Management 24% 24% (25%) (25%) Mobility & New Energy 58% 42% (56%) (44%) Heavy Vehicles OEM 14% (11%) 18% (19%) Industry Applications 20% (20%) Light Vehicles OEM * FY 2023
Slide 8: FY 2023 (Adjusted) Profit & Loss Development
FY 2023 (Adjusted) Profit & Loss Development Material Costs Gross Profit Personnel Expenses (in EUR million and % of sales) (in EUR million and % of sales) (in EUR million and % of sales) 48.0% 26.3% 45.0% 54.6% 24.9% 53.5% -597.0 664.4 668.0 -309.4 -321.8 -549.6 2022 2023 2022 2023 2022 2023 Person
Slide 9: FY 2023 – Adjusted EBIT Margin by Region
FY 2023 – Adjusted EBIT Margin by Region AMERICAS adj. EBIT Margin EMEA adj. EBIT Margin APAC adj. EBIT Margin 12.7% 11.6% 2.6% 4.4% 10.6% 10.8% 2022 2023 2022 2023 2022 2023 9
Slide 10: Operational Adjustments 2023 and Outlook 2024 – 2025
Operational Adjustments 2023 and Outlook 2024 – 2025 in EUR million* Reported Adjustments Adjusted FY 2024 FY 2025 Sales 1,222.8 1,222.8 EBITDA 154.0 0.2 154.2 EBITDA margin 12.6% 12.6% 21.4 approx. 22.0 approx. 22.0 EBIT 76.1 97.5 (incl. EUR 20.3 million amortization PPA) (mainly related to PPA eff
Slide 11: FY 2023 EPS and Dividend Development
FY 2023 EPS and Dividend Development Dividend policy Payout ratio of approx. 30%-35% of adjusted Group annual earnings Adjusted EPS in EUR Reported EPS in EUR Dividend per share in EUR 3.00 3.00 2.00 -21.6% 2.00 Dividend proposal of EUR 0.45 or 32.7% -29.3% of adjusted Group net profit for the 1.00
Slide 12: FY 2023 Trade Working Capital Development
FY 2023 Trade Working Capital Development Trade Working capital incl. (Reverse) Factoring and ABS programs Factoring Programs* (in EUR million and % of sales) (in EUR million and % of sales) 18.5% 18.9% 800 20% 100 30% 21.1% 20.5% 15.0% 186 14.9% 185 20% 20.2% 251 17.7% 220 50 0 10% -16.6% -207 -14.
Slide 13: FY 2023 Equity Ratio, Net Debt and Debt Ratios
FY 2023 Equity Ratio, Net Debt and Debt Ratios Net Debt (in EUR million) Debt Ratios December 31, December 31, -1.2% 2022 2023 600 600 Leverage 2.2x 2.2x 400 169 400 165 (Net debt / adj. EBITDA) Gearing 518 511 0.5x 0.5x 200 350 200 (Net debt / equity) 345 — — Debt Cash Net Debt Debt Cash Net Debt D
Slide 14: Solid Maturity Profile
Solid Maturity Profile Financial Instruments (in EUR million) Currencies (in EUR million) 38 300 300 42 110 200 200 100 56 27 100 16 27 2 250 0 18 27 27 219 56 2024 2025 2026 2028 2030 0 2024 2025 2026 2028 2030 Syndicated Loan Promissory Note 1 Promissory Note 2 Promissory Note 3 Promissory Note 4
Slide 15: Cash Flow Development
Cash Flow Development Net Operating Cash Flow NORMA Value Added Variance in EUR million 2022 2023 in EUR million 2022 2023 (2023 to 2022) (Adjusted) EBITDA 157.2 154.2 -1.9% (Adjusted) EBITDA 64.2 57.2 Δ ± Trade Working capital -38.8 -5.6 -85.6% Capital Cost (WACC* x CE per January 1st) 91.3 100.8 N
Slide 16: Non-Financial Highlights 2023
Non-Financial Highlights 2023 Defective parts (parts per million) ▪ AA (on a scale from CCC to AAA): „MSCI leader“ ▪ Top 38% within the industrials 2022 2023 benchmark -24.1% 2.9 2.2 ▪ Score: 75 (on a scale from 0 to 100) ▪ Top 5% of rating universe: Gold standard CO2 emissions marked-based (Scope 1
Slide 17: Outlook 2024 – Company Guidance
Outlook 2024 – Company Guidance Group sales Group sales in the range of around EUR 1.2 billion to around EUR 1.3 billion Sales in EMEA region Sales in the range of around EUR 500 million to around EUR 550 million Sales in Americas region Sales in the range of around EUR 530 million to around EUR 550
Slide 18: NORMA Group Step Up Program
NORMA Group Step Up Program mindset / cultural change Step Up intends to change the mindset of NORMA Group employees and to create a new culture of openness and focus. continuous process - KAIZEN Step Up is to become a continuous process that enables and supports a sustainable and profitable growth
Slide 19: NORMA Group Step Up Program
NORMA Group Step Up Program With the Step Up program, NORMA Group ensures long-term profitable growth and operational efficiency Growth & Efficiency Step Up consists of growth plans for the three strategic business units (SBUs) and measures to increase operational efficiency NORMA Group’s three SBUs
Slide 20: NORMA Group Step Up Program: Growth Measures
NORMA Group Step Up Program: Growth Measures 40% 60% Product development for alternative Growth via extension of Growth via extension of powertrain technology Digital Commerce Digital Commerce Growth with focus on Growth via new business (product Growth via new business (product China & E-Mobility d
Slide 21: NORMA Group Step Up Program: Efficiency Measures
NORMA Group Step Up Program: Efficiency Measures Reduce complexity in supply chain NORMA Business System (NBS) processes Implementation Increase connection between sales, Further automatization & production and supply chain Industry 4.0 management Implementation and constant Better use of existing c
Slide 22: NORMA Group Step Up Program: Capital Allocation
Use C pro apex jec s thr ts by pent esh fo old settin r hig for g-u h m opp n p a ort ew b marg rgin uni usi ties nes in s Imp le com men t pre mitte dedic sid e ent (boa ated s s) rd te Ca for d plus ering pex eci S spe cion BU nt so n Ena ble s a pric les or ing gan to m isat ark ion v i Improved
Slide 23: NORMA Group Step Up Program: Overall Aim
NORMA Group Step Up Program: Overall Aim Water Water Management Management ~40% Via execution of ~40% Mobility & ~60% Industry Step Up Mobility & ~60% Industry New Energy Applications New Energy Applications Current sales split Midterm sales split with around 60% Mobility & New Energy business with
Slide 24: NORMA Group Step Up Program: Margin Development
NORMA Group Step Up Program: Margin Development Further growth & efficiency measures lead to NORMA Group’s EBIT midterm 15-20% 15-20% Double-digit margin on double-digit levels rgy w Ene & Ne ons nt plic ry e nag r Ap dust Ma Wate em ati ty bili In Mo 24
Slide 25: NORMA Group Step Up Program: Key Highlights FY 2023
NORMA Group Step Up Program: Key Highlights FY 2023 Transfer of WM-Product to IA Application ▪ Access-Boxes from Water Management (WM) were specified for applications in the telecommunications industry. ▪ Clear value add for customer (Lighter, easy to install, more durable, easy access for maintenan
Slide 26: Thank You. Any Questions?
Z . THANK YOU. ‘ f ANY \_ QUESTIONS? /
Slide 27: Disclaimer
Disclaimer This presentation contains forward-looking statements on the business development of NORMA Group SE that are based on management’s current assumptions and judgments regarding future events and results. All statements in this presentation other than statements of historical fact could be f