Slide 1: NORMA Group SE Full Year Results 2020
NORMA Group SE Full Year Results 2020 Maintal, March 24, 2021 1
Slide 2: Facts and Figures FY 2020 – Financials (I/II)
Facts and Figures FY 2020 – Financials (I/II) Decrease of net sales of 13.4% leads to sales of EUR 952.2 million (2019: EUR 1,100.1 million) Sales mainly driven by COVID-19 pandemic Organic Sales 12.1% organic sales decline for the full year 2020 (2019: -2.0%) Adjusted Adjusted EBITA decreased to EU
Slide 3: Facts and Figures FY 2020 – Financials (II/II)
Facts and Figures FY 2020 – Financials (II/II) Equity Strong balance sheet with a slightly improved equity ratio of 41.7% (2019: 41.6 %) Net debt decreased to EUR 338.4 million (2019: EUR 420.8 million) due to strict cash collection and cash Net Debt management Leverage at 3.4x (December 31, 2019: 2
Slide 4: Challenging year behind – all eyes on 2021 and beyond
Challenging year behind – all eyes on 2021 and beyond • COVID-19 pandemic affected Looking forward NORMA Group’s business in (2021) 2020 NORMA Groups actions • P&L impacted by costs due to • Strong focus on pandemic- faster implementation of “Get related health and safety on track” change program me
Slide 5: Top Line Development
Top Line Development COVID-19 lockdown effect Sales Development Sales Development YoY Change Thereof Thereof 1100 in EUR million 2019 2020 Change in % organic currency -133.3 1000 Q1 275.6 253.6 -22.0 -8.0% -8.9% 0.9% 900 -14.6 Q2 289.0 191.5 -97.6 -33.8% -33.9% 0.1% 1,100.1 800 Q3 274.0 245.9 -28.0
Slide 6: Segment Reporting: EMEA
Segment Reporting: EMEA Net Sales (in EUR million) Organic Decline (in EUR million) 500 -15.7% 0 -11.4 0% • Organic Decline 400 -75.6 − Sharp drop of 52.6% in Q2 2020 EJT sales due to -20 -2.3% -5% COVID-19 pandemic-related weak European automotive 300 -40 -10% 486 sector 200 410 -60 -15% − EJT sale
Slide 7: Segment Reporting: Americas
Segment Reporting: Americas Net Sales (in EUR million) Organic Decline (in EUR million) • Organic Decline 500 -14.5% 0 0% − Significant drop in sales of 26.5% in the EJT business for 400 -13.6 -55.8 -3.1% the FY 2020 due to COVID-19 pandemic-related weak -20 -5% 300 automotive sector 200 451 − Sales
Slide 8: Segment Reporting: Asia-Pacific
Segment Reporting: Asia-Pacific Net Sales (in EUR million) Organic Decline (in EUR million) 200 2.3% -3.8% 6 3% • Organic Decline 150 4 2% − Very good recovery of the EJT business starting in Q2 1% 2020 (except for Q1 2020 all quarters showed y-o-y 100 2 3.4 0% 163 157 0 -1.2% growth) led to an orga
Slide 9: Revenue Track Record
Revenue Track Record In EUR million 1200 2010-2020: 10 years of around 7% CAGR 1000 800 600 1,084 1,100 1017 890 895 952 400 695 605 636 581 490 200 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Thereof organic development (in EUR million and %) Ø 10 Year 2011 2012 2013 2014 2015 2016 201
Slide 10: Balanced Industry Mix with two strong Ways to the Market
Balanced Industry Mix with two strong Ways to the Market* thereof water management thereof industrial supplier 23% (20%) 32% (32%) SJT EJT = Engineered Joining Technology EJT 42% (39%) SJT = Standardized Joining Technology** 58% (61%) 19% thereof industry 7% (19%) application (9%) 19% thereof heavy
Slide 11: EBITA & EBIT Margin Development
EBITA & EBIT Margin Development • Economic recovery and strict cost control measures resulting in a fast recovery of margins after weak Q2 2020 • Pro forma EBITA and EBIT margin excl. costs related to the "Get on track" change program at 8.8% and 7.8% in 2020 EUR million 17,7% 17,4% 17,7% 17,5% 17,6
Slide 12: (Adjusted) Profit & Loss Development
(Adjusted) Profit & Loss Development (Adjusted) Material Costs (in EUR million and % of sales) (Adjusted) Gross Profit (Adjusted) Personnel Expenses (in EUR million and % of sales) (in EUR million and % of sales) 600 43.4% 43.8% 50% 800 57.3% 56.4% 31.3% 40% 600 500 27.5% 400 30% 400 250 20% 477.4 4
Slide 13: Operational Adjustments 2020
Operational Adjustments 2020 in EUR million* Reported Adjustments Adjusted Sales 952.2 952.2 EBITDA 99.3 0 99.3 EBITDA margin 10.4% 10.4% EBITA 51.1 3.5 54.6 (depreciation PPA) EBITA margin 5.4% 5.7% EBIT 20.1 25.1 45.3 (incl. EUR 21.7 million amortization PPA) EBIT margin 2.1% 4.8% Net Profit 5.5 1
Slide 14: Outlook on Adjustments 2021-2022
Outlook on Adjustments 2021-2022 in EUR million FY 2020 FY 2021* FY 2022* Costs related to the „Get on track“ change EBITDA level 0 0 0 program are not being adjusted EBITA level 3.5 ca. 1.5 ca. 1.0 (depreciation PPA) (depreciation PPA) (depreciation PPA) 25.1 ca. 21.4 ca. 20.5 EBIT level (incl. EUR
Slide 15: EPS and Dividend Development
EPS and Dividend Development Adjusted EPS in EUR Reported EPS in EUR Dividend per share 4 4 in EUR 1,0 3 3 2 2 0,5 2.76 0.70 1 1 1.83 0.77 0.18 0.04 0 0 0,0 2019 2020 2019 2020 2019* 2020* Net Income 87.8 24.3 58.4 5.5 (in EUR million) Proposal for dividend of Minimum dividend of EUR 0.70 or around
Slide 16: Working Capital Development
Working Capital Development Working capital incl. (Reverse) Factoring and ABS programs (in EUR million and % of sales) 400 18.1% 18.3% 18.5% 18.1**% 20% 17.4% 17.1% 17.5% 16.9% 16.1% 16.5% 15.6% 13.2% 143 14.8% 162 15% 15.0% 153 16.5% 157 200 13.8% 123 13.9% 124 15.5% 108 13.9% 81 13.1% 79 14.2% 90
Slide 17: Equity Ratio on strong level of 41.7%
Equity Ratio on strong level of 41.7% Equity decreased by EUR 39 EUR million million mainly due to exchange 700 differences on translation of foreign opperations while profit only contributed EUR 6 million due to COVID-19 pandemic 6 -1 -44* 600 629 590 500 Equity 2019 Profit Dividend Others* Equity
Slide 18: Net Debt and Net Debt Ratios
Net Debt and Net Debt Ratios Net Debt* Debt Ratios (in EUR million) in EUR million Dec 31, 2019 Dec 31, 2020 421 600 338 Leverage 2.2x 3.4x (Net debt / adjusted EBITDA) 400 Gearing 601 523 0.7x 0.6x 200 (Net debt / equity) 0 -180 -185 Leverage excluding costs related to "Get on track" (leverage rele
Slide 19: Solid Maturity Profile
Solid Maturity Profile Financial Instruments (in EUR million) Bank borrowing of EUR 239 300 27 million with the opportunity of 200 prolongation until 2026 20 239 100 62 41 16 4 42 0 7 14 7 2021 2022 2023 2024 2025 2026 Bank Borrowings Promissory Note 1 Promissory Note 2 Promissory Note 3 Commercial
Slide 20: Strong Cash Flow Development 2011 - 2020
Strong Cash Flow Development 2011 - 2020 Excellent Net Operating Cash Flow in a challenging year 2020 in EUR million 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Variance (2020 to 2019) (Adjusted) EBITDA 117.0 120.8 129.3 138.4 177.5 179.4 199.7 201.4 187.2 99.3 -47.0% Δ ± Trade Working capital
Slide 21: NORMA Value Added and ROCE
NORMA Value Added and ROCE NORMA Value Added in EUR million 2019 2020 • The NORMA Value Added (NOVA) is NORMA Group‘s long term strategic target Adjusted EBIT after taxes 98.4 36.1 • NORMA Group determines the annual value creation in Capital Cost (WACC x CE per January 1st) -81.1 -82.4 form of the
Slide 22: "Get on track" (I/II) – Scope
"Get on track" (I/II) – Scope EUR 50 million savings p.a. Examples ▪ Increase share of best cost country production Saving: Locations EUR 20 ▪ Reduction of complexity million Saving: Scope ▪ Streamlining of product portfolio through active portfolio management Product Portfolio EUR 5 ▪ Bundle and tr
Slide 23: "Get on track" (II/II) – Costs & Savings Timeline
"Get on track" (II/II) – Costs & Savings* Timeline "Get on track" program well under way with major savings in 2021 2020 2021 2022 2023 2024 ongoing Most costs already 60 booked in 2020 with only ~50 additional EUR 5 million ~50 to come in 2021 (not ~40 ~40 adjusted) 40 ~30 ~30 29.1 20 ~25 ~10 ~10 5
Slide 24: Strategy Update
Strategy Update NORMA Group „Strategy 2025“ including Corporate Responsibility Roadmap Focus on our stakeholders … Strong focus on sustainable economic activities ✓ Exceeding customer … by being market leader in Joining & Fluid-handling technology … expectations Maintain high quality standards … in
Slide 25: NORMA Group „Strategy 2025“ – Strategic focus by region
NORMA Group „Strategy 2025“ – Strategic focus by region Americas EMEA Asia-Pacific ▪ Water Management: ▪ Water Management: ▪ Water Management: Expansion of stormwater and irrigation business Organic expansion might be enhanced via M&A Expansion of existing business ▪ Industry Applications: ▪ Industr
Slide 26: Proven business model addresses global megatrends
Proven business model addresses global megatrends Continuous new Emission developments help Storm water products help Landscape customers avoid landscape reduction customers fulfill fleet and structure damages Protection consumption regulations Assembly Water time reduction Value creation by NORMA p
Slide 27: Business Opportunities in Water Management
Business Opportunities in Water Management Water Management Market for Joining and Fluid Handling Technology Quantity of Water Stormwater Quality of Water Reuse of Water Management Efficient Landscape Irrigation Flow Management and Others NORMA Group‘s current water business Further Business Opportu
Slide 28: Growth opportunities for E-Mobility Developments
NORMA Group’s growth opportunities for E-Mobility Developments Growth opportunities within the car Further growth opportunities outside the car Battery Thermal Management Coolant Systems Charging stations ✓ Joining technology within Power Electronics and Motors Cooling ✓ and wallboxes for renewable
Slide 29: Environmental Impact of Products as key selling point
Environmental Impact of Products as key selling point Climate Water • eM Twist Quick Connector, designed for e-mobility • Drip irrigation saves up to 60% in comparison to regular • Less weight: More than 25% lighter than before sprinkler irrigation • Reduced CO2 emissions: Estimated 32% saved in the
Slide 30: Corporate Responsibility Focus Areas
NORMA Groups Corporate Responsibility Focus Areas Climate Climate (scope 1 and 2) target in line with recommendations of science-based targets initiative E Sustainable products Integration of environmental aspects into product design process Green Financing Sustainability linked loan connects financ
Slide 31: Corporate Responsibility Targets for 2021
Corporate Responsibility Targets for 2021 Environment Social Governance Incident rate CO2 emissions Defective parts < 4.6 50,470 tons < 10 Indicator: accidents / 1,000 Indicator: Scope 1 and 2, tons Indicator: parts per million employees Water consumption Training hours Customer complaints 2% improv
Slide 32: Ratings confirm NORMA Group’s approach to CR
Ratings confirm NORMA Group’s approach to CR Rating Assessment 2020 Awards − AA (on a scale from CCC to AAA) ▪ 2017: Awarded “Building Public Trust MSCI ESG − Top 25 % within the industrials Award” (best non-financial report MDAX) benchmark by PwC − Top 1% of rating universe (>35,000 ▪ 2020: FOX Fin
Slide 33: Outlook 2021 – Strategy
Outlook 2021 – Strategy 1 Continue to develop Water Management and Industry Applications 2 Expand Mobility and New Energy 3 Expand e-commerce channels 4 Execution of “Get on track” projects as a foundation of further profitable growth 5 Continue dialogue with potential M&A targets in Water Managemen
Slide 34: Outlook 2021 – Company Guidance
Outlook 2021 – Company Guidance Organic sales growth Low double-digit Financial result Up to EUR – 13 million Strong organic sales growth in the low double-digit Tax rate Between 27% and 29% EJT range Significant organic sales growth in the high single- SJT Adjusted earnings per share digit range St
Slide 35: NORMA Group – Key Investment Highlights
NORMA Group – Key Investment Highlights Focus on Joining & Fluid-handling technology with profitable & sustainable growth in existing & future markets driven by global 1 mega trends such as climate change and resource scarcity 2 Active in Water Management, Industry Applications and Mobility & New En
Slide 36: Thank you - Q&A
Thank you - Q&A Please use the following dial-in for your questions: Germany: + 49 69201744220 United Kingdom: + 44 2030092470 USA: + 1 8774230830 PIN: 74288627# 36
Slide 37: Disclaimer
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 ‘