Slide 1: NORMA Group Full Year 2021 Results
NORMA GROUP FULL YEAR 2021 RESULTS MAINTAL, MARCH 23, 2022 1
Slide 2: Sales, Organic Sales, Adjusted EBIT
Sales Organic Sales Adjusted EBIT Increase of net sales of 14.7% 16.2% organic sales growth for Increased adjusted EBIT by leads to sales of EUR 1,091.9 the full year 2021 151.2% to million (2020: -12.1%) EUR 113.8 million (2020: EUR 952.2 million) (2020: EUR 45.3 million) Adj. EBIT Margin EPS NOVA
Slide 3: Equity, Net Debt, Leverage
Equity Net Debt Leverage Improved equity ratio of 44.6% Net debt decreased to EUR Improved leverage of 1.9x (2020: 41.7 %) 318.5 million (December 31, 2020: 3.4x) (2020: EUR 338.4 million) Net Operating Dividend Corporate Cashflow Responsibility Dividend proposal of Increased Net Operating EUR 0.75
Slide 4: Global Supply Chain Disruptions & Price Inflation
Global Supply Chain Price Inflation Disruptions & Lowered Production Rates ▪ Higher logistic and energy ▪ Scarcity of raw material costs ▪ Severe cuts in light vehicle ▪ Material cost inflation production Delayed Economic Recovery Ongoing Corona Challenges ▪ Strong H1 2021 with good ▪ Ongoing Corona
Slide 5: Segments & P&L Statement
SEGMENTS & P&L STATEMENT 5
Slide 6: Sales Development YoY
Sales Development YoY +14.7% − Increase in Net Sales by 14.7% to EUR 1200 1,091.9 million in FY 2021 compared Top Line to EUR 952.2 million in FY 2020, 800 mainly due to economic recovery. 1,091.9 952.2 400 13.0%* 47.1%* 8.0%* -1.2%* − Organic Growth of 16.2% in FY 2021 286.4 281.7 265.7 258.1 with
Slide 7: Regional Split of Sales
Regional Split 16% (in % actual vs. (prev. year)) (17%) APAC 42% (40%) EMEA 42% (43%) Americas AMERICAS Sales +18.5% +12.9% APAC Sales +9.9% 457 385 410 462 157 173 2020 2021 2020 2021 2020 2021 EMEA Sales 7
Slide 8: EMEA, Americas, APAC
EMEA Americas APAC ▪ EJT: Excellent recovery in H1 2021 ▪ EJT: Good rebound in H1 2021 leads ▪ EJT: Strong economic recovery in H1 leads to high single-digit to double-digit recovery of 22.3% in 2021 leads to double-digit organic development of 9.7% organic FY 2021 growth of 10.6% in FY 2021 growth
Slide 9: 10 years of around 7% CAGR
In EUR million 2011-2021: 1200 10 years of around 7% CAGR 1000 800 600 1,084 1,100 1,092 1,017 952 890 895 400 695 605 636 581 200 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Thereof organic development (in EUR million and %) Ø 10 Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 y
Slide 10: EJT and SJT Sales by Application
Engineered Joining Technology (EJT) Standardized Joining Technology (SJT) Industrial suppliers 24% 24% Water management (32%) (23%) 43% (42%) 57% 10% (58%) Heavy vehicles OEM (7%) 19% (19%) Industry application 23% (19%) Light vehicle OEM * FY 2021 (2020 in brackets) 10
Slide 11: Adjusted EBIT and margin development
▪ Economic recovery and strict cost control measures resulting in an increased EBIT margin of 10.4% compared to 4.8% in 2020 EUR million 17,7% 17,4% 17,7% 17,5% 17,6% 17,6% 17,7% 17,7% 17,5% 200 16,8% 18% 15,8% 16,0% 16,0% 15,2% 14,4% 14,2% 14,1% 17,1% 16,8% 16,9% 16,7% 16,8% 16,9% 16,6% 13,8% 13,6%
Slide 12: Material Costs, Gross Profit, Personnel Expenses
Material Costs (in EUR million and % of sales) Gross Profit Personnel Expenses (in EUR million and % of sales) (in EUR million and % of sales) 45.8% 600 43.8% 50% 800 500 40% 56.4% 31.3% 56.1% 26.1% 400 30% 600 500.0 250 20% 417.5 400 536.7 612.4 298.2 284.9 200 10% 200 50% 2020 2021 2020 2021 0 0%
Slide 13: Reported to Adjusted Reconciliation
in EUR million* Reported Adjustments Adjusted FY 2022 FY 2023 Sales 1,091.9 1,091.9 EBITDA 167.6 0 167.6 0 0 EBITDA margin 15.3% 15.3% EBITA 121.0 1.5 122.5 ca. 1.1 ca. 0.9 (depreciation PPA) (depreciation PPA) (depreciation PPA) EBITA margin 11.1% 11.2% ca. 21.8 ca. 21.4 EBIT 92.1 21.7 113.8 (incl.
Slide 14: Adjusted EPS, Reported EPS, Dividend per Share
Adjusted EPS in EUR Reported EPS in EUR Dividend per share 4 4 in EUR 1,0 3 3 2 2 0,5 0.70 0.75 1 2.27 1 1.76 0.77 0.18 0 0 0,0 2020 2021 2020 2021 2020* 2021* Net Income 24.3 72.3 5.5 56.1 (in EUR million) Proposal for dividend of EUR 0.75 or 33% of adjusted Group net profit for the fiscal year 202
Slide 15: Adjusted and Reported Income Statement
in EUR million Adjusted Reported and % 2020 2021 2020 2021 Sales 952.2 1,091.9 952.2 1,091.9 Gross Profit 536.7 612.4 536.7 612.4 EBITDA 99.3 167.6 99.3 167.6 in % of sales 10.4% 15.3% 10.4% 15.3% EBITA 54.6 122.5 51.1 121.0 in % of sales 5.7% 11.2% 5.4% 11.1% EBIT 45.3 113.8 20.1 92.1 in % of sales
Slide 16: Balance Sheet & Maturity Profile
BALANCE SHEET & MATURITY PROFILE 16
Slide 17: Working capital incl. factoring and ABS programs
Working capital incl. (Reverse) Factoring and ABS programs (in EUR million and % of sales) 600 18.3% 18.5% 18.1**% 20% 17.4% 17.1% 17.5% 16.9% 17.4% 16.1% 16.5% 15.6% Working Capital Ratio 400 15% increased by 50 BPs 16.5% 162 due to higher 200 124 13.2% 143 14.8% 162 16.5% 157 10% 15.5% 108 13.8% 1
Slide 18: Net Debt and Debt Ratios
Net Debt (in EUR million) Debt Ratios -5.9% Dec. 31, 2020 Dec. 31, 2021 600 Leverage 3.4x 1.9x 400 185 186 (Net debt / EBITDA) 523 504 Gearing 200 338 318 (Net debt / equity) 0.6x 0.5x 0 Debt Cash Net Debt Debt Cash Net Debt Dec. 31, 2020 Dec. 31, 2021 in EUR million 700 45 600 56 -22 669 590 500 ▪
Slide 19: Financial Instruments and Currencies
300 Financial Instruments (in EUR million) 42 200 247 100 42 65 16 27 0 4 14 7 2022 2023 2024 2025 2026 Bank Borrowings Promissory Note 1 Promissory Note 2 Promissory Note 3 Commercial Paper Program ▪ Solid maturity profile with longterm financing strategy established ▪ Next larger refinancing only
Slide 20: Balance Sheet Assets and Liabilities
in EUR million Dec 31, 2020 Dec 31, 2021 in EUR million Dec 31, 2020 Dec 31, 2021 Assets Equity and liabilities Non-current assets Equity Goodwill / Other intangible assets / Property, 870.3 883.2 Total equity 589.5 668.6 plant & equipment Other non-financial assets / Derivative Non-current and curr
Slide 21: Cash Flow, Norma Value Added & EU Taxonomy
CASH FLOW, NORMA VALUE ADDED & EU TAXONOMY 21
Slide 22: Net Operating Cash Flow
Net Operating Cash Flow in EUR million 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Variance (2021 to 2020) (Adjusted) EBITDA 117.0 120.8 129.3 138.4 177.5 179.4 199.7 201.4 187.2 99.3 167.6 68.8% Δ ± Trade Working capital -19.5 -9.8 +5.1 +10.4 -0.6 +17.0 -19.1 -13.7 -9.5 20.2 -20.4 -201.0
Slide 23: NORMA Value Added (NOVA)
in EUR million 2020 2021 • The NORMA Value Added (NOVA) is NORMA Group‘s Adjusted EBIT after taxes 36.1 81.2 long term strategic target Capital Cost (WACC x CE per January 1st) -82.4 -65.2 • NORMA Group determines the annual value creation in form of the NORMA Value Added (NOVA) NOVA -46.4 16.0 • NO
Slide 24: First time adoption of the EU Taxonomy
▪ First time adoption of the EU Taxonomy for the FY 2021 as required by the EU Commission ▪ As a preliminary step towards a comparable reporting on sustainable economic activities the EU Taxonomy reporting for FY 2021 covers the „eligibility“ reporting ▪ From 2022 onwards the EU Commission further r
Slide 25: Status "Get on track"
STATUS „GET ON TRACK“ 25
Slide 26: Get on track: Scope and savings
EUR 50 million savings p.a. Examples Savings: ▪ Increase share of best cost country production Locations EUR 20 ▪ Reduction of complexity million Savings: Scope ▪ Streamlining of product portfolio through active portfolio management Product Portfolio EUR 5 ▪ Bundle and transfer low volume products a
Slide 27: "Get on track" program well under way
"Get on track" program well under way with further savings in 2022 2020 2021 2022 2023 2024 ongoing 60 ~50 ~50 ~40 ~40 40 ▪ Successful savings of 29.1 27.4 EUR 27.4 million in 2020 25.9 ~30 and 2021 20 ▪ Additional costs of EUR ~10 ~10 1.5 million in 2021 (not 5.5 adjusted) 1.5 0 -20 -23.6 -40 one t
Slide 28: Guidance & Outlook
[cXS5BA GUIDANCE & OUTLOOK
Slide 29: 2022 Guidance
Medium to high single-digit Organic Group Sales Growth Financial Result Up to EUR – 10 million Organic Sales Growth Tax Rate Between 27% and 29% EJT Medium to high single-digit Organic Sales Growth SJT Medium to high single-digit Organic Sales Growth Adjusted Rarnings Per Share Significant increase
Slide 30: Business Focus, M&A, Digitization, Transformation
Business Focus Mergers & Digitization Global growth in Water Acquisitions Expand e-commerce Management and Industry Continue dialogue with channels Applications with selective expansion in Mobility & New potential M&A targets in Water Energy Management and Industry Applications as well as Mobility a
Slide 31: Thank You. Questions?
THANK YOU. QUESTIONS?
Slide 32: Financial Calendar and Contact
Event Date Publication Interim Results Q1 2022 May 4, 2022 Annual General Meeting May 17, 2022 Publication Interim Results Q2 2022 August 10, 2022 Publication Interim Results Q3 2022 November 2, 2022 Contact Andreas Troesch Vice President Investor Relations, Communications & Corporate Responsibility
Slide 33: Forward-looking statements 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