Norma Group Se · XETR:NOEJ
Norma — Q3 2022 Earnings Presentation
89 slides from Norma's earnings presentation, Nov 2, 2022
Slide 1: NORMA Group Third Quarter 2022 Results
NORMA GROUP THIRD QUARTER 2022 RESULTS Maintal, November 2, 2022 1
Slide 2: Table of Contents
Table of Contents 01 04 Facts & Figures Q3 2022 Cash Flow & NORMA Value Added Strong sales growth in difficult market environment due to Low Net Operating Cash Flow due to higher TWC outflow positive pricing effects and CapEx → Go to p. 3 → Go to p. 12 Top Line, Segment Reporting and P&L Guidance 02
Slide 3: Facts & Figures Q3 2022 – Key Figures
Facts & Figures Q3 2022 – Key Figures Sales Adj. EBIT Adj. EBIT margin Increase of net sales of 19.9% Adjusted EBIT increased Adjusted EBIT margin of 8.5% leads to sales of EUR 318.6 (Q3 2021: 8.6%) by 18.3 % to EUR 27.0 million million (Q3 2021: EUR 22.8 million) (Q3 2021: EUR 265.7 million) Organi
Slide 4: Top Line Development
Top Line Development Sales Development +12.8% 1000 − Increase in Net Sales by 19.9% to EUR Top Line 318.6 million in Q3 2022 compared to EUR 265.7 million in Q3 2021 500 6.3%* 12.9%* 19.9%* − Organic Growth of 10.3% in Q3 2022 940.9 833.8 with strong performance in Americas and EMEA 304.4 317.9 318.
Slide 5: Segment Reporting (I/II) – Q1-Q3 2022
Segment Reporting (I/II) – Q1-Q3 2022 14% (15%) Regional 47% Split Q1-Q3 2022 (41%) (in % actual vs. APAC Q1-Q3 2021) 39% (44%) EMEA AMERICAS Sales Americas +27.7% APAC Sales +0.9% 441 346 +6.5% 363 366 Q1-Q3 21 Q1-Q3 22 125 134 Q1-Q3 21 Q1-Q3 22 Q1-Q3 21 Q1-Q3 22 EMEA Sales 5
Slide 6: Segment Reporting (II/II) – Q3 2022
Segment Reporting (II/II) – Q3 2022 EMEA Americas APAC ▪ EJT: Very strong double-digit organic ▪ EJT: Strong double-digit organic ▪ EJT: Organic growth of 9.4% in Q3 growth of 20.3% in Q3 2022 mainly growth of 14.6% in Q3 2022 mainly 2022 mainly due to higher volumes, due to positive pricing effects
Slide 7: EBITDA & EBIT Margin Development
EBITDA & EBIT Margin Development Sequential margin improvement due to strict cost control and higher pricing EUR million 20.0% 20.3% 19.9% 20.0% 20.0% 22% 19.6% 19.1% 18.7% 18.9% 17.6% 18.0% 17.9% 18.0% 17.5% 17.5% 200 16.3% 18% 15.1% 14.5% 14.0% 16.8% 16.9% 16.7% 16.6% 16.5% 13.6% 13.1% 16.3% 16.2%
Slide 8: Profit & Loss Development
Profit & Loss Development Material Costs Gross Profit Adjusted Personnel Expenses (in EUR million and % of sales) (in EUR million and % of sales) (in EUR million and % of sales) 46.9% 47.3% 47.5% 55.5% 56.8% 26.0% 24.9% 44.9% 53.4% 53.2% 26.4% 400 50% 50% 600 200 24.1% 400 400 50% 50% 400 200 20% 20
Slide 9: Operational Adjustments Q1-Q3 2022
Operational Adjustments Q1-Q3 2022 in EUR million* Reported Adjustments Adjusted Sales 940.9 940.9 EBITDA 122.9 0 122.9 EBITDA margin 13.1% 13.1% EBITA 84.8 0.8 85.6 (depreciation PPA) EBITA margin 9.0% 9.1% EBIT 63.0 16.7 79.7 (incl. EUR 15.9 million amortization PPA) EBIT margin 6.7% 8.5% Net Prof
Slide 10: EPS Development in Q3 & Q1-Q3 2022
EPS Development in Q3 & Q1-Q3 2022 Strong decrease in adjusted and reported EPS in Q1-Q3 2022 due to difficult environment and ongoing challenges in 2022. Adjusted EPS* Reported EPS* 2,0 -23.1% 2,0 2,0 2,0 -29.4% 1,5 1,5 1,5 1,5 1,0 1.98 1,0 1,0 1,0 1.60 -3.3% -6.9% 1.52 0,5 0,5 0,5 1.13 0,5 0.44 0.
Slide 11: Balance Sheet Development
Balance Sheet Development Net Debt (in EUR million) Equity and Debt Ratios Dec. 31, 2021 Sept. 30, 2022 +24.5% 600 Equity Ratio 44.6% 45.7% 148 (Equity / balance sheet total) 400 186 504 545 Leverage 1.9x 2.5x 200 397 (Net debt / EBITDA) 318 0 Gearing 0.5x 0.5x Debt Cash Net Debt Debt Cash Net Debt
Slide 12: Net Operating Cash Flow Development Q3 & Q1-Q3 2022
Net Operating Cash Flow Development Q3 & Q1-Q3 2022 in EUR million 2019 2020 2021 Q3 2021 Q3 2022 Variance Q1-Q3 2021 Q1-Q3 2022 Variance (2022 to 2021) (2022 to 2021) (Adjusted) EBITDA 187.2 99.3 167.6 36.0 41.8 16.1% 135.5 122.9 -9.3% Δ ± Trade Working capital -9.5 20.2 -20.4 -5.9 -28.2 -378.0% -3
Slide 13: NORMA Value Added (NOVA)
NORMA Value Added (NOVA) in EUR million Q3 2021 Q3 2022 Q1-Q3 2021 Q1-Q3 2022 Adjusted EBIT after taxes 16.4 15.6 70.1 54.0 Capital Cost (WACC x CE per January 1st) -18.4 -19.9 -48.5 -58.7 NOVA -2.0 -4.3 21.6 -4.7 • The NORMA Value Added (NOVA) is NORMA Group‘s long term strategic target • NORMA Gro
Slide 14: Performance Improvement Program
Performance Improvement Program ▪ Stabilization and sustainable improvement of NORMA Group ▪ Program comprising of 3 optimization layers to be implemented in the coming years − Stabilization Measures (short-term) Structural − Efficiency Measures (mid-term) Pricing, Efficiency & Costs, − Structural M
Slide 15: Outlook 2022 – Company Guidance
Outlook 2022 – Company Guidance* Organic Sales Adj. EBIT Margin Growth Medium to high single-digit Around 8% Organic Group Sales Growth Net Operating Cash NOVA Flow Around EUR 60 million Between EUR -20 million and EUR 10 million * According to half-year report of August 10, 2022 15
Slide 16: NORMA Group Full Year 2021 Results
NORMA GROUP FULL YEAR 2021 RESULTS 16
Slide 17: Table of Contents - FY 2021
Table of Contents - FY 2021 01 06 FY 2021 Review Guidance & Outlook Strong H1 2021 with good recovery; Medium to high single-digit Organic Group Sales Growth & But challenging environment in H2 2021 Adjusted EBIT margin of around 11% expected → Go to p. 18 → Go to p. 43 P&L Statement & Segment Repor
Slide 18: Full Year 2021 Review
FULL YEAR 2021 REVIEW 18
Slide 19: Facts & Figures FY 2021 – Key Figures (I/III)
Facts & Figures FY 2021 – Key Figures (I/III) 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
Slide 20: Facts & Figures FY 2021 – Key Figures (II/III)
Facts & Figures FY 2021 – Key Figures (II/III) 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) → Go to → Go to Net → Go to Debt Equity Details Debt Details Rat
Slide 21: Facts & Figures FY 2021 – Business Environment (III/III)
Facts & Figures FY 2021 – Business Environment (III/III) 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 Coro
Slide 22: Segment Reporting & P&L Statement – FY 2021
SEGMENT REPORTING & P&L STATEMENT – FY 2021 22
Slide 23: Top Line Development - FY 2021
Top Line Development - FY 2021 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 202
Slide 24: Segment Reporting – Sales Development - FY 2021 (I/II)
Segment Reporting – Sales Development - FY 2021 (I/II) 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 24
Slide 25: Segment Reporting – Sales Development - FY 2021 (II/II)
Segment Reporting – Sales Development - FY 2021 (II/II) 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
Slide 26: Revenue Track Record
Revenue Track Record 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
Slide 27: Balanced Sales Mix with Focus on Water Management & Industry Applications
Balanced Sales Mix with Focus on Water Management & Industry Applications* - FY 2021 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%
Slide 28: (Adjusted) Profit & Loss Development - FY 2021
(Adjusted) Profit & Loss Development - FY 2021 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
Slide 29: Operational Adjustments FY 2021 and Outlook 2022-2023
Operational Adjustments FY 2021 and Outlook 2022-2023 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.
Slide 30: EPS and Dividend Development - FY 2021
EPS and Dividend Development - FY 2021 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 G
Slide 31: Profit and Loss Statement - FY 2021
Profit and Loss Statement - FY 2021 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% EBI
Slide 32: Balance Sheet & Maturity Profile – FY 2021
BALANCE SHEET & MATURITY PROFILE – FY 2021 32
Slide 33: Working Capital Development
Working Capital Development 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.
Slide 34: Equity Ratio, Net Debt and Debt Ratios – FY 2021
Equity Ratio, Net Debt and Debt Ratios – FY 2021 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, 202
Slide 35: Solid Maturity Profile – FY 2021
Solid Maturity Profile – FY 2021 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 establishe
Slide 36: Balance Sheet - FY 2021
Balance Sheet - FY 2021 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 / Derivat
Slide 37: Cash Flow & NORMA Value Added - FY 2021
CASH FLOW & NORMA VALUE ADDED - FY 2021 37
Slide 38: Strong Cash Flow Development 2011 - 2021
Strong Cash Flow Development 2011 - 2021 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
Slide 39: NORMA Value Added and ROCE - FY 2021
NORMA Value Added and ROCE - FY 2021 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 Va
Slide 40: Status „Get on Track“
STATUS „GET ON TRACK“ 40
Slide 41: "Get on track" (I/II) – Scope
"Get on track" (I/II) – Scope 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
Slide 42: "Get on track" (II/II) – Costs & Savings Timeline
"Get on track" (II/II) – Costs & Savings* Timeline "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 i
Slide 43: Guidance & Outlook for FY 2022
GUIDANCE & OUTLOOK FOR FY 2022 43
Slide 44: Outlook 2022 – Company Guidance
Outlook 2022 – Company Guidance* Mid to high single-digit Organic Group Sales Growth Financial Result Up to EUR – 10 million Organic Sales Growth Tax Rate Above 30% EJT Mid single-digit Organic Sales Growth SJT High single-digit Organic Sales Growth Adjusted Earnings Per Share Significant decrease i
Slide 45: Strategy & Business Model
STRATEGY & BUSINESS MODEL 45
Slide 46: Outlook 2022 – Strategy
Outlook 2022 – Strategy 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 Applicatio
Slide 47: Strategy Update
Strategy Update NORMA Group Strategy including Corporate Responsibility Roadmap Focus on our stakeholders … Strong focus on sustainable economic activities ✓ Exceeding customer expectations … by being market leader in Joining & Fluid-handling technology … Maintain high quality standards … in existin
Slide 48: NORMA Group Strategy – Strategic focus by region
NORMA Group Strategy – 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: ▪ Industry Appli
Slide 49: NORMA Group’s Key Facts
NORMA Group’s Key Facts NORMA serves various markets via its strategic business units Water Management, Industry Applications and Mobility & New Energy One of the global market and Sales of about Delivers to more than Listed on the Frankfurt Stock Headquarters in Maintal technology leaders in EUR 1,
Slide 50: 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 Value creation by NORMA products Water time re
Slide 51: NORMA Group‘s products – selected examples
NORMA Group‘s products – selected examples Water Products Fluid Products Fasten Products Dura Flo HD PS3-Connector Torro Clamp ▪ Dripwater irrigation product ▪ "Push & Seal" plastic quick ▪ Multi-range hose clamp remaining ▪ Saves up to 30% of water connector the benchmark within modern ▪ Ideal for
Slide 52: Good Balance in the Two Distinct Ways to Market
Good Balance in the Two Distinct Ways to Market Standardized Joining Technology (SJT) Engineered Joining Technology (EJT) ca. 43% of 2021 sales ca. 57% of 2021 sales High quality, branded and standardized Innovation and product solution partner joining products provided at competitive for customers,
Slide 53: Selective Competitors per Industry
Selective Competitors per Industry Water Management Industry Applications Mobility & New Energy ▪ Ideal Tridon (US) ▪ Oetiker (CH) ▪ Rain Bird (US) ▪ Oetiker (CH) ▪ Caillau (FRA) ▪ Hunter (US) ▪ Straub Werke (CH) ▪ Kale (TUR) ▪ Toro (US) ▪ Kale (TUR) ▪ Continental (Fluid) (GER) ▪ Netafim (ISR) ▪ Mik
Slide 54: Water Management at NORMA Group
Water Management at NORMA Group Scarce ressource calling for water handling products Acquisition of Australia Acquisition of Guyco and Acquisition of Acquisition of 1992 2012 Chien Jin Plastic, 2013 2014 2018 Davydick&Co, NDS, USA Kimplas, India Malaysia Australia ▪ Product focus: joining ▪ Expandin
Slide 55: NDS Provides Full Breadth of Water Management Solutions
NDS Provides Full Breadth of Water Management Solutions Broad diversification in terms of application areas and products Efficient Landscape Stormwater Irrigation ca. 29% Management ca. 59% Flow Management and Others ca. 12% ▪ Large target markets for all NDS application areas nationwide and interna
Slide 56: NDS has deep and longstanding Customer Relationships
NDS has deep and longstanding Customer Relationships Highly differentiated distribution and service model ▪ More than 3,000 products ▪ Over 12,300 customer locations (retail and wholesale customers) ▪ Two production sites (CA & MX), five warehouses in the US, more than 500 employees ▪ Orders receive
Slide 57: 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 58: NORMA Group’s 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 ✓ Joining ✓ Colling Power Electronics and Motors Cooling ✓ stations and technology systems for HVAC / He
Slide 59: NORMA Group well on track for Mobility & New Energy
NORMA Group well on track for Mobility & New Energy Benefit from hybridization and maintain content in Battery Electric Vehicles (BEV) vs. Internal Combustion Engines (ICE) Higher content per vehicle ICE, Hybrid & EV development* Thermal (in production million and % of each years total volume) vehic
Slide 60: Premium Pricing through Technology and Innovation Leadership
Premium Pricing through Technology and Innovation Leadership in Mission-Critical Components Mission-criticality: Small relative costs – high impact Basis for premium pricing Market leadership Technology Quality Innovation Tailor-made solutions ca. EUR 40 in the exhaust system ca. EUR 95 in other ca.
Slide 61: Enhanced Stability through Broad Diversification
Enhanced Stability through Broad Diversification Across Products, End Markets and Regions Examples of NORMA Group’s key end markets Construction / infrastructure / water Commercial vehicles Engines Passenger vehicles Construction equipment management Wholesalers & technical Agricultural equipment Sh
Slide 62: NORMA Group Provides Mission-Critical Products and Solutions
NORMA Group Provides Mission-Critical Products and Solutions with Clear Added-Value A World without NORMA Group Customer Impact ▪ Reputation loss ▪ Image loss ▪ Warranty costs ▪ Non-compliance with legal requirements/regulations Loss of End Customers 62
Slide 63: History of Acquisitions and Foundations
History of Acquisitions and Foundations Acquisition Acquisition 2018 Kimplas, India Statek, Germany Acquisition Acquisition 2017 Lifial, Portugal Fengfan, China Acquisition 2016 Autoline Business, France Acquisition Foundation Acquisition 2014 National Diversified NORMA China II Five Star, 201 USA S
Slide 64: Acquisitions since IPO representing 46% of Sales in 2011
14 Acquisitions since IPO representing 46% of Sales in 2011 Sales Consolidation Effects Date of Total (in EUR million) Acquisition Sales CONNECTORS Verbindungstechnik AG, Switzerland 04/12 Market entry in connecting technology in Pharma & Biotech 16.6 Nordic Metalblok S.r.l., Italy 07/12 Market cons
Slide 65: NORMA Group Worldwide
NORMA Group Worldwide EMEA Czech Republic (P) France (P, D) Germany (P, D) Italy (D) Poland (P, D) Portugal (P,D) Serbia (P) Spain (D) Sweden (P, D) Switzerland (P, D) Turkey (D) United Kingdom (P, D) Americas Brazil (P, D) Mexico (P, D) USA (P, D) Asia-Pacific Australia (D) China (P, D) India (P, D
Slide 66: NORMA Group – Key Investment Highlights
NORMA Group – Key Investment Highlights Technology & Future Business Units Diversification Markets Active in Water Management, Enhanced stability through Focus on Joining & Fluid- Industry Applications and broad diversification across handling technology with Mobility & New Energy products, end mark
Slide 67: Management Board of NORMA Group SE
Management Board of NORMA Group SE Dr. Michael Schneider Dr. Friedrich Klein Annette Stieve Chairman of the Management Board, Member of the Management Board, Member of the Management Board, CEO of NORMA Group SE COO of NORMA Group SE CFO of NORMA Group SE since November 14, 2019 since October 1, 201
Slide 68: Financial Track Record
FINANCIAL TRACK RECORD 68
Slide 69: Long-term P&L Development (I/II)
Long-term P&L Development (I/II) Sales (in EUR million) (Adjusted) Material Costs (in EUR million and % of sales) 1200 600 60% 45,0% 45,1% 43,6% 45,8% 42,4% 41,7% 40,8% 43,6% 43,4% 43,8% 900 39,4% 41,2% 400 40% 600 1017 1084 1100 952 1092 473 477 500 890 895 419 417 200 363 20% 300 636 695 353 581 6
Slide 70: Long-term P&L Development (II/II)
Long-term P&L Development (II/II) Net Expenses from adj. other oper. Income and Adjusted EBITA (in EUR million and % of sales) Expenses (in EUR million and % of sales) 200 20% 200 25% 14,6% 14,6% 13,7% 13,7% 17,4% 17,7% 17,4% 17,7% 17,5% 17,6% 17,6% 17,2% 20% 150 13,0% 13,3% 12,8% 15% 150 16,0% 11,2
Slide 71: Long-term Margin Development (adjusted and reported)
Long-term Margin Development (adjusted and reported) 20.2% 20.1% 20.0% 20.3% 20.0% 20.0% 19.9% 19.6% 20% 18.6% 17.0% 16.2% 17.1% 16.8% 16.9% 15.3% 16.5% 16.7% 16.6% 16.5% 16.3% 15% 15.2% 13.1% 12.4% 10% 11.5% 10.4% 10.4% 8.5% 5% 4.8% 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Q1-
Slide 72: Long-term Cash, Working Capital and CAPEX Development
Long-term Cash, Working Capital and CAPEX Development Net Operating Cash Flow (in EUR million) Trade Working Capital (in EUR million and % of sales) 200 18,1% 18,3% 18,5% 17,4% 18,1% 17,5% 16,8% 17,4% 400 17,1% 20% 16,1% 15,6% 16,5% 162 150 153 143 162 157 15% 200 123 124 108 70 81 79 90 208 10% 100
Slide 73: Long-term Operational Adjustments on EBITA & EBIT level
Long-term Operational Adjustments on EBITA & EBIT level in EUR million 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Reported EBITA 64.9 84.7 105.2 112.1 113.3 150.5 150.4 166.8 164.8 127.9 51.1 121.0 + Acquisition & Rightsizing Costs* 17.5 16.8 0 0 6.9 3.6 4.8 3.5 4.4 13.4 0 0 + PPA D
Slide 74: Corporate Responsibility
CORPORATE RESPONSIBILITY 74
Slide 75: NORMA Group‘s Corporate Responsibility Committment
NORMA Group‘s Corporate Responsibility Committment NORMA Group is committed to several initiatives, charters … and its CR actions contribute to 6 of the UN Sustainable and guidelines… Development Goals Membership with UN Global Compact ▪ Ten principles in the areas of human rights, labor, the ▪ Key
Slide 76: What is Corporate Responsibility at NORMA Group?
What is Corporate Responsibility at NORMA Group? • Sustainable products • Management systems Find all details in • Climate protection NORMA Group’s • Water CR Policy • Efficient production and Environment waste management → Find out more about NORMA Group‘s environmental performance • Employee satis
Slide 77: NORMA Groups 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 78: EU Taxonomy Reporting – FY 2021
EU Taxonomy Reporting – FY 2021 ▪ 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 onw
Slide 79: Corporate Responsibility Targets for 2022
Corporate Responsibility Targets for 2022 Environment Social Governance Incident rate CO2 emissions Defective parts < 4.5 10,000 tons < 5.5 Indicator: accidents / 1,000 Indicator: Scope 1 and 2, tons Indicator: parts per million employees Water consumption Training hours Customer complaints 1% impro
Slide 80: Ratings confirm NORMA Group’s approach to CR
Ratings confirm NORMA Group’s approach to CR Rating Assessment 2021 Awards − A (on a scale from CCC to AAA) ▪ 2021: “German Award for Sustainability MSCI ESG − Top 45 % within the industrials Projects 2021” for NORMA Clean Water benchmark in the “Equal Opportunities” category − Top 1% of rating univ
Slide 81: Megatrends drive NORMA Group’s business
Megatrends drive NORMA Group’s business Resource Responsible use of resources Scarcity Energy efficiency Climate Change Environmental protection 81
Slide 82: 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 83: NORMA Groups’ Social Commitment
NORMA Groups’ Social Commitment* NORMA Clean Water NORMA Help Day & Sponsoring ▪ Partner: child aid organization Plan International ▪ Help Day ▪ Focus: Projects with focus on water management solutions ▪ Global volunteering day ▪ 2014 – 2018: NORMA Clean Water India ▪ Seven local Help Days despite o
Slide 84: Sustainability in Purchasing
Sustainability in Purchasing Supplier Code of ▪ Basic understanding of sustainability management in purchasing, signature is a Conduct condition to be graded “preferred” supplier ▪ Environmental and health and safety certificates as well as sustainability self- Supplier-Scoring assessment are criter
Slide 85: Share Information & Others
SHARE INFORMATION & OTHERS 85
Slide 86: Current Shareholder Structure
Current Shareholder Structure Free Float as of October 20, 2022 includes** Identified Institutional Shareholders* Impax Asset Management Group Plc, London, United Kingdom 5.03% Allianz Global Investors GmbH, Frankfurt am Main, Germany 4.97% DWS Investment GmbH, Frankfurt am Main, Germany 3,46% 36% 1
Slide 87: Index-based Share Price Performance compared with SDAX, MDAX, DAX and MSCI World Automobiles
Index-based Share Price Performance compared with SDAX, MDAX, DAX and MSCI World Automobiles 170% 150% 130% 110% 90% 70% 50% 30% Jan. 21 Mrz. 21 Mai. 21 Jul. 21 Sep. 21 Nov. 21 Jan. 22 Mrz. 22 Mai. 22 Jul. 22 Sep. 22 NORMA Group SE DAX SDAX MDAX MSCI World Automobiles 87
Slide 88: Contact & Event Calendar
Contact & Event Calendar Event Date Publication Preliminary Results FY 2022 February 14, 2023 Publication FY 2022 Results March 28, 2023 Publication Interim Results Q1 2023 May 9, 2023 Annual General Meeting 2023 May 11, 2023 Publication Interim Results Q2 2023 August 8, 2023 Publication Interim Res
Slide 89: 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 ‘