Changes in the Management Board of NORMA Group SE

Effective May 1, 2023, Dr. Daniel Heymann joined the Management Board of NORMA Group as COO. Guido Grandi has also been the Company's new CEO since June 1, 2023. Together with Annette Stieve, who has been CFO of NORMA Group since October 2020, the newly composed Management Board team started in fiscal year 2023 to further develop NORMA Group strategically and operationally and to position it for the future. This also includes the management and implementation of the “Step Up” growth and efficiency program.

“Step Up” growth and efficiency program launched

In mid-2023, NORMA Group introduced a continuous improvement program to make its operating business even more efficient and productive and so achieve further profitable growth in the three strategic business units Water Management, Industry Applications and Mobility & New Energy. The approach was developed in spring 2023 together with NORMA Group’s management team. The program, which is divided into the two core elements of growth and operational efficiency, consists of clearly defined individual measures that are continuously tracked. The needs of customers will be placed even more strongly at the center of attention. 4 STRATEGY AND GOALS

Production capacities for water management solutions expanded

The US subsidiary NDS opened a new plant on May 4, 2023. The site is located in Lithia Springs, Georgia, near Atlanta. Valve boxes for irrigation systems and products for draining storm water are manufactured on a production area of 10,900 square meters. Over the next three years, the workforce is set to increase from an initial 40 employees to 120. The products manufactured at the Lithia Springs plant are sold to wholesalers and retailers in the USA. The new site represents another milestone in the strategic expansion of NORMA Group's water management business.

Production expansion in China celebrated

The grand opening of the expansion of the NORMA Group site in Changzhou, China, took place at the end of June 2023. With 9,900 square meters of additional space for production, warehouse and offices, the site is now positioned to meet the growing demand for high-quality metal fastening products in China. In this context, the second production site in Changzhou was closed in November 2023 following the relocation of production.

NORMA Group financing concluded with sustainable component

In the third quarter of 2023, NORMA Group SE completed its financing with a platform-based promissory bill in the amount of EUR 120 million, which features a sustainability component. NORMA Group used the funds raised to repay existing financial liabilities and for general corporate financing. The promissory note was issued in tranches with maturities of three, five and seven years and fixed and variable interest components. The interest margin is

increased or decreased by 2.5 or 5 basis points depending on NORMA Group’s respective sustainability rating. A consistent improvement in the various sustainability criteria also leads to savings in the financing costs of the new promissory note. As with previous transactions, the Company is consistently implementing its sustainability strategy.

Adjustment of the sales forecast in fiscal year 2023 and specification of further forecast components

On November 2, 2023, the Management Board of NORMA Group SE announced an adjustment to the sales forecast for fiscal year 2023 in an ad hoc announcement. Based on the then current, preliminary sales figures for October, reduced call-offs from automotive and supplier customers and expectations for the remainder of fiscal year 2023, management since forecast organic Group sales growth in the range of around 0% to 1% compared to the previous year (previously: “mid-single-digit organic Group sales growth”). Among other things, this was due to the consequences of strikes at US vehicle manufacturers, which were no longer expected to lead to any catch-up effects in the remainder of the fiscal year. In the EMEA and Asia-Pacific regions, management was also no longer expecting any compensation due to the general market weakness. Further forecast components were also specified in the ad hoc announcement. The existing forecasts for the adjusted EBIT margin of around 8% and the net operating cash flow of around EUR 70 million were confirmed by the Management Board. COMPARISON OF TARGET AND ACTUAL VALUES

Expansion of the water business in Europe

On December 21, 2023, NORMA Group signed an agreement to acquire Teco Srl, an Italian supplier of irrigation products for the gardening, landscaping and agricultural sectors. The Company offers around 800 products, including drippers, sprayers, valves and connecting elements. Teco’s customers are wholesalers and manufacturers of water management systems. In fiscal year 2022, sales of the company, which had been founded in 2004, amounted to around 4.7 million euros. The acquisition serves the gradual expansion of the business in the strategic area of water management in Europe. The acquisition was completed on February 29, 2024.

NORMA Group’s Annual Report and Investor Relations Department honored once again

NORMA Group received the “FOX FINANCE Award in SILVER” for its Annual Report 2022. In addition, NORMA Group was ranked 7th out of 70 SDAX companies in the “Investors’ Darling” capital market competition, in which the capital market communication of Prime Standard companies is assessed according to numerous criteria. IR-WORK

Good marks in ESG ratings

In the ESG (Environmental, Social, Governance) category, the Group was rated "ESG Industry Top Rated" by the sustainability rating agency Sustainalytics. NORMA Group was certified as having above-average sustainability risk management and thus a low probability that a lack of corporate responsibility could have a negative impact on the Company’s value. SUSTAINABILITY RATINGS


These contents are part of the Non-financial Group Report and were subject to a separate limited assurance examination.