Future development of NORMA Group

NORMA Group places a strategic focus on sustainable value creation. Key objectives are continuous sales growth, profitability above the industry average and the most efficient use of capital possible. In addition, NORMA Group orients itself towards sustainability targets in order to live up to its own claim of a responsible approach to people and the environment. STRATEGY AND GOALS

General statement by the Management Board on probable development

To reduce complexity, NORMA Group has optimized its forecast with regard to the components. From now on, only the financial and non-financial key figures relevant to management will be used and presented in this context for the respective financial year.

NORMA Group's important financial management indicators include Group sales, adjusted EBIT or adjusted EBIT margin, and net operating cash flow. These key figures also lead to the so-called NORMA Value Added (NOVA) as a central strategic target. Since the 2023 financial year, the key non-financial control indicator has been CO2 emissions, which since 2020 have also represented a target figure for determining part of the long-term Executive Board remuneration (ESG-LTI). CONTROL SYSTEM AND KEY PERFORMANCE INDICATORS

The development of the key financial management indicators and CO2 emissions in the 2024 financial year is presented below.

Development of Group sales in 2024

Based on current assessments from relevant economic research institutes and industry associations, the Management Board assumes that overall economic development in the 2024 financial year will remain challenging due to the numerous ongoing geopolitical tensions. Above all, the further development of the military conflicts in Ukraine and the Middle East and the associated effects on the global value creation and transport chains represent key influencing factors. In addition, there are uncertainties in connection with the future direction of interest rate policy on the part of the central banks or natural delays regarding the mechanism of action of potential interest rate cuts. The Executive Board of NORMA Group SE is therefore looking ahead to the 2024 financial year with due caution.

Supported by the forecast impulses in the customer industries that are important to NORMA Group, the Management Board of NORMA Group SE expects overall Group sales in the range of around EUR 1.2 billion to around EUR 1.3 billion for the 2024 financial year. However, the present forecast is made under the assumption that no further negative factors will occur worldwide in the course of 2024 that could lead to significant pressure on the business development of NORMA Group.

With regard to the regional segments, the Management Board expects the following development in the 2024 financial year:

For the EMEA region, the Management Board forecasts sales in the range of around EUR 500 million to around EUR 550 million. The forecast is based on the expectation that the good development in demand from the European automotive industry in the Mobility & New Energy sector will also continue will continue in the 2024 financial year, albeit in a somewhat weaker form. Significant growth is also expected to come from the Industry Applications area in 2024.

With a view to the America region, the Executive Board of NORMA Group SE anticipates sales in the range of around EUR 530 million to around EUR 550 million. The forecast is based on the assumption that development in the Water Management business will be stable compared to the previous year. On the other hand, weaker development is expected for the Mobility & New Energy sector compared to the previous year.

For the Asia-Pacific region, the Executive Board is anticipating overall sales in the range of around EUR 170 million to around EUR 200 million in the fiscal year 2024, based on the trend forecasts presented. A good development in demand should be visible both in Mobility & New Energy and in the areas of Water Management and Industry Applications.

Adjusted EBIT margin

An important focus of NORMA Group is on maintaining profitability. Accordingly, all business activities are strategically aligned with this in mind. The Group's profitability is to be sustainably increased, among other things, through suitable operational efficiency measures as part of the GROWTH AND EFFICIENCY PROGRAM “STEP UP": The focus here is, among other things, on optimizing internal and external business processes, which aims to ensure that the company is sustainable towards profitable growth. The measures implemented are intended to help further improve the competitiveness of NORMA Group and maintain it in the long term.

Assuming that there are no market disruptions that could lead to significant additional costs or restrictions in the implementation of operational efficiency measures, the Executive Board of NORMA Group SE expects an adjusted EBIT margin of around 8% to 8.5% for the 2024 financial year.

With regard to the adjustment of the result, the Executive Board of NORMA Group SE expects, as in previous years, adjustments from the allocation of the purchase prices to depreciable tangible and intangible assets that are related to expenses and income in connection with realized M&A transactions. In total, depending on exchange rate developments, these will amount to around EUR 22 million. The Executive Board of NORMA Group SE reserves the right to make further adjustments for the 2024 financial year.

Net operating cash flow

Assuming continued good sales development with constant optimization measures in the area of working capital management, the Executive Board of NORMA Group SE expects an net operating cash flow in the range of around EUR 80 million to around EUR 110 million in the 2024 financial year.

NORMA Value Added (NOVA)

For the 2024 financial year, the Management Board expects a NOVA in the range of around EUR -40 million to around EUR -20 million.

Carbon dioxide emissions

A core area of NORMA Group's environmental strategy aims to sustainably reduce greenhouse gas emissions at production sites worldwide. Taking into account the constant implementation of further CO2 reduction measures, the Management Board assumes that CO₂ emissions will reach a value of less than 9,600 tonnes of CO₂ equivalents in the 2024 financial year (market-based, Scope 1 and Scope 2 and only based on production sites).