EU Taxonomy

The EU Taxonomy Regulation is a key element of the European Commission’s action plan to redirect capital flows toward a more sustainable economy. As a classification system for environmentally sustainable economic activities, the EU Taxonomy represents an important step toward achieving carbon neutrality by 2050 in line with the EU’s objectives. Below we report on the following environmental objectives:

Climate-related environmental objectives:

1) Climate change mitigation

2) Climate change adaptation

Non-climate-related environmental objectives:

1) Sustainable use and protection of water and marine resources

2) Transition to a circular economy

3) Pollution prevention and control

4) Protection and restoration of biodiversity and ecosystems

The economic activities of the NORMA Group were to be examined and reported for their taxonomy eligibility and taxonomy alignment in the 2025 reporting year with regard to climate-related and non-climate-related environmental objectives. Taxonomy reporting for the 2025 financial year was carried out in accordance with Delegated Regulations (EU) 2021/2178, (EU) 2021/2139 and (EU) 2023/2486 as amended on 31 December 2025. The application of the Commission Delegated Act of 4 July 2025 ((EU) 2026/73) simplifying the reporting of the EU Taxonomy Regulation was waived.

Taxonomy eligibility is met if a company’s economic activities are described in the Climate Delegated Act or the Environmental Delegated Act. An economic activity is also considered taxonomy-aligned if it makes a substantial contribution to at least one of the climate-related and non-climate-related environmental objectives, complies with minimum safeguards such as human rights, and does not significantly harm the other climate-related and non-climate-related environmental objectives (“do no significant harm”). Economic activities that are not covered by the EU Taxonomy and are therefore not relevant according to the EU Taxonomy are identified in the delegated acts as generally non-taxonomy-eligible.

Based on the procedure established in reporting year 2024 for identifying NORMA Group’s taxonomy-eligible and taxonomy-aligned economic activities, the following economic activities were identified in reporting year 2025, and the financial metrics were calculated in accordance with the requirements of the EU Taxonomy:

Taxonomy-eligible economic activities of NORMA Group

Changes from the previous year

For financial year 2025, only taxonomy-eligible sales from continuing operations are taken into account. The taxonomy-eligible CapEx and OpEx are taken into account unchanged and in full.

The following sections present the identified and taxonomy-eligible economic activities of NORMA Group.

Climate-related environmental objectives:

NORMA Group has identified the following economic activities as defined in Annex 1 of the Delegated Act of the EU Taxonomy (EU 2021/2139) as climate-related environmental objectives. The “Climate change mitigation” objective is relevant for NORMA Group; the requirements of the “Climate change adaptation” objective are not met.

Economic activity 3.18 Manufacture of automotive and mobility components

Economic activity 3.18 refers, among other things, to the “Manufacture of automotive and mobility components.” NORMA Group’s activities in the manufacture of electromobility products (connectors, dry brake valves, and flex systems) meet this activity description. Certain products can only be installed and used in electric vehicles. NORMA Group’s products aim to mitigate climate change through their use in electric vehicles and the associated CO₂-emission-free automotive and mobility systems and components. Overall, the manufacturing processes therefore correspond to economic activity 3.18 described in Annex 1 of the Delegated Act (EU) 2021/2139 in the version dated November 21, 2023. This activity forms part of NORMA Group’s own operations. Taxonomy-eligible sales; CapEx and OpEx are reported in this regard.

Taxonomy-aligned economic activities of NORMA Group

The requirements of an alignment, such as the fulfillment of the technical assessment criteria (substantial contribution and “do no significant harm” criteria) and the minimum safeguards, are still not fully met.

Performance indicators according to EU Taxonomy

The following section presents Group sales, capital expenditures (CapEx), and operating expenses (OpEx) for reporting period 2025, broken down into taxonomy-aligned, taxonomy-eligible as well as non-taxonomy-aligned and non-taxonomy-eligible components.

Sales KPI (Key Performance Indicator) definition

In accordance with the FAQs (Commission Notice C/2023/305) published in the Official Journal of the European Union on October 20, 2023, revenue from the Water Management division’s business activities that have been or are to be divested is not included in the revenue metrics, as sales revenue from discontinued operations must be presented separately from continuing operations.

The taxonomy-aligned share of Group sales is defined as the portion of net sales in reporting year 2025 derived from products and services associated with taxonomy-aligned economic activities (numerator) divided by total net sales for 2025, whereby total Group sales correspond to the sales revenue reported in the CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (denominator). The taxonomy-eligible share of Group sales is defined as the portion of net sales in reporting year 2025 derived from products and services associated with taxonomy-eligible economic activities (numerator) divided by total net sales for 2025 (denominator).

For NORMA Group, this numerator results from sales of certain products of the strategic business unit Mobility & New Energy, which can only be installed in electric vehicles (economic activity CCM 3.18). In order to further improve data collection, a further method was established in financial year 2024 to allocate sales to appropriate economic activities. Sales were filtered according to customer market segments and additional sectors in the New Energy and Aviation sectors were allocated. They were not reported in reporting year 2025 owing to the materiality threshold applied.

The denominator corresponds to NORMA Group’s net sales in reporting year 2025 from the income statement. When calculating sales, products were clearly allocated to the relevant activity to ensure that no sales were recorded twice.

Information on the following tables in relation to sales, CapEx, and OpEx

(a) The code consists of the abbreviation of the relevant objective to which the economic activity can make a significant contribution and the number of the section of the activity in the relevant Annex that covers the objective; for example, the activity “Reforestation” would have the following code: CCM 1.1. If activities can make a significant contribution to more than one objective, the codes for all objectives should be indicated. For example, if the Company reports that the activity “Construction of new buildings” makes a significant contribution to climate protection and the circular economy, the code would read as follows: CCM 7.1./CE 3.1.

(b) The abbreviations in the tables have the following meanings:

•Y – Yes, taxonomy-eligible activity that is taxonomy-aligned with respect to the relevant environmental objective

•N – No, taxonomy-eligible activity that is not taxonomy-aligned with respect to the relevant environmental objective

•N/EL – Not eligible, i.e., activity that is not taxonomy-eligible and is not taxonomy-aligned with respect to the relevant environmental objective

CapEx KPI definition

The CapEx KPI is defined as the share of taxonomy-aligned capital expenditure (CapEx) in the numerator, which is broken down into three categories (a-c) as defined by the EU, divided by total Group CapEx (see the corresponding additions to property, plant, and equipment and intangible assets before depreciation, amortization, and impairment losses and remeasurements excluding goodwill) in GOODWILL AND OTHER INTANGIBLE ASSETS and (DEVELOPMENT OF PROPERTY, PLANT AND EQUIPMENT) for reporting year 2025 as a denominator and also includes the investment expenditures determined as part of the Water Management division.

The total CapEx of category (c) was calculated on the basis of the CapEx requests approved for the reporting year by allocating the CapEx requests to an economic activity. These are the activities CCM 3.18 and CCM 6.5.

In addition to the direct allocation of capitalized costs, the imputed sales-based allocation key “Technical machine equipment” was used to determine CapEx in relation to activity CCM 3.18 on a pro rata basis.

To calculate CapEx in relation to the taxonomy-eligible Water Management products, an imputed sales-based allocation key was applied to the capitalized costs of the Water Management sites and allocated to CCM 5.1, CCM 6.13, and WTR 2.3. A report was created in the accounting system and corresponding formulas were stored to avoid accounting for investments twice.

CapEx category a)

CapEx category a) is defined according to the EU as capital expenditures “related to assets or processes that are associated with taxonomy-aligned economic activities.” As NORMA Group cannot report taxonomy-aligned activities in reporting year 2025, no taxonomy-aligned CapEx is reported. However, we have reported on our taxonomy-eligible activities CCM 3.18, CCM 5.1, CCM 6.13, and WTR 2.3.

CapEx category b)

CapEx category b) is defined by the EU as capital expenditures as “part of a plan to expand taxonomy-aligned economic activities or to allow taxonomy-eligible economic activities to become taxonomy-aligned.” No such investments were incurred in reporting year 2025.

CapEx category c)

CapEx category c) is defined according to the EU as capital expenditures related to the purchase of products and services from taxonomy-aligned economic activities and individual actions that enable the goal activities to become low-carbon or lead to greenhouse gas reductions. As NORMA Group has not yet been able to identify any taxonomy-aligned activities among third parties in this reporting year, taxonomy-aligned CapEx cannot be reported. However, we have reported on our taxonomy-eligible activities CCM 6.5.

OpEx KPI definition

The OpEx KPI is defined as the share of taxonomy-aligned operating expenses (OpEx), which is broken down into three categories (a-c) in accordance with the EU definition (see more detailed explanation in the following sections). Direct, non-capitalized expenses, in particular for research and development, building renovation actions, short-term leasing, and maintenance and repair, are to be included in the denominator and proportionately in thenumerator. Based on the relevance analysis, account mapping was carried out and the OpEx for category (c) comprising was verified by manual queries. This concerns the activity CCM 6.5.

In order to determine the OpEx in relation to the activity CCM 3.18, the operating expenses for the maintenance of production equipment were also taken into account on a pro rata basis using the imputed sales-based allocation key in addition to the allocation of the calculated average R&D costs.

To calculate the OpEx in relation to the taxonomy-eligible Water Management products, an imputed sales-based allocation key was applied to all OpEx-relevant operating expenses at the Water Management sites and allocated to CCM 5.1, CCM 6.13, and WTR 2.3. A report was created in the accounting system and corresponding formulas were stored to avoid accounting for investments twice.

OpEx category a)

OpEx category a) is defined by the EU as “operational expenditures related to assets or processes associated with taxonomy-aligned economic activities, including training and other human resource adaptation requirements and direct non-capitalized costs that represent research and development.” As NORMA Group cannot report taxonomy-aligned activities in financial year 2025, no taxonomy-aligned OpEx is reported. However, we have reported on our taxonomy-eligible activities CCM 3.18, CCM 5.1, CCM 6.13, and WTR 2.3.

OpEx category b)

OpEx category b) is defined by the EU as operational expenditures that are part of a OpEx plan to expand taxonomy-aligned economic activities or enable taxonomy-eligible economic activities to become taxonomy-aligned. No such operating expenses were incurred in reporting year 2025.

OpEx category c)

CapEx category c) is defined according to the EU as “operational expenditures related to the purchase of products and services from taxonomy-eligible or -aligned economic activities and individual actions that enable the goal activities to become low-carbon or lead to greenhouse gas reductions.” As NORMA Group has not yet been able to identify any taxonomy-aligned activities among third parties in this reporting year, taxonomy-aligned OpEx cannot be reported. However, we have reported on our taxonomy-eligible activity CCM 6.5.