Assessment of the overall profile of risks and opportunities by the Management Board

The overall situation of the Group results from the aggregation of the opportunities and risks of all categories of business units and functions. After assessing the likelihood of risks occurring and their potential financial impact, as well as in light of the current business outlook, NORMA Group’s Management Board does not believe that there is any individual risk or group of risks with the potential to jeopardize the continued existence of the Group or individual Group companies as a going concern. Taking the aggregated opportunities into account, NORMA Group is, in the opinion of the Management Board, in a very good position with respect to both the medium and long terms to further expand its market position and grow globally. This assessment is supported by the planned significant reduction in debt and the generally good opportunities to cover potential financing requirements. Therefore, NORMA Group has not made any effort to obtain an official rating from a leading rating agency.

General economic risks remain for NORMA Group in all areas, which is why setbacks on the way to long-term achievement of the growth and profitability targets cannot be ruled out. In contrast, there are clear opportunities that NORMA Group is taking advantage of through its strategy and consistent opportunity management, so that it is possible that the Company could even exceed its profitability targets.

In summary, the changes in the individual opportunities and risks shown in the overview have no significant impact on NORMA Group’s overall risk profile. The Group has therefore concluded that its overall profile has not changed significantly compared to the previous year.