Control system and performance indicators

The consistent focus on the aforementioned corporate objectives is reflected in NORMA Group's internal control system, which relies on financial key performance indicators (KPIs). These KPIs are planned and continuously monitored at the corporate level, as well as largely at the segment level and within the Group companies. Deviations between planned and actual results are tracked at the local level and aggregated in the monthly analysis at the regional segment level. Business performance is regularly forecasted based on available monthly and quarterly results and taking various scenarios into account.

Most important financial performance indicators

NORMA Group’s most important financial performance indicators include the following value- and growth-oriented key figures, which have a direct impact on NORMA Group’s value creation: Group sales, adjusted EBIT margin, and net operating cash flow. NORMA Group uses these figures to continuously monitor its success in terms of growth, profitability, liquidity and capital efficiency.

Group sales

¹ The NORMA Value Added (NOVA) no longer represents a key performance indicator.

As a growth-oriented company, NORMA Group attaches particular importance to profitable sales growth.The Group aims for short- and medium-term growth above the market average. FUTURE DEVELOPMENT OF NORMA GROUP

Due to the broad market structure in the field of joining technology, the Management Board bases its forecast of expected sales development on internal analyses as well as on studies by relevant economic research institutes regarding the development of the gross domestic product in the respective regions and on production and sales figures of the relevant customer industries. Furthermore, Management incorporates selected leading indicators into its forecast, such as customer ordering behavior in the trading business of the strategic business unit Industry Applications and the order backlog of the Mobility & New Energy.

Adjusted EBIT margin

The adjusted EBIT margin, which shows the adjusted EBIT (earnings before interest and taxes) in relation to sales, provides information on the profitability of business activities and represents a key internal management and evaluation indicator of the Group’s ongoing operating activities. Furthermore, adjusted EBIT forms the basis for the compensation of the Management Board and the incentive structure for employees not covered by collective bargaining agreements. To maintain the Group's profitability at a high level, NORMA Group continuously works to optimize its business processes and structures. The focus here is particularly on the sustainable reduction of key cost factors.

For long-term comparison and a better understanding of business performance, NORMA Group adjusts its operating profit for certain expenses and income related to completed M&A transactions. Furthermore, since 2025, adjustments have been made for costs associated with the global transformation initiated in fiscal year 2025. This transformation program primarily resulted in expenses for severance payments related to restructuring measures, associated consulting fees, and expenses related to production relocations. These adjustments are made according to the management approach used in segment reporting. Further information can be found in the section ADJUSTMENTS.

Net operating cash flow

In order to maintain the Group’s financial independence and solvency at all times, NORMA Group is also guided by net operating cash flow in managing the Group. This comprises the most important cash-effective items that can be influenced by the individual business units and provides information on whether NORMA Group can finance its operating business out of its cash flow. The calculation is based on adjusted EBITDA, plus changes in working capital and minus investments from operating activities. Key opportunities for improving operating net cash flow lie in increasing sales, improving adjusted operating profit (EBITDA), and in sustainable, value-enhancing investment activities. Consistent working capital management with a focus on continuous optimization has a positive impact on operating net cash flow.

The forecast for the year 2026 and the underlying assumptions are presented in the FORECAST REPORT.

Non-financial indicators

Compliance with applicable environmental protection regulations, the avoidance of environmental risks, and occupational safety are high priorities for NORMA Group. The company adheres to international standards and guidelines in this regard. CO₂ emissions and the accident rate are non-financial key performance indicators (KPIs) that NORMA Group monitors, but not with the same level of detail as financial KPIs, as they are not relevant to understanding the company's performance or financial position. Therefore, CO₂ emissions and the accident rate are therefore not key performance indicators relevant for NORMA Group's management.