Strategy and goals

 

Vision and Mission

In the 2024 fiscal year, NORMA Group reformulated its vision and mission statement and further differentiated it in 2025 related to the sale of the Water Management business unit.

"We join forces to provide superior solutions for a sustainable future." This vision underscores the Group's commitment to working together on innovative solutions for a sustainable future. The ability to adapt quickly and flexibly to changing customer requirements as well as economic and social conditions is a key success factor in this endeavor.

Accordingly, the mission was also reduced to not include Water Management: “Driven by passionate collaboration and global excellence, we add value as the reliable partner for mission-critical solutions in Industry Applications and Mobility & New Energy.”

As part of its vision and mission, NORMA Group focuses on transforming itself into an "Industrial Powerhouse".

The target picture for the global transformation, which started in 2025, is: NORMA Group positions itself as an "Industrial Powerhouse," meaning a focused supplier of joining technology with target customers in the areas of Industry Applications and Mobility & New Energy. It differentiates itself from its competitors as a provider of innovative, engineered solutions. This includes, on the one hand, the consistent expansion of the Industry Applications business – both organically and through acquisitions. To this end, NORMA Group is investing in innovation and seizing market opportunities. On the other hand, existing strengths in the Mobility & New Energy sector will be leveraged to achieve profitable margins. Significant synergies exist between the two business units, Industry Applications and Mobility & New Energy, which can be utilized even more effectively in the new structure. The “Industrial Powerhouse” approach is intended to underscore the focus on becoming a solutions provider that, in addition to distribution, also primarily supplies original equipment manufacturers (OEMs) directly with customized products. This could include, for example, solutions for stationary battery storage, data centers, heat pumps or white goods.

The mission of NORMA Group aims to build trusting relationships with stakeholders as a reliable partner, to promote sustainability and resource efficiency with relevant, mission-critical products and solutions, and to address current global megatrends.

The vision, mission and thus also the focus on the “Industrial Powerhouse” are in line with the central objective of the Group: increasing value.

 

Increase in value

The central strategic objective of NORMA Group is sustainable, profitable growth for the Company. The Group aims for profitability above the industry average and the efficient use of its capital. NORMA Group pursues a stakeholder-oriented approach, taking into account customer expectations for innovative, reliable, and value-creating solutions, the financial interests of shareholders, the needs of its employees, and the concerns of its suppliers. A motivated and competent workforce is a fundamental prerequisite for meeting the diverse requirements of external stakeholders. NORMA Group aims to position itself as an attractive employer. At the same time, the company considers it an essential aspect of its corporate responsibility to align the impact of its business activities with the expectations and needs of society. Therefore, the principles of responsible corporate governance and sustainable practices apply to all business decisions. Corporate Responsibility (CR) – NORMA Group's responsibility towards people and the environment – is therefore an integral part of the company's strategy for the Management Board. Further information on this can be found in the NON-FINANCIAL GROUP STATEMENT, section SBM-1 – STRATEGY, BUSINESS MODEL AND VALUE CHAIN.

NORMA Group’s strategy for long-term value enhancement is based on the following key objectives and strategic measures:

 

Profitable growth

NORMA Group's primary goal is the sustainable growth of its corporate value. Therefore, the continuous profitable expansion of its business activities is paramount. Business activities are expanded and international presence is increasingly strengthened through the ongoing development of application solutions for existing customers and the identification and acquisition of new customers. The core of NORMA Group's growth strategy lies in the selective expansion of its product portfolio, the extension of its regional presence, and the strengthening of its market position in the end markets of Industry Applications and Mobility & New Energy. In identifying its business areas, NORMA Group focuses on markets with attractive margins, sophisticated products, strong sales growth potential, and a fragmented competitive landscape. Global megatrends such as climate change are increasing the demand for low-emission technologies. In particular, the focus on the Industrial Powerhouse is intended to enable NewNORMA to further accelerate its profitable growth.

 

Selective product portfolio

The technological requirements for NORMA Group's end products are constantly evolving. In virtually every industry, increasing environmental awareness, resource scarcity, and growing cost pressures – further intensified by overall rise in energy costs – play a major role. Added to this are binding legal requirements, which are becoming increasingly stringent, particularly in the automotive and commercial vehicle industries, due to stricter emissions regulations and specific requirements for the materials used. This is accompanied by the increasing technological shift away from the conventional combustion engine towards alternative drive technologies. Furthermore, NORMA Group's product strategy is also influenced by climate change and the growing density of environmental regulations in key industries. NORMA Group sees numerous opportunities in this, enabling the Company to benefit from both current global megatrends and regulatory developments. These include, among other things, the area of decarbonization. Related to this are developments in the energy transition and the

application of alternative energy generation and storage. LEGAL AND REGULATORY INFLUENCING FACTORS These framework conditions form the starting point for the development of new products. NORMA Group focuses on value-enhancing solutions that support its customers in reducing emissions, leakage, weight, space, and assembly time. A key focus is also on the thermal management of vehicles. To meet the increasing customer demands with each new production cycle, innovation plays a crucial role. Therefore, NORMA Group invests intensively and continuously in the development of new products as well as the optimization of existing processes and systems. RESEARCH AND DEVELOPMENT

 

Supplementing organic growth with value-enhancing acquisitions

Through targeted acquisitions, NORMA Group contributes to strengthening its growth and expanding its business. Acquisitions are therefore an important component of its long-term growth strategy. This applies particularly to the strategic business unit Industry Applications. The focus of M&A activities is on companies that contribute to achieving NORMA Group's strategic goals, strengthening its competitive position, and/or generating synergies. Maintaining growth and high profitability also plays a central role.

 

Strategic growth initiatives

With the signing of the contract for the sale of its Water Management business unit on September 23, 2025, NORMA Group is refocusing its business activities on its traditional core business of joining products. The financial resources freed up by the sale will be used to expand its market position in the strategic business unit Industry Applications and to strengthen its position at Mobility & New Energy.

The specific growth initiatives of the strategic business units are structured as follows:

Industry Applications focuses on maximizing market opportunities and profitability by refining its offerings. In particular, the company is aiming to transform from a product supplier to a solutions provider – in both existing and new markets. Direct sales to original equipment manufacturers (OEMs) and their specific needs for engineered products and solutions will be increasingly emphasized. Further steps in this direction were successfully implemented in fiscal year 2025. The traditional retail segment, meaning sales through sales representatives and wholesalers, remains a key pillar during this transformation. This requires continued active portfolio management and a strategically aligned brand strategy. E-commerce initiatives will also be strengthened to consolidate the retail business. The targeted deployment of resources and capacities, along with flexible production facilities, is crucial to effectively address the individual needs of the diverse customers within the Industry Applications strategic business unit and to gradually expand this area.

The activities of the Mobility & New Energy business unit are to be strengthened globally. At the same time, NORMA Group aims to achieve and defend a leading market position in all regions through continuous improvement of cost structures. This will enable optimized positioning of existing products in the market. Furthermore, NORMA Group is positioning itself to respond flexibly to current market uncertainties and emerging trends with appropriate measures. This requires a comprehensive understanding of constantly changing market demands, but especially agility and flexibility to effectively meet customer needs and expectations. To this end, processes and procedures are being continuously standardized and automated, and innovation is being driven forward in line with customer expectations. The Group is focusing on selected, high-margin businesses that meet the current and future needs of its customers. Electromobility remains a key future market for NORMA Group, which the Company has been addressing for more than a decade. NORMA Group is therefore well-positioned to benefit from future developments.

The achievement of the growth initiatives outlined here is actively supported by the “Step Up” program implemented in mid-2023.

 

Global transformation to a focused “Industrial Powerhouse” has begun

The target of the global transformation initiated in 2025, is to position NORMA Group as an "Industrial Powerhouse," meaning a focused supplier of joining technology with target customers in the areas of Industry Applications and Mobility & New Energy. The Company differentiates itself from its competitors as a provider of innovative, engineered solutions. This includes, on the one hand, the consistent expansion of the Industry Applications business – both organically and through acquisitions. To this end, NORMA Group is investing in innovation and seizing market opportunities. On the other hand, existing strengths in the Mobility & New Energy sector will be leveraged to achieve profitable margins. Significant synergies exist between the two business units, Industry Applications and Mobility & New Energy, which can be utilized even more effectively in the new structure. As a result, NORMA Group aims to achieve a double-digit adjusted EBIT margin in the medium term.

With its transformation into an Industrial Powerhouse, NORMA Group aims to secure its competitiveness in the future and thus enable a return to a long-term successful growth path.

The measures intended for this purpose can essentially be divided into three blocks:

•More efficient organization

•Operational cost savings

•Optimization of global location landscape

 

The implementation and execution of the planned measures from the transformation plan is expected to result in cumulative total costs in the range from around EUR 54 million to around EUR 61 million by 2028.

In contrast, the measures from 2025 onwards will lead to cost savings that will reach a global range of around EUR 82.5 million to around EUR 91.5 million over the subsequent years up to 2028.

The transformation plan therefore includes measures that go beyond the "Step Up" program introduced in summer 2023. As part of the global transformation, "Step Up" will therefore be continued as a continuous improvement program.

 

Growth and efficiency program “Step Up”

NORMA Group has launched the "Step Up" growth and efficiency program to improve its operations in terms of efficiency, productivity, and profitable growth. The program includes measures to implement growth plans in the strategic areas of Industry Applications and Mobility & New Energy, as well as to enhance operational performance. Resources, such as those in research and development, will be strategically deployed to maximize economic impact. The implementation of these measures will be continuously monitored, always with a clear focus on customer needs.

The measures in the area of Operational Efficiency aim to improve internal and external processes and align them for sustainable, profitable growth. The focus is on optimized and globally standardized IT systems, reduced complexity, and increased delivery capacity while simultaneously maintaining lower inventory levels and shorter response times. To achieve this across all areas of supply chain management, NORMA Group has launched an SCM transformation. This includes improvements in delivery service, lower logistics costs – especially for freight – and optimized inventory levels. To this end, the SCM organization is being further developed, employees are being trained, and material and information flows within the supply chain are being improved.

The Growth area consolidates the growth plans of the strategic business units. The alignment with these business units is to be more firmly embedded in the organization, and they are to be given greater autonomy – for example, through closer customer relationships and the transfer of growth and investment decisions to the units themselves. This will allow opportunities to be seized more quickly and customer requirements to be addressed more effectively. In Industry Applications, growth is to be achieved primarily through the expansion of stable business areas. In Mobility & New Energy, NORMA Group is focusing on revenue potential in the field of alternative drive systems – such as battery-electric and hydrogen-based vehicles – as well as on innovative solutions for meeting stricter emissions regulations.