Glossary

5S Methodology

5S is a method for organizing a work space for efficiency and effectiveness in order to reduce industrial accidents.

Aftermarket segment

The market for maintaining or repairing long‑life goods and for selling replacement or complementary parts linked to the original sale.

Asset-backed securities (ABS) program

A specific way of converting payment claims into negotiable securities with a financing company.

Best-landed cost approach

Assessment of the total costs of a product including the price of the product as well as the charges for shipping, taxes and/or duties.

BEV

BEV is the abbreviation for "Battery Electric Vehicle". This refers to an automobile that uses at least one electric motor for propulsion.

Circular economy

The circular economy corresponds to a regenerative economic system in which the use of resources, waste production, emissions as well as energy consumption are minimized. The basis for this is formed by long-lasting and closed material and energy cycles.

CO₂ equivalents

CO₂ equivalents illustrate the global warming potential of various gases that are harmful to the climate and show how much a specific quantity of a greenhouse gas contributes to the greenhouse effect. The comparative value used here is carbon dioxide (CO₂). The index thus expresses the warming effect of a greenhouse gas over a clearly defined period of time compared to that of CO₂.

Code of Conduct

A set of policies that can and should be applied in a wide range of contexts and environments depending on the situation. In contrast to a rule, the target audience is not obliged to always comply with the Code of Conduct. A Code of Conduct is more of a personal commitment to follow or abstain from certain patterns of behavior, ensuring that nobody gains an unfair advantage by circumventing these patterns.

Commercial Paper

A Commercial Paper (CP) is a short-term bond issue with a money market character.

Compliance

Conforming to rules: a company and its employees adhering to Codes of Conduct, laws and guidelines.

Conflict minerals

Natural resources whose deposits are largely located in conflict regions (especially the Democratic Republic of Congo), where they are mined and traded in some cases in serious violation of international law; especially tin, tantalum, tungsten and gold.

Corporate governance

A set of all international and national rules, regulations, values and principles that apply to companies and determine how these companies are to be managed and monitored.

Corporate responsibility

A form of corporate self-regulation integrated into a business model by taking societal and environmental aspects into account.

Covenants

Covenants is a collective term for additional contractual clauses or ancillary agreements in loan agreements or bond conditions. They contain future obligations on the part of the borrower or bond debtor to perform or refrain from performing a certain act.

Coverage

The regular assessment of the economic and financial situation of a listed company by banks or financial research institutions.

Cross-selling effects

The action or practice of selling an additional product or service to an existing customer.

CSRD

The Corporate Sustainability Reporting Directive (CSRD) is a further development of the previously applicable Non-Financial Reporting Directive (NFRD). The CSRD stipulates that the EU-member states must transpose the requirements into national law. However, as the necessary implementing legislation has not yet been passed in Germany, the CSRD does not yet apply in Germany for the 2024 fiscal year. However, the new directive will significantly extend the reporting obligation.

CSR-RUG

German CSR Directive Implementation Law.

Diversity & Inclusion

This policy underscores the conviction that diverse teams bring different perspectives and ideas, thereby fostering creativity and innovation. NORMA Group strives for actively inclusive environments to promote diverse viewpoints and enable effective decision-making.

Earnings before interest and taxes (EBIT)

EBIT describes earnings before interest and taxes. For long-term comparison and a better understanding of business development, NORMA Group adjusts the EBIT for certain one-time expenses. NOTES

Earnings before interest, taxes and amortization (EBITA)

EBITA describes earnings before interest, taxes and amortization of intangible assets. For long-term comparison and a better understanding of business development, NORMA Group adjusts the EBITA for certain one-time expenses. NOTES

Earnings before interest, taxes, depreciation and amortization (EBITDA)

Earnings before interest, taxes, depreciation (of property, plant and equipment) and amortization (of intangible assets). It is a measure of a company’s operating performance before investment expenses. For long-term

comparison and a better understanding of its business development, NORMA Group adjusts the EBITDA for certain one-time expenses. NOTES

EBIT margin (adjusted)

The adjusted EBIT margin is calculated from the ratio of adjusted EBIT to sales and is an indicator of the profitability of NORMA Group’s business activities.

EBITA margin (adjusted)

The adjusted EBITA margin is calculated from the ratio of adjusted EBITA to sales and is an indicator of the profitability of NORMA Group’s business activities.

EBITDA margin (adjusted)

The adjusted EBITDA margin is calculated from the ratio of adjusted EBITDA to sales.

Economies of scale

Describes the ratio of production volume to the factors of production factors. In the case of positive economies of scale increases with the intensification of the production factors the quantity of output also increases.

Elastomers

Stable but elastic plastics that are used at a temperature above their glass transition temperature. The plastics can deform under tensile or compressive load, but then return to their original shape.

EMEA

Abbreviation for the economic area of Europe (comprising Western and Eastern Europe), the Middle East and Africa.

ESG

ESG stands for Environmental, Social and Governance. The abbreviation refers to the commitment of companies in the areas of environment, social affairs and corporate governance.

ESRS

European Sustainability Reporting Standards; standards for CSR reporting according to CSRD.

Equity ratio

Equity in relation to total assets.

EU Taxonomy

The EU Taxonomy represents a detailed classification system designed to provide the greatest possible transparency to the capital market in order to encourage investment in environmentally sustainable activities. It also establishes, for the first time, a link between financial and non-financial issues in order to provide an objective and consistent assessment of the sustainability of economic activities. The EU Taxonomy was originally designed by the European Commission as part of its climate policy positioning following the Paris Climate Agreement in 2019. It is based on the European Green Deal and aims to establish reporting requirements that increase the informative value of companies' non-financial reporting.

Fair value

Fair value is the amount for which an asset could be exchanged, or a liability settled, between market participants in an arm's length transaction at the measurement date. In principle, it is a value concept for the measurement of assets or liabilities. Fair value is used in particular for the measurement IAS 40 in conjunction with IFRS 13.

Free cash flow

Indicates the amount of money that is available to pay dividends to shareholders and / or repay loans.

Gearing

Gearing is a measure of a company’s debt level. Gearing is calculated from the ratio of net debt to equity.

Gemba walk

Daily walk through production halls, inspecting individual processes in the opposite order of workflow and analyzing potential opportunities for improvement.

GRI – Global Reporting Initiative

Initiative that sets standards for sustainability reporting.

IATF 16949

An international standard that combines the existing general demands on quality management systems of the (mostly North American and European) automotive industry.

IDW

The Institute of Auditors in Germany (Institut der Wirtschaftsprüfer in Deutschland e. V.) ket.

International securities identification number (ISIN)

12-digit alphanumerical code used to identify a security traded on the stock market.

ISO 9001

International standard that defines the minimum requirements that quality management systems must meet.

ISO 14001

An international environmental management standard that specifies the internationally accepted requirements for an environmental management system.

ISO 45001

Health and Safety Management that replaces the current Occupational Health and Safety Assessment Series 18001 (OHSAS 18001)

Leverage

Leverage is a measure of a company’s debt and is calculated as the ratio of net debt (without hedging instruments) to adjusted EBITDA over the last 12 months (LTM). For the purpose of a better comparison, adjusted EBITDA LTM includes the companies acquired during the year.

Long-term incentive plan (LTI)

Multi-year variable compensation in the form of stock rights for executives and other specific employee groups, representing a cash-settled share-based compensation plan in the form of virtual shares. It takes into account both the development of the company as well as that of the share price.

Material cost ratio

The material cost ratio of NORMA Group results from the ratio of material expenses to sales.

MHEV

MHEV is the abbreviation for Mild Hybrid Electric Vehicle. An MHEV is a vehicle that is powered by an internal combustion engine and also has a small electric motor. The electric motor supports the combustion engine in certain energy-intensive situations, for example when starting off and accelerating. The battery does not need to be charged from an external power source; instead, the kinetic energy of the vehicle is converted into electricity, for example when braking. By recovering the energy, fuel consumption can be reduced.

Net debt

Net debt is the sum of financial liabilities less cash and cash equivalents. Financial liabilities also include liabilities from derivative financial instruments that are held for trading purposes or as hedging instruments.

Net operating cash flow

Net operating cash flow is calculated on the basis of EBITDA plus changes in working capital less investments from operating activities. Net operating cash flow is a key financial control figure for NORMA Group and serves as a measure for the Group’s liquidity.

NEV

NEV stands for “New Energy Vehicle” and is the collective term for vehicles that can be charged from the power grid. These include battery-powered electric vehicles (BEV), plug-in hybrids (PHEV) and fuel cell vehicles (FCEV).

OHSAS 18001

Occupational Health and Safety Assessment Series; certification of occupational health and safety management systems.

Original equipment manufacturer (OEM)

A company that retails products under its own name.

PHEV

PHEV is the abbreviation for Plug-in Hybrid Electric Vehicle. A PHEV is a hybrid electric vehicle with a battery that can be charged by plugging a charging cable into an external power source. The battery can also be charged internally on board by the combustion engine's generator.

Prime standard

A segment of the regulated stock market with higher inclusion requirements than the General Standard. It is the private law segment of the Frankfurt Stock Exchange with the highest transparency standards. All companies listed in the DAX, MDAX, TecDAX and SDAX must be included in the Prime Standard.

Reverse factoring

A financing solution initiated by the ordering party in order to help its suppliers finance their receivables more easily and at a lower interest rate than they would normally be offered.

Roadshow

Series of corporate presentations made to investors by an issuer at various financial locations to attract investment in the company.

ROCE

ROCE is the abbreviation for return on capital employed.

SBU

Abbreviation for “Strategic Business Unit”.

Scope 1, 2, 3

Method for differentiating greenhouse gases. Scope 1: Emissions from emission sources within the company’s boundaries. Scope 2: Emissions from the generation of energy procured from outside the boundaries (especially electricity and heat). Scope 3: All other emissions caused by the company’s activities but not under its control, for example from suppliers, service providers or employees.

Securities ID number (WKN)

A six-character combination of numbers and letters used in Germany to identify securities.

SMED (Single Minute Exchange of Die)

Optimization of set up times of processes through both organizational and technical measures.

Societas europaea (SE)

Legal form for stock companies in the European Union and the European Economic Area. With the SE, the EU started allowing for companies to be founded in accordance with a largely uniform legal framework at the end of 2004.

Step Up

Medium‑term program to increase efficiency and productivity across NORMA Group’s operating business and support profitable growth in the strategic units Industrial Applications and Mobility & New Energy.

Sustainable Development Goals (SDGs)

The Sustainable Development Goals (SDGs), adopted by the UN General Assembly in 2015, cover economic, environmental and social dimensions and include indicators that make their implementation measurable.

UN Global Compact

United Nations initiative for corporate responsibility.

Weighted average cost of capital (WACC)

The weighted average cost of capital (WACC) represents a company’s total costs of capital for liabilities and equity depending on the individual capital structure.

Working capital

Trade working capital describes the Group’s current net operating assets and is calculated as the sum of inventories and trade receivables minus trade payables.

Xetra

An electronic trading system operated by Deutsche Börse AG for the spot market.