Risk and Opportunity Profile of NORMA Group

As part of the preparation and monitoring of the risk and opportunity profile, NORMA Group assesses risks and opportunities based on their financial impact and probability of occurrence. The financial impact of opportunities and risks is assessed on the basis of the effect on the Group’s earnings and liquidity. The following four categories are used to determine the potential maximum average annual impact in the period under review of the risk management system:

•Low: up to EUR 5 million effect on earnings or liquidity

•Moderate: more than EUR 5 million and up to EUR 15 million effect on earnings or liquidity

•Significant: more than EUR 15 million and up to EUR 30 million effect on earnings or liquidity

•High: more than EUR 30 million effect on earnings or liquidity

The interval used sets the financial impact of a risk or opportunity in relation to the EBIT of the Group or a segment if the respective risk or opportunity relates solely to a specific segment. The assessment of opportunities and risks whose financial impact has an effect on line items in the Consolidated Statement of Comprehensive Income below EBIT is also performed in relation to EBIT. The presented impact always reflects the effects of countermeasures initiated. The probability of individual risks and opportunities occurring is quantified based on the following four categories:

•Very unlikely: up to 5% probability of occurrence

•Unlikely: more than 5% and up to 25% probability of occurrence

•Possible: more than 25% and up to 50% probability of occurrence

•Probable: more than 50% probability of occurrence

Compared to the risk and opportunity assessment published in the 2024 Annual Report, there have been changes in the risk assessment in certain areas. In particular, NORMA Group believes that the following issues and developments have a potential impact on business operations or have led to an adjustment in the assessment of opportunities and risks:

In view of the global downward trend in inflation, central banks have further lowered key interest rates overall in the course of 2025. Overall, NORMA Group expects this development to continue. For this reason, opportunities arising from interest rate changes – particularly with regard to the major currencies EUR and USD – are now assessed as “likely” (in the 2024 annual report: “possible”). The associated potential financial impact continues to be assessed as “low.”

Despite moderate growth in the global economy over the course of the fiscal year so far, the global economy is likely to continue to be under pressure overall. Of particular relevance to NORMA Group are the global developments in trade restrictions such as tariffs as well as in the automotive market and industry. The first half of 2025 was primarily impacted by  increased trade restrictions and volatile conditions, particularly with regard to US tariffs, which led to reduced automotive production and continued reluctance to invest in industry. ECONOMIC REPORT  NORMA Group currently classifies economic and cyclical risks as "likely" (in the 2024 Annual Report: "possible"). The financial impact – taking into account countermeasures – is still estimated to be "moderate".

NORMA Group continuously develops and implements initiatives aimed at cost discipline and the continuous improvement of production processes. Corresponding activities have been and are being intensified and implemented in a structured manner as part of the initiated growth and efficiency program Step Up. SIGNIFICANT EVENTS IN THE FIRST HALF OF 2025 Overall, process-related risks continue to be assessed as “possible,” while their potential financial impact is classified as “low.”