NORMA GROUP

Q1 2024

RESULTS

MAINTAL, MAY 7, 2024

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Table of Contents - Q1 2024

01

02

03

Q1 2024 Review - Facts & Figures

Slight sales decrease in Q1 2024 due to weaker development in some end markets

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Top Line, Segment Reporting and P&L

Significant improvement in adjusted EBIT margin year over year; Efficiency measures key driver in Q1 2024

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Net Debt & Equity Ratio

Balance Sheet further improved; Equity ratio further strengthened

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04

05

06

Cash Flow & NORMA Value Added

Strong increase in Net Operating Cash Flow; NORMA Value Added influenced by higher WACC and still elevated tax rate

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Guidance & "Step Up" Program

Guidance for FY 2024 confirmed; Step Up efficiency measures on track

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FY 2023 IR Presentation

FY 2023 - A year of multiple challenges regarding the business environment.

2

Facts & Figures Q1 2024 - Key Figures (I/II)

Sales

Net sales totaled to EUR 308.5

million

(Q1 2023: EUR 315.0 million)

Net Operating

Cashflow

Strong increase in Net Operating Cashflow to EUR -2.3 million*

(Q1 2023: EUR -44.8 million)

Adjusted EBIT

Adj. EBIT Margin

Adjusted EBIT up to

Adjusted EBIT margin improved to

EUR 25.7 million

8.3%

(Q1 2023: EUR 22.6 million)

(Q1 2023: 7.2%)

NOVA

CO2 Emissions

NORMA Value Added

CO2 emissions reduced by 11.2%

at EUR -7.6 million

to 1,654 t CO2e in Q1 2024

(Q1 2023: EUR -9.4 million)

(Q1 2023: 1,862 t CO2e)

* With factoring programs at EUR 55 million as of March 31, 2024 (December 31, 2023 EUR 58 million)

3

Facts & Figures Q1 2024 - Key Figures (II/II)

Adjusted EPS

Adj. EPS at EUR 0.39

(Q1 2023: EUR 0.37)

Net Debt

Net Debt up to

EUR 378.2 million

(Dec 31, 2023: EUR 345.4 million)

Reported EPS

Rep. EPS at EUR 0.26

(Q1 2023: EUR 0.24)

Leverage

Leverage at 2.4x adj. EBITDA

(Dec 31, 2023: 2.2x)

Equity

Improved equity ratio of 47.0%

(Dec 31, 2023: 46.4%)

Dividend

Dividend proposal of EUR 0.45 for FY 2023 to AGM on May 16, 2024

(2023: EUR 0.55)

4

Q1 2024 Top Line Development

in EUR million

-2.0%

12%

400

Regional

(12%)

315

309

Segments

44%

-3.2

0.4

-3.6

Split

(44%)

200

(in %, prev.

44%

(44%)

year in

brackets)

0

Americas

EMEA

APAC

Sales Q1 2023

Volume / Pricing

Acquisitions

Currency

Sales Q1 2024

Top Line

  • Net Sales development of -2.0% to EUR 308.5 million in 2024 compared to EUR 315.0 million in 2023.

therein*

+1.3%

-2.3%

Price

Volume

Volume / Price Mix

  • Volume decreased by overall 2.3 %.
  • Decline in volume relates to a cautious start at Industry Applications in Q1 2024, whereas the Water Management business showed a good development; Mobility & New Energy with slight decrease in volume.
  • Price increases negotiated in the previous year contributed overall 1.3 % to Group Sales development in Q1 2024.

Currency Effects

  • Translation effects of EUR -3.6 million.
  • Thus, currency effects reflect -1.1% of Group Net Sales development.
  • Currency effects mostly related to USD and APAC region.

*Including also Acquisition effects of 0.1 % related to new Teco business.

5

Q1 2024 - Sales Development by Regions (I/II)

AMERICAS Sales in EUR million

EMEA Sales in EUR million

APAC Sales in EUR million

-1.6%

-1.2%

-6.4%

138

135

138

137

39

37

Q1 2023

Q1 2024

Q1 2023

Q1 2024

Q1 2023

Q1 2024

6

Q1 2024 - Sales Development by Regions (II/II)

Americas

  • Industry Applications: Subdued demand due to postponements in customer´s spending decisions resulting in lower sales of EUR 18.5 million (Q1 2023: EUR 21.7 million)
  • Water Management: Good development in the US market leading to increased sales level
    of EUR 64.9 million (Q1 2023: EUR 62.2 million)
  • Mobility & New Energy: Sales decreased slightly
    to EUR 52.0 million (Q1 2023: EUR 53.7 million)

Sales Development (in EUR million)

200

138

135

-0.6-1.6

100

-

Sales Q1

Volume/

Currency

Sales Q1

2023

Price Mix

2024

EMEA

  • Industry Applications: Decline in sales to EUR
    31.6 million (Q1 2023: EUR 33.8 million) due to overall weaker industrial economy
  • Water Management: Growth in volume and acquisition effects from Teco acquisition completed in February 2024 contributed to sales of EUR 1.5 million (Q1 2023: EUR 0.6 million)
  • Mobility & New Energy: Sales at EUR 103.4 million almost on par with the same period of the previous year (Q1 2023: EUR 103.8 million)

Sales Development (in EUR million)

200

138

137

-2.0-0.1

100

0

Sales Q1

Volume/

Currency

Sales Q1

2023

Price Mix

2024

APAC

  • Industry Applications: Sales declined to EUR 4.9
    million (Q1 2023: EUR 6.2 million) due to a further delay in recovery of the Chinese economy
  • Water Management: Sales of EUR 6.6 million
    (Q1 2023: EUR 7.2 million)
  • Mobility & New Energy: Stable business development with sales almost at the previous year's level of EUR 25.1 million (Q1 2023: EUR 25.8 million)

Sales Development (in EUR million)

50

39

37

-0.6-1.9

25

0

Sales Q1

Volume/

Currency

Sales Q1

2023

Price Mix

2024

7

Q1 2024 - Sales Development in Strategic Business Units

Industry Applications

  • Overall, sales fell by 10.8% in Q1 2024 primarily due to lower volumes as a result of weak global demand. This was offset to a small extent by higher sales prices compared to the same quarter of the previous year.

Sales Development (in EUR million)

100

62

55

50

-6.1

-0.5

-

Sales Q1

Volume/

Currency

Sales Q1

2023

Price Mix

2024

Water Management

  • Increase in sales of 4.2% in total, driven predominantly by good volume growth. Acquisition effects supported top line additionally. Negative currency effects had a dampening effect.

Sales Development (in EUR million)*

100

70

3.7

73

-1.2

50

0

Sales Q1

Volume/

Currency

Sales Q1

2023

Price Mix

2024

Mobility & New Energy

  • Sales 1.5% below the level of the same quarter of the previous year, driven by negative currency effects. Slightly lower volume included in this figure could be partly offset by the higher sales prices negotiated in the previous year.

Sales Development (in EUR million)

200

183

181

-0.8-1.9

100

0

Sales Q1

Volume/

Currency

Sales Q1

2023

Price Mix

2024

* Sales in Q1 2024 also including acquisition effects (from Teco acquisition) of 0.6 %.

8

Q1 2024 (Adjusted) Profit & Loss Development

Material Costs

Gross Profit

(in EUR million and % of sales)

(in EUR million and % of sales)

-141.5

-136.8

169.3

176.2

44.9%

44.3%

57.1%

53.8%

Q1 2023

Q1 2024

Q1 2023

Q1 2024

Material Cost ratio improved by 60 BPs due to cost reductions in purchasing; Gross Profit ratio up by 330 BPs mainly resulting from decreased material costs and inventory built up of EUR 3.2 million (Q1 2023: inventory decrease of EUR 4.8 million)

Personnel Expenses

(in EUR million and % of sales)

-82.1-86.0

27.9%

26.1%

Q1 2023

Q1 2024

Personnel Expense ratio up by 180 BPs due to wage inflation and temporary inefficiencies

Net Expenses from adj. other oper.

Income and Expenses

(in EUR million and % of sales)

-50.5-49.7

16.0%16.1%

Q1 2023

Q1 2024

Total OPEX decreased mainly due to lower

(special) freight costs

Adjusted EBITDA

Adjusted EBIT

(in EUR million and % of sales)

(in EUR million and % of sales)

36.7

40.5

25.7

13.1%

22.6

11.7%

8.3%

7.2%

Q1 2023

Q1 2024

Q1 2023

Q1 2024

Adjusted EBITDA and adjusted EBIT margins showed a strong positive development in Q1 2024 and improved

significantly due to implemented efficiency measures compared to the prior year's quarter.

9

Q1 2024 - Adjusted EBIT Margin by Region

AMERICAS adj. EBIT Margin

EMEA adj. EBIT Margin

APAC adj. EBIT Margin

11.0%

11.1%

5.5%

7.4%

6.3%

6.9%

Q1 2023

Q1 2024

Q1 2023

Q1 2024

Q1 2023

Q1 2024

10

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Disclaimer

Norma Group SE published this content on 06 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 May 2024 11:25:01 UTC.