ANNUAL REPORT 1 INTRODUCTION ABOUT THIS REPORT 2 TO OUR SHAREHOLDERS 3 CORPORATE RESPONSIBILITY REPORT limited space or the better findability of web texts, not all variants are always 4 CONSOLIDATED NORMA Group publishes both financial and non-financial information in its mentioned. MANAGEMENT REPORT 2020 Annual Report. In addition to the Group Management Report and the Consolidated Financial Statements, the report also includes a Non- Data and reporting standards 5 CONSOLIDATED FINANCIAL financial Group Report in accordance with Sections 315c of the German STATEMENTS Commercial Code (HGB) in conjunction with Sections 289c to 289e HGB. The reporting period covers the fiscal year from January 1 to Decem- NON-FINANCIAL REPORT GLOBAL REPORTING INITIATIVE (GRI) 6 FURTHER INFORMATION and ber 31, 2020. To ensure the greatest possible timeliness, all relevant informa- UN GLOBAL COMPACT tion available up to the issuance of the assurance by the legal representatives on March 11, 2021 is included. The Consolidated Financial Statements and The Annual Report is published solely in digital form. It is available in PDF the Group Management Report have been prepared in accordance with the format and as an online report. WWW.NORMAGROUP.COM NORMA Group’s International Financial Reporting Standards (IFRS), as applicable in the Euro- Annual Report is published in German and English. In the event of any pean Union (EU), as well as in accordance with the German Commercial Code deviations, the German version takes precedence. Due to commercial rounding, (HGB). Sustainability reporting fulfils the “core” option of the standards of the minor changes may occur in the disclosure of amounts or percentage changes Global Reporting Initiative (GRI). GRI and UN GLOBAL COMPACT at various points in this report. Independent Auditing When persons are mentioned in this publication, this always refers to female, male and diverse (for example transsexual and intersexual) persons. For The Consolidated Financial Statements prepared by NORMA Group consist- reasons of better readability and/or formal or technical reasons such as ing of the Consolidated Statement of Financial Position, the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Changes in Equity, the Consolidated Statement of Cash Flows and the Notes to the Consolidated Financial Statements, as well as the Group Management Report INDEPENDENT AUDITOR’S REPORT and the Non-financial Group Report The following symbols indicate important information: ASSURANCE REPORT were audited by PricewaterhouseCoopers (PwC) Wirtschafts prüfungsgesellschaft. Further information can be found Further information can be elsewhere in the Annual Report. found on the NORMA Group website. These contents are part of the Non-financial Group Report and were subject to a separate limited assurance examination. NON-FINANCIAL REPORT Show content Pageforward / back NORMA Group SE – Annual Report 2020 2 CORPORATE TO OUR RESPONSIBILITY INTRODUCTION SHAREHOLDERS REPORT 2 About This Report 9 The Management Board 34 Corporate Responsibility Strategy 3 Content 10 Letter from the Management Board 39 Governance 4 2020 Financial Figures 12 NORMA Group on the Capital Market 45 Environment 6 NORMA Group 18 Supervisory Board Report 54 Social 23 Corporate Governance Report and 59 Social commitment Declaration on Corporate Governance 62 Non-financial Report, GRI and UN Global Compact 64 CR Performance Indicators 67 Assurance Report CONSOLIDATED CONSOLIDATED MANAGEMENT FINANCIAL FURTHER REPORT STATEMENTS INFORMATION 70 Principles of the Group 149 C onsolidated Statement of 253 Glossary 85 Economic Report Comprehensive Income 258 List of Graphics 110 Forecast Report 150 C onsolidated Statement of 259 List of Tables 117 Risk and Opportunity Report Financial Position 261 Overview by Quarter 132 Remuneration Report 151 Consolidated Statement of Cash Flows 262 10-Year Overview 145 Other Legally Required 152 Consolidated Statement of Changes 264 Financial Calendar, Contact Disclosures in Equity and Imprint 147 Report on Transactions with 153 Notes to the Consolidated Financial Related Parties Statements 242 Appendix to the Notes to the Consolidated Financial Statements 245 Responsibility Statement 246 Indenpendent Auditor’s Report CONTENT NORMA Group SE – Annual Report 2020 3 1 INTRODUCTION 2020 FINANCIAL FIGURES 2 TO OUR SHAREHOLDERS T001 3 CORPORATE Financial figures 2020 2019 Change in % RESPONSIBILITY REPORT Order situation 4 CONSOLIDATED Order book 1 EUR million 391.3 358.3 9.2 MANAGEMENT REPORT Income statement 5 CONSOLIDATED FINANCIAL Revenue EUR million 952.2 1,100.1 – 13.4 STATEMENTS (Adjusted) material cost ratio 2 % 43.8 43.4 n / a (Adjusted) personnel cost ratio 2 % 31.3 27.5 n / a 6 FURTHER INFORMATION Adjusted EBITA 2 EUR million 54.6 144.8 – 62.3 Adjusted EBITA margin 2 % 5.7 13.2 n / a EBITA EUR million 51.1 127.9 – 60.0 EBITA margin % 5.4 11.6 n / a Adjusted EBIT 2 EUR million 45.3 136.1 – 66.7 Adjusted EBIT margin 2 % 4.8 12.4 n / a EBIT EUR million 20.1 96.7 – 79.2 EBIT margin % 2.1 8.8 n / a Financial result EUR million – 14.8 – 15.5 – 4.7 (Adjusted) tax rate % 20.3 27.1 n / a Adjusted profit for the period 2 EUR million 24.3 87.8 – 72.3 Adjusted earnings per share 2 EUR 0.77 2.76 – 72.1 Profit for the period EUR million 5.5 58.4 – 90.6 Earnings per share EUR 0.18 1.83 – 90.2 NORMA Value Added (NOVA) EUR million – 46.4 17.3 n / a Return on Capital Employed (ROCE) 3 % 4.6 13.0 n / a Balance sheet1 Total assets EUR million 1,414.7 1,514.3 – 6.6 Equity EUR million 589.5 629.5 – 6.3 Equity ratio % 41.7 41.6 n / a Net debt EUR million 338.4 420.8 – 19.6 Cash flow Cash flow from operating activities EUR million 133.5 137.1 – 2.6 Cash flow from investing activities EUR million – 39.1 – 57.0 – 31.5 Cash flow from financing activities EUR million – 81.0 – 93.2 – 13.2 Net operating cash flow EUR million 78.3 122.9 – 36.3 1_Figures as at balance sheet date Dec 31. 2_2020: adjusted by effects from purchase price allocation; 2019: adjusted by effects from purchase price allocation and one-offs. ADJUSTMENTS. 3_Adjusted EBIT in relation to the average capital employed. NORMA Group SE – Annual Report 2020 4 1 INTRODUCTION 2 TO OUR SHAREHOLDERS 3 CORPORATE Non-financial figures 2020 2019 Change in % RESPONSIBILITY REPORT General information 1 4 CONSOLIDATED Core workforce 6,635 6,523 1.7 MANAGEMENT REPORT Temporary workers 2,155 1,998 7.9 Total workforce 8,790 8,521 3.2 5 CONSOLIDATED FINANCIAL Number of invention applications 22 22 0 STATEMENTS Governance / Integrity 6 FURTHER INFORMATION Number of employees who were trained on compliance topics online 2,091 1,233 69.6 Defective parts PPM (parts per million) 5.1 6.1 – 16.4 Customer complaints average per month per entity 4.7 6.4 – 26.6 Environment CO2 emissions (Scope 1 and 2) t CO2e 49,813 54,494 – 8.6 Energy consumption kWh / EUR thousand of revenue 124.2 118.1 5.1 Water consumption liter / EUR thousand of revenue 154.8 156.8 – 1.3 Hazardous waste kg / EUR thousand of revenue 0.6 0.5 35.8 Non-hazardous waste kg / EUR thousand of revenue 11.0 8.3 31.2 Share of manufacturing locations certified according to ISO 14001 % 93.0 89.7 n / a Social Accident rate accidents / 1,000 employees 4.2 4.3 – 1.1 Share of manufacturing locations certified according to OHSAS 18001 or ISO 45001 % 71.4 69.0 n / a Average training hours hours per employee 20.9 28.1 – 25.8 Female employees in relation to core workforce % 36.0 35.9 n / a Share data Initial public offering April 2011 Stock exchange Frankfurt Stock Exchange Market segment Regulated Market (Prime Standard), SDAX ISIN DE000A1H8BV3 Security identification number A1H8BV Ticker symbol NOEJ Highest price 2 EUR 42.38 Lowest price 2020 2 EUR 14.38 Closing price 1, 2 EUR 41.88 Market capitalization 1 EUR million 1,334.4 Dividend 3 EUR 0.70 Payout ratio 3 % 91.7 Shares issued Number 31,862,400 1_Figures as at balance sheet date Dec 31, 2020. 2_Xetra price. 3_Subject to approval by the Annual General Meeting. NORMA Group SE – Annual Report 2020 5 1 INTRODUCTION NORMA GROUP 2 TO OUR SHAREHOLDERS 3 CORPORATE RESPONSIBILITY REPORT NORMA Group is an international market and technology leader in joining and Standardized Joining Technology (SJT) 4 CONSOLIDATED fluid-handling technology and offers more than 40,000 high-quality products MANAGEMENT REPORT and solutions to around 10,000 customers in more than 100 countries. In the area of SJT, NORMA Group sells a wide range of high-quality, stand- NORMA Group’s joining products are used in various industries and can be ardized joining technology products for various applications through different 5 CONSOLIDATED FINANCIAL found in vehicles, ships, trains, aircraft, domestic appliances, engines and water distribution channels. Among its customers are distributors, OEM aftermarket STATEMENTS systems as well as in applications for the pharmaceutical and biotechnology customers, technical wholesalers and hardware stores. Furthermore, the area 6 FURTHER INFORMATION industry. From its headquarters in Maintal near Frankfurt, Germany, the of SJT includes NORMA Group’s water business with applications for storm- Company coordinates a global network consisting of 28 production facilities water management, drip irrigation and joining solutions for infrastructure in as well as numerous sales and distribution sites across Europe, the Americas, the water area. NORMA Group’s extensive geographic presence, its global and Asia-Pacific. manufacturing, distribution and sales capacities, its strong brands and high service quality set NORMA Group apart from its competitors. NORMA Group markets its joining technology products under its well-known brand names: Two strong distribution channels Engineered Joining Technology (EJT) The business area of EJT focuses on customized, engineered solutions that meet the specific requirements of original equipment manufacturers (OEM).