Norma Group

NORMA Group SE with record numbers in the first half of 2014

Maintal, Germany, 6 August 2014 – NORMA Group SE ("NORMA Group"), a global market leader for engineered joining technology, finished the first half of 2014 with record sales and earnings. Group sales in the first six months of the year grew by 9.4% year on year to EUR 353.0 million (H1/2013: EUR 322.8 million). Organic growth in the first half of 2014 amounted to 10.3%. Acquisitions contributed 1.8% to the strong sales growth while negative currency effects detracted 2.7%. Adjusted earnings before interest, taxes and amortisation (EBITA) improved by 12.2% year on year to EUR 63.1 million between January and June 2014 (H1/2013: EUR 56.2 million). The adjusted EBITA margin expanded by 50 basis points year on year to 17.9% in the first half of 2014 and remained at a consistently high level (H1/2013: 17.4%).

“We had a successful first half of 2014 that was in line with our expectations. We could significantly increase sales and earnings,“ says Werner Deggim, CEO of NORMA Group. “The positive development of the business and the strong organic growth of more than ten per cent benefited, among other things, from the much improved macroeconomic environment and new productions subsequent to the introduction of the EURO-6 emissions standard in Europe. From September 2014, the latter will also be mandatory for all newly registered diesel and petrol passenger vehicles. We are confident that we will reach the targets we have set for ourselves in financial year 2014."

By 30 June 2014, the order backlog had grown 4.3% year on year to EUR 252.1 million (H1/2013: EUR 241.8 million).

Positive business momentum across all three regions
Sales in the EMEA (Europe, Middle East and Africa) region grew by 5.1% year on year to EUR 210.0 million in the first half of 2014 (H1/2013: EUR 199.8 million). Beyond the macroeconomic recovery, the region also benefited from the introduction of the statutory EURO-6 emissions standard and the related step-up in production of new-generation engines.

The Americas region made a positive contribution in the first half of 2014, inter alia on the back of the pronounced economic recovery in the US. Sales improved by 16.0% year on year to EUR 113.3 million (H1/2013: EUR 97.6 million). In April 2014, NORMA Group acquired the company Five Star Clamps, Inc. in the US to expand its footprint in the country. Five Star Clamps, Inc. manufactures and distributes joining products for numerous applications across various industries. Furthermore, NORMA Group started production in Brazil in April 2014. The new plant in Atibaia near São Paulo manufactures metal- and plastic-based joining products for the South American market. With it, NORMA Group is strengthening its position in the emerging South American markets.

The Asia-Pacific region generated sales of EUR 29.8 million over the first six months of this financial year, which represented a 17.6% increase (H1/2013: EUR 25.3 million). In May 2014, NORMA Group's second Chinese plant started producing worm-drive and profile clamps. The
new production facility in Changzhou near Shanghai responds to the growing demand for NORMA Group products in the Asia- Pacific region.

Equity ratio at a consistently high level
On 30 June 2014, the Group’s equity was EUR 332.4 million, up EUR 12.5 million compared to the end of 2013 (31 December 2013: EUR 319.9 million). The equity ratio, which had increased significantly from 38.9% at year-end 2013 to reach 44.9% in the first quarter of 2014, remained stable in the second quarter in spite of the dividend payment in the amount of EUR 22.3 million in May 2014. Net debt ex hedging instruments grew by only 11.3% to EUR 153.8 in spite of the distribution of dividends and the repayment of hedging transactions (31 December 2013: EUR 138.2 million).

On 30 June 2014, NORMA Group had 5,303 employees globally including temporary staff. This represents an increase in headcount by 356 since year-end 2013 as a result of the international expansion (31 December 2013: 4,947 employees). In Germany, NORMA Group had 922 employees including temporary staff as per 30 June 2014, 20 employees more than at the end of 2013 (31 December 2013: 902 employees).

Guidance for 2014 confirmed
Overall, the development of the business over the first six months of 2014 was in line with expectations, leading NORMA Group to confirm its guidance for financial year 2014. Group sales in financial year 2014 are expected to grow organically by around a solid 4 to 7% compared to 2013. In addition, NORMA Group anticipates to generate sales of around EUR 8 million from acquisitions. In 2014 NORMA Group targets a sustainable adjusted EBITA margin at the level of the previous years of over 17% (2013: 17.7%; 2012: 17.4%, 2011: 17.7%).

NORMA Group SE with record numbers in the first half of 2014.pdf