Increase in value

The long-term strategy of NORMA Group is based on the ‘Vision 2025’, which was launched by the Management Board in 2018. The Vision 2025 includes increasing the value creation of NORMA Group as its central objective, building on NORMA Group’s successful entrepreneurial development and focusing on sustained sales growth, profitability above the industry average and the efficient deployment of capital. On its way to achieving these goals, NORMA Group is pursuing a stakeholder-oriented approach that is geared both toward the demands of its customers for innovative and value-creating solutions and to the interests of its shareholders and suppliers. In order to achieve these goals, NORMA Group seeks to offer its employees an environment geared toward continuous improvement, thereby strengthening its position as the employer of choice. At the same time, NORMA Group regards it as a central component of its corporate responsibility to reconcile the effects of its business activities with the expectations and needs of society. For this reason, the Management Board`s goal is to base all entrepreneurial decisions on the principles of responsible corporate management and sustainable action. Corporate Responsibility (CR), NORMA Group’s responsibility towards people and the environment, is therefore regarded as an integral part of the Company strategy.


Key Strategic Objectives

Profitable growth

NORMA Group‘s primary objective is to increase the value of the company. In each region, the focus is therefore on the ongoing profitable expansion of business activities. Through the continuous expansion of application solutions at existing customers and the identification and acquisition of new customers, business activities are expanded, and the international presence increasingly strengthened. The core of NORMA Group‘s growth strategy is the selective addition to the product portfolio, the expansion of the regional presence and the expansion of the market position in the focused end markets of water management, industry applications, mobility and new energy. In identifying its business areas, NORMA Group focuses on markets with attractive margins, sophisticated products, strongly growing sales potential as well as a fragmented competitive structure. Global megatrends such as climate change are increasing the need for low-emission technologies. The increasing scarcity of resources offers NORMA Group attractive growth potential, especially for its water business.

Selective product portfolio

The technological requirements placed on the end products of NORMA Group customers are constantly changing. Increasing environmental awareness, scarcity of resources and growing cost pressures play a major role in almost every sector of industry. Furthermore, the automotive and commercial vehicle industries, in particular, are subject to stricter emission regulations and special requirements for the materials used. This is also accompanied by increasing technological change, away from conventional combustion engines towards alternative powertrain techniques such as hybrid, electromobility and hydrogen.

These circumstances form the starting point for the development of new products. NORMA Group focuses on value-enhancing solutions that support its customers in reducing emissions, leaks, weight, space and assembly time. A major focus here is also on the area of thermal management for vehicles. With its strategic business field Water Management and the extensive product portfolio for applications in landscape irrigation, storm water management and infrastructure solutions in the water sector, NORMA Group supports its customers in optimizing the use of scarce resources. Innovations play an important role in meeting the increasing customer demands that accompany each new production cycle. This is why NORMA Group’s more than 300 engineers and developers are constantly working on developing new products and optimizing the currently used processes and systems.

In order to sustainably strengthen its innovative power, the Group plans to spend around 3% of its sales in research and development activities each year. R&D expenditure mainly relates to developments in Engineered Joining Technology (EJT) and accounts for around 5% of EJT sales. Nevertheless, as the water management sector becomes increasingly relevant and a strategic focus, R&D activities are also being stepped up in this area. For this reason NORMA Group includes these activities in the calculation of R&D expenses from the 2020 reporting year onwards and uses total sales as a reference value to determine the R&D ratio.

Selective value-adding acquisitions to supplement organic growth

By making select acquisitions, NORMA Group contributes to the diversification of its business and strengthens its growth. Acquisitions are therefore an integral part of the company’s long-term growth strategy. NORMA Group observes the development in the strategic business units Water Management, Industry Applications, Mobility and New Energy continuously and contributes to its consolidation through targeted acquisitions. In total, NORMA Group has acquired 14 companies since the IPO in 2011 and integrated them into the Group. The main focus of M&A activities is always on companies that help to realize the diversification objectives of NORMA Group, to strengthen its competitive position and/or to generate synergies. The preservation of growth and high profitability also play an important role. The search for suitable companies focuses on the automotive and water management sectors. Since acquiring the US water specialist National Diversified Sales (NDS) in fiscal year 2014, NORMA Group has built up an established market position in the fast-growing water industry, which is to be expanded through further acquisitions in this area.

Strategic Measures

Increase of company value through profitable growth

Our strategic goal is the sustainable increase of the company value. In every regional segment and in both distribution channels (EJT and SJT) the focus lies on the continuous extension of business activities and the increase in market shares in all business segments. By making selected acquisitions, we intend to contribute to the diversification of our business activities and strengthen our growth. Acquisitions are therefore an integral part of our long-term growth strategy. The main focus of M&A activities is always on companies that help to realize the strategic objectives of NORMA Group, to strengthen its competitive position and/or to generate synergies. The preservation of growth and high profitability also play an important role.


New product developments for strong future markets

Broad diversification with respect to the products, regions and end markets we operate in represents the core of our growth strategy. We expand and strengthen our business activities and international presence by constantly adding application solutions for existing EJT customers, identifying and signing up new EJT customers, extending and deepening our customer base in the area of Distribution Services and entering new markets with attractive growth potential. We see immense growth potential especially in the emerging markets where demand for advanced engineered joining technology is on the rise in all industries due to the ongoing industrialization and increasing quality requirements.


Highest quality requirements and strong brand image

Although our joining products make up a relatively small value proportion of the final product, they are often mission-critical. The Group-wide compliance with highest quality standards and a stringent quality management process thus play a crucial role.

The area Standardized Joining Technology (SJT), which offers and sells more standardized brand products is based on a specific, regionally-driven brand strategy that is tailored on the respective performance parameters of our well-known brands. In this business unit, the focus is on ensuring high-quality service and the availability of products at all times. We ensure this through our worldwide distribution network.


Strong perfomance and continuous efficiency improvements

In order to increase our profitability, we focus on continuously improving processes in all functional areas and regions. Our Global Excellence Program serves as an important tool for achieving this. As part of this program, all internal operative processes are continuously optimized. Projects on increasing efficiency are systematically recorded and monitored using a web-based program. The aim of the program is to be able to absorb and minimize both the unexpected negative cost developments and inflationary cost increases.


Sustainable actions in all business areas

NORMA Group considers reconciling the effects of its business activities with the needs of society as part of its corporate responsibility. The management therefore takes the principles of responsible management and sustainable conduct into consideration in making company decisions. Corporate Responsibility (CR), NORMA Group’s responsibility to society and the environment, is therefore an integral component of the corporate strategy. The CR steering committee is responsible for setting and formulating long-term goals for CR and coordinates the respective cross-divisional activities and the dialogue with the stakeholder representatives.


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