Vision 2025

Our strategy and Vision 2025 focuses on profitable growth and the expansion of our market and technology leadership in joining and fluid handling technology. We are aiming at becoming the market leader in connection and fluid handling technology for existing and future markets.

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Key Strategic Objectives

Increase market share through further localization

Increasing the Company’s market share is the primary objective of NORMA Group. In each regional segment and in both sales divisions (EJT and DS), the focus is on the ongoing profitable expansion of business activities and increasing market share. At the heart of NORMA Group’s growth strategy is the expansion of its product portfolio and regional presence, as well as the opening up of new end markets. The continuous expansion of application solutions for current EJT customers, the identification and acquisition of new EJT customers, the deepening of the customer base in Distribution Services (DS) and the identification of new markets with attractive growth potential will all be used to expand business activities and further strengthen the Group’s international presence. In identifying new end markets, NORMA Group places a strategic focus on niche markets with attractive margins, advanced products, strongly growing sales potential and a fragmented competitive structure. The goal is to achieve broad diversification in the end markets through the targeted transfer of knowledge to new, high-growth industries. This will strengthen the sustainable earnings profile, the independence from economic influences and the stability of the business. Global megatrends such as climate change and resource scarcity offer NORMA Group attractive growth potential. The strategic focus is therefore on future-oriented applications in the fields of water management and electromobility.

Diversification of 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 or electromobility. These 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. 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 350 engineers and developers are constantly working on developing new products and optimizing the currently used processes and systems. An important focus here is on the development of solutions for electromobility. This offers NORMA Group numerous opportunities, particularly in the field of vehicle thermal management. In order to sustainably strengthen its innovative strength, the Group plans to invest around 5% of its EJT sales in research and development activities each year.

Although the joining products that NORMA Group sells make up a relatively small value proportion of the final product, they are often mission-critical. Sticking to the highest quality standards and stringent quality management throughout the entire Group therefore play a crucial role. A strong brand strategy geared toward regional growth targets, as well as ensuring first-class service quality and product availability at all times, are also important success parameters. NORMA Group ensures this through its worldwide sales network.

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 joining technology market very closely 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 it wants to expand through further acquisitions in this area.

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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 DS) 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 our M&A activities is always on companies that help to realize our diversification objectives and/or to generate synergies. The preservation of growth and high profitability also play an important role.

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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.

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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 Distribution Services 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.

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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.

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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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