Norma Group (NOEJ) Strategy update summary

Financial targets through 2031

• FY26–31 targets: net sales CAGR of 1%–3%, adjusted EBIT margin above 10% and cash conversion above 70%.

• Targets assume standalone organic development, comparable or stable FX, stable geopolitical and energy/raw-material conditions, and continued personnel-cost inflation; FY31 CapEx below 5% of net sales and cash taxes ~25% of adjusted EBT.

• Cash conversion is free cash flow divided by adjusted EBIT; disciplined working capital and CapEx support the target.

• Midterm ROCE ambition is above WACC; net debt / adjusted EBITDA target is up to 1.5x.

Business and market priorities

• Mobility & New Energy is positioned as a resilient core with margin-improvement potential; Industry Applications is the profitable organic-growth business. The two represented ~70% and ~30% of 2025 net sales, respectively.

• Current sales mix is 50% passenger vehicles, 20% commercial vehicles and 30% Industry Applications; IA is expected to increase to 36%–38% or more of sales.

• IA focus-industry addressable markets are expected to grow ~12% annually in 2026–31, versus ~3% for the base business; focus industries are expected to rise from 25% of IA sales in 2026 to 34% in 2031.

• Mobility & New Energy addressable markets are projected to grow ~1% p.a. for passenger vehicles and ~2% for commercial vehicles; content is comparable in ICE and BEV applications, with added hybrid potential.

• Growth applications include data centers, battery energy storage, heat pumps and household appliances, building on existing engineering capabilities and capacity.

Commercial execution and products

• Sales Push targets profitable volume growth, improved mix and pricing, customer penetration, channel expansion and stronger application-led solutions.

• Mobility & New Energy recorded €157m cumulative lifetime sales wins in 9M 2026, up 45% YoY; wins comprised 80% renewals and 20% new business.

• A EUR 157m lifetime passenger-vehicle program was won profitably using existing capacity, with 80% renewal and 20% growth; it was the largest PV program won to date and allocated to one Serbian plant.

• Dry Break Valve technology transferred from automotive to BESS, displacing a competitor; 2026 serial orders accelerated implementation from January 2027 to August 2026.

• Product development includes metal and all-plastic universal quick disconnects for data centers and a plastic battery-cooling system targeting 50% lower weight and 20% better cost than metal systems.