NORMA Group posts solid growth in first half of 2017

MAINTAL, Germany–(BUSINESS WIRE)–NORMA Group, a global market leader in engineered joining technology,
posted solid growth in the first half of its current fiscal year 2017.

Sales rose by 12.2 percent to EUR 519.0 million in the first half of the
year, compared to the first six months of the previous year (H1 2016:
EUR 462.8 million). Organic growth of 4.8 percent was achieved. The
acquisitions of Autoline, Lifial and Fengfan contributed 6.2 percent to
sales. Currency effects also contributed positively at 1.2 percent.

From January to June 2017, adjusted earnings before interest, taxes and
amortization of intangible assets (adjusted EBITA) increased by 9.3
percent to EUR 91.7 million, compared to the first half of the previous
year (H1 2016: EUR 83.9 million). The adjusted EBITA margin for the
period January to June of 2017 remained at a sustainable high level of
17.7 percent (H1 2016: 18.1 percent).

“The first half of 2017 went better than we initially expected,” said
Werner Deggim, CEO of NORMA Group “This is why we raised our forecast
for the full year 2017 in July. The good results in the second quarter
of 2017 confirm this assessment. Since the business picked up
significantly in all three regions, we now expect organic sales growth
of around 4 to 7 percent for 2017.”

Group sales in the second quarter of 2017 increased by 11.8 percent to
EUR 264.1 million, compared to the same quarter of the previous year (Q2
2016: EUR 236.2 million). Adjusted EBITA reached EUR 46.6 million from
April to June 2017, an increase of 6.6 percent compared to the second
quarter of 2016 (Q2 2016: EUR 43.8 million). The adjusted EBITA margin
was 17.7 percent in the second quarter of 2017 (Q2 2016: 18.5 percent).

Strong sales growth in all three regions

In the EMEA region (Europe, Middle East and Africa), NORMA
Group increased its sales by 10.7 percent in the first six months of
2017 to EUR 251.6 million, compared to the same period last year (H1
2016: EUR 227.3 million). This was due to strong organic sales growth,
as well as the acquisition-related growth from consolidating Autoline
and Lifial.

Sales in the Americas region totaled EUR 212.6 million in the
first half of 2017 (H1 2016: EUR 198.5 million), an increase of 7.1
percent. This can be attributed to the gradual recovery of the U.S.
market for commercial vehicles, agricultural and construction machinery.
Strong business with solutions for water management in the second
quarter also had a positive effect on the growth in sales. Additional
sales revenues came from the acquisition of Autoline and positive
currency effects related to the U.S. dollar.

In the Asia-Pacific region, NORMA Group generated sales growth of
48.1 percent to EUR 54.9 million from January to June 2017 (H1 2016: EUR
37.0 million). This was partly due to successful production
localizations, a high demand for joining technology, especially in the
division for customized product solutions (Engineered Joining
Technology, EJT), as well as the acquisitions of Autoline and Fengfan.

Successful completion of the Fengfan acquisition

In the second quarter of 2017, NORMA Group, after approval by the
competent authorities, successfully completed the acquisition of Fengfan
Fastener Co., Ltd. (“Fengfan”). The company had signed the purchase
agreement for 80 percent of the shares in the Chinese manufacturer of
stainless steel and plastic joining products, as well as specialty
textiles, back on March 28, 2017. The consolidation of Fengfan took
place in the second quarter of 2017. In January 2017, NORMA Group had
already acquired the Portuguese manufacturer of metal clamps Lifial –
Indústria Metalúrgica de Águeda, Lda. (“Lifial”).

Equity slightly decreased

As of the reporting date June 30, 2017, NORMA Group equity amounted to
EUR 476.0 million. This represents a slight decline of 1.6 percent,
compared to the end of 2016 (Dec. 31, 2015: EUR 483.6 million). The
equity ratio was at 36.0 percent at the end of the second quarter of
2017 (Dec. 31, 2016: 36.2 percent). This was due to the dividend payment
totaling EUR 30.3 million in May 2017, as well as due to effects arising
from the acquisition of Fengfan. Net debt including hedging instruments
increased by 7.5 percent to EUR 423.9 million as of June 30, 2017,
compared to the end of the previous year (Dec. 31, 2016: EUR 394.2
million). That was influenced by payments for the dividend, as well as
for the acquisitions.

Adjusted outlook for fiscal year 2017 confirmed

On July 13, 2017, NORMA Group increased its sales outlook for fiscal
year 2017 on the basis of the preliminary, unaudited figures for the
second quarter of 2017, as well as the expected consolidated sales
revenues by the end of the year. NORMA Group confirms this forecast with
the final figures for the second quarter of 2017. For 2017 as a whole,
the Management Board expects organic growth of around 4 to 7 percent
(previous outlook: “moderate organic growth of around 1 to 3 percent”).
The Management Board also expects the acquisitions of Autoline, Lifial
and Fengfan to contribute approximately EUR 55 million to group sales
(previous outlook: “approximately EUR 45 million”). In 2017, NORMA Group
aims to achieve a sustainable adjusted EBITA margin of more than 17.0
percent (2016: 17.6 percent, 2015: 17.6 percent, 2014: 17.5 percent).

Including temporary workers, NORMA Group employed a total staff of 7,414
on June 30, 2017. This represents an increase of 750 employees, compared
to the end of the previous year (December 31, 2016: 6,664 employees).
This was due in particular to the acquisitions of Lifial and Fengfan in
the first half of 2017.

Additional information is available from NORMA Group’s Investor
Relations section at www.investors.normagroup.com.
Please visit www.normagroup.com/Images
for press photos.

Upcoming events

The publication of the financial results for the third quarter of fiscal
year 2017 is scheduled for Nov. 8, 2017.

Disclaimer

This press release contains certain future-oriented statements.
Future-oriented statements include all statements which do not relate to
historical facts and events and contain future-oriented expressions such
as “believe,” “estimate,” “assume,” “expect,” “forecast,” “intend,”
“could,” or “should” or expressions of a similar kind. Such
future-oriented statements are subject to risks and uncertainties since
they relate to future events and are based on the company’s current
assumptions, which may not in the future take place or be fulfilled as
expected. The company points out that such future-oriented statements
provide no guarantee for the future and that the actual events including
the financial position and profitability of NORMA Group SE and
developments in the economic and regulatory fundamentals may vary
substantially (particularly on the down side) from those explicitly or
implicitly assumed in these statements. Even if the actual assets for
NORMA Group SE, including its financial position and profitability and
the economic and regulatory fundamentals, are in accordance with such
future-oriented statements in this press release, no guarantee can be
given that this will continue to be the case in the future.

Contacts

NORMA Group SE
Alexandra Lipkowski
Group Communications
Phone:
+49 (0)6181 – 6102 747
E-Mail: [email protected]
or
Andreas
Trösch
Investor Relations
Phone: +49 (0)6181 – 6102 741
E-Mail:
[email protected]