DGAP-News: NORMA Group SE

NORMA Group's sales surpass EUR 1 billion for the first time

- Preliminary sales in 2017 rose by 13.7 percent compared to 2016 to EUR 1,017.1 million

- Organic sales growth at 8.6 percent

- Preliminary adjusted EBITA increased by 10.8 percent to EUR 174.5 million

- Preliminary adjusted EBITA margin remained at a high level of 17.2 percent

Maintal, Germany, February 14, 2018 - NORMA Group enjoyed significant growth in fiscal year 2017. According to preliminary and unaudited figures, sales rose by 13.7 percent to EUR 1,017.1 million in 2017 compared to the previous year (2016: EUR 894.9 million). This means NORMA Group's annual sales surpassed the one-billion-euro mark for the first time. The reasons for this growth were mainly the overall good economic situation and the high demand for reliable joining technology in important end markets in all three business regions. Global production of cars and commercial vehicles increased and the US market for commercial vehicles and agricultural machines recovered much more quickly than expected. The acquisitions of Autoline, Lifial and Fengfan also contributed to growth in 2017.

Organic growth in fiscal year 2017 was 8.6 percent. The acquisitions of Autoline, Lifial und Fengfan additionally contributed EUR 57 million to growth. Currency effects negatively impacted sales growth by 1.4 percent. Adjusted earnings before interest, taxes, depreciation and amortization of intangible assets (adjusted EBITA) rose by 10.8 percent to EUR 174.5 million in 2017 compared to the previous year (2016: EUR 157.5 million). At 17.2 percent, the adjusted EBITA margin declined slightly due to higher commodity prices, but still remained in line with the forecast of over 17 percent (2016: 17.6 percent). According to preliminary figures, the business thus developed in 2017 in line with the revised expectations published in January 2018 of organic sales growth of around 8.5 percent. Net debt, including hedging instruments, sank to EUR 344.9 million as of December 31, 2017 (December 31, 2016: EUR 394.2 million).

"Surpassing the one-billion-euro mark is a milestone in NORMA Group's history of growth," said Bernd Kleinhens, Chairman of the Management Board of NORMA Group. "2017 was a very strong year for us, with continued growth in all regions. Our investment in research and development, plants, test laboratories and systems worldwide will position us well for future growth and we are optimistic that we can continue our success."

Sales increase by 17.7 percent in the fourth quarter of 2017

According to preliminary and unaudited figures, sales rose by 17.7 percent in the fourth quarter of 2017 to EUR 253.6 million compared to the fourth quarter of 2016 (Q4 2015: EUR 215.5 million). The acquisitions additionally contributed EUR 12.8 million to growth in the fourth quarter of 2017. Adjusted EBITA rose by 15.0 percent to EUR 40.1 million from October to December 2017 compared to the fourth quarter of 2016 (Q4 2016: EUR 34.9 million). The adjusted EBITA margin was 15.8 percent (Q4 2016: 16.2 percent). The lowering of the US corporate tax rate from 35 percent to 21 percent led to one-time deferred tax income (which has no cash impact) of EUR 33.9 million in the fourth quarter of 2017. This one-time effect will not be included in the adjusted result for the period and therefore not shown in adjusted earnings per share.

NORMA Group - preliminary figures for fiscal year 2017*

*The results contained in this press release are preliminary and have not yet been approved by the Supervisory Board or been reviewed by an external auditor.
**Adjustment in 2017 for integration costs (EUR 2.9 million), step-up effects from purchase price allocations (EUR 1.1 million); reimbursement of transaction taxes (EUR -0.5 million) and depreciation from purchase price allocations (EUR 4.2 million); 2016 adjustment for depreciation from purchase price allocations (EUR 2.3 million) and other expenses, mostly related to the acquisition of Autoline (EUR 4.8 million, mainly other operating expenses)
***Net debt including hedging instruments (hedging instruments in the amount of: 2017: EUR 1.4 million; 2016: EUR 2.2 million; 2015: EUR 3.4 million)

For further information, please refer to the Investor Relations section at www.normagroup.com/IR.
Press photos are available from our platform on www.normagroup.com/images.

Upcoming events
A comprehensive report with more detailed explanations will be provided upon presentation of the final financial figures for 2017 on March 21, 2018.

Contact
Alexandra Lipkowski

Group Communications
Tel.: +49 (0)6181 - 6102 747
E-Mail: alexandra.lipkowski@normagroup.com

Andreas Trösch
Investor Relations
Tel: +49 (0)6181 - 610 2741
E-Mail: andreas.troesch@normagroup.com

About NORMA Group
NORMA Group is a global market leader in engineered joining technology. The company manufactures a wide range of innovative connecting solutions and water management technology offering more than 35,000 products to customers in 100 countries with around 7,600 employees. NORMA Group helps its customers and business partners react to global challenges such as climate change and increasing scarcity of resources. NORMA Group joining products can be found in vehicles and trains, ships and aircraft, buildings and water management as well as in applications for the pharmaceutical and biotechnology industry. According to preliminary, unaudited figures, the company generated sales of around EUR 1.02 billion in 2017. NORMA Group operates a global network of 27 production facilities as well as numerous sales and distribution sites across Europe, the Americas, and Asia-Pacific. NORMA Group has its headquarters in Maintal, Germany. NORMA Group SE is listed on the German stock exchange (Prime Standard) and included in the MDAX index.

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.