Two complementary distribution channels in three strategic business units

NORMA Group supplies its customers via two distribution channels in three strategic business units (shown in brackets below):

 

Standardized Joining Technology – SJT (Water Management and Industry Applications): 
via wholesalers and sales representatives

 

and

 

Engineered Joining Technology – EJT (Mobility & New Energy): directly to original equipment manufacturers

 

In the two strategic business units Water Management and Industry Applications, NORMA Group markets a broad portfolio of high-quality, standardized branded products via the Standardized Joining Technology (SJT) distribution channel. In addition to numerous solutions in the field of storm water management, this also includes the field of landscape irrigation and connecting components for infrastructure solutions in the water sector. In addition to its own global distribution network, the Company also relies on sales representatives, distributors and importers as multipliers. NORMA Group’s customers include distributors, specialized wholesalers, do-it-yourself (DIY) stores and applications in smaller industries, and also OEM customers in the spare parts market. The brands ABA®, Breeze®, Clamp-All®, CONNECTORS®, FISH®, Gemi®, Kimplas®, NDS®, NORMA®, Raindrip®, R.G.RAY®, Serflex®, TRUSTLENE® and TORCA® represent technical expertise, high quality and delivery reliability.

The strategic business unit Mobility & New Energy in the Engineered Joining Technology (EJT) distribution channel comprises sophisticated, individually customized joining technology, and is characterized especially by close development partnerships with original equipment manufacturers (OEMs). NORMA Group’s central development departments and local resident engineers work together with the customer during multi-year project phases to develop solutions for specific industrial challenges. Due to the constant proximity to customers, NORMA Group’s engineers gain comprehensive knowledge and a deep understanding of the various challenges faced by their end markets and customers. As a result, they generate significant added value for customers and contribute to their economic success. Such development partnerships result in holistic product and system solutions that meet both customer demands for efficiency and performance and take aspects such as weight reduction and quick assembly times into account. The Mobility sub-segment is in turn divided into the two end markets Light Vehicles (passenger cars) and Heavy Vehicles (commercial vehicles and construction machinery). The New Energy sub-segment brings together numerous applications for the sustainable energy industry, innovative solutions for electromobility and renewable energies, for example.

By combining the provision of high-quality standardized branded products via a global sales network in the areas of Water Management and Industry Applications and expertise in the development of customized solutions for original equipment manufacturers (OEMs) in the area of Mobility & New Energy, NORMA Group is not only able to achieve cross-selling effects, but also numerous synergies in the areas of purchasing, production, logistics and sales. In addition, the Group benefits from significant economies of scale and scope due to the diversity of its product range and the high volumes. This sets the Group apart from competitors who predominantly specialize in individual product segments or regions.

The constant focus in the areas of Water Management and Industry Applications as well as Mobility & New Energy, which have been defined as strategically important since 2020, is intended to ensure an optimized focus on the respective end markets and customers with their specific requirements. For reasons of better transparency, NORMA Group will present its business in the EJT and SJT distribution channels in the above-mentioned relevant customer industries with effect from 2024. Against this backdrop, the EJT distribution channel was renamed Mobility & New Energy at the start of 2024. In addition, from now on, the SJT distribution channel, which comprises the strategic business units Water Management and Industry Applications, will be divided into these two relevant areas.

From the beginning of fiscal year 2024, NORMA Group also plans to present key sales figures for the three strategically important areas of Water Management, Industry Applications and Mobility & New Energy for the first time. From the 2024 fiscal year, the presentation of sales figures in these three strategically important areas will replace the previous presentation of sales development in the two historically known distribution channels EJT and SJT. During the transition phase, the historical distribution channels will continue to be named at the same time as the strategic business units and are expected to take a back seat in the coming years. At the same time, NORMA Group plans to fully focus its reporting on the three strategic business units in the future. The segmentation into the EMEA, Americas and Asia-Pacific regions will continue unchanged.

The resulting changes to the reporting-related organizational structure of NORMA Group SE are outlined below.

 

Product portfolio

NORMA Group’s products can be fundamentally divided into three main product categories across all business units based on the technology used in the manufacturing process: WATER (applications in the area of water management), FLUID (fluid systems and connectors), and FASTEN (fastening clamps and joining elements made of metal).

The WATER product portfolio includes solutions for applications in the fields of storm water management and landscape irrigation, as well as joining components for water infrastructure solutions.

FLUID products consist of single or multiple layer thermoplastic plug-in connectors and fluid systems which, thanks to their special characteristics, reduce assembly times, ensure the reliable flow of liquids or gases and occasionally replace conventional products such as elastomer hoses. NORMA Group’s FLUID products are already being used in many thermal management systems in hybrid and electric vehicles, and will also be used in heat pumps in the future.

The FASTEN product group includes a wide range of clamp products and joining elements made of non-alloy steels or stainless steel and are mainly used to clamp and seal hoses as well as to affix metal and thermoplastic pipes.

NORMA Group’s Engineered Joining Technology is used in all applications in which pipes, tubes and other systems need to be connected. Given that joining technology is a functionally critical component in almost every industry, NORMA Group serves many different end markets. These include the drinking water and irrigation industries and agriculture. Besides the automotive, commercial vehicle and aerospace industries, other end markets comprise construction, mechanical engineering, pharmaceuticals and biotechnology. NORMA Group’s products are also used in the consumer products, such as home appliances, for example.

Although some of NORMA Group’s joining products have a low value share relative to the customer's end product, they are often functionally critical in use and decisive for the quality of the overall system. Group-wide compliance with high quality standards and stringent quality management therefore play a crucial role for NORMA Group. QUALITY MANAGEMENT. Moreover, important parameters for success include a strong brand strategy geared towards regional growth targets and the claim of ensuring first-class service quality and high availability of products. NORMA Group ensures this through its global sales network.

Legend

These contents are part of the Non-financial Group Report and were subject to a separate limited assurance examination.