Nabaltec AG — Interim / Quarterly Report 2022

May 31, 2022

21 Q1 OUR KNOW-HOW FOR YOUR SAFETY

INTERIM REPORT 1/2022

NABALTEC GROUP KEY FIGURES

FOR THE PERIOD FROM 1 JANUARY TO 31 MARCH 2022

in EUR million	03/31/2022 (IFRS)	03/31/2021 (IFRS)	Change
Revenues
Total revenues	54.8	46.0	19.1%
thereof
Functional Fillers	36.9	32.3	14.2%
Specialty Alumina	17.9	13.7	30.7%
Foreign share (%)	74.0	74.5
Employees 1 (number of persons)	483	485	–0.4%
Earnings
EBITDA	10.4	7.1	46.5%
EBIT 2	7.1	3.9	82.1%
Consolidated result after taxes	4.7	2.4	95.8%
Earnings per share (EUR)	0.53	0.27	96.3%
Financial position
Cash flow from operating activities	12.4	10.0	24.0%
Cash flow from investing activities	–1.5	–1.8	–16.7%
Assets, equity and liabilities	03/31/2022	12/31/2021
Total assets	231.9	220.7	5.1%
Equity	101.7	96.5	5.4%
Non-current assets	121.3	122.5	–1.0%
Current assets	110.6	98.2	12.6%

¹ on the reporting date 31 March, including trainees

² thereof non-recurring effects in the amount of EUR –1.3 million in the previous year

NABALTEC AG

Nabaltec AG, with registered office in Schwandorf, a chemicals business which has received multiple awards for innovativeness, manufactures, develops and distributes highly specialized products based on aluminum hydroxide and aluminum oxide on an industrial scale through its product segments, "Functional Fillers" and "Specialty Alumina."

REVENUES AS OF 03/31 IN EUR MILLION

2018	— 45.2
2019	— 48.5
2020	— 45.4
2021	— 46.0
2022	— 54.8

EBIT AS OF 03/31 IN EUR MILLION

OPERATING CASH FLOW AS OF 03/31 IN EUR MILLION

TO OUR SHAREHOLDERS

CONSOLIDATED INTERIM FINANCIAL STATEMENTS (IFRS)

• Foreword of the CEO
• Nabaltec share

CONSOLIDATED INTERIM MANAGEMENT REPORT

• Course of business
• Employees
• Outlook

• Report on opportunities and risks

• Statement of comprehensive income

• Balance sheet
• Cash flow statement
• Statement of changes in shareholders' equity
• Segment reporting
• Notes

FURTHER INFORMATION

• Financial calendar 2022 and contact
• Imprint

OUR PRODUCT SEGMENTS (Q1/2022)

FUNCTIONAL FILLERS

In the product segment "Functional Fillers," Nabaltec produces highly specialized aluminum hydroxide-based products for a wide variety of applications, and is among the leading manufacturers in the world in this area. In addition to current market trends, the development of eco-friendly flame retardant fillers and functional additives is driven above all by the specific requirements of its customers – an example is the relatively young market segment battery for applications in electromobility. Nabaltec assesses itself as one of the world's leading manufacturers of coating materials for separator films based on boehmite.

SPECIALTY ALUMINA

In the product segment "Specialty Alumina," Nabaltec manufactures innovative materials for a wide variety of industries and applications based on aluminum oxide. The company is constantly investing in optimizing its production facilities, in innovative technologies and in improving production processes in order to enable the company to consistently supply tailor-made qualities which meet customers' needs.

EUR 7.3 MILLION EBITDA

EUR 4.9 MILLION EBIT

EUR 17.9 MILLION REVENUES

EUR 3.1 MILLION EBITDA

EUR 2.2 MILLION EBIT

SUSTAINABLE PRACTICES

Nabaltec products have an extremely diverse range of applications and are the preferred choice whenever utmost quality, safety, eco-friendliness and durability are required. The combination of these characteristics creates outstanding prospects for growth for Nabaltec's various specialty chemical products and is the basis for the company's many years of growing financial success.

Beyond economic aspects, however, Nabaltec also attaches particular importance to ecological and social responsibility. Over the years, a certified environmental management system, an occupational health and safety management system and an energy management system have been introduced.

EMPLOYEES

Sustainable employee development is important to Nabaltec AG in order to be prepared for future personnel challenges and in order to position itself as an attractive employer. As a family-friendly company which has been recognized multiple times, Nabaltec is committed to promoting young talent and values work/life balance.

INNOVATIONS

Nabaltec AG is regularly awarded national and international prizes and distinctions for innovation. 2022, for example, the company received once again and for the forth time in a row the "Best Managed Companies Award" for outstandingly managed mid-sized companies, due in part to its highly innovative practices.

REVENUE SHARES Q1/2022

CONTACT IR Heidi Wiendl-Schneller E-mail: InvestorRelations@nabaltec.de

NABALTEC AG ON THE INTERNET

www.nabaltec.de/en

The Management Board of Nabaltec AG from left to right: Günther Spitzer, Johannes Heckmann (CEO), Dr. Alexander Risch

Nabaltec increases revenues by 19.1% to EUR 54.8 million

We are being confronted with one crisis after another: with the coronavirus pandemic still far from over, the war in Ukraine is causing unimaginable suffering in Europe. This has created a drastic additional burden for the economy, which was already contending with a tense energy and commodities market. Global supply chains are being put to the test once again, due in no small part to renewed lockdowns in China. Despite this difficult environment, Nabaltec AG was able to deliver very stable performance in the first quarter, with revenues actually increasing by 19.1%, to EUR 54.8 million and EBIT up from EUR 3.9 million to EUR 7.1 million.

Nabaltec was able to compensate for the loss of business in Russia and Ukraine

Thanks to stable performance across nearly all product ranges and regions, Nabaltec has so far been able to more than make up for the loss of its business in Russia and Ukraine. Production volume in the automotive industry has been significantly curtailed as a result of the chip shortage and supply chain disruptions, and electric vehicle production is now being affected as well. This has resulted in a temporary decrease in production of lithium ion batteries, and

therefore lower demand for our boehmite. Specifically, boehmite revenues are down by around one third compared to the previous year. This effect has prevented Nabaltec from posting even stronger performance in the first quarter of 2022. The European battery industry is continuing to grow. As a result, we are maintaining our investment in expanding boehmite production. In the first phase of this project, our annual boehmite production capacity will be raised from 10,000 tons to around 20,000 tons.

We continue to approach this investment project from a position of financial strength. In February, we successfully placed a loan against borrower's note with a volume of EUR 90 million and a value date of April 2022, a measure which allowed us to refinance our existing bank loans. Moreover, additional liquidity, combined with a strong internal financing capacity, with free cash flow of EUR 10.9 million in the first quarter of 2022 alone, have provided flexibility for well-considered investments in future growth.

Our US operations are also beginning to move in the right direction, in spite of delays as a result of the pandemic. Nashtec is once again manufacturing on a large scale, as a result of which our revenues from Nashtec climbed by 53.1% in the first quarter, to EUR 4.9 million. Naprotec also seems in line for an improvement in the second half of the year, as deliveries to customers with high volume potential are set to gradually ramp up beginning in the second half.

Nabaltec AG has been very successful so far in passing on the price increases in the energy and commodities markets to its own customers. Accordingly, price effects were the key driver of revenue growth in the first quarter. Thanks to these price increases, in combination with forward-looking inventory management, hedging of certain procurement prices, such as gas, and by working together with our suppliers, Nabaltec AG has been able to keep its EBIT margin at 12.9%, nearly even with its excellent 13.1% margin in 2021.

We can confirm our 2022 forecast despite a very burdensome environment. But at the same time, the longer-term outlook remains highly uncertain, since it is not yet clear e.g. how inflation will impact consumer demand and, by extension, how it will affect the performance of markets which are of key importance for us, such as the automotive sector, the cable industry and the construction sector. On the whole, however, developments in the first quarter have once again underscored the fact that Nabaltec is very well-positioned both to deliver stable performance despite a tough environment and to take advantage of market opportunities which may arise in the future.

Nabaltec confirms annual forecast for 2022

Schwandorf, May 2022

Yours,

JOHANNES HECKMANN CEO

Annual capacity for boehmite will be increased from 10,000 to 20,000 tons

Interim Report 1/2022 | Nabaltec AG

NABALTEC SHARE THE FIRST QUARTER OF 2022

ISIN/WKN: DE000A0KPPR7/A0K PPR SINCE 24 NOVEMBER 2006, NABALTEC SHARE HAS BEEN LISTED IN THE FRANKFURT STOCK EXCHANGE, WHERE IT IS TRADED IN THE SCALE MARKET SEGMENT.

Nabaltec share records a first-quarter high of EUR 39.60 Nabaltec share got off to an excellent start in the first quarter of 2022, gaining about EUR 4 over their 2021 closing price over the course of January and February. It reached its high for the first quarter on 3 February 2022, when it traded at EUR 39.60. The outbreak of the Russia-Ukraine conflict in February 2022 resulted in significant losses in the equities markets, and Nabaltec share was unable to escape this trend. Nabaltec share recorded its low for the first quarter on 7 March 2022, when it traded at EUR 27.70. From there, Nabaltec share began a slight uptrend over the remainder of the first quarter, climbing to a closing price of EUR 31.20 on 31 March 2022.

KEY DATA FOR NABALTEC SHARE (XETRA)

	First 3 months of 2022	Year 2021
Number of shares	8,800,000	8,800,000
Market capitalization (cutoff date, in EUR million)	274.56	312.40
Average price (in EUR)	34.18	32.27
High (in EUR)	39.60	37.80
Low (in EUR)	27.70	23.40
Closing price (cutoff date, in EUR)	31.20	35.50
Average daily turnover (in shares)	4,152	3,059
Earnings per share (in EUR)	0.53	1.85

Nabaltec share's average XETRA daily trading volume in the first three months of 2022 was 4,152 shares. In 2021 as a whole, the daily average trading volume was 3,059 shares.

Earnings per share (EPS) amounted to EUR 0.53 in the first three months of 2022. By comparison, EPS was EUR 0.27 in the first three months of 2021.

Recommendations for Nabaltec share from analysts at Baader Bank AG and Hauck Aufhäuser Lampe Privatbank AG continue to be positive. In its analysis for the first three months of 2022, Hauck Aufhäuser Lampe rated the share a "buy." The price target was EUR 42.00 as of 31 March 2022. Baader Bank rated Nabaltec share an "add" in its first-quarter analyses, with a target value of EUR 39.00. This value was confirmed once again on 29 April 2022.

The analysts' recommendations of Nabaltec share can be found online at www.nabaltec.de/en, under Investor Relations/Share.

As of 31 December 2021, the majority of Nabaltec's 8,800,000 shares continue to be held by the Heckmann and Witzany families. The Heckmann family holds 28.15% of the company's capital stock and the Witzany family holds 27.17%. The remaining 44.68% of the shares are in free float.

Earnings per share of EUR 0.53 in the first three months of 2022

CONSOLIDATED INTERIM MANAGEMENT REPORT

AS OF 31 MARCH 2022

COURSE OF BUSINESS

Consolidated revenues of EUR 54.8 million in the first three months of 2022, a new record Nabaltec AG got off to an excellent start this year, with revenues in the first quarter of 2022 up 19.1% from the same quarter of last year, for total consolidated revenues of EUR 54.8 million (Q1/2021: EUR 46.0 million), a new record for Nabaltec. The revenue growth was generated over both product segments and was realized largely through price increases.

Revenues in the "Functional Fillers" product segment amounted to EUR 36.9 million in the first quarter of 2022, up 14.2% from the same quarter of last year, when revenues came to EUR 32.3 million. Nabaltec's expectations that boehmite revenues would be down in the first half of 2022 have been confirmed, as in the fourth quarter of 2021, customers responded to the continuing supply chain problems and the unpredictable availability of various input products by ordering above their requirements and building up inventories in some products, particularly boehmite. Specifically, revenues in the boehmite product range were down 32.8% in the first quarter of 2022 from the same quarter of last year. Revenues in the "Specialty Alumina" product segment came to EUR 17.9 million in the first quarter of 2022, up from EUR 13.7 million in the same period of last year (up 30.7%).

Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to EUR 10.4 million in the first three months of 2022, up 46.5% from the value of EUR 7.1 million posted in the same quarter of last year. The EBITDA margin (EBITDA as a percentage of total performance) increased from 16.1% in the same quarter of last year to 18.9%.

Operating profit (EBIT) came to EUR 7.1 million in the reporting quarter, compared to EUR 3.9 million in the same period of last year (up 82.1%). Earnings in the previous year were weighed down by a negative non-recurring effect in the amount of EUR 1.3 million. EBIT margin (EBIT as a percentage of total performance) climbed from 8.9% in the same quarter of last year to 12.9% in the reporting period.

Net financial income amounted to EUR –0.5 million in the first quarter of 2022, nearly even with the previous year quarter.

Earnings before taxes amounted to EUR 6.7 million, compared to EUR 3.5 million in the same quarter of last year. Consolidated after-tax earnings came to EUR 4.7 million, up from EUR 2.4 million in the same period of last year (up 95.8%). This corresponds to earnings per share of EUR 0.53 in the first three months of 2022 (same quarter of last year: EUR 0.27).

Nabaltec's total performance in the first three months of the year was up 25.2% from the same period of last year, climbing from EUR 44.0 million to EUR 55.1 million. Inventories were raised slightly in the first quarter of 2022, while the first quarter of last year saw significant cuts in inventories.

Cost of materials increased to EUR 26.2 million in the first quarter of 2022, up EUR 4.2 million from the same period of last year, and was driven primarily by higher costs for raw materials, energy and packaging materials. The cost of materials ratio (cost of materials as a percentage of total performance) was 47.5% in the first three months of 2022. Gross profit margin (gross profit as a percentage of total performance) climbed to 53.7% in the reporting quarter, from 51.8% in the same quarter of last year. With the number of employees at 483 (31 March 2021: 485 employees), personnel expenses came to EUR 9.9 million in the first quarter of 2022, up from EUR 8.7 million in the same period of last year. The personnel expense ratio (personnel expenses as a percentage of total performance) dropped to 18.0% in the first three months of 2022, down from 19.8% in the same period of last year. Depreciation came to EUR 3.2 million in the first quarter of 2022, about even with the previous year quarter (EUR 3.1 million). The depreciation ratio fell to 5.8% in the reporting period, down from 7.0% in the first three months of last year.

Other operating expenses increased to EUR 9.4 million in the first three months of 2022, up from EUR 7.0 million in the same period of last year. This was largely due to higher freight costs, an increase in repair costs and higher cost of sales. The ratio of other operating expenses to total performance was 17.1%, compared to 15.9% in the same quarter of last year.

Nabaltec's export ratio was down slightly from 2021 as a whole, from 75.5% to 74.0%, but remains high. The revenue shares of the Germany, Europe and US regions were higher, while Asian revenues were down in the first three months of the year due to lower boehmite sales in the first quarter of 2022.

Cash flow from operating activity was EUR 12.4 million in the first three months of 2022, compared to EUR 10.0 million in the first quarter of last year. Aside from higher earnings in the first quarter, this result can be attributed to lower income tax payments as well as changes in working capital.

EBIT up 82.1%, to EUR 7.1 million

Earnings per share of EUR 0.53

Export ratio at a high level, 74.0%

Spending on investments was down slightly relative to the same quarter of last year, from EUR 1.8 million to EUR 1.5 million.

As a result, free cash flow was EUR 10.9 million in the first quarter of 2022, up from EUR 8.2 million in the first three months of last year.

Nabaltec Group's cash and cash equivalents amounted to EUR 63.3 million as of 31 March 2022.

Total assets increased from EUR 220.7 million on 31 December 2021 to EUR 231.9 million (up 5.1%). Non-current assets were down slightly on the reporting date, 31 March 2022, dropping by 1.0% to EUR 121.3 million (31 December 2021: EUR 122.5 million). Current assets were up 12.6%, to EUR 110.6 million (31 December 2021: EUR 98.2 million).

Equity ratio of 43.9%

On the liabilities side of the balance sheet, equity ratio increased slightly, from 43.7% on 31 December 2021 to 43.9% on 31 March 2022. Nabaltec's equity base continues to be very strong compared to other companies in the industry. Non-current liabilities on 31 March 2022 were nearly even with their level at the end of 2021, EUR 44.7 million (31 December 2021: EUR 44.6 million). Current liabilities were up from the end of 2021, climbing from EUR 79.6 million to EUR 85.4 million, primarily due to an increase in trade payables and higher income tax liabilities.

EMPLOYEES

Trainee ratio of 7.7%

As of the reporting date, 31 March 2022, Nabaltec Group had 483 employees (including trainees). On the same date of last year, this number was 485 employees. Of this number, 467 were working in Germany. The trainee ratio was 7.7%, a traditionally high level for Nabaltec.

OUTLOOK

As of the start of the new Financial Year, most product ranges were characterized by stable demand and elevated price levels. But on the whole, there continues to be uncertainty in 2022 in connection with supply chain bottlenecks and various materials. In the "Functional Fillers" segment, fine hydroxides will remain by far the most important product range in 2022, while high value-added products will continue to gain importance in the "Specialty Alumina" product segment.

Since many of Nabaltec's customers restocked their inventories at the end of 2021 so as to be in a better position to counter the supply shortages in many areas, the year ended with a boost in sales, particularly in the boehmite product range. Moving up these purchases had the effect of inhibiting growth at the start of 2022. The importance of this product range for Nabaltec will increase significantly in the coming years, as customers expect to build up capacity for the production of coated separator film for lithium ion batteries.

Nabaltec confirms the forecast presented in the 2021 consolidated management report and expects revenue growth in a range from 10% to 12% in 2022. Nabaltec expects the EBIT margin to also fall in a range from 10% to 12%. This forecast is based on the assumption of improving conditions in the economy and in the sectors of relevance for Nabaltec despite the ongoing war in Ukraine. It remains unclear how Nabaltec's business performance will be affected by the mounting geopolitical risks and the possible spread of the Omicron variant of the coronavirus. In the event of an escalation and/or spread of the Russia-Ukraine conflict and the associated economic disruptions, a negative impact on Nabaltec's financial, earnings and liquidity position cannot be ruled out.

Otherwise, the statements made in the forecast report from the 2021 consolidated management report retain their validity.

REPORT ON OPPORTUNITIES AND RISKS

In general, no significant changes were evident in the first quarter of 2022 with regard to the risk situation presented in the 2021 consolidated management report.

The war between Russia and Ukraine which broke out in February 2022 will have only a limited direct impact on Nabaltec's operations. However, possible consequences of this conflict, such as declining economic growth, rising energy costs and the threat of a gas embargo, may have a negative impact on Nabaltec's financial, earnings and liquidity position. The economic impact is highly dependent on the future development of the war and is therefore subject to considerable uncertainty. Given the fast-changing nature of the situation, a reliable estimation of the scope and duration of the conflict's impact cannot be made at this time.

Schwandorf, 13 May 2022

The Management Board

Nabaltec expects revenue growth and an EBIT margin of 10% to 12% in 2022

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIOD FROM 1 JANUARY TO 31 MARCH 2022

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

in TEUR	01/01/ – 03/31/2022	01/01/ – 03/31/2021
Revenues	54,833	45,991
Change in inventories of finished goods and work in progress	187	–2,119
Own work capitalized	121	136
Total performance	55,141	44,008
Other operating income	627	812
Cost of materials	–26,173	–22,031
Gross earnings	29,595	22,789
Personnel expenses	–9,866	–8,663
Depreciation	–3,228	–3,135
Other operating expenses	–9,367	–7,042
Operating profit (EBIT) 1	7,134	3,949
Interest and similar income	32	31
Interest and similar expenses	–493	–449
Earnings before taxes (EBT)	6,673	3,531
Taxes on income	–1,999	–1,151
Net after-tax earnings	4,674	2,380
Earnings per share (in EUR)	0.53	0.27

¹ thereof non-recurring effects in the amount of EUR –1.3 million in the previous year

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

in TEUR	01/01/ – 03/31/2022	01/01/ – 03/31/2021
Net after-tax earnings	4,674	2,380
Items which may be reclassified to profit and loss in the future
Currency translation (after taxes)	514	971
Net income from hedge accounting (after taxes)	1	3
Total	515	974
Items which will not be reclassified to profit and loss in the future
Actuarial gains and losses	0	0
Total	0	0
Other comprehensive income	515	974
Total comprehensive income	5,189	3,354

CONSOLIDATED BALANCE SHEET

AS OF 31 MARCH 2022

ASSETS

in TEUR	03/31/2022	03/31/2021
Non-current assets	121,278	122,516
Intangible assets
Concessions, proprietary rights and similar rights and assets, as well as licenses to such rights and assets (including advance payments)	435	396
Property, plant and equipment	118,657	119,904
Land, leasehold rights and buildings, including buildings on unowned land	36,376	36,462
Technical equipment and machinery	73,207	74,918
Other fixtures, fittings and equipment	3,886	3,792
Advance payments and assets under construction	5,188	4,732
Financial assets	78	78
Shares in affiliated companies	78	78
Deferred tax assets	2,108	2,138
Current assets	110,580	98,190
Inventories	30,997	33,935
Raw materials and supplies	18,994	22,532
Work in process	1,314	1,241
Finished goods and merchandise	10,689	10,162
Other assets and accounts receivable	16,276	12,049
Trade receivables	8,981	5,457
Receivables from income taxes	432	432
Other assets	6,863	6,160
Cash and cash equivalents	63,307	52,206
TOTAL ASSETS	231,858	220,706

LIABILITIES

03/31/2022	03/31/2021
101,683	96,494
8,800	8,800
47,029	47,029
9,699	9,699
46,380	30,119
4,674	16,261
–14,899	–15,414
	44,587 43,269
	44,731 43,400

Current liabilities	85,444	79,625
Accounts payable from income taxes	5,577	3,677
Other provisions	493	485
Accounts payable to banks	59,590	59,268
Trade payables	12,915	10,681
Other accounts payable	6,869	5,514

Other provisions 1,331 1,318

TOTAL LIABILITIES	231,858	220,706

CONSOLIDATED CASH FLOW STATEMENT

FOR THE PERIOD FROM 1 JANUARY TO 31 MARCH 2022

CONSOLIDATED CASH FLOW STATEMENT

in TEUR		01/01/ – 03/31/2022	01/01/ – 03/31/2021
	Cash flow from operating activity
	Earnings before taxes	6,673	3,531
+	Depreciation of fixed assets	3,228	3,135
–/+	Income/loss from the disposal of assets	0	5
–	Interest income	–32	–31
+	Interest expenses	493	449

	Net operating income before changes in working capital	10,362	7,089
+/–	Increase/decrease in provisions	53	62
–/+	Increase/decrease in trade receivables and other assets not attributable to investment or financing activity	–4,226	–2,367
+/–	Increase/decrease in inventories	2,937	3,506
+/–	Increase/decrease in trade payables and other liabilities not attributable to investment or financing activity	3,597	2,812
	Cash flow from operating activity before taxes	12,723	11,102
–	Income taxes paid	–289	–1,125

Net cash flow from operating activity	12,434	9,977

CONSOLIDATED CASH FLOW STATEMENT

in TEUR		01/01/ – 03/31/2022	01/01/ – 03/31/2021
	Cash flow from investment activity
+	Payments received from the disposal of property, plant and equipment	0	0
–	Payments made for investments in property, plant and equipment	–1,461	–1,746
–	Payments made for investments in intangible assets	–73	–49
	Net cash flow from investment activity	–1,534	–1,795
	Cash flow from financing activity
–	Interest paid	–51	–41
+	Interest received	3	2
	Net cash flow from financing activity	–48	–39
	Net change in cash and cash equivalents	10,852	8,143
	Change in funds due to changes in exchange rates	249	346
	Funds at start of period	52,206	26,354
	Funds at end of period	63,307	34,843

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

FOR THE PERIOD FROM 1 JANUARY TO 31 MARCH 2022

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

in TEUR	Subscribed capital	Capital reserve	Earnings reserve
Balance per 01/01/2021	8,800	47,029	9,699
Actuarial gains and losses	—	—	—
Currency translation	—	—	—
Net income from hedge accounting	—	—	—
Other comprehensive income	—	—	—
Net income after taxes	—	—	—
Net income	—	—	—
Balance per 03/31/2021	8,800	47,029	9,699
Actuarial gains and losses	—	—	—
Currency translation	—	—	—
Net income from hedge accounting	—	—	—
Other comprehensive income	—	—	—
Net income after taxes	—	—	—
Net income	—	—	—
Balance per 12/31/2021	8,800	47,029	9,699
Actuarial gains and losses	—	—	—
Currency translation	—	—	—
Net income from hedge accounting	—	—	—
Other comprehensive income	—	—	—
Net income after taxes	—	—	—
Net income	—	—	—
Balance per 03/31/2022	8,800	47,029	9,699

21 CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

Consolidated shareholders' equity	Other changes in equity with no effect on profit and loss	Profit carry-forward
76,835	–18,812	30,119
0	0	—
971	971	—
3	3	—
974	974	—
2,380	—	2,380
3,354	974	2,380

80,189	–17,838	32,499
1,638	1,063	—
952	952	—
409	409	—
2,424	2,424	13,881
13,881	—	13,881
16,305	2,424	13,881

96,494	–15,414	46,380
0	0	—
514	514	—
1	1	—
515	515	—
4,674	—	4,674
5,189	515	4,674
101,683	–14,899	51,054

SEGMENT REPORTING

The operative segments are consistent with the business divisions of the Nabaltec Group. The risks as well as internal organization and reporting structure are mainly determined by the differentiation of the products.

BUSINESS SEGMENTS

Nabaltec is divided into two product segments, "Functional Fillers" and "Specialty Alumina." Each segment represents a strategic business division, the products and markets of which differ from those of the other.

The product segment "Functional Fillers" produces and distributes non-halogenated flame retardant fillers for the plastics and the wire & cable industry as well as additives.

The product segment "Specialty Alumina" produces and distributes ceramic raw material and ceramic bodies for numerous applications in technical ceramics as well as the refractory industry.

PERIOD FROM 1 JANUARY – 31 MARCH 2022
in TEUR	Functional Fillers	Specialty Alumina	Nabaltec Group
Revenues
Third party revenue	36,907	17,926	54,833
Segment result
EBITDA	7,281	3,081	10,362
EBIT	4,940	2,194	7,134

PERIOD FROM 1 JANUARY – 31 MARCH 2021
in TEUR	Functional Fillers	Specialty Alumina	Nabaltec Group
Revenues
Third party revenue	32,264	13,727	45,991
Segment result
EBITDA	4,451	2,633	7,084
EBIT	2,174	1,775	3,949

ABRIDGED CONSOLIDATED NOTES

FOR THE PERIOD FROM 1 JANUARY TO 31 MARCH 2022

1. GENERAL INFORMATION

Nabaltec AG, with registered office in Schwandorf, Germany 1, was formed by Company Agreement of 14 December 1994 with the corporate name Nabaltec GmbH and registered office in Schwandorf (entered into the Commercial Register of the Local Court of Amberg under Commercial Register No. B 3920). It acquired the specialty oxides business of VAW aluminium AG in 1995 and was transformed into a joint-stock company in 2006.

The corporate purpose pursuant to § 2 of the Articles of Association of Nabaltec AG is the manufacture of products based on mineral raw materials, particularly aluminum hydroxide and aluminum oxide, and the distribution of those products.

The shares of Nabaltec AG are listed in the Open Market (Scale) segment of the Frankfurt Stock Exchange since 24 November 2006.

2. BASIS OF PREPARATION

The consolidated financial statements of Nabaltec AG as of 31 March 2022 were prepared with due regard to all International Financial Reporting Standards (IFRS), International Accounting Standards (IAS) and interpretations of the International Financial Reporting Interpretations Committee (IFRIC) and of the Standing Interpretations Committee (SIC) recognized by the European Union and applicable to the financial year.

The interim financial statements of Nabaltec AG for the period from 1 January to 31 March 2022 were prepared in conformance with IAS 34, "Interim Financial Reporting," as a shorter financial report. The shorter financial statements do not contain all information prescribed for the financial statements of the financial year and should be read in conjunction with the consolidated financial statements as at 31 December 2021.

The interim financial statements encompass the period from 1 January to 31 March 2022.

The consolidated financial statements are prepared in euro (EUR). Unless stipulated otherwise, all values are rounded up or down to the nearest thousand euro (TEUR) in accordance with the commercial rounding practice. Please note that differences can result from the use of rounded amounts and percentages.

¹ Nabaltec AG, Alustraße 50 – 52, 92421 Schwandorf, Germany

The presentation in the balance sheet differentiates between current and non-current assets and liabilities, some of which are broken down further by their respective maturities in the notes to the financial statements.

The consolidated statement of comprehensive income has been prepared in accordance with the total expenditure format.

The interim financial statements have not been audited or reviewed by the auditor.

SCOPE OF CONSOLIDATION

The scope of consolidation of Nabaltec AG as of 31 March 2022 has not changed compared to the consolidated financial statements as of 31 December 2021. The consolidated financial statements include the separate financial statements of Nabaltec AG, Schwandorf, as the parent company and its subsidiaries Nashtec LLC, Corpus Christi (USA), Nabaltec USA Corporation, Corpus Christi (USA), Naprotec LLC, Chattanooga (USA), and Nabaltec (Shanghai) Trading Co., Ltd., Shanghai (China).

NEW ACCOUNTING PROVISIONS

All accounting and valuation methods used in the preparation of the abridged financial statements correspond to the methods applied in the most recent consolidated financial statements as of 31 December 2021.

In addition to the Standards and Interpretations used on 31 December 2021, the following Standards and Interpretations were used for the first time and had no impact on the interim financial statements:

• Amendments to IFRS 3 (Business Combinations) Reference to the Framework
• Amendments to IAS 16 (Property, Plant and Equipment) Revenue recognition before an asset is in its working condition
• Amendments to IAS 37 (Provisions, Contingent Liabilities and Contingent Assets) Onerous contracts in respect of costs to perform a contract
• Omnibus Standard to Improve Various International Financial Reporting Standards (2018–2020)

Until the publication of this interim financial statement, IASB and IFRIC have not published further changes to standards.

3. NOTES TO THE CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

REVENUES

We refer to the segment reports with respect to the revenue by product area. Information on revenue performance may be found in the management report.

4. NOTES TO THE CONSOLIDATED BALANCE SHEET

PROPERTY, PLANT AND EQUIPMENT

The additions to property, plant and equipment in the first three months of 2022 were the result of investments, primarily in technical equipment and machinery to expand capacity and for further process optimization.

FINANCIAL ASSETS

Financial assets consist of the 100% interest in Nabaltec Asia Pacific K.K. The subsidiary is not fully consolidated on grounds of materiality. In the absence of an active market, the shares are measured at cost.

The change in the shareholders' equity of Nabaltec AG is presented in the consolidated statement of changes in equity.

CURRENT AND NON-CURRENT LIABILITIES

LIABILITIES TO BANKS

Liabilities to banks largely entail credits borrowed at standard market interest rates. The market value corresponds to the book value.

Nabaltec AG has successfully issued a bonded loan with a volume of TEUR 90,000 and a value date of April 2022. The proceeds from the issue will be used to refinance existing bonded loans in the amount of TEUR 39,000 and a bilateral bank loan in the amount of TEUR 20,000, due in April 2022. In addition, the funds will be used to finance further growth projects, in particular to expand capacity in the boehmite product range for lithium ion batteries. The volume is divided into fixed and variable tranches with maturities of five and seven years. The bonded loan was placed without broad marketing as part of a private placement with the participation of five investors.

5. OTHER DISCLOSURES

OTHER FINANCIAL OBLIGATIONS

CONTINGENT LIABILITIES AND LEGAL LIABILITY RELATIONS

As of the cutoff date, there were no contingent liabilities, legal liability relations or other legal disputes for which provisions had not been previously made.

RELATED PARTY TRANSACTIONS

The group of related persons and enterprises did not change compared to the consolidated financial statements as at 31 December 2021.

No transactions with related persons and enterprises took place in the first three months of 2022. Such transactions are conducted at standard market prices and conditions.

SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

The Management has decided to dissolve the subsidiary Nabaltec Asia Pacific K.K., which is not fully consolidated. In the future, expansion plans in the Southeast Asia region in the boehmite product range for lithium ion batteries will be driven directly by Nabaltec AG.

Schwandorf, 13 May 2022

The Management Board

FINANCIAL CALENDAR 2022

Annual General Meeting	29 June
Interim Report 2/2022	25 August
Baader Investment Conference	22 September
Interim Report 3/2022	24 November
Deutsches Eigenkapitalforum	28 November

CONTACT

Heidi Wiendl-Schneller

Nabaltec AG Alustraße 50 – 52 92421 Schwandorf Germany

Phone: +49 9431 53-202 Fax: +49 9431 53-260 E-mail: InvestorRelations@nabaltec.de

Frank Ostermair

Better Orange IR & HV AG Haidelweg 48 81241 Munich Germany

Phone: +49 89 8896906-14 Fax: +49 89 8896906-66 E-mail: nabaltec@better-orange.de

IMPRINT

Publisher

Nabaltec AG Alustraße 50 – 52 92421 Schwandorf Germany

Phone: +49 9431 53-202 Fax: +49 9431 53-260 E-mail: info@nabaltec.de Internet: www.nabaltec.de/en

Text

Nabaltec, Schwandorf, Germany Better Orange, Munich, Germany

Concept & Design Silvester Group, www.silvestergroup.com

Photos

Adobe Stock, freepik, Clemens Mayer, Strandperle

Statements relating to the future

This interim report contains statements relating to the future which are based on the Management Board's current estimations and prognosis as well as on information currently available. These statements relating to the future are not to be understood as guarantees of the predicted future developments and results.

The future developments and results are rather dependent on a number of risks and uncertainties and are based on assumptions which possibly may prove to be false. We do not accept any obligation to update these statements relating to the future.

Rounding

Due to computational reasons, rounding differences may appear in the percentages and figures in the tables, graphics and text of this report.

Company headquarters of Nabaltec AG, Schwandorf

Nabaltec AG

Alustraße 50 – 52, 92421 Schwandorf, Germany Phone: +49 9431 53-0, Fax: +49 9431 53-260 E-mail: info@nabaltec.de, www.nabaltec.de/en