Nabaltec AG — Interim / Quarterly Report 2022

Aug 25, 2022

21 Q1 OUR KNOW-HOW FOR YOUR SAFETY

INTERIM REPORT 2/2022

NABALTEC GROUP KEY FIGURES

FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022

in EUR million	06/30/2022 (IFRS)	06/30/2021 (IFRS)	Change
Revenues
Total revenues	110.7	93.9	17.9%
thereof
Functional Fillers	75.4	65.6	14.9%
Specialty Alumina	35.3	28.4	24.3%
Foreign share (%)	73.9	74.4
Employees 1 (number of persons)	488	479	1.9%
Earnings
EBITDA	22.2	16.8	32.1%
EBIT 2	15.7	10.5	49.5%
Consolidated result after taxes	10.3	6.7	53.7%
Earnings per share (EUR)	1.17	0.76	53.9%
Financial position
Cash flow from operating activities	19.1	20.4	–6.4%
Cash flow from investing activities	–4.1	–3.5	17.1%
Assets, equity and liabilities	06/30/2022	12/31/2021
Total assets	270.6	220.7	22.6%
Equity	106.9	96.5	10.8%
Non-current assets	136.4	122.5	11.3%
Current assets	134.2	98.2	36.7%

¹ on the reporting date 30 June, 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 06/30 IN EUR MILLION

2018	— 91.8
2019	— 97.4
2020	— 81.8
2021	— 93.9
2022	— 110.7

EBIT AS OF 06/30 IN EUR MILLION

OPERATING CASH FLOW AS OF 06/30 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

FIRST HALF OF 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 15.8 MILLION EBITDA

EUR 11.0 MILLION EBIT

EUR 35.3 MILLION REVENUES

EUR 6.4 MILLION EBITDA

EUR 4.7 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 FIRST HALF OF 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

Business of Nabaltec is proving to be very robust in a difficult geopolitical and economic environment

The challenges and uncertainties of geopolitics, the global economy, inflation, global supply chains, and raw material and energy prices have increased further in recent months. In this difficult environment, Nabaltec's business continued to be very robust in the second quarter of 2022. In the year to date, we have succeeded in keeping sales volumes stable with an improved product mix and implementing the necessary price increases.

Revenue in the first half of 2022 increased by 17.9% to EUR 110.7 million

Revenue in the second quarter increased by 16.7% to EUR 55.9 million. In total, we achieved a revenue increase of 17.9% to EUR 110.7 million in the first half of 2022. With the exception of the boehmite product range, all product ranges exceeded their respective revenues from the previous year. Due to the continuing severely disrupted supply chains in the automotive industry, sales volumes of boehmite for the battery industry were around 25% lower than in the same period of the previous year. Operating profit (EBIT) improved to EUR 15.7 million in the first half of 2022, corresponding to an EBIT margin (EBIT as a percentage of total performance) of 14.0%.

Due to the very sound business development in the first half of the year, we are adjusting our previous revenue forecast from the beginning of the year for Financial Year 2022 upwards. We now expect revenue growth in a range from 12% to 14% (previously 10% to 12%). Despite significantly rising raw material and energy prices in the second half of 2022, we confirm the previous EBIT margin (EBIT as a percentage of total performance) in the range from 10% to 12% for the full year. Compared with the first half of the year, we therefore expect a decline in revenue growth and the EBIT margin in the second half. This forecast is subject to the condition that, despite the current (high) risks, the economy and the industries relevant to Nabaltec continue to develop in a stable manner. The gas market remains tight and contingency plans are in place in the event of an escalation in gas supply. However, the resulting potential impact on the entire supply chain cannot be predicted and therefore cannot be taken into account in this forecast.

A crucial building block for our company in the first half of 2022 was the placement of a new loan against borrower's note with a volume of EUR 90.0 million. In addition to refinancing maturing loans, we have thus also created the financial leeway to implement forward-looking projects. Apart from this long-term financing, strong internal financing power with free cash flow of EUR 15.0 million in the first half of 2022 also provides additional liquidity.

The investment project to expand boehmite capacity from the current 10,000 tons to around 20,000 tons is now being implemented and remains our most important project in the next two years. As the expansion of the European battery industry continues to progress, we remain very optimistic about the long-term development of our boehmite in e-mobility.

Step by step, our US activities are improving and developing in the right direction. Nashtec was able to increase production output over the previous year. Optimization of the production processes in the second half of the year will further increase output, successively making production at capacity possible. There are also signs of an improvement for Naprotec in the second half of the year, albeit still at a low level.

The first half of the year has shown that even in a difficult environment, Nabaltec AG has a pleasingly stable development and is very well positioned in its niche markets.

Schwandorf, August 2022

Yours,

JOHANNES HECKMANN CEO

Revenue forecast 2022 with adjustment upward: growth in a range from 12% to 14%

Interim Report 2/2022 | Nabaltec AG

NABALTEC SHARE THE SECOND 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's share price performance in the second quarter of 2022 was significantly impacted by the very challenging environment on the financial markets. The reason for this was the great uncertainty resulting from high inflation rates and interest rate hikes by central banks on the one hand, and ongoing geopolitical tensions on the other. In this light, the lowest price of the Nabaltec share was EUR 24.60 on 30 June 2022. Overall, the share price has fallen by 21.2% since the beginning of the second quarter. The benchmark indices also lost considerable ground during this period, falling 16.6% (SDAX) and 11.8% (Specialty chemicals index). The Nabaltec share hit its high in the second quarter at EUR 32.10 on 29 April 2022.

High of Nabaltec share in the second quarter at EUR 32.10 on 29 April 2022

KEY DATA FOR NABALTEC SHARE (XETRA)

	First 6 months of 2022	Year 2021
Number of shares	8,800,000	8,800,000
Market capitalization (cutoff date, in EUR million)	216.48	312.40
Average price (in EUR)	31.65	32.27
High (in EUR)	39.60	37.80
Low (in EUR)	24.60	23.40
Closing price (cutoff date, in EUR)	24.60	35.50
Average daily turnover (in shares)	3,169	3,059
Earnings per share (in EUR)	1.17	1.85

Nabaltec share's average Xetra daily trading volume amounted to 3,169 shares in the first six months of 2022. In 2021 as a whole, it had averaged 3,059 shares per day.

Earnings per share (EPS) in the first six months of 2022 amounted to EUR 1.17. In comparison, in the first half of 2021 it had been EUR 0.76 and in 2021 as a whole EUR 1.85.

The recommendations of the analysts of Baader Bank AG and Hauck Aufhäuser Lampe Privatbank AG regarding the Nabaltec share remain positive. In the analyses of the first six months of 2022, Hauck Aufhäuser Lampe Privatbank issued a buy recommendation. The target price as of the cutoff date of 30 June 2022 was unchanged at EUR 42.00. Baader Bank continued to rate Nabaltec share as an "Add" in its second quarter 2022 analyses. The price target was lowered to EUR 33.00 in the last analysis dated 24 May 2022, having previously been EUR 39.00.

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

As of 30 June 2022, the majority of the 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 1.17 in the first six month of 2022

Analyst recommendations continue to be positive

CONSOLIDATED INTERIM MANAGEMENT REPORT

AS OF 30 JUNE 2022

COURSE OF BUSINESS

Revenues of EUR 110.7 million in the first six month of 2022

In the first half of 2022, Nabaltec AG once again achieved record figures and, particularly due to the price adjustments implemented at the start of the year, was able to generate revenue growth of 17.9% to EUR 110.7 million (previous year: EUR 93.9 million). In the second quarter, revenues were EUR 55.9 million after EUR 47.9 million in the second quarter of the previous year (+16.7%). Revenue growth was generated by both product segments.

In the "Functional Fillers" product segment, Nabaltec achieved quarterly revenue of EUR 38.5 million, compared to EUR 33.3 million in the second quarter from the previous year. In the first six months of 2022, this product segment generated total revenue of EUR 75.4 million, compared to EUR 65.6 million in the same period from the previous year (+14.9%). Revenues in the "Specialty Alumina" product segment came to EUR 17.4 million in the second quarter of 2022, up 19.2% from the previous year (EUR 14.6 million). In the first half of the year, revenue in the "Specialty Alumina" product segment added up to EUR 35.3 million, compared to EUR 28.4 million in the first half of the previous year (+24.3%).

Nabaltec attained earnings before interest, taxes, depreciation and amortization (EBITDA) of EUR 11.8 million in the second quarter of 2022, compared to EUR 9.7 million in the same period of 2021. In the first half of 2022 as a whole, EBITDA thus rose to EUR 22.2 million, after EUR 16.8 million (+32.1%). The EBITDA margin (EBITDA as a percentage of total performance) reached 19.7% in the first half of 2022 (same period from previous year: 18.1%).

Consolidated operating profit (EBIT) in the second quarter of 2022 was EUR 8.5 million, exceeding the corresponding quarter from the previous year (2021: EUR 6.6 million) by 28.8%. In the first half of 2022, EBIT of EUR 15.7 million was generated, compared to EUR 10.5 million in the first half of 2021 (+49.5%). The EBIT margin (EBIT as a percentage of total performance) was 14.0% in the first half of 2022, compared to 11.3% in the same period from the previous year.

In the first half of 2022, Nabaltec generated earnings before taxes of EUR 14.8 million. In the same period of 2021, earnings before taxes had amounted to EUR 9.7 million. In the first half of 2022, this results in consolidated profit for the period of EUR 10.3 million after EUR 6.7 million in the first half of 2021. This corresponds to earnings per share of EUR 1.17 for the first six months of 2022. In comparison: in the same period from the previous year, earnings per share amounted to EUR 0.76.

With total performance of EUR 112.5 million in the first six months of 2022, the corresponding prior-year period (EUR 92.8 million) was exceeded by 21.2%. Total performance was EUR 57.4 million in the second quarter of 2022, compared to EUR 48.8 million in the previous year's quarter (+17.6%). The sound revenue performance and the further increase in inventories of finished goods and work in progress are the reasons for this development.

Other operating income increased from EUR 1.2 million in the first half of the previous year to EUR 2.0 million in the first half of 2022. This includes foreign exchange gains of EUR 1.5 million (prior-year period: EUR 0.6 million).

The cost of materials increased in the first half of 2022 from EUR 44.8 million to EUR 53.7 million compared to the same period from the previous year. In particular, increased costs for raw materials, energy and packaging materials contributed to this development. The cost of materials ratio (cost of material as a percentage of total performance) was 47.7% in the first half of 2022. The gross profit margin (gross profit as a percentage of total performance) increased to 54.0% in the first six months of 2022 compared to 53.1% in the same period from the previous year.

The personnel expense ratio (personnel expenses as a percentage of total performance) fell from 19.0% to 17.6% compared to the first half from the previous year. The number of employees increased from 479 persons to 488 persons as of 30 June 2022. Depreciation in the first six months of 2022 amounted to EUR 6.5 million and was thus at the expected level. The depreciation ratio fell from 6.8% in the previous year to 5.8% in the reporting period.

At EUR 18.8 million, other operating expenses in the first half of 2022 were EUR 3.9 million significantly higher than the level of the same period from the previous year at EUR 14.9 million. In particular, significantly higher freight costs, increased repair costs and rising selling expenses had an impact here. The ratio in relation to total performance increased from 16.1% to 16.7% compared to the previous year.

Nabaltec's export ratio was 73.9%, a slight decrease over the figure for the same period from the previous year (74.4%). In regional terms, with the exception of Asia, there was hardly any change in the share of revenues compared to the previous year. Due to lower boehmite sales in the first half of 2022, there was a year-on-year decline in revenues in Asia.

73.9% in the first half of 2022

Export ratio was

Cash flow from operating activities was EUR 19.1 million in the first half of 2022, compared to EUR 20.4 million in the first six months of the previous year. The very sound result for the period had a positive impact on cash flow. Changes in working capital, particularly the increase in inventories, had a negative impact on cash flow compared to the prior-year period.

Earnings per share at EUR 1.17

Interim Report 2/2022 | Nabaltec AG

Spending on investments increased from EUR 3.5 million in the same period from the previous year to EUR 4.1 million. This resulted in free cash flow of EUR 15.0 million in the first half of 2022, compared to EUR 16.9 million in the same period from the previous year.

Cash flow from financing activities was EUR 13.0 million, compared to EUR –0.7 million in the first half of the previous year. This includes the payment from the proceeds of the loan against borrower's note issued in April 2022 with a volume of EUR 90.0 million and the disbursement of the scheduled repayment of previous loans in the amount of EUR 59.0 million. In addition, cash flow from financing activities included the disbursement of a total dividend of EUR 2.2 million and the payment for investments in fixed-term deposits with a term of more than 3 months in the amount of EUR 15.0 million.

Cash and cash equivalents in the Nabaltec Group amounted to EUR 81.3 million as of 30 June 2022.

Total assets increased from EUR 220.7 million to EUR 270.6 million compared to 31 December 2021. Non-current assets increased from EUR 122.5 million on 31 December 2021 to EUR 136.4 million as of the reporting date on 30 June 2022. Current assets increased from EUR 98.2 million as of 31 December 2021 to EUR 134.2 million in the reporting period, primarily due to cash and cash equivalents.

On the liabilities side, the equity ratio as of 30 June 2022 was 39.5% compared to 43.7% as of 31 December 2021. Non-current liabilities were EUR 134.8 million as of 30 June 2022, compared to EUR 44.6 million as of 31 December 2021. Current liabilities decreased from EUR 79.6 million at year-end 2021 to EUR 28.9 million. The newly issued loan against borrower's note and the scheduled repayment of existing loans mainly led to this change in current and non-current liabilities. Equity ratio at 39.5%

EMPLOYEES

As of the reporting date of 30 June 2022, the Nabaltec Group employed 488 people (including trainees). At the corresponding point in the previous year, there had been 479 persons. The training ratio was 7.4%.

OUTLOOK

In the majority of product ranges, demand remained stable already at the beginning of the new financial year, with prices rising. Overall, uncertainties remain in 2022 in connection with bottlenecks in logistics, natural gas supply and various materials. In 2022 as well, fine hydroxides will continue to be the most important product range by far within the "Functional Fillers" product segment. Products with high added value will continue to gain importance in the "Specialty Alumina" product segment.

Since numerous Nabaltec customers had increased their inventories at the end of 2021 in order to better counter the supply bottlenecks that existed in many areas, 2021 ended with a renewed boost in sales, especially in the boehmite product range. At the start of 2022, momentum was slowed due to these pull-forward effects, and the boehmite product range was also unable to match the previous year's revenue level in the further course of the year. Irrespective of this, the product range will gain disproportionately in importance for Nabaltec in the coming years due to the capacity expansion forecast by customers for the production of coated separator films for lithium ion batteries.

Due to the very sound business development in the first half of 2022, Nabaltec is increasing its revenue forecast for the full year. The company now expects revenue growth for the full year 2022 in a range from 12% to 14% (previously: 10% to 12%). On the earnings side, Nabaltec confirms an EBIT margin in the range from 10% to 12% for the full year, despite the significant rise in raw material and energy prices in the second half of 2022. The forecast is based on the assumption that, despite the current risks for the global economy, the economy and the industries relevant to Nabaltec continue to develop in a stable manner. It remains unclear how the increasing risks resulting from the war in Ukraine, possible supply restrictions for natural gas, as well as high inflation and the coronavirus pandemic, which has not yet been overcome, will affect Nabaltec's business performance. In the event of increasing escalation and resulting economic distortions, negative effects on the financial, liquidity and earnings position cannot be ruled out.

Furthermore, the other statements made in the forecast report of the 2021 consolidated management report remain valid.

REPORT ON OPPORTUNITIES AND RISKS

With regard to the risk situation presented in the 2021 consolidated management report, no significant changes were discernible in the first half of 2022.

Schwandorf, 10 August 2022

The Management Board

Increase in revenue forecast: 12% to 14% growth; EBIT margin in a range from 10% to 12% confirmed

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

in TEUR	01/01/ – 06/30/2022	04/01/ – 06/30/2022	01/01/ – 06/30/2021	04/01/ – 06/30/2021
Revenues	110,723	55,890	93,925	47,934
Change in inventories of finished goods and work in progress	1,542	1,355	–1,367	752
Own work capitalized	243	122	274	138
Total performance	112,508	57,367	92,832	48,824
Other operating income	1,958	1,331	1,205	393
Cost of materials	–53,659	–27,486	–44,757	–22,726
Gross earnings	60,807	31,212	49,280	26,491
Personnel expenses	–19,762	–9,896	–17,619	–8,956
Depreciation	–6,536	–3,308	–6,258	–3,123
Other operating expenses	–18,848	–9,481	–14,869	–7,827
Operating profit (EBIT) 1	15,661	8,527	10,534	6,585
Interest and similar income	92	60	54	23
Interest and similar expenses	–980	–487	–903	–454
Earnings before taxes (EBT)	14,773	8,100	9,685	6,154
Taxes on income	–4,499	–2,500	–2,954	–1,803
Net after-tax earnings	10,274	5,600	6,731	4,351
Earnings per share (in EUR)	1.17	0.64	0.76	0.49

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/ – 06/30/2022	04/01/ – 06/30/2022	01/01/ – 06/30/2021	04/01/ – 06/30/2021
Net after-tax earnings	10,274	5,600	6,731	4,351
Items which may be reclassified to profit and loss in the future
Currency translation (after taxes)	2,162	1,648	710	–261
Net income from hedge accounting (after taxes)	208	207	208	205
Total	2,370	1,855	918	–56
Items which will not be reclassified to profit and loss in the future
Actuarial gains and losses	0	0	0	0
Total	0	0	0	0
Other comprehensive income	2,370	1,855	918	–56
Total comprehensive income	12,644	7,455	7,649	4,295

CONSOLIDATED BALANCE SHEET

AS OF 30 JUNE 2022

ASSETS

in TEUR	06/30/2022	12/31/2021
Non-current assets	136,441	122,516
Intangible assets
Concessions, proprietary rights and similar rights and assets, as well as licenses to such rights and assets (including advance payments)	502	396
Property, plant and equipment	119,492	119,904
Land, leasehold rights and buildings, including buildings on unowned land	36,302	36,462
Technical equipment and machinery	72,314	74,918
Other fixtures, fittings and equipment	4,263	3,792
Advance payments and assets under construction	6,613	4,732
Financial assets	78	78
Shares in affiliated companies	78	78
Other assets	15,000	0
Deferred tax assets	1,369	2,138
Current assets	134,207	98,190
Inventories	36,121	33,935
Raw materials and supplies	22,435	22,532
Work in process	1,532	1,241
Finished goods and merchandise	12,154	10,162
Other assets and accounts receivable	16,830	12,049
Trade receivables	7,891	5,457
Receivables from income taxes	432	432
Other assets	8,507	6,160
Cash and cash equivalents	81,256	52,206
TOTAL ASSETS	270,648	220,706

LIABILITIES

106,938	96,494
8,800	8,800
47,029	47,029
9,699	9,699
44,180	30,119
10,274	16,261
–13,044	–15,414

Non-current liabilities	134,827	44,587
Pension reserves	43,532	43,269
Other provisions	1,344	1,318
Accounts payable to banks	89,951	—

Current liabilities	28,883	79,625
Accounts payable from income taxes	6,900	3,677
Other provisions	502	485
Accounts payable to banks	333	59,268
Trade payables	12,918	10,681
Other accounts payable	8,230	5,514

TOTAL LIABILITIES	270,648	220,706

CONSOLIDATED CASH FLOW STATEMENT

FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022

CONSOLIDATED CASH FLOW STATEMENT

in TEUR		01/01/ – 06/30/2022	01/01/ – 06/30/2021
	Cash flow from operating activity
	Earnings before taxes	14,773	9,685
+	Depreciation of fixed assets	6,536	6,258
–/+	Other non-cash income/expenses	0	0
–/+	Income/loss from the disposal of assets	0	5
–	Interest income	–92	–54
+	Interest expenses	980	903
	Net operating income before changes in working capital	22,197	16,797
+/–	Increase/decrease in provisions	108	126
–/+	Increase/decrease in trade receivables and other assets not attributable to investment or financing activity	–4,781	–3,072
+/–	Increase/decrease in inventories	–2,186	1,482
+/–	Increase/decrease in trade payables and other liabilities not attributable to investment or financing activity	5,323	7,294
	Cash flow from operating activity before taxes	20,661	22,627
–	Income taxes paid	–1,541	–2,194
	Net cash flow from operating activity	19,120	20,433

CONSOLIDATED CASH FLOW STATEMENT

in TEUR		01/01/ – 06/30/2022	01/01/ – 06/30/2021
	Cash flow from investing activity
+	Payments received from the disposal of property, plant and equipment	0	0
–	Payments made for investments in property, plant and equipment	–3,971	–3,398
–	Payments made for investments in intangible assets	–175	–70
	Net cash flow from investment activity	–4,146	–3,468
	Cash flow from financing activity
–	Dividends	–2,200	0
–	Payments made for investment in fixed deposits > 3 month	–15,000	0
+	Payments received from loans	89,950	0
–	Payments made for the amortization of loans	–59,000	0
–	Interest paid	–737	–706
+	Interest received	37	5
	Net cash flow from financing activity	13,050	–701
	Net change in cash and cash equivalents	28,024	16,264
	Change in funds due to changes in exchange rates	1,026	285
	Funds at start of period	52,206	26,354
	Funds at end of period	81,256	42,903

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 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 06/30/2021 Actuarial gains and losses	8,800 —	47,029 —	9,699 —
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
Resolved dividend payments	—	—	—
Actuarial gains and losses	—	—	—
Currency translation	—	—	—
Net income from hedge accounting	—	—	—
Other comprehensive income	—	—	—
Net income after taxes	—	—	—
Net income	—	—	—
Balance per 06/30/2022	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	—
710	710	—
208	208	—
918	918	—
6,731	—	6,731
7,649	918	6,731

84,484	–17,894	36,850
1,063	1,063	—
1,213	1,213	—
204	204	—
2,480	2,480	—
9,530	—	9,530
12,010	2,480	9,530

96,494	–15,414	46,380
–2,200	—	–2,200
0	0	—
2,162	2,162	—
208	208	—
2,370	2,370	—
10,274	—	10,274
12,644	2,370	10,274
106,938	–13,044	54,454

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 – 30 JUNE 2022 in TEUR Functional Fillers Specialty Alumina Nabaltec Group Revenues Third party revenue 75,419 35,304 110,723 Segment result EBITDA 15,750 6,447 22,197 EBIT 11,001 4,660 15,661

PERIOD FROM 1 JANUARY – 30 JUNE 2021
in TEUR	Functional Fillers	Specialty Alumina	Nabaltec Group
Revenues
Third party revenue	65,553	28,372	93,925
Segment result
EBITDA	11,329	5,463	16,792
EBIT	6,831	3,703	10,534

ABRIDGED CONSOLIDATED NOTES

FOR THE PERIOD 1 JANUARY TO 30 JUNE 2022

1. GENERAL INFORMATION

Nabaltec AG, with registered office in Schwandorf, Germany¹ , 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 30 June 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 30 June 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 30 June 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.

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.

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

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 30 June 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 six 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 company is currently in the process of being dissolved. In the future, the expansion plans in the Southeast Asia region in the boehmite product range for lithium ion batteries will be driven forward directly by Nabaltec AG.

SHAREHOLDERS' EQUITY

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 were 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 six months of 2022. Such transactions are conducted at standard market prices and conditions.

SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

There have been no significant events after the balance sheet date.

Schwandorf, 10 August 2022

The Management Board

FINANCIAL CALENDAR 2022

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