Nabaltec AG — Interim / Quarterly Report 2023

May 25, 2023

OUR KNOW-HOW FOR YOUR SAFETY

INTERIM REPORT 1/2023

NABALTEC GROUP

KEY FIGURES

FOR THE PERIOD FROM 1 JANUARY TO 31 MARCH 2023
in EUR million	03/31/2023 (IFRS)	03/31/2022 (IFRS)	Change
Revenues
Total revenues	57.0	54.8	4.0%
thereof
Functional Fillers	40.1	36.9	8.7%
Specialty Alumina	17.0	17.9	–5.0%
Foreign share (%)	73.8	74.0
Employees 1 (number of persons)	502	483	3.9%
Earnings
EBITDA	8.4	10.4	–19.2%
EBIT	5.2	7.1	–26.8%
Consolidated result after taxes	3.1	4.7	–34.0%
Earnings per share (EUR)	0.35	0.53	–34.0%
Financial position
Cash flow from operating activities	11.2	12.4	–9.7%
Cash flow from investing activities	–1.9	–1.5	26.7%
Assets, equity and liabilities	03/31/2023	12/31/2022
Total assets	291.2	281.1	3.6%
Equity	136.1	133.5	1.9%
Non-current assets	133.6	135.3	–1.3%
Current assets	157.6	145.8	8.1%

¹ on the reporting date 31 March, including trainees

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." The markets for Nabaltec products are rather robust in the mid- and long-term, although the geopolitical situation since February 2022 makes it significantly more difficult to make reliable estimates for the future.

REVENUES AS OF 03/31 IN EUR MILLION

EBIT AS OF 03/31 IN EUR MILLION

OPERATING CASH FLOW AS OF 03/31 IN EUR MILLION

TO OUR SHAREHOLDERS

• 06 Foreword of the CEO
• 08 Nabaltec share

CONSOLIDATED INTERIM MANAGEMENT REPORT

• 10 Course of business
• 12 Employees
• 12 Outlook
• 13 Report on opportunities and risks

CONSOLIDATED INTERIM FINANCIAL STATEMENTS (IFRS)

• 14 Statement of comprehensive income
• 16 Balance sheet
• 18 Cash flow statement
• 20 Statement of changes in shareholders' equity
• 22 Segment reporting
• 23 Notes

FURTHER INFORMATION

• 26 Financial calendar 2023 and contact
• 27 Imprint

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. In 2022, for example, the company once again received the Best Managed Companies Award for the fourth time in a row for outstandingly managed mid-sized companies, due in part to its highly innovative practices.

PRODUCT SEGMENTS (Q1/2023)

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.

EUR 40.1 MILLION REVENUES

EUR 7.5 MILLION EBITDA

EUR 5.2 MILLION EBIT

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 17.0 MILLION REVENUES

EUR 0.8 MILLION EBITDA

EUR 0.0 MILLION EBIT

REVENUE SHARES Q1/2023

51.3% EUROPE

(WITHOUT GERMANY)

11.8% USA

REST OF THE WORLD

Company headquarters of Nabaltec AG, Schwandorf

CONTACT IR Kerstin Schuierer E-mail: InvestorRelations@nabaltec.de

NABALTEC AG ON THE INTERNET

www.nabaltec.de/en

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.

06 FOREWORD OF THE CEO

FOREWORD

OF THE CEO

Nabaltec can once again achieve revenue growth in a volatile environment

Nabaltec AG succeeded in generating revenues of EUR 57.0 million in the first three months of 2023, an increase of 4.0% compared to the same quarter of the previous year, in an environment that continues to be very volatile. Nabaltec's profitability was weakened compared to the same period last year due to further cost increases. Thus, we were able to achieve an EBIT of EUR 5.2 million in the first three months of the year (after EUR 7.1 million in the same period of the previous year), which corresponds to an EBIT margin of 9.4%, based on total performance.

A more in-depth analysis of quarterly revenues shows that the growth is attributable exclusively to price effects. In our view, the current lack of impetus in volume growth is due to the addition of various factors. Individual sectors, such as the construction industry or the steel industry, and thus indirectly also the refractory equipment suppliers to which we supply, are suffering from a weakened sector economy. Overall – and this applies to almost all our target sectors and the entire value chain – customers are again paying very close attention to low inventory levels. There has been a 180-degree turnaround, whereas previously the focus had been on security of supply through increased inventories in the face of strained logistics chains. Even in this market environment of a lack of volume growth, we classify medium- and long-term demand in our markets as fundamentally intact. However, the weak phase in some of our target sectors once again confirms our already cautiously formulated forecast for 2023 as a whole. We expect revenue growth in a range of 3% to 5% for 2023. On the earnings side, we consider an EBIT margin in a range of 8% to 10% to be realistic for the year as a whole. In the first quarter, we were thus exactly within the ranges we expect for the full year.

Nabaltec continues to expect largely stable demand in most product ranges

We expect demand to remain largely stable in most product ranges. The market environment for specialty alumina is more challenging than for functional fillers. In specific applications – such as our boehmite for coating the separator films in lithium-ion batteries for e-mobility – we do not currently see a rapid breakthrough in Europe. In many cases, battery manufacturers are still not getting beyond the stage of announcements. The rapid expansion of cell production capacities expected by so many and demanded by so many is currently not in evidence. Instead, Asian manufacturers – and above all the Chinese – are successively expanding their position on the world market. In the process, they are also pushing back manufacturers from other Asian countries, such as South Korea or Japan, which have been Nabaltec's preferred customers to date. Whether Chinese cell manufacturers and their Chinese suppliers can be won as customers for Nabaltec, we judge rather skeptically in view of the very closed Chinese market in this area. Our focus remains on existing Asian customers from South Korea and Japan, who also produce in China. We also definitely want to serve the European

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

market to a significant extent – combined with the expectation that the capacity expansion is only postponed. At the same time, we are analyzing our opportunities to be available on the North American market as a partner to the supplier industry for cell production. There are currently increasing signs that cell production there is likely to develop significantly faster than in Europe.

We see the revenue development in the first quarter as confirmation of our solid market position and our basically intact target markets. At the same time, the detailed analysis of the results achieved at the start of 2023 in terms of margins and volumes is all the more strong motivation for us to become even better every day and by no means to rest on past records.

Schwandorf, May 2023

Yours,

JOHANNES HECKMANN CEO

NABALTEC SHARE

THE FIRST QUARTER OF 2023

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.

Closing price at 31 March 2023 at EUR 22.40

Over the past 12 months, Nabaltec's share price moved more or less in parallel with the benchmark SDAX and the specialty chemicals index, but was unable to keep pace with their performance towards the end of the current reporting quarter. Over a three-month period, the share price was 85.2% (EUR 22.40) of its entry price (EUR 26.30) at the start of 2023, while both the SDAX (up 10.3%) and the sector index (up 4.2%) posted gains. Nabaltec's share had reached its high for the first quarter at EUR 28.80 on 24 January 2023. The lowest price was EUR 21.60 on 29 March 2023.

KEY DATA FOR NABALTEC SHARE (XETRA)

	First 3 months of 2023	Year 2022
Number of shares	8,800,000	8,800,000
Market capitalization (cutoff date, in EUR million)	197.1	230.6
Average price (in EUR)	26.01	27.62
High (in EUR)	28.80	39.60
Low (in EUR)	21.60	19.60
Closing price (cutoff date, in EUR)	22.40	26.20
Average daily turnover (in shares)	2,416	2,996
Earnings per share (in EUR) 1	0.35	3.00

1 thereof non-recurring effects tax income cost settlement Nashtec amounting to EUR 6.8 million or EUR 0.77 per share in 2022

Nabaltec share's average XETRA daily trading volume amounted to 2,416 shares in the first three months of 2023. In 2022 as a whole, an average of 2,996 shares were traded per day.

Earnings per share (EPS) in the first quarter of 2023 amounted to EUR 0.35. In comparison, in the first three months of 2022 it had been EUR 0.53 and in 2022 as a whole EUR 3.00 2.

The recommendations of the analysts of Baader Bank AG and NuWays AG (spin-off of Hauck Aufhäuser Lampe Privatbank AG) on Nabaltec share remain positive. In their analyses of the first quarter of 2023, both research houses have issued buy recommendations. The price target set by NuWays was EUR 36.00 as of 31 March 2023, and was confirmed on 28 April 2023. Baader Bank rated the Nabaltec share in its analyses of the first three months of 2023 with a price target of EUR 31.00, which was confirmed after the reporting date on 27 April 2023.

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

As of 31 December 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.

Analyst ratings remain positive with "buy" rating

2 thereof non-recurring effects tax income cost settlement Nashtec amounting to EUR 6.8 million or EUR 0.77 per share in Q3/2022

CONSOLIDATED INTERIM MANAGEMENT REPORT

AS OF 31 MARCH 2023

COURSE OF BUSINESS

Consolidated revenues in the first quarter of 2023 at EUR 57.0 million (up 4.0%)

In the first three months of 2023, Nabaltec AG was again able to grow in terms of revenues. The company generated consolidated revenues of EUR 57.0 million, compared to EUR 54.8 million in the same period of the previous year (up 4.0%). Revenue growth was exclusively price-driven; at the beginning of 2023, the company once again implemented a slight price increase, as announced, having already adjusted prices in 2022.

In the "Functional Fillers" product segment, revenues of EUR 40.1 million were achieved in the first quarter of 2023, up from EUR 36.9 million, representing an increase of 8.7% compared to the same quarter of the previous year. Sales volumes in the boehmite product range stagnated compared with the same period of the previous year. The market for boehmite remains clearly inhibited by the lack of impetus from the industry, especially in Europe. Nabaltec will closely monitor further developments and expects the market to regain momentum in the medium term. In the "Specialty Alumina" product segment, revenues in the first quarter of 2023 were EUR 17.0 million, down 5.0% on the same quarter of the previous year (Q1/2022: EUR 17.9 million). Volumes in the segment fell significantly by 18.0%, due in particular to the current slowdown in the steel industry.

In terms of earnings before interest, taxes, depreciation and amortization (EBITDA), Nabaltec AG generated EUR 8.4 million in the first three months of 2023, compared to EUR 10.4 million in the same period of the previous year (down 19.2%). The EBITDA margin (EBITDA as a percentage of total performance) was 15.2% after 18.9% in the previous year.

The company achieved an operating profit (EBIT) of EUR 5.2 million in the reporting quarter, compared with EUR 7.1 million in the same period of the previous year (down 26.8%). The EBIT margin (EBIT as a percentage of total performance) was 9.4% (Q1/2022: 12.9%).

The net financial income amounted to EUR -0.5 million in Q1/2023 and was thus almost at the level of the prior-year quarter.

Nabaltec generated EUR 4.6 million of earnings before taxes, compared to EUR 6.7 million in the same quarter of the previous year. After taking taxes into account, consolidated result for the period was EUR 3.1 million, compared to EUR 4.7 million in the same period of the previous year. This corresponds to earnings per share of EUR 0.35 in the first three months of 2023 (prior-year quarter: EUR 0.53).

Nabaltec's total performance rose slightly in the first three months of the year compared to the same period last year, from EUR 55.1 million to EUR 55.4 million. The increase in total performance was offset by a significant reduction in inventories compared to the same quarter of the previous year.

Cost of materials increased by EUR 2.0 million year-on-year to EUR 28.2 million in the first quarter of 2023. In particular, increased costs for raw materials and energy contributed to this development. The cost of materials ratio (cost of materials as a percentage of total performance) was 50.9% in the first three months. The significant year-on-year increase (Q1/2022: 47.5%) was mainly due to higher raw material prices. The gross profit margin (gross profit as a percentage of total performance) decreased from 53.7% to 50.5% in the reporting quarter. With a headcount of 502 (31 March 2022: 483 employees), personnel expenses amounted to EUR 10.0 million in the first quarter of 2023, compared with EUR 9.9 million in the prior-year period. As a result, the personnel expense ratio (personnel expenses as a percentage of total performance) also increased slightly to 18.1% (Q1/2022: 18.0%). Both depreciation and amortization, at EUR 3.2 million, and the depreciation and amortization ratio, at 5.8%, were on a par with the prior-year period in the first quarter of 2023.

Other operating expenses increased slightly in the first three months of 2023 from EUR 9.4 million in the comparative quarter to EUR 9.7 million. This includes in particular freight costs as well as repair and distribution costs. This resulted in an expense ratio (expenses as a percentage of total performance) of 17.5%, compared to 17.1% in the same quarter of the previous year.

Nabaltec's export ratio decreased slightly from 74.0% in the same period of 2022 to 73.8% in the first quarter of 2023, thus remaining at a very high level. From a regional perspective, the revenue shares grew especially in the regions of Germany, Europe and Asia.

Cash flow from operating activity fell to EUR 11.2 million after the first three months of 2023, compared with EUR 12.4 million in the first quarter of the previous year. In addition to the lower net profit for the period compared to the previous year, changes in working capital also had an impact here.

EBIT at EUR 5.2 million, EBIT margin at 9.4%

Earnings per share of EUR 0.35

Export ratio at a high level of 73.8%

Spending on investments increased from EUR 1.5 million in the prior-year quarter to EUR 1.9 million. The main focus was on the expansion of boehmite capacities and process optimization at the Schwandorf site. This results in a free cash flow of EUR 9.3 million in the first quarter of 2023, compared to EUR 10.9 million in the first three months of the previous year.

Cash and cash equivalents in the Nabaltec Group amounted to EUR 96.8 million as of 31 March 2023.

Compared to 31 December 2022, total assets increased from EUR 281.1 million to EUR 291.2 million (up 3.6%). Non-current assets decreased slightly by 1.2% to EUR 133.7 million at the reporting date of 31 March 2023 (31 December 2022: EUR 135.3 million). Current assets increased by 8.0% to EUR 157.5 million (31 December 2022: EUR 145.8 million).

On the liabilities side, the equity ratio decreased slightly compared with 31 December 2022, from 47.5% to 46.7% as of 31 March 2023. The equity ratio continues to represent a very good basis compared with the industry as a whole. Non-current liabilities at 31 March 2023 were at the same level as at the end of 2022 at EUR 122.7 million. Due to higher trade payables, current liabilities increased from EUR 24.9 million at year-end 2022 to EUR 32.3 million. Equity ratio at 46.7%

EMPLOYEES

As of 31 March 2023, Nabaltec Group had 502 employees (including trainees), compared to 483 employees as of the corresponding date of the previous year. Of these, 487 employees work in Germany. The trainee ratio was 7.2%. Trainee ratio of 7.2%

OUTLOOK

Demand at the start of 2023 was subdued and characterized by short-termism, with prices rising again. Accordingly, sales volumes were down in the first three months of the year due to consistent inventory optimization on the part of customers as well as slight market gloom, especially in the steel industry.

For the majority of the product ranges, Nabaltec continues to expect stable demand for the current financial year, even after the first three months. Overall, however, uncertainties related to raw material and energy prices, as well as potential bottlenecks in logistics and various materials, will remain in 2023.

In the US, Nabaltec expects Nashtec's business situation to remain good and Naprotec's to gradually improve.

Within "Functional Fillers," fine hydroxides will remain by far the most important product range in 2023. The boehmite product range will continue to gain in importance due to the expected development in electromobility, although the forecasted capacity expansion of battery cells in Europe is still a long time coming. The high value-added products from the "Specialty Alumina" product segment will also become increasingly important.

Furthermore, the other statements made in the forecast report of the consolidated management report 2022 remain valid.

REPORT ON OPPORTUNITIES AND RISKS

With regard to the risk situation presented in the 2022 consolidated management report, no significant changes are discernible in the first quarter of 2023.

Schwandorf, 12 May 2023

The Management Board

Nabaltec confirms forecast of 3% to 5% revenue growth and 8% to 10% EBIT margin

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIOD FROM 1 JANUARY TO 31 MARCH 2023

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

in TEUR	01/01/ – 03/31/2023	01/01/ – 03/31/2022
Revenues	57,038	54,833
Change in inventories of finished goods and work in progress	–1,790	187
Own work capitalized	105	121
Total performance	55,353	55,141
Other operating income	848	627
Cost of materials	–28,170	–26,173
Gross earnings	28,031	29,595
Personnel expenses	–9,971	–9,866
Depreciation	–3,209	–3,228
Other operating expenses	–9,685	–9,367
Operating profit (EBIT)	5,166	7,134
Interest and similar income	387	32
Interest and similar expenses	–916	–493
Earnings before taxes (EBT)	4,637	6,673
Taxes on income	–1,537	–1,999
Net after-tax earnings	3,100	4,674
Earnings per share (in EUR)	0.35	0.53

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

in TEUR	01/01/ – 03/31/2023	01/01/ – 03/31/2022
Net after-tax earnings	3,100	4,674
Items which may be reclassified to profit and loss in the future
Currency translation (after taxes)	–479	514
Net income from hedge accounting (after taxes)	0	1
Total	–479	515
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	–479	515
Total comprehensive income	2,621	5,189

CONSOLIDATED BALANCE SHEET AS OF 31 MARCH 2023

ASSETS

in TEUR	03/31/2023	03/31/2022
Non-current assets	133,616	135,315
Intangible assets	591	575
Concessions, proprietary rights and similar rights and assets, as well as licenses to such rights and assets	310	348
Advance payments made	281	227
Property, plant and equipment	117,091	118,789
Land, leasehold rights and buildings, including buildings on unowned land	35,608	36,141
Technical equipment and machinery	68,645	70,145
Other fixtures, fittings and equipment	4,327	4,334
Advance payments and assets under construction	8,511	8,169
Financial assets	0	0
Shares in affiliated companies	0	0
Other assets	15,000	15,000
Deferred tax assets	934	951
Current assets	157,560	145,754
Inventories	46,036	45,737
Raw materials and supplies	32,363	30,591
Work in process	1,687	1,715
Finished goods and merchandise	11,986	13,431
Other assets and accounts receivable	14,739	12,503
Trade receivables	6,503	6,451
Receivables from income taxes	230	903
Other assets	8,006	5,149
Cash and cash equivalents	96,785	87,514
TOTAL ASSETS	291,176	281,069

LIABILITIES

03/31/2023	03/31/2022
136,086	133,465
8,800	8,800
47,029	47,029
9,699	9,699
70,555	44,180
3,100	26,375
–3,097	–2,618

Non-current liabilities	122,745	122,686
Pension reserves	28,243	27,985
Other provisions	1,295	1,286
Accounts payable to banks	89,957	89,954
Deferred tax liabilities	3,250	3,461

Current liabilities	32,345	24,918
Accounts payable from income taxes	3,377	2,949
Other provisions	579	577
Accounts payable to banks	1,298	783
Trade payables	20,271	15,087
Other accounts payable	6,820	5,522

TOTAL LIABILITIES	291,176	281,069

CONSOLIDATED CASH FLOW STATEMENT

FOR THE PERIOD FROM 1 JANUARY TO 31 MARCH 2023

CONSOLIDATED CASH FLOW STATEMENT

in TEUR	01/01/ – 03/31/2023	01/01/ – 03/31/2022
Cash flow from operating activity
Earnings before taxes	4,637	6,673
+ Depreciation of fixed assets	3,209	3,228
–/+ Income/loss from the disposal of assets	–9	0
– Interest income	–387	–32
+ Interest expenses	916	493

	Net operating income before changes in working capital	8,366	10,362
+/–	Increase/decrease in provisions	7	53
–/+	Increase/decrease in trade receivables and other assets not attributable to investment or financing activity	–2,909	–4,226
+/–	Increase/decrease in inventories	–299	2,937
+/–	Increase/decrease in trade payables and other liabilities not attributable to investment or financing activity	6,479	3,597
	Cash flow from operating activity before taxes	11,644	12,723
–	Income taxes paid	–424	–289

Net cash flow from operating activity	11,220	12,434

CONSOLIDATED CASH FLOW STATEMENT

in TEUR		01/01/ – 03/31/2023	01/01/ – 03/31/2022
	Cash flow from investment activity
+	Payments received from the disposal of property, plant and equipment	18	0
–	Payments made for investments in property, plant and equipment	–1,912	–1,461
–	Payments made for investments in intangible assets	–54	–73
	Net cash flow from investment activity	–1,948	–1,534
	Cash flow from financing activity
–	Interest paid	–103	–51
+	Interest received	358	3
	Net cash flow from financing activity	255	–48
	Net change in cash and cash equivalents	9,527	10,852
	Change in funds due to changes in exchange rates	–256	249
	Funds at start of period	87,514	52,206
	Funds at end of period	96,785	63,307

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

FOR THE PERIOD FROM 1 JANUARY TO 31 MARCH 2023

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

in TEUR	Subscribed capital	Capital reserve	Other earnings reserve
Balance per 01/01/2022	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
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 12/31/2022	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 03/31/2023	8,800	47,029	9,699

Profit/loss carried forward incl. consolidated net income for the year

Other changes in equity with no effect on profit and loss

21 CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

Consolidated shareholders' equity	Other changes in equity with no effect on profit and loss	Profit/loss carried forward incl. consolidated net income for the year
96,494	–15,414	46,380
0	0	—
514	514	—
1	1	—
515	515	—
4,674	—	4,674
5,189	515	4,674

in TEUR

–14,899	51,054	101,683
	–2,200	–2,200
11,148	—	11,148
926	—	926
207	—	207
12,281	—	12,281
—	21,701	21,701
12,281	21,701	33,982

133,465	–2,618	70,555
0	0	—
–479	–479	—
0	0	—
–479	–479	—
3,100	—	3,100
2,621	–479	3,100
136,086	–3,097	73,655

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 2023
in TEUR	Functional Fillers	Specialty Alumina	Nabaltec Group
Revenues
Third party revenue	40,071	16,967	57,038
Segment result
EBITDA	7,535	840	8,375
EBIT	5,158	8	5,166

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

ABRIDGED CONSOLIDATED NOTES

FOR THE PERIOD FROM 1 JANUARY TO 31 MARCH 2023

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 2023 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 2023 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 2022.

The interim financial statements encompass the period from 1 January to 31 March 2023.

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 2023 has not changed compared to the consolidated financial statements as of 31 December 2022. 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 2022.

In addition to the Standards and Interpretations used on 31 December 2022, the following Standards and Interpretations were used for the first time and had no impact on the interim financial statements:

• Amendments to IAS 1 (Presentation of Financial Statements) Classification of liabilities as current or non-current
• Amendments to IAS 1 (Presentation of Financial Statements) and Guidance Document 2 Disclosure of Accounting Policies
• Amendments to IAS 8 (Accounting Policies, Changes in Accounting Estimates and Errors) Definition of Accounting Estimates
• Amendments to IAS 12 (Income Taxes) Deferred Taxes Relating to Assets and Liabilities Arising from a Single Transaction

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 2023 were the result of investments, primarily in technical equipment and machinery to expand capacity and for further process optimization.

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.

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 2022.

No transactions with related persons and enterprises took place in the first three months of 2023. 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, 12 May 2023

The Management Board

FINANCIAL CALENDAR 2023

Annual General Meeting	28 June
Publication Half-yearly Financial Statements	24 August
Publication Quarterly Financial Report (call-date Q3)	23 November

CONTACT

Kerstin Schuierer

Nabaltec AG Alustraße 50 – 52 92421 Schwandorf Germany

Phone: +49 9431 53-204 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 53-204 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

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.

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