Nabaltec AG — Interim / Quarterly Report 2024

Nov 22, 2024

OUR KNOW-HOW FOR YOUR SAFETY

Nabaltec - a leading supplier of environmentally friendly flame retardant fillers and specialty aluminas

Q3 2024 Highlights
21 November 2024

The company in brief

REVENUES 2023

EUR 200.1 MILLION

EMPLOYEES 2023

516

ABOUT 800 CUSTOMERS

ABOUT 50 DISTRIBUTION PARTNERS

EBIT 2023

EUR 18.3 MILLION

PRODUCTION
SITES
3

IN BUSINESS SINCE

$$
1937
$$

SECTOR

CHEMICAL INDUSTRY

EXPORT-
RATIO 2023
75.0%

ANNUAL CAPACITY APPROX.
265,000!

Product Segments

Product segments

Functional Fillers

2023 revenues: EUR 142.3 million

Specialty Aluminas

2023 revenues: EUR 57.8 million

Product ranges

Properties

Formative

Capacities*

Raw materials

Ground hydroxides
Viscosity optimized hydroxides
Fine precipitated hydroxides Boehmites
eco-friendly, smoke-reducing,
flame retardant, non-abrasive

Oxides

Reactive aluminas
Ceramic bodies
resistant to wear and tear, electrically insulating, resistant to corrosion, resistant to temperature changes

Europe: 123,000 t Aluminum hydroxides 10,000 t Boehmites USA: 60,000 t Aluminum hydroxides

Aluminum hydroxide

Market segments "Functional Fillers" 2023

Application examples:

• HV-/MV-/LV-cables
• Data cables
• Automotive cables
• Wind turbine and PV cables
• E-vehicle charging cables
• Separator films
• Electronic housings and switches
• Printed circuit boards
• Adhesives
• Tires
• Vehicle interior trim
• Thermal insulations
• Facade panels

Rubber \& Elastomers

Market segments "Specialty Aluminas" 2023

Application examples:

• Furnace linings
• Wear and tear protection
• Ballistic ceramics
• Seals
• High-voltage insulators
• Catalysts
• Ceramic filters
• Polishing materials
• Ignition plugs
• Grinding media
  

Nabaltec Q3 2024 Highlights

Revenue EUR 49.8 million (+/-0.0\% yoy)

EBIT EUR 6.0 million $(+30.4 \%$ yoy)

EBIT Margin $\quad 11.4 \% \quad$ (Q3/23: 9.2\%)

EPS EUR 0.42 (+27.3\% yoy)

Net Debt EUR -2.4 million (31.12.23: 5.0 m )

• Stable revenue development in the third quarter of 2024, revenue at the same level as in the same quarter of the previous year.
• Higher capacity utilization and lower costs of materials, energy and maintenance improved EBIT margin in the third quarter of 2024.
• EPS increased from EUR 0.33 in the third quarter of the previous year to EUR 0.42 in the third quarter 2024.
• Net debt as of 30 September 2024 amounts to EUR -2.4 million.

Nabaltec Q3 2024 Functional Fillers

EBIT (EURm)

Revenue in the "Functional Fillers" product segment increased only slightly by $\mathbf{0 . 8 \%}$ yoy. In addition to the continued good demand for fine precipitated hydroxides and a strong third quarter for viscosity optimized hydroxides, boehmites recorded a significant drop in revenue of $46 \%$ in the third quarter of 2024 compared to the previous year's period.

The operating result (EBIT) improved to EUR 5.8 million, resulting in an EBIT margin of $16.2 \%$ in this segment. The fine precipitated hydroxides product range, together with the viscosity optimized hydroxides contributed significantly to this good result.

CAPEX in the "Functional Fillers" product segment amounted to EUR 4.8 million in the third quarter 2024. Investments in the capacity expansion of boehmites and viscosity optimized hydroxides are the main projects for the capex.

Nabaltec Q3 2024 Specialty Aluminas

Revenues (EURm)

$15.4 \quad 14.8$
Q3 23 Q1 24 Q2 24 Q3 24

EBIT (EURm)

$0.3 \quad 0.5$
Q3 23 Q1 24 Q2 24 Q3 24$

Revenue in the "Specialty Aluminas" product segment remained slightly below the previous year's level in the third quarter. There is still a lack of impetus here, particularly from the reactive alumina product range (higher value-added products).

The operating result (EBIT) decreased year-on-year to EUR 0.2 million. The EBIT margin of $\mathbf{1 . 4 \%}$ is weak. The overcapacity on the market is having a negative impact on both sales volumes and sales prices.

CAPEX increased on a moderate basis to

EUR 2.4 million in the "Specialty Aluminas" product segment. The amount includes initial expenditure for the general overhaul of two rotary kilns.

Profit \& Loss Statement Nabaltec Group

in EUR million	$9 M / 2024$	$9 M / 2023$	Change
Revenues	158.2	155.8	$1.5 \%$
Total Performance	162.6	155.2	$4.8 \%$
Gross Profit	82.2	78.4	$4.8 \%$
Gross Profit margin (from the total performance)	$50.6 \%$	$50.5 \%$
EBITDA	25.8	22.7	$13.7 \%$
EBITDA margin (from the total performance)	$15.9 \%$	$14.6 \%$
EBIT	16.8	13.1	$28.2 \%$
EBIT margin (from the total performance)	$10.3 \%$	$8.4 \%$
Net income	11.1	8.4	$32.1 \%$
EPS (EUR)	1.27	0.96	$32.3 \%$

• Revenues growth driven by higher sales volumes of 7.9\%. Selling prices fell in the first nine months of 2024 compared to the same period of the previous year. Export ratio is at $76.0 \%$.
• Gross Profit margin as a percentage of total performance of $50.6 \%$ at the same level as in the first nine months of 2023 (50.5\%) despite lower sales prices.
• EBITDA margin was 15.9\% in the first nine months of the year 2024.
• EBIT margin increased from 8.4\% to $10.3 \%$ yoy.
• Earnings per share in the first nine months 2024 was EUR 1.27 after EUR 0.96 in the same period of the previous year.

Balance Sheet Nabaltec Group

in EUR million	09/30/24	$12 / 31 / 23$	Change
Intangible assets	1.5	0.9	$66.7 \%$
Property, plant and equipment	130.7	119.0	$9.8 \%$
Other non-current assets	15.9	0.9
Inventories	46.3	51.1	$-9.4 \%$
Receivables and other assets	9.1	23.1	$-60.6 \%$
Cash and cash equivalents	93.7	86.0	$9.0 \%$
Total assets	297.1	280.9	$5.8 \%$
Equity	150.2	141.8	$5.9 \%$
Non-current liabilities	122.7	122.6	$0.1 \%$
Current liabilities	24.2	16.5	$46.7 \%$
Total liabilities	297.1	280.9	$5.8 \%$

Nabaltec

• Intangible assets and property, plant and equipment increased due to higher CAPEX in 2024.
• Other non-current assets as of 09/30/24 include a fixed-term deposit in the amount of EUR 15 million with a term of 2 years.
• Inventories decreased by EUR 4.8 million mainly due to the decline in raw material stocks.
• The equity ratio is $\mathbf{5 0 . 6 \%}$ as of the reporting date 09/30/24 (12/31/23: 50.5\%).
• Non-current liabilities as of 09/30/24 include provisions for pensions in the amount of EUR 28.7 million and financial liabilities of EUR 90.0 million.
• Current liabilities increased by EUR 7.7 million due to higher trade payables of EUR 4.4 million and other accounts payable of EUR 3.0 million.

Cash Flow Statement Nabaltec Group

in EUR million	9M/2024	9M/2023	Change
Net operating income	25.8	22.7	$13.7 \%$
+/- Working capital	$+10.5$	$-1.6$
- Taxes paid	$-4.1$	$-6.3$	$-34,9 \%$
Cash flow from operating activity	32.2	14.8	$117.6 \%$
Cash flow from investment activity	$-21.4$	$-8.2$	$161.0 \%$
Free Cash flow	10.8	6.6	$63.6 \%$
Cash flow from financing activity	$-2.8$	$-2.8$	$0.0 \%$
Cash at end of the period	93.7	91.4	$2.5 \%$

• The improved result for the period 9M/2024 and especially the changes in working capital had a positive impact on cash flow from operating activities: Inventories decreased, while trade payables increased.
• The investment focus was on expanding the capacity of boehmite and viscosity optimized hydroxides, as well as initial expenditure for the general overhaul of two rotary kilns and the ongoing process optimization at the Schwandorf site.
• Cash and cash equivalents amounted to EUR 93.7 million on 30 September 2024.

Outlook 2024*

• The demand in 2024 has been characterized by short-termism. However, the demand has remained stable for the majority of the product ranges.
• At the end of the first half of the year, Nabaltec substantiated the forecast for financial year 2024 presented in the 2023 consolidated management report and made a slight upward adjustment to the EBIT margin range.
• Based on the economic and industry-specific environment, the company confirms the outlook from August 2024 and expects slight revenues growth in the range of $\mathbf{2 \%}$ to $\mathbf{4 \%}$ in 2024 and thus, as originally forecasted, total revenues slightly above the level of the previous year (2023: EUR 200.1 million).
• On the earnings side, Nabaltec expects an EBIT margin in the range of $\mathbf{8 \%}$ to $\mathbf{1 0 \%}$ compared to the previously forecast range of $7 \%$ to $9 \%$.

[^0]
[^0]: *The forecast is based on the assumption that the economy and the industries relevant to Nabaltec will remain stable. At the time the forecast was prepared, it remains unclear at what speed or with what dynamics the economic situation will recover globally and in the markets relevant to Nabaltec. Inflation, high interest rates and an uncertain situation are slowing consumption and investment worldwide. In the event of continued negative economic distortions due to the geopolitical situation, negative effects on the net assets, financial position and results of operations cannot be ruled out. Furthermore, the other statements made in the outlook report remain valid.

Financial calendar

26 November 2024 Deutsches Eigenkapitalforum

6 May 2025 Publication Annual Financial Statements

6 May 2025
Earnings Call: 2024 Highlights

22 May 2025 Publication Quarterly Financial Report (call-date Q1)

22 May 2025
Earnings Call: Q1 2025 Highlights

25 June 2025
Annual General Meeting

Nabaltec

Contact

Johannes Heckmann (CEO)
Günther Spitzer (CFO)

Nabaltec AG
Alustrasse 50 - 52
92421 Schwandorf
Germany

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

OUR KNOW-HOW FOR YOUR SAFETY

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Rounding: Due to computational reasons, rounding differences may appear in the percentages and figures in the tables, graphics and text.

Statements relating to the future: This presentation contains forward-looking statements based on current estimates and forecasts made by the Management Board and currently available information. These forward-looking statements are not to be understood as guarantees of projected future developments and results. Rather, future developments and results are subject to a variety of risks and uncertainties and are based on assumptions that may not prove to be accurate. We assume no obligation to update these forward-looking statements.

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