Nabaltec AG — Investor Presentation 2024

Nov 21, 2024

OUR KNOW-HOW FOR YOUR SAFETY

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

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!

Nabaltec Group

Nabaltec revenue shares in 2023

Nabaltec

With its own sales companies and a network of distribution partners, Nabaltec maintains a global presence.

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

Process Flow from Bauxite to Specialty Products

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

Functional Fillers - halogen free flame retardants

Market volume: aluminum hydroxides for flame retardants in thousand tons

CAGR 4.3\% through 2027 based on ATH (MARKETSANDMARKETS ${ }^{\text {TM }}, 2022$ )

Oligopolistic competitive environment*

KC Corporation

Habitat

Market drivers aluminum hydroxide**

• Increasing fire safety requirements in connection with reduced smoke development (e.g. the CPR in EU)
• Trend towards environmentally-friendly products (e.g. RoHS \& WEEE, circular economy)
• Global growth in plastics (construction, automotive, as well as electronics and electrical)

Functional Fillers - Growth Drivers E-Mobility

Innovative products in lithium-ion batteries (NMC, NMx, LFP)

Functional Fillers - Growth Drivers E-Mobility Innovative products in lithium-ion batteries (NMC, NMx, LFP)

Boehmites - market environment

• China takes dominance in Battery Market
• EU and USA Market still weak - Projects delayed
• Overcapacities in Asia and increasing competition causes price pressure

Worldwide battery demand electro mobility
Battery demand e-mobility in GWh**

Battery demand by region in \%

Viscosity optimized hydroxides - market environment

• Increasing demands on battery safety and stability
• Focus on battery assembly in Europe
• New technologies drive up demand for specialties

Functional Fillers - Growth Drivers E-Mobility Innovative products in lithium-ion batteries (NMC, NMx, LFP)

Market volume of ceramic coatings in e-mobility in thousand tons*

Oligopolistic competitive environment for boehmite

Eistone

Electromobility as a market driver

• Climate protection - global reduction of $\mathrm{CO}_{2}$ emissions required
• Climate policy agreements in Europe:

Phase-out of cars with combustion engines by 2035

• Reduction of noise and air pollution, especially in urban areas
• Government support through monetary and non-monetary measures

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
  

Specialty Aluminas

Outlook Nabaltec target market for specialty aluminas in Europe* in thousand tons

Specialty Aluminas: CAGR 4.0\% through 2028 (Fact.MR, 2023)

Oligopolistic competitive environment*

Market drivers specialty aluminas

• Growing demand for technical ceramics in transportation as well as in plant and mechanical engineering
• Growing demand for high-quality specialty aluminas for efficient and sustainable steel production in Europe

Market entry barriers \& USPs

Development of revenues from 2013 to 2023 and first nine months of 2024

in EUR million

Development of EBIT from 2013 to 2023 and first nine months of 2024

Development of Cashflow from 2013 to 2023 and first nine months of 2024

Invested around EUR 170 million between 2013 and 2023

Key Figures Nabaltec Group

in EUR million	Q3/ 2024	Q3/ 2023	Change	$\frac{9 \mathrm{M} /}{2024}$	$\frac{9 \mathrm{M} /}{2023}$	Change
Revenues	49.8	49.8	$0.0 \%$	158.2	155.8	$1.5 \%$
Functional Fillers	35.9	35.6	$0.8 \%$	114.1	109.9	$3.8 \%$
Specialty Aluminas	13.9	14.1	$-1.4 \%$	44.1	46.0	$-4.1 \%$
EBITDA	8.9	7.8	$14.1 \%$	25.8	22.7	$13.7 \%$
EBIT	6.0	4.6	$30.4 \%$	16.8	13.1	$28.2 \%$
Net income	3.7	2.9	$27.6 \%$	11.1	8.4	$32.1 \%$
EPS (EUR)	0.42	0.33	$27.3 \%$	1.27	0.96	$32.3 \%$

Nabaltec

• Revenues growth of $\mathbf{1 . 5 \%}$ in the first nine months of 2024 slightly below the expectation of an increase in the range of $2 \%$ to $4 \%$ for 2024.
• Revenues in the boehmite product range amounted to EUR 10.5 million in 9M/2024 after EUR 12.3 million in the same period of the previous year.
• EBIT increased from EUR 13.1 million to EUR 16.8 million in 9M/ 2024 compared to the same period of the previous year.
• EBIT margin (as a percentage of total performance) was $\mathbf{1 0 . 3 \%}$ in the first nine months of the year 2024.

Balance Sheet Nabaltec Group

in EUR million	09/30/24	12/31/23	Change
Non-current assets	148.0	120.7	$22.6 \%$
Current assets	149.1	160.2	$-6.9 \%$
thereof 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	$5.8 \%$

• Total assets increased due to higher CAPEX and cash.

• Total liabilities increased due to higher equity and current liabilities.

• The equity ratio is $\mathbf{5 0 . 6 \%}$ as of the reporting date 30 September 2024 (31 December 2023: 50.5\%).

Net debt as of 30 September 2024 amounts to EUR -2.4 million (31 December 2023: EUR 5.0 million)

Cash Flow Nabaltec Group

in EUR million	9M/2024	9M/2023	Change
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	$2.5 \%$

Nabaltec

• The improved result for the period 9M/2024 and the changes in working capital had a positive impact on cash flow from operating activities.
• The investment focus was on expanding the capacity of boehmite and viscosity optimized hydroxides, as well as 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.

Share

• ISIN: DE000A0KPPR7
• 2023 trading volume: average of 3,171 shares per day (2022: 2,996 shares)*

Baader Bank:

• Buy, price target EUR 20.00 Euro (10/2024)

NuWays:

• Buy, price target EUR 25.00 (10/2024)

Edison:

• Price target EUR 29.90 (09/2024)

Shareholder structure:

• 28.35\% Heckmann family
• 27.23\% Witzany family
• 44.42\% Free float
  

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

The entire content of this presentation is copyrighted by Nabaltec AG. The content of this presentation may not be modified without the express written permission of Nabaltec AG. Business partners of Nabaltec AG may download, reproduce and distribute for their Nabaltec related business provided that the reprint contains the above mentioned copyright notices. All users acknowledge that any access and use of the presentation is at their own risk. Nabaltec AG assumes no liability for any errors or omissions in the content of the presentation and shall not be liable for any damages arising out of the access, use or inability to use this presentation. (c)Nabaltec AG

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.

The information contained herein is not for publication or distribution in the United States. The material set forth herein is for informational purposes only and is not intended, and should not be construed, as an offer of securities for sale into the United States. The securities of Nabaltec AG described herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or the laws of any State, and may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable State laws. No money, securities or other consideration is being solicited and, if sent in response to the Information contained herein, will not be accepted.

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