Nabaltec AG publishes half-year report 2023

• Consolidated revenues in the first six months at EUR 106.1 million (-4.2% compared to the same period of the previous year)
• Weak industrial momentum and further destocking by customers dampen demand
• EBIT in the first six months of 2023 at EUR 8.5 million (first half of 2022: EUR 15.7 million)
• Forecast for 2023: Revenues decline in a range of 4% to 6%, EBIT margin in a range of 6% to 8%

Schwandorf, 24 August 2023 – Nabaltec AG today published its half-year report 2023, in which it confirms the previously announced quarterly revenues of EUR 49.1 million in the second quarter (-12.2%; prior-year quarter: EUR 55.9 million). In the first six months, consolidated revenues thus amounted to EUR 106.1 million, compared to EUR 110.7 million in the same period of the previous year (-4.2%).

Sales volumes were down across the two product segments "Functional Fillers" and "Specialty Alumina," reflecting currently weak industrial momentum. "In the second quarter, we had to pay tribute to the significant slowdown in important target markets such as the cable and wire, construction and steel industries. For a long time, we were able to compensate for the declining sales volumes through our active pricing policy. Thus, in the first quarter of 2023, we were once again able to increase revenues despite declining sales volumes, which was no longer possible in the second quarter," reports Johannes Heckmann, CEO of Nabaltec AG. "In general, and from a long-term perspective, however, we see our markets and our market position intact, and we expect sales momentum to increase again."

In the "Functional Fillers" product segment, Nabaltec's second quarter revenues were EUR 34.2 million, down from EUR 38.5 million in the corresponding period last year (-11.2%). In the first six months of 2023, this product segment thus generated total revenues of EUR 74.2 million, compared to EUR 75.4 million in the same period last year (-1.6%). The "Specialty Alumina" product segment generated revenues of EUR 14.9 million in the second quarter of 2023, a decrease of 14.4% compared to the same quarter of the previous year (EUR 17.4 million). Revenues for the first half of 2023 in this product segment thus amounted to EUR 31.9 million, compared to EUR 35.3 million (-9.6%) in the first half of 2022.

Nabaltec AG generated earnings before interest, taxes, depreciation and amortization (EBITDA) of EUR 14.9 million in the first six months of 2023, compared to EUR 22.2 million in the first half of the previous year (-32.9%). In terms of consolidated operating profit (EBIT), EUR 8.5 million were generated in the first half of 2023, compared with EUR 15.7 million in the same period of the previous year (-45.9%). The EBIT margin (EBIT as a percentage of total performance) was thus 8.1% in the first six months of 2023, compared with 14.0% in the corresponding prior-year period.

Against the backdrop of the current market development with a weakness in demand and ongoing destocking on the part of customers, Nabaltec AG had adjusted its forecast for the full year on 4 August 2023. The company now expects a year-on-year decline in revenues in a range of 4% to 6%. On the earnings side, the company forecasts an EBIT margin for 2023 in a range of 6% to 8%.

Note: Nabaltec AG's half-year report 2023 will be available for download as of 24 August 2023 at www.nabaltec.de/en/investor-relations/financial-reports.

About 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 two product segments, "Functional Fillers" and "Specialty Alumina." The company's product range includes eco-friendly flame retardant fillers and functional additives for the plastics industry. Flame retardant fillers are used e.g. in cables in tunnels, airports, high-rise buildings and electronic devices, while additives have applications in catalysis and in electric vehicles. Nabaltec also produces specialty oxides for use in technical ceramics, the refractory and polishing industries. Nabaltec maintains production sites in Germany and the US and plans to continue to develop its market position by expanding capacity, further optimizing processes and quality and making strategic extensions to its product range. On the strength of its specialty products, the company strives to attain the market leadership in each segment.

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