Nabaltec : Interim Report 1/2024 *





OUR KNOW-HOW FOR YOUR SAFET Y

Interim Report 1/2024

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NABALTEC GROUP

Key Figures

FOR THE PERIOD FROM 1 JANUARY TO 31 MARCH 2024

in EUR million	03/31/2024 (IFRS)	03/31/2023 (IFRS)	Change
Revenues
Total revenues	54.0	57.0	-5.3%
thereof
Functional Fillers	38.7	40.1	-3.5%
Specialty Alumina	15.4	17.0	-9.4%
Foreign share (%)	76.5	73.8
Employees 1 (number of persons)	509	502	1.4%
Earnings
EBITDA	8.0	8.4	-4.8%
EBIT	5.0	5.2	-3.8%
Consolidated result after taxes	3.4	3.1	9.7%
Earnings per share (EUR)	0.39	0.35	11.4%
Financial position
Cash flow from operating activities	31.7	11.2	183.0%
Cash flow from investing activities	-5.1	-1.9	168.4%
Assets, equity and liabilities	03/31/2024	12/31/2023
Total assets	294.4	280.9	4.8%
Equity	145.9	141.8	2.9%
Non-current assets	123.4	120.7	2.2%
Current assets	171.0	160.2	6.7%

1 on the reporting date 31 March, including trainees

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 remain intact in the long-term, although the global economic situation left a clear mark on the chemical industry - a trend which Nabaltec was not able to completely escape in the past financial year.

REVENUES AS OF 03/31

IN EUR MILLION

2020- 45.4

2021- 46.0

2022- 54.8

2023- 57.0

2024- 54.0

EBIT AS OF 03/31

IN EUR MILLION

2020 - 2.5

2021 - 3.9

2022- 7.1

2023- 5.2

2024- 5.0

OPERATING CASH FLOW

AS OF 03/31 IN EUR MILLION

2020 - 6.5

2021 - 10.0

2022 - 12.4

2023 - 11.2

2024- 31.7

REVENUE SHARES Q1/2024

14.6 %	11.7 %
REST OF THE WORLD
USA

			2 3 . 5%
50. 2 %
EUROPE	GERMANY
(WITHOUT GERMANY)

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 offers outstanding long-term prospects for growth for Nabaltec's various specialty chemical products and is the basis for the company's many years of continuous growing­ economic 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.

NABALTEC AG ON THE

CONTACT IR

INTERNET

Kerstin Schuierer

www.nabaltec.de/en

E-mail: [e-mail]

CONTENTS

Interim Report 1/2024

TO OUR SHAREHOLDERS

1. Foreword of the CEO

1. Nabaltec share

CONSOLIDATED INTERIM

MANAGEMENT REPORT

1. Course of business

1. Employees

1. Outlook
2. Report on opportunities and risks

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.

CONSOLIDATED INTERIM FINANCIAL STATEMENTS (IFRS)

1. Statement of comprehensive income

1. Balance sheet

1. Cash flow statement

1. Statement of changes in shareholders' equity

1. Segment reporting
2. Notes

FURTHER INFORMATION

1. Financial calendar 2024 and contact
2. Imprint

INNOVATIONS

Nabaltec's success is based largely on the company's high level of innovation. For this, Nabaltec is regularly honored with national and international prizes and awards. In 2023, for example, the company once again and already several times in a row, received the Best ­Managed Companies Award for excellently managed medium-sized companies. In addition, Nabaltec was also among "Bayerns Best 50" (Bavaria's best 50), the particularly fast-growingmedium-sized Bavarian companies, in 2023.

PRODUCT SEGMENTS

(Q1/2024)

FUNCTIONAL FILLERS

EUR 38 .7 MILLION

REVENUES

EUR 6 .7 MILLION

EBITDA

EUR 4. 5 MILLION

EBIT

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

development­of 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 leading manufacturers of boehmite for coating materials for separator films and viscosity optimized aluminum hydroxides for composite materials and gap fillers.

SPECIALTY ALUMINA

EUR 15 .4 MILLION

REVENUES

EUR 1. 3 MILLION

EBITDA

EUR 0. 5 MILLION

EBIT

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.

04	o f t h e C E O
	F o r e w o r d

FOREWORD

of the CEO

Sales volumes in the first quarter of 2024 almost at the same level as in the same quarter of the

previous year

The solid earnings situation is combined with a strong cash flow development

2024. This

corresponds to a decrease of 5.3% compared to the first quarter of the previous year. However, there is a clear trend reversal and noticeable growth compared to the second, third and fourth quarters of 2023. Sales volumes are already almost at the same level as in the same quarter of the previous year. While the sound revenue performance in the first quarter of 2023 was also due to price increases, we had to make price concessions in the same period of 2024 due to market conditions.

Nabaltec's revenue performance currently mirrors the German economy to a certain extent: the worst is behind; a trend reversal was clearly recognizable in the first quarter, even with a slightly positive surprise, but still no reason for excessive optimism; caution is still required. This summarizes the opinions of many experts on current economic development in Germany.

With quarterly revenue of EUR 54.0 million, we are on track to achieve our goal of returning to slight revenue growth for the year as a whole. In terms of earnings, we have set ourselves an EBIT margin of 7 % to 9 % (as a percentage of total performance). Here, too, we can confirm the estimates. We managed to achieve an EBIT margin of 9.3% in the first quarter. This puts us at a comparable level to the 9.4% achieved in the same quarter of the previous year, with revenue up by EUR 3 million at that time. Once again, we were able to demonstrate Nabaltec's robust earnings quality, as we did in the four challenging quarters of 2023.

We combine a solid earnings situation with strong cash flow development. In the first three months, we generated operating cash flow of EUR 31.7 million, including the decrease in other assets in the form of time deposits amounting to EUR 15 million. For 2024, we are planning capital expenditure of around EUR 30 million, of which EUR 5.1 million will be recorded as cash outflow in the first quarter of 2024. On balance, we were thus able to generate free cash flow of EUR 26.6 million.

Key areas of investment in

2024 are boehmite and viscosity- optimized aluminum hydroxides

The key areas of investment in 2024 are boehmite and the expansion of viscosity-optimized aluminum hydroxides for the rapidly increasing demand in the area of thermal management for battery storage systems. In particular, we continue to approach investments in the boehmite area with a sense of proportion and the necessary flexibility in terms of budgeting time and capacities. Our fundamental conviction remains: We believe that our boehmite has an excellent future in lithium-ion battery applications. Even if e-mobility

is currently experiencing a very noticeable dip in growth and with it key supplier sectors such as the battery industry, we remain convinced that there is no way around the growth of e-mobility in the medium term. And we are ideally positioned for this market. We see ourselves as a quality supplier with a high level of technical expertise and currently the only significant Western supplier outside China to offer this environmentally friendly and highly effective application solution for coating separator films.

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o f t h e C E O	05
F o r e w o r d

The Management Board of Nabaltec AG from left to right:

Günther Spitzer, Johannes Heckmann (CEO), Dr. Alexander Risch

We will certainly have to focus even more on the North American market. The expectations and hopes for strong European battery production have not yet been fulfilled. Key market players are already looking to the US and Canada. The fact that we can also operate successfully in the United States is demonstrated by the current development of our activities there in fine hydroxides and ground aluminum hydroxides. The order situation at our Nashtec subsidiary was very positive in the first quarter. Accordingly, we achieved revenue and earnings figures that even exceeded our expectations in the first quarter of 2024. We are also making significant progress with our second production site in Chattanooga. Sales volumes and revenue doubled in the first quarter, even if the still small base shows that market penetration in the US will take some time.

We currently see particularly good opportunities for growth across the board in our already strongest-selling product range of fine hydroxides and flame-retardant fillers. Significant growth impetus is currently coming from data cables and cables for the expansion of renewable energies. Best quality, environmentally friendly flame retardants are used in these areas to make the cables as fireproof as possible. We are in exactly the right position here.

Additional momentum is expected from the boom in artificial intelligence and the associated growth in required computing power which inturn increases the demand for additional new data centers. Nabaltec can thus become a beneficiary of the AI boom thanks to the increasing demand for data lines.

Schwandorf, May 2024

Yours,

Growth is currently being driven

by data cables and cables for the expansion of renewable energies

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	N a b a l t e c s h a r e

NABALTEC SHARE

The first quarter of 2024

ISIN/WKN: DE000A0KPPR 7/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.

Highest price in 2024 at EUR 19.10

The price of Nabaltec share suffered another loss in the first three months of 2024, after having leveled off at EUR 19.40 at the end of 2023. Nabaltec share hit a low of EUR 12.60 on 20 March 2024 and reached its high to date for 2024 at EUR 19.10 on 2 January 2024. Over the three-month period, Nabaltec share lost about one third of its value, failing to keep pace with the performance of the benchmark index SDAX (+2.4%) and the specialty chemicals index (+0.1%).

PERFORMANCE OF NABALTEC SHARE (XETRA, INDEXED)

120
110
100
90
80
70
60
50
Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec	Jan	Feb	Mar
Nabaltec share	SDAX	specialty chemicals index

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N a b a l t e c s h a r e

KEY DATA FOR NABALTEC SHARE (XETRA)

		First 3 months of
		2024		Year 2023
Number of shares	8,800,000	8,800,000
Market capitalization (cutoff date, in EUR million)	113.5	170.7
Average price (in EUR)	15.28	20.44
High (in EUR)	19.10	28.80
Low (in EUR)	12.60	12.90
Closing price (cutoff date, in EUR)	12.90	19.40
Average daily turnover (in shares)	8,712	3,171
Earnings per share (in EUR)		0.39		1.30

Nabaltec share's average XETRA daily trading volume amounted to 8,712 shares in the first three months of 2024. In 2023 as a whole, an average of 3,171 shares were traded per day.

Earnings per share (EPS) in the first quarter of 2024 amounted to EUR 0.39. In comparison, in the first three months of 2023 it had been EUR 0.35 and in 2023 as a whole EUR 1.30.

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 for the long term, with a "buy" rating. In its analysis of the first quarter published 6 March 2024, NuWays set a new price target of EUR 25.00 (previously: EUR 31.00), which was confirmed once more after the reporting date (analysis of 26 April 2024). Baader Bank rated the Nabaltec share in its last analysis of the previous year (24 November 2023) with a price target of EUR 31.00. Baader Bank did not publish any further analysis during the first quarter. After the reporting date, the price target was lowered to EUR 20.00 in the analysis of 14 May 2024.

The analysts' recommendations of Nabaltec share can be found online at www.nabaltec.de/en/investor-relations/share.

As of 31 December 2023, the majority of the 8,800,000 shares continue to be held by the Heckmann and Witzany families. The Heckmann family holds 28.20 % of the company's capital stock and the Witzany family holds 27.23%. The remaining 44.57 % of the shares are in free float.

Analysts' recommendations each remain positive with a "buy" rating

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08	O F B U S I N E S S
	C O U R S E

CONSOLIDATED INTERIM MANAGEMENT REPORT

as of 31 March 2024

Course of business

Consolidated revenues in the first quarter of 2024 at EUR 54.0 million (-5.3%)

EBIT at EUR 5.0 million; EBIT margin at 9.3%

Earnings per share of EUR 0.39 (Q1/2023: EUR 0.35)

In the first three months of 2024, Nabaltec AG posted consolidated revenues in the amount of EUR 54.0 million. This corresponds to a decrease of 5.3% compared to the same quarter of last year (Q1/2023: EUR 57.0 million). However, growth was achieved compared to the immediate preceding quarters Q2, Q3 and Q4 of the previous year, indicating a positive trend reversal. Nabaltec's sales volumes were down only 1.1 % from the first quarter of last year.

The "Functional Fillers" product segment generated revenue of EUR 38.7 million in the first quarter of 2024, down from EUR 40.1 million in the same quarter of the previous year, which corresponds to a decrease of 3.5%. Sales volumes in the boehmite product range continue to stagnate due to a lack of market impetus from industry, particularly in Europe. In the "Specialty Alumina" product segment, Nabaltec posted revenues of EUR 15.4 million in the first quarter of 2024, down from EUR 17.0 million in the same quarter of last year. This represents a decrease of 9.4% from the same quarter of last year. The continued weakness in the steel industry is leaving its mark here.

Nabaltec AG's consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to EUR 8.0 million in the first three months of 2024, down from EUR 8.4 million in the same period of last year (-4.8 %). The EBITDA margin (EBITDA as a percentage of total performance) was 14.8 %, down from 15.2 % in the year before.

Nabaltec achieved an operating profit (EBIT) of EUR 5.0 million in the reporting quarter, down from EUR 5.2 million in the same period of last year (-3.8 %). The EBIT margin (EBIT as a percentage of total performance) was 9.3% (Q1/2023: 9.4%).

The net financial income amounted to EUR -0.6 million in the first quarter of 2024 and was therefore almost on a par with the same quarter of the previous year (Q1/2023: EUR -0.5 million).

Nabaltec's earnings before taxes amounted to EUR 4.4 million, compared to EUR 4.6 million in the same quarter of last year. In the first three months of 2024, this results in consolidated result for the period of EUR 3.4 million after EUR 3.1 million in the same period of last year. This corresponds to earnings per share of EUR 0.39 in the first three months of 2024 (previous year: EUR 0.35).

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