Nabaltec AG achieves an EBIT margin of 9.1% in 2023 despite weak economic demand and expects slight growth in 2024

Nabaltec AG achieves an EBIT margin of 9.1% in 2023 despite weak economic demand and expects slight growth in 2024

• Revenues of EUR 200.1 million in 2023 according to preliminary figures (2022: EUR 218.8 million)
• Preliminary operating profit (EBIT) of EUR 18.3 million; EBIT margin 9.1%
• Weak demand due to the economic situation having a particular impact on the chemical industry
• Outlook 2024: Revenues slightly above the previous year's level; EBIT margin in a range of 7% to 9%

Schwandorf, 5 March 2024 – Nabaltec earned revenues of EUR 200.1 million, according to 2023 preliminary figures, compared to EUR 218.8 million in the previous year (-8.5%). Despite the current weakness in the industry, which is particularly noticeable in the chemical sector, this represents the second-highest revenues in Nabaltec's history. According to preliminary figures, the operating profit (EBIT) was EUR 18.3 million, compared to EUR 29.2 million in 2022. The EBIT margin (EBIT as a percentage of total performance) was 9.1%. The revenue forecast adjusted in August 2023 with an expected decline in revenues of 4% to 6% was therefore not achieved. However, the forecast for the EBIT margin, which was also adjusted from the expected 6% to 8%, was exceeded.

"The mix of negative factors from the economy, sector trends and weak demand in our target markets made it impossible for us to achieve the targets we set at the beginning of 2023. Nevertheless, we performed well in a difficult environment," said Johannes Heckmann, CEO of Nabaltec AG. "In the medium term, we expect better momentum in the markets and then Nabaltec will be well positioned to benefit significantly from this."

According to preliminary figures, the company attained revenues in the "Functional Fillers" product segment of EUR 142.3 million in Financial Year 2023, compared to EUR 148.0 million in the previous year, corresponding to a decrease of 3.9%. In the boehmite product range, revenues in 2023 amounted to EUR 17.3 million, compared to EUR 19.0 million the year before. Boehmite's share in consolidated revenues was therefore around 9%, as in the previous year. In the "Specialty Alumina" product segment, Nabaltec earned revenues of EUR 57.8 million, according to 2023 preliminary figures, compared to EUR 70.9 million in the previous year (-18.5%). The continuing weakness of the steel industry is leaving clear marks here.

According to these preliminary results, Nabaltec AG's revenues were down 8.5% in 2023, slightly better than the German chemical industry as a whole, which was down 12% from the previous year, according to the German chemical industry association VCI. Nabaltec's performance was characterized above all by the fact that customer orders fluctuated greatly over the course of the year in line with the respective order situation. At the same time, the continued customer focus on low inventories was clearly noticeable, particularly in the fourth quarter. All in all, these circumstances led to a short-term and erratic order behavior on the part of customers that was difficult for the company to calculate. Even at the start of 2024, demand remains characterized by short-term decisions. However, Nabaltec expects demand to increase for the majority of its product ranges in the current financial year. Due to the economic and sector-specific environment, the company expects revenues for 2024 to be slightly above the previous year's level. On the earnings side, Nabaltec is expecting an EBIT margin in a range of 7% to 9%. The forecast is based on the assumption that the economy and the industries relevant to Nabaltec will develop in a stable manner.

Note: The 2023 Annual Report and the 2023 Annual Financial Statements for Nabaltec AG will be available for download as of 25 April 2024 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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