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Our know-how for your safety

Nabaltec: a leading supplier of eco-friendly

flame retardant fillers and specialty alumina

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The company in brief

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2019 REVENUES

EUR 179.0 MILLION

SECTOR

CHEMICAL

INDUSTRY

EBIT 2019

EUR 18.6 MILLION

EMPLOYEES 2019

514

EXPORT

RATIO 2019

76 %

PRODUCTION

SITES

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ABOUT 800 CUSTOMERS

ABOUT 50 REPRESENTATIVE

OFFICES

ANNUAL CAPACITY APPROX.

260,000 t

IN BUSINESS SINCE 1937

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Nabaltec Group

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Nashtec LLC

Corpus Christi, TX, USA

Naprotec LLC

Chattanooga, TN, USA

Asia Pacific

Nabaltec Asia Pacific K.K.

Tokio, JAPAN

Nabaltec AG

Schwandorf, GERMANY

Head Office

Shanghai

Nabaltec (Shanghai) Trading Co., Ltd.

Shanghai, CHINA

USA

Nabaltec USA Corporation

Corpus Christi, TX, USA

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Product segments

Product segments

Product range

Properties

Capacities

Raw materials

Functional Fillers

2019 revenues: EUR 122.2 million

Specialty Alumina

2019 revenues: EUR 56.8 million

Aluminum hydroxide Aluminum oxide

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Aluminum hydroxides Boehmites Aluminum oxides Ceramic bodies

Europe: 140,000 t Aluminum hydroxides

7,000 t Boehmites

USA: 65,000 t Aluminum hydroxides

Europe: 85,000 t Specialty alumina

Eco-friendly, smoke-reducing,

flame retardant, temperature-resistant,

non-abrasive

Resistant to wear and tear, electric insulation,

resistant to corrosion,

resistant to changes in temperature

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5

Market segments

Application examples

• Adhesives

• Ballistic ceramics

• Catalysts

• Ceramic filters

• Data cables

• Furnace linings

• High-voltage insulators

• Ignition plugs

• Polishing materials

• Power cables

• Printed circuit boards

• Seals

• Separator films

• Thermal insulations

• Tires

Refractory: 14%Polishing: 3%

Technical Ceramics: 11%

Adsorbents & Catalysts: 2%

Others: 7%

Wire & Cable: 40% Resins & Dispersions: 10%

Battery: 6% Rubber & Elastomers: 7%

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Functional Fillers

Oligopolistic competitive environment*

Market drivers: aluminum hydroxide**

Increasing fire safety requirements in connection with reduced smoke

development (e.g. the CPR in EU)

Trend towards eco-friendly products (e.g. RoHS & WEEE, circular economy)

Global growth in plastics (construction, automotive, as well as electronics and

electrical)

Market volume: aluminum

hydroxides for flame retardants

in thousand tons

Huber

Engineered

Materials

Eti AlüminyumINOTAL

KC

Corporation

* Excluding China; ** CPR - Construction Products Regulation, RoHS - Restriction of Hazardous Substances, WEEE - Waste from Electrical and Electronic Equipment

9711,051

1,1461,246

0

250

500

750

1000

1250

1500

2019 2021 2023 2025

CAGR 4.2% through 2025 based on ATH

(Frost & Sullivan, 2019)

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Specialty Alumina

Oligopolistic competitive environment**Outlook Nabaltec target market

for specialty alumina*in thousand tons

Huber

Engineered

Materials

SilkemALTEO

Almatis

Market drivers: specialty alumina

CAGR 2.6% through 2025 (Roskill, 2019)

2,3792,502

2,6302,767

1000

2000

3000

2019 2021 2023 2025

Growing demand for technical ceramics in transportation and mechanical

engineering

Growing demand for high-quality specialty alumina for efficient and sustainable

steel production in Eastern Europe, Russia, India and China

7* Demand for calcined direct use refractories, ceramics, polishing and catalysts; ** In reference to Europe

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Market entry barriers & USPs

Consistent

quality &

reliable

delivery

Focus on core

competencies

High

innovation

level

Global

presence

Capital-intensive

Technical

know-how

Oligopolistic

competitive

environment

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Cost-effective

energy supply

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Development of revenues from 2009 to 2019

CAGR 2009 to 2019 = 9.4%

in EUR million

73.1

112.7

129.0 129.2 132.9143.3

151.3159.2

168.6176.7 179.0

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

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Nabaltec revenue shares 2019With its own sales companies and a network of international agencies, Nabaltec maintains a global presence.

23.6%GERMANY

52.0%EUROPE (WITHOUT GERMANY)

12.8%REST OF THE WORLD

11.6%USA

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Development of EBIT from 2009 to 2019

EBIT in

EUR million

EBIT

margin in %-2.7

6.5

12.3

10.0 10.5

12.7

14.5

12.2

18.3 18.5 18.6

-5

0

5

10

15

20

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

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Development of Cashflow from 2009 to 2019

4.6

15.413.6

21.5

12.9

20.9 20.1

26.1 25.9

16.1

22.3

-20.3

-7.5

-15.5

-10.6

-2.6

-10.0

-13.1

-17.0

-23.9

-27.1

-20.0

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

More than EUR 168 million invested since 2009.

Operating

cash flow

Free

cash flow

Cash flow

investment

12

13

-2.7

6.5

12.3

10.0 10.5

12.7

14.5

12.2

18.3 18.5 18.6

-5

0

5

10

15

20

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

EBIT in

EUR million

EBIT -----------------------------------------------

Fixed Assets + Working CapitalROCE in % = x 100

Development of ROCE from 2009 to 2019

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ROCE in %

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As expected, the market environment worsened significantly in the second quarter due to the impact of the COVID-19 pandemic,

which slowed down the development of revenues and consequently earnings accordingly.

In addition, non-recurring effects in the amount of EUR 2.1 million weighed down consolidated earnings: Write-downs of inventories

in the US, extraordinary depreciation due to the closure of the mullite production plant at the Schwandorf site.

EBIT margin (as a percentage of total performance) was 2.7% in the first six months of 2020, down from 12.7% in the same period of

last year.

Continued positive revenue growth for boehmite in the fast-growing electric mobility market.

in EUR million Q2/2020 Q2/2019 change 6M/2020 6M/2019 change

Revenues 36.4 49.0 -25.7% 81.8 97.4 -16.0%

Functional Fillers 26.1 33.8 -22.8% 57.8 66.3 -12.8%

Specialty Alumina 10.3 15.2 -32.2% 24.0 31.1 -22.8%

EBITDA 3.7 10.1 -63.4% 9.8 19.0 -48.4%

EBIT -0.4 6.6 -106.1% 2.1 12.4 -83.1%

Consolidated result after taxes -1.1 4.1 -126.8% 0.1 7.6 -98.7%

Earnings per share (EUR) -0.12 0.46 -126.1% 0.02 0.86 -97.7%

Key figures Nabaltec Group (IFRS)

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in EUR million 06/30/2020 12/31/2019 change

Total assets 224.9 239.6 -6.1%

Non-current assets 158.8 158.8 0.0%

thereof property, plant and equipment 155.2 155.6 -0.3%

Current assets 66.1 80.8 -18.2%

thereof cash and cash equivalents 22.2 29.0 -23.4%

Equity 98.2 98.9 -0.7%

Non-current liabilities 107.0 86.7 23,4%

Current liabilities 19.7 53.9 -63.5%

Decrease in current liabilities by repayment of the first tranche of the 2015 loan against borrower's note in April 2020, in the amount of

EUR 31 million.

Increase in non-current liabilities by taking out a loan in the amount of EUR 20 million in April 2020.

Equity ratio of 43.7% (31 December 2019: 41.3%).

Net debt of EUR 37.8 million (31 December 2019: EUR 41.9 million).

Extracts from the Balance Sheet

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Investments in the first six months of 2020 are rooted mainly in US operations as well as in capacity expansions at the Schwandorf

site.

Free cash flow in the first half of 2020 slightly above from the same period of last year.

Significant change in cash flow from financing activities due to the payment in connection with the repayment of a loan against

borrower's note.

Cash and cash equivalents amounted to EUR 22.2 million on 30 June 2020.

in EUR million 6M/2020 6M/2019 change

Cash flow from operating activities 13.7 14.7 -6.8%

Cash flow from investing activities -7.2 -9.0 -20.0%

Free cash flow 6.5 5.7 14.0%

Cash flow from financing activities -13.4 -2.7 396.3%

Cashflow and investments

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COVID-19 pandemic and measures 2020

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The tightening of political measures worldwide to contain the corona pandemic and the associated uncertainties with unforeseeable

economic effects are also having a negative impact on Nabaltec's business.

The placing of orders by customers is very short-term and volatile, reflecting the current uncertainty in the market.

As expected, effects of the COVID-19 pandemic have weighed heavily on the second quarter. Significant declines in sales in both

product segments compared with the prior-year quarter and the previous quarter were recorded.

Cost-cutting measures were introduced, including a 12% reduction in working hours and corresponding compensation for all

employees and the Management Board, effective April 2020.

Securing the precautionary option of using short-time working.

Refinancing of the April 2020 repayment of the first tranche of a loan against borrower’s note obtained in 2015, in the amount of

EUR 31.0 million, was already secured in the fourth quarter of 2019.

Intensification of permanent customer monitoring.

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Strong organic growth until 2024E*

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* A multi-year outlook cannot be seriously presented due to the current situation caused by the corona pandemic and the resulting

unforeseeable short and long-term economic effects.

The forecast for the 2020 Financial Year, which was prepared at the beginning of March 2020 with slight revenue growth and an

EBIT margin in the upper single-digit percentage range, has been suspended due to the corona pandemic.

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Share

ISIN: DE000A0KPPR7

2019 trading volume:

average of 4,454 shares

per day

(2018: 3,105 shares)*

Baader Bank:

Buy, price target

EUR 28.00 (07/2020)

Hauck & Aufhäuser:

Buy, price target

EUR 33.00 (09/2020)

Shareholder structure:

28.20% Heckmann family

27.17% Witzany family

44.63% Free float

19* All data XETRA; N = News, A = Ad-hoc

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Corporate calendar

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Interim Report 3/202026 November 2020

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Nabaltec products make many

aspects of everyday life safer,

as well as being eco-friendly and

thereby an irreplaceable part of

your daily routine.

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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

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

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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