Our know-how for your safety - Nabaltec: a leading supplier of eco-friendly flame retardant fillers and specialty alumina - Nabaltec AG
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Our know-how for your safety
Nabaltec: a leading supplier of eco-friendly
flame retardant fillers and specialty alumina
1
The company in brief
2020 REVENUES EBIT 2020* SECTOR
CHEMICAL
EUR 159.6 MILLION EUR -15.9 MILLION
INDUSTRY
EMPLOYEES 2020 PRODUCTION EXPORT
SITES RATIO 2020
490 3 75.1%
ABOUT 800 CUSTOMERS
IN BUSINESS SINCE 1937
2020 ANNUAL CAPACITY APPROX.
ABOUT 50 REPRESENTATIVE
OFFICES
265,000 t
* thereof non-recurring effects in the amount of EUR -25.3 million 2
2
Nabaltec Group
Nabaltec AG
Schwandorf, GERMANY
Head Office
Naprotec LLC
Chattanooga, TN, USA
Asia Pacific
Nabaltec Asia Pacific K.K.
Tokio, JAPAN
Shanghai
USA
Nabaltec (Shanghai) Trading Co., Ltd.
Nabaltec USA Corporation Nashtec LLC
Corpus Christi, TX, USA Shanghai, CHINA
Corpus Christi, TX, USA
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3
Product segments
Functional Fillers Specialty Alumina
Product segments 2020 revenues: EUR 114.2 million 2020 revenues: EUR 45.4 million
Product range
Aluminum hydroxides Boehmites Aluminum oxides Ceramic bodies
Resistant to wear and tear, electrically
Properties Eco-friendly, smoke-reducing,
insulating, resistant to corrosion,
flame retardant, non-abrasive
resistant to temperature changes
Europe: 126,000 t Aluminum hydroxides Europe: 72,000 t Specialty alumina
Capacities* 7,000 t Boehmites
USA: 60,000 t Aluminum hydroxides
Raw materials Aluminum hydroxide Aluminum oxide
* capacity based on product mix 4
4
Market segments
Wire & Cable: 40% Resins & Dispersions: 11%
Application examples
• Adhesives
• Ballistic ceramics
• Catalysts
• Ceramic filters
Battery: 9% Rubber & Elastomers: 7% • Data cables
• Furnace linings
• High-voltage insulators
• Ignition plugs
• Polishing materials
Polishing: 2% Refractory: 13%
• Power cables
• Printed circuit boards
• Seals
• Separator films
• Thermal insulations
Technical Ceramics: 11% Others: 6% • Tires
Adsorbents & Catalysts: 1%
5
5
Functional Fillers
Market volume: aluminum Oligopolistic competitive environment*
hydroxides for flame retardants Huber
in thousand tons KC
Engineered
Corporation
Materials
1,246
1,146
1,051
971
INOTAL Eti Alüminyum
Market drivers: aluminum hydroxide**
Increasing fire safety requirements in connection with reduced smoke
development (e.g. the CPR in EU)
2019 2021 2023 2025
Trend towards eco-friendly products (e.g. RoHS & WEEE, circular economy)
CAGR 4.2% through 2025 based on ATH Global growth in plastics (construction, automotive, as well as electronics and
(Frost & Sullivan, 2019) electrical)
* Excluding China; ** CPR - Construction Products Regulation, RoHS - Restriction of Hazardous Substances, WEEE - Waste from Electrical and Electronic Equipment 6
6
Functional Fillers – boehmite, an innovative product for e-mobility
Coating material for separator film in lithium ion batteries
Nabaltec boehmite revenues Worldwide battery demand electro mobility
2016 - 2020 Battery demand in GWh* Battery demand by region in %
in EUR million
6 17 21
12
48 43
11
21 20
71
14 16
16.0
2019: 219 GWh 2025: 1,464 GWh 2030: 3,612 GWh
10.8
7.0
* Source: Global Battery Alliance, World Economic Forum „Powering up sustainable energy“, McKinsey Quarterly, June 2020
4.6 1 thereof electro mobility 171 GWh
2.7
Ceramic-coated separators
2016 2017 2018 2019 2020
Reduce the risk of short circuits
Enable higher energy density
Show dynamically growing demand in Europe and USA
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7
Specialty Alumina
Outlook Nabaltec target market Oligopolistic competitive environment**
for specialty alumina* Huber
in thousand tons
Almatis Engineered
Materials
2,767
2,630
2,502
2,379
ALTEO Silkem
Market drivers: specialty alumina
Growing demand for technical ceramics in transportation and mechanical
engineering
2019 2021 2023 2025 Growing demand for high-quality specialty alumina for efficient and sustainable
steel production in Eastern Europe, Russia, India and China
CAGR 2.6% through 2025 (Roskill, 2019)
* Demand for calcined direct use refractories, ceramics, polishing and catalysts; ** In reference to Europe 8
8
Market entry barriers & USPs
Cost-effective
Capital-intensive Global energy supply
presence
Consistent
High
quality &
innovation
reliable
level
delivery
Focus on core Oligopolistic
Technical competencies competitive
know-how
environment
9
9
Development of revenues from 2010 to 2020
in EUR million
176.7 179.0
168.6
159.2 159.6
151.3
143.3
129.0 129.2 132.9
112.7
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
CAGR 2010 to 2020 = 3.5%
10
10Nabaltec revenue shares 2020
With its own sales companies and a network of international agencies, Nabaltec maintains a global presence.
24.9%
GERMANY
49.9% 15.4%
9.8% EUROPE (WITHOUT GERMANY) REST OF THE WORLD
USA
11
11Development of EBIT from 2010 to 2020
18.3 18.5 18.6
14.5
12.3 12.7 12.2
EBIT in 10.0 10.5
EUR million 6.5 10.8 10.4 10.2
9.3 8.9 9.5
7.7 7.8 7.7
5.8
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
EBIT
margin in %
-10.2
-15.9*
* thereof non-recurring effects in the amount of EUR -25.3 million 12
12Development of Cashflow from 2010 to 2020
in EUR million
26.1 25.9
24.3
21.5 22.3
20.9 20.1
15.4 16.1
13.6 12.9
Operating
cash flow 14.0
10.9 10.3 10.9
7.9 9.1 2.3
7.0 2.0
Free
cash flow 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
-1.9 -2.6
-7.5
Cash flow -10.6 -10.3
-10.0 -11.0
investment -13.1
-15.5
-17.0
-20.0
-23.9
-27.1
More than EUR 158 million invested since 2010.
13
13Development of ROCE from 2010 to 2020
18.3 18.5 18.6
14.5
12.3 12.7 12.2
EBIT in 10.0 10.5
EUR million 12.3
6.5 10.4 10.6 9.9
9.3 9.6
7.6 8.0 8.5
ROCE in % 5.1
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
-10.2
-15.9*
ROCE in % = EBIT / (Fixed Assets + Working Capital) x 100
* thereof non-recurring effects in the amount of EUR -25.3 million 14
14Key figures Nabaltec Group (IFRS)
in EUR million Q1/2021 Q1/2020 change 2020 2019 change
Revenues 46.0 45.4 1.3% 159.6 179.0 -10.8%
Functional Fillers 32.3 31.7 1.9% 114.2 122.2 -6.5%
Specialty Alumina 13.7 13.7 0.0% 45.4 56.8 -20.1%
EBITDA 7.1 6.1 16.4% 23.6 32.3 -26.9%
EBIT 3.9* 2.5 56.0% -15.9** 18.6 --
Consolidated result after taxes 2.4 1.2 100.0% -19.7 10.7 --
Earnings per share (EUR) 0.27 0.14 92.9% -2.23 1.22 --
EBIT in the first quarter of 2021 includes a non-recurring effect of EUR -1.3 million due to the exorbitant increase in energy prices
following the extraordinary winter storm in Texas, USA, in mid-February 2021.
EBIT margin (as a percentage of total performance) was 8.9%.
Adjusting for non-recurring effect, EBIT amounted to EUR 5.2 million in the first quarter of 2021.
* thereof non-recurring effect in the amount of EUR -1.3 million; ** thereof non-recurring effects in the amount of EUR -25.3 million 15
15Extracts from the Balance Sheet
in EUR million 03/31/2021 12/31/2020 change
Total assets 205.5 198.6 3.5%
Non-current assets 127.4 128.1 -0.5%
thereof property, plant and equipment 123.7 123.9 -0.2%
Current assets 78.1 70.5 10.8%
thereof cash and cash equivalents 34.8 26.4 31.8%
Equity 80.2 76.8 4.4%
Non-current liabilities 105.0 104.8 0.2%
Current liabilities 20.3 16.9 20.1%
Equity ratio of 39.0% (31 December 2020: 38.7%).
Net debt of EUR 24.9 million (31 December 2020: EUR 33.1 million).
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16Cashflow and investments
in EUR million 3M/2021 3M/2020 change
Cash flow from operating activities 10.0 6.5 53.8%
Cash flow from investing activities -1.8 -5.7 -68.4%
Free cash flow 8.2 0.8 --
Cash flow from financing activities 0.0 0.0 --
The deliberate investment restraint is temporary.
Free cash flow underlines good liquidity position of the company.
Cash and cash equivalents amounted to EUR 34.8 million on 31 March 2021.
17
17Outlook 2021
Nabaltec expects revenue growth in a range of 6% to 9% for the year 2021. Nabaltec expects an EBIT margin in the range of 8% to
10%. The forecast is based on the assumption that the economy and the industries relevant for Nabaltec will develop positively.
At the time of preparing the outlook at the end of February 2021, it is not yet clear how the further containment attempts of the
corona pandemic will affect the course of business. If this spreads, negative effects on the earnings situation cannot be ruled out.
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18Share
ISIN: DE000A0KPPR7
2020 trading volume:
average of 3,797 shares
per day
(2019: 4,454 shares)*
Baader Bank:
Buy, price target
EUR 38.00 (05/2021)
Hauck & Aufhäuser:
Buy, price target
EUR 36.00 (04/2021)
Shareholder structure:
28.20% Heckmann family
27.17% Witzany family
44.63% Free float
* All data XETRA; N = News, A = Ad-hoc 19
19COVID-19 pandemic and measures 2020
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.
Effects of the COVID-19 pandemic have weighed on the year 2020.
Development Nashtec - reduced capacity utilization due to the pandemic:
As announced in an ad-hoc release on 27 October 2020, Nabaltec will carry out an extraordinary depreciation on the book value fixed assets
at Nashtec, USA, in the consolidated financial statements for Financial Year 2020. Earnings are weighed down by EUR 23.7 million.
Opposed to this transaction are exchange rate gains from consolidation in other operating income amounting to EUR 1.1 million. The
background is the reduction of capacity utilization to below 50% at Nashtec LLC triggered by COVID-19 and the expected slower recovery of
sales volumes in the North American market in the years to come. In addition, there were value adjustments to inventories and non-recurring
expenses of EUR 2.7 million due to the discontinuation of the Mullit product range. In total, the non-recurring effects had a negative impact
on earnings of EUR 25.3 million.
The non-current effects have no impact on liquidity.
Cost-cutting measures were introduced, including a 12% reduction in working hours and corresponding compensation for all
employees and the Management Board, effective from April 2020 to October 2020. From November 2020 a 6.7% reduction in working
hours and compensation was agreed with the collective bargaining parties. In addition, all performance-related bonuses have been
eliminated for the 2020 Financial Year. In total, the savings in personnel costs in 2020 compared with the previous year amounted to
EUR 3.6 million.
20
20Corporate calendar
16 June 2021 Annual General Meeting
26 August 2021 Interim Report 2/2021
September 2021 Baader Investment Conference
November 2021 German Equity Forum Online
25 November 2021 Interim Report 3/2021
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21Nabaltec products make many
aspects of everyday life safer,
as well as being eco-friendly and
thereby an irreplaceable part of
your daily routine.
22
22Contact
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.
Version 27 May 2021
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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