Nabaltec AG confirms preliminary 2019 data showing growth in revenues and earnings; 2020 off to a modest start

• Revenues up 1.3% in 2019, to EUR 179.0 million
• EBIT of EUR 18.6 million in 2019 (2018: EUR 18.5 million) for an EBIT margin of 10.2%
• 2020 forecast suspended due to unforeseeable impact of the coronavirus pandemic
• Proposed dividend cut from EUR 0.20 per share to EUR 0.15 per share

Schwandorf, 30 April 2020 - Nabaltec AG published its consolidated financial statements for the 2019 Financial Year today, in which it confirmed the preliminary figures it announced in March 2020. Consolidated revenues were up slightly, climbing 1.3% to EUR 179.0 million (2018: EUR 176.7 million). Operating profit (EBIT) amounted to EUR 18.6 million in 2019, up from EUR 18.5 million in the previous year (up 0.5%). Nabaltec AG posted an EBIT margin (EBIT as a percentage of the total performance of EUR 181.7 million) of 10.2%.

Revenues in the "Functional Fillers" product segment amounted to EUR 122.2 million in 2019, up 6.6% from the previous year (2018: EUR 114.6 million). The boehmite product range grew at an even faster pace, with revenues up 54.3% from the previous year. Revenues in the "Specialty Alumina" product segment came to a total of EUR 56.8 million in the 2019 Financial Year, for a clear 8.5% drop from the previous year (2018: EUR 62.1 million).

"The very clear slump in revenues in the fourth quarter of 2019, particularly in the month of December, halted our growth in 2019, which was a strong year overall," said Johannes Heckmann, CEO of Nabaltec AG. "The weak economic environment in some sectors and expectations that prices will drop in 2020 caused sales to slump unexpectedly in both product segments. Sales started to pick up at the start of 2020, but prices were down. As of the end of the quarter, the global coronavirus pandemic and the economic shutdown in many countries have caused conditions to worsen considerably once again, especially in the 'Specialty Alumina' product segment."

According to preliminary data, Nabaltec AG posted revenues of EUR 45.4 million in the first quarter of 2020, compared to EUR 48.5 million in the same period of last year. Revenues in the "Functional Fillers" product segment amounted to EUR 31.7 million, down from EUR 32.5 million in the same quarter of last year. Revenues in the "Specialty Alumina" product segment were EUR 13.7 million, down from EUR 15.9 million in the same period of last year. Operating profit (EBIT) in the first quarter of 2020 comes to EUR 2.5 million according to preliminary data, down from EUR 5.8 million in the same period of last year, for an EBIT margin (EBIT as a percentage of total performance) of 5.9%. EBITDA in the first quarter of 2020 amounted to EUR 6.1 million according to preliminary data.

The year got off to a somewhat modest start, and customer orders in the first quarter of 2020 were volatile and tended to be short-term in nature. The intensified policy measures which have been taken all over the world in an effort to contain the coronavirus pandemic and the associated uncertainty, with the economic impact unforeseeable, are having a negative impact on Nabaltec's business. In light of this situation, and the fact that the further development of the pandemic and the associated negative impact on customer demand, supply chains and production are currently unforeseeable, Nabaltec AG's Management Board has suspended the forecast for Financial Year 2020, which was published on 5 March 2020.

"In the current environment, we are unable to provide a concrete and, above all, reliable forecast for 2020 as a whole," said CEO Johannes Heckmann. "What counts right now are sensible measures to counteract the negative impact of the crisis. Accordingly, Nabaltec AG has taken measures to cut costs, such as cutting working hours by 12% for all employees and Management Board members effective April 2020, with a corresponding reduction in pay. We believe that Nabaltec is well-positioned to survive this global crisis in terms of capital and liquidity. In the fourth quarter of 2019, Nabaltec ensured its ability to repay the first tranche of the 2015 loan against borrower's note, in the amount of EUR 31 million, which is due in April 2020."

In a further effort to conserve liquidity, the company will recommend a dividend payout of EUR 0.15 per share to the shareholders, after previously recommending a payout of EUR 0.20 per share.

Note: The 2019 Annual Report and the 2019 Financial Statements for Nabaltec AG are available for download in the Investor Relations section of www.nabaltec.de.

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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