Nabaltec AG posts continued growth in 2018 according to preliminary data and provides outlook for 2019

• Total revenues up 4.8% in 2018, to EUR 176.7 million.
• EBIT of EUR 18.5 million (2017: EUR 18.3 million) with an EBIT margin of 10.4%.
• US subsidiary Nashtec will once again undertake full responsibility for supplying US customers as of the second quarter of 2019.
• Outlook for 2019: revenues in a range from EUR 190 million to EUR 195 million, EBIT margin in a range from 10.0% to 12.0%.

Schwandorf, 27 February 2019 - Nabaltec AG posted growth once again in Financial Year 2018, according to preliminary data. Consolidated revenues were EUR 176.7 million, up 4.8% from the year before (2017: EUR 168.6 million), as revenues in each quarter of the year were up from the same quarter of the year before. Operating profit (EBIT) amounted to EUR 18.5 million in 2018 according to preliminary data, up from EUR 18.3 million in the year before. The company posted an EBIT margin (EBIT as a percentage of total performance) of 10.4% and earnings before interest, taxes and depreciation (EBITDA) were up 2.0%, from EUR 30.0 million to EUR 30.6 million.

"Despite the challenges which last year held, we were able to continue our successful performance from previous years and once again post revenue growth in the mid-single digits. We slightly exceeded our forecasted EBIT margin," said Johannes Heckmann, CEO of Nabaltec AG. "Many of the factors which helped us compensate for the temporary loss of the revenues and earnings contributed by our US subsidiary Nashtec in 2018 are of a lasting nature, such as improvements in our product mix, which has shifted towards higher-margin products."

Both product segments, "Functional Fillers" and "Specialty Alumina," contributed to the company's strong revenues in 2018. Revenues in the "Functional Fillers" product segment amounted to EUR 114.6 million in 2018, up 2.1% from the previous year (2017: EUR 112.2 million). The "Specialty Alumina" product segment earned EUR 62.1 million in revenues in Financial Year 2018, for a strong gain of 10.1% over the previous year (2017: EUR 56.4 million). This growth was largely driven by price increases and positive developments in the product mix for both product segments, as well as volume effects in the "Specialty Alumina" product segment.

Nabaltec AG was also able to get off to a good start in 2019. Nashtec resumed production at the end of 2018 and will be assuming full responsibility for supplying US customers starting in the second quarter of 2019 with increased capacity in the US, freeing up capacity for non-halogenated flame-retardant fillers at the Schwandorf site. In addition, Naprotec LLC is currently expected to begin production of refined hydroxide in the second half of 2019, with a capacity of about 30,000 tons per year. Nabaltec expects to see a positive net impact on consolidated results one year after the plant goes online.

Assuming stable economic performance, Nabaltec therefore expects revenues in a range from EUR 190 million to EUR 195 million in 2019 and an EBIT margin in a range from 10.0% to 12.0%.

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 halogen-free 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 and the refractory industry. Unlike halogenated flame retardants, flame retardant fillers contain no hazardous substances and do not require separate disposal. Rather, they actually decrease the development of fumes hazardous to human health and the environment in the event of fire. 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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