Nabaltec_E_GB2016

T R O P E R T N E M E G A N A M D E T A D I L O S N O C 34 FINANCIAL REPORT investments, driven in particular by domestic housing construction. Investments in machinery, vehicles and other equipment were also higher (+1.7%). The net contribution of foreign trade, expressed as the difference between exports and imports, had a slightly negative impact on GDP of 0.1 percentage points in 2016. 2.1.2 INDUSTRY DEVELOPMENT The year 2016 was a difficult one for the German chemical industry. Production was up by a minimal amount (up 0.5%), but industry revenues were down to EUR 183 billion as prices fell by 3%. Investments remained stable at a high level, EUR 7.1 billion, and employment and ca- pacity utilization did as well (Source: VCI – Verband der Chemischen Industrie e.V.). Domestic revenues were down 4% from the year before, to EUR 71.5 billion, as chemicals orders from other industrial sectors were down sharply. Foreign business was slightly better, with revenues down 2.5% from the year before, to EUR 111.5 billion. The long-term trend of increasing demand remains intact The long-term trend of increasing demand for non-halogenated, flame-retardant fillers, and particularly aluminum hydroxide, remains intact. Independent forecasts expect worldwide de- mand to grow at a rate of 4.4% per year through 2023 (ATH-based; Source: Freedonia). Market growth is stimulated above all by the growing public awareness as to the need for fire safety as well as the ongoing replacement of potentially hazardous flame retardants with eco-friendly, halogen-free aluminum hydroxide. This trend has had a particularly positive effect on the fine precipitated aluminum hydroxide product segment. Nabaltec’s 2016 results improved upon its very strong performance in the previous year in all four quarters. The long-term prospects for boehmite, with its diverse array of applications, also remain strong in the estimation of Nabaltec AG. In the specialty oxide and reactive aluminum oxide segments, the refractory market is shaped by demand within the steel industry, which found itself in a difficult position on the whole in 2016. Nabaltec was able to counteract the continuingly weak demand in the steel industry through industry diversification. But market experts continue to expect an annual growth rate of around 4% for refractory products and technical ceramics through 2021 (Source: Roskill). 2.2 COURSE OF BUSINESS Nabaltec was able to continue its very strong performance from the year before in 2016 Nabaltec AG’s successful performance in the year before carried over into last year, as rev- enues in each quarter were up from the year before. On the year, consolidated revenues were EUR 159.2 million, up 5.2% from the year before (2015: EUR 151.3 million). Both business divi- sions contributed to the revenue growth in 2016. Revenues in the business division “Functional Fillers” were EUR 109.1 million in 2016, up 6.6% from the year before (EUR 102.3 million), while revenues in the business division “Technical Ceramics” were up 2.0%, to EUR 50.1 million (2015: EUR 49.1 million). This very strong and stable growth could not be realized to the same extent on the earnings side due to extraordinary effects in connection with the US subsidiary Nashtec, as well as an increase in pension reserves. The EBIT margin (EBIT as a percentage of total performance) was 7.7%, down from 9.5% in the same period of the year before. Because of the extraordinary developments for Nabaltec AG at the beginning of the year 2016, the company did not issue any quantitative forecasts in last year’s report for the reporting period. The forecasts for investment and financing activities were met in 2016. |||| Nabaltec AG | Annual Report 2016

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