IBU tec advanced materials : tec Semi-Annual Report 2023

SEMI-ANNUAL REPORT 2023

SMART PROCESS SOLUTIONS & PRODUCTS

2

KEY FIGURES

FOR THE PERIOD
FROM 1 JANUARY
TO 30 JUNE 2023
			Changes
	in € thousand			2023 vs. 2022
		H1 2023	H1 2022	+/-
	Revenues	25,278	29,551	-17%
	therefrom Engineering	605	467	+23%
	therefrom Specialty Chemicals	9,379	14,846	-58%
	therefrom Service & Recycling	4,749	5,005	-5%
	therefrom Glass Coating	7,189	7,276	-1%
	therefrom Battery Materials	3,356	1,957	+42%
Total Output	28,562	33,816	-18%
	EBITDA	2,857	3,738	-31%
	EBITDA Margin	11.3%	12.6%
	EBIT	504	1,422	-182%
	EBIT Margin	2.0%	4.8%
	EBT	326	1,292	-297%
	EBT Margin	1.3%	4.4%
	Net Result	373	491	-32%
	Earnings per Share (in €)	0.08	0.10	-32%
	Balance Sheet Total	81,571	77,052	+6%
	Equity	59,562	58,593	+2%
	Equity Ratio Based on Economic Capital (in %)	73.0%	76.0%
	Cash and Cash Equivalents	1,864	4,768
	Operating Cash Flow	-1,852	-4,837
	Cash Flow from Investments	-4,621	3,064
	Free Cash Flow	-1,263	-4,837
	Employees (excluding Apprentices) - Annual Average	227	214	+6%
	Revenue per Employee	111	138	-24%

3

CONTENT

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Disclaimer

This report may contain forward-looking statements that are based on assumptions and are subject to unforeseeable risks and uncertainties. Various factors may cause actual results, developments or events to differ materially from those expressed in such forward-looking statements. The company is under no obligation to update this report or the forward-looking statements contained therein. Due to rounding differences, it is possible that differences may occur in the summation of individual items compared to the totals stated and for this reason, percentages may not reflect the exact development of absolute figures.

1. HIGHLIGHTS
2. FOREWORD

1. INTERVIEW WITH THE CEO

1. ESG AT IBU-TEC - FOCUS ON SUSTAINABILITY
2. IBU-TECON THE CAPITAL MARKET

13 INTERIM GROUP MANAGEMENT REPORT

25 INTERIM CONSOLIDATED FINANCIAL STATEMENTS

30 NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

36 FINANCIAL CALENDAR / IMPRINT

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HIGHLIGHTS

Battery subsidiary established: The wholly owned subsidiary IBUvolt battery materials GmbH will focus on the development, production and sale of battery materials. The company's managing director is IBU-tecfounder Ulrich Weitz.

New major customer from Asia: An international generics manufacturer orders around 100 tons of a chemical catalyst for the production of blood pressure medication. This further strengthens IBU-tec'sposition as a supplier of high-qualitycatalysts to the pharmaceutical industry. Sales are expected to be in the single-digit million-eurorange.

January	March	May
February	April	June

Completion of the new glass coating facility: The new plant enables IBU-tecsubsidiary BNT Chemicals to double its production capacity for MBTC to around 1,000 tons per year. After com- missioning, a capacity increase of 55 percent compared to 2022 is already planned for the current year. The plant is expected to be fully utilized by 2025.

Order from a global automotive company: IBU-tecdevelops and produces battery material for electrically powered passenger cars for a major international cus- tomer. After the development phase, the production of significant quantities of the material at the Weimar site is already planned for the second half of 2023.

Further business expansion in Asia: The focus is on technologically demanding, high-marginindustries with high value-addedpotential, such as the automotive and pharmaceutical industries. A Chinese automotive supplier orders several tons of cathodic dip coating materials.

Milestone in development project: As part of a partnership with an international commercial vehicle manufacturer, IBU-tecachieved first promising results in the development of a new cathode active material.

5

FOREWORD

Dear Shareholders, Customers and Employees,

The first six months of the year were marked by macroeconomic challenges for the IBU-tec Group: High interest rates and various inflationary price increases, recessionary fears and supply uncertainties have left their mark in recent months, particularly on industrial companies, especially in the chemical sector. As a result, our sales of EUR 25.3 million in the first half of 2023 were below the previous year's figure of EUR 29.5 million, which was also due to falling tin prices. Our EBITDA amounted to EUR 2.9 million, compared to EUR 3.7 million in the first half of 2022. At 11.3 percent, the EBITDA margin was above our forecast of 10.4 to 10.6 percent for this year.

Strategically, we used the period as planned and made significant progress in expanding our market position and growth strategy. With a multi-pillar business model that includes other growth areas in addition to our two drivers, LFP battery material and glass coating, we believe we are very well positioned for long- term and sustainable positive development. In the first half of the year, we achieved important milestones in our growth markets and gained some new international key customers.

Jörg Leinenbach

CEO

During the reporting period, we received a development and production order for LFP battery material from a global automotive manufacturer. The plan is to develop a new type of LFP cathode material for e-mobility customers. Following the development phase, we will produce this material at our Weimar site in the second half of the year. This partnership shows once again how much our battery expertise is in demand in the market, especially from large global players. This is reflected in the figures: with an increase in sales of around 71 percent, the battery sector in the first half of 2023 was significantly higher than in the same period of the previous year.

But we are also diversified and serving future markets with other innovative IBU-tec products, such as the glass coating product MBTC or in the fast-growing recycling sector. At the beginning of the year, we completed our new glass