EQS-Adhoc: IBU-tec advanced materials AG: IBU-tec lowers forecast for 2024 due to weak economic activity in the chemical sector

Disclosure of inside information pursuant to Article 17 of Regulation (EU) No 596/2014

IBU-tec lowers forecast for 2024 due to weak economic activity in the chemical sector

• Group subsidiary BNT Chemicals with EBITDA of approx. EUR -2.0 million significantly below plan
• Group revenues of EUR 50.0 - 52.0 million slightly above previous year / EBITDA of EUR 0.7 - 1.0 million significantly below previous year
• Restructuring initiated at BNT / Turnaround planned with positive result in 2025
• Growth path in the Battery Materials business area remains fully intact

Weimar, 19. November 2024 – The continued weak economy in the chemical sector and thus a business development at the Group subsidiary BNT Chemicals GmbH ("BNT") that is clearly below plan are forcing IBU-tec advanced materials AG ("IBU-tec", ISIN: DE000A0XYHT5) to lower its full-year forecast for 2024 for sales and earnings within the Group as well. In terms of earnings in particular, BNT will clearly miss the targets for the full year 2024 and achieve an EBITDA of around EUR -2.0 million. BNT's EBITDA is therefore around EUR 3.0 million worse than planned. Accordingly, EBITDA in the IBU-tec Group is now expected to be EUR 0.7 - 1.0 million for the full year 2024 and thus significantly below the previous year's figure of EUR 3.0 million (original forecast: EBITDA increase of 40 - 45%). At EUR 50.0 - 52.0 million, Group revenue for the full year 2024 is now expected to be only slightly above the previous year's figure of EUR 48.3 million (forecast: revenue increase of around 25%). For the full year 2024, IBU-tec expects a positive operating cash flow. The equity ratio is expected to be in a range of 67 – 69% at the end of the year.

Against the backdrop of the continuing negative development at BNT, the Management Board has initiated a strategic restructuring of BNT, in which BNT's product portfolio, value chain, cost structure and position in the Group will be subject to a comprehensive review. In the field of glass coating, for example, BNT will no longer carry out its own production based on organotin materials until further notice. This takes into account the ongoing price pressure for glass coating products and the unsatisfactory price situation for the necessary organotin raw materials. New tin organic free products are being launched on the market and are already in demand from the first international customers. Significant savings in personnel and material costs have also already been initiated at BNT, which will lead to significantly positive earnings effects from the 2nd quarter of 2025. Based on the measures already taken, IBU-tec expects BNT's sales in the coming year to be below the level of 2024, but again to make a clearly positive contribution from BNT to the consolidated result.

IBU-tec's growth path in the field of battery materials remains intact. This is underpinned by the recently announced development and production orders from a global automotive group with a volume in the mid-single-digit million euro range. Accordingly, IBU-tec invested around EUR 1.0 million more than originally planned in this area in the 2024 financial year. The positive development in the battery sector has continued in recent months and is continuing.

Due to the current significant change in the share of sales of the individual business areas, the IBU-tec Management Board is currently revising its plans for 2025 and beyond. The Management Board assumes that the unsatisfactory overall development in the 2023 and 2024 financial years will be overcome as early as next year.

EXPLANATORY SECTION

Jörg Leinenbach, CEO of IBU-tec: "We will not be able to implement the planned increases in sales and earnings in the IBU-tec Group in 2024 because the burdens caused by the negative business development at BNT Chemicals continue and are too great. We have therefore set up a restructuring program so that BNT can operate profitably again in the future, even in a weak chemical economy and in a challenging competitive environment. We are working very well and trustingly with the new management of BNT. It is already evident that the expected positive effects of the measures will materialize, so that BNT's dent will be overcome as early as 2025, at least in terms of earnings."

Ulrich Weitz, CPO of IBU-tec: "Fortunately, our battery business is not affected in any way by the negative effects of BNT. On the contrary, we see a positive development in battery materials and assume that the intense interest in our products from battery cell manufacturers, energy storage producers and automotive companies will manifest itself in further larger orders and collaborations in the near future."

The Board of Directors of IBU-tec will present the company at the German Equity Forum on November 26, 2024.

About IBU-tec

The IBU-tec Group develops and produces innovative materials of the highest quality for industry. In doing so, it combines unique, partly patent-protected thermal process technology with the process and material know-how of around 230 highly qualified employees.

The company's own products include LFP battery material, which is an important component of batteries for electromobility and stationary energy storage, as well as solutions for air purification, resource conservation and the reduction of plastic packaging. IBU-tec is thus positioned in the long term in global megatrends – especially climate and environmental protection – and has an international customer base ranging from innovative medium-sized companies to global corporations.

Contact

edicto GmbH
Axel Mühlhaus
Eschersheimer Landstraße 42-44
60322 Frankfurt
t +49 69 905505-52
IBU-tec@edicto.de

2033433  19-Nov-2024 CET/CEST