Five Years Business Plan

Hedging Highlights

Monbat group aims to increase EBITDA in 5 years horizon reaching 35.020 m EUR from the existing business operations as well as realize new strategic projects with an incremental EBITDA effect of app 34.140 m EUR with a total combined effect of 69.160 m EUR in year 2025. This envisaged extensive growth will be driven by two concurrent paths, namely:

  • Organic growth of the current business model:
    • By focusing on market expansion in new geographical areas in starter, stationary and commercial fleet batteries through the utilization of full production capacity of the facilities and an increase in the client portfolio.
    • By leveraging the existing sourcing potential of the core scrap batteries markets as well as the Italian market to further increase the internal production of lead and lead alloys, thereby bringing additional gross contribution effect.
    • This path will bring the group EBITDA to the level of 35.020 m EUR.
  • Enforcing strategic projects, which drives both the scaling up of the existing business model as well as bringing completely new sources of margin - e.g. focused diversification in high power lithium-ion and bipolar batteries. This path will inevitably bring sizable part of the indented overall growth – app. 34.140 m EUR.

The intended strategic projects represent the foreseen EBITDA upside. Once, a strategic project is completely operationalised, it will be presented as part of the budget of the core business activities.

2020-2025 Five Years growth pace

CORE BUSINESS - ORGANIC GROWTHMeasure

2019 Actual

2020 Actual20212022202320242025
Volumes        
BatteriesPcs3,174,7983,077,9713,397,4733,573,1443,758,6993,954,7594,161,988
Plates converted to batteriesPcs542139,652
Volume Pieces Growth %- 3.05%10.38%5.17%5.19%5.22%5.24%
Lead & Lead Alloys - Harris Process (Antimony and High Tin Alloys) - Third Party SalesMT5,2123,343-----
Lead & Lead Alloys - Third Party ProductionMT--2,4002,400---
Lead & Lead Alloys - Intercompany ProductionMT37,17144,94546,53456,06656,01956,63657,293
Consolidated RevenueEUR '000170,652157,085171,256181,311186,249197,091208,625
Consolidated Gross Profit (without amortisaton expense)EUR '00039,17039,62046,22351,61753,28955,69158,200
Consolidated Gross Profit %%23%25%27%28%29%28%28%
Consolidated EBITDA - continuing OperationsEUR '00018,56818,36224,01129,85731,07833,10635,020
Consolidated EBITDA %%11%12%14%16%17%17%17%
EBITDA Organic growth rate%- 1%31%24%4%7%6%
STRATEGIC PROJECTSEUR '000-4,15010,52020,35934,140
Scale through acquisition (NOUR)EUR '000-4,2354,7195,7896,341
Bipolar batteries productionEUR '000-- 855,80112,50919,299
Focused diversification in lithium-ion batteriesEUR '000---2,0618,500
PLANSEUR '000
Rock Bottom Core BusinessEUR '00021,16022,25123,03323,09823,506
Base Plan Core BusinessEUR '00024,01129,85731,07833,10635,020
Ambition Plan Core BusinessEUR '00027,25733,68137,96342,12946,816
EBITDA accumulated growth pace (Base Plan Core / Rock Bottom)EUR '00088%75%74%70%67%
EBITDA accumulated growth pace (Ambition / Base Plan Core)EUR '00088%89%82%79%75%

Performance DriversThe core business budget is built on the following drivers, namely:

  • LME 1 700.
  • Increasing the volume levels of both batteries sales and lead and lead alloys produced for internal consumption.
  • The expected increase in battery sales is supported by the development of several new geographical markets and modest production capacity increase.
  • The expected increase of lead and lead alloys produced is in line with the increase of the operational activity of Piombifera Italiana.
  • It is envisaged that lead and lead alloys sales to third parties during the 2021-2025 will be transformed in internal use due to increase in group consumption needs.
  • It is expected that EAS batteries will decrease the amount of group support for their operational expenses and ultimately reach break-even levels by focusing on commercialization of the new product range, as well as by securing several developing work contracts.
Attached