Five Years Business Plan

Hedging Highlights

Monbat Group aims to increase EBITDA in 5 years horizon reaching 39.903 m EUR from the existing business operations as well as realize new strategic projects with an incremental EBITDA effect of app. 17.796 m EUR with a total combined effect of 57.699 m EUR in year 2026. This envisaged extensive growth will be driven by two concurrent paths, namely:

  • 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 focusing on improving the production capacities of the recycling division and thus maximizing the manufacturing of lead and alloys and and therefore reaching complete coverage of the production needs for the battery business segment.
    • 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.
    • By consolidating the current results of Nour in the short-term through existing battery and lead recycling facilities and client base and by increasing battery and recycling capacities and targeted client base thereafter.
    • This path will bring the group EBITDA to the level of 39.903 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. 17.796 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.

2022-2026 Five Years growth pace

CORE BUSINESS - ORGANIC GROWTHMeasure2020 Actual2021 Actuals2022 B2023 B2024 B2025 B2026 B
Volumes     
BatteriesPcs3,077,9713,429,2343,588,7224,051,1164,271,4864,522,5184,770,759
PlatesPcs139,652------
Volume Pieces Growth %Pcs-3.05%11.41%4.65%12.88%5.44%5.88%5.49%
Lead & Lead Alloys - Harris Process (Antimony and High Tin Alloys) - Third Party SalesMT3,343369531434446438429
Lead & Lead Alloys - Third Party ProductionMT-2,1615,8332,0561,152--
Lead & Lead Alloys - Intercompany ProductionMT44,94543,95149,85554,22856,33156,63757,046
Consolidated RevenueEUR '000157,085193,760227,960231,453243,258255,788271,294
Consolidated Gross Profit (without amortisaton expense)EUR '00039,62047,44953,75259,36162,35665,05468,171
Consolidated Gross Profit%25%24%24%26%26%25%25%
Consolidated EBITDAEUR '00016,63223,03227,80332,11834,52937,54239,903
Adjustments for impairment of financial assets/liabilities and provision for reutilization of separatorEUR (000)1,730654-----
Consolidated normalized EBITDAEUR (000)18,36223,68627,80332,11834,52937,54239,903
Consolidated normalized EBITDA %%12%12%12%14%14%15%15%
Normalized EBITDA Organic growth rate%-1%29%17%16%8%9%6%
STRATEGIC PROJECTS EBITDAEUR '000-85856,31417,79617,796
Bipolar batteries productionEUR '000-85854,2539,2969,296
Focused diversification in lithium-ion batteries   EUR '000---2,0618,5008,500

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

  • LME 1 900.
  • 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, the acquisition of Societe Nouvelle des Accumulateurs Nour 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 and Societe Nouvelle des Accumulateurs Nour.
  • It is envisaged that lead and lead alloys internal consumption will be completely covered by the recycling plant during the period 2022 – 2026 and the surplus of produced quantities will be sold to third parties.
  • It is expected that EAS batteries will continue to show positive results by focusing on providing developing work contracts to third parties as a lucrative cash-generating business stream and by commercialization of the new product range.
Attached