Equity Case

Source of wealth for TTM Q2 2026:

TThe Group actively analyses and manages the risks associated with the impact of macroeconomic, geopolitical and market factors on its financial performance.

Analysis of risks, measures undertaken and financial performance:

In the first half of 2026, the Group reported a 4.4% decrease in revenue from battery sales, primarily as a result of lower lead market prices (see below), despite a 1.5% increase in the volume of batteries sold compared to the corresponding period. The Group also reported a 25% increase in sales of batteries and raw materials used in their production (lead plates) by Nour Industrial Group Tunisia to customers in Tunisia and North Africa.

In addition to the Group’s core business – the manufacture and sale of batteries – the other business segments of Monbat Group recorded sales growth in 2026, as follows:

A 6% increase in sales of lead and lead alloys by the Group’s recycling plants to third parties. During the reporting period of 2026, the Group’s recycling companies sold more than 4,500 tonnes of lead and lead alloys to third parties.

A 14% increase in revenue generated by the companies within the Group’s Lithium-Ion Division.

Higher revenue from consulting, engineering and logistics services provided by Group companies.

As a result of market volatility, the average market price of lead in 2026 was approximately EUR 1,665/MT (2025: EUR 1,795/MT). Although the Group traditionally addresses market volatility and the dependence of lead prices on commodity market indices by applying standard indexation mechanisms to the selling prices of its products, as well as to purchases of lead-containing raw materials, during the first half of 2026 the Group recorded a negative impact on profitability compared to the corresponding period of 2025 as a result of the aforementioned decline in lead prices.

At the end of 2025, Monbat AD signed an agreement to acquire the minority interest in Société Nouvelle des Accumulateurs Nour, representing 40% of the share capital of the Tunisian company. Upon completion of the transaction, Monbat AD will hold 100% of the share capital of Nour Industrial Group Tunisia. The total transaction value amounts to EUR 9.053 million, payable in three instalments. In June 2026, Monbat AD acquired 17.78% of the share capital of the Tunisian company and made the first cash payment amounting to EUR 4.053 million. Pursuant to the signed agreement, the remaining shares are expected to be acquired at the end of 2026 and at the end of 2027 against two equal payments of EUR 2.5 million each. In addition, and as part of the Group’s strategy to obtain full control over its operations in Tunisia, Société Nouvelle des Accumulateurs Nour acquired from the minority shareholder a 49.14% interest in Société Nour Recycling, thereby increasing its ownership to 100% of the company’s share capital, for a consideration of EUR 1.987 million. Of this amount, EUR 760 thousand was paid in June 2026, while EUR 1.227 million was recognised under “Other liabilities” in the interim condensed consolidated statement of financial position as at 30 June 2026.

In April 2026, the Group acquired a 60% interest in the UK-based company Alpha House Ltd. through a cash capital contribution of EUR 459 thousand to the acquired entity. Alpha House Ltd. is a distributor of stationary batteries with an established customer network, including leading telecommunications companies in the United Kingdom. Based on the preliminary assessment of the fair value of the identifiable net assets of the acquired company, the Group identified and recognised intangible assets amounting to EUR 871 thousand, representing a customer network comprising multiple distributors operating in the UK stationary battery market. The amounts stated are provisional and remain subject to adjustment within the measurement period permitted under IFRS 3, of up to one year from the acquisition date. The Group recognised a bargain purchase gain of EUR 280 thousand, presented under “Gain from investments” in the interim condensed consolidated statement of profit or loss as at 30 June 2026.

The Group continuously assesses all potential impacts of changing microeconomic and macroeconomic conditions on its future financial position and operating performance. Inflationary pressures, reflected in higher direct material and labour costs per unit of production, have a significant impact on the Group’s operations. The Group has been able to mitigate the effects of these adverse macroeconomic developments by optimising its customer and product mix, with a focus on higher-margin products and markets, and by applying selling price indexation to specific product groups for its customers.