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Monbat Group aims to increase EBITDA in 5 years horizon reaching 41.741 m EUR from the existing business operations as well as realize new strategic projects with an incremental EBITDA effect of app. 6.815 m EUR with a total combined effect of 48.556 m EUR by year 2027. This envisaged extensive growth will be driven by two concurrent paths, namely:
- Growth of the current business model:
- By focusing on market expansion in term of increase of volumes sold, improved product mix (focus on higher margin battery types) and new export markets in the Battery Division through the utilization of full production capacity of the facilities in Bulgaria and an increase in the client portfolio.
- By reaching maximised capacity and unlocking the potential of optimizations and efficiencies in our battery manufacturing plant in Tunisia over the 5-year horizon by increasing local market share and significant increase in export volumes.
- By focusing on improving and increasing the production capacities of the Group recycling plants and cost optimization recycling technologies, including investing in new energy-saving production installations, and thus maximizing the manufacturing of lead and alloys and maintaining complete coverage of the increasing production needs for the battery business segment.
- By leveraging the existing sourcing potential of the core scrap batteries markets in Europe to further increase the internal production of lead and lead alloys, thereby bringing additional gross contribution effect.
- By covering the local needs of lead and alloys in Tunisia through the operational process of a newly build modern end-to-end recycling facility.
- By scaling of the support activities to the Core business, incl. own production of carbon nano tubes, in-house transportation services and direct distribution channels in some markets.
- This path will bring the group EBITDA to the level of 41.741 m EUR.
- Enforcing strategic projects, which drives both the scaling up of the existing business model as well as bringing completely technologies and sources of margin - e.g. focused diversification in bipolar batteries that will bring up to 6.815 m EUR of incremental EBITDA once full capacity of commercial production in achieved Once, the strategic project for bipolar battery manufacturing is completely operationalized, it will be presented as part of the budget of the core business activities.
2023-2027 Five Years growth pace
| CORE BUSINESS - ORGANIC GROWTH | Measure | 2021 Actual | 2022 Actual | 2023 B | 2024 B | 2025 B | 2026 B | 2027 B |
|---|---|---|---|---|---|---|---|---|
| Volumes | ||||||||
| Batteries sold - Monbat | Pcs | 3,417,540 | 2,649,040 | 2,950,605 | 3,229,681 | 3,486,932 | 3,708,886 | 3,895,288 |
| Batteries sold - Nour | Pcs | - | 222,000 | 429,173 | 555,478 | 708,334 | 879,778 | 984,978 |
| Batteries sold, pieces - Total Group | Pcs | 3,417,540 | 2,871,040 | 3,379,778 | 3,785,159 | 4,195,266 | 4,588,664 | 4,880,267 |
| Volume Pieces Growth (batteries only) | % | 11.0% | -16.0% | 17.7% | 12.0% | 10.8% | 9.4% | 6.4% |
| Lead & Lead Alloys - Intercompany Production | MT | 44,275 | 39,956 | 44,157 | 44,575 | 49,626 | 52,578 | 54,912 |
| Lead & Lead Alloys - Third Party Production | MT | 2,161 | 3,591 | 4,716 | 3,000 | - | - | - |
| Lead & Lead Alloys - High Antimony and Tin Alloys - Third Party Sales | MT | 369 | 946 | 457 | 400 | 403 | 428 | 441 |
| Consolidated Revenue from Continuing Operations | EUR '000 | 187,829 | 192,133 | 225,727 | 235,065 | 250,851 | 271,566 | 289,399 |
| Consolidated Gross Profit from Continuing Operations (without depreciation expense) | EUR '000 | 45,525 | 41,620 | 55,178 | 59,558 | 64,456 | 68,962 | 72,926 |
| Consolidated Gross Profit from Continuing Operations | % | 24.2% | 21.7% | 24.4% | 25.3% | 25.7% | 25.4% | 25.2% |
| Consolidated EBITDA from Continuing Operations | EUR '000 | 23,056 | 17,696 | 27,521 | 31,645 | 35,459 | 38,920 | 41,741 |
| Adjustments for impairment of financial assets | EUR (000) | 654 | 246 | - | - | - | - | - |
| Consolidated Adjusted EBITDA from Continuing Operations | EUR (000) | 23,711 | 17,942 | 27,521 | 31,645 | 35,459 | 38,920 | 41,741 |
| Consolidated Adjusted EBITDA from Continuing Operations | % | 12.6% | 9.3% | 12.2% | 13.5% | 14.1% | 14.3% | 14.4% |
| Adjusted EBITDA from Continuing Operations - Organic growth rate | % | 33% | -23% | 56% | 15% | 12% | 10% | 7% |
| STRATEGIC PROJECTS EBITDA | ||||||||
| Bipolar batteries production | EUR '000 | - | - | - | (842) | 2,899 | 6,815 | 6,815 |
Performance DriversThe core business budget is built on the following drivers, namely:
- LME price of Lead is assumed at 2 000 EUR per ton.
- 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 Nour Group in Tunisia and modest production capacity increase and restoring market position.
- The expected increase of lead and lead alloys produced is in line with the increase of the operational activity of Piombifera Italiana and the newly build end-to-end recycling facility in Tunisia.
- It is envisaged that lead and lead alloys internal consumption will be completely covered by the recycling plant during the period 2023 – 2027 and the surplus of produced quantities will be sold to third parties.
Attached
2023-2027 5 Years growth pacexlsx22.94KB
12/05/2023