Five Years Business Plan

Hedging Highlights

Monbat group aims to increase EBITDA in 5 years horizon reaching 36.5 m EUR from the existing business operations as well as realize new strategic projects with an incremental EBITDA effect of app 33 m EUR with a total combined effect of 69.5 m EUR in year 2023. 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 with respect to starter and commercial fleet batteries and by utilizing full production potential of the commercial fleet production facility.
    • 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 36.5m EUR.
  • Enforcing strategic projects, which drives both the scaling up of the existing business model as well as bringing completely new sources of margin - niche diversification in recycling, focused diversification in high power lithium-ion batteries. This path will inevitably bring sizable part of the indented overall growth – app. 33 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.

2019-2023 Five Years growth pace

CORE BUSINESS - ORGANIC GROWTHMeasure

2017 Actual

2018 Actual Unadited20192020202120222023
Volumes        
BatteriesPcs2,567,5482,886,7253,433,4213,711,5814,027,7294,345,4764,487,340
Volume Pieces Growth %Pcs11.65%19.77%8.10%8.52%7.89%3.26%
Lead & Lead Alloys - Harris Process (Antimony and High Tin Alloys) - Third Party SalesMT7.7942.7593.5153.5153.5153.5153.515
Lead & Lead Alloys - Intercompany ProductionMT38.76834.92943.36452.78957.43758.15058.148
Consolidated RevenueEUR '000160,120150,288172,639185,770203,146220,227225,918
Consolidated Gross Profit (without amortisaton expense)EUR '00037,10030,81539,68847,00452,13655,58956,728
Consolidated Gross Profit %%23%21%23%25%26%25%25%
Consolidated EBITDA - continuing OperationsEUR '00020,05112,29220,59928,37332,94935,72836,562
Consolidated EBITDA %%8%12%15%16%16%16%
EBITDA Organic growth rate%-39%68%38%16%8%2%
STRATEGIC PROJECTSEUR '0002,6009,20019,60029,73033,010
Scale through acquisitionEUR '0002,6007,80013,70018,03020,810
Niche diversification in recyclingEUR '000--3,4003,7004,200
Focused diversification in lithium-ion batteriesEUR '000-14002,5008,0008,000
PLANSEUR '000
MONBAT GROUP "BASE PLAN"EUR '00020,59928,37332,94935,72836,565
MONBAT "BEST CAN DO" PLANEUR '00023,19937,57352,54965,45869,575
EBITDA accumulated growth pace %89%62%40%25%6%

*(un-audited)

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

  • LME 1 800; 
  • 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 expected increase of lead and lead alloys produced is in line with the acquisition of Piombifera Italiana.
  • LME factored battery price increases to partially offset the lower gross contribution realized in the recycling division due to the lower levels of the LME index as compared to prior period.
  • It is envisaged that lead and lead alloys sales to third parties during the 2019-2023 will be predominantly related to the sales of Antimony lead and Lead high in Tin (both by products of the Harris process) as the internal lead requirements will be high.
  • It is expected that EAS batteries will decrease the amount of group support for their operational expenses to 1.3m EUR by re-gaining some of the legacy business as well as achieving early commercialization of the new product range, which will be introduced to the market in Q2 2019.
Attached