va-Q-tec AG

Earnings Release • Mar 22, 2020

va-Q-tec AG FY 2019 Earnings Release

March 27th, 2020

• Highlights and Business Update
• Financial Performance FY 2019

Today's presenters

• Outlook 2019
• Q&A

Dr. Joachim Kuhn (CEO) Stefan Döhmen (CFO)

CoVid-19 Status at va-Q-tec

• Crisis is a potential catalyst for more secure TempChain transportation, as many pharma goods require reliable transport solutions with stable temperatures
• TempChain Service Network up and running, all customer orders could be fulfilled
• VQT TempChain logistic is mission critical to pharma players
• The passenger flight ban has also cut almost 50% of the air cargo volume. Thus flights are rare and charges are high. Life sciences goods have a strict priority
• CoVid-19 task forces set up, assessing the situation along the value chain; Daily Briefings with situation updates and decisions
• As of today, production and services operations stable and continue in all plants and network stations
• We have increased our safety stock; fully integrated value chain also pays off

Cabin of China Eastern passenger plane filled with medical supplies to Prague from China

va-Q-med boxes, e.g. for Last-mile delivery of vaccines

va-Q-tec with a very successful FY 2019

Strong growth performance Revenue +28% to 64,7 Mio. EUR

Continued stellar growth in "Services" Revenue +62%

Cost ratios: EBITDA margin increases from 5% to 13%

FY Guidance increase of November '19 even exceeded

Group revenues grew by 28%, Healthcare & Logistics with 69% Revenue share

In EUR Mio.

FY 2018: 50.7 Mio. EUR

FY 2019: 64.7 Mio. EUR

Strong growth fuelled by Services and Systems

EBITDA increase by 220%

P&L

In EUR Mio. and % of total income		FY			COMMENTS
	FY 2019	FY 2018	Delta %
Revenues	64.7	50.7	 +28%	
Total Income	72.8	61.4	+19%		Significant improvement due to accelerated Services revenues, increased GM
COST OF MATERIALS AND SERVICES	-29.0	-25.7	 +13%	
GROSS PROFIT	43.8 60%	35.6 58%	 +23%	 	Improved ratio and under-proportional growth (+11%)
PERSONNEL EXPENSES	-22.4 31%	-20.4 33%	 +10%
OPEX	-11.7 16%	-12.2 20%	 -4%		Significantly improved ratio, absolute number declined
EBITDA	9.7	3.0	 +220%	 
D&A	13% -12.2	5% -9.9	+24%
Earnings before interest and tax (EBIT)	-2.6	-6.8			 Increase due to high CAPEX in 2017 & 2018

Cash Flow Summary: Strong operational CF development, Investment phase largely completed

Comments

• Operating CF before WC positive, clear upward trend
• OCF break even achieved, very strong development in Q3 & Q4, clear upward momentum visible
• Investing CF reflecting softer investments after a heavy investment period following the IPO, FY 2018 influenced by 9 Mio. EUR dissolution of short-term investments (IPO funds)

in EUR Mio.	FY 19	FY 18
Operating cash flow before changes in Working Capital	5.8	-0.4
Operating cash flow	7.2	-3.7
Investing cash flow *net of dissolution of EUR 9 Mio. short-term investments	-8.9	-12.0*
thereof payments for investments in property, plant and equipment	-8.7	-19.8
Financing cash flow	-3.0	22.6
Net change in cash	-4.7	7.0
Free Cash flow	-1.7	-15.7

Outlook 2020

	FY 2019	FY 2020 Outlook incl. possible CoVid-19 effects	FY 2020 Outlook excl. CoVid-19 effects
Revenue	64,7 Mio EUR +28%	Moderate to medium growth	Medium to strong revenue growth
EBITDA	13% on Total income, 15% on Revenue	Stable margin	Margin increase

Key drivers remain robust

In 2020, 32 of the top 50

best-selling global drug products will require 2-8°C cold-chain storage and handling

Increasing globalization and outsourcing of clinical research and manufacturing creates huge requirements for efficient pharma cold chain packaging

Product safety and regulation

c.60%

of primary energy consumption in Germany is used for thermal purposes

Thank you for your attention!

va-Q-tec AG

Alfred-Nobel-Straße 33 97080 Würzburg Tel.: +49 931 35942-1616 Fax: +49 931 35942-0 IR@va-Q-tec.com

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Symbol: VQT Bloomberg: VQT:GY Reuters: VQTG:DE ISIN: DE0006636681 WKN: 663668