va-Q-tec AG

Investor Presentation • Nov 16, 2017

va-Q-tec – Always the right temperature

9M 2017 Financials (unaudited)

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General highlights

• 9M 2017 revenue at EUR 34.6 million compared to EUR 24.3 million in 9M 2016 (+42%)
• EBITDA 9M 2017: EUR 6.2 million compared to EUR 5.0 million of adjusted EBITDA in 9M 2017 (+24%); pos. EBT of EUR +0.4 million vs. EUR -0.5 million in 9M 2016
• Very strong product (+59%) and strong services business (+48%) contribute to growth
• Continued investments to expand container fleet and enhance efficiency of the existing production and logistics infrastructure
• Acquisition of new integrated production; 5 locations in Würzburg to be merged to one central headquarter
• Founded subsidiaries in Switzerland and Japan to expand service business and to extend global reach, CH with focus on fulfilment of boxes, Japan focused on sales
• Clear focus on executing the growth and expanding the capacity

Financial highlights

in EURm	9M 2017	9M 2016*	Δ
Revenues	34.6	24.3	+42%
Total Income	42.4	30.6	+39%
EBITDA*	6.2	5.0	+24%
EBITDA margin*	15%	16%
EBT*	0.4	-0.5
Operating Cash flow	-1.0	4.4

va-Q-tec's CEO Dr. Joachim Kuhn (right) with Lufthansa Cargo's CCO Dr. Alexis von Hoensbroech at the signing ceremony for the mutual partnership agreement

Highlights of 9M 2017

Commercial Products Systems Operations Services

• Very strong growth in product and services business • New partnerships with cargo airlines and 3rd party logistics providers • New customers in container rental acquired • Start of Swiss domestic box rental operations in partnership with Swiss Post • Significant growth with existing & new appliances customers • Planning of new and enhanced capacities in Kölleda to improve efficiency and to meet accelerated customer demand; bottlenecks in production visible • New headquarter in Würzburg has been acquired; 5 locations in Würzburg to be merged; substantial efficiency improvement expected, much cheaper and faster than a new building • Business and partnership development in all Asian regions • Set-up and planning of significantly strengthened US operations • Planning and set-up process of new manufacturing lines • Container fleet increased to >1,300; to reach 1,500 by end of 2017

Group revenues 9M 2017

*Notes: Total revenues also include "Other revenues". "Other revenues" primarily comprise state funded R&D

Group revenues 9M 2017

Total income & Gross profit

In 9m 2017, gross margin at 57%, slightly below 9M 2016

• Good progress on gross margin of container rental business, as cost to serve is managed efficiently across global container network
• Lower gross margin of strongly growing products business weighs

Comments

• Personnel expense ratio at 26%, significant improvement vs. 9M
• Continued hiring of talent across the business in order to enable growth and innovation
• Further economies expected as we grow the business, in particular services with lower need for personnel

Adjusted other OPEX

Comments

• Other OPEX (SG&A) cost ratio increases to 16% from 15% in 9M 2016 as spending rises, largely in order to drive growth
• Unfavorable USD/EUR development with adverse effect
• Increased spending on rent, IT, marketing & sales, and external consulting, IR expenses mainly reflected in OPEX as well
• Significant expenditure for additional rented facilities in Würzburg will decline over time as number of sites will be reduced from 5 to 1, currently 3 sites

EBITDA improved despite high investment in growth

• Slightly declining EBIT as depreciation has increased
• Depreciation has increased primarily due to
• Growth of UK-based container fleet in anticipation of strong demand for our container rental services
• Growth of box fleets with shorter depreciation periods
• Investment into new HQ

Segment performance

in €m			9M 2017	9M 2016
Operating cash flow			-1.0	2.8
Investing cash flow			-4.3	-4.6
Financing cash flow			5.3	4.6
Net change in cash			0.0	2.8
	…thereof from acquisition of PP&E EURm 17.8 compared to
Operating cash flow (IFRS)	EURm 4.7 in 9m 2016		-1.0	2.8
Adjustment for IPO costs in ops CF		-	1.6
Operating cash flow (adjusted)			-1.0	4.4

Main drivers for dampened operating CF development: Increased trade receivables and inventories; general expansion of the business

Recent developments in Q4

• Q4 2017 slightly exceeds very strong Q4 2016 with large one-off orders (project based business, totaled c. 1.7 EURm in Q4 16)
• Delays in revenue generation with two new large customers in Container rental to Q1 2018
• Hurricane Maria has impacted the Container rental business out of Puerto Rico, revenue shortfall of c. EUR 500k, Network station to re-open in Q4 2017
• Postponement of an order from a large account in systems business to FY 2018
• Very positive outlook to FY 2018 despite a "bump in the road" in Q4 2017
• Continued expansion of container fleet; fleet size to reach c. 1,500 by end 2017
• In total now 3 pilot service networks last mile to the pharmacy running
• Set-up of own small box rental fleet in the US in progress; first revenues with a large clinical research organization expected for Q1 2018
• Investments in local presence in the US with own assembly of small boxes and an expanded location near Philadelphia, improves efficiency of our North American operations
• Start-up of new production line and order of additional line to expand capacity

Continued investments to set the foundation for further strong growth in all business lines with a focus on services

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Outlook 2017 for va-Q-tec Group

	Short Term
Objective	Metric	Outlook FY 2017	Comment
Growth	Revenue growth	We target revenue growth of 28-32%	• Previous Q4 growth target will not be achieved as select. revenues are deferred to 2018 • Q4 2017 revenues expected only slightly above very strong Q4 2016
Profitability	EBITDA	We target absolute improvement vs. FY 2016	• Higher/earlier expenditures on (sales) growth, peak production, HQ consolidation and IR
		Medium-/ Long-Term
•		Leveraging our best-in-class technology platform to meet customer requirements driven by megatrends energy efficiency, product safety and regulation
•		Strong growth driven by increased market penetration in existing markets and new opportunities such as last mile delivery to the pharmacy

Robust Megatrends drive our growth

c.60% of primary energy consumption in Germany is used for thermal purposes Thermal energy efficiency By 2020, 27 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 Globalization of supply chains Product safety and regulation

Source: AG Energiebilanzen e.V., IMARC (2015)

pharma cold chain packaging

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:GR Reuters: VQTG:DE ISIN: DE0006636681 WKN: 663668

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