va-Q-tec AG — Earnings Release 2018

Mar 29, 2019

va-Q-tec AG FY 2018 Earnings Release

March 29th, 2019

• Highlights and Challenges
• Financial Performance FY 2018
• Outlook 2019
• Key Takeaways and Q&A

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

HIGHLIGHTS AND CHALLENGES FY 2018

50,7 MIO. €

TOTAL REVENUES (+8%)

EBITDA

Q4 WITH ACCELERATION IN SERVICES

c. 70 MIO. € INVESTMENTS COMPLETED SINCE IPO, LIQUIDITY COMFORTABLE

TECHNOLOGICAL AND QUALITY LEADERSHIP IN ATTRACTIVE END MARKETS

Market survey show excellent reputation for best-in class passive solutions and services

Power 20+ PROGRAM INITIATED

Cost saving efficiency program

INVESTMENT SETUP LARGELY COMPLETED IN 2018

Investment areas since IPO	Completion	Total Invested amount	Comment
1 Rental fleet expansion 2		c. EUR 12-13m	• Container Rental Fleet plus > 1.000 units • Continuous injection of small boxes in own fleets
Product development 3		c. EUR 3-4m	• Temp and High-Temp VIP • New Systems (e.g. va-Q-pal, va-Q-one, va-Q-shell) • More R&D people
Capacity expansion		c. EUR 37m	• New HQ and enhanced capacities in Wuerzburg and Koelleda • New hubs • More production people
4 International Business development		c. EUR 11-12m	• New entities in LatAm, Switzerland and Asia • Enhanced ops in the US • Strengthened structures (2nd row mgmt.)
Total investment amount		∑ c. EUR 70m
Foundation for 100 Mio EUR Revenues largely laid

Q4 REVENUE WITH VERY STRONG GROWTH FINISH IN SERVICES AFTER WEAK Q1-Q3

2018 GROWTH IN SERVICES DAMPENED BY DROP AT KEY CLIENT

REVENUES AND SHARE OF KEY CLIENT IN CONTAINER RENTAL, 2014-2018

A MID TERM VIEW BACK

P&L HEAVILY AFFECTED BY NEXT GROWTH STEP

P&L

In EUR Mio.		FY		COMMENTS
	2017	2018	Delta
Total Income	57,4	61,4	+7%
Revenues	46,9	50,7	+8%	 Significant Improvement in Q4 2018
COST OF MATERIALS AND SERVICES	-24,7.	-25,7	+4%
GROSS PROFIT	32,8	35,6	+9%	 News subsidiaries/International BizDev
PERSONNEL EXPENSES	-15,6	-20,4	+31%	 "Up-front" costs for future growth
OPEX	-9,9.	12,2	+23%	 Includes cost of relocation of facilites/production and "up-front" costs of intl. BizDev
EBITDA	7,2	3,0	-58%
D&A	-7,5	-9,9	+31%
Earnings before interest and tax (EBIT)	-0,3	-7,8		 Increase due to high-pace CAPEX since IPO

EBITDA SUBSTANTIALLY AFFECTED BY MOVE OF MAJOR PRODUCTION SITES

BALANCE SHEET INCREASED IN LINE WITH HEAVY INVESTMENTS

CASH FLOW STATEMENT COMMENTS

in EUR Mio.	2017	2018
Operating cash flow before changes in Working Capital	3,2	-0,4
Operating cash flow	1,5	-3,7
Investing cash flow	-1,1	-12,0
Financing cash flow	0,3	22,6
Net change in cash	5,2	12,2

• Despite significantly negative result, operating CF before WC close to 0 (after positive OCF in 2017 and 2016
• Difference reflects inventory increase and lower accounts payables at year-end
• Investing CF influenced by deduction of 9,0 Mio. EUR dissolution of short-term investments(IPO funds)
• Financing CF reflects majority of long term-financing of PP&E, i.e. 15-20 yrs.

CONTINUED COMFORTABLE LIQUIDITY POSITION

LIQUIDITY DEVELOPMENT, 12/2017 – 12/2018

In EUR Mio.

POWER 20+ PROGRAM ACCELERATING PROFITABLE GROWTH

OUTLOOK 2019

• Very strong revenue growth (CAGR +25%) in the past five years
• Moderate growth (+8%) in 2018

Topline: Medium to strong revenue growth

EBITDA: Strong growth and substantial margin improvement

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KEY TAKEAWAYS

ACHIEVEMENTS		LEARNINGS
Investments largely completed, liquidity comfortable	+400 new containers, totaling to c. 2.000 units + Production capacities Up to 23 Mio. EUR liquidity	Heavy growth investments impacting profitability more than expected
Significantly increased global reach	+3 new intl. subsidiaries, totaling to 8 group companies Enhanced footprint in the US	Key clients still with strong impact on economics in Services
Upswing in services	Drop of a key client digested We added ASML and others Technology and quality leadership	We need to improve growth planning and expectation management
Power 20+ Program	confirmed by market surveys ++ Revenue growth >> Cost efficiency	We are still operating in very attractive markets and are tapping into new opportunities

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

TICKER

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

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