va-Q-tec AG

Investor Presentation • Apr 27, 2017

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General highlights FY 2016

• Very successful IPO on Sept 30, raised €46m of growth capital
• Greenshoe option exercised 7 days post IPO due to very positive share price performance
• Major commercial progress across all business lines, many new customers
• Pioneering new applications across various industries, e.g. hot water tanks
• Significantly expanded rental fleet of containers and boxes, as well as growth in rental business
• Expansion of manufacturing footprint started in Würzburg and Kölleda to meet strong demand

Financial highlights FY 2016

in €m	FY 2016	FY 2015
Revenues	35.5	22.5	+58%
Total Income	42.9	29.6	+45%
EBITDA (adj.)	7.0	3.7	+90%
EBITDA margin (adj.)	16%	12%
EBT (adj.)	0,04	-0,4
Operating Cash flow (adj.)	0,47	0,22

Successful IPO in September 2016

Frankfurt Stock Exchange

Notes: Personnel cost and other OPEX adjusted for non-recurring items, namely one-off cost associated with the offering like accrued IPO compensation in the form of employee stock options (worth €168k) and issuance costs (2016: €1.57m, 2015: €0,06m)

Milestones in 2016

Tightening energy labeling standards lead to high customer demand ; Technics & Industry (T&I) with €1.7m revenues in 2016 Major process improvements in manufacturing Selected blue chip customers in T&I

Product launches, e.g. va-Q-shell, an insulation solution for hot water tanks

• Introduction of va-Q-one, a single use thermo box , a cost-optimized solution for price-sensitive customers
• Box sales: New customers (Swiss Post and large Nordic customer) as well as growth with existing customers

• Last mile services : Partnership with Swiss post

• Box rental: continued progress on existing and prospective projects

• Container rental: more than 50 new commercial routes added to the rental network in 2016, several new customers on-boarded
• Multiple new partnerships with cargo airlines and 3rd party logistics providers

Selected new partnerships

in €m	2016 (IFRS)	Adjust ments	2016 adj.	2015 adj.	Δ 16/15 adj.
Revenue	35,53		35,53	22,54	58%
Total Income	42,88		42,88	29,56	45%
Cost of raw materials and services	-17,32		-17,32	-12,35	40%
Gross profit	25,55		25,55	17,20	49%
Gross margin	60%		60%	58%
Personnel expenses	-11,81	+0,17	-11,65	-8,85	32%
Other operating expenses	-8,52	+1,57	-6,95	-4,69	48%
EBITDA	5,22	+1,74	6,95	3,66	90%
EBITDA margin	12%		16%	12%
Depreciation	-5,64		-5,64	-3,17	78%
EBIT	-0,42	+1,74	1,31	0,49	167%
Result from equity acc. investments	-0,06		-0,06	0,00
Net financial result	-1,62	+0,40	-1,22	-0,64	91%
EBT	-2,10	+2,14	0,04	-0,15

• Very high top line growth of 58% from all business lines
• Total income driven by capitalization of container and box fleets manufactured inhouse
• Gross margin improved by 2% points from 58% to 60%
• EBITDA adjustments for IPO costs
• Advisory, legal and audit costs
• Options costs
• Adj. EBITDA margin improvement from 12% to 16%
• Further adjustment of €400k for mezzanine exit kicker reflected in financial result
• Positive EBT

Group revenues 2016

Accelerated growth spurt driven by growth across all business lines

Notes: Total revenues also include "Other revenues". "Other revenues" primarily comprise state funded R&D which amounted to 625 T€ in 2016 (483T€ in 2015).

Total income & Gross margin

Gross margin

Comments

Significantly improved gross margin at 60% in 2016, vs. 58 % in full year 2015; progress due to savings on materials purchasing and increased revenue share of high-margin systems (boxes)

• Gradual shift towards services will lead to
• Initially lower gross margins due to capitalization of fleets at cost
• Over time increasing gross margins as high-margin Service revenues grow

Adjusted personnel expenses

Adjusted other OPEX

Comments

• Personnel expense ratio significantly reduced to 27% as we achieve economies of scale across all parts of the business
• Further economies expected as we grow the business, in particular services with lower need for personnel
• Adjusted for stock option costs of €168k related to the IPO
• Continued hiring of talent across the business in order to enable growth and innovation

Comments

• Other OPEX (SG&A) cost ratio of 16% for 2016, slight increase over 2015
• Significant expenditure for commercial expansion and additional rented facilities in Würzburg
• Economies of scale expected as we grow the business
• Other OPEX adjusted for one-off IPO costs of €1.6m, primarily advisory fees and audit costs

Notes: Personnel cost and other OPEX adjusted for non-recurring items, namely one-off cost associated with the offering like accrued IPO compensation in the form of employee stock options (worth €168k) and issuance costs (2016: €1.57m, 2015: €0,06m)

Strongly improved profit margins

Comments

• Nearly doubled EBITDA over 2015
• Particularly strong EBITDA development in H2 has driven full year adj. EBITDA margin to 16%
• Progress mainly due to economies of scale and improved product mix
• Provides confidence for further EBITDA improvements in 2017 and beyond

Adjusted EBIT

Comments

• EBIT has also improved, driven by same effects as EBITDA
• 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

Notes: EBITDA and EBIT adjusted for non-recurring items, namely one-off cost associated with the offering like accrued IPO compensation in the form of employee stock options (worth €168k) and issuance costs (2016: €1.57m, 2015: €0,06m)

Segment performance

0,9 3,6 8,7 12,6 2013 2014 2015 2016 Revenues, in €m

Strong growth in container rental, supported by a large and growing pipeline

personnel, ramping up network stations, managing larger fleet

Notes: EBITDA and EBIT adjusted for non-recurring items, namely one-off cost associated with the offering like accrued IPO compensation in the form of employee stock options (worth €168k) and issuance costs (2016: €1.57m, 2015: €0,06m)

Key financial metrics

Net TWC(1)

Cash flow

3,0 7,2 10,3 9,5 1,2 4,5 7,2 16,8% 4,6 32,2% 34,8% 22,1% 2013 2014 2015 2016 Total Capex Container capex % of total income Slightly reduced capex as 2016 focus was on higher utilization of existing asset base; capex will increase post IPO in €m

Gradual improvement in ROCE as assets are better utilized, but more improvement expected with EBIT improvements

Notes: (1) Net TWC = Inventories + Trade receivables – Trade payables (2) EBIT adjusted for non-recurring items, namely one-off cost associated with the offering like accrued IPO compensation in the form of employee stock options (worth €168k) and issuance costs (2016: €1.57m, 2015: €0,06m)

IPO has strengthened the balance sheet

Net debt: € 23.1 m

High leverage

Balance sheet FY 2015 Balance sheet structure FY 2016

Equity ratio: 64% Net cash: € 19.1 m (incl. Deposits) Low leverage, high debt capacity

Outlook 2017 for va-Q-tec Group

Expansion in Kölleda to increase capacity, consolidation in Würzburg for improved efficiency

Production expansion va-Q-tec Kölleda

VIP production and assembly of thermal packaging systems (e.g. dedicated to a large Swiss pharma player) from 2017/2018 onwards

5,000 sqm additional space (4,000+sqm production/warehouse, 500+ sqm lab)

Our vision : Be the global leader in high end insulation solutions

LEADERSHIP I II GROWTH III PROFITABILITY

TECHNOLOGY

Dr. Joachim Kuhn, Founder and CEO va-Q-tec AG rings the opening bell in Frankfurt on September 30th, 2016

…drive the implementation of our strategic plan

• Investment in new VIP production lines
• Site expansions in Kölleda to expand manufacturing capacity and in Würzburg to enhance efficiency
• New entities in Switzerland and Japan for commercial expansion, as well as enhanced US operations
• VIPs for medium(>80°C) and high temperatures (>350°C)
• Selective M&A (e.g. increased equity stake in high-tech materials company SUMTEQ GmbH)
• New and challenging trade lanes in the serviced rental business
• Revolutionizing the cold chain with passive thermal packaging 100% deviation free

Thank you for your attention!

va-Q-tec AG

Karl-Ferdinand-Braun-Straße 7 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