va-Q-tec AG

Investor Presentation • Nov 14, 2018

va-Q-tec – Always the right temperature

9M 2018 Earnings Release (IFRS)

November 14th, 2018

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• 9M 2018 at a glance
• Financial Performance 9M 2018
• Outlook 2018
• Q+A

Dr. Joachim Kuhn (CEO) Stefan Döhmen (CFO) Today's presenters:

Round-up 9M 2018

• 9M 2018 revenue: EUR 37.1 million compared with EUR 34.6 million in 9M 2017 (+7%)
• EBITDA 9M 2018: EUR 2.1 million after EUR 6.1 million in 9M 2017

• Revenue growth driven by a strong Products business which – along with growth investments – affected EBITDA

• Significant infrastructure investments for future growth almost completed

• Strategic expansion of international presence further advanced

• "Power 20+" performance program launched

Strategic Investments almost completed

va-Q-tec's geographic footprint as the step stone for global expansion

Substantially broadened international footprint as a part of IPO strategy

Group revenues 9M 2018

Topline growth fueled by BL "Products"

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

A closer look at "Services"

Container rental revenues, 9M 2015 – 9M 2018 and revenue contribution of key customer

Revenues of large Pharma player have pulled back strongly since 2015

Total income & Gross profit

special reserves for grants as well from container sale-andleaseback transactions

• Economies of Scale expected as we grow the business

• Other OPEX (SG&A) cost ratio up to 19% despite due to spending on HQ move, rent, IT, marketing & sales and external consulting
• We are working on Economies of Scale and efficiency gains (see Slide 19 for details)

EBITDA and EBIT

Segment performance

• Increase in AG revenues mainly due to increased Product sales
• Increase in personal expenses, one-off expenses for production move as well as the lower-margin Products business weighs on EBITDA

EBITDA /// va-Q-tec UK

(in €m)

• Absolute number of rentals increased

• Higher logistics costs for the container fleet as well as an increase in personnel expenses leading to pullback in EBITDA

Balance Sheet

15

in €m	9M 2018	9M 2017
Operating cash flow before changes in Working Capital	-1.1	3.0
Operating cash flow	-4.2	-1.0
Investing cash flow	-8.5	-4.3
Financing cash flow	16.3	5.3
Net change in cash	3.6	0.0

Adjusted Outlook 2018 for va-Q-tec Group

Strategic Investments almost completed

"Power 20+" Performance Program launched

BACKGROUND

• Strategic Investments almost completed (see previous slide)
• 2018 results fall short of the Management Board's expectations
• 2018 a year of transition

GOALS

• To significantly re-accelerate growth, especially in the attractive Services segment

• Improvement in EBITDA margin, as seen in the recent past

• Overall: Sales to be positioned more focused, international and aggressive

• Head of Sales Container Rental released from his duties ✔
• Ramp-up process to be supported by HQ experts ✔
• 10/2018: New order management system in the container rental area implemented ✔
• Adapted go-to-market approach with adapted pricing model and improved and strengthened sales partnerships that lever sales power of external logistics partners
• Better integration of UK subsidiary with va-Q-tec AG

REVENUES: Selection of Measures COSTS/LIQUIDITY: Selection of Measures

• Overall: Strict cost control
• Personnel expenses: No substantial new hires in 2019
• OPEX: All existing consultant contracts are being reviewed as to their necessity for the next growth phase ✔
• OPEX: Further optimizations IT and marketing costs ✔
• Liquidity: To finance long-term investments through low-cost, long-term loans ✔

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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