Voltabox AG — Investor Presentation 2018

Nov 28, 2018

Investor/Analyst Presentation

Eigenkapitalforum, Nov. 28, 2018

Highlights from nine months 2018

Continued top line growth +105%

EBIT margin soars to 7.0%

First time after-tax profit (€ 1.9m)

Main driver Intralogistics and Public Transportation in Q3 – First effects of the new Triathlon deal apparent

CAPEX € 7.6m / Liquid funds € 55.8m

Equity ratio remains high at 89.1%

Revenue and profitability outlook confirmed for FY 2018 (Rev.: € 65-70m, EBIT margin 7%) 0,3 1,0

Strong Top Line Growth – First Time After-Tax Profit

New R&D Capabilities: Acquisition of Concurrent

Concurrent Design is an engineering services provider located in Austin, Texas with proven and long-standing expertise in R&D

More than 20 highly skilled employees, mostly engineers, software developers &

project managers

Expertise from more than 1,700

successfully completed projects

Multiple boost of

velocity for Voltabox by additional resources

Concurrent Design was the first acquisition for Voltabox in this field since its successful IPO. The whole team has been integrated into the structures of Voltabox of Texas and is now mainly working on projects for Komatsu.

Former Partnership with Triathlon

Since 2014, Triathlon has been Voltabox's exclusive partner with regard to the intralogistic market

• Development / Series production of Lithium-Ion battery modules
• Assembling of Voltabox modules to systems (housing, electronics, cable harness, interface to forklift) in small batches / high mix
• Selling via Triathlon network to end customers
• Sales network used to distribute lead-acid batteries to the market
• Fast deliveries in batches (10, 20….50)
• No continuous deliveries

New Agreement with Triathlon

The Intralogistics market accepts more and more Lithium-Ion technology over lead-acid.

OEMs and big customers don't want a vendor as additional trade level.

New agreement was signed!

• Direct access of Voltabox to the intralogistics market
• Triathlon remains customer for Lithium-Ion modules
• Europe: Triathlon builds Voltabox's systems (CAPEX saved)
• Voltabox got rights for Triathlon's know-how (own development not necessary)

In return…

• Investment grant to Triathlon to increase capacity
• License for intellectual property

• Extended payment terms for H2/2018

• P&L 2018 burdened by € 2m

• Increase of inventory at Triathlon (by € 5m to € 10m)
• Increase in inventory of finished goods and work in progress at Voltabox (ca. € 7.2 in Q3/18) to ensure fast delivery times

Horizontal Expansion: Acquisition of ACCURATE

Voltabox acquired ACCURATE Smart Battery Solutions GmbH in August 2018 for an amount of € 5m. The company and its portfolio will be a cornerstone for the expansion of the segment Voltaforce.

Development and production of high-quality battery systems for several volume markets

ACCURATE will form the centre of the Voltaforce-segment and hereby focus on high-margin mass market applications such as pedelecs, E-scooters,

gardening, medical technology etc.

Wide performance spectrum of battery packs to complex Lithium-Ion Systems incl. selfdeveloped BMS – ACCURATE is a pivotal puzzle piece in terms of providing a full-service offer for electrification of new target markets

* Only available as an integrated system component/ not to be sold separately.

Withdrawal of Navitas acquisition

June 29, 2018	Signing of contract after intense Due Diligence
	Application for approval by CFIUS*
Since Sept. 28, 2018	Right of withdrawal for Voltabox in case of missing CFIUS approval No break-up fee
	2nd Due Diligence showed Navitas' current trading not in line with Voltabox's expectations
Nov. 14, 2018	Withdrawal from contract due to - Renegotiation of deal structure and consideration failed - CFIUS approval not in sight
	* Committee of the US government to regulate foreign investments into the United States.

New Growth Strategy for North America

Withdrawal based on entrepreneurial responsibility

Focus now on management of growth (order backlog about € 1bn)

New battery system for Navitas-like applications available in few months

• Immediate access to brand new prismatic LFP cells (Lithium Iron Phosphate) thanks to our close relationships to cell manufacturers
• Use of these cells for the development of a system tailormade for the North American market.

Use of available production capacity and build-up of an own US sales network

• Using Voltabox's available production capacity for prismatic cells (yet: NMC) > low investment
• Formation of a US nationwide sales network for the intralogistics market within the next 6 months

2018/2019 – Expectations unchanged

2018e	Due to postponed CFIUS approval, internal expectations of additional Navitas
	related sales were reduced step by step over time.
	Voltabox business running better than expected.

Evolving Group Structure for an International Footprint

Electrification Specialist in High-Performing Applications

From the cell to the complete system

E-Mobility Pure Play

Li-Ion Battery System Supplier for Industrial Applications

Many years of experience in development and production of electronic components (via parent company paragon GmbH & Co.

KGaA) Exceptional integration power (experience in automotive interfaces)

• Mindset focus on applications (authentic added value solutions)
• Superior realization processes (short time-to-market with modular kit)

Modular Development & Production Approach*

NMC 24V standard NMC 24V air-cooled NMC 24V water-cooled NMC 48V standard NMC 48V air-cooled NMC 48V water-cooled

NMC 103V water-cooled

NMC 36V standard NMC 40V standard NMC 40V water-cooled LTO 48V standard LTO 83V standard

2x8 LFP round cell module

LTO 83V long LFP 24V standard NMC 48V Pouch 3x8 LFP round cell module 4x9 LFP round cell module

* Excerpt from product portfolio.

USPs of Voltabox

Financial Highlights 9M 2018

↗ € 33.5 million

↗ 193 employees*

Revenues (previous year: € 16.3 m)

(December 31, 2017: 99)

Continuous Growth while Demonstrating Economies-of-Scale-Effects

↗ € 4.9 million

EBITDA (previous year: € -0.3 m)

↗ € 2.3 million

EBIT (previous year: € -1.8 m)

* Excluding 27 temporary employees, as of September 30, 2018..

Cash Flow Statement

• Significant increase in trade receivables owing to very good business development in the Voltapower segment and sales financing support for main Voltabox partner (limited to 2018)
• Significant increase in inventories due to expansion of business activities
• Increase in trade payables and other liabilities
• Increased amortization of noncurrent fixed assets

* 9M 2018

Performance of Voltabox Share (VBX)

Cash Flow Analysis I

Group Key Figures	9m results 2018*
Operating Cash Flow	€ -30.1m
Free Cash Flow	€ -46.4m
Net Working Capital	€ -34.2m
thereof Receivables	€ -23.7m (huge sales increase in 2018, Triathlon 2018-terms**)
Inventories (see following page)	€ -13.5m
Liabilities	€ 3.0m
+ CAPEX	€ -7.6m
+ M&A	€ -8.7m

* From 01.01.2018 to 30.09.2018. ** One-time effect.

Cash Flow Analysis II

Thereof	Inventories increased from 01.01.2018 to 30.09.2018	€ 13.460m
Voltabox	Increased inventories (mainly cells € 5.0m, orders from Komatsu/Kiepe € 0.894m) Building inventory of finished goods for intralogistics (€ 6.4m)	€ 12.521m
Accurate	First consolidation after acquisition, small sales contribution	€ 0.939m
	One-time effect	€ 13.460m

60-Months Order Backlog (Q2 2018 – Q2 2023)

• Total 60-months order backlog amounts to more than € 1bn*.
• Thereof approx. 74% signed orders and framework agreements (weighted with 100%)
• Estimated order backlog is weighted according to the expected lifetime and the probability of occurrence
• Serves as base for planning
• Evaluation system in place since inception in 2011

60-months order backlog with 100% weighting as of H1/2018

Forecast 2018*

↗ € 65-70 m

Revenues 2018 (e)

↗ ca. 7 %

EBIT Margin 2018 (e)*

*Considering € 2m add. expenses from rearrangement of intralogistics partner agreement

* Updated in H1/2018 interim report.

Summary

Economies of scale driving profitability	Operating leverage
 Intralogistic remains central growth driver – Positive development of direct sales in upcoming year expected
Robust order backlog	About € 1bn. (60 months)
 Thereof € 740m weighted with 100% (signed orders and framework agreements)
Entry into North American Intralogistics market	Fast rejoinder to withdrawal of acquisition
 Initial steps in building up a sales network successfully done

Company Contact

Voltabox AG

Investor Relations

Dr. Kai Holtmann

Artegastraße 1

D-33129 Delbrück

Phone: +49 (0) 5250 9930-964

E-Mail: investor@voltabox.ag