Voltabox AG

Investor Presentation • Nov 26, 2018

Investor/Analyst Presentation

Eigenkapitalforum, Nov. 26-28, 2018

Agenda

Highlights

• Business Overview
• Financials
• Appendix
• Technology
• Financials in Detail

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

Corporate Development

• 1988 1994 2000 2011 2014 2018
• Mother company paragon founded by Klaus Dieter Frers (as private ownership)
• Certification as automotive Tier 1 for electronics
• IPO of paragon AG (now paragon GmbH & Co. KGaA) at Frankfurt Stock Exchange (now: Prime Standard)
• Market entry into Lithium-Ion Batteries: E-Mobility launched as a new business segment of paragon AG
• Foundation of Voltabox as legal entities in Germany and the US (100% subsidiaries of paragon AG)
• Voltabox IPO in Frankfurt after change of legal form into a stock corporation with Voltabox of Texas, Inc. as a 100% subsidiary 2017
• Acquisitions of
  • Concurrent Design, Inc., and
  • ACCURATE Smart Battery Systems GmbH marking key milestones in M&A growth strategy
• Rearrangement of intralogistics partner agreement with Triathlon Batterien GmbH to occupy a leading market position

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
• Consequences
• P&L 2018 burdened by € 2m
• Increase of inventory at Triathlon (ca. € 5m € 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 Systems 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.

Evolving Group Structure for an International Footprint

Location Overview

With 220 FTE*, technology hubs and state-of-theart production facilities, Voltabox is well positioned to grow its business on a global scale.

employees, as of September 30, 2018. ** In the course of formation.

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.

Agenda

• Highlights
• Business Overview
• Financials
• Appendix
• Technology
• Financials in Detail

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

Agenda

• Highlights
• Business Overview

Financials

• Appendix
• Technology
• Financials in Detail

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..

Strong Top Line Growth – First Time After-Tax Profit

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

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

Performance of Voltabox Share (VBX)

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.

Voltabox on Tour – Trade Fairs and Exhibitions

Financial Calendar 2019

	January 10-11	ODDO BHF FORUM, Lyon
	January 31	Bankhaus Lampe German Corporate Conference, London
	February 19-20	ODDO BHF German Conference, Frankfurt am Main
	April 1	Annual Report – Consolidated Financial Statements 2018
	April 11	Solventis Aktienforum, Frankfurt am Main
	April 3-5	Bankhaus Lampe German Conference, Baden-Baden
	May 13	Group Interim Report as of March 31, 2019 – First quarter
	May 16	Annual General Meeting, Delbrück
	August 21	Group Interim Report as of June 30, 2019 – Half year
	September 2-3	Equity Forum Fall Conference, Frankfurt am Main
	November 13	Group Interim Report as of September 30, 2019 – 9 months

Appendix

Li-Ion-Battery Technology Overview

• Li-Ion chemistries are replacing the leading battery technologies of the past like Nickel-Metal Hydride, Nickel Cadmium and Lead-Acid
• Future technological developments are also carefully tracked and evaluated by Voltabox
• New lithium based technologies like Li-Air, Li-Sulfur and Lithium Solid State cells are expected to achieve market readiness around 2023

Available Li-Ion Cell Chemistry Li-Ion Cell Chemistry Types used by Voltabox

Lithium Iron Phosphate (LFP)

• Nominal cell voltage: 3.2 V to 3.3 V
• No risk of thermal runaway (in case of an accident)
• High cycle stability of up to 4,000 cycles at 80% DoD
• Large operating temperature range -20/+ 55 °c
• High energy density (125 Wh/kg and 292 Wh/l)
• Using only a small portion of rare earths

Nickel Manganese Cobalt (NMC)

• Nominal cell voltage: 3.6 V to 3.7 V
• High cycle stability of at least 6,000 cycles at 80% DoD
• Great operating temperature range of -30/+ 60 °C
• High energy density (136 230 Wh/kg and at least 309 Wh/l)

Lithium Titanium Oxide (LTO)

• Nominal cell voltage: 2.3 V
• Highest cycle stability of up to 30,000 cycles at 80% DoD
• High level of safety thanks to LTO anode
• Great operating temperature range of -30/+ 55 °C
• Energy density of 96 Wh/kg or 202 Wh/l
• Great SoC range useable with the highest performances

Li-Ion vs. Lead-Acid Technology

Additional advantages:

• No memory effect (opportunity charging)
• Very low self-discharge
• No maintenance
• Full functionality at low temperatures
• Optimum control and (remote) monitoring

Agnostic Approach to Cell Types

A spirally wound design (jelly-roll). Designated by size, e.g. 26650 cylindrical battery (Diameter: 26mm, length: 65.2 mm; code for cylindrical shape: 0)

A prismatical design indicate a flat battery design. The stacks can be wound (as shown in the photo) or stacked (with alternating cathode/separator/anode structure). The stacks are usually inserted into rigid casing to form prismatic

Rather than rigid metallic casing, conductive foil-tabs are welded to the electrodes and seal the battery fully. The tacks inside can be wound or stacked. Swelling and gassing could be a concern for pouch cells

Cell Package	Impedance	Thermal	Tabbing	Cell Cost	Battery Cost
Cylindrical	Poor	Poor	Minimal	Medium	High
Prismatic (Wound)	Poor	Poor	Minimal	Medium	Medium
Prismatic (Stacked)	Good	Poor	High	High	Medium
Pouch (Wound)	Poor	Good	Minimal	Medium	High
Pouch (Stacked)	Good	Good	High	High	High

Source: IDTechEx

Market Dynamics

• Overall usage of batteries will increase due to E-mobility mega trend
• Ongoing substitution of lead acid batteries resp. diesel generators by lithium-ion batteries in occupied submarkets
• 11% global market growth expected for battery systems in current Voltabox end markets in 2018
• Intralogistics submarket expected to show fastest adoption of Li-Ion technology due to TCO advantages
• Market penetration of Li-Ion expected to exceed 50% of new sales by 2023 in intralogistics

* HEV/PHEV Buses over 5 meters, mining vehicles, agriculture & construction, motorcycles.

Roadmap for Electrifying the Komatsu Fleet

EKF I Nov. 28, 2018 Investor/Analyst Presentation 35

Revenues & EBIT Margin Development

9M 2018: Key Factors for Profitability Development

9M/18: Investing in Further Growth

• FY 2018 CAPEX breakdown: € 10.9 million in Germany and € 2.5 million in the US
• Capitalized development costs expected to increase by 6.6%
• Investments year-to-date at € 7.6m (thereof € 6.6m Intangible Assets)
• Own work capitalized mainly in the Voltapower segment (share of 83%) – increased R&D in the Voltamotion segment

i.a. prismatic line (outstanding payment), pouch line, technology/emachines, charger/inverter, property deposit, measuring devices etc.

*Property, Plant and Equipment

Operating Cash Flow Bridge

Disclaimer

This presentation is given to you in strict confidence. By attending the presentation, you agree that no part of this presentation or disclaimer may be disclosed, distributed or reproduced to any third party without the consent of Voltabox AG ("Voltabox").

This presentation is being provided for the sole purpose of providing the recipients with background information about Voltabox's business. This presentation, including the information contained in this disclaimer, does not constitute an offer, invitation or recommendation to subscribe for or purchase any security and neither the presentation, disclaimer nor anything contained in them forms the basis of any contract or commitment. This presentation does not purport to summarize all information that an investor should consider when making an investment decision. It should be read in conjunction with Voltabox's other continuous disclosure announcements. Before making an investment decision you should consider whether it is suitable for you in light of your own investment profile and objectives and financial circumstances and the merits and risk involved.

No representation, express or implied, is made as to the fairness, accuracy, completeness or correctness of information, opinions and conclusions contained in this presentation, including the accuracy, likelihood of achievement or reasonableness of any forecasts, prospects, returns or statements in relation to future matters contained in the presentation ("forward-looking statements"). Such forward-looking statements are by their nature subject to significant uncertainties and contingencies and are based on a number of estimates and assumptions that are subject to change (and in many cases are outside the control of Voltabox and its Directors) which may cause the actual results or performance of Voltabox to be materially different from any future results or performance expressed or implied by such forward-looking statements. Forward looking statements are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance.

To the maximum extent permitted by law, neither Voltabox nor its related corporations, directors, employees or agents, nor any other person, accepts any liability, including, without limitation, any liability arising from fault or negligence, for any loss arising from the use of this presentation or its contents or otherwise arising in connection with it.

You represent and confirm by attending and/or retaining this presentation, that you accept the above conditions.

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