Investor/Analyst Presentation
Roadshow: H1 2018 – Group Interim Report
Executive Summary: Highlights H1/2018
↗ € 18.1 million
↗ 144 employees
Revenues (previous year: € 10.6 m)
(June 30, 2017: 78)
On the way to a new level
$$
7 \in 1.7 \text{ million}^{7758}
$$
EBITDA (previous year: € 0.2 m)
↗ € 0.1 million
EBIT (previous year: € -0.7 m)
Agenda
- Introduction of Voltabox
- Business Overview
- Financials
Corporate Development
- 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 of Navitas Systems, LLC. marking key milestones in M&A growth strategy
- Rearrangement of intralogistics partner agreement to occupy a leading market position / Start of direct sales in the intralogistics market
1988
1994
2000
2011
2014
2018
Management Team
Management Board
Jürgen Pampel, CEO
- Former Head of Electromobility business unit at paragon
- Various leadership positions at paragon since 2004
- Design Engineering graduate
Andres Klasing, CFO
- Joined Voltabox in 2017
- Former Head of Accounting & Controlling at paragon since 2016
- Various finance positions for Bertelsmann group
- Business administration (VWA) / Engineer (FH) graduate
Supervisory Board
Prof. Dr. Martin Winter, (Deputy Chairman)
- Professor at the Institute of Physical Chemistry at the University of Münster
- One of the most renowned German scientists in the energystorage field with a focus on Lithium-Ion batteries
Hermann Börnemeier
- Shareholding director of Treu-Union Treuhandgesellschaft mbH, a tax consultancy
- Long-term advisor to the parent company paragon GmbH & Co. KGaA
H1 2018 – Group Interim Report Investor/Analyst Presentation 6
Klaus D. Frers, Chairman
GmbH & Co. KGaA Former CEO of Voltabox
Founder / majority owner & CEO of Automotive Tier 1 paragon
Received numerous awards for entrepreneurial activities Leadership positions at AEG-
Telefunken and Nixdorf Computer Mechanical Engineering graduate
Agenda
- Introduction of Voltabox
- Business Overview
- Financials
E-Mobility Pure Play
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
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
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
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
LTO 83V long LFP 24V standard NMC 48V Pouch 3x8 LFP round cell module 4x9 LFP round cell module
* Excerpt from product portfolio.
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.
- 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)
H1 2018 – Group Interim Report Investor/Analyst Presentation 13
KGaA)
Market Penetration by Voltabox
- Q2 2014: First major US-contract for battery systems in trolleybuses
- Q2 2016: Exclusive strategic partnership with leading mining equipment provider
- Q4 2016: Expansion of intralogistics market with batteries for Automated Guided Vehicles
- Q3 2017: First selected mass market entry with starter batteries for motorbikes
- Q4 2017: First strategic partnership in the area of agriculture and construction
- Q1 2018: Acquisition of the engineering services provider Concurrent Design
- Q2 2018: Strategically important rearrangement of intralogistics partner agreement
- Q2 2018: Takeover of Navitas systems and entry into production of customized battery cells
- Significant future growth prospects backed by strong 60-month order backlog of € 740 million* weighted 100
* As of June 30, 2018
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
* Partly Lead-Acid and Li-Ion.
** HEV/PHEV Buses over 5 meters, mining vehicles, agriculture & construction, motorcycles.
New Agreement for Targeted Market Leadership
In June 2018 Voltabox rearranged the strategically important agreement with Triathlon for a close partnership in order to supply the market with innovative and technologically advanced Li-Ion batteries.
Early implementation of a differentiation strategy with three essential manufacturing and sales players: Voltabox, Triathlon, Navitas
Ensuring a fast market penetration at Voltabox' own pace in both Europe and the USA in order to occupy a leading market position
Creating competitive advantages via transfer of technology know-how
Creating market entry barriers for competitors by securing access to exclusive system components
Time and cost advantages compared to own development of system components
Additional access to the (shared) margins from the end customer business on the system level
Voltabox Growing Into a New Dimension
Multiple Growth Paths
USPs of Voltabox
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
* As of Jun. 30, 2018
Agenda
- Introduction of Voltabox
- Business Overview
- Financials
Key Figures for the Group from H1 Report 2018
- Equity ratio of 91.5 % (equity: € 154.9 million)
- Liquid funds of € 74.2 million
- Balance Sheet Total: € 169.2 million
Strong Financial Background Dynamic Growth in all areas
Profitability on track Successful Execution of Growth Strategy
- Entry into direct sales activities in Intralogistics
- Auspicious Takeover of Navitas Systems for € 37 million incl. excellent market access in the US
- Investments of € 3.5 million as expected
Top Line Growth with Increasing Profitability
H2 2017 H2 2018
Cash Flow Statement
- Large 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)
- Other non-cash expenses increased due to currency effects
- Significant decrease in trade payables and other liabilities of € 7,798m
- Slightly increased amortization of noncurrent fixed assets
New R&D Capabilities: Takeover 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.
On Way to Market Leadership: Acquisition of Navitas
Profitability broadly similar to Voltabox
Expected revenues of around €25m in 2018
Voltabox took over Navitas Systems for €40m in order to accelerate market penetration in the market segments of particularly rapid growth.
With the acquisition, Voltabox have come a great deal closer to the goal of becoming the
global market leader
in the field of battery systems for intralogistics.
Navitas has established a market-leading position in the region with its "Starlifter" batteries.
Navitas employs a total of 85 people - including top experts with in-depth cell know-how with an A123 background.
Navitas opens up new applications and thus completely new prospects
in the North American market.
Performance of Voltabox Share (VBX)
Updated Forecast 2018
↗ € 65-70 m
Revenues 2018 (e)*
* In the course of the acquisition of Navitas System – expected initial consolidation in Q3 2018
↗ ca. 7 %
EBIT margin 2018 (e)**
**Considering € 2m add. expenses from rearrangement of intralogistics partner agreement
Forecast and Analyst Consensus
Financial performance
indicators of Voltabox AG |
2017 |
|
2018 |
|
[in €
million / as indicated] |
Forecast |
Results |
Forecast (old) |
Forecast (new) |
| Group revenue |
25 |
27* |
Approx. 60 |
Approx. 65-70** |
| EBIT margin |
Slightly positive |
2.1% |
Approx. 10% |
Approx. 7%*** |
| Analyst estimates |
2017 |
|
2018 |
|
| Group revenue |
25.5 |
|
58.2 |
|
| EBIT margin |
0.8% |
|
10.1% |
|
* Thereof around €
2 million with parent company paragon AG (now paragon GmbH & Co. KGaA)
In the
course
of
the
acquisition
of
Navitas
System –
expected
initial consolidation
in Q3 2018
*Considering €
2m add. expenses from rearrangement of intralogistics partner agreement |
|
|
|
|
Voltabox on tour – Trade fairs and exhibitions
Financial Calendar
| |
Jan. 11/12, |
Oddo
Forum, Lyon |
| --- |
------------- |
--------------------- |
- Feb. 1, Bankhaus Lampe German Corporate Conference, London
- Feb. 21/22, 12. Oddo-BHF German Corporate Conference, Frankfurt am Main
- Mar. 13, Annual report 2017
- Apr. 18-20, Bankhaus Lampe Deutschlandkonferenz, Baden-Baden
- May 8, Interim release as of March 31 3 months
- May 9, Annual general meeting, Delbrück
- May 16, Berenberg Investor Forum at The Battery Show, Hannover
- Jun. 7, quirin Champions 2018, Frankfurt am Main
- Jun 21/22, Berenberg Pan-European Discovery Conference
- Aug. 21, Interim release as of June 30 6 months
- Sep. 3/4, Equity Forum Herbstkonferenz, Frankfurt am Main
- Oct. 25 Berenberg Discovery USA Konferenz, New York
- Nov. 13, Interim release as of September 30 9 months
- Nov. 26-28, Deutsches Eigenkapitalforum 2018, Frankfurt am Main
H1 2018 – Group Interim Report Investor/Analyst Presentation 31
Financials - Appendix
H1/18: Revenues & EBIT Margin development
H1/18: Key Factors Profitability Development
H1/18: Significant Changes of Group's Assets
- Increase in noncurrent assets by € 6.4m
- Intangible Assets up € 3.0m owing own work capitalized
- Increased Goodwill as a consequence of the Concurrent Design acquisition
- Decrease in current assets by € 7.9m
- Increase in Trade Receivables about € 11.7m due to sales supporting activities in intralogistics
- Other assets up € 8.2m due to the capitalization of the one-time investment subsidy for capacity expansion granted by Voltabox due to the revised cooperation agreement with the partner Triathlon
- Liquid funds went down about € 28.4m mainly through operating expenses in connection with the dynamic growth strategy
H1/18: Significant Changes of Equity and Liabilities
- Equity remained nearly unchanged at € 154.895m
- Noncurrent provisions and liabilities slightly increased to € 8.818m
- Current provisions and liabilities decreased about € 1.9m to € 5.507m
- Liabilities to related parties went down about € 0.9m
- Other current liabilities reduced about € 0.7m
H1/18: Investing in Further Growth
- 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 € 3.5m (thereof € 2.8m Intangible Assets)
- Own work capitalized mainly in the Voltapower segment – increased R&D in the Voltmation segment
i.a. prismatic line (outstanding payment), pouch line, technology/emachines, charger/inverter, property deposit, measuring devices etc.
*Property, Plant and Equipment
FY17: Highlights
- Equity ratio of 90.8 % (equity: € 154,990 million)
- Liquid funds of € 102.7 million
Strong Financial Position Dynamic Top Line Growth
Group revenue increased 88.2 % to € 27.3 million
- EBITDA increased 240,9 % to € 3 million
- EBIT margin at 2.1 %
Increasing Profitability Set for Future Growth
- Launch of a new R&D site in Aachen
- € 5.2 million internal R&D (R&D ratio 19.0 %)
FY17: Top Line Growth with Increasing Profitability
Selected parameters from the consolidated income statement of Voltabox AG
FY17: Net Assets and Financial Position
Balance Sheet Total
(Accounting date: Dec. 31, 2017)
Assets + equity and liabilities € 170.8m (2016: € 39.0m)
- Capital reserve increased to € 126.4m
- Significant reduction of noncurrent provisions and liabilities
FY17: Investments as a Key Factor
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: [email protected]