Voltabox AG — Investor Presentation 2018

Jun 11, 2018

Investor/Analyst Presentation

June 2018

Executive Summary: Highlights Q1/2018

↗ € 5.1 million

↗ 108 employees

Revenues (previous year: € 4.1 m)

(previous year: 72)

Successful Growth

↗ € -0.0 million

EBITDA (previous year: € -0.8 m)

↗ € -0.8 million

EBIT (previous year: € -1.2 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 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
• ²⁰¹⁸ Acquisition of Concurrent Design, Inc. (engineering design services company) to accelerate growth

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Location Overview With 151 FTE*, technology hubs and state-of-theart production facilities, Voltabox is well positioned to grow its business on a global scale of Texas, Inc. 38 FTE 0 FTE** Administration Production Research & Development * Full time equivalents (FTE) incl. temporary employees in Delbrück, as of Apr. 30, 2018 ** In the course of formation 36 FTE in Research & Development (30%) Austin, TX (USA) Kunshan (China)** Kunshan Co., Ltd. 109 FTE Delbrück Headquarters Aachen 4 FTE Development Center

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

Klaus D. Frers, Chairman

• Founder / majority owner & CEO of Automotive Tier 1 paragon AG
• Former CEO of Voltabox
• Received numerous awards for entrepreneurial activities
• Leadership positions at AEG-Telefunken and Nixdorf Computer
• Mechanical Engineering 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 AG

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
Prismatical (Wound)	Poor	Poor	Minimal	Medium	Medium
Prismatical (Stacked)	Good	Poor	High	High	Medium
Pouch (Wound)	Poor	Good	Minimal	Medium	High
Pouch (Stacked)	Good	Good	High	High	High

Source: IDTechEx

Li-Ion Battery System Supplier for Industrial Applications

• Many years of experience in development and production of electronic components (via parent company paragon AG)
• 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)

Market Penetration by Voltabox

Today:	Significant future growth prospects already backed by strong lifetime order backlog of € 1 billion*
	 Q1 2018: Acquisition of the engineering services provider Concurrent Design
	 Q4 2017: First strategic partnership in the area of agriculture and construction
	 Q3 2017: First selected mass market entry with starter batteries for motorbikes
	 Q4 2016: Expansion of intralogistics market with batteries for Automated Guided Vehicles
	 Q2 2016: Exclusive strategic partnership with leading mining equipment provider
	 Q1 2015: Strategic partnership to enter the fragmented forklift market (intralogistics)
	 Q2 2014: First major US-contract for battery systems in trolleybuses

• Q2 2014: First major US-contract for battery systems in trolleybuses
• Q1 2015: Strategic partnership to enter the fragmented forklift market (intralogistics)
• 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

* As of Mar. 31, 2018 (weighted acc. to probability of occurrence, thereof 77% signed framework contracts)

Business Segments & End Markets

Trolleybuses • Order backlog:* € 20 million

Intralogistics • Order backlog:* € 460 million

Underground Mining • Order backlog:* € 310 million

Agriculture & Construction • Order backlog:* € 40 million

Starter Batteries • Order backlog:* € 170 million

Power Electronics • Catalyst to Voltapower Segment

Full service provider for electrification of vehicles

* As of Mar. 31, 2018

Installation of Energy by End Markets

Market Potential for Voltabox

-mobility mega -ion batteries in occupied Further potential Voltabox end markets Delivery trucks & other on road excl. buses, indoor cranes/platform lifters, pedelecs/e -bike, motorbike, etc. Others Pure electric cars (premium & mainstream), microEV – 3 wheel & rickshaw, wearables, consumer, military, etc. Source: IdTechEx (2017)

*Partly Lead Acid and Li Ion

• Overall usage of batteries will increase due to e trend
• Ongoing substitution of lead acid batteries resp. diesel generators by lithium submarkets
• 11% global market growth expected for battery systems in current Voltabox end markets in 2018

Current Voltabox end markets HEV/PHEV buses over 5 meters, forklift/intralogistics, mining vehicles/equipment	Further potential Voltabox end markets Delivery trucks & other on road excl. buses, indoor cranes/platform lifters, pedelecs/e etc.
Future Voltabox end markets Construction & agriculture, Pure Electric Buses over 5 meters, Airport, Car (hybrid) – PHEV, microEV, etc.	Others Pure electric cars (premium & mainstream), microEV wheel & rickshaw, wearables, consumer, military, etc.

June 2018 Investor/Analyst Presentation 16

Voltabox Growing Into a New Dimension

• Space expansion for R&D / office & production
• Foundation of Voltabox Kunshan Co., Ltd., China (3,400m² space)
• R&D staff to increase to a total of 70 employees in FY 2018
• Expanding product portfolio into selected mass markets
• Entering into new market segments (i.e. agriculture, rail)

Filled M&A pipeline

Working on attractive M&A opportunities (short list)

Multiple Growth Paths

USPs of Voltabox

5-Year Order Backlog* (2018 – 2022)

• €1.007bn. (thereof +77% signed framework contracts)
• Estimated order backlog is weighted according to the expected lifetime and the probability of occurrence
• Consistent evaluation system in place since inception in 2011

* As of Mar. 31, 2018

Agenda

• Introduction of Voltabox
• Business Overview
• Financials

Highlights of the Financial Year 2017

Top Line Growth with Increasing Profitability

Selected parameters from the consolidated income statement of Voltabox AG

Well Balanced Net Assets and Financial Position

• Noncurrent assets € 31.1m

• Current assets € 139.6m

• Equity € 155.0m

• Noncurrent provisions and liabilities € 8.4m

• Current provisions and liabilities € 7.4m

• Voltabox invested in the further expansion of business activities

• Development work capitalized: € 5.2m
• Sufficient liquid funds of € 102.7m due to the IPO

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

Investments as a Key Factor for Expansion of the Business

New R&D Capabilities: Takeover of Concurrent Design

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

It's the first acquisition for Voltabox in this field since its successful IPO. Negotiations for further acquisitions within the scope of the defined growth strategy are already at an advanced stage.

Free

Cashflow:

€ -20.9m (2016: € 0.4m)

Cash Flow

• Significant increase in trade receivables owing to strong revenue in Q4/17
• Reduction in trade payables as planned in consequence of the IPO
• Increase in payments for investments in intangible assets by 9.0% amounting to € 5.3 million (prior year: € 4.9 million)
• Increased amortization of noncurrent fixed assets
• Cash and cash equivalents increased to € 102.7 million as of the end of the reporting period (prior year: € 0.9 million)

€	€	€
-15.0m	-6.0m	122.7m
(2016: €	(2016: €	(2016: €
6.6m)	-6.2m)	-0.2m)
Cash flow from operating activities*	Cash flow from investment activities*	Cash flow from financing activities FY 2017

Development of Revenues and EBITDA

Investment Plan 2018

• Total investment volume of € 13.4 million in 2018
• Thereof € 10.9 million in Germany and € 2.5 million in the US
• Capitalized development costs expected to increase by 6.6%

Performance of Voltabox Share (VBX)

Forecast 2018

↗ € 60 m

Revenues 2018 (e)

↗ ca. 10 %

EBIT margin 2018 (e)

Forecast and Analyst Consensus

Financial performance indicators of Voltabox AG		2017	2018
[in € million / as indicated]	Forecast	Results	Forecast
Group revenue	25	27*	Approx. 60
EBIT margin	Slightly positive	2.1%	Approx. 10%
Analyst estimates		2017	2018
Group revenue		25.5	58.2
EBIT margin		0.8%	10.1%

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
	Nov. 13,	Interim release as of September 30 – 9 months
	Nov. 26-28,	Deutsches Eigenkapitalforum 2018, Frankfurt am Main

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

Email: investor@voltabox.ag