Voltabox AG

Investor Presentation • Nov 25, 2019

Investor/Analyst Presentation

Eigenkapitalforum I Frankfurt/Main November 25-27, 2019

Key Facts from Nine Months 2019

Continued top line growth +13.2%

EBIT margin burdened, as expected at -30.0%

Equity ratio decreases to 74.9%

Available liquidity at € 10.9m

Main drivers in 9M/19: and and

CAPEX: € 12.6m

Q3 results as expected against the background of the revised forecast –

Outlook for 2019 still valid

Agenda

Company Presentation

• Current Developments in Operational Business
• Financials
• Outlook

Voltabox Corporate Development

2019	+ Focusing in projects + Expansion of the US site	+ Retrofitted Buses	+ Stationary Energy Back-up Systems	2019e: € 70 – 80m Revenue, -8 to -9 % EBIT margin
2018	+ Acquisitions of Concurrent Design & ACCURATE (Branch: Korntal-Münchingen) + Start of Intralogistics direct sales		E-Bikes / Pedelecs	€ 66.9m Revenue, 8.4 % EBIT margin 235 FTE
2017	Change of legal form to AG & IPO + Branch Aachen	Agriculture & Construction		 € 27.3m Revenue, -10.3 % EBIT margin 99 FTE
2016		Mining		 € 14.5m Revenue, -25.4 % EBIT margin 67 FTE
2015		Material Handling (Intralogistics)	Motorcycles	€ 7.4m Revenue -31.6 % EBIT margin 62 FTE
2014	Foundation Voltabox Deutschland GmbH + Branch Austin (TX, USA)	Trolleybuses		 € 4.6m Revenue -9.7 % EBIT-Marge 41 FTE
	Strategic Milestones		Market Development	Results

Location Overview

Voltabox has highly qualified personnel and state-of-theart production facilities, which are closely linked to the most important markets for electromobility.

E-Mobility Pure Play

Production Steps - From the Cell to the Complete System

TCO-Advantages Driving Substitution of Lead-Acid by Li-Ion

Voltabox is Cell Agnostic!

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

Nickel Cobalt Aluminum Oxide (NCA)

• Nominal cell voltage: 3.6 3.7 V (vs. graphite)
• Very wide operating temperature range of -20 /+75°C
• High cycle stability of up to 1,500 cycles at 80-70% DoD
• High energy density (140 280 Wh/kg and 300 - 590 Wh/L)
• Currently being tested or upscaled by many cell manufacturers

Source: IDTechEx.

Cell

Chemistries

Li-Ion Battery System Supplier for Defying Applications

• Voltabox is a pioneer in the electrification of industrial applications. In 2018, the Group expanded its solution portfolio in order to open up further mass markets in the future.
  • Mindset focus on applications (authentic added value solutions)
  • Exceptional integration power (experience in automotive interfaces)
  • Superior realization processes (short time-to-market with modular kit)

Installation of Energy by End Markets

Agenda

• Company Presentation
• Current Developments in Operational Business
• Financials
• Outlook

Adjusted Forecast 2019

prior: € 105m to € 115m

Change in EBIT margin forecast 2019 (e)

5G Back-up Systems – Large Initial Order Postponed

• Client: located in Austin, active in 5 federal states
  • Alpha Prototype: June 18, 2019 (1 piece)
  • Beta Prototype: July 2019 (5 pieces)
  • Volume First Order: 2,200 pieces
• New customer requirements in 08/2019:
  • 44 hrs durability instead of 33 hrs
  • 1,500 cycles instead of 3,600 cycles
• Technically not challenging Adjustments already done
• Impact on battery size and management
• New validation caused time delay

Images: Prototype installations of the Voltabox systems in Austin/TX

Change of Technology: Single Size vs. Double Size

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Q4 incl. Exceptional Effects Through Divestments

Countermeasures for Optimizing the Cost Structure

1	Personnel cost adjustments (Delbrück)	Large reduction of annual personnel costs and reduction of temporary workers - mainly effective from 01.01.2020
2	Personnel cost adjustments (Austin)	Reduction of personnel costs in 2019 already effective today
3	Sharpening of development focus	Focus on 38 projects (including 23 projects with higher priority) with stringent controlling

Savings on fixed costs of 30 % in 2020

4

Material savings through double

size technology Especially cost optimization of battery module for new cells of several manufacturers

will also be evaluated

changed conservative approach shall allow more realistic estimation of future revenue recognition

Agenda

• Company Presentation
• Current Developments in Operational Business
• Financials
• Outlook

Ongoing Top-Line Growth at a Negative Profitability

Key Developments of Assets

• Increase of noncurrent assets by € 23.3m
  • Property, plant equipment € +22.3m IFRS16 (Leasing) effect
  • Other assets € -3.1m Reclassification of noncurrent rental prepayments in property, plant and equipment due to IFRS16 & recognition of contractual assets
  • Deferred tax assets € +2.1m Recognition of loss carryforwards
• Decrease of current assets by € 12.8m
  • Inventories € +39.6m supply of production material, which will be used primarily in 2020 for planned projects
  • Trade receivables € -19.3m repayments from important customer
  • Liquid funds € -24.9m expansion of operational business activities, prefinancing of production and spatial expansion of US site
  • Receivables from related parties € -11.3m Repayment from parent company

Assets in € million

Key Developments of Equity and Liabilities

• Increase of noncurrent provisions and liabilities by € 14.1m
  • Noncurrent loans € +0.8m
  • Noncurrent liabilities from Finance Lease € +13.1m
• Increase of current provisions and liabilities by € 7.2m
  • Trade payables € +7.6m
  • Liabilities to related parties € 1.4m
  • Other current liabilities € -3.8m
• Decrease of equity by € 10.7m
  • Equity ratio at 74.9 % (Dec. 31, 2018: 85.3 %)

	Sep. 30, 2019	Dec. 31, 2018
Equity	143,779	154,484
Subscribed capital	15,825	15,825
Capital reserve	127,992	127,992
Profit/loss carried forward	9,718	7,614
Consolidated net income	-9,943	2,579
Currency translation differences	187	474
Noncurrent provisions and liabilities	21,868	7,808
Noncurrent finance lease liabilities	13,147	17
Noncurrent loans	958	141
Deferred tax liabilities	7,763	7,650
Current provisions and liabilities	26,389	19,224
Current loans	3,535	3,539
Trade payables	16,881	9,257
Liabilities to related parties	1,910	557
	194,308 * As retrospectively amended in FY 2018 consolidated financials statements.	181,516

Cash Flow Statement 9M/2019

Operating Cash Flow increased by € 17.7m compared to prior year and characterized by countervailing effects

• Inventories increased again in the light of sourcing cells which will be used in the coming year in projects underway
• Trade receivables decreased significantly according to plan and will be further reduced until the end of the year

Agenda

• Company Presentation
• Current Developments in Operational Business
• Financials
• Outlook

Market Entry in 2020 - Conversion of Diesel Buses

• Sales expectation in higher single-digit million range in 2020 strong increase in sales figures from 2021 according to e-troFit
• Newly validated cells at Voltabox are ideal for application (cost and functional benefits) - Voltabox as sole battery system supplier
• e-troFit battery module can also be used for intralogistics (less dependence on previous main cell supplier)

Voltabox Li-Ion Batteries for 5G Network

• New requirements of the US customer already implemented
• Start of series production in 2020 at US plant
• Sales contribution 2020 expected up to 19 M€
• Studies show demand for 750,000 to 1.2 million 5G mobile masts in Germany
• Compared to conventional lead-acid batteries, Voltabox lithium-ion batteries are lighter, smaller, more durable and maintenance-free

Energy Thought Flexible – Voltabox Mobile Power Units

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Energy Thought Flexible – Voltabox Mobile Power Units

• Voltafox are the new mobile energy storage devices from Voltabox - Portable lithium-ion battery system for a wide range of applications
• Voltabox uses its ready-developed and powerful forklift battery system for this purpose

• Optimum use for stock of prismatic NMC cells/modules (1. Generation)

• Various scalable designs and performance features possible
• Calendar week 46: Construction of prototypes Calendar week 49: Start of pilot project in Austin

Characteristics

• LTE/3G/4G/GPS connectivity
• Remote control via Web-APP
  • Proactive recommendations for exchange by providers
  • Location determination, anti-theft protection

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60-Months Cumulative Order Book*

60-months cumulative order book* with 100% weighting as of June 30, 2019

• Total 60-months order book* amounts to around € 1.1bn.
• Thereof approx. 64% 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

* As defined by the company.

Sales by Markets in 2020

• Continuation of the significant reduction in bulk Mobile Power Unit risk with regard to major customers in the intralogistics sector
• Focusing within the occupied markets and further development of standardized solutions allows more efficient development and shorter time-to-market
• New (sub-)sales markets in the following areas
  • Public transport / buses (conversion of diesel buses)
  • 5G network
  • Mobile Power Unit (mobile battery storage for flexible use)
  • Port and rail applications

Forecast for Fiscal Year 2020

Sales	Profitability	Cashflow	Investments
Revenue	EBITDA margin about	FCF	CAPEX Investments about
€ 85m	15%	single digit	€ 12.5m
to	EBIT margin	positive	thereof about
€ 100m	5% to		70%
	7%		capitalized development costs

Voltabox 2020ff. – Lessons Learned

• Shifts in sales have increased sensitivity to external, uncontrollable variables; large risk discounts on time scale of future projects
• Approval of further suppliers of prismatic NMC cells (CALB, SVolt) to reduce dependencies on existing suppliers
• Focusing and optimizing product portfolio in development and sales
• In-house developed solution with great market chances for valueconserving use of inventories

Introduction of new planning methodology

Risk reduction due to supply bottlenecks

Optimization of material costs and product development

Enhancement of standardization

New opportunities in the field of mobile energy storage systems

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 Stefan Westemeyer Investor Relations Artegastraße 1 D-33129 Delbrück Phone: +49 (0) 5250 9930-685 Email: investor@voltabox.ag