Voltabox AG — Investor Presentation 2019

Jan 31, 2019

Investor/Analyst Presentation

BHL German Equity Forum, London │ Jan. 31, 2019

Agenda

Highlights

• Business Overview
• Financials
• Appendix

Highlights from nine months 2018

• Continued top line growth +105%
• EBIT margin soars to 7.0%
• First time after-tax profit (€ 1.9m)
• Intralogistics and Public Transportation as main drivers 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
• 2019 Entry into North-American Intralogistics market

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.

** In the course of formation.

Agenda

• Highlights
• Business Overview
• Financials
• Appendix

E-Mobility Pure Play

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 prismatic 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

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.

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)

Electrification Specialist in High-Performing Applications*

* Excerpt from customer/application portfolio.

Characteristics of selected battery systems

TCO-advantages driving substitution of Lead-Acid by Li-Ion

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
• 12% global market growth expected for battery systems in current Voltabox end markets in 2019
• 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, pedelecs/e-bikes.

Market Penetration: Intralogistics in EU

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 biggest customer for Lithium-Ion modules to build Triathlon systems
• Triathlon currently building additional systems with Voltabox label
• Voltabox received certain rights for use of Triathlon's know-how

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 (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

Market Penetration: Intralogistics in North America

Entry into North American Intralogistics market

Focus on management of growth

New battery system for Intralogistics applications available within 2019

• Immediate access to brand new prismatic LFP cells (Lithium Iron Phosphate) thanks to close cooperation with leading cell manufacturers
• Use of these cells for the development of a system tailormade for the North American market demand.
• UL certificate expected within 2019

Use of available production capacity and launch of US-based marketing

• Using Voltabox's available production capacity for prismatic cells > CAPEX light approach
• Establishment of a US nationwide sales network for the intralogistics market within H1/2019

Horizontal Diversification: 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.

Roadmap for Electrifying the Komatsu Fleet

BHL German Equity Forum, London I Jan. 2019 Investor/Analyst Presentation 19

USPs of Voltabox

Installation of Energy by End Markets

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

Agenda

• Highlights
• Business Overview
• Financials
• Appendix

Strong Top Line Growth – First Time After-Tax Profit

9M 2018: Key Factors for Profitability Development

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

Operating Cash Flow Bridge

Key Cash Flow Developments in 9M/2018

-50.000 -40.000 -30.000 -20.000 -10.000 0 10.000 EBITDA Net Working Capital Interest paid Other CAPEX M&A FCF 4.9 -46.4 -34.3 -0.4 -0.3 -7.6 -8.7

EBITDA / free cash flow bridge [in €m]

Revenues & EBIT Margin 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.e. prismatic line (outstanding payment), pouch line (not yet ordered), technology/ e-machines, charger/inverter, property deposit, measuring devices etc.

*Property, Plant and Equipment

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.

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		65.3
EBIT margin	0.8%		6.7%

* Thereof around € 2 million with parent company paragon AG (now paragon GmbH & Co. KGaA)

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

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

Performance of Voltabox Share (VBX)

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