Voltabox AG

Quarterly Report • Aug 24, 2021

GROUP INTERIM REPORT as of June 30, 2021

Key Group Figures (IFRS)

€ '000 / as indicated	Jan. 1 to Jun. 30, 2021	Jan. 1 to Jun. 30, 2020	Change	Apr. 1 to Jun. 30, 2021	Apr. 1 to Jun. 30, 2020	Change
Revenue	3,380	9,484	-64.4 %	875	6,677	-86.9 %
EBITDA	-1,874	-10,687	82.5 %	-1,637	-4,495	63.6 %
EBITDA margin in %	-55.4	-112.7	n/a	-187.1	-67.3	n/a
EBIT	-3,990	-21,945	81.8 %	-2,690	-5,709	52.9 %
EBIT margin in %	-118	-231.4	n/a	-307.4	-85.5	n/a
Consolidated net income	-4,330	-22,963	81.1 %	-2,907	-6,367	54.3 %
Earnings per share in €	-0.27	-1.45	1.18	-0.18	-0.40	0.22
Investments (CAPEX)1	678	8,752	-92.3 %	0	3,109	-100.0 %
Operating cash flow	-129	9,253	n/a	-47	5,154	n/a
Free Cashflow2	-807	501	n/a	-8	2,045	n/a
€ '000 / as indicated	Jun. 30, 2021	Dec. 31, 2020	Change	Jun. 30, 2021	Jun. 30, 2020	Change
Total assets	39,421	40,113	-1.7 %	39,421	77,998	-49.5 %
Equity	9,978	15,373	-35.1 %	9,978	30,452	-67.2 %
Equity ratio in %	25.3	38.3	n/a	25.3	39.0	n/a
Cash and cash equivalents	660	2,337	-71.8 %	660	5,473	-87.9 %
Net debt3	12,294	11,487	7.0 %	12,294	9,944	23.6 %
Employees	111	186	-40.3 %	111	160	-30.6 %

Share

	Jun. 30, 2021	Dec. 31, 2020	Change	Jun. 30, 2021	Jun. 30, 2020	Change
Closing price Xetra in €	3.44	3.86	-10.9 %	3.44	3.79	-9.2 %
Number of shares issued	15,825,000	15,825,000	0.0 %	15,825,000	15,825,000	0.0 %
Market capitalization in € millions	54.4	61.0	-6.6	54.4	60.0	-5.6

3 Net debt = Interest-bearing liabilities – cash and cash equivalents

¹ CAPEX = Investments in property, plant and equipment + Investments in intangible assets

² Free cash flow = Operating cash flow – Investments (CAPEX)

Voltabox Share

After the volatile and temporarily severely impaired performance of the most important German indices in 2020, the stock markets appeared to recover at the beginning of the current calendar year and set their sights on new records. For example, the DAX crossed the 14,000 point threshold for the first time, and it was hardly conceivable at the time that the index would reach significantly further to a new all-time high beyond 15,000 points by mid-March. Political development in the U.S. in particular fueled the optimism of the capital market participants for positive economic momentum. German investors did not want to share the euphoria of the American stock markets to the same extent following the inauguration of Joe Biden as the 46th President of the United States. Instead, fears of growing coronavirus mutations quickly took hold. In addition, optimism about the start-up of the vaccine campaign in Germany was very limited at that time. It took a significant setback in the markets to raise investors' hopes of new opportunities. For example, the Frankfurt Sentiment Index rose by 27 points to +32 in one fell swoop at the beginning of February – the highest level for the index since November 28, 2018. Subsequently, however, the mood on the bond and capital markets was dominated by fears of inflation. Investors focused primarily on profit-taking during this phase. As a result, the Frankfurt Sentiment Index for institutional investors fell by 12 points to +7 in mid-March. Private investors, on the other hand, were much more optimistic and increased their Sentiment Index by 3 points to +20. More than a month earlier, the Sentiment Index of this panel was still at its lowest point of the year at +5 points. Since then, the mood of private investors did not improve quickly, but just gradually. The performance of the DAX at the end of March was expected to be in the same vein, even if private investors had become more cautious in the meantime. At a new all-time high of more than 15,000 points, hopes for a strong economic recovery from the coronavirus pandemic dominated above all.

As a result of excellent economic data, rapid progress in national vaccination campaigns, and an apparent rapid recovery of the economy based on strong corporate results, particularly in the USA, the stock markets gained further momentum. Investor optimism was reinforced by the announcement of the comprehensive U.S. infrastructure program with a total volume of around \$ 2.3 trillion. Accordingly, despite significant shifts on the commodity markets and the resulting burdens on the industry, the bull market combined with a high risk appetite, as revealed by the Bank of America (BofA) fund manager survey, was also apparent in the second quarter. With an interim correction at the beginning of May, institutional investors with a medium-term trading horizon, who were surveyed as part of the Börse Frankfurt Sentiment Index to gage market sentiment, saw their pessimism confirmed. The index slipped to -24 points, reflecting a clear majority of bearish investors on the professional side. Capital market participants seemed to interpret any correction in this phase as a healthy sign and subsequently helped the DAX to repeatedly improve marginally on its all-time high – albeit without any significant follow-up demand. Private investors were generally more positive about further upward momentum for the stock markets during this phase, with an almost equal amount of optimists and pessimists. The meeting of the Federal Open Market Committee in the second half of June, in which it was asserted that there is sufficient probability of a U.S. key interest rate hike sooner than expected, also influenced trading on the German stock exchanges. As a result, the DAX was pulled sharply lower, but was subsequently able to show a strong counter-reaction.

On the whole, Germany's most important stock indices recorded positive performance in the first half of the year (DAX 13.2%, SDAX 8.5%, TecDAX 10.9%). The DAXSector Technology, which comprises the technology stocks, closed the first quarter with a gain of 12.7 %.

In the same period, the Voltabox share suffered a loss in value of 8.8%. Starting from an initial price of € 3.96, the Voltabox share initially recorded only slight losses, which led to the lowest price of this quarter at € 3.77 on January 06, 2021. Soon afterwards, however, the share gained momentum and traded well above the € 4 mark for several weeks from mid-January. The Voltabox share reached its highest price in the first half of the year on February 16, 2021 at a value of € 5.48. Subsequently, the share price settled again between € 4 and 5. The Voltabox share was able to maintain this level until the beginning of May, having reached its high for the quarter at € 4.45 on April 07, 2021. Subsequently, the share

came under pressure, with increased average trading volumes until mid-May. The Voltabox share marked its low for the first half of the year at € 3.15 on May 21, 2021. By the end of the quarter, the share had barely recovered to any significant extent. The closing price on June

30, 2021 was € 3.44. Accordingly, Voltabox's market value at that time was € 54.4 million, which corresponds to a drop in value in the first half year of € 6.6 million.

Performance of the Voltabox Share:

As of the balance sheet date, the German Federal Gazette had been notified a short position held by Ennismore Fund Management Limited for the Voltabox share, in the amount of 0.49% of the company's share capital.

Business Performance

The business performance in the first half of the year was still marked by the clearly noticeable consequences of the slump in the Voltabox business that occurred in 2020 as a result of the Corona crisis. This has hit the Group in the midst of a comprehensive reorganization, which has significantly intensified or is intensifying the effects both last year and still currently, while a large part of the industrial (sub-)sectors are already back on a clear recovery course. As a result, Voltabox was only able to supply the specific Voltabox

markets and customers to a very limited extent during the reporting period. The current business situation of Voltabox AG is also characterized by a recent sharp decline in working capital and severely limited opportunities for working capital financing.

Revenue of € 3.4 million (prior year: € 9.5 million) in the first six months is still in line with the planning scenarios of the Voltabox Management Board. The production of standard series products and the service business were primarily responsible for the company's revenue in the first half year.

Operating segment € '000 / as indicated	Europe 6M/2021	North America 6M/2021	Consolidation 6M/2021	Group 6M/2021
Revenue (third party)	3,172	209	0	3,380
Operating segment revenue	3,172	209	0	3,380
Changes in inventories, other operating income and own work capitalized	2,315	899	0	3,214
Overall operating segment performance	5,487	1,108	0	6,594
Material and personnel expenses, other operating expenses	-5,379	-3,009	-80	-8,468
Operating segment EBITDA	108	-1,901	-80	-1,874
EBITDA margin	3.4 %	-911.2 %	0.0 %	-55.4 %
Depreciation and amortization (incl. impairment)	-1,985	-122	-9	-2,116
Operating segment EBIT	-1,877	-2,023	-90	-3,990
EBIT margin	-59.2 %	-969.8 %	0.0 %	-118.0 %
Financial result	-74	-211	0	-285
Tax expense	-55	0	0	-55
Profit for the fiscal year	-2,006	-2,234	-90	-4,330

Earnings

In the first two quarters, the Voltabox Group generated Group revenue of € 3.4 million (prior year: € 9.5 million), which constitutes a decrease of 64.4%. Other operating income amounted to € 1.8 million (prior year: € 0.9 million), while the inventory of finished goods and work in progress increased by € 0.7 million (prior year: decrease of € 1.8 million) as a result. Capitalized development work declined as planned to € 0.7 million (prior year: € 1.9 million) as a result of the continued constrained business activities. Accordingly, there was a decrease in the overall performance in the first half year by € 3.9 million to € 6.6 million (prior year: € 10.5 million).

The cost of materials decreased by 59.6% to € 2.3 million (prior year: € 5.7 million). As a result, the material input ratio (calculated from the ratio of cost of materials to revenue and inventory changes) improved despite the lower revenue level to 56.6% (prior year: 73.7%). Against this background, gross profit for the period under review amounted to € 4.3 million (prior

year: € 4.8 million), corresponding to a gross profit margin of 126.0% (prior year: 50.9%). Personnel expenses fell by 35.6% to € 3.8 million (prior year: € 5.9 million), primarily as a result of the implementation of the refocusing strategy. Despite this decrease, the personnel expense ratio rose to 111.4% (prior year: 62.0%) as a result of the reduced level of sales.

Earnings before interest, taxes, depreciation and amortization (EBITDA) increased to € -1.9 million (prior year: € -10.7 million), corresponding to an EBITDA margin of -55.4% (prior year: -112.7%). Following a scheduled reduction in depreciation and amortization of € 2.1 million (prior year: € 2.8 million), earnings before interest and taxes (EBIT) increased significantly to € -4.0 million (prior year: € -21.9 million). The EBIT margin improved accordingly to -118.0% (prior year: -231.4%). With a slightly improved financial result of € -0.3 million (prior year: € -0.4 million), the Voltabox Group generated a consolidated net income of € -4.3 million in the reporting period (prior year: € -23.0 million). This corresponds to earnings per share of € -0.27 (prior year: € -1.45).

Net Assets

Total assets decreased by 1.7% to € 39.4 million as of June 30, 2021 (December 31, 2020: € 40.1 million). Noncurrent assets decreased slightly by 4.0% to € 26.1 million (December 31, 2020: € 27.2 million). In this context, property, plant and equipment fell by € 1.3 million to € 14.5 million (December 31, 2020: € 15.8 million).

Current assets increased by 3.9% to € 13.4 million (December 31, 2020: € 12.9 million). Trade receivables were reduced by € 1.4 million to € 1.1 million (December 31, 2020: € 2.5 million). Receivables from related parties increased by € 2.9 million to € 4.2 million (December 31, 2020: € 1.3 million). Cash and cash equivalents recorded a decrease by € 1.6 million to € 0.7 million (December 31, 2020: € 2.3 million). The liquidity of the company was secured as of the reporting date and at all times beyond that point.

Financial position

Cash flow from operating activities decreased to € -0.1 million in the reporting period (prior year: € 9.3 million). This was mainly due to the gain in trade receivables by € 1.5 million, following a decrease in receivables by € 14.0 million in the prior year. The decrease in other provisions and pension accruals by € 0.3 million (prior year: increase of € 2.4 million), the increase in inventories by € 0.7 million (prior year: decrease of € 3.1 million) and the € 1.0 million lower increase in trade accounts payable and other liabilities also led to the reduction in operating cash flow.

Cash flow from investing activities amounted to € -0.7 million in the reporting period (prior year: € -1.9 million). This results exclusively from payments made for investments in intangible assets.

Payments for the redemption of finance lease liabilities amounted to € 0.8 million and were thus the main reason for the negative cash flow from financing activities of € -0.9 million (prior year: € -0.0 million).

Cash and cash equivalents amounted to € 0.7 million at the balance sheet date (June 30, 2020: € 5.5 million).

Control System

The Management Board regularly uses key figures to measure the economic success of the operative implementation of its corporate strategy. The control system takes into account the type and/or amount of one-time or extraordinary effects on the performance indicators, which are based on the development of the business. Due to the current business development or the progress of the partly young and dynamically developing customers as well as of the end markets, the internal targets are generally set as bandwidths for measuring and managing operative performance, depending on the respective planning horizon.

The Voltabox Management Board uses the financial performance indicators Group revenue, EBITDA margin and free cash flow in this context.

Opportunity and Risk Report

In the first half year of 2021, there were no significant changes in the opportunities and risks described in detail under "Opportunity and Risk Report" in the 2020 Annual Report. The 2020 Annual Report is available on the internet at www.voltabox.ag in the Investor Relations section.

Forecast Report

The forecast for the current fiscal year and the underlying assumptions are explained in detail in the combined management report for the 2020 fiscal year. The forecast of Voltabox AG in the individual and consolidated financial statements is dependent on the further development of the available free liquidity. In the event of a significant increase in free liquidity in the further course of the year, the company expects consolidated revenue of around € 15 million and a consolidated EBITDA margin of -15%. The sales potential exceeds this minimum figure, but requires further refinancing. In the fiscal year 2021, the Management Board classifies the EBITDA target as more important than the revenue target.

€ '000	Europe	North America	Consolidation	Group
Assets	77,525	11,262	-49,365	39,422
Investments	678	0		678

Noncurrent provisions and liabilities, consisting of finance lease liabilities, were reduced slightly to € 11.2 million (December 31, 2020: € 11.9 million). Current provisions and liabilities rose to € 18.3 million (December 31, 2020: € 12.9 million), mainly as a result of the recognition of € 5.5 million in liabilities to related parties.

The equity of Voltabox AG amounted to € 10.0 million as of the balance sheet date (December 31, 2020: € 15.4 million). This corresponds to an equity ratio of 25.3% as of June 30, 2021 (December 31, 2020: 38.3%).

Development of Key Performance Indicators

€ '000 / as indicated	2020	Since beginning of year/ 6 months 2021	Forecast 2021 as of July 20, 2021
Financial performance indicators
Group revenue	18,135	3,380	approx. € 15 million
EBITDA margin	-133 %	-55 %	-15%
Free cash flow	-1,815	-807	approx. € -5 million

Condensed Consolidated Interim Financial Statements

Consolidated statement of comprehensive income for the period from January 01 to June 30, 2021 (IFRS)

€ '000 / as indicated	Jan. 01 to Jun. 30, 2021	Jan. 01 to Jun. 30, 2020	Apr. 01 to Jun. 30, 2021	Apr. 01 to Jun. 30, 2020
Group revenue	3,380	9,484	875	6,677
Other operating income	1,787	945	75	361
Increase or decrease in inventory of finished goods and work in progress	749	-1,814	1,105	-1,251
Other own work capitalized	678	1,864	242	737
Total operating performance	6,594	10,479	2,297	6,524
Cost of materials	-2,336	-5,656	-796	-3,361
Gross profit	4,258	4,823	1,501	3,163
Personnel expenses	-3,765	-5,876	-1,858	-2,302
Depreciation of property, plant and equipment and amortization of intangible assets	-2,116	-2,776	-1,053	-1,156
Impairment of current assets	0	-8,382	0	0
Impairment of property, plant and equipment and intangible assets	0	-100	0	-58
Other operating expenses	-2,367	-9,634	-1,280	-5,356
Earnings before interest and taxes (EBIT)	-3,990	-21,945	-2,690	-5,709
Financial income	0	7	-126	3
Finance expenses	-285	-371	-36	-210
Financial result	-285	-360	-162	-207
Earnings before taxes (EBT)	-4,275	-22,305	-2,852	-5,916
Income taxes	-55	-658	-55	-451
Consolidated net income	-4,330	-22,963	-2,907	-6,367
Earnings per share in € (basic)	-0.27	-1.45	-0.18	-0.4
Earnings per share in € (diluted)	-0,27	-1.45	-0.18	-0.4
Average number of shares outstanding (basic)	15,825,000	15,825,000	15,825,000	15,825,000
Average number of shares outstanding (diluted)	15,825,000	15,825,000	15,825,000	15,825,000
Consolidated net income	-4,330	-22,963	-2,907	-6,367
Actuarial gains and losses	0	0	0	0
Currency translation reserve	-1,065	1,591	393	1,561
Total comprehensive income	-5,395	-21,372	-2,514	-4,806

Condensed Interim Consolidated Financial Statements

Consolidated Balance Sheet as of June 30, 2021 (IFRS)

€ '000	Jun. 30, 2021	Dec. 31, 2020
ASSETS
Noncurrent assets	26,062	27,235
Intangible assets	8,551	8,458
Goodwill	0	0
Property, plant and equipment	14,469	15,787
Financial assets	1,400	1,400
Other assets	1,642	1,590
Deferred taxes	0	0
Current assets	13,359	12,878
Inventories	6,422	5,750
Trade receivables	1,121	2,547
Receivables from related parties	4,162	1,314
Other assets	994	930
Cash and cash equivalents	660	2,337
Total assets	39,421	40,113

€ '000	Jun. 30, 2021	Dec. 31, 2020
EQUITY AND LIABILITIES
Equity	9,978	15,373
Subscribed capital	15,825	15,825
Capital reserve	20,229	20,229
Profit/loss carried forward	-21,496	15,556
Consolidated net income	-4,330	-37,052
Currency translation differences	-250	815
Noncurrent provisions and liabilities	11,161	11,876
Noncurrent liabilities from finance leases	11,106	11,876
Deferred taxes	55	0
Current provisions and liabilities	18,282	12,864
Current portion of liabilities from finance lease	1,828	1,902
Current loans and current portion of noncurrent loans	20	46
Trade payables	3,291	4,209
Liabilities to related parties	5,536	0
Other provisions	723	1,055
Other current liabilities	6,884	5,652

Jun. 30, 2021	Dec. 31, 2020
9,978	15,373
15,825	15,825
20,229	20,229
-21,496	15,556
-4,330	-37,052
-250	815
11,161	11,876
11,106	11,876
55	0
18,282	12,864
1,828	1,902
20	46
3,291	4,209
5,536	0
723	1,055
6,884	5,652
39,421	40,113

Condensed Consolidated Interim Financial Statements

Consolidated statement of cash flows for the period from January 01 to June 30, 2021 (IFRS)

€ '000	Jan. 01 to Jun. 30, 2021	Jan. 01 to Jun. 30, 2020
Earnings before taxes (EBT)	-4,275	-22,305
Depreciation/amortization of noncurrent fixed assets	2,116	2,776
Financial result	285	360
Increase (+), decrease (-) in other provisions and pension provisions	-332	2,383
Other non-cash income and expenses	-1,799	2,365
Increase (-), decrease (+) in trade receivables, other receivables and other assets	-1,538	14,016
Impairment of intangible assets	0	100
Increase (-), decrease (+) in inventories	-672	3,128
Increase (+), decrease (-) in trade payables and other liabilities	5,850	6,801
Interest paid	236	-371
Cash flow from operating activities	-129	9,253
Cash payments for investments in property, plant and equipment	0	-6,895
Cash payments for investments in intangible assets	-678	-1,857
Interest received	0	11
Cash flow from investment activities	-678	-8,741
Loan repayments	-26	0
Proceeds from loans	0	1,484
Cash payments for finance lease liabilities	-844	-1,558
Cash flow from financing activities	-870	-74
Changes in cash and cash equivalents	-1,677	437
Cash and cash equivalents at the beginning of the period	2,337	5,036
Cash and cash equivalents at the end of the period	660	5,473

Condensed Interim Consolidated Financial Statements

Statement of changes in equity for the period of January 01 to June 30, 2021 (IFRS)

				Balance sheet profit
€ '000	Subscribed	capital Capital reserve	Reserve from currency translation	Profit carried forward	Consolidated net income	Total
January 01, 2021	15,825	20,229	815	-21,496	0	15,373
Consolidated net income	0	0	0	0	-4,330	-4,330
Currency translation	0	0	-1,065	0	0	-1,065
Other comprehensive income	0	0	-1,065	0	0	-1,065
Total comprehensive income	0	0	-1,065	0	-4,330	-5,395
June 30, 2021	15,825	20,229	-250	-21,496	-4,330	9,978

				Balance sheet profit
€ '000	Subscribed	capital Capital reserve	Reserve from currency translation	Profit carried forward	Consolidated net income	Total
January 01, 2020	15,825	20,229	214	15,557	0	51,825
Consolidated net income	0	0	0	0	-22,964	-22,964
Currency translation	0	0	1,591	0	0	1,591
Other comprehensive income	0	0	1,591	0	0	1,591
Total comprehensive income	0	0	1,591	0	-22,964	-21,372
June 30, 2020	15,825	20,229	1,805	15,557	-22,964	30,452

Condensed Notes to the Consolidated Interim Financial Statement as of June 30, 2021

Accounting Principles

The consolidated interim financial statements of Voltabox AG as of June 30, 2021, have been prepared in accordance with uniform accounting and valuation principles issued by the International Financial Reporting Standards (IFRS), which were also applied in the consolidated financial statements as of December 31, 2020. The Standards of the International Accounting Standards Board (IASB) and the interpretations of the International Financial Reporting Interpretations Committee (IFRIC) valid as of the end of the reporting period shall apply.

The form and content of the consolidated half-year report comply with the reporting requirements of the Deutsche Börse. The report represents an update of the Annual Report, taking the period under review into consideration. It is concerned with the current period under review and should be read in conjunction with the Annual Report and the additional information about the company contained therein. The aforementioned Annual Report can be viewed on the internet at www.voltabox.ag.

The wholly owned subsidiaries Voltabox of Texas, Inc. (Cedar Park, Texas, USA), Voltabox of North America, Inc. (Cedar Park, Texas, USA) and Voltabox Kunshan Co., Ltd. (Kunshan, China; inactive) belong to the scope of consolidation of Voltabox AG. In the current fiscal year, the Management Board decided to focus on the European core market in the future and has therefore initiated a sales process for the US subsidiaries.

Statement of Comprehensive Income, Balance Sheet, Cash Flow Statement

The chapters "Financial Position and Net Assets" and "Financial Performance" provide a detailed overview and specific explanations regarding the consolidated statement of comprehensive income, the consolidated statement of financial position and the consolidated statement of cash flows of Voltabox AG.

Management Board and Supervisory Board

As of the balance sheet date, the Management Board of Voltabox AG consisted of Jürgen Pampel, Chairman of the Management Board, and Patrick Zabel, Chief Financial Officer and Chief Human Resources Officer. Dr. Burkhard Leifhelm was a member of the Management Board until April 30. He was dismissed as of April 30, 2021, and left the company as of June 30, 2021. The Supervisory Board of the Company remained unchanged as of December 31, 2020 and consists of Klaus Dieter Frers (Chairman), Walter Schäfers (Deputy Chairman) and Hermann Börnemeier.

Events After the Balance Sheet Date

There are no events subject to reporting.

Related Party Disclosures

As of June 30, 2021, there have been no changes regarding the disclosures on the composition of related parties compared to December 31, 2020.

Notes on the Preparation of the Consolidated Interim Financial Statements

An audit or review of these consolidated interim financial statements has been waived.

Declaration by the Legal Representatives

We declare to the best of our knowledge and in accordance with the applicable accounting principles for interim financial reporting, the interim consolidated financial statements give a true and fair view of the assets, financial position, and earnings of the Group in accordance with German principles of proper accounting, and in the interim group management report, the development of business including the business results and the position of the Group, is portrayed in such a way that a true and fair view is conveyed and the significant opportunities and risks of the Group's foreseeable development in the remainder of the fiscal year are described.

Delbrück, August 24, 2021

Jürgen Pampel CEO

Patrick Zabel

CFO

Financial Calendar 2021

August 24, 2021	Interim Group Report as of June 30, 2021 – First half year
September 1, 2021	Annual General Meeting, Delbrück / virtual
October 29, 2021	Interim Group Report as of September 30, 2021 – Nine months
November 22-24, 2021	Equity Forum, Frankfurt am Main / virtual

Voltabox AG Artegastraße 1 33129 Delbrück / Germany

Fon: +49 5250 9930 - 0 Fax: +49 5250 9930 - 901 E-Mail: investor@voltabox.ag

www.voltabox.ag