DGAP-News: Voltabox Forecasts Another Jump in Growth to EUR 105 to 115 Million

Voltabox Forecasts Another Jump in Growth to EUR 105 to 115 Million

Fiscal Year 2018

- Recently raised revenue targets reached even without the planned acquisition of a U.S. competitor

- Preliminary Group sales up by about 145 percent to EUR 66.9 million (prior year: EUR 27.3 million)

- EBIT margin of about 8.8 percent significantly above the forecast despite burden as a result of a new contract with an intralogistics partner

2019 Outlook

- Leap in revenue to EUR 105 to 115 million planned along with an EBIT margin between 8 and 9 percent

- For the first time also significant revenue with battery packs for pedelecs and e-bikes

- Significant improvement of free cash flow expected

Delbrück, Germany, March 7, 2019 - Voltabox AG (ISIN DE000A2E4LE9) expects additional revenue growth for the current fiscal year in the range of around 60 to 70 percent, which corresponds to revenue between EUR 105 and 115 million. The Management Board is aiming for an EBIT margin of about 8 to 9 percent. The forecast is based on the very good order situation. In the fiscal year 2018, Voltabox has achieved the projected revenue goals according to preliminary, unaudited figures, while significantly exceeding earnings expectations.

According to preliminary, unaudited figures, Voltabox generated Group sales of EUR 66.9 million in the fiscal year 2018 (prior year: EUR 27.3 million). The increasingly automated mass production of battery modules for use in forklifts and automated guided vehicles was a decisive factor in the approximately 145 percent jump in growth. Group EBIT amounted to EUR 5.9 million. With a corresponding EBIT margin of 8.8 percent, the most recently updated earnings forecast of 7 percent was significantly exceeded despite the EUR 2 million burden on earnings resulting from the new contract structure with a partner for the intralogistics market segment.

As a result of the very positive business performance in the second half of the year, it was possible to achieve the revenue forecast that was raised to reflect the expected acquisition of a U.S. competitor, despite the cancellation of this transaction. Along with battery systems for trolleybuses, the battery system for a mining vehicle that was transferred to serial production made a noticeable contribution to revenue for the first time. Revenue was also generated in the new agricultural and construction market segment.

"We have made significant strategic and operational progress at Voltabox in the past year," says Jürgen Pampel, Chief Executive Officer of Voltabox AG. "With the acquisitions of Concurrent Design and ACCURATE, we were able to strengthen our resources and our product portfolio. As a result of the restructuring of our distribution in the intralogistics segment, which is so important for us, we have laid the groundwork for rapidly expanding our market position in the EU and North America through direct sales. In the current fiscal year, we will also generate significant revenue with battery packs for pedelecs and e-bikes for the first time."

Voltabox is currently building its own distribution network for the U.S. intralogistics market. By mid-2019, the existing portfolio will be augmented with products for the American market that can be produced on existing automated manufacturing lines. The related costs amount to about US$ 1 million. With the new battery systems, Voltabox is addressing U.S. forklift manufacturers, national battery dealers as well as major customers with a corresponding logistics infrastructure. In 2019 revenue should continue to be generated in the U.S. with energy storage systems for stationary use as well as battery systems for electric locomotives. In addition, the American subsidiary Voltabox of Texas, Inc., is focusing on accelerating the timetable for the electrification of mining vehicles.

In Europe the growing business with the customer KUKA will also contribute to revenue growth. In addition, Voltabox expects to generate sharply increasing revenue with manufacturers and major fleet operators, such as logistics companies or large customers from industry and commerce, as a result of launching direct sales activities in the intralogistics market segment. Overall it is expected that already in the fiscal year 2019 Voltabox will directly realize about two-thirds of intralogistics revenue in Europe. Accordingly, it is planned that the revenue share with the intralogistics distribution partner will fall to one-third. Voltabox continues to expect positive development in the area of trolley and EV buses. Furthermore, Voltabox is currently considering entering the automotive market and is conducting promising conversations with several automobile manufacturers on this topic.

"We expect global market growth of around 12 percent in the submarkets we have served so far," says Jörg Dorbandt, COO of Voltabox AG. "Accordingly, Voltabox will again grow much faster than the market. In view of the good order situation, we are very confident that we will be able to continue our dynamic growth strategy profitably. We are increasingly moving our developments to serial production, which will also be visible in terms of reduced own work capitalized in 2018."

The significantly higher need for net working capital is attributable to temporarily extended payment terms in connection with the renegotiation of a contract with a distribution partner for the intralogistics market segment. Since January 1, 2019, payment terms of generally 30 days once again apply. This fact will have a significant positive effect on free cash flow in the current year. Since the build-up of inventory necessary in the second half of the year will not be further increased, the Voltabox Management Board anticipates a balanced free cash flow for 2019.

According to preliminary figures, the equity ratio is now 86.1 percent (prior year: 90.8 percent). With cash and cash equivalents of EUR 28.2 million as of December 31, 2018, Voltabox continues to be comfortably financed in the view of the Management Board. Another factor contributing to this is the timely and at times even early payment behavior of the intralogistics distribution partner, whose revenue share remained approximately the same as in the prior year.

With EUR 105 to 115 million, the Management Board is aiming for another jump in growth along with an EBIT margin in the range of 8 to 9 percent in the current fiscal year. The planned investment volume (CAPEX) is expected to be about EUR 14 million (2018: EUR 13.4 million). Capitalized development costs in the fiscal year 2019 amount to about 57 percent of the investment total as planned. According to current status, no significant acquisitions are intended.

As of the reporting date, the good development of the cumulated order backlog for the next five years until December 31, 2023, has continued.

The complete, audited consolidated financial statements and the company's annual report are expected to be published on April 1, 2019. Further information about Voltabox AG is available at www.ir.voltabox.ag.

About Voltabox AG

Voltabox AG (ISIN DE000A2E4LE9), which is listed on the regulated market (Prime Standard) of the Frankfurt Stock Exchange, is a rapidly growing system provider for e-mobility in industrial applications. Its core business lies in intrinsically safe, highly developed high-performance lithium-ion batteries that are modular and in serial production. The battery systems are primarily used in buses for public transportation, forklifts, automated guided vehicles and mining vehicles. The company also develops and produces high-quality lithium-ion batteries for select mass-market applications, such as high-performance motorcycles and pedelecs.

Voltabox has production sites at its headquarters in Delbrück, Germany, in Cedar Park (Austin, Texas, USA), and in Kunshan, China, as well as development sites in Aachen and Korntal-Münchingen, Germany.

Additional information about Voltabox can be found at www.voltabox.ag.

Contact

Voltabox AG

Dr. Kai Holtmann
Artegastrasse 1
33129 Delbrück, Germany
Tel.: +49 (0) 52 50 - 99 30-964
Fax: +49 (0) 52 50 - 99 30-901
Email: investor@voltabox.ag