DGAP-News: Voltabox Reaches Revenue Target and Significantly Exceeds Earnings Forecast

Voltabox Reaches Revenue Target and Significantly Exceeds Earnings Forecast

- Preliminary Group sales up by about 145% to EUR 66.9 million (prior year: EUR 27.3 million), meeting expectations of EUR 65 to 70 million

- EBITDA of EUR 9.6 million (prior year: EUR -0.4 million) - EBIT margin of 8.4% significantly above forecast of 7% despite negative impact of new contract with intralogistics partner

- Intralogistics, trolleybuses and mining applications are drivers of revenue development in 2018 - strong growth dynamic in 2019 through pedelecs and e-bikes

- Forecast for 2019 confirmed: Revenue growth of a minimum of about 60% to EUR 105 to 115 million with an EBIT margin between 8 and 9%

Delbrück, Germany, April 1, 2019 - Voltabox AG (ISIN DE000A2E4LE9) published its results for the 2018 fiscal year today and confirmed its forecast for the current fiscal year. The Management Board expects another jump in growth between around 60 and 70% to EUR 105 to 115 million with an EBIT margin between 8 and 9%. In the current fiscal year, the Management Board expects a strong impetus for the expansion of business operations though the intralogistics business in Germany and North America. In addition, the battery business for pedelecs and e-bikes should make a significant contribution to revenue growth this year.

The Voltabox Group generated revenue of EUR 66.9 million in the past fiscal year (prior year: EUR 27.3 million), thereby achieving the forecast of EUR 65 to 70 million raised in the half-year report, even without the execution of an initially planned acquisition. The revenue increase was primarily attributable to the very good operational development in the intralogistics market segment, with large quantities of battery modules for forklifts and in the trolleybus and mining vehicle market segments. The business with battery systems for agricultural vehicles and starter batteries for motorcycles also contributed to revenue. In the process, an EBIT margin of 8.4% was achieved, significantly exceeding the expected 7%.

"We have successfully used the first full year of our public listing to take our business to a new level, while at the same time setting the stage for additional surges in growth," says Jürgen Pampel, Chief Executive Officer of Voltabox AG. "We eagerly anticipate our entry into the North American intralogistics market, where we want to leverage our experience and the strong market position that we have established in Europe. In addition, following the successful integration of ACCURATE into the Group, we are putting great effort into expanding our presence in mass markets, since we see tremendous potential for our battery systems, particularly in the pedelecs market."

Improved Material Input Ratio and Economies of Scale as Basis for Very Good Results

In the 2018 fiscal year, other operating income increased to EUR 2.1 million (prior year: EUR 0.2 million), which was mainly due to currency translation gains. The inventory of finished goods and work in progress increased to EUR 8.3 million, while in the previous year it had decreased by EUR 1.4 million. This development is primarily due to the upstream production of modules for sales in the first quarter of 2019. Due to increased direct revenue recognition in the context of long-term, combined development and series supply contracts, capitalized development costs fell by 43.4% to EUR 3.0 million (prior year: EUR 5.3 million). The material input ratio - calculated from the ratio of costs of materials to revenue and inventory changes - fell to 56.4% mainly due to economies of scale (prior year: 64.0%). This resulted in a gross profit of EUR 37.8 million for the 2018 fiscal year (prior year: EUR 14.6 million), which represents a gross profit margin of 56.5% (prior year: 53.6%).

"Voltabox continues to grow at a rapid rate. In 2019, we will also ensure that our structures are ready for the next jump in growth. Along with additional space for the rapidly expanding workforce, we will also invest in equipment and expand our production capacity according to plan. In the area of finance, we naturally focus in particular on net working capital, which we used successfully in 2018 to expand our market position in intralogistics," emphasizes Jörg Dorbandt, Management Board Operations and Finance (COO) of Voltabox AG.

Personnel costs increased, mainly as a result of new hires in connection with operational growth at existing sites and the acquisition of new companies, by 103.0% to EUR 13.6 million (prior year: EUR 6.7 million). As a result of the strong revenue growth, the personnel expense ratio decreased to 20.3% (prior year: 24.6%). Other operating expenses increased significantly to EUR 14.6 million, particularly due to general administrative expenses, rent and lease payments (prior year: EUR 8.3 million). Earnings before interest, taxes, depreciation and amortization (EBITDA) thus rose to EUR 9.6 million (prior year: EUR -0.4 million), which corresponds to an EBITDA margin of 14.3% (prior year: -1.4%).

Consolidated Income Increases Significantly

After depreciation of property, plant and equipment and intangible assets of EUR 3.6 million (prior year: EUR 2.4 million) and an impairment of property, plant and equipment and intangible assets in the amount of EUR 0.4 million (prior year: EUR 0), earnings before interest and taxes (EBIT) improved to EUR 5.6 million (prior year: EUR -2.8 million). As a result, the EBIT margin increased significantly to 8.4% (prior year: -10.3%).

As a result of lower financing costs, the financial result improved to EUR -0.1 million (prior year: EUR -0.7 million). This results in an increase in earnings before taxes (EBT) to EUR 5.5 million (prior year: EUR -3.5 million). Considering a slight reduction in income taxes of EUR 2.9 million (prior year: EUR 3.0 million), the Voltabox Group generated a consolidated income of EUR 2.6 million in the period under review, reflecting the effect of deferred taxes (prior year: EUR -6.5 million). This corresponds to earnings per share of EUR 0.16.

As of the reporting date, the assets of the Voltabox Group increased to EUR 181.5 million (December 31, 2017: EUR 167.8 million), due largely to the expansion of operating activities, which manifested itself primarily through an increase of trade receivables as well as inventories, but also through the capitalization of development costs and the expansion of the scope of consolidation.

Financial Position Influenced by Net Working Capital

Cash flow from operating activities decreased in the period under review to EUR -54.8 million (prior year: EUR -4.7 million) as a result of a significant increase in net working capital. The primary reason for this was the significant increase in trade receivables due to strong revenue in the third and fourth quarters as well as extended payment terms of 360 days that were in effect from the second quarter until the end of 2018 for an important intralogistics customer. The increase in inventories in the second half of 2018, which were undertaken in view of the entry into the intralogistics direct business, also had a significant impact on the negative operating cash flow.

Cash flow from investment activity decreased to EUR -19.1 million (prior year: EUR -6.0 million). Payments for property, plant and equipment of EUR 1.6 million (prior year: EUR 1.0 million) and intangible assets of EUR 12.0 million (prior year: EUR 5.3 million) comprise CAPEX investments of EUR 13.6 million (prior year: EUR 6.2 million), which thereby correspond to the budget figures projected by the Management Board of about EUR 13.4 million. Cash flow from investment activity was also affected by payments of EUR 7.3 million for the acquisition of subsidiaries as part of the M&A growth strategy.

This resulted in free cash flow adjusted for transaction investments of EUR -68.4 million (prior year: EUR -11.0 million), which in the view of the Management Board will balance out by the end of the current fiscal year.

Cash and cash equivalents fell to EUR 28.2 million as of the end of the reporting period (prior year: EUR 102.7 million), which is mainly attributable to short-term capital commitment in operating activities as a result of the expansion of business operations.

2019 Forecast

Given the good order situation for 2019, the Management Board expects revenue growth of between about 60 and 70 percent. Factors expected to contribute to this are the expansion of revenue in the USA, including new battery systems for the intralogistics market, and the increasing demand in Europe for state-of-the-art Li-ion battery systems for commercial vehicles as well as pedelecs and e-bikes.

In view of this, the Management Board is very optimistic about the current fiscal year. The revenue of the Voltabox Group is expected to grow in 2019 to EUR 105 to 115 million, thereby achieving an EBIT margin of approximately 8 to 9%. The planned investment volume (CAPEX) amounts to about EUR 14 million, whereby the share of capitalized development services will be about 57%.

The cumulative order backlog for the next five years was about EUR 1.1 billion as of the end of 2018.

In the 2018 consolidated financial statements, Voltabox AG made corrections from the prior year that mainly involved the consideration of deferred tax assets in connection with a Company-internal transfer of assets, as well as expenses from its initial public offering. These were added to other operating expenses and offset with profit carried forward.

The company's complete audited consolidated financial statements can be downloaded at https://www.ir.voltabox.ag under 2018 Annual Report.

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