DGAP-News: Voltabox End Markets Remain Cautious - EBITDA Earnings Threshold to Be Exceeded in 2021

Voltabox End Markets Remain Cautious - EBITDA Earnings Threshold to Be Exceeded in 2021

- Group revenue after three quarters at € 13.3 million (prior year: € 37.9 million)

- EBITDA decreases to € -21.0 million (prior year: € -5.4 million) - EBITDA margin at -157.7 % (prior year: -14.3 %)

- Operative cash flow remains positive at € 4.8 million (prior year: € -12.4 million) - slightly negative free cash flow expected for the full year

- Introduction of new Voltabox "flow-shape design" technology on December 1 - initial revenue and noticeable effect on earnings planned for 2021

- Revenue forecast expected at the lower end of the range at € 25 million; forecast for EBITDA margin adjusted accordingly to -60 %

Delbrück, Germany, October 30, 2020 - Voltabox AG [ISIN DE000A2E4LE9] published its interim financial report as of September 30, 2020, today. Due to the effects of the coronavirus pandemic in particular, business continues to be hampered for the innovative supplier of lithium-ion battery systems; this applies primarily to industrial end markets and to starter batteries for select mass market applications. The Management Board therefore expects to only be able to realize revenues to a limited extent in the fourth quarter as well. Revenue is therefore expected to be at the lower end of the forecast range. In view of this, the company has revised its earnings forecast and now expects an EBITDA margin of -60 %.

In the first nine months of the fiscal year, the Voltabox Group achieved revenue of € 13.3 million (prior year: € 37.9 million). The EBITDA margin was at -157.7 % (prior year: -14.3 %) as a result of significantly reduced revenue due to the COVID-19 pandemic and the current restructuring at almost unchanged fixed costs and increased development expenses.

"Voltabox must and will overcome the current situation of cautious end markets that are the result of uncertainty caused by the coronavirus pandemic. At the moment we must still be patient. Yet we see the continued high level of interest in our solutions and are therefore very optimistic that we will realize significantly higher sales volumes again in 2021," emphasizes Jürgen Pampel, CEO. "We have consistently implemented our turnaround strategy in order to return Voltabox to its former strength, step by step. With the completion of our restructuring in the middle of next year and the expected normalization of our customers' willingness to invest, the new Voltabox will finally be able to demonstrate its full potential and seize the growth opportunities that lie ahead."

An essential component of Voltabox's future product and solution range will be the cutting-edge Voltabox "flow-shape design" technology. The company will present the innovation on December 1 at 10:30 a.m. at www.flowshapedesign.de. By expanding its portfolio with products based on this technical concept, Voltabox expects to achieve major progress in terms of the flexibility required to design batteries and significant improvements in the use of materials. The market launch of these products is planned for summer 2021. The company expects to realize its initial revenue with the Voltabox "flow-shape design(R)" technology in the coming fiscal year and to thus also realize corresponding earnings effects.

"Based on our planning, we expect to break even at the EBITDA level in the coming year. This means the next stage along the way to Voltabox's sustainable corporate development lies clearly before us. We have successfully implemented all additional measures to increase profitability. For us, it is now a question of demonstrating this efficiency as a result of our restructuring," explains Patrick Zabel, CFO of Voltabox AG.

Financial Performance Marked by Extraordinary Factors in the First Half of the Year

The Voltabox Group's business performance during the first nine months of the year was significantly affected by the impact of the coronavirus pandemic on the business and the order situation, which was adapted at short notice, as well as the by the ongoing restructuring of the Group. During this period, inventories of finished and unfinished goods decreased by € 2.8 million (prior year: increase of € 5.3 million). Capitalized development costs underwent an unplanned decrease to € 2.8 million (prior year: € 5.6 million) as a result of the multiple weeks of restricted business activities starting from the second half of March. Accordingly, this results in an overall performance decrease of 69.9 % to € 14.9 million (prior year: € 49.5 million) in the first nine months of the fiscal year.

In view of this, the cost of materials decreased by 67.3 % to € 9.8 million (prior year: € 33.0 million). The material input ratio (calculated from the ratio of cost of materials to revenue and inventory changes) increased to 93.3 % (prior year: 76.6 %) due to the use of alternatively-sourced small series parts. Against this backdrop, the gross profit for the reporting period amounted to € 5.1 million (prior year: € 16.5 million), which corresponds to a gross profit margin of 38.5 % (prior year: 43.6 %). Personnel expenses decreased by 35.4 % to € 8.4 million (prior year: € 13.0 million) mainly due to the cost reduction measures implemented in 2019. As a result of decreased revenue, the personnel expense ratio increased to 63.3 % (prior year: 34.3 %).

Earnings before interest and taxes (EBIT) decreased to € -33.8 million (prior year: € -11.4 million). Taking into account the decline in revenue and the increased cost of materials, the EBIT margin fell to -254.4 % (prior year: -30.0 %). The Voltabox Group generated consolidated net income of € -35.0 million in the period under review (prior year: € -9.9 million). This corresponds to earnings per share of € -2.21 (prior year: € -0.63).

Current Assets Used Increasingly in 2020

The balance sheet total decreased by 38.7 % to € 55.1 million as of September 30, 2020 (December 31, 2019: € 89.9 million), mainly due to a decrease in current assets caused primarily by the reduction of receivables.

Noncurrent assets increased by 11.8 % to € 35.0 million (December 31, 2019: € 31.3 million). Property, plant and equipment increased by € 2.9 million to € 19.9 million (December 31, 2019: € 17.0 million) as the result of a land purchase. Intangible assets increased slightly to € 11.9 million (December 31, 2019: € 10.7 million), while other assets decreased by € 0.4 million to € 1.7 million (December 31, 2019: € 2.1 million).

Current assets decreased by 65.8 % to € 20.1 million (December 31, 2019: € 58.7 million). Trade receivables were substantially reduced by € 21.4 million to € 9.7 million (December 31, 2019: € 31.1 million). In addition, receivables from related parties were repaid in full (December 31, 2019: € 5.3 million). Cash and cash equivalents decreased by € 4.3 million to roughly € 0.7 million (December 31, 2019: € 5.0 million).

Noncurrent provisions and liabilities remained virtually unchanged at € 15.3 million (December 31, 2019: € 15.4 million). Current provisions and liabilities decreased by 10.0 % to € 19.8 million (December 31, 2019: € 21.5 million) mainly due to the repayment of trade payables of € 5.0 million to € 7.4 million (December 31, 2019: € 12.4 million) and the reduction of other current liabilities by € 1.4 million to € 2.0 million (December 31, 2019: € 2.4 million). On the other hand, other provisions increased by € 2.3 million to € 6.1 million (December 31, 2019: € 3.8 million), mainly due to the creation of an impending loss provision.

Voltabox AG's equity amounts to € 20.0 million as of the reporting date (December 31, 2019: € 53.1 million). Equity ratio decreased as of September 30, 2020 to 36.2 % (December 31, 2019: 44.7 %).

Operating Cash Flow Remains Positive

Cash flow from operating activities improved in the period under review to € 4.8 million (prior year: € -12.4 million). This is mainly due to the € 2.0 million increase in other provisions and provisions for pensions as well as the decrease in inventories of € 6.1 million (prior year: increase of € 39.5 million), with depreciation on fixed assets down by € 1.2 million, other non-cash expenses of € 1.1 million and trade payables down by € 2.6 million.

Cash flow from investment activity in the period under review amounted to € -8.6 million (prior year: € -12.6 million). CAPEX-Investments consist of payments for investments in property, plant and equipment of € 5.8 million (prior year: € 6.8 million) and payments for investments in intangible assets amounting to € 2.8 million (prior year: € 5.8 million).

Recovery in the Second Half of the Year Less Strong Than Expected

In line with the subdued performance of the end markets in the second half-year so far, the Management Board now expects to generate revenue at the lower end of the forecast range of around € 25 million for the full year. The Group EBITDA margin will therefore not reach -6 %. Rather, given the prevailing general conditions for revenue realization in the current situation, the Management Board expects an EBITDA margin of -60 %. Free cash flow is expected to remain slightly negative.

The complete interim report as of September 30, 2020, is available for download at https://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 system provider for e-mobility in industrial applications as well as in select mass markets. Its core business lies in intrinsically safe, highly developed high-performance lithium-ion battery systems that are modular and in serial production. The battery systems are used for applications including commercial vehicles, such as buses for public transportation, forklifts, automated guided vehicles and mining vehicles. The company also develops and produces high-quality lithium-ion battery systems for select mass-market applications such as pedelecs and e-bikes as well as starter batteries for high-performance motorcycles.

Voltabox has production sites at its headquarters in Delbrück, Germany, in Austin, Texas, USA, and in Kunshan, China.

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

Contact

Voltabox AG


Stefan Westemeyer

Artegastrasse 1

33129 Delbrück, Germany

Tel.: +49 (0) 52 50 - 99 30-685

Fax: +49 (0) 52 50 - 99 30-901

Email: [email protected]