DGAP-News: Voltabox Uses 2019 Annual Financial Statements for Comprehensive Balance Sheet Adjustment

Voltabox Uses 2019 Annual Financial Statements for Comprehensive Balance Sheet Adjustment

- In view of the expected change of the anchor shareholder, high write-downs made on the still unprofitable U.S. business and consideration of coronavirus effects via balance sheet adjustment of asset values

- Group revenue for 2019 at € 56.6 million, EBIT adjusted for valuation allowances at -10.1 %

- Adequate liquidity and solid equity ratio of around 45 %

Delbrück, Germany, May 8, 2020 - In light of the expected change of its anchor shareholder and the extremely subdued economic forecast, Voltabox AG [ISIN DE000A2E4LE9] has undergone a comprehensive balance sheet adjustment. With this adjustment, the difference between equity and market capitalization, which had become rather significant, was reduced considerably. Due to the coronavirus pandemic, the company is currently not making a forecast for 2020. However, the liquidity situation is adequate. From where things stand today, there is no need for loans from the German development bank KfW. At 45 %, the equity ratio remains very stable.

The value adjustments made for 2019 come to a total of € 100.6 million. Of those, € 19.0 million are attributable to adjustments of assets with regard to the still unprofitable U.S. subsidiary Voltabox of Texas. The significantly worsened business prospects in the wake of the coronavirus pandemic have been taken into account by an extraordinary write-down primarily through now permanent impairment of assets totaling € 65.0 million. The reversal of the transaction from the end of 2019 that sold right of use assets for power electronics products and electric drive trains worth € 16.6 million is also reflected in the figures. Because of the COVID-19 pandemic, the buyers no longer saw an opportunity to profitably use their acquired IP rights and thus made use of their contractually agreed right to rescind the contract. The Management Board assumes that no further valuation allowances will need to be made in response to the coronavirus pandemic.

"The ongoing adjustment of our statement of financial position is an important step for the stable and sustainable development of our company," says Jürgen Pampel, Chief Executive Officer of Voltabox AG. "With it, we are creating the conditions to be able to get going again after we overcome this global economic recession. We also see it as a measure that will increase confidence of the capital market by showing the severe effects of the coronavirus pandemic as early and transparently as possible on the balance sheet."

According to preliminary figures, the revenue of the Voltabox Group came to € 56.6 million in the past fiscal year. Not reaching the forecast of € 70 to 80 million is attributed to the reversed transaction of the sold IP rights. The preliminary earnings before interest and taxes (EBIT), adjusted for special effects, come to € -5.7 million. This corresponds to an EBIT margin of -10.1 %; the forecast range of -8 to -9 % was thus not achieved.

Despite the significant valuation allowances, the equity ratio as of December 31, 2019, is around 45 percent with equity of around EUR 41 million. "Our liquidity position remains adequate," emphasizes Patrick Zabel, Divisional Director for Finance. "We have deliberately decided against applying for a KfW loan because there is no need to based on where things stand today."

In light of the COVID-19 pandemic, the Voltabox Management Board is very conservative in evaluating the business prospects for the ongoing year, especially since project business accounts for a high proportion of total revenue. Considering the continued high uncertainty regarding the economic consequences of the pandemic, it is not possible to make a reliable revenue forecast. Voltabox AG will mainly realize its revenue this year in the areas of buses and intralogistics. The Management Board also sees realistic opportunities for entering the automotive business this year, specifically in the starter batteries product category.

The plan for the sale of the investment in Voltabox AG, which was published by the majority shareholder paragon on March 3, 2020, and the effects of the coronavirus pandemic on business performance have been completely integrated into the management report of the 2019 Annual Report. This will now be published in early June.

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, as well as a development site in Markgröningen, Germany.

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]