Va-Q-tec: Preconditions created for further growth in 2018

va-Q-tec: Preconditions created for further growth in 2018

- 2017 earnings and revenue growth confirmed

- Container and box fleets as well as network stations further expanded worldwide in 2017

- Expansion of capacities at the Würzburg and Kölleda sites advanced

- Additional subsidiaries in Switzerland and Japan as well as a new US branch operation as part of growing internationalisation

- Investments in rental business, internationalisation and additional capacities form good basis for further growth

- 2018 guidance: revenue between EUR 56 million and EUR 63 million and strong EBITDA growth

Würzburg, 12 April 2018. va-Q-tec AG (ISIN DE0006636681 / WKN 663668), a technologically leading supplier of highly efficient products and solutions in the thermal insulation and cold chain logistics area, today publishes its 2017 annual report. The report confirms the strong revenue growth of 32% to EUR 46.9 million (previous year: EUR 35.5 million). In terms of earnings before interest, tax, depreciation and amortisation (EBITDA), va-Q-tec achieved a 4% increase to EUR 7.2 million (previous year: EUR 7.0 million (adjusted)). This corresponds to a 13% EBITDA margin (previous year: 16% (adjusted)). The revenue growth achieved in 2017 is especially attributable to a strong Products business as well as a strong Services business. The former benefited from more demand for high-performance insulation for refrigeration equipment and storage water heaters. In the strong Services business - comprising the rental of thermal containers and thermal boxes - the positive trend in container rentals at the UK subsidiary and the continuation of the success of the box rental business made significant contributions.

Dr. Joachim Kuhn, founder and Management Board Chairman (CEO) of va-Q-tec, comments: "2017 was a very good year for us. Our products and services are benefitting from strong demand from major sector players worldwide. At the same time, we see the deployment of vacuum technology as just at its start. In 2017, this also led us to invest intensively in expanding our container and box fleets, in the internationalisation of our business activities as well as in additional capacities. As a consequence, we see ourselves as excellently prepared to continue our growth story medium- and long-term."

In its global Services business ("Serviced Rental"), va-Q-tec further expanded its container fleet by 50% in 2017, as planned, to reach approximately 1,500 containers at present. va-Q-tec thereby already operates the largest fleet of high-performance thermal containers of this type worldwide. To serve growing demand, the fleet is to be topped up by a further 500 units to a total of 2,000 containers in 2018. Besides this, va-Q-tec invested in additional thermal boxes. New network stations were also opened in Japan, India, Australia and Italy, with customers now able to access va-Q-tec service at 25 stations worldwide. Extensive partnerships were concluded with further renowned airlines such as Lufthansa and TAP, enabling va-Q-tec to further expand the global availability of rental containers for pharmaceutical customers.

To consistently exploit growth opportunities worldwide, va-Q-tec reached important milestones in 2017 with the founding of subsidiaries in Switzerland and Japan as well as a new branch operation in the USA. In Switzerland, the new subsidiary marks the start of the strategic partnership with Swiss Post, which in future will not only use the va-Q-tec boxes but also the strong technology and process experience of va-Q-tec in temperature-controlled transports for pharmaceutical products. With the subsidiary in Japan, the company is bolstering its presence in the Asia-Pacific growth region, while the US fulfilment centre in Langhorne, Pennsylvania, is ideally situated in relation to Philadelphia, New York and Boston, and its renowned biotechnology, healthcare and pharmaceutical centres. In consequence, the assembly of thermal boxes and sale of all va-Q-tec products and services for the North American market will be realised locally in the future.

In addition, va-Q-tec invested in a new production and logistics headquarters as well as in machinery and plant capacities in 2017. Along with aggregating several sub-locations in Würzburg, the company created further capacities and spaces. Synergy effects and considerable efficiency enhancements in operational processes are also connected with this integration of sub-locations. Thanks to good infrastructure, the new area also offers optimal preconditions for logistics as well as further expansion possibilities. Work also started in 2017 on a large-scale new construction on the second site in Kölleda, Thuringia, where the company meanwhile produces more than 75% of all its manufactured parts, especially larger series. The commissioning of the new construction in Kölleda is planned for the second quarter of 2018.

Given the positive prospects and investments that have been made, the Management Board expects consolidated revenue for the 2018 financial year to lie in a range between EUR 56 million and EUR 63 million. As far as EBITDA in 2018 is concerned, va-Q-tec anticipates strong year-on-year growth, reflecting operational economies of scale and a shift in the product mix towards a greater proportion of services with higher margins.

The complete 2017 annual report is available from today on the website at ir.va-q-tec.com.

2017 financials compared with the previous year

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IR contact

va-Q-tec AG
Felix Rau
Telephone: +49 931 35942 - 2973
Email: Felix.Rau@va-Q-tec.com

cometis AG
Claudius Krause
Telephone: +49 611 - 20 585 5-28
Email: krause@cometis.de

About va-Q-tec
va-Q-tec is a leading supplier of high-performance products and solutions in thermal insulation and cold chain logistics. The company develops, produces and markets highly efficient and consequently thin vacuum insulation panels (VIPs) as well as phase change materials (PCMs) for reliable and energy-efficient temperature controlling. In addition, va-Q-tec produces passive thermal packaging systems (containers and boxes) through optimally integrating VIPs and PCMs, which can maintain constant temperatures, depending on type, up to 200 hours without external energy input. To implement temperature-sensitive logistics chains, va-Q-tec - within a global partner network - operates a fleet of rental containers and boxes meeting demanding thermal protection standards. Along with healthcare & logistics as the main market, va-Q-tec addresses the following further markets: Appliance & Food, Technics & Industry, Building and Mobility. The high-growth company, which was founded in 2001, is based in Würzburg, Germany. Further information is available at: www.va-q-tec.com