Va Q tec : Q3 statement 2021

Quarterly statement | 9M 2021 (IFRS)

CONTENT

About va-Q-tec	Interim Group
	management report

03 Profile

03	Highlights in 9M 2021	04	Main events in the reporting period
		06	Financial position and performance
			in the first nine months of 2021
		06	Results of operations
		09	Net assets and capital structure
		11	Financial position

Consolidated interim financial statements	Other informationen
12	Consolidated income statement (unaudited)	19	Imprint
13	Consolidated cash flow statement (unaudited)	19	Remarks

1. Consolidated statement of financial position (unaudited)

1. Consolidated statement of cash flows (unaudited)

1. Other notes

1 ABOUT VA-Q-TEC

va-Q-tec is a pioneer in highly efficient products and solutions in the area of thermal insulation and TempChain logistics. The company develops, produces and markets vacuum insulation panels (VIPs) for insulation 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. These thermal packaging systems maintain constant inner temperatures, depending on type, for up to 200 hours without external energy input, irrespective of surrounding temperatures, whether low, or high. In order to implement temperature-sensitive logistics chains, va­ -Q-tec - within a global partner network - operates a fleet of rental containers and boxes meeting the highest thermal protection standards, such as in the case of constant- temperature transports in the pharmaceuticals industry. Along with Healthcare & Logistics as the main market, va-Q-tec addresses the following markets: Appliances & Food, Technics & Industry, Building, and Mobility. The high- growth company, which was founded in 2001, is based in Würzburg, Germany.

Further information: www.va-q-tec.com

3

About va-Q-tec

HIGHLIGHTS IN 9M 2021

• Very strong revenue growth of almost 38 % to EUR 73.4 million in 9M 2021 compared to EUR 53.2 million in 9M 2020
• Systems division (sale of thermal boxes) reports very dynamic growth of 65 %; Services division up 26 %; Products division (sale of vacuum insulation panels) up 32 %
• EBITDA of EUR 13.5 million, up 51 % year-on-year (9M 2020: EUR 9.0 million);
  EBITDA margin in relation to revenue improves to 18 % in 9M 2021 (9M 2020: 17 %)
• Healthcare sector's share of revenues (Temperature Controlled Supply Chain) rises slightly to 76 % (9M 2020: 75 %)
• International subsidiaries contribute positively to total revenues;
  "Other reporting segment" revenue share at 19 % in 9M 2021 (9M 2020: 11 %)

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2 MAIN EVENTS IN THE REPORTING PERIOD

va-Q-tec's thermal boxes and containers are deployed along the entire drug and vaccine value chain, from raw material transport through to the vaccination center or medical practice. Vaccination campaigns are already well underway in many countries in the Western Hemisphere. By contrast, comparatively few people have yet been vaccinated in climatically and logistically challenging countries in Asia and Africa. Along with possible booster vaccinations and adjustments of vaccines to address mutated virus variants, the business with related thermal transport containers and boxes should consequently stabilize in the following years, and accelerate va-Q-tec's growth on a sustainable basis.

With the start of the global coronavirus vaccination campaign in December 2020, the importance of stable and secure temperature chain logistics ("TempChains") came into sharp public focus worldwide. Vaccines, like many drugs, require permanently stable temperatures during transport and storage in order to ensure their effectiveness. With solutions for secure and energy-efficienttemperature-controlled transport, va-Q-tec can make an active contribution to the fight against COVID-19. The company already impressively demonstrated its expertise in the TempChain area in 2020. As a consequence, it is also playing an important role in the worldwide distribution of many vaccines. In January 2021, an agreement was signed with one of the world's largest vaccine manufacturers for the multi-year provision of high-tech transport containers for the international distribution of its vaccine, entailing several thousand pallet deliveries per year. These are handled both with thermal containers, which move within a global rental network, and with the help of a container variant offered for sale - a new, hybrid business model that is proving very successful. In addition to this partnership agreement, a further vaccine manufacturer is also preferring to ship most of its vital products using va-Q-tec's proven, secure thermal containers. Primarily, destinations within the EU are being supplied. Furthermore, va-Q-tec is involved in a large number of projects at both national and international level with almost all vaccine manufacturers. Thanks to the ramp-up of production and the approval of further vaccines, the volume of vaccines distributed with va-Q-tec solutions increased significantly again, especially in the third quarter. va-Q-tec looked ahead and already significantly expanded its capacities from the end of last year onward in order to be able to meet the anticipated demand globally at any time. To supply vaccination centers, many logistics companies both in Germany and internationally utilize va-Q-tec products, including on the so-called "last mile". For example, the Uruguayan government is relying on va-Q-tec solutions and services for its national vaccine distribution - which is posing a particular challenge due to climatic conditions in Latin America. Other countries have followed suit.

However, it was not only in the area of TempChain logistics that business performed very well in 9M 2021: va-Q-tec'shigh-tech vacuum insulation panels offer crucial advantages, especially wherever secure and highly efficient insulation solutions are required within the tightest of spaces. Accordingly, va-Q-tec is not only appreciated as a reliable partner in the Healthcare & Logistics area, but also in numerous other sectors such as in Technics & Industry (e.g. insulation of pipelines), in the Building sector (building insulation), as well as in the Mobility area (e.g. high- tech insulation of electric vehicles). This is underscored, for example, by the strategic partnerships with Hutchinson announced during the reporting period for thermal management in the mobility sector, and with Uponor for highly energy-efficient and form-flexible pipe insulation. Further possible applications arise, for example, in the areas of both very high and very low temperatures. The innovative panel solution va-Q-steel enables previously unattained insulation performance at ultra-low temperatures as well as high temperatures from - 200 up to + 400 °C, thereby achieving maximum reduction of energy losses. Even at high temperatures, va-Q-steel now enables the efficiency of such products as fuel cells and high-temperature batteries to be enhanced greatly thanks to the use of vacuum insulation. In addition to the currently dominant TempChain business, va-Q-tec's innovative high-tech insulation solutions have established the company in an excellent position to benefit from the megatrend of climate protection through thermal energy efficiency.

Interim Group management report

5

Overall, business performance in the reporting period was very encouraging thanks to va-Q-tec's highly sought- after portfolio of products and services. The company's dynamic revenue growth continued with a 38 % increase in revenue. The high growth momentum already evident in the first half of the year accelerated further in Q3 - and not only in the vaccine distribution area. At the same time, vaccine distribution is likely to remain an important TempChain logistics topic well into 2022 and beyond. After all, vaccination rates are still rather low in many countries of the world - compared to Europe and the USA - and given resumed rises in infection rates in many countries, further demand is expected in the context of booster and adapted vaccinations.

Products division (sale of vacuum insulation panels and phase change materials)

In the Products division (sale of vacuum insulation panels and phase change materials), revenues of kEUR 17,020 reflect dynamic year-on-year growth of 32 % (previous year: kEUR 12,942). The Products business thereby continued its pleasing trend from the third and fourth quarters of 2020, although the dynamic in the third quarter initially waned significantly compared with the first half of the year. Since then, va-Q-tec's customers have noted growing demand for energy-efficient refrigerators and freezers in their consumer markets. This is partly due to the "stay-at- home" trend, which is accompanied by e.g. greater consumption of frozen foods. In general, it is worth highlighting that VIP technology is becoming increasingly important due to the new EU energy efficiency labels for refrigerators and freezers that came into force on 1 March 2021. Accordingly, revenues in this division grew faster than planned at the start of the year.

Systems division (sale of thermal packaging systems)

In the Systems division (thermal packaging), revenues grew by an extremely strong rate of 65 % year-on-year, from kEUR 14,432 to kEUR 23,814. Business with the va-Q-pal SI ("SI" = SuperInsulation) performed particularly well.­ va-Q-tec developed this thermal container within a very short period of time in order to also supply remote regions with temperature-sensitive products such as coronavirus vaccines. The solution is fully adapted to standardized pallet sizes and offers a very good temperature holding time. For example, this product can maintain the temperature range of - 20 °C that is frequently required for coronavirus vaccines, including in extreme external temperatures, for many days without being dependent on external energy input or even constant refilling with dry ice. However, not only do such valuable vaccines have to be stored at a stable temperature until deployment, they also have to be transported securely at an optimum temperature to injection stations before being administered within vaccination centers, some of which cover extensive areas. In order to ensure this, within a short time­ va-Q-tec's Systems division also developed a product based on its va-Q-tray technology. A special inlay has been added to the va-Q-tray for this purpose, which enables the temperature-stable storage of pre-prepared vaccine syringes. This will ensure smooth logistical flows for the massive vaccination campaign. At the same time, the product is extremely light and uncomplicated to handle, stackable, and easy to operate on site. Originally, the va-Q-tray was developed for temperature controlled logistics in the food sector.

Services division (Serviced Rental of thermal packaging systems)

va-Q-tec's Services business comprises the container and box rental business for the transportation of temperature- sensitive goods, predominantly products from the pharmaceuticals and biotech sectors. This segment recorded an increase of 26 % to kEUR 31,324 in 9M 2021 compared to the same period of the previous year (previous year: kEUR 24,805). Overall, va-Q-tec benefited from a further broadening of its customer base in addition to its significant involvement in vaccine distribution. Moreover, following a coronavirus-related slowdown, the number of rentals of small thermal boxes for "last-mile" transports has risen sharply again. The expansion of the Services division will continue in the future and is considered a key growth factor for va-Q-tec.

Interim Group management report