VARTA AG

FY2020 Final Results

Disclaimer

This presentation contains certain financial me assures (including forward - looking measures) that are not calculated in accordance with IFRS and are therefore considered "non- IFRS financial measures". The management of VARTA believes that these non- IFRS financial measures used by VARTA, when considered in conjunction with ( but not in lieu of) other measures that are computed in accordance with IFRS, enhance an understanding of VARTA' s results of operations, financial position or cash flows. A number of these non- IFRS financial measures are also commonly used by securities analysts, credit rating agencies and investors to evaluate and compare the periodic and future operating performance and value of other companies with which VARTA competes. These non- IFRS financial measures should not be considered in isolation as a measure of VARTA' s profitability or liquidity, and should be considered in addition to, rather than as a substitute for, net income and the other income or cash flow data prepared in accordance with IFRS. In particular, there are material limitations associated with the use of non- IFRS financial measures, including the limitations inherent in determination of each of the relevant adjustments. The non- IFRS financial measures used by VARTA may differ from, and not be comparable to, similarly- titled measures used by other companies.

Certain numerical data, financial information and market data (including percentages) in this presentation have been rounded according to established commercial standards. Furthermore, in tables and charts, these rounded figures may not add up exactly to the totals contained in the respective tables and charts.

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Executive Overview Strategy

  • Historic results in 2020
  • Successful integration of Consumer business
    • Raised revenues significantly, effectively used synergies
    • Further cash generator which contributes to growth in Li-Ion business
  • Market intelligence allows for first-mover benefits and leveraging of potentials
    • Well connected to all important players in our segments on global scale
    • Innovative power secures technological advantage
  • New products and strategy with CoinPower
    • 30% increase in energy density achieved already, further increase of 20% by end of 2022 - well ahead of plan
    • Differentiation of portfolio allows addressing new customers
  • New large Li-Ion high power round cell
    • The cell can be fully charged within 6 minutes and has more power than other cylindrical li-ion cells of same format
    • Various applications possible, from power tools to automotive uses
    • Pilot production by the end of the year
    • High interest by customers
    • Experience in building profitable Li-Ion factories will secure fast industrialisation

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Executive Overview Financials

  • FY 2020 figures above guidance
    • Group revenue EUR 870m (+139.8% YoY); w/o acquisition: +47.2% YoY
    • Adj. EBITDA* EUR 241m (+147.3% YoY); w/o acquisition: +91.7% YoY
    • Adj. EBITDA margin at 27.7% (2019: 26.9%)
  • Microbatteries & Solutions driving growth
    • Cost reduction and economies of scale lead to further increase of EBITDA margin of 9PP
    • Lithium-IonCoinPower: further strong growth in revenue; well positioned with new product with +30% higher energy density for the expected strong market growth in the coming years
    • Hearing aid batteries: expansion of market leadership for rechargeables
  • Household Batteries with excellent cash flow support growth in Li-ion business
    • Consumer Batteries: Focus on VARTA branded business increased profitability and generates excellent cash flow, successful integration completed; increase of energy density in autumn
    • Energy Storage Systems: Increased profitability and 50% growth in revenue
  • Guidance 2021**: further strengthening of EBITDA up to 30 % Margin (up to 2,5 PP compared to 2020)
  • Revenues: high single digit percentual growth reaching 940 mEUR

*Including adj. items from shared-based payments, expenses from M&A transactions, restructuring and integration costs and inventory step-up from purchase price allocation (PPA)

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**In view of the global spread of the coronavirus (COVID-19), negative effects on the VARTA AG Group cannot be ruled out. However, for now, these risks have not materialised

VARTA Group - Financial Highlights FY 2020

Strong performance - In a transition year with first time consolidation of VARTA Consumer

  • VARTA Group - Delivered very strong FY results - further accelerating the high pace of revenue and earnings growth
  • Microbatteries & Solutions - Exceptionally strong FY 2020 results

Revenue +49% Adj. EBITDA +96% Adj. EBITDA margin at 36.8% (+8.8PP)

  • Household Batteries - Dominated by Consumer business for 91%

(revenue) with a strong cash-flow performance

Adj. EBITDA margin at 15.0% (+5.7PP)

(The previous year's figures have been adjusted to the new segmentation; retrospective pro forma adjustment)

Revenue

Adj. EBITDA

in EURm

in EURm

+140%

147%

870

241

36398

27,7%

Dividend Payments - Totaling around 100m EUR / 2.48 EUR per share

26,9%

Adj. EBITDA Margin

The dividend recommendation remains subject to AGM approval

FY 2019

FY 2020

FY 2019

FY 2020

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VARTA AG published this content on 31 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 March 2021 10:21:08 UTC.