DGAP-News: va-Q-tec AG

Press release

va-Q-tec continues strong growth in H1 2017

- H1 2017 revenue: EUR 22.5 million compared with EUR 15.6 million in H1 2016 (+44%)

- EBITDA H1 2017: EUR 4.2 million compared with EUR 2.9 million of adjusted EBITDA in H1 2016 (+45%)

- Very strong product business and strong service business as growth drivers

- Continued investment in capacities and processes

- New integrated production and logistics site acquired in Würzburg

- Founding of subsidiaries in Switzerland and Japan to expand service business and local presence in further attractive markets

Würzburg, 22 August 2017. va-Q-tec AG (ISIN DE0006636681 / WKN 663668), a technologically leading provider of highly efficient products and solutions in the area of thermal insulation and cold chain logistics, has today published its half-year financial report on business trends during the first six months of 2017 and announces continued strong growth in both revenue and EBITDA.

The company grew its revenue by 44%, from EUR 15.6 million in H1 2016 to EUR 22.5 million in 2017, according to half-year results (IFRS, unaudited). Total income was up by 34% from EUR 19.8 million in the prior-year period to EUR 26.6 million in H1 2017. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased from EUR 2.9 million (adjusted for special effects as part of the IPO) to EUR 4.2 million. The EBITDA margin amounts to 16%, compared to 15% (adjusted) in H1 2016.

This expansion is attributable to the very positive performance of the Products and Services divisions. Growth in the Products business - the sale of vacuum insulation panels (VIPs) - was driven by higher demand for high performance insulation for refrigeration installations and hot water tanks. Revenue in this operating segment amounted to EUR 8.5 million during the first six months of 2017, up 67% compared with H1 2016, when the company generated EUR 5.1 million of revenue. The Services business (rental of thermal containers and thermal boxes) reported strong growth, too: thanks to the higher number of container rentals at the UK subsidiary as well as further success in the box rental business, revenue generated with Services rose to EUR 8.8 million during the first six months of the year. It was thereby 54% higher than in the previous year's comparable period (EUR 5.7 million). Revenue generated with Systems (sales of thermal packaging) was up by 9% to EUR 4.9 million (previous-year period: EUR 4.5 million).

Stefan Döhmen, CFO of va-Q-tec AG, explains the growth dynamic in H1 2017: "va-Q-tec continues to report very good growth rates. As was already becoming clear in Q1, we reached particularly strong growth rates in the product business - our industrial base - enabling us to leverage economies of scale in both purchasing and production. We also achieved strong growth in the attractive services business by further expanding our base of existing customers and by acquiring new customers. By way of summary, for the 2017 financial year overall, we continue to expect revenue growth in the 35 to 40% range and sharp growth in profitability in absolute terms."

During the first half-year, a new, integrated production logistics site was purchased in Würzburg. The five Würzburg partial locations are to be aggregated to form one technology and logistics centre within the new headquarters as a consequence. This step serves to improve operating efficiency, expand capacities for production, administration and logistics, and bundle technological competencies. The fleet of rental containers for the global "Serviced Rental" of thermal containers was also expanded further. The company also continues to work permanently on optimising its business processes.

Dr. Joachim Kuhn, founder and Management Board Chairman (CEO) of va-Q-tec, adds: "Focused growth lies in the DNA of va-Q-tec and the company's performance during the first half of the year underscores this emphatically. The newly founded international subsidiaries enhance how we are seen as a reliable partner to global blue-chip customers in such important markets as Switzerland and Japan. We are also growing our local footprint in the USA. Along with the "internationalisation" growth lever, we see enormous potential in our technology platform overall. We are continuing to focus on innovative products and solutions, as our objective remains - to revolutionise cold chain logistics and to boost thermal energy efficiency."

The full report for the first half of 2017 is published today 22 August 2017 and made available on the website at ir.va-q-tec.com.

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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 the area of thermal insulation and cold chain logistics. The company develops, produces and markets highly efficient, thin vacuum insulation panels (VIPs) for insulation as well as phase change materials (PCMs) for reliable and energy-efficient temperature control. 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, for 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