va-Q-tec: Service business for pharmaceutical and biotech industry records significant progress and grows by 54% in H1 2017

• Growth in service business in H1 2017 of 54% to EUR 8.8 million
• Major new customers acquired in the container rental business and business with existing customers grows; H1 2017 revenue at EUR 6.9 million (+41% compared with H1 2016)
• Container rental network expanded to 300 commercial routes as of the end of H1 2017 (+125 routes year-on-year)
• Container fleet grows by more than 200 containers in H1 2017; approximately 250 further planned for second half of the year
• More than 1,200 rental containers, largest passively temperature controlled fleet worldwide; new network stations in Japan, India, Australia and Italy, 25 active network stations
• Airline partnerships agreed with Emirates SkyCargo, TAP Cargo and Egyptair Cargo
• Box rental business up by more than 100% from EUR 0.8 million to EUR 1.7 million in H1 2017

Würzburg, 18. September 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, reports significant progress in the development of the service business comprising global temperature-sensitive transportation for the pharmaceutical and biotech industry.

The services of va-Q-tec (“Serviced Rental”) enable customers to operate cold chains worldwide that are not only secure but also efficient in terms of cost and energy. For this purpose, va-Q-tec offers and maintains a fleet of rental containers (“va-Q-tainers”) that are in demand particularly from pharmaceutical and biotech customers. Since 2015, the Group has also been offering a rental business for its high-performance thermal transportation boxes. Through optimally integrating high-performance insulation with vacuum insulation panels (VIPs) and the storage of thermal energy by means of phase change materials (PCMs), the packaging systems of va-Q-tec hold temperatures constant between 24 and 200 hours.

Container rental
The rental business with air freight containers grew by EUR 2.0 million in the first half of 2017, from EUR 4.9 million in the previous year to EUR 6.9 million (+41%). With two of the largest European pharmaceuticals manufacturers as well as two large biotech companies, including one from the APAC region and one from the USA, va-Q-tec has succeeded in acquiring further globally operating customers. Business with already existing clients also remained on its positive track, reporting continuous volume growth. Overall, the number of commercial routes has increased by 125 within a year to reach 300 as of the end of the first half of 2017. Some of these routes have not yet reached their full revenue volume and consequently still bear further growth potential. Above and beyond this, numerous other customers have routes in earlier phases of the demanding qualification process. The growth targets in container rental for 2017 are also linked to the further development of such customers in advanced stages of this process.

Other network stations that have been opened during the current year in Japan, India, Australia and Italy bolster the presence of va-Q-tec in the APAC region as well as Southern Europe and the availability of services in the markets situated there. Customers can now utilise a total of 25 network stations worldwide. The rental container fleet grew by more than 200 units in the first half of 2017, with a further 250 planned for the second half of the year. With more than 1,200 passively temperature controlled containers, va-Q-tec thereby already commands the largest fleet of this type today and the second largest of any type at all in the market. These measures form the basis for the further global growth of va-Q-tec.

During the first half of 2017 va-Q-tec has also added to its partner network of airlines, freight forwarding companies and other logistics partners. Extensive partnerships were arranged with additional airlines such as Emirates SkyCargo, TAP Cargo and Egyptair Cargo, for instance. Such partnerships further enhance the availability of va-Q-tec rental containers for pharmaceuticals customers, especially in Asia, Latin America and the Middle East.

Box rental
Revenues generated by the business for the rental of small boxes, which is still very young and is operated not only in continental fleets but also in domestic fleets (the “last mile to the pharmacy”), expanded by more than 100% overall during the first half of 2017 from EUR 0.8 million to EUR 1.7 million. The continental business, currently operated largely from Dublin, was further expanded in this context. Especially for the optimised management of box fleets, va-Q-tec has developed its own software and tested it at the pilot hub in Würzburg with smaller volumes. In the domestic fleet area, service revenues from the partnership with the Swiss Post also reported continuous growth.

Dr. Joachim Kuhn, CEO der va-Q-tec, comments on the service business for the global pharmaceuticals and biotech industries: “With our rental solutions in the box and container area, we see ourselves as offering a disruptive technology at a very attractive price. We are pleased that our intensive development work is increasingly paying off. “Serviced Rental” is of the greatest strategic importance for va-Q-tec. We see ourselves on a massive growth path in this context – an appraisal that also underscores the enthusiasm of both new and existing customers for our passive systems. Overall, we thereby aim to revolutionise cold chain logistics, starting with the pharmaceuticals cold chain. Finally, the regulatory influence to guarantee secure cold chains is growing, and not only in the pharmaceutical and biotech industry.”

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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 innovative, thin vacuum insulation panels (VIPs) as well as phase change materials (PCMs) for the reliable and energy-efficient controlling and insulation of temperature. 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, between 24 and more than 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