Brockhaus Technologies AG: Significant increase in revenue by 18.5% to €39.6 million and in adjusted EBITDA by 18.0% to €11.4 million (28.7% margin) in Q1 2024 – forecast 2024 unchanged

Frankfurt am Main, May 7, 2024.

Brockhaus Technologies AG (BKHT, ISIN: DE000A2GSU42, "Brockhaus Technologies") generated revenue of €39.6 million in the first quarter of the fiscal year, which corresponds to organic growth of +18.5% compared to the same period of the previous year (Q1 2023: €33.4 million). Adjusted EBITDA increased by +18.0% to €11.4 million, representing an adjusted EBITDA margin of 28.7% (Q1 2023: €9.6 million; 28.8% margin). Adjusted EBIT also increased by +18.3% to €10.2 million, resulting in an adjusted EBIT margin of 25.8% (Q1 2023: €8.6 million; 25.8% margin).

Due to the acquisitions of four external sales agencies in the Financial Technologies segment throughout the fiscal year 2023, the group reports earnings figures for Q1 2023 on a pro forma basis additionally for better comparability. As the acquisitions have a cost-reducing effect, the pro forma results are higher. Compared to the pro forma figures of the previous year's quarter Q1 2023, adjusted EBITDA increased by +4.0% (Q1 2023: €10.9 million; 32.7% margin), and adjusted EBIT increased by +2.9% (Q1 2023: €9.9 million; 29.7% margin).

Before adjustments, the preliminary EBITDA amounted to €11.1 million (Q1 2023: €10.4 million) and EBIT to €5.2 million (Q1 2023: €5.8 million). EBIT is particularly influenced by purely consolidation-related PPA amortization.

With these results, Q1 2024 falls within our expectations, although two effects are leading to postponement of revenue into subsequent quarters.

In the Financial Technologies segment (Bikeleasing), the already anticipated normalization of seasonality became evident. In 2023, 19% of the yearly volume of newly brokered bicycles occurred in Q1, marking an unusually high proportion (long-term average: 13%). This was due to unusually dry weather conditions in January and February 2023, alongside the still limited availability of bicycles and e-bikes caused by the aftermath of the COVID-19 pandemic. The latter led many Bikeleasing users to order their bikes well in advance in anticipation of the difficult delivery situation, rather than waiting for the first warm weeks of the year. In the meantime, bike availability has returned to normal, reducing the lead time for orders accordingly and leading to a typical, more pronounced seasonality. This means that an even higher proportion of the annual volume for 2024 is expected to occur in Q2 and Q3 (see presentation for the Earnings Call FY 2023, page 6). In conjunction with increased personnel and other operational expenses aimed to enable long-term strong growth, this shift resulting from a normalization of seasonality had an adverse effect on profit margins in Q1 2024.

In the Security Technologies segment (IHSE), revenue experienced a decline of -12.5% to €7.3 million. This was caused mainly by a planned two-week production overhaul at IHSE's main facility in Oberteuringen, aimed at increased automation and thus production efficiency.

Brockhaus Technologies' forecast for fiscal year 2024 remains unchanged, with revenue expected to range between €220 million and €240 million and adjusted EBITDA between €80 million and €90 million.

Regarding the definition of alternative performance measures, see page 94 onwards of our Annual Report 2023.

The financial figures stated in this disclosure are preliminary and unaudited. The Q1 2024 quarterly report will be released on Wednesday, May 15, 2024. The earnings call for Q1 2024 is also scheduled for Wednesday, May 15, 2024, at 16:00 CEST.

Contact:

Brockhaus Technologies – Florian Peter

Phone: +49 69 20 43 40 90

Fax: +49 69 20 43 40 971

E-Mail: ir@brockhaus-technologies.com