Brockhaus Technologies AG: Significant revenue and earnings growth in the first quarter of 2024 – forecast 2024 unchanged

• Revenue increases by +18.5% to €39.6 million, adjusted EBITDA at €11.4 million, up +18.0% from the previous year period
• Bikeleasing continues growth; revenue rises by +28.7%, and the number of corporate customers connected to the digital platform reaches 62,000 (+32.4% over the last 12 months)
• IHSE starts the fiscal year as expected; significant business growth is planned in the further course of the year
• Group net debt significantly reduced to 0.65x adjusted pro forma EBITDA
• Forecast for 2024 unchanged with revenue of €220 million to €240 million and adjusted EBITDA of €80 million to €90 million

Frankfurt/Main, May 15, 2024. Brockhaus Technologies AG (BKHT, ISIN: DE000A2GSU42) continues its profitable growth trajectory in the fiscal year 2024. In the first quarter of 2024, the technology group reported an increase in revenue of +18.5% to €39.6 million (Q1 2023: €33.4 million). Adjusted EBITDA rose by +18.0% to €11.4 million (Q1 2023: €9.6 million), which corresponds to an adjusted EBITDA margin of 28.7% (Q1 2023: 28.8%). This was achieved despite significantly higher personnel and other operating expenses to enable long-term growth. Adjusted EBIT increased by +18.3% to €10.2 million (Q1 2023: €8.6 million). BKHT is therefore in line with expectations and on track to achieve the communicated full-year forecast, with revenue growth to €220 million - €240 million (2023: €187 million) and adjusted EBITDA of €80 million - €90 million (2023: €62 million).

As four external sales agencies were acquired in the Financial Technologies segment during the fiscal year 2023, which now contribute to cost savings due to the elimination of commissions, reporting for the fiscal year 2023 is additionally presented on a pro forma basis for better comparability. This approach presents the consolidated financial results of the group as if the four sales agencies had already been part of Brockhaus Technologies as of January 1, 2023. Compared to the pro forma figures, there is a +4.1% increase in adjusted EBITDA for the first quarter (Q1 2023: €10.9 million; 32.7% margin) and a +2.9% increase in adjusted EBIT (Q1 2023: €9.9 million; 29.7% margin).

Before adjustments, 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.

"We will continue our success story in 2024 and confirm our annual forecast with revenue between €220 million and €240 million and adjusted EBITDA of €80 million to €90 million. Due to a return to long-term seasonality at Bikeleasing, with a high proportion of annual business volume in Q2 and Q3, as well as a solid order backlog at IHSE by the end of April, we expect particularly strong growth acceleration in the coming two quarters. We are on track," commented CEO Marco Brockhaus on the development.

As of March 31, 2024, BKHT had high cash and cash equivalents of €56.0 million (December 31, 2023: €53.7 million), which can be used both for future growth financing and acquisitions, as well as for further repayment of acquisition loans. The group's net debt relative to the adjusted pro forma EBITDA of the last twelve months continued to decrease during the reporting period, from 0.87x at the end of 2023 to 0.65x. As of March 31, 2024, the group's net debt stood at €44.2 million, significantly lower than the level on December 31, 2023, when net debt was €58.5 million.

Bikeleasing continues its profitable growth trajectory in 2024

Bikeleasing (Financial Technologies segment) continues its profitable upward trend in 2024. The company achieved an increase in revenue of +28.7% to €32.4 million (Q1 2023: €25.1 million) and adjusted EBITDA of €12.0 million, which was +13.1% higher than in the same period of the previous year (€10.6 million) from a pro forma perspective. This corresponds to an adjusted EBITDA margin of 37.2% (Q1 2023: 42.3%).

In the first three months of the fiscal year, Bikeleasing increased the number of companies connected to its platform compared to the previous year by approximately 2.5 thousand to around 62 thousand (+32.4% compared to March 31, 2023), representing around 3.4 million employees. The number of new company bikes brokered in the reporting quarter was approximately 27 thousand representing a slight decrease compared to the same quarter of the previous year. This is due to the already announced normalization of seasonality. In 2023, Q1 accounted for 19% of the annual volume of newly brokered company bikes, which is an unusually high proportion compared to previous years (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 customers 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. In April 2024, the number of newly brokered bikes grew by +30% compared to the same month of the previous year.

This effect, combined with increased expenses for sustainable and long-term growth, resulted in the lower margin for the first quarter. Looking at the full year, a significant margin increase is expected.

For the next few years, Bikeleasing expects increasingly positive effects from the acquisition of sales agencies, improved market penetration with a continuously increasing number of corporate clients, increased utilization rates among existing customers and the internationalization of its business beyond Germany and Austria. In the future, additional employee benefits will also be offered on the platform alongside bicycles. In this context, the company strengthened its position in April 2024 by acquiring Probonio, a software company specialized in employee benefits management.

High order backlog at IHSE promises expected growth for the rest of the year

As expected, the Security Technologies segment (IHSE) recorded a decrease in revenue of -12.5% to €7.3 million in the first quarter of 2024 (Q1 2023: €8.3 million). The main reason for this was a planned production overhaul at IHSE's headquarter, aimed at achieving increased automation and higher production efficiency in the future. The adjusted EBITDA was €0.5 million (Q1 2023: €1.6 million) and the adjusted EBITDA margin was 7.1%, down from 19.3% in the same quarter of the previous year. The main reason for the lower margin is primarily the decline in revenue with an unchanged cost base to enable the expected future growth.

The EMEA region showed positive development with revenues of €5.5 million, significantly higher than the comparative period (Q1 2023: €3.9 million). In the Americas region, revenues in Q1 2024 were €1.5 million and therefore lower than in the previous year (Q1 2023: €3.8 million), as the comparative quarter of 2023 included a large individual order. IHSE’s management expects a strong upward trend for the rest of the year. By the end of April, IHSE's order backlog had already improved to €8.2 million. As of December 31, 2023, this figure stood at €4.6 million. Particularly for the Americas region, a significant increase in revenue is expected in the second half of the year. In the upcoming years, IHSE should also benefit from the global trend towards increased digitization and growing connectivity, as well as the necessity of protection against the global increase in cyberattacks. Additionally, the company expects a high potential from the new compliant standards for highly security-critical applications (Common Criteria and NIAP), which enable IHSE to supply defense projects with the highest security clearances; a market that was previously entirely closed.

Growth trajectory for 2024 confirmed: Revenue forecast between €220 million and €240 million with adjusted EBITDA of between €80 million and €90 million

Against the backdrop of a positive start to the fiscal year 2024 and the outlook for the coming months, the management of Brockhaus Technologies AG remains optimistic about achieving further revenue and earnings improvements in 2024, despite ongoing geopolitical and macroeconomic uncertainties. Based on the expected development and the associated continued growth in the first quarter, the unchanged forecast anticipates revenue growth to €220 million - €240 million with adjusted EBITDA of between €80 million - €90 million.

For the quarterly statement Q1 2024 and more information on the company, please visit: https://ir.brockhaus-technologies.com/websites/brockhaustechnologies/English/3000/publications.html

The earnings call for the 2024 first quarter results in English will take place today, May 15, 2024, at 4:00 p.m. (CET). Interested parties can register for the call under the following link: https://webcast.meetyoo.de/reg/qFSFoJ9MQ11c

About Brockhaus Technologies

Based in Frankfurt am Main, Brockhaus Technologies AG (BKHT, ISIN: DE000A2GSU42) is a technology group that acquires high-margin, high-growth technology and innovations champions with B2B business models in the German Mittelstand. With a unique platform approach and a long-term horizon, Brockhaus Technologies actively and strategically supports its subsidiaries in achieving profitable long-term growth, both across industries and internationally. At the same time, Brockhaus Technologies offers a gateway into these non-listed German technology champions, which are otherwise inaccessible to capital market investors. For more information, please visit: https://www.brockhaus-technologies.com/en/

Contact information
For Investors:                                                          For media:
Florian Peter                                                             GFD - Gesellschaft für Finanzkommunikation
Phone: +49 69 20 43 40 976                                    Phone: +49 69 97 12 47 33
Fax:      +49 69 20 43 40 971                                    Fax:      +49 69 97 12 47 20
E-Mail:  ir@brockhaus-technologies.com                  E-Mail:  dietz@gfd-finanzkommunikation.de

Consolidated key figures for the 1st quarter 2024*

* For the definition of the alternative performance measures, please refer to page 94 onwards of our Annual Report 2023 and page 13 onwards of our Quarterly Statement Q1 2024.