Successful management during the coronavirus pandemic: revenue of € 51.6 million in line with adjusted forecast - high operating margin of 24%

- Revenue in Environmental Technologies segment (Palas) up +31% on previous year

- Projects postponed by customers in the Security Technologies segment (IHSE) due to continuing travel restrictions and social distancing requirements

- Internationalization and strong acquisition pipeline for the first half of 2021

Frankfurt am Main, 15 April 2021. Brockhaus Capital Management AG (BKHT, ISIN: DE000A2GSU42, "BCM"), a long-term oriented technology group focused on acquiring high-margin and high-growth technology champions within the German Mittelstand, announced its results for fiscal year 2020 on 15 April 2021.

BCM brought the 2020 fiscal year to a successful conclusion: Despite the continuing impact of the COVID-19 pandemic, BCM Group generated revenue of € 51.6 million. This is a decline of only 5% from the record level achieved in the previous (pro forma) year 2019 and is in line with the adjusted forecast. This also underlines the strategic direction of BCM's focus on acquiring high-margin and high-growth technology leaders within the German Mittelstand. Based on adjusted EBITDA of € 12.3 million, the Group's operating margin of around 24% is significantly higher than in the preceding quarters. Free cash flow before taxes and costs of the initial stock market listing amounted to € 9.4 million. On a non-pro forma basis, i.e., if inorganic growth resulting from the acquisition of IHSE in 2019 is included, the Group's revenue increased by +211.5%.

"During this coronavirus crisis, it has been imperative to show resilience against challenges. That is something we managed very well. Especially the products of our subsidiary Palas for the quality assurance of respiratory masks recorded strong demand during the pandemic. The revenue level that we achieved, combined with high profitability, is an excellent outcome in one of the most difficult fiscal years and shows that we have the right line-up as a technology group," says Marco Brockhaus, CEO of BCM.

Strong demand for Palas test rigs for quality assurance of respiratory masks

The Environmental Technologies segment, which consists of Palas, performed extremely well in the reporting period: compared with fiscal year 2019, Palas recorded revenue growth of +31% to € 18.1 million. Palas offers one of the leading technologies for high-precision measurement and characterization of even the smallest air particles, such as fine dust and nanoparticles. Since the spring of 2020, this technology has increasingly been used to test the quality of respiratory masks. In the wake of the COVID-19 pandemic, public interest in the topic of "aerosols" and the effectiveness of respiratory masks has jumped significantly. As a specialist for aerosol technology, Palas developed test rigs for respiratory masks as early as in the first quarter of 2020 and launched them successfully in the market. Among other applications, the system is used by the German government to assure the quality of masks imported from China to Germany.

Travel restrictions and social distancing requirements hamper IT infrastructure projects of IHSE customers

The Security Technologies segment, consisting of the IHSE Group, saw the postponement of customer projects due to international travel restrictions and social distancing rules, which led to a decline in revenue by -17%. This was partly offset by continuous growth in the basic business with smaller customers and primarily impacted the international markets, while the EMEA business continued to develop positively. IHSE is a global technology leader for KVM (keyboard, video, mouse) solutions, enabling highly secure, latency-reduced and loss-free data transfer in mission-critical applications such as police and fire department control rooms, air traffic control, or hospitals. Due to the relevance of KVM technology in an environment of increasing digitization and connectivity, BCM expects significant catch-up effects as the COVID-19 pandemic recedes.

As one of the key strategic initiatives of the Group, BCM is actively working together with Palas and IHSE toward further internationalization. To this end, Palas established its own sales entity in Shanghai during the third quarter of 2020 and IHSE is also planning to open a local presence in China in order to take advantage of the growth opportunities of the Chinese market and to become less affected by travel barriers.

"We are confident for 2021 that the fight against the pandemic will be won thanks to the increasing rollout of vaccines. On this basis, and because of our strict focus on technology leaders with price setting power within their niche markets, we expect a sustained upswing for the entire Group," says Marco Brockhaus.

In the current fiscal year 2021, BCM Group expects organic revenue growth of +20% to € 62 million. The adjusted EBITDA margin is projected to increase slightly and therefore amount to more than the 24% achieved in 2020.

With regard to inorganic growth driven by further acquisitions, CEO Marco Brockhaus is optimistic:
"In terms of acquisitions, we are anticipating a strong first half of 2021 with a very well filled transaction pipeline."

The 2020 Annual Report is now available at https://ir.bcm-ag.com/websites/brockhaus/English/3000/publications.html.

Financial Calendar

May 15, 2021 Quarterly Report Q1 2021
June 16, 2021 Annual General Meeting 2021

About Brockhaus Capital Management

Brockhaus Capital Management AG (BKHT, ISIN: DE000A2GSU42, "BCM"), based in Frankfurt/Main, is a technology group acquiring high-margin and high-growth technology champions with B2B business models in the German Mittelstand. With a unique platform approach and a long-term horizon, BCM actively and strategically supports its subsidiaries in achieving long-term profitable growth beyond industry and country boundaries. At the same time, BCM offers a gateway into these non-listed German technology champions, which are otherwise inaccessible to capital market investors.

For further information please visit www.bcm-ag.com

Contact Details
For investors:

Brockhaus Capital Management - Paul Göhring
Head of Investor Relations
Phone: +49 69 20 43 40 978
Fax: +49 69 20 43 40 971
E-Mail: goehring@bcm-ag.com

For media:
USC - Svenja Lahrmann
Phone: +49 221 280 655 18
E-Mail: presse@us-communications.de