Brockhaus Technologies with high revenue and earnings growth in the first quarter of 2023

• Revenue increase by +41% to €33.4 million, adjusted EBITDA of €9.6 million +70% above prior-year period
• Bikeleasing continues dynamic growth with ~28,000 (+41%) facilitated bikes
• IHSE receives largest order in company history
• Further reduction of group net debt to 0.7x EBITDA enables high financing capacity
• Great optimism for 2023: Planned revenue growth to €165 million – €175 million with an EBITDA margin of 35%

Frankfurt am Main, May 15, 2023. Brockhaus Technologies AG (BKHT, ISIN: DE000A2GSU42) has started the fiscal year 2023 with dynamic revenue and earnings growth. In the first quarter of 2023, the company reported an increase of +40.7% in revenue to €33.4 million (Q1 2022: €23.8 million). Adjusted EBITDA increased by +69.9% to €9.6 million (Q1 2022: €5.7 million*), which corresponds to a significant increase in the adjusted EBITDA margin from 23.8% to 28.8%. At the same time, adjusted EBIT increased by +72.2% to €8.6 million (Q1 2022: €5.0 million). BKHT is thus fully on track to achieve the full-year guidance communicated in March with revenue growth to €165 million – €175 million (2022: €142.7 million) and an adjusted EBITDA margin of 35% (2022: 33.2%).

The group’s net debt in relation to adjusted EBITDA for the past twelve months was further reduced in the reporting period compared with year-end 2022 from 0.79x to 0.74x. As of March 31, 2023, net debt of the group amounted to €38.0 million and was thus largely at the level of December 31, 2022.

“We are extremely pleased with the start to the year of our two subsidiaries. Bikeleasing continues to grow dynamically and highly profitably, and also at IHSE the knot has been broken after the easing of pandemic-related restrictions. Accordingly, we are optimistic for the rest of the financial year to reach our annual targets with revenue between €165 million and €175 million and an EBITDA margin of 35%,” comments founder and CEO Marco Brockhaus on the development.

Bikeleasing continues dynamic growth unabated

Bikeleasing (Financial Technologies segment) continued its dynamic upward trend starting into the financial year 2023. Bikeleasing achieved an increase in revenue of 52.3% to €25.1 million (Q1 2022: €16.5 million) and an adjusted EBITDA of €9.4 million, which was around +90% higher than in the same period of the previous year (€4.9 million). This corresponds to an adjusted EBITDA margin of 37.2% (Q1 2022: 29.8%).

In the first three months of the financial year, Bikeleasing further increased the number of companies connected to its platform from around 45 thousand, with approximately 2.5 million employees behind them, to around 47 thousand and approximately 2.6 million employees. The number of new company bikes facilitated in the quarter rose by +41% year-on-year to around 28,000, underscoring the appeal of Bikeleasing as a cost-effective financing option within the bicycle market, especially in times of high inflation. In addition to the very good performance in the core market of Germany, activities in Austria also continued to develop very positively, which is expected to accelerate further in the typically stronger spring and summer months. The company also expects additional growth from the new connection of D2C brands to the Bikeleasing platform, which was launched in April starting with manufacturer Canyon.

IHSE with largest individual order in history and record order backlog

As already outlined in a press release at the end of April, the segment Security Technologies (IHSE and kvm-tec) is also on a profitable growth path in 2023. The segment recorded an increase in revenue of +14.5% to €8.3 million in the first quarter of 2023 (Q1 2022: €7.2 million). The main driver was the positive development in the Americas region, where revenue doubled compared with the same period of the previous year. Adjusted EBITDA was €1.6 million (Q1 2022: €2.1 million) and the corresponding adjusted EBITDA margin was 19.3%, compared to 28.7% in the same quarter of the previous year. The decisive factors for this margin development were planned cost increases in connection with the revived trade fair and travel activities after the lifting of the COVID-19 restrictions, the distribution effect of which will only be seen in the coming months, as well as the implementation of a group-wide IT project. As these are active investment decisions, the costs have also been taken into account accordingly in the forecast from the beginning. For the rest of the year, IHSE’s management expects a continuously strong upward trend. In April 2023 IHSE received the largest individual order since the company was founded in 1984 from a major governmental aviation authority, with a volume of over €7 million. Including this order, IHSE's order backlog reached a record level of around €13 million, up from €5.9 million as of December 31, 2022, reflecting a continuation of the upward trend already evident in 2022, after the company had suffered noticeably from the COVID-related travel and contact restrictions globally in the previous two years. In addition, IHSE realized an extraordinary income of €866 thousand with the completion of the sale of its property in Q1 2023. However, for the purpose of comparability and fair presentation of operating profitability, this income is excluded as part of the adjustments in the reporting period.

Great optimism for 2023: Forecast confirmed with revenue growth to €165 million – €175 million and EBITDA margin of 35%

With the backdrop of a very positive start to the financial year 2023, the Management Board of Brockhaus Technologies AG is very optimistic about achieving further records in revenue and earnings in 2023, despite the ongoing geopolitical uncertainties and banking turbulences. Due to the continued growth in both segments revenue is forecast to grow to €165 million – €175 million with an adjusted EBITDA margin of 35%. In the fiscal year 2023, the subsidiaries are to be further strengthened and the available financial resources are to be used in the best possible way for selective organic and inorganic growth initiatives. To this end, the company is in promising discussions.

For the quarterly statement Q1 2023 and more information on the company, please visit:
https://ir.brockhaus-technologies.com/websites/brockhaustechnologies/English/3000/publications.html

The earnings call for the first quarter of 2023 in English will take place today, May 15, 2023, at 4:00 p.m. (CET). Interested parties can register for the call under the following link: https://webcast.meetyoo.de/reg/vJzTvEO2z6SR

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:

Paul Göhring
Phone: +49 69 20 43 40 978

Fax:  +49 69 20 43 40 971

E-mail:  ir@brockhaus-technologies.com

For media:

GFD - Gesellschaft für Finanzkommunikation
Phone:  +49 69 97 12 47 33

Fax:  +49 69 97 12 47 20

E-mail:  dietz@gfd-finanzkommunikation.de

Consolidated key figures 1st quarter (Pro forma)*

* Note on prior-year comparison: Please refer to page 85 et seq. of our Annual Report 2022 for the definition of the alternative performance indicators. In 2022, the adjustments still included the loss from value step-up. In order to avoid discrepancies between the key performance indicators and IFRS as far as possible, this adjustment will no longer be made. As a result, there is no longer an adjustment to revenue and the prior-year figures have been adjusted accordingly. In addition, the earnings contribution of Palas (former Environmental Technologies segment), which was sold in November 2022, was removed from the prior-year figures.