EQS-News: Brockhaus Technologies AG: Highly profitable growth in the first half of 2024 – forecast 2024 confirmed

Brockhaus Technologies AG: Highly profitable growth in the first half of 2024 – forecast 2024 confirmed

• Growth in revenue of +29.7% to €109.0 million and adjusted EBITDA of +31.0% to €37.8 million
• Free cash flow before taxes increases to €2.3 million (H1 2023: €-143 thousand) and adjusted earnings per share by +53% to €0.66
• Bikeleasing continues to grow dynamically; revenue +42.8% and adjusted EBITDA +29.5% above previous year - strongest new customer growth in a first half-year since the company’s founding, with an increase in the number of corporate customers to around 67,000 (+30.5% over the last twelve months)
• Rebranding of the segment Financial Technologies to HR Benefit & Mobility Platform; with the acquisition of Probonio, Bikeleasing is taking the strategic step to evolve into a comprehensive Multi-Benefit-Platform
• IHSE expects strong revenue growth in the second half of the year; high order backlog of €11.5 million at the end of July, driven by newly met product standards for highly mission-critical environments
• Low net debt of 0.74x adjusted LTM EBITDA within the group
• Forecast for 2024 unchanged with revenue of €220 million – €240 million and adjusted EBITDA of €80 million – €90 million 

Frankfurt/Main, August 14, 2024. Brockhaus Technologies AG (BKHT, ISIN: DE000A2GSU42) continues its dynamic and highly profitable growth trajectory. In the first half of 2024, the technology group generated revenue of €109.0 million, which corresponds to growth of +29.7% compared to the same period of previous year (H1 2023: €84.1 million). Adjusted EBITDA increased by +31.0% to €37.8 million with an adjusted EBITDA margin of 34.6% (H1 2023: €28.8 million; 34.3% margin). This was achieved despite higher personnel and other operating expenses to enable long-term growth. Adjusted EBIT increased by +32.7% to €35.5 million. As a significantly higher business volume is expected in the second half of the year, particularly in the Security Technologies segment (IHSE), the group is on track to achieve its communicated full-year forecast with revenue growth projected to reach €220 million – €240 million (2023: €187 million) and adjusted EBITDA of €80 million – €90 million (2023: €62 million). In addition to BKHT’s strong growth, free cash flow before taxes increased to €2.3 million (H1 2023: €-143 thousand). The negative free cash flow in the previous year was impacted by an exceptionally high refinancing backlog at Bikeleasing in the peak summer months, which also exists this year but no longer presents a challenge. The significant increase in adjusted earnings per share, up by +53% to €0.66 compared to previous year (H1 2023: €0.43), was supported by the partial repayment of the acquisition loan. Due to the acquisitions of four external sales agencies in the HR Benefit & Mobility Platform segment (Bikeleasing and Probonio) during the fiscal year 2023, the group also reports earnings for the same period in H1 2023 on a pro forma basis for better comparability. As the acquisitions do not contribute to revenue but solely reduce costs, the pro forma results are higher with unchanged revenue levels. Compared to the pro forma figures for 2023, adjusted EBITDA increased by +19.1% in H1 2024 (H1 2023: €31.7 million; 37.7% margin) and adjusted EBIT by +19.8% (H1 2023: €29.6 million; 35.3% margin). Before adjustments, EBITDA amounted to €35.6 million (H1 2023: €27.9 million) and EBIT to €23.9 million (H1 2023: €18.5 million). EBIT is particularly affected by purely consolidation-related PPA amortization. “The positive business development in the first half of 2024 once again confirms the strong growth momentum of our technology group, even in challenging economic times. We are particularly pleased with Bikeleasing, especially due to the strongest growth in new customers ever achieved in a first half of the year. With an increase in the number of corporate customers to around 67,000, this underlines the successful implementation of our expansion strategy. We also expect that the planned roll-out of additional employee benefits through our subsidiary Probonio, acquired in April, will provide further offerings beyond the existing Bikeleasing business in the second half of the year. For this reason, we change the name of the segment from Financial Technologies to HR Benefit & Mobility Platform. Despite a shift in revenue at IHSE, mainly due to typical fluctuations in the project business, management is confident that revenue realization will significantly accelerate in the second half of the year. Against this backdrop, we are on track to achieve our annual forecast for 2024, with revenue between €220 million and €240 million and adjusted EBITDA of €80 million – €90 million,” comments CEO Marco Brockhaus. As of June 30, 2024, BKHT had high cash and cash equivalents of €41.1 million, which can be used, for example, to finance future growth, as seen in the second quarter with the acquisition of Probonio by Bikeleasing, or for other strategic options. Bikeleasing distributed €8.0 million to its shareholders in the reporting period. Of this amount, €4.4 million was allocated to the intermediate holding company BCM Erste Beteiligungs GmbH (BCM Erste), which is controlled by Brockhaus Technologies AG, and was subsequently used for the further repayment of the acquisition loan. The group’s net debt relative to the adjusted pro forma EBITDA of the last twelve months was reduced during the reporting period, from 0.87x at the end of 2023 to 0.74x. As of June 30, 2024, the group's net debt was €54.2 million, thus below the level of €58.5 million at the end of the fiscal year 2023. Bikeleasing with highest new customer growth in a first half-year Bikeleasing (HR Benefit & Mobility Platform segment) continues its dynamic and highly profitable growth trajectory. Revenue increased by +42.8% to €94.7 million in the first half of 2024 (H1 2023: €66.4 million). As of June 30, 2024, the number of companies connected to the digital Bikeleasing platform was around 67,000, which corresponds to growth of +30.5% over the past twelve months. This is the strongest new customer growth ever achieved in a first half of the year. Bikeleasing’s corporate customers employed around 3.6 million people as of the reporting date, accounting for nearly 8% of all employees in Germany. The number of new bikes brokered through the digital Bikeleasing platform was around 81,000, reflecting a +1.6% increase compared to previous year (H1 2023: 80,000 bikes), after the first quarter was still -4.0% below Q1 2023 due to a normalization of seasonality. The unstable weather and general consumer reluctance in Germany were particularly noticeable in the summer months. The significant increase in revenue was largely due to the successful ongoing transition of existing and new customers to a variable leasing factor (monthly lease rate relative to the acquisition cost of the bike). Additionally, revenue from the disposal of bikes at the end of the lease term increased substantially. This was driven by the fact that the volume of the disposal business is mainly influenced by business growth from three years ago (contracts with a typical three-year term). Consequently, the development of disposal revenue is largely independent of the current sales trends. Bikeleasing’s adjusted pro forma EBITDA also increased significantly from €31.4 million in the first half of 2023 to €40.6 million. With 42.9% the adjusted EBITDA margin was below the previous year's level (H1 2023: 47.3%). This decrease is partly due to a lower gross profit margin of 64.2% (H1 2023: 66.2%). The increase in revenue from the disposal of lease returns, which has a positive but significantly lower gross profit margin compared to other revenue components of Bikeleasing, was a key factor. The gross profit margin excluding the disposal business was 91.6% (H1 2023: 88.1%). Additionally, personnel and other operating expenses necessary to support the company's long-term strong growth were higher than in the previous year. For the coming years, Bikeleasing expects continued positive development, based on factors such as improved market penetration with a continuously increasing number of corporate customers, an increase in usage rates among existing customers and the internationalization of business beyond Germany and Austria. Additionally, the platform will soon offer additional employee benefits alongside company bikes through the acquisition of the software company Probonio. The integration of Probonio, which was acquired in April 2024, is in full swing, and Probonio’s employee benefit offerings are expected to be comprehensively rolled out to the existing approximately 67,000 corporate clients of Bikeleasing in the second half of the year. However, no significant contribution from Probonio is anticipated for the fiscal year 2024. Early indications from a pilot customer survey show that a positive EBITDA contribution in the mid-single-digit million range is already realistic in the fiscal year of 2025. High order backlog at IHSE with expected revenue growth in the second half of the year The Security Technologies segment (IHSE) reported a decline in revenue of -19.4% to €14.3 million in the first half of 2024 (H1 2023: €17.7 million). This was mainly due to typical fluctuations in the project business, such as a large order realized in the Americas region in the same period of the previous year. In addition, the specifications for some orders were only received shortly before the end of the quarter, which is why these projects could not be recognized as revenue in the second quarter. Consequently, adjusted EBITDA for the first half of the year was only €0.4 million (H1 2023: €3.5 million), with an adjusted EBITDA margin of 2.6% (H1 2023: 19.9%). The margin decline is mainly attributed to the low revenue level in H1 2024, combined with fixed costs related to personnel and other operating expenses. For the second half of 2024, the management expects a strong catch-up effect in terms of revenue and earnings. IHSE’s order backlog has more than doubled to €10.0 million as of June 30, 2024 compared to the start of 2024 (€4.6 million). By the end of July 2024, the backlog had increased to €11.5 million. This order backlog primarily consists of projects that IHSE won due to new standards for highly mission-critical environments Strong and highly profitable growth is also expected for the full year 2024: revenue is projected to increase to €220 million – €240 million, with an adjusted EBITDA of €80 million – €90 million In light of the positive business development in the first half of 2024 and the anticipated acceleration of revenue at IHSE in the second half of the year, the management of Brockhaus Technologies AG confirms its forecast for the fiscal year 2024 despite ongoing geopolitical and economic uncertainties. The forecast remains unchanged, with projected revenue growth of +18% to +29%, reaching €220 million – €240 million and an adjusted EBITDA of €80 million – €90 million (growth of +29% to +45%). For the half-year financial report 2024 and more information about the company, please visit: https://ir.brockhaus-technologies.com/websites/brockhaustechnologies/English/3000/publications.html The earnings call for the first half of 2024 in English will take place today, August 14, 2024, at 4:00 p.m. (CEST). Interested parties can register for the call using the following link: https://webcast.meetyoo.de/reg/VplmLf9p0uYk 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:  Florian Peter Phone: +49 69 20 43 40 976 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 for the first half year 2024*

in € thousand	H1 2024	H1 2023	Change
Revenue	109,009	84,071	+29.7%
HR Benefit & Mobility Platform (Bikeleasing and Probonio)	94,732	66,355	+42.8%
Security Technologies (IHSE)	14,277	17,716	-19.4%
EBITDA	35,551	27,946	+27.2%
Adjusted EBITDA	37,767	28,833	+31.0%
Adjusted pro forma EBITDA	37,767	31,708	+19.1%
HR Benefit & Mobility Platform (Bikeleasing and Probonio)	40,632	31,387	+29.5%
Security Technologies (IHSE)	374	3,526	-89.4%
Adjusted pro forma EBITDA margin	34.6%	37.7%	-3.1 pp
Earnings before taxes	9,196	11,876	-22.6%
Profit for the period	2,184	5,310	-58.9%
Cashflow from operating activities	63	(4,060)	n/a
Free cash flow before tax	2,270	(143)	n/a
	30.06.2024	31.12.2023	Change
Total assets	689,908	666,180	+3.6%
Cash and cash equivalents	41,121	53,666	-23.4%
Equity	291,902	297,831	-2.0%
Equity ratio	42.3%	44.7%	-2.4 pp
Net debt	54,240	58,538	-7.3%
Net debt to adjusted pro forma EBITDA (LTM)	0.74x	0.87x

*For the definition of the alternative performance measures, please refer to page 94 onwards of our Annual Report 2023 and page 15 onwards of our Half-Year Financial Report H1 2024.