Brockhaus Technologies AG: Medium-term outlook; growth of revenue to between €290 and 320 million by the end of 2025, with an EBITDA margin of around 40% targeted

• Operational development as a basis for the medium-term outlook:
  • Bikeleasing expects unchanged dynamic growth as a modern sustainable mobility solution
  • IHSE benefits from increased digitalization, connectivity and protection against cyberattacks
• Further reduction of Group net debt to 0.7x EBITDA provides high financing capacity

Frankfurt am Main, June 20, 2023. Brockhaus Technologies AG (BKHT, ISIN: DE000A2GSU42) provides a medium-term outlook in view of the good operational development of its subsidiaries and for the purpose of transparency with regard to the promising prospects for the coming years. By end of 2025, revenue is supposed to increase to a level between €290 and 320 million. For comparison: In fiscal year 2022, BKHT generated revenue of €143 million. For 2023, the company has set a revenue forecast of between €165 and 175 million with an adjusted EBITDA between €58 to 61 million, which will continue to apply regardless of the new medium-term outlook.

Profitability is also supposed to continuously increase. Thus, Brockhaus Technologies is aiming for an adjusted EBITDA margin of around 40% for the 2025 fiscal year. In 2022, this margin was almost 35%, a value that is also targeted for 2023. This would increase the adjusted EBITDA from €50 million (fiscal year 2022) to a value of approximately €120 million by 2025.

The basis for this medium-term outlook consists of the current subsidiaries Bikeleasing as well as IHSE. Although BKHT expects to make further acquisitions in the future, the medium-term outlook is an "as-is" view. This means that the outlook does not include the effects of further material acquisitions.

"Our technology group is developing excellently, and we see great opportunities for sustainable profitable growth. This is reflected in our medium-term outlook, according to which we want to significantly increase our revenue to between €290 and 320 million by the end of 2025 and aim for a further improvement of the EBITDA margin to around 40%," founder and CEO Marco Brockhaus commented on the outlook.

Technology group benefits from global megatrends and grows highly profitably

Bikeleasing, the digital B2B platform for the brokerage, financing and management of employee benefits, will continue to benefit from the trend towards modern sustainable mobility solutions and expects a continuation of the dynamic and profitable growth. After Bikeleasing had already brokered 118,000 company bicycles in the previous record year of 2022 and thus 45% more than in 2021, the growth momentum in the first half year of 2023 is unbroken. The number of companies connected to the Bikeleasing platform, which is a key indicator for future development, increased to more than 50,000 as per mid of June with around 2.9 million employees behind them. Growth drivers for the coming years are the expansion of market penetration through the continuous onboarding of additional corporate customers as well as the increase in the usage rate among companies already connected. Furthermore, an expansion of the platform to include additional employee benefits besides bicycles as well as a continued internationalization after the very successful step to Austria provide further potential. In addition, Bikeleasing will also benefit in the future from the connection to highly attractive bicycle manufacturers with direct shipping (D2C) such as Canyon, YT or Propain as well as the introduction of digital frame leasing contracts for faster and 100% paperless order processing.

IHSE develops, produces and distributes KVM technology (keyboard, video and mouse) for highly secure, latency-reduced and loss-free transmission of data in "mission critical" applications. For example, IHSE's products are used in air traffic control, medical technology, utilities, transportation, banking, maritime, semiconductor manufacturing, and control centers of all types in general. In the fiscal year 2023, the segment recorded a noticeable post-covid rebound, which is reflected in rising financial KPIs and a record order backlog. In this context, IHSE succeeded in landing a record order for air traffic control. IHSE grows in line with global megatrends. These include both continued digitization worldwide and increasing connectivity in many application areas - from autonomous driving to connected production. In addition, the strong need for protection against the globally increasing cyberattacks is also a key driver for growth.

Financially well positioned for further acquisitions

In addition to the above-mentioned organic growth ambitions, Brockhaus Technologies’ aim to leverage external growth and value enhancement potential through acquisitions is unchanged and in an excellent financial position in this regard. The Group's net debt of €38.0 million at the end of the first quarter of 2023 was at a very low level of only 0.7x compared to the adjusted EBITDA of the last twelve months. It was thus well below the internal target level of 2.5x. As of March 31, 2023, BKHT also had cash and cash equivalents of €65.4 million.

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