Brockhaus Technologies AG

Interim / Quarterly Report • Aug 14, 2024

Elevating

Champions
Earnings Call Q2 2024

Disclaimer

This document is being presented solely for informational purposes and should not be treated as giving investment advice and does not constitute or form part of, and should not be construed as, an offer to buy or subscribe, nor an invitation to submit an offer to buy or subscribe any of Brockhaus Technologies AG's ("BKHT") securities. It is not intended to be (and should not be used as) the sole basis of any analysis or other evaluation. All and any evaluations or assessments stated herein represent our personal opinions. We advise you that some of the information is based on statements by third persons, and that no representation or warranty, expressed or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of this information or opinions contained herein.

This presentation contains certain forward-looking statements relating to the business, financial performance and results of BKHT and its (future) subsidiaries (collectively "Brockhaus Technologies") and/ or the industries in which Brockhaus Technologies operates. Forward looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words "believes", "expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. The forward-looking statements contained in this presentation, including potential transactions, assumptions, opinions and views of Brockhaus Technologies or cited from third party sources, are solely opinions and forecasts which are uncertain and subject to risks. Actual events may differ significantly from any anticipated development due to a number of factors, including without limitation, changes in general economic conditions, in particular economic conditions in the markets in which Brockhaus Technologies operates, changes affecting interest rate levels, changes in competition levels, changes in laws and regulations, environmental damages, the potential impact of legal proceedings and actions and Brockhaus Technologies' ability to achieve synergies from acquisitions. In general, the further development and impact of the Russian invasion of Ukraine, the conflict in the Middle-East, potential supply bottlenecks, the ongoing energy crisis, inflation, high interest rates and other global macroeconomic and geopolitical tensions is uncertain. Brockhaus Technologies does not guarantee that the assumptions
underlying the forward-looking statements in this presentation are free from errors nor does it accept any responsibility for the future accuracy of the opinions expressed in this presentation or any obligation to update the statements in this presentation to reflect subsequent events. The forward-looking statements in this presentation are made only as of the date hereof. Neither the delivery of this presentation nor any further discussions of Brockhaus Technologies with any of the recipients thereof shall, under any circumstances, create any implication that there has been no change in the affairs of Brockhaus Technologies since such date. Consequently, Brockhaus Technologies does not undertake any obligation to review, update or confirm recipients' expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of the presentation.

For information on alternative performance measures, please refer to note 6 of BKHT's consolidated financial statements for 2023 or page 15 onwards of BKHT's half-year financial report H1 2024.

Neither Brockhaus Technologies, nor any of its respective board members, directors, officers, employees, affiliates, agents or advisers nor any other person shall assume any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or the statements contained herein as to unverified third person statements, any statements of future expectations and other forward-looking statements, or the fairness, accuracy, completeness or correctness of statements contained herein, or otherwise arising in connection with this presentation.

This presentation is made available on the express understanding that it does not contain all information that may be required to evaluate the purchase of or investment in any securities of BKHT. This presentation is accordingly not intended to form the basis of any investment decision and does not constitute or contain (express or implied) any recommendation to do so.

Summary H1 2024

Selected group financials

Revenue

Adjusted EBITDA

Note: For definitions and detailed explanations 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. Figures for H1 2023 represent pro forma values.

Key highlights

Highly profitable growth in H1 2024 despite unstable weather and general consumer reluctance in Q2 in the HR Benefit \& Mobility Platform segment and a strong order backlog in the Security Technologies segment

Forecast 2024 unchanged with revenue between $€ 220$ million and $€ 240$ million and adjusted EBITDA between $€ 60$ million and $€ 90$ million

Leverage ratio of $\sim 0.74 x$, high financial reserves available for future growth initiatives with cash and cash equivalents of $€ 41$ million

Consistently increasing free cash flow

Free cash flow before tax

Highlights
Free cash flow before tax increased to $€ 2.3$ million in H1 2024 (H1 2023: €-143 thousand)

The negative free cash flow in H1 2023 was due to a high refinancing backlog at Bikeleasing in the peak summer months, which also exists this year but no longer presents a challenge

Bikeleasing's working capital peaks in summer, leading to most cash flow being generated in H 2

Continuously strong increase of adjusted EPS

Adjusted earnings per share (EPS)

(in €)

Highlights

Strong performance of business segments lead to a doubling of adj. pro forma EPS from $€ 0.64$ in 2022 to $€ 1.29$ in 2023

Compound annual growth rate (CAGR) of $+77 \%$ between 2021 and 2023

Continued strong increase of adj. pro forma EPS of $+53 \%$ to $€ 0.66$ compared to H1 2023 ( $€ 0.43$ ), boosted by partial repayment of the subordinated loan

Revenue by quarter

BIKELEASING.DE

(1) Probonio

"Inss.

Revenue by region

BIKELEASING.DE

(1) Probonio

KPIs by segment (pro forma)

(€ thousand)	HR Benefit \& Mobility Platform		Security Technologies		Central Functions and Consolidation		BKHT Group
	H1 2024	Pro forma H1 2023	H1 2024	H1 2023	H1 2024	H1 2023	H1 2024	Pro forma H1 2023
Revenue	94,732	66,355	14,277	17,716	-	-	109,009	84,071
Revenue growth	$42.8 \%$		(19.4\%)				$29.7 \%$
Gross Profit	60,862	43,926	10,143	13,066	207	177	71,212	57,169
Gross Profit Margin	$64.2 \%$	$66.2 \%$	$71.0 \%$	$73.8 \%$			$65.3 \%$	$68.0 \%$
Adjusted EBITDA	40,632	31,387	374	3,526	$(3,239)$	$(3,205)$	37,767	31,708
Adjusted EBITDA Margin	$42.9 \%$	$47.3 \%$	$2.6 \%$	$19.9 \%$			$34.6 \%$	$37.7 \%$
Adjusted EBIT	39,225	30,064	(412)	2,846	$(3,297)$	$(3,266)$	35,516	29,645
Adjusted EBIT Margin	$41.4 \%$	$45.3 \%$	$(2.9 \%)$	$16.1 \%$			$32.6 \%$	$35.3 \%$

Total cash and cash equivalents of $€ 41$ million as per end of June 2024

Constant net leverage well below the target level

Net debt calculation as per H1 2024
(€ million)

Highlights

Available financing capacity allows for future growth through new acquisitions

Conservative leverage ratio of $\sim 0.74 \mathrm{x}$ adj. proforma EBITDA 2023 (target value of $\sim 2.5 \mathrm{x}$ )

High balance sheet quality underlining resilience of our business

Bikeleasing - Operational deep dive

Another record H1 for Bikeleasing in terms of revenue and earnings

Highest onboarding rate of new corporate customers ever realized in a H1
# of corporate customers grew to $\sim 67 \mathrm{k}$ with $\sim 3.6$ million connected employees
# of facilitated bikes with $\sim 81 \mathrm{k}$ slightly above the previous year ( $+2 \%$ ) but negatively impacted by unstable weather in May and June as well as other factors such as general consumer reluctance

Continued integration of Probonio and Bikeleasing with sales roll-out to commence in H2

Exemplary overview of integration work streams

• No significant earnings contribution to be expected for 2004 given the progress within the year and one-time integration / roll-out costs
• Based on a first pilot customer survey conducted in G2, mid single digit million EDITDA contribution expected for 2025

IHSE - Operational deep dive

Revenue in H1 is well below last year's and at a similar level to 2021/2022, partially due to planned downtime in Q1 and delays in customer orders for multiple projects, shifting revenue recognition beyond Q2

Sales in EMEA slightly declined, while Americas and APAC are picking up and starting to close the gap compared to previous year

Order intake in Q2 was very high, split across multiple customers and projects (unlike Q2 2023 with a single $€ 7.0$ million project), leading to a healthy backlog of over $€ 10.0$ million

Quartety revenue

Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4'22 Q1'23 Q2 '23 Q3 '23 Q4'23 Q1'24 Q2 '24

IHSE - Product innovation

IHSE introduces a new video compression

codec for its product lines: JPEG XS, the ultimate solution for high-quality, lowlatency video compression, offering visually lossless quality and unparalleled efficiency

Its high-quality compression preserves image fidelity, while progressive decoding enables fast streaming. With a wide color gamut and support for resolutions up to 10K, JPEG XS redefines image compression

The new video codec standard ensures unified interoperability while offering customers significant cost and energy savings by enabling the use of 1 G networks

Group Forecast FY 2024

On track to build one of Germany's leading technology groups.

Revenue
(2023: €187m | +18\% to +29\%)

Adj. EBITDA
(2023: $62m | +29\% to +45\%)

Medium-term Outlook 2025
(€ million)

Q\&A

Happy to answer your questions

2

BROCKHAUS TECHNOLOGIES

BROCKHAUS TECHNOLOGIES AG

Thurn-und-Taxis-Platz 6
60313 Frankfurt am Main, Germany
Phone: +49 6920434090
Fax: +49 69204340971
E-Mail: in@brockhaus-technologies.com
Web: www.brockhaus-technologies.com
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Executive Board: Marco Brockhaus (Chair), Dr. Marcel Wilhelm
Chair of the Supervisory Board: Dr. Othmar Belker
Registry Court: Frankfurt am Main Local Court
Register Number: 1861109637